Superior Drilling Products (SDPI) 10-Q 15 Nov 21 2021 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2021	Nov. 12, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2021
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2021
Current Fiscal Year End Date	--12-31
Entity File Number	001-36453
Entity Registrant Name	Superior Drilling Products, Inc.
Entity Central Index Key	0001600422
Entity Tax Identification Number	46-4341605
Entity Incorporation, State or Country Code	UT
Entity Address, Address Line One	1583 South 1700 East
Entity Address, City or Town	Vernal
Entity Address, State or Province	UT
Entity Address, Postal Zip Code	84078
City Area Code	435
Local Phone Number	789-0594
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	SDPI
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		28,169,086

Condensed Consolidated balance

Condensed Consolidated balance Sheets (Unaudited) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Current assets
Cash	$ 2,469,398	$ 1,961,441
Accounts receivable, net	2,046,073	1,345,622
Prepaid expenses	266,371	90,269
Inventories	1,067,738	1,020,008
Asset held for sale		40,000
Other current assets	47,692	40,620
Total current assets	5,897,272	4,497,960
Property, plant and equipment, net	6,963,777	7,535,098
Intangible assets, net	277,778	819,444
Right of use assets	22,192	99,831
Other noncurrent assets	65,880	87,490
Total assets	13,226,899	13,039,823
Current liabilities
Accounts payable	802,157	430,014
Accrued expenses	1,887,693	1,091,519
Income tax payable	177,822	106,446
Current portion of operating lease liability	13,832	79,313
Current portion of financial obligation	63,561	61,691
Current portion of long-term debt, net of discounts	1,445,230	1,397,337
Total current liabilities	4,390,295	3,166,320
Operating lease liability	8,360	20,518
Long-term financial obligation, less current portion	4,129,802	4,178,261
Long-term debt, less current portion, net of discounts	1,118,953	1,451,049
Total liabilities	9,647,410	8,816,148
Commitments and contingencies (Note 11)
Shareholders’ equity
Common stock - $0.001 par value; 100,000,000 shares authorized; 26,429,955 and 25,762,342 shares issued and outstanding	26,430	25,762
Additional paid-in-capital	41,149,551	40,619,620
Accumulated deficit	(37,596,492)	(36,421,707)
Total shareholders’ equity	3,579,489	4,223,675
Total liabilities and shareholders’ equity	$ 13,226,899	$ 13,039,823

Condensed Consolidated balanc_2

Condensed Consolidated balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
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	26,429,955	25,762,342
Common stock, shares outstanding	26,429,955	25,762,342

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenue
Total Revenue	$ 3,561,919	$ 1,547,442	$ 9,385,680	$ 8,929,593
Operating costs and expenses
Cost of revenue	1,441,943	870,655	3,841,713	4,284,716
Selling, general and administrative expenses	1,551,462	1,529,887	4,540,134	4,887,999
Depreciation and amortization expense	405,225	693,259	1,680,804	2,134,398
Total operating costs and expenses	3,398,630	3,093,801	10,062,651	11,307,113
Operating income (loss)	163,289	(1,546,359)	(676,971)	(2,377,520)
Other income (expense)
Interest income	49	145	147	5,775
Interest expense	(130,221)	(126,482)	(413,798)	(450,210)
Impairment on asset held for sale				(30,000)
Loan forgiveness		41,403		41,403
Gain (loss) on disposition of assets, net			(1,187)	142,234
Total other expense	(130,172)	(84,934)	(414,838)	(290,798)
Income (loss) before income taxes	33,117	(1,631,293)	(1,091,809)	(2,668,318)
Income tax expense	(39,327)	(99,979)	(82,976)	(106,414)
Net loss	$ (6,210)	$ (1,731,272)	$ (1,174,785)	$ (2,774,732)
Basic loss earnings per common share	$ 0	$ (0.07)	$ (0.05)	$ (0.11)
Basic weighted average common shares outstanding	26,154,202	25,555,167	25,894,397	25,469,609
Diluted loss per common share	$ 0	$ (0.07)	$ (0.05)	$ (0.11)
Diluted weighted average common shares outstanding	26,154,202	25,555,167	25,894,397	25,469,609
Tool Revenue [Member]
Revenue
Total Revenue	$ 2,346,234	$ 1,190,929	$ 6,283,461	$ 6,147,280
Contract Services [Member]
Revenue
Total Revenue	$ 1,215,685	$ 356,513	$ 3,102,219	$ 2,782,313

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2019	$ 25,418	$ 40,069,391	$ (32,991,833)	$ 7,102,976
Balance, shares at Dec. 31, 2019	25,418,126
Stock-based compensation expense		106,996		106,996
Net income (loss)			198,046	198,046
Balance at Mar. 31, 2020	$ 25,418	40,176,387	(32,793,787)	7,408,018
Balance, shares at Mar. 31, 2020	25,418,126
Balance at Dec. 31, 2019	$ 25,418	40,069,391	(32,991,833)	7,102,976
Balance, shares at Dec. 31, 2019	25,418,126
Net income (loss)				(2,774,732)
Balance at Sep. 30, 2020	$ 25,617	40,439,035	(35,766,565)	4,698,087
Balance, shares at Sep. 30, 2020	25,617,486
Balance at Mar. 31, 2020	$ 25,418	40,176,387	(32,793,787)	7,408,018
Balance, shares at Mar. 31, 2020	25,418,126
Stock-based compensation expense	$ 17	104,988		105,005
Stock-based compensation expense, shares	16,650
Net income (loss)			(1,241,506)	(1,241,506)
Balance at Jun. 30, 2020	$ 25,435	40,281,375	(34,035,293)	6,271,517
Balance, shares at Jun. 30, 2020	25,434,776
Stock-based compensation expense	$ 182	157,660		157,842
Stock-based compensation expense, shares	182,710
Net income (loss)			(1,731,272)	(1,731,272)
Balance at Sep. 30, 2020	$ 25,617	40,439,035	(35,766,565)	4,698,087
Balance, shares at Sep. 30, 2020	25,617,486
Balance at Dec. 31, 2020	$ 25,762	40,619,620	(36,421,707)	4,223,675
Balance, shares at Dec. 31, 2020	25,762,342
Stock-based compensation expense		167,472		167,472
Net income (loss)			(1,101,793)	(1,101,793)
Balance at Mar. 31, 2021	$ 25,762	40,787,092	(37,523,500)	3,289,354
Balance, shares at Mar. 31, 2021	25,762,342
Balance at Dec. 31, 2020	$ 25,762	40,619,620	(36,421,707)	4,223,675
Balance, shares at Dec. 31, 2020	25,762,342
Net income (loss)				(1,174,785)
Balance at Sep. 30, 2021	$ 26,430	41,149,551	(37,596,492)	3,579,489
Balance, shares at Sep. 30, 2021	26,429,955
Balance at Mar. 31, 2021	$ 25,762	40,787,092	(37,523,500)	3,289,354
Balance, shares at Mar. 31, 2021	25,762,342
Stock-based compensation expense		167,033		167,033
Net income (loss)			(66,781)	(66,781)
Balance at Jun. 30, 2021	$ 25,763	40,954,125	(37,590,282)	3,389,606
Balance, shares at Jun. 30, 2021	25,762,342
Stock-based compensation expense	$ 667	195,426		196,093
Stock-based compensation expense, shares	667,613
Net income (loss)			(6,210)	(6,210)
Balance at Sep. 30, 2021	$ 26,430	$ 41,149,551	$ (37,596,492)	$ 3,579,489
Balance, shares at Sep. 30, 2021	26,429,955

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash Flows From Operating Activities
Net loss	$ (1,174,785)	$ (2,774,732)
Adjustments to reconcile net loss to net cash from operating activities:
Depreciation and amortization expense	1,680,804	2,134,398
Stock-based compensation expense	530,595	369,843
Impairment on asset held for sale		30,000
(Gain) loss on disposition of assets, net	1,187	(142,234)
Gain on forgiveness of loan		(41,403)
Amortization of deferred loan costs	13,893	13,894
Changes in operating assets and liabilities:
Accounts receivable	(700,451)	2,408,726
Inventories	(551,189)	(942,831)
Prepaid expenses and other noncurrent assets	(161,564)	327,968
Accounts payable and accrued expenses	1,168,317	(18,728)
Income tax payable	71,376	(34,692)
Other long-term liabilities		(61,421)
Net Cash From Operating Activities	878,183	1,268,788
Cash Flows From Investing Activities
Purchases of property, plant and equipment	(75,541)	(154,475)
Proceeds from sale of fixed assets	50,000	117,833
Net Cash From Investing Activities	(25,541)	(36,642)
Cash Flows From Financing Activities
Principal payments on debt	(1,146,309)	(2,167,539)
Proceeds received from debt borrowings		964,120
Payments on revolving loan	(540,078)	(1,018,690)
Proceeds received on revolving loan	1,341,702	1,185,319
Net Cash From Financing Activities	(344,685)	(1,036,790)
Net Change in Cash	507,957	195,356
Cash at Beginning of Period	1,961,441	1,217,014
Cash at End of Period	2,469,398	1,412,370
Supplemental information:
Cash paid for Interest	410,598	460,640
Inventory converted to property, plant and equipment	513,558	922,993
Reduction of debt with sale of asset		$ 211,667

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2021
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 tool technology company providing cost saving solutions that drive production efficiencies for the oil and natural gas drilling 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 and other tools for a leading oil field services company and other customers including other oil field service companies and operators. 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 for other applications. 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. Unaudited Interim Financial Presentation These interim consolidated condensed financial statements for the three and nine months ended September 30, 2021 and 2020, and the related footnote disclosures included herein, are unaudited. However, in the opinion of management, these unaudited interim financial statements have been prepared on the same basis as the audited financial statements, and reflect all adjustments necessary to fairly state the results for such periods. The results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the results of operations expected for the year ended December 31, 2021. 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, 2020 and 2019 and the notes thereto, which were included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, 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. Concentrations of Credit Risk The Company has two significant customers that represented 86% 81% 1,081,000 432,000 The Company had two vendors that represented 12% 176,000 546,000 14% 218,000 772,000 Impact of COVID-19 The COVID-19 pandemic has impacted and may further impact the Company’s operations, and the operations of the Company’s suppliers and vendors, as a result of quarantines, facility closures, and travel and logistics restrictions. The extent to which the COVID-19 pandemic will continue to impact the Company’s business, financial condition and results of operations will depend on future developments, which are highly uncertain and depend on, among other things, the duration, spread, severity, and impact of the COVID-19 pandemic and the success and speed of vaccination efforts both in the United States and globally, the effects of the COVID-19 pandemic on the Company’s customers, suppliers, and vendors and the remedial actions and stimulus measures adopted by local and federal governments, and to what extent normal economic and operating conditions can resume. Therefore, the Company cannot reasonably estimate future impacts of the COVID-19 pandemic at this time. Uncertain Tax Matters The Company believes it has appropriately accrued for the expected outcome of uncertain tax matters and believes such liabilities represent a reasonable provision for taxes ultimately expected to be paid; however, these liabilities may need to be adjusted as new information becomes known and as tax examinations continue to progress, or as settlements or litigations occur. Reclassifications Certain prior year amounts have been reclassified to the balance sheet to conform to the current year presentation. The reclassifications were within accounts payable and income tax payable and did not impact net income. Recent Accounting Pronouncements There are no recently issued accounting pronouncements that we have not yet adopted that we believe will have a material effect on our financial statements. Income Tax Expense The Company recorded income tax expense during the quarter of $ 39,327 33,117 .

LIQUIDITY

LIQUIDITY	9 Months Ended
	Sep. 30, 2021
Liquidity
LIQUIDITY	NOTE 2. LIQUIDITY We believe that our cash on hand, cash generated from operations and our borrowing capacity under our current credit facility will be sufficient to fund our operations for the next 12 months. To enhance liquidity, our operational and financial strategies include managing our operating costs, accelerating collections of international receivables, and reducing working capital requirements. If we are unable to do this, we may not be able to, among other things, (i) maintain our revised 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, if at all. In 2020, the Company filed a Form S-3 Shelf Registration that will allow the Company to offer and sell, from time to time, up to $ 20,000,000 1,739,131 1.15 1,739,103 Also in 2020, the Company received notification from the NYSE American to the Company indicating that, as a result of the Company’s stockholders’ equity of $ 4.7 NYSE American Regulations staff will review the Company periodically for compliance with the initiatives outlined in the plan. If the Company does not make progress consistent with the plan during the plan period, NYSE Regulation staff may initiate delisting proceedings as appropriate. The Company’s first quarterly plan update was submitted to the NYSE American in April 2021 and was subsequently approved by the NYSE compliance committee on May 21, 2021. On August 16, 2021, the Company submitted its second quarterly plan update which was approved by the NYSE on September 10, 2021.

REVENUE

REVENUE	9 Months Ended
	Sep. 30, 2021
Revenue from Contract with Customer [Abstract]
REVENUE	NOTE 3. REVENUE 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 85% 15% 86% 14% Revenue disaggregated by revenue source are as follows: SCHEDULE OF REVENUE DISAGGREGATED BY REVENUE Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Tool Revenue: Tool and product sales 315,000 294,464 $ 1,470,000 $ 971,520 Tool rental 521,228 254,574 1,318,135 1,716,210 Other related revenue 1,510,006 641,891 3,495,326 3,459,550 Total Tool Revenue 2,346,234 1,190,929 6,283,461 6,147,280 Contract Services 1,215,685 356,513 3,102,219 2,782,313 Total Revenue $ 3,561,919 $ 1,547,442 $ 9,385,680 $ 8,929,593 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 Topic 606.

INVENTORIES

INVENTORIES	9 Months Ended
	Sep. 30, 2021
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 4. INVENTORIES Inventories are comprised of the following: SCHEDULE OF INVENTORIES September 30, 2021 December 31, 2020 Raw material $ 568,904 $ 733,734 Work in progress 208,369 50,631 Finished goods 290,465 235,643 Inventories, net $ 1,067,738 $ 1,020,008

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	9 Months Ended
	Sep. 30, 2021
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT AND EQUIPMENT	NOTE 5. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are comprised of the following: SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT September 30, 2021 December 31, 2020 Land $ 880,416 $ 880,416 Buildings 4,764,441 4,764,441 Building improvements 755,039 755,039 Machinery and equipment 11,859,879 11,298,642 Office equipment, fixtures and software 628,358 628,358 Transportation assets 265,760 265,760 Property, plant and equipment, gross 19,153,893 18,592,656 Accumulated depreciation (12,190,116 ) (11,057,558 ) Property, plant and equipment, net $ 6,963,777 $ 7,535,098 The Company sold its airplane for a gain of approximately $ 142,000 10,000 Depreciation expense related to property, plant and equipment for the three and nine months ended September 30, 2021 was $ 363,558 1,139,137 401,592 1,259,398

INTANGIBLE ASSETS

INTANGIBLE ASSETS	9 Months Ended
	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	NOTE 6. INTANGIBLE ASSETS Intangible assets are comprised of the following: SCHEDULE OF INTANGIBLE ASSETS September 30, 2021 December 31, 2020 Developed technology $ 7,000,000 $ 7,000,000 Customer contracts 6,400,000 6,400,000 Trademarks 1,500,000 1,500,000 Intangible assets, gross 14,900,000 14,900,000 Accumulated amortization (14,622,222 ) (14,080,556 ) Intangible assets, net $ 277,778 $ 819,444 Amortization expense related to intangible assets for the three and nine months ended September 30, 2021 was $ 41,667 541,667 291,667 875,000

RELATED PARTY NOTE RECEIVABLE

RELATED PARTY NOTE RECEIVABLE	9 Months Ended
	Sep. 30, 2021
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. Tronco is an entity owned by Troy and Annette Meier. Effective August 2017, the Company fully reserved the related party note receivable of $ 6,979,043 0 8,267,860 2% Interest only is due December 31, 2021, with a balloon payment of all unpaid interest and principal due upon maturity on December 31, 2022.

LONG-TERM DEBT

LONG-TERM DEBT	9 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
LONG-TERM DEBT	NOTE 8. LONG-TERM DEBT Long-term debt is comprised of the following: SCHEDULE OF LONG-TERM DEBT INSTRUMENTS September 30, 2021 December 31, 2020 Hard Rock Note $ 750,000 $ 1,500,000 Credit Agreement 1,390,881 825,366 Machinery loans 386,144 466,448 Transportation loans 37,158 56,572 2,564,183 2,848,386 Less: Current portion (1,445,230 ) (1,397,337 ) Long-term debt, net $ 1,118,953 $ 1,451,049 Hard Rock Note In 2014, the Company purchased all of the interests of Hard Rock Solutions, LLC (“Hard Rock”). Consideration consisted of $ 12.5 12.5 The Hard Rock Note has a remaining balance of $ 750,000 8.00% October 5, 2022 15,123 Under the amended terms of the Hard Rock Note, we are required to make the following additional payments: accrued interest on January 5, April 5, July 5 and October 5 in 2022; with the remaining balance of principal and accrued interest on the Hard Rock Note due on October 5, 2022. 89,754 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 $ 4,500,000 1,000,000 3,500,000 416,662 1,000,462 Amounts outstanding under the Revolving Loan 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. Amounts outstanding on the Revolving Loan as of September 30, 2021, may not exceed $ 1,000,000 The Credit Agreement contains various restrictive covenants that, among other things, limit or restrict the ability of the Company 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 September 30, 2021, 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% 8.85% 3.6% 9.78% 1,000,000 1,000,000 12,000 February 20, 2023

FINANCING OBLIGATION

FINANCING OBLIGATION	9 Months Ended
	Sep. 30, 2021
Other Liabilities Disclosure [Abstract]
FINANCING OBLIGATION	NOTE 9. FINANCING OBLIGATION On December 7, 2020, the Company entered into a sale agreement (the “Sale Agreement”). Pursuant to the terms of the Sale Agreement, the Company sold land and property related to the Company’s headquarters and manufacturing facility in Vernal, Utah (the “Property”) for a purchase price of $ 4,448,500 the Company entered into a fifteen-year lease agreement 311,395 1.5% Leases The Company received cash of $ 1,622,106 2,638,773 4,260,879 6.0% 2,160,242 25,950 The financing obligation is summarized below: SCHEDULE OF FINANCING OBLIGATION September 30, 2021 December 31, 2020 Finance obligations for sale-leaseback transactions $ 4,193,363 $ 4,239,952 Current principal portion of finance obligation (63,561 ) (61,691 ) Non-current portion of finance obligation $ 4,129,802 $ 4,178,261

GEOGRAPHICAL OPERATIONS INFORMA

GEOGRAPHICAL OPERATIONS INFORMATION	9 Months Ended
	Sep. 30, 2021
Segment Reporting [Abstract]
GEOGRAPHICAL OPERATIONS INFORMATION	NOTE 10. GEOGRAPHICAL OPERATIONS INFORMATION The following summarizes revenue by geographic location: SCHEDULE OF REVENUE AND PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHIC LOCATION Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Revenue: North America $ 3,040,691 $ 1,118,404 $ 8,073,945 $ 7,387,847 Middle East $ 521,228 $ 429,038 $ 1,311,735 $ 1,541,746 $ 3,561,919 $ 1,547,442 $ 9,385,680 $ 8,929,593 The following summarizes net property, plant and equipment by geographic location: September 30, 2021 December 31, 2020 Property, plant and equipment, net: North America $ 5,590,486 $ 6,008,431 Middle East 1,373,291 1,526,667 $ 6,963,777 $ 7,535,098

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 11. 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. The lawsuit was subsequently moved from Louisiana to the United States District Court for the Southern District of Texas, Houston Division. Additionally, on May 20, 2019, Extreme Technologies, LLC sued Short Bit & Tool Co. and Lot William Short, Jr. (“Defendants”) in the Northern District of Texas-Dallas Division. Extreme sued for patent infringement based on the same patents discussed in the Stabil Drill litigation. On December 23, 2019, the Court stayed Extreme’s patent infringement claim against Defendants pending resolution of the Southern District of Texas Stabil Drill case. The court ordered the Company to serve discovery requests upon Stabil Drill and gave Stabil Drill deadlines to respond and produce documents and permit product inspection. Stabil Drill filed a motion for summary judgement for non-infringement. On October 1, 2020, Superior Energy Services, Stabil Drill’s parent company, filed for bankruptcy, which resulted in a brief, automatic stay of the litigation. Superior Energy Services announced on February 2, 2021 that it successfully completed its financial restructuring and emerged from Chapter 11 bankruptcy. On March 9, 2021, the Court lifted the automatic bankruptcy stay. On May 12, 2021, the Court denied Stabil Drill’s non-infringement summary judgment motion. The parties are preparing this case for trial and expect a jury trial setting in 2022. 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.

SHAREHOLDERS_ EQUITY

SHAREHOLDERS’ EQUITY	9 Months Ended
	Sep. 30, 2021
Equity [Abstract]
SHAREHOLDERS’ EQUITY	NOTE 12. SHAREHOLDERS’ EQUITY On August 9, 2021, the Board of Directors granted 434,641 333,333 156,863 98,039 250,000 75,000 250,000

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2021
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 13. SUBSEQUENT EVENTS On October 19, 2021, the Company completed an equity offering of 1,739,131 1.15 261,000 1,700,000

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2021
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 tool technology company providing cost saving solutions that drive production efficiencies for the oil and natural gas drilling 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 and other tools for a leading oil field services company and other customers including other oil field service companies and operators. 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 for other applications. 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.
Unaudited Interim Financial Presentation	Unaudited Interim Financial Presentation These interim consolidated condensed financial statements for the three and nine months ended September 30, 2021 and 2020, and the related footnote disclosures included herein, are unaudited. However, in the opinion of management, these unaudited interim financial statements have been prepared on the same basis as the audited financial statements, and reflect all adjustments necessary to fairly state the results for such periods. The results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the results of operations expected for the year ended December 31, 2021. 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, 2020 and 2019 and the notes thereto, which were included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, 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.
Concentrations of Credit Risk	Concentrations of Credit Risk The Company has two significant customers that represented 86% 81% 1,081,000 432,000 The Company had two vendors that represented 12% 176,000 546,000 14% 218,000 772,000
Impact of COVID-19	Impact of COVID-19 The COVID-19 pandemic has impacted and may further impact the Company’s operations, and the operations of the Company’s suppliers and vendors, as a result of quarantines, facility closures, and travel and logistics restrictions. The extent to which the COVID-19 pandemic will continue to impact the Company’s business, financial condition and results of operations will depend on future developments, which are highly uncertain and depend on, among other things, the duration, spread, severity, and impact of the COVID-19 pandemic and the success and speed of vaccination efforts both in the United States and globally, the effects of the COVID-19 pandemic on the Company’s customers, suppliers, and vendors and the remedial actions and stimulus measures adopted by local and federal governments, and to what extent normal economic and operating conditions can resume. Therefore, the Company cannot reasonably estimate future impacts of the COVID-19 pandemic at this time.
Uncertain Tax Matters	Uncertain Tax Matters The Company believes it has appropriately accrued for the expected outcome of uncertain tax matters and believes such liabilities represent a reasonable provision for taxes ultimately expected to be paid; however, these liabilities may need to be adjusted as new information becomes known and as tax examinations continue to progress, or as settlements or litigations occur.
Reclassifications	Reclassifications Certain prior year amounts have been reclassified to the balance sheet to conform to the current year presentation. The reclassifications were within accounts payable and income tax payable and did not impact net income.
Recent Accounting Pronouncements	Recent Accounting Pronouncements There are no recently issued accounting pronouncements that we have not yet adopted that we believe will have a material effect on our financial statements.
Income Tax Expense	Income Tax Expense The Company recorded income tax expense during the quarter of $ 39,327 33,117 .

REVENUE (Tables)

REVENUE (Tables)	9 Months Ended
	Sep. 30, 2021
Revenue from Contract with Customer [Abstract]
SCHEDULE OF REVENUE DISAGGREGATED BY REVENUE	Revenue disaggregated by revenue source are as follows: SCHEDULE OF REVENUE DISAGGREGATED BY REVENUE Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Tool Revenue: Tool and product sales 315,000 294,464 $ 1,470,000 $ 971,520 Tool rental 521,228 254,574 1,318,135 1,716,210 Other related revenue 1,510,006 641,891 3,495,326 3,459,550 Total Tool Revenue 2,346,234 1,190,929 6,283,461 6,147,280 Contract Services 1,215,685 356,513 3,102,219 2,782,313 Total Revenue $ 3,561,919 $ 1,547,442 $ 9,385,680 $ 8,929,593

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Sep. 30, 2021
Inventory Disclosure [Abstract]
SCHEDULE OF INVENTORIES	Inventories are comprised of the following: SCHEDULE OF INVENTORIES September 30, 2021 December 31, 2020 Raw material $ 568,904 $ 733,734 Work in progress 208,369 50,631 Finished goods 290,465 235,643 Inventories, net $ 1,067,738 $ 1,020,008

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	9 Months Ended
	Sep. 30, 2021
Property, Plant and Equipment [Abstract]
SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT	Property, plant and equipment are comprised of the following: SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT September 30, 2021 December 31, 2020 Land $ 880,416 $ 880,416 Buildings 4,764,441 4,764,441 Building improvements 755,039 755,039 Machinery and equipment 11,859,879 11,298,642 Office equipment, fixtures and software 628,358 628,358 Transportation assets 265,760 265,760 Property, plant and equipment, gross 19,153,893 18,592,656 Accumulated depreciation (12,190,116 ) (11,057,558 ) Property, plant and equipment, net $ 6,963,777 $ 7,535,098

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
SCHEDULE OF INTANGIBLE ASSETS	Intangible assets are comprised of the following: SCHEDULE OF INTANGIBLE ASSETS September 30, 2021 December 31, 2020 Developed technology $ 7,000,000 $ 7,000,000 Customer contracts 6,400,000 6,400,000 Trademarks 1,500,000 1,500,000 Intangible assets, gross 14,900,000 14,900,000 Accumulated amortization (14,622,222 ) (14,080,556 ) Intangible assets, net $ 277,778 $ 819,444

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	9 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
SCHEDULE OF LONG-TERM DEBT INSTRUMENTS	Long-term debt is comprised of the following: SCHEDULE OF LONG-TERM DEBT INSTRUMENTS September 30, 2021 December 31, 2020 Hard Rock Note $ 750,000 $ 1,500,000 Credit Agreement 1,390,881 825,366 Machinery loans 386,144 466,448 Transportation loans 37,158 56,572 2,564,183 2,848,386 Less: Current portion (1,445,230 ) (1,397,337 ) Long-term debt, net $ 1,118,953 $ 1,451,049

FINANCING OBLIGATION (Tables)

FINANCING OBLIGATION (Tables)	9 Months Ended
	Sep. 30, 2021
Other Liabilities Disclosure [Abstract]
SCHEDULE OF FINANCING OBLIGATION	The financing obligation is summarized below: SCHEDULE OF FINANCING OBLIGATION September 30, 2021 December 31, 2020 Finance obligations for sale-leaseback transactions $ 4,193,363 $ 4,239,952 Current principal portion of finance obligation (63,561 ) (61,691 ) Non-current portion of finance obligation $ 4,129,802 $ 4,178,261

GEOGRAPHICAL OPERATIONS INFOR_2

GEOGRAPHICAL OPERATIONS INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2021
Segment Reporting [Abstract]
SCHEDULE OF REVENUE AND PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHIC LOCATION	The following summarizes revenue by geographic location: SCHEDULE OF REVENUE AND PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHIC LOCATION Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Revenue: North America $ 3,040,691 $ 1,118,404 $ 8,073,945 $ 7,387,847 Middle East $ 521,228 $ 429,038 $ 1,311,735 $ 1,541,746 $ 3,561,919 $ 1,547,442 $ 9,385,680 $ 8,929,593 The following summarizes net property, plant and equipment by geographic location: September 30, 2021 December 31, 2020 Property, plant and equipment, net: North America $ 5,590,486 $ 6,008,431 Middle East 1,373,291 1,526,667 $ 6,963,777 $ 7,535,098

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Product Information [Line Items]
Accounts Receivable, after Allowance for Credit Loss	$ 1,081,000	$ 432,000	$ 1,081,000	$ 432,000
Accounts Payable, Current	802,157		802,157		$ 430,014
Income tax expense	39,327	99,979	82,976	106,414
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	33,117	(1,631,293)	(1,091,809)	(2,668,318)
One Vendor [Member]
Product Information [Line Items]
Accounts Payable, Current	176,000		176,000
Purchase Obligation	$ 546,000		$ 546,000
Two Vendors [Member]
Product Information [Line Items]
Accounts Payable, Current		218,000		218,000
Purchase Obligation		$ 772,000		$ 772,000
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Two Customers [Member]
Product Information [Line Items]
Concentration Risk, Percentage			86.00%	81.00%
Supplier Concentration Risk [Member] | Purchases [Member] | Two Vendor [Member]
Product Information [Line Items]
Concentration Risk, Percentage			12.00%
Supplier Concentration Risk [Member] | Purchases [Member] | One Vendor [Member]
Product Information [Line Items]
Concentration Risk, Percentage				14.00%

LIQUIDITY (Details Narrative)

LIQUIDITY (Details Narrative) - USD ($)	Oct. 19, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
Stockholders equity		$ 3,579,489	$ 3,389,606	$ 3,289,354	$ 4,223,675	$ 4,698,087	$ 6,271,517	$ 7,408,018	$ 7,102,976
Common Stock [Member]
Stockholders equity		$ 26,430	$ 25,763	$ 25,762	25,762	$ 25,617	$ 25,435	$ 25,418	$ 25,418
Subsequent Event [Member] | Common Stock [Member]
Number of share issued	1,739,131
Stock issued price per share	$ 1.15
Proceeds from issuance of common stock	$ 1,739,103
Maximum [Member]
Sale of securities					$ 20,000,000

SCHEDULE OF REVENUE DISAGGREGAT

SCHEDULE OF REVENUE DISAGGREGATED BY REVENUE (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 3,561,919	$ 1,547,442	$ 9,385,680	$ 8,929,593
Tools and Product Sales [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	315,000	294,464	1,470,000	971,520
Tool Rental [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	521,228	254,574	1,318,135	1,716,210
Other Related Revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	1,510,006	641,891	3,495,326	3,459,550
Tool Revenue [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	2,346,234	1,190,929	6,283,461	6,147,280
Contract Services [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 1,215,685	$ 356,513	$ 3,102,219	$ 2,782,313

REVENUE (Details Narrative)

REVENUE (Details Narrative)	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021
Disaggregation of Revenue [Line Items]
Description of payment terms		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.
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | North America [Member]
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	85.00%	86.00%
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | Middle East [Member]
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	15.00%	14.00%

SCHEDULE OF INVENTORIES (Detail

SCHEDULE OF INVENTORIES (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Raw material	$ 568,904	$ 733,734
Work in progress	208,369	50,631
Finished goods	290,465	235,643
Inventories, net	$ 1,067,738	$ 1,020,008

SCHEDULE OF PROPERTY, PLANT AND

SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Land	$ 880,416	$ 880,416
Buildings	4,764,441	4,764,441
Building improvements	755,039	755,039
Machinery and equipment	11,859,879	11,298,642
Office equipment, fixtures and software	628,358	628,358
Transportation assets	265,760	265,760
Property, plant and equipment, gross	19,153,893	18,592,656
Accumulated depreciation	(12,190,116)	(11,057,558)
Property, plant and equipment, net	$ 6,963,777	$ 7,535,098

PROPERTY, PLANT AND EQUIPMENT_2

PROPERTY, PLANT AND EQUIPMENT (Details Narrative) - USD ($)	1 Months Ended		3 Months Ended		9 Months Ended
	Mar. 31, 2021	Feb. 29, 2020	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Property, Plant and Equipment [Abstract]
Gain (Loss) on Disposition of Property Plant Equipment	$ 10,000	$ 142,000			$ (1,187)	$ 142,234
Depreciation expense related to property, plant and equipment			$ 363,558	$ 401,592	$ 1,139,137	$ 1,259,398

SCHEDULE OF INTANGIBLE ASSETS (

SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 14,900,000	$ 14,900,000
Accumulated amortization	(14,622,222)	(14,080,556)
Intangible assets, net	277,778	819,444
Developed Technology Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	7,000,000	7,000,000
Customer Contracts [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	6,400,000	6,400,000
Trademarks and Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 1,500,000	$ 1,500,000

INTANGIBLE ASSETS (Details Narr

INTANGIBLE ASSETS (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of Intangible Assets	$ 41,667	$ 291,667	$ 541,667	$ 875,000

RELATED PARTY NOTE RECEIVABLE (

RELATED PARTY NOTE RECEIVABLE (Details Narrative) - Tronco Energy Corporation [Member] - USD ($)	Aug. 31, 2017	Sep. 30, 2021	Jul. 07, 2020
Defined Benefit Plan Disclosure [Line Items]
Related party note receivable	$ 6,979,043
Debt instrument decrease	$ 0
Common stock hold as collateral	8,267,860
Debt interest rate			2.00%
Debt maturity description		Interest only is due December 31, 2021, with a balloon payment of all unpaid interest and principal due upon maturity on December 31, 2022.

SCHEDULE OF LONG-TERM DEBT INST

SCHEDULE OF LONG-TERM DEBT INSTRUMENTS (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Long term debt, Total	$ 2,564,183	$ 2,848,386
Current portion of long-term debt	(1,445,230)	(1,397,337)
Long-term debt, net	1,118,953	1,451,049
Hard Rock Note [Member]
Debt Instrument [Line Items]
Long term debt, Total	750,000	1,500,000
Credit Agreement [Member]
Debt Instrument [Line Items]
Long term debt, Total	1,390,881	825,366
Machinery Loans [Member]
Debt Instrument [Line Items]
Long term debt, Total	386,144	466,448
Transportation Loans [Member]
Debt Instrument [Line Items]
Long term debt, Total	$ 37,158	$ 56,572

LONG-TERM DEBT (Details Narrati

LONG-TERM DEBT (Details Narrative) - USD ($)	1 Months Ended	9 Months Ended
	Dec. 31, 2014	Sep. 30, 2021	Feb. 28, 2019
Debt Instrument [Line Items]
Accrued interest		$ 12,000
Loans Payable [Member]
Debt Instrument [Line Items]
Payment interest		1,000,000
Minimum [Member]
Debt Instrument [Line Items]
Debt instrument borrowing capacity amount		$ 1,000,000
Loan and Security Agreement [Member] | Term Loan and Revolving Loan [Member]
Debt Instrument [Line Items]
Debt instrument maturity date		Feb. 20, 2023
Line of credit interest rate		8.85%
Management fee rate, percentage		3.60%
Debt instrument interest rate effective percentage		9.78%
Loan and Security Agreement [Member] | Term Loan and Revolving Loan [Member] | Prime Rate [Member]
Debt Instrument [Line Items]
Line of credit interest rate		2.00%
Loan and Security Agreement [Member] | Austin Financial Services, Inc. [Member]
Debt Instrument [Line Items]
Long term line of credit			$ 4,500,000
Loan and Security Agreement [Member] | Austin Financial Services, Inc. [Member] | Term Loan Note [Member]
Debt Instrument [Line Items]
Long term line of credit			1,000,000
Loan outstanding amount		$ 416,662
Loan and Security Agreement [Member] | Austin Financial Services, Inc. [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Long term line of credit			$ 3,500,000
Loan outstanding amount		$ 1,000,462
Line of credit facility description		Amounts outstanding under the Revolving Loan 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.
Loan and Security Agreement [Member] | Austin Financial Services, Inc. [Member] | Revolving Loan One [Member]
Debt Instrument [Line Items]
Loan outstanding amount		$ 1,000,000
Line of credit facility description		Amounts outstanding on the Revolving Loan as of September 30, 2021, may not exceed $1,000,000, which is based on a calculation applying 85% of accounts receivable and 50% of inventory.
Hard Rock Note [Member]
Debt Instrument [Line Items]
Business combination, consideration transferred, liabilities incurred	$ 12,500,000
Payments to acquire businesses, gross	$ 12,500,000
Notes Payable		$ 750,000
Debt Instrument, Interest Rate, Stated Percentage		8.00%
Debt instrument maturity date		Oct. 5, 2022
Accrued interest		$ 15,123
Debt Instrument, Periodic Payment, Interest		$ 89,754
Hard Rock Note [Member] | July 5, 2021 [Member]
Debt Instrument [Line Items]
Debt instrument, payment terms		Under the amended terms of the Hard Rock Note, we are required to make the following additional payments: accrued interest on January 5, April 5, July 5 and October 5 in 2022; with the remaining balance of principal and accrued interest on the Hard Rock Note due on October 5, 2022.

SCHEDULE OF FINANCING OBLIGATIO

SCHEDULE OF FINANCING OBLIGATION (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Other Liabilities Disclosure [Abstract]
Finance obligations for sale-leaseback transactions	$ 4,193,363	$ 4,239,952
Current principal portion of finance obligation	(63,561)	(61,691)
Non-current portion of finance obligation	$ 4,129,802	$ 4,178,261

FINANCING OBLIGATION (Details N

FINANCING OBLIGATION (Details Narrative) - USD ($)	Dec. 07, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purchase price		$ 75,541	$ 154,475
Lessee, Finance Lease, Description		the Company entered into a fifteen-year lease agreement
Net proceeds received		$ 50,000	$ 117,833
Sale Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purchase price		1,622,106
Real estate debt retired		2,638,773
Net proceeds received		$ 4,260,879
Implied interest rate		6.00%
Financing obligation residual amount		$ 2,160,242
Principal payments				$ 25,950
Sale Agreement [Member] | Vernal, Utaht [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purchase price	$ 4,448,500
Lease Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Lease, Cost	$ 311,395
Annual rent increases	1.50%

SCHEDULE OF REVENUE AND PROPERT

SCHEDULE OF REVENUE AND PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHIC LOCATION (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 3,561,919	$ 1,547,442	$ 9,385,680	$ 8,929,593
Property, plant and equipment, net	6,963,777		6,963,777		$ 7,535,098
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	3,040,691	1,118,404	8,073,945	7,387,847
Property, plant and equipment, net	5,590,486		5,590,486		6,008,431
Middle East [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	521,228	$ 429,038	1,311,735	$ 1,541,746
Property, plant and equipment, net	$ 1,373,291		$ 1,373,291		$ 1,526,667

SHAREHOLDERS_ EQUITY (Details N

SHAREHOLDERS’ EQUITY (Details Narrative)	Aug. 09, 2021USD ($)shares
Defined Benefit Plan Disclosure [Line Items]
Stock options exercised | shares	75,000
Troy Meier [Member]
Defined Benefit Plan Disclosure [Line Items]
Stock issued uuring period, value, restricted stock award, gross	$ 434,641
Annette Meier [Member]
Defined Benefit Plan Disclosure [Line Items]
Stock issued uuring period, value, restricted stock award, gross	333,333
Chris Cashion [Member]
Defined Benefit Plan Disclosure [Line Items]
Stock issued uuring period, value, restricted stock award, gross	156,863
Three Independent Members [Member]
Defined Benefit Plan Disclosure [Line Items]
Stock issued uuring period, value, restricted stock award, gross	98,039
Board of Directors [Member]
Defined Benefit Plan Disclosure [Line Items]
Stock issued uuring period, value, restricted stock award, gross	$ 250,000

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] - Common Stock [Member]	Oct. 19, 2021USD ($)$ / sharesshares
Subsequent Event [Line Items]
Stock Issued During Period, Shares, New Issues | shares	1,739,131
Purchase price per share | $ / shares	$ 1.15
Payments of stock issuance costs	$ 261,000
Proceeds from equity offering	$ 1,700,000