Superior Drilling Products (SDPI) 10-K 24 Mar 22 2021 FY Annual report Financial data

Cover

Cover - USD ($)	12 Months Ended
	Dec. 31, 2021	Mar. 23, 2022	Jun. 30, 2021
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2021
Document Fiscal Period Focus	FY
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 Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
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 Public Float			$ 8,155,000
Entity Common Stock, Shares Outstanding		28,235,001
Documents Incorporated By Reference	NONE
ICFR Auditor Attestation Flag	false
Auditor Firm ID	659
Auditor Name	Moss Adams LLP
Auditor Location	Dallas, Texas

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Current assets
Cash	$ 2,822,100	$ 1,961,441
Accounts receivable, net	2,871,932	1,345,622
Prepaid expenses	435,595	90,269
Inventories	1,174,635	1,020,008
Asset held for sale		40,000
Other current assets	55,159	40,620
Total current assets	7,359,421	4,497,960
Property, plant and equipment, net	6,930,329	7,535,098
Intangible assets, net	236,111	819,444
Right of use assets	20,518	99,831
Other noncurrent assets	65,880	87,490
Total assets	14,612,259	13,039,823
Current liabilities
Accounts payable	1,139,091	430,014
Accrued expenses	467,462	1,091,519
Income tax payable	206,490	106,446
Current portion of operating lease liability	13,716	79,313
Current portion of financial obligation	65,678	61,691
Current portion of long-term debt, net of discounts	2,195,759	1,397,337
Total current liabilities	4,088,196	3,166,320
Operating lease liability	6,802	20,518
Long-term financial obligation, less current portion	4,112,658	4,178,261
Long-term debt, less current portion, net of discounts	256,675	1,451,049
Total liabilities	8,464,331	8,816,148
Commitments and contingencies
Shareholders’ equity
Common stock - $0.001 par value; 100,000,000 shares authorized; 28,235,001 and 25,762,342 shares issued and outstanding, respectively	28,235	25,762
Additional paid-in-capital	43,071,201	40,619,620
Accumulated deficit	(36,951,508)	(36,421,707)
Total shareholders’ equity	6,147,928	4,223,675
Total liabilities and shareholders’ equity	$ 14,612,259	$ 13,039,823

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 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	28,235,001	25,762,342
Common stock, shares outstanding	28,235,001	25,762,342

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Revenue
Total Revenue	$ 13,336,149	$ 10,470,798
Operating cost and expenses
Cost of revenue	5,618,844	5,105,677
Selling, general, and administrative expenses	6,200,522	6,371,337
Depreciation and amortization expense	2,103,534	2,816,396
Total operating costs and expenses	13,922,900	14,293,410
Operating income (loss)	(586,751)	(3,822,612)
Other income (expense)
Interest income	228	5,803
Interest expense	(539,390)	(575,306)
Recovery of related party note receivable	707,112
Impairment on asset held for sale		(30,000)
(Loss)/gain on disposition of assets	(249)	174,234
Gain on loan forgiveness		933,003
Total other income (expense)	167,701	507,734
Loss before income taxes	(419,050)	(3,314,878)
Income tax expense	(110,751)	(114,996)
Net loss	$ (529,801)	$ (3,429,874)
Basic loss per common share	$ (0.02)	$ (0.13)
Basic weighted average common shares outstanding	26,391,538	25,515,166
Diluted loss per common share	$ (0.02)	$ (0.13)
Diluted weighted average Common shares outstanding	26,391,538	25,515,166
Tool Revenue [Member]
Revenue
Total Revenue	$ 9,244,482	$ 7,050,536
Contract Services [Member]
Revenue
Total Revenue	$ 4,091,667	$ 3,420,262

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance at Dec. 31, 2019	$ 25,418	$ 40,069,391	$ (32,991,833)	$ 7,102,976
Beginning balance, shares at Dec. 31, 2019	25,418,126
Stock-based compensation expense	$ 344	550,229		550,573
Stock-based compensation expense, shares	344,216
Net loss			(3,429,874)	(3,429,874)
Ending balance at Dec. 31, 2020	$ 25,762	40,619,620	(36,421,707)	4,223,675
Ending balance, shares at Dec. 31, 2020	25,762,342
Stock-based compensation expense	$ 734	756,009		756,743
Stock-based compensation expense, shares	733,528
Net loss			(529,801)	(529,801)
Common stock issuance	$ 1,739	1,695,572		1,697,311
Common stock issuance, shares	1,739,131
Ending balance at Dec. 31, 2021	$ 28,235	$ 43,071,201	$ (36,951,508)	$ 6,147,928
Ending balance, shares at Dec. 31, 2021	28,235,001

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Cash Flows from Operating Activities
Net loss	$ (529,801)	$ (3,429,874)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization expense	2,103,534	2,816,396
Share based compensation expense	756,743	550,573
Impairment on asset held for sale		30,000
Amortization of deferred loan cost	18,522	18,525
Loss on disposition of rental fleet		23,649
Gain on loan forgiveness		(933,003)
Loss/(gain) on disposition of assets	249	(174,234)
Changes in operating assets and liabilities:
Accounts receivable	(1,526,310)	2,504,887
Inventories	(143,590)	(95,976)
Prepaid expenses and other current assets	(338,255)	266,488
Accounts payable and accrued expenses	85,020	(85,630)
Income tax payable	100,044	90,566
Other long-term liabilities		(61,421)
Net Cash (Used in) Provided by Operating Activities	526,156	1,520,946
Cash Flows From Investing Activities
Purchases of property, plant and equipment	(936,718)	(1,167,346)
Proceeds from sale of fixed assets	50,000	149,833
Net Cash Used in Investing Activities	(886,718)	(1,017,513)
Cash Flows from Financing Activities
Principal payments on debt	(1,277,730)	(2,350,783)
Principal received from debt borrowings		72,520
Proceeds received from Paycheck Protection Program		891,600
Payments on revolving loan	(895,787)	(1,179,768)
Proceeds received from revolving loan	1,697,427	1,185,319
Proceeds from financing obligation		1,622,106
Proceeds from issuance of common stock	1,697,311
Net Cash Provided by Financing Activities	1,221,221	240,994
Net Change in Cash	860,659	744,427
Cash at Beginning of Period	1,961,441	1,217,014
Cash at End of Period	2,822,100	1,961,441
Supplemental information:
Cash paid for Interest	530,898	576,854
Debt retired from financing obligation		2,638,773
Long term debt retired with proceeds from sale of airplane		$ 211,667

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 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 completion 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 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. Segment Reporting We operate as a single operating segment, which reflects how we manage our business. We operate in North America and the Middle East. See Note 13 – Geographical Operations Information. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant items subject to estimates and assumptions include the carrying amount and useful lives of property and equipment and intangible assets, impairment assessments, share-based compensation expense, and valuation allowances for accounts receivable, inventories, and deferred tax assets. Revenue Recognition We account for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), except for tool rental revenue. Under ASC 606 revenue is measured based on a consideration specified in a customer’s contract, excluding any sale incentives and taxes collected on behalf of third parties. Revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration that we expect to receive for those goods or services. To recognize revenue, we (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when, or as, we satisfy the performance obligation(s). Shipping and handling costs incurred are accounted for as fulfillment costs and are included in cost of revenues in the statements of operations. Tool sales, rentals and other related revenue Tool and Product Sales Tool Rental Other Related Revenue: Contract Services Drill Bit Manufacturing and Refurbishment See Note 2– Revenue. Cash We maintain cash deposits with financial institutions that may exceed federally insured limits at times. We have chosen credible institutions and believe our risk of loss is negligible. Fair Value of Financial Instruments The Company’s financial instruments consist of cash, receivables, payables, and bank debt. The Company believes that the carrying values of these instruments on the accompanying consolidated balance sheets approximate their fair values due to the relatively short period to maturity for these instruments. Accounts Receivable and Allowance for Doubtful Accounts Domestically accounts receivable are generally due within 60 days of the invoice date. Internationally our due date terms are generally 90 days from the invoice date. No interest is charged on past-due balances. We grant credit to our customers based upon an evaluation of each customer’s financial condition. We periodically monitor the payment history and ongoing creditworthiness of our customers. An allowance for doubtful accounts is established at a level estimated by management to be adequate based upon various factors including historical experience, aging status of customer accounts, payment history and financial condition of our customers. The allowance for doubtful accounts was $ 0 Inventories Inventories consist of raw materials, work-in-process and finished goods and are stated at the lower of cost, determined using the weighted-average cost method, or net realizable value. Finished goods inventories include raw materials, direct labor and production overhead. The Company regularly reviews inventories on hand and current market conditions to determine if the cost of finished goods inventories exceed current market prices and impairs the cost basis of the inventory accordingly. Assets and Liabilities Held for Sale The Company classifies disposal groups as held for sale in the period in which all of the following criteria are met: (1) management, having the authority to approve the action, commits to a plan to sell the disposal group; (2) the disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such disposal groups; (3) an active program to locate a buyer or buyers and other actions required to complete the plan to sell the disposal group have been initiated; (4) the sale of the disposal group is probable, and transfer of the disposal group is expected to qualify for recognition as a completed sale, within one year, except if events of circumstances beyond the Company’s control extend the period of time required to sell the disposal group beyond one year; (5) the disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (6) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A disposal group that is classified as held for sale is initially measured at the lower of its carrying amount or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Subsequent changes in the fair value of a disposal group less any costs to sell are reported as an adjustment to the carrying amount of the disposal group, as long as the new carrying amount does not exceed the carrying amount of the asset at the time it was initially classified as held for sale. Upon determining that a disposal group meets the criteria to be classified as held for sale, the Company reports the assets and liabilities of the disposal group for all periods presented in the line items assets held for sale and liabilities held for sale, respectively, in the consolidated balance sheets. Property, Plant and Equipment Property, plant and equipment is stated at cost. The cost of ordinary maintenance and repair is charged to operating expense, while replacement of critical components and major improvements are capitalized. Depreciation or amortization of property and equipment, is calculated using the straight-line method over the asset’s estimated useful life as follows: SCHEDULE OF ASSET'S ESTIMATED USEFUL LIFE Buildings and leasehold Improvements 2 39 Machinery, equipment and rental tools 18 10 Office equipment, fixtures and software 3 7 Transportation equipment 5 30 Property, plant and equipment is reviewed for impairment on an annual basis or whenever events or changes in circumstances indicate the carrying value of an asset or asset group may not be recoverable. Indicative events or circumstances include, but are not limited to, matters such as a significant decline in market value or a significant change in business climate. An impairment loss is recognized when the carrying value of an asset exceeds the estimated undiscounted future cash flows from the use of the asset and its eventual disposition. The amount of impairment loss recognized is the excess of the asset’s carrying value over its fair value. Assets to be disposed of are reported at the lower of the carrying value or the fair value less cost to sell. Upon sale or other disposition of an asset, the Company recognizes a gain or loss on disposal measured as the difference between the net carrying value of the asset and the net proceeds received. Intangible Assets The Company’s intangible assets with finite lives consist of developed technology, customer contracts and relationships, and trade names and trademarks. The cost of intangible assets with finite lives is amortized using the straight-line method over the estimated period of economic benefit, ranging from 5 9 Intangible assets with finite lives are tested for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable. These conditions may include a change in the extent or manner in which the asset is being used or a change in future operations. The Company assesses the recoverability of the carrying amount by preparing estimates of future revenue, margins, and cash flows. If the sum of expected future cash flows (undiscounted and without interest charges) is less than the carrying amount, an impairment loss is recognized. The impairment loss recognized is the amount by which the carrying amount exceeds the fair value. Fair value of these assets may be determined by a variety of methodologies, including discounted cash flow models. Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires assets and liabilities that arise from all leases to be recognized on the balance sheet for lessees and expanded financial statement disclosures for both lessees and lessors. We adopted the new standard effective January 1, 2020 and elected the modified retrospective transition method. The adoption of this standard resulted in approximately $ 270,000 20,518 Research and Development We expense research and development costs as they are incurred. For the years ended December 31, 2021 and 2020, these expenses were approximately $ 672,000 790,000 Earnings (Loss) Per Share Basic earnings (loss) per common share is calculated by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share is calculated by dividing net income (loss) attributable to common shareholders by the weighted average number of common shares outstanding, including potentially dilutive common share equivalents, if the effect is dilutive. Potentially dilutive common shares equivalents include stock options and warrants. Income Taxes The Company recognizes an asset or liability for the deferred tax consequences of all temporary differences between the tax basis of assets or liabilities and their reported amounts in the financial statements that will result in taxable or deductible amounts in future years when the reported amounts of the asset or liabilities are recovered or settled and for operating loss carry forwards. These deferred tax assets and liabilities are measured using the enacted tax rates that will be in effect when the differences are expected to reverse and the carry forwards are expected to be realized. Deferred tax assets are reviewed periodically for recoverability and a valuation allowance is provided as necessary. Debt Issuance Costs Costs related to debt issuance are capitalized and amortized as interest expense over the term of the related debt using the straight-line method, which approximates the effective interest method. Upon the repayment of debt, the Company accelerates the recognition of an appropriate amount of the costs as interest expense. Debt issuance costs are presented as a direct reduction from the carrying amount of the note payable. For calendar years 2021 and 2020, the amortized debt issuance costs were $ 18,522 and $ 18,524 , respectively. Share Based Compensation Share-based compensation expense related to stock option and restricted stock awards, is recognized based on the grant-date fair values. The Company recognizes compensation expense on a straight-line basis over the requisite service period of the award. Concentrations and Credit Risk The Company has two significant customers that represented 83 80 1,910,000 436,000 We had two significant vendors that represented 13 136,000 13 61,000 Restatement of the Consolidated Financial Statements The purpose of this restatement is to correct an error in the Company’s previously issued financial statements for the year ended December 31, 2020 in connection with the classification of $ 945,707 945,707 There was no effect of the restatement to the Company’s consolidated balance sheet, consolidated statement of operations and consolidated statement of changes in stockholders’ deficit for the year ended December 31, 2020. In accordance with the guidance provided by the SEC’s Staff Accounting Bulletin 99, Materiality (“SAB 99”) and Staff Accounting Bulletin 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements (“SAB 108”), the Company has determined that the impact of adjustments relating to the correction of this accounting error are not material to previously issued annual audited financial statements. The effects of the restatement on the Company’s consolidated statement of cash flows for the year ended December 31, 2020 are as follows: SCHEDULE OF RESTATEMENT OF CONSOLIDATED STATEMENT OF CASH FLOWS December 31, 2020 As Reported As Restated - Net cash provided in operating activities 575,239 1,520,946 - Net cash used in investing activities (71,806 ) (1,017,513 ) There was no impact to net cash provided by financing activities within our consolidated statement of cash flows nor was there an impact on the net change in cash resulting from restatement. Reclassifications Certain prior year amounts have been reclassified on the balance sheet to conform to the current year presentation. The reclassifications were within accounts payable and accrued expenses and did not impact net income. In addition, there was a reclass in note 12 for 2020. 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.

REVENUE

REVENUE	12 Months Ended
	Dec. 31, 2021
Revenue from Contract with Customer [Abstract]
REVENUE	NOTE 2. 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 revenue. 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 87 13 82 18 Revenue disaggregated by revenue source are as follows: SCHEDULE OF REVENUE DISAGGREGATED BY REVENUE December 31, 2021 2020 Tool Revenue: Tool and product sales $ 2,610,500 $ 1,145,520 Tool rental 1,716,556 1,884,329 Other related revenue 4,917,426 4,020,687 Total Tool Revenue 9,244,482 7,050,536 Contract Services 4,091,667 3,420,262 Total Revenue $ 13,336,149 $ 10,470,798 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	12 Months Ended
	Dec. 31, 2021
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 3. INVENTORIES Inventories were comprised of the following: SCHEDULE OF INVENTORIES December 31, December 31, Raw material $ 769,547 $ 733,734 Work in progress 65,945 50,631 Finished goods 339,143 235,643 Inventories, net $ 1,174,635 $ 1,020,008 The Company wrote off $ 0 4,800

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	12 Months Ended
	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT AND EQUIPMENT	NOTE 4. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are comprised of the following: SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT December 31, December 31, Land $ 880,416 $ 880,416 Buildings 4,764,441 4,764,441 Leasehold improvements 755,039 755,039 Machinery, equipment, and rental tools 12,207,497 11,298,642 Office equipment, fixtures and software 628,358 628,358 Transportation assets 265,760 265,760 Property, plant and equipment, gross 19,501,511 18,592,656 Accumulated depreciation (12,571,182 ) (11,057,558 ) Property, plant and equipment, net $ 6,930,329 $ 7,535,098 In February 2020, the Company sold the airplane for a gain of approximately $ 142,000 30,000 10,000 Depreciation expense related to property, plant and equipment for the years ended December 31, 2021 and 2020 was $ 1,520,201 1,649,729

INTANGIBLE ASSETS

INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	NOTE 5. INTANGIBLE ASSETS Intangible assets are comprised of the following: SCHEDULE OF INTANGIBLE ASSETS December 31, December 31, Developed technology $ 7,000,000 $ 7,000,000 Customer contracts 6,400,000 6,400,000 Trademarks 1,500,000 1,500,000 14,900,000 14,900,000 Accumulated amortization (14,663,889 ) (14,080,556 ) $ 236,111 $ 819,444 Amortization expense related to intangible assets for the years ended December 31, 2021 and 2020 was $ 583,333 1,166,667 These intangible assets will be amortized over their expected useful lives using the straight-line method, which is a weighted-average amortization period of 6.3 SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS, FUTURE AMORTIZATION EXPENSE 2022 166,667 2023 69,444 Total $ 236,111 During the years ended December 31, 2021 and 2020, there were no

RELATED PARTY NOTE RECEIVABLE

RELATED PARTY NOTE RECEIVABLE	12 Months Ended
	Dec. 31, 2021
Receivables [Abstract]
RELATED PARTY NOTE RECEIVABLE	NOTE 6. 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 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 A bonus was accrued but not paid to the Meiers during 2020. The Meiers did not make a Tronco interest payment in 2020. An after tax bonus payable to the Meiers of $ 707,000 365,000 in interest and approximately $ 342,000 towards the principal amount of the note. The Tronco note balance as of December 31, 2021 was approximately $ 6,749,000 .

LEASES

LEASES	12 Months Ended
	Dec. 31, 2021
Leases [Abstract]
LEASES	NOTE 7. LEASES The Company determines whether a contract is a lease, or contains a lease, at inception of the contract and whether that lease meets the classification criteria of a finance or operating lease. The Company discounts lease payments based on an estimate of its incremental borrowing rate as the Company’s leases do not provide a readily determinable implicit rate. The Company leases certain facilities in Texas, Utah and Dubai under long-term operating leases with lease terms of one year to two years. Effective January 1, 2020, the Company adopted the provision of ASC 842 Leases. See Note 10 – Financing Obligation regarding the sale-leaseback of our Utah facilities. The table below presents the lease related assets and liabilities recorded on the Company’s consolidated balance sheet as of December 31, 2021: SCHEDULE OF LEASE RELATED ASSETS AND LIABILITIES Classification on Balance Sheet December 31, 2021 Assets Operating lease assets Operating lease right of use assets $ 20,518 Total lease assets $ 20,518 Liabilities Current liabilities Operating lease liability Current operating lease liability $ 13,716 Noncurrrent liabilities Operating lease liability Long-term operating lease liability 6,802 Total lease liability $ 20,518 The lease expense and the cash paid under operating leases for the year ended December 31, 2021 was $ 48,621 0.97 7.25 The following is the aggregate future lease payments for operating leases as of December 31, 2021: SCHEDULE OF AGGREGATE FUTURE LEASE PAYMENTS FOR OPERATING LEASES 2022 15,252 2023 8,052 Total undiscounted lease payments 23,304 Less: effects of discounting (2,786 ) Present value of lease payments $ 20,518

LONG-TERM DEBT

LONG-TERM DEBT	12 Months Ended
	Dec. 31, 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 December 31, December 31, Hard Rock Note $ 750,000 $ 1,500,000 Credit Agreement 1,312,194 825,366 Machinery loans 357,963 466,448 Transportation loans 32,277 56,572 2,452,434 2,848,386 Current portion of long-term debt (2,195,759 ) (1,397,337 ) $ 256,675 $ 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 17,589 104,877 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 $ 4,300,000 800,000 3,500,000 333,000 1,000,000 Amounts outstanding under the LOC 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 LOC is classified as current debt as a result of the required lockbox arrangement and the subjective acceleration clause. At December 31, 2021, we were in compliance with the covenants in the Credit Agreement. The interest rate for the Term Loan and the LOC is prime plus 2 8.85 3.6 Even if our borrowings under the LOC are less than $1,000,000, we still pay interest as if we had borrowed $1,000,000. 9,700 February 20, 2023 Equipment Loans The Company has purchased equipment and financed the purchases with a financing company and a bank. At December 31, 2021, the balance outstanding for the equipment loans was approximately $ 357,963 11,830 5.9 8.06 November 2024 and February 2025 Transportation Loans Vehicles Our loans for Company vehicles and other transportation are with various financing parties we have engaged with in connection with the acquisition of the vehicles. As of December 31, 2021, one vehicle loan was outstanding in the amount of $ 32,277 6.99% June 2024 1,169 Future annual maturities of total debt are as follows (1): SCHEDULE OF FUTURE ANNUAL MATURITIES OF TOTAL DEBT Year 2022 2,214,283 2023 140,967 2024 115,165 2025 3,632 Total debt $ 2,474,047 (1) Excludes discounts for debt issuance costs.

FINANCING OBLIGATION

FINANCING OBLIGATION	12 Months Ended
	Dec. 31, 2021
Leases [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 2,188,710 61,616 25,950 4,178,336 The financing obligation is summarized below: SCHEDULE OF FINANCING OBLIGATION December 31, Finance obligations for sale-leaseback transactions $ 4,178,336 Current principal portion of finance obligation (65,678 ) Non-current portion of finance obligation $ 4,112,658 The following is the aggregate future lease payments that include principal and interest for the finance obligation as of December 31, 2021: SCHEDULE OF AGGREGATE FUTURE LEASE PAYMENTS FOR THE FINANCE OBLIGATION 2022 316,384 2023 321,130 2024 325,947 2025 330,836 2026 335,799 Thereafter 3,257,778 Total undiscounted lease payments 4,887,874 Residual value of the property (included in the future payments) 2,188,711 Less: effects of discounting (2,898,249 ) Present value of lease payments $ 4,178,336

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2021
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 that Stabil Drill Specialties, LLC’s (“Stabil Drill”) Smoothbore Eccentric Reamer infringes the patents of Extreme Technologies (one of our subsidiaries) on our patented Drill-N-Ream well bore conditioning tool. 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 for their work manufacturing the Smoothbore Eccentric Reamer for Stabil Drill. The Dallas lawsuit is stayed pending resolution of the first-filed, Houston suit. 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, but this bankruptcy did not affect Extreme’s claims against Superior’s subsidiary Stabil Drill. On March 9, 2021, the Court lifted the automatic bankruptcy stay, and on May 12, 2021, the Court denied Stabil Drill’s motion for summary judgment of non-infringement. The parties are preparing this case for trial and expect a jury trial setting in late 2022 or early 2023.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2021
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 11. INCOME TAXES Components of income tax expense are as follows: SCHEDULE OF COMPONENTS OF INCOME TAX BENEFIT For the Year For the Year Current income taxes: Federal $ - $ - State 5,964 10,481 International 104,787 104,515 Current provision for income taxes 110,751 114,996 Deferred provision (benefit) for income taxes: Federal - - State - - Deferred provision (benefit) for income taxes - - Provision for income taxes $ 110,751 $ 114,996 The non-current deferred tax assets and liabilities consist of the following: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES Deferred tax assets: 263A adjustment $ 14,204 $ 12,133 Accrued expenses - 183,282 Prepaid expenses (27,498 ) (15,458 ) Stock compensation 159,315 122,191 Stock option 71,251 70,201 Amortization of intangibles 2,661,090 2,839,598 Net operating loss 3,246,413 2,898,078 Allowances 1,632,266 1,686,952 Sale-leaseback – lease liability 1,010,467 1,008,663 Others 22,181 20,102 Total non-current deferred tax assets 8,789,689 8,825,742 Deferred tax liabilities: Depreciation on sale-leaseback fixed assets (942,799 ) (967,055 ) Depreciation on fixed assets (46,881 ) (251,190 ) Total non-current deferred tax liabilities (989,680 ) (1,218,245 ) Net non-current deferred tax assets/liabilities 7,800,010 7,607,497 Less: Valuation Allowance (7,800,010 ) (7,607,497 ) Total deferred tax assets / liabilities $ - $ - The Company’s tax expense differs from the statutory tax benefit for the years ended December 31, 2021 and 2020 and the reconciliation is as follows: SCHEDULE OF STATUTORY TAX BENEFIT For the Year Ended For the Year Ended Tax benefit at federal statutory rate $ (88,001 ) $ (696,124 ) State income taxes 4,712 8,280 Foreign income taxes 79,445 - Permanent differences 38,458 (219,880 ) Change in valuation allowance 192,512 903,335 Other adjustment/tax expense true-up - 79,651 Other - State rate effect (13,532 ) (92,760 ) Change in status (125,747 ) 66,835 Other 22,904 65,659 Provision for income taxes $ 110,751 $ 114,996 In calendar years 2021 and 2020, the Company paid no 14,000 We have total federal income tax Net Operating Loss (NOL) carryforwards of $ 13,424,000 10,067,000 3,357,000 The pre-2018 losses will begin to expire between 2035 and 2037. The post-2017 losses can be carried forward indefinitely, however, only 80% of these losses can offset taxable income. We believe that it is more likely than not that the benefit from these NOL carryforwards will not be realized. In recognition of this risk, we have provided a valuation allowance of $ 3,246,000 In accordance with the accounting under ASC Topic 740, the Company has recorded a liability for an uncertain tax position taken on its international income tax returns. Penalties related to this income tax liability are included as a component of income tax expense in the accompanying statements of operations. The Company had approximately 206,000 106,000 6,000 0

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	12 Months Ended
	Dec. 31, 2021
Share-based Payment Arrangement [Abstract]
SHARE-BASED COMPENSATION	NOTE 12. SHARE-BASED COMPENSATION In 2014, the Company’s Board of Directors approved that the Directors stock compensation would be included in the Employee Stock Incentive Plan (“Stock Plan”) that reserves 1,724,128 In 2015, our stockholders approved the Superior Drilling Company, Inc. 2015 Long Term Incentive Plan (the “2015 Incentive Plan”). The purpose of the 2015 Incentive Plan is to advance the interests of the Company and its stockholders by providing an incentive to attract, retain and reward persons performing services for the Company and its affiliates and by motivating such persons to contribute to the growth and profitability of the Company and our affiliates. In 2020, the Company’s board of directors approved an additional 2,543,448 5,576,326 455,000 Restricted stock units On August 9, 2021, the Board of Directors granted 1,231,541 three On August 7, 2020, the Board of Directors granted 1,544,719 three Compensation expense recognized for grants of restricted stock vesting under the 2015 Incentive Plan was approximately $ 754,000 and $ 545,000 for the years ending December 31, 2021 and 2020, respectively. The Company recognized compensation expense and recorded it as share-based compensation in the consolidated statement of operations. Total unrecognized compensation expense related to unvested restricted stock units expected to be recognized over the remaining weighted vesting period of 2.25 1,603,321 three years The following table summarizes RSU activity for the years ended December 31, 2021 and 2020: SCHEDULE OF SHARE-BASED COMPENSATION, RESTRICTED STOCK UNITS AWARD ACTIVITY 2021 2020 Number of Restricted Stock Units Weighted - Number of Restricted Stock Units Weighted - Unvested RSU’s at beginning of period 1,796,897 $ 0.71 706,394 $ 1.24 Granted 1,231,541 0.76 1,544,719 0.59 Forfeited (10,000 ) 0.59 (110,000 ) 0.59 Vested (733,528 ) 0.83 (344,216 ) 1.29 Unvested RSU’s at end of period 2,284,910 $ 0.70 1,796,897 $ 0.71 Stock Options On August 9, 2021 the Board of Directors approved to be granted 74,996 stock options under the 2015 Incentive Plan to employees. These options were granted to employees on December 10, 2021 at a grant price of $ 0.78 . The fair value, based on the Black-Scholes option pricing model, on the date of grant was $ 0.31 . The options vest 33.3 % on the grant date, 33.3 % on the first anniversary of the grant date and 33.4 % on the second anniversary of the grant date. The Company recognized stock-based compensation expense of approximately $ 3,000 The following table summarizes stock options outstanding and changes during the years ended December 31, 2021 and 2020: SCHEDULE OF SHARE-BASED COMPENSATION, STOCK OPTIONS, ACTIVITY 2021 2020 Number of Stock Options Weighted - Average Exercise Price Number of Stock Options Weighted - Average Exercise Price Stock options outstanding at beginning of period 498,277 $ 1.53 588,133 $ 1.50 Granted 74,996 0.78 - - Exercised (1,865 ) 0.86 - - Expired (172,828 ) 1.67 (51,971 ) 1.40 Canceled or forfeited - - (37,885 ) 1.19 Stock options outstanding at end of period 398,580 $ 1.34 498,277 $ 1.53 Stock options exercisable at end of period 321,586 $ 1.47 481,076 $ 1.55 The fair value of stock options granted to employees and directors in 2021 was estimated at the grant date using the Black-Scholes option pricing model using the following assumptions: SCHEDULE OF SHARE-BASED PAYMENT AWARD, STOCK OPTIONS, VALUATION ASSUMPTIONS Expected volatility 59.50 % Discount rate 1.25 % Expected life (years) 2 Dividend yield NA Option pricing models require the input of highly subjective assumptions, including the expected price volatility. Expected price volatility is based on the historical volatility of our common stock. Changes in the subjective input assumptions can materially affect the fair value estimate. The expected term of the options granted is derived from the output of the option pricing model and represents the period of time that the options granted are expected to be outstanding. The discount rate for the periods within the contractual term of the option is based on the U.S. Treasury yield curve in effect at the date of grant.

GEOGRAPHICAL OPERATIONS INFORMA

GEOGRAPHICAL OPERATIONS INFORMATION	12 Months Ended
	Dec. 31, 2021
Segment Reporting [Abstract]
GEOGRAPHICAL OPERATIONS INFORMATION	NOTE 13. GEOGRAPHICAL OPERATIONS INFORMATION The following summarizes revenue by geographic location: SCHEDULE OF REVENUE AND PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHIC LOCATION For the Year For the Year Revenue: North America $ 11,619,593 $ 8,590,933 International $ 1,716,556 $ 1,879,865 $ 13,336,149 $ 10,470,798 The following summarizes net property, plant and equipment by geographic location: SCHEDULE OF NET PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHIC LOCATION December 31, 2021 December 31, 2020 Property, plant and equipment, net: North America $ 5,762,066 $ 6,008,431 International 1,168,263 1,526,667 $ 6,930,329 $ 7,535,098

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 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 completion 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 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.
Segment Reporting	Segment Reporting We operate as a single operating segment, which reflects how we manage our business. We operate in North America and the Middle East. See Note 13 – Geographical Operations Information.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant items subject to estimates and assumptions include the carrying amount and useful lives of property and equipment and intangible assets, impairment assessments, share-based compensation expense, and valuation allowances for accounts receivable, inventories, and deferred tax assets.
Revenue Recognition	Revenue Recognition We account for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), except for tool rental revenue. Under ASC 606 revenue is measured based on a consideration specified in a customer’s contract, excluding any sale incentives and taxes collected on behalf of third parties. Revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration that we expect to receive for those goods or services. To recognize revenue, we (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when, or as, we satisfy the performance obligation(s). Shipping and handling costs incurred are accounted for as fulfillment costs and are included in cost of revenues in the statements of operations. Tool sales, rentals and other related revenue Tool and Product Sales Tool Rental Other Related Revenue: Contract Services Drill Bit Manufacturing and Refurbishment See Note 2– Revenue.
Cash	Cash We maintain cash deposits with financial institutions that may exceed federally insured limits at times. We have chosen credible institutions and believe our risk of loss is negligible.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company’s financial instruments consist of cash, receivables, payables, and bank debt. The Company believes that the carrying values of these instruments on the accompanying consolidated balance sheets approximate their fair values due to the relatively short period to maturity for these instruments.
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts Domestically accounts receivable are generally due within 60 days of the invoice date. Internationally our due date terms are generally 90 days from the invoice date. No interest is charged on past-due balances. We grant credit to our customers based upon an evaluation of each customer’s financial condition. We periodically monitor the payment history and ongoing creditworthiness of our customers. An allowance for doubtful accounts is established at a level estimated by management to be adequate based upon various factors including historical experience, aging status of customer accounts, payment history and financial condition of our customers. The allowance for doubtful accounts was $ 0
Inventories	Inventories Inventories consist of raw materials, work-in-process and finished goods and are stated at the lower of cost, determined using the weighted-average cost method, or net realizable value. Finished goods inventories include raw materials, direct labor and production overhead. The Company regularly reviews inventories on hand and current market conditions to determine if the cost of finished goods inventories exceed current market prices and impairs the cost basis of the inventory accordingly.
Assets and Liabilities Held for Sale	Assets and Liabilities Held for Sale The Company classifies disposal groups as held for sale in the period in which all of the following criteria are met: (1) management, having the authority to approve the action, commits to a plan to sell the disposal group; (2) the disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such disposal groups; (3) an active program to locate a buyer or buyers and other actions required to complete the plan to sell the disposal group have been initiated; (4) the sale of the disposal group is probable, and transfer of the disposal group is expected to qualify for recognition as a completed sale, within one year, except if events of circumstances beyond the Company’s control extend the period of time required to sell the disposal group beyond one year; (5) the disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (6) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A disposal group that is classified as held for sale is initially measured at the lower of its carrying amount or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Subsequent changes in the fair value of a disposal group less any costs to sell are reported as an adjustment to the carrying amount of the disposal group, as long as the new carrying amount does not exceed the carrying amount of the asset at the time it was initially classified as held for sale. Upon determining that a disposal group meets the criteria to be classified as held for sale, the Company reports the assets and liabilities of the disposal group for all periods presented in the line items assets held for sale and liabilities held for sale, respectively, in the consolidated balance sheets.
SCHEDULE OF ASSET'S ESTIMATED USEFUL LIFE	Property, Plant and Equipment Property, plant and equipment is stated at cost. The cost of ordinary maintenance and repair is charged to operating expense, while replacement of critical components and major improvements are capitalized. Depreciation or amortization of property and equipment, is calculated using the straight-line method over the asset’s estimated useful life as follows: SCHEDULE OF ASSET'S ESTIMATED USEFUL LIFE Buildings and leasehold Improvements 2 39 Machinery, equipment and rental tools 18 10 Office equipment, fixtures and software 3 7 Transportation equipment 5 30 Property, plant and equipment is reviewed for impairment on an annual basis or whenever events or changes in circumstances indicate the carrying value of an asset or asset group may not be recoverable. Indicative events or circumstances include, but are not limited to, matters such as a significant decline in market value or a significant change in business climate. An impairment loss is recognized when the carrying value of an asset exceeds the estimated undiscounted future cash flows from the use of the asset and its eventual disposition. The amount of impairment loss recognized is the excess of the asset’s carrying value over its fair value. Assets to be disposed of are reported at the lower of the carrying value or the fair value less cost to sell. Upon sale or other disposition of an asset, the Company recognizes a gain or loss on disposal measured as the difference between the net carrying value of the asset and the net proceeds received.
Intangible Assets	Intangible Assets The Company’s intangible assets with finite lives consist of developed technology, customer contracts and relationships, and trade names and trademarks. The cost of intangible assets with finite lives is amortized using the straight-line method over the estimated period of economic benefit, ranging from 5 9 Intangible assets with finite lives are tested for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable. These conditions may include a change in the extent or manner in which the asset is being used or a change in future operations. The Company assesses the recoverability of the carrying amount by preparing estimates of future revenue, margins, and cash flows. If the sum of expected future cash flows (undiscounted and without interest charges) is less than the carrying amount, an impairment loss is recognized. The impairment loss recognized is the amount by which the carrying amount exceeds the fair value. Fair value of these assets may be determined by a variety of methodologies, including discounted cash flow models.
Leases	Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires assets and liabilities that arise from all leases to be recognized on the balance sheet for lessees and expanded financial statement disclosures for both lessees and lessors. We adopted the new standard effective January 1, 2020 and elected the modified retrospective transition method. The adoption of this standard resulted in approximately $ 270,000 20,518
Research and Development	Research and Development We expense research and development costs as they are incurred. For the years ended December 31, 2021 and 2020, these expenses were approximately $ 672,000 790,000
Earnings (Loss) Per Share	Earnings (Loss) Per Share Basic earnings (loss) per common share is calculated by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share is calculated by dividing net income (loss) attributable to common shareholders by the weighted average number of common shares outstanding, including potentially dilutive common share equivalents, if the effect is dilutive. Potentially dilutive common shares equivalents include stock options and warrants.
Income Taxes	Income Taxes The Company recognizes an asset or liability for the deferred tax consequences of all temporary differences between the tax basis of assets or liabilities and their reported amounts in the financial statements that will result in taxable or deductible amounts in future years when the reported amounts of the asset or liabilities are recovered or settled and for operating loss carry forwards. These deferred tax assets and liabilities are measured using the enacted tax rates that will be in effect when the differences are expected to reverse and the carry forwards are expected to be realized. Deferred tax assets are reviewed periodically for recoverability and a valuation allowance is provided as necessary.
Debt Issuance Costs	Debt Issuance Costs Costs related to debt issuance are capitalized and amortized as interest expense over the term of the related debt using the straight-line method, which approximates the effective interest method. Upon the repayment of debt, the Company accelerates the recognition of an appropriate amount of the costs as interest expense. Debt issuance costs are presented as a direct reduction from the carrying amount of the note payable. For calendar years 2021 and 2020, the amortized debt issuance costs were $ 18,522 and $ 18,524 , respectively.
Share Based Compensation	Share Based Compensation Share-based compensation expense related to stock option and restricted stock awards, is recognized based on the grant-date fair values. The Company recognizes compensation expense on a straight-line basis over the requisite service period of the award.
Concentrations and Credit Risk	Concentrations and Credit Risk The Company has two significant customers that represented 83 80 1,910,000 436,000 We had two significant vendors that represented 13 136,000 13 61,000
Restatement of the Consolidated Financial Statements	Restatement of the Consolidated Financial Statements The purpose of this restatement is to correct an error in the Company’s previously issued financial statements for the year ended December 31, 2020 in connection with the classification of $ 945,707 945,707 There was no effect of the restatement to the Company’s consolidated balance sheet, consolidated statement of operations and consolidated statement of changes in stockholders’ deficit for the year ended December 31, 2020. In accordance with the guidance provided by the SEC’s Staff Accounting Bulletin 99, Materiality (“SAB 99”) and Staff Accounting Bulletin 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements (“SAB 108”), the Company has determined that the impact of adjustments relating to the correction of this accounting error are not material to previously issued annual audited financial statements. The effects of the restatement on the Company’s consolidated statement of cash flows for the year ended December 31, 2020 are as follows: SCHEDULE OF RESTATEMENT OF CONSOLIDATED STATEMENT OF CASH FLOWS December 31, 2020 As Reported As Restated - Net cash provided in operating activities 575,239 1,520,946 - Net cash used in investing activities (71,806 ) (1,017,513 ) There was no impact to net cash provided by financing activities within our consolidated statement of cash flows nor was there an impact on the net change in cash resulting from restatement.
Reclassifications	Reclassifications Certain prior year amounts have been reclassified on the balance sheet to conform to the current year presentation. The reclassifications were within accounts payable and accrued expenses and did not impact net income. In addition, there was a reclass in note 12 for 2020.
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.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
SCHEDULE OF ASSET'S ESTIMATED USEFUL LIFE	SCHEDULE OF ASSET'S ESTIMATED USEFUL LIFE Buildings and leasehold Improvements 2 39 Machinery, equipment and rental tools 18 10 Office equipment, fixtures and software 3 7 Transportation equipment 5 30
SCHEDULE OF RESTATEMENT OF CONSOLIDATED STATEMENT OF CASH FLOWS	The effects of the restatement on the Company’s consolidated statement of cash flows for the year ended December 31, 2020 are as follows: SCHEDULE OF RESTATEMENT OF CONSOLIDATED STATEMENT OF CASH FLOWS December 31, 2020 As Reported As Restated - Net cash provided in operating activities 575,239 1,520,946 - Net cash used in investing activities (71,806 ) (1,017,513 )

REVENUE (Tables)

REVENUE (Tables)	12 Months Ended
	Dec. 31, 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 December 31, 2021 2020 Tool Revenue: Tool and product sales $ 2,610,500 $ 1,145,520 Tool rental 1,716,556 1,884,329 Other related revenue 4,917,426 4,020,687 Total Tool Revenue 9,244,482 7,050,536 Contract Services 4,091,667 3,420,262 Total Revenue $ 13,336,149 $ 10,470,798

INVENTORIES (Tables)

INVENTORIES (Tables)	12 Months Ended
	Dec. 31, 2021
Inventory Disclosure [Abstract]
SCHEDULE OF INVENTORIES	Inventories were comprised of the following: SCHEDULE OF INVENTORIES December 31, December 31, Raw material $ 769,547 $ 733,734 Work in progress 65,945 50,631 Finished goods 339,143 235,643 Inventories, net $ 1,174,635 $ 1,020,008

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 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 December 31, December 31, Land $ 880,416 $ 880,416 Buildings 4,764,441 4,764,441 Leasehold improvements 755,039 755,039 Machinery, equipment, and rental tools 12,207,497 11,298,642 Office equipment, fixtures and software 628,358 628,358 Transportation assets 265,760 265,760 Property, plant and equipment, gross 19,501,511 18,592,656 Accumulated depreciation (12,571,182 ) (11,057,558 ) Property, plant and equipment, net $ 6,930,329 $ 7,535,098

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
SCHEDULE OF INTANGIBLE ASSETS	Intangible assets are comprised of the following: SCHEDULE OF INTANGIBLE ASSETS December 31, December 31, Developed technology $ 7,000,000 $ 7,000,000 Customer contracts 6,400,000 6,400,000 Trademarks 1,500,000 1,500,000 14,900,000 14,900,000 Accumulated amortization (14,663,889 ) (14,080,556 ) $ 236,111 $ 819,444
SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS, FUTURE AMORTIZATION EXPENSE	SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS, FUTURE AMORTIZATION EXPENSE 2022 166,667 2023 69,444 Total $ 236,111

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Dec. 31, 2021
Leases [Abstract]
SCHEDULE OF LEASE RELATED ASSETS AND LIABILITIES	The table below presents the lease related assets and liabilities recorded on the Company’s consolidated balance sheet as of December 31, 2021: SCHEDULE OF LEASE RELATED ASSETS AND LIABILITIES Classification on Balance Sheet December 31, 2021 Assets Operating lease assets Operating lease right of use assets $ 20,518 Total lease assets $ 20,518 Liabilities Current liabilities Operating lease liability Current operating lease liability $ 13,716 Noncurrrent liabilities Operating lease liability Long-term operating lease liability 6,802 Total lease liability $ 20,518
SCHEDULE OF AGGREGATE FUTURE LEASE PAYMENTS FOR OPERATING LEASES	The following is the aggregate future lease payments for operating leases as of December 31, 2021: SCHEDULE OF AGGREGATE FUTURE LEASE PAYMENTS FOR OPERATING LEASES 2022 15,252 2023 8,052 Total undiscounted lease payments 23,304 Less: effects of discounting (2,786 ) Present value of lease payments $ 20,518

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	12 Months Ended
	Dec. 31, 2021
Debt Disclosure [Abstract]
SCHEDULE OF LONG-TERM DEBT INSTRUMENTS	Long-term debt is comprised of the following: SCHEDULE OF LONG-TERM DEBT INSTRUMENTS December 31, December 31, Hard Rock Note $ 750,000 $ 1,500,000 Credit Agreement 1,312,194 825,366 Machinery loans 357,963 466,448 Transportation loans 32,277 56,572 2,452,434 2,848,386 Current portion of long-term debt (2,195,759 ) (1,397,337 ) $ 256,675 $ 1,451,049
SCHEDULE OF FUTURE ANNUAL MATURITIES OF TOTAL DEBT	Future annual maturities of total debt are as follows (1): SCHEDULE OF FUTURE ANNUAL MATURITIES OF TOTAL DEBT Year 2022 2,214,283 2023 140,967 2024 115,165 2025 3,632 Total debt $ 2,474,047 (1) Excludes discounts for debt issuance costs.

FINANCING OBLIGATION (Tables)

FINANCING OBLIGATION (Tables)	12 Months Ended
	Dec. 31, 2021
Leases [Abstract]
SCHEDULE OF FINANCING OBLIGATION	The financing obligation is summarized below: SCHEDULE OF FINANCING OBLIGATION December 31, Finance obligations for sale-leaseback transactions $ 4,178,336 Current principal portion of finance obligation (65,678 ) Non-current portion of finance obligation $ 4,112,658
SCHEDULE OF AGGREGATE FUTURE LEASE PAYMENTS FOR THE FINANCE OBLIGATION	The following is the aggregate future lease payments that include principal and interest for the finance obligation as of December 31, 2021: SCHEDULE OF AGGREGATE FUTURE LEASE PAYMENTS FOR THE FINANCE OBLIGATION 2022 316,384 2023 321,130 2024 325,947 2025 330,836 2026 335,799 Thereafter 3,257,778 Total undiscounted lease payments 4,887,874 Residual value of the property (included in the future payments) 2,188,711 Less: effects of discounting (2,898,249 ) Present value of lease payments $ 4,178,336

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2021
Income Tax Disclosure [Abstract]
SCHEDULE OF COMPONENTS OF INCOME TAX BENEFIT	Components of income tax expense are as follows: SCHEDULE OF COMPONENTS OF INCOME TAX BENEFIT For the Year For the Year Current income taxes: Federal $ - $ - State 5,964 10,481 International 104,787 104,515 Current provision for income taxes 110,751 114,996 Deferred provision (benefit) for income taxes: Federal - - State - - Deferred provision (benefit) for income taxes - - Provision for income taxes $ 110,751 $ 114,996
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES	The non-current deferred tax assets and liabilities consist of the following: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES Deferred tax assets: 263A adjustment $ 14,204 $ 12,133 Accrued expenses - 183,282 Prepaid expenses (27,498 ) (15,458 ) Stock compensation 159,315 122,191 Stock option 71,251 70,201 Amortization of intangibles 2,661,090 2,839,598 Net operating loss 3,246,413 2,898,078 Allowances 1,632,266 1,686,952 Sale-leaseback – lease liability 1,010,467 1,008,663 Others 22,181 20,102 Total non-current deferred tax assets 8,789,689 8,825,742 Deferred tax liabilities: Depreciation on sale-leaseback fixed assets (942,799 ) (967,055 ) Depreciation on fixed assets (46,881 ) (251,190 ) Total non-current deferred tax liabilities (989,680 ) (1,218,245 ) Net non-current deferred tax assets/liabilities 7,800,010 7,607,497 Less: Valuation Allowance (7,800,010 ) (7,607,497 ) Total deferred tax assets / liabilities $ - $ -
SCHEDULE OF STATUTORY TAX BENEFIT	The Company’s tax expense differs from the statutory tax benefit for the years ended December 31, 2021 and 2020 and the reconciliation is as follows: SCHEDULE OF STATUTORY TAX BENEFIT For the Year Ended For the Year Ended Tax benefit at federal statutory rate $ (88,001 ) $ (696,124 ) State income taxes 4,712 8,280 Foreign income taxes 79,445 - Permanent differences 38,458 (219,880 ) Change in valuation allowance 192,512 903,335 Other adjustment/tax expense true-up - 79,651 Other - State rate effect (13,532 ) (92,760 ) Change in status (125,747 ) 66,835 Other 22,904 65,659 Provision for income taxes $ 110,751 $ 114,996

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	12 Months Ended
	Dec. 31, 2021
Share-based Payment Arrangement [Abstract]
SCHEDULE OF SHARE-BASED COMPENSATION, RESTRICTED STOCK UNITS AWARD ACTIVITY	The following table summarizes RSU activity for the years ended December 31, 2021 and 2020: SCHEDULE OF SHARE-BASED COMPENSATION, RESTRICTED STOCK UNITS AWARD ACTIVITY 2021 2020 Number of Restricted Stock Units Weighted - Number of Restricted Stock Units Weighted - Unvested RSU’s at beginning of period 1,796,897 $ 0.71 706,394 $ 1.24 Granted 1,231,541 0.76 1,544,719 0.59 Forfeited (10,000 ) 0.59 (110,000 ) 0.59 Vested (733,528 ) 0.83 (344,216 ) 1.29 Unvested RSU’s at end of period 2,284,910 $ 0.70 1,796,897 $ 0.71
SCHEDULE OF SHARE-BASED COMPENSATION, STOCK OPTIONS, ACTIVITY	The following table summarizes stock options outstanding and changes during the years ended December 31, 2021 and 2020: SCHEDULE OF SHARE-BASED COMPENSATION, STOCK OPTIONS, ACTIVITY 2021 2020 Number of Stock Options Weighted - Average Exercise Price Number of Stock Options Weighted - Average Exercise Price Stock options outstanding at beginning of period 498,277 $ 1.53 588,133 $ 1.50 Granted 74,996 0.78 - - Exercised (1,865 ) 0.86 - - Expired (172,828 ) 1.67 (51,971 ) 1.40 Canceled or forfeited - - (37,885 ) 1.19 Stock options outstanding at end of period 398,580 $ 1.34 498,277 $ 1.53 Stock options exercisable at end of period 321,586 $ 1.47 481,076 $ 1.55
SCHEDULE OF SHARE-BASED PAYMENT AWARD, STOCK OPTIONS, VALUATION ASSUMPTIONS	The fair value of stock options granted to employees and directors in 2021 was estimated at the grant date using the Black-Scholes option pricing model using the following assumptions: SCHEDULE OF SHARE-BASED PAYMENT AWARD, STOCK OPTIONS, VALUATION ASSUMPTIONS Expected volatility 59.50 % Discount rate 1.25 % Expected life (years) 2 Dividend yield NA

GEOGRAPHICAL OPERATIONS INFOR_2

GEOGRAPHICAL OPERATIONS INFORMATION (Tables)	12 Months Ended
	Dec. 31, 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 For the Year For the Year Revenue: North America $ 11,619,593 $ 8,590,933 International $ 1,716,556 $ 1,879,865 $ 13,336,149 $ 10,470,798
SCHEDULE OF NET PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHIC LOCATION	The following summarizes net property, plant and equipment by geographic location: SCHEDULE OF NET PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHIC LOCATION December 31, 2021 December 31, 2020 Property, plant and equipment, net: North America $ 5,762,066 $ 6,008,431 International 1,168,263 1,526,667 $ 6,930,329 $ 7,535,098

SCHEDULE OF ASSET'S ESTIMATED U

SCHEDULE OF ASSET'S ESTIMATED USEFUL LIFE (Details)	12 Months Ended
	Dec. 31, 2021
Buildings and Leasehold Improvements [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	2 years
Buildings and Leasehold Improvements [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	39 years
Machinery, Equipment and Rental Tools [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	18 months
Machinery, Equipment and Rental Tools [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	10 years
Office Equipment, Fixtures and Software [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	3 years
Office Equipment, Fixtures and Software [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	7 years
Transportation Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	5 years
Transportation Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	30 years

SCHEDULE OF RESTATEMENT OF CONS

SCHEDULE OF RESTATEMENT OF CONSOLIDATED STATEMENT OF CASH FLOWS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Net cash provided in operating activities	$ 526,156	$ 1,520,946
Net cash provided in operating activities	$ (886,718)	(1,017,513)
Previously Reported [Member]
Net cash provided in operating activities		575,239
Net cash provided in operating activities		$ (71,806)

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Jan. 01, 2020
Product Information [Line Items]
Accounts Receivable, Allowance for Credit Loss	$ 0	$ 0
Intangible assets, amortization period	6 years 3 months 18 days
Operating lease right-of-use assets	$ 20,518	99,831	$ 270,000
Operating lease liabilities	13,716	79,313	$ 270,000
Operating lease liabilities	20,518
Research and development expenses	672,000	790,000
Debt Issuance Costs, Net	18,522	18,524
Accounts receivable	1,910,000	436,000
Accounts payable	1,139,091	430,014
Purchase of property, plant and equipment	936,718	1,167,346
Revision of Prior Period, Adjustment [Member]
Product Information [Line Items]
Inventory converted to Property, plant and equipment		945,707
Purchase of property, plant and equipment		945,707
Two Vendor [Member]
Product Information [Line Items]
Accounts payable	$ 136,000
One Vendor [Member]
Product Information [Line Items]
Accounts payable		$ 61,000
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Two Customers [Member]
Product Information [Line Items]
Concentration risk percentage	83.00%	80.00%
Supplier Concentration Risk [Member] | Purchases [Member] | Two Vendor [Member]
Product Information [Line Items]
Concentration risk percentage	13.00%
Supplier Concentration Risk [Member] | Purchases [Member] | One Vendor [Member]
Product Information [Line Items]
Concentration risk percentage		13.00%
Minimum [Member]
Product Information [Line Items]
Intangible assets, amortization period	5 years
Maximum [Member]
Product Information [Line Items]
Intangible assets, amortization period	9 years

SCHEDULE OF REVENUE DISAGGREGAT

SCHEDULE OF REVENUE DISAGGREGATED BY REVENUE (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
Total Revenue	$ 13,336,149	$ 10,470,798
Tools and Product Sales [Member]
Disaggregation of Revenue [Line Items]
Total Revenue	2,610,500	1,145,520
Tool Rental [Member]
Disaggregation of Revenue [Line Items]
Total Revenue	1,716,556	1,884,329
Other Related Revenue [Member]
Disaggregation of Revenue [Line Items]
Total Revenue	4,917,426	4,020,687
Tool Revenue [Member]
Disaggregation of Revenue [Line Items]
Total Revenue	9,244,482	7,050,536
Contract Services [Member]
Disaggregation of Revenue [Line Items]
Total Revenue	$ 4,091,667	$ 3,420,262

REVENUE (Details Narrative)

REVENUE (Details Narrative)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
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] | UNITED STATES
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	87.00%	82.00%
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | Middle East [Member]
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	13.00%	18.00%

SCHEDULE OF INVENTORIES (Detail

SCHEDULE OF INVENTORIES (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Raw material	$ 769,547	$ 733,734
Work in progress	65,945	50,631
Finished goods	339,143	235,643
Inventories, net	$ 1,174,635	$ 1,020,008

INVENTORIES (Details Narrative)

INVENTORIES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Inventory wrote off	$ 0	$ 4,800

SCHEDULE OF PROPERTY, PLANT AND

SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Land	$ 880,416	$ 880,416
Buildings	4,764,441	4,764,441
Leasehold improvements	755,039	755,039
Machinery, equipment, and rental tools	12,207,497	11,298,642
Office equipment, fixtures and software	628,358	628,358
Transportation assets	265,760	265,760
Property, plant and equipment, gross	19,501,511	18,592,656
Accumulated depreciation	(12,571,182)	(11,057,558)
Property, plant and equipment, net	$ 6,930,329	$ 7,535,098

PROPERTY, PLANT AND EQUIPMENT_2

PROPERTY, PLANT AND EQUIPMENT (Details Narrative) - USD ($)	1 Months Ended		3 Months Ended	12 Months Ended
	Mar. 31, 2020	Feb. 29, 2020	Mar. 31, 2021	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Gain (loss) on disposition of property plant equipment		$ 142,000	$ 10,000
Impairment of assets	$ 30,000				$ 30,000
Depreciation expense related to property, plant and equipment				$ 1,520,201	$ 1,649,729

SCHEDULE OF INTANGIBLE ASSETS (

SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 14,900,000	$ 14,900,000
Accumulated amortization	(14,663,889)	(14,080,556)
Intangible assets, net	236,111	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

SCHEDULE OF FINITE-LIVED INTANG

SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS, FUTURE AMORTIZATION EXPENSE (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
2022	$ 166,667
2023	69,444
Intangible assets, net	$ 236,111	$ 819,444

INTANGIBLE ASSETS (Details Narr

INTANGIBLE ASSETS (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 583,333	$ 1,166,667
Finite lived intangible assets weighted average amortization period	6 years 3 months 18 days
Impairment of intangible assets	$ 0	$ 0

RELATED PARTY NOTE RECEIVABLE (

RELATED PARTY NOTE RECEIVABLE (Details Narrative) - USD ($)	Aug. 31, 2017	Dec. 31, 2021	Jul. 07, 2020
Tronco Energy Corporation [Member]
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%
Troy and Annette Meier [Member] | Tronco Note [Member]
Defined Benefit Plan Disclosure [Line Items]
Related party note receivable		$ 6,749,000
Accrued bonus after tax		707,000
Interest receivable		365,000
Prinicipal amount of note		$ 342,000

SCHEDULE OF LEASE RELATED ASSET

SCHEDULE OF LEASE RELATED ASSETS AND LIABILITIES (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020	Jan. 01, 2020
Leases [Abstract]
Operating lease assets	$ 20,518
Total lease assets	20,518	$ 99,831	$ 270,000
Current liabilities, Operating lease liability	13,716	79,313	$ 270,000
Noncurrrent liabilities, Operating lease liability	6,802	$ 20,518
Total lease liability	$ 20,518

SCHEDULE OF AGGREGATE FUTURE LE

SCHEDULE OF AGGREGATE FUTURE LEASE PAYMENTS FOR OPERATING LEASES (Details)	Dec. 31, 2021USD ($)
Leases [Abstract]
2022	$ 15,252
2023	8,052
Total undiscounted lease payments	23,304
Less: effects of discounting	(2,786)
Present value of lease payments	$ 20,518

LEASES (Details Narrative)

LEASES (Details Narrative)	12 Months Ended
	Dec. 31, 2021USD ($)
Leases [Abstract]
Lease expense	$ 48,621
Weighted average remaining lease terms	11 months 19 days
Weighted average discount rate	7.25%

SCHEDULE OF LONG-TERM DEBT INST

SCHEDULE OF LONG-TERM DEBT INSTRUMENTS (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Long term debt, Total	$ 2,452,434	$ 2,848,386
Current portion of long-term debt	(2,195,759)	(1,397,337)
Long-term debt, net	256,675	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	1,312,194	825,366
Machinery Loans [Member]
Debt Instrument [Line Items]
Long term debt, Total	357,963	466,448
Transportation Loans [Member]
Debt Instrument [Line Items]
Long term debt, Total	$ 32,277	$ 56,572

SCHEDULE OF FUTURE ANNUAL MATUR

SCHEDULE OF FUTURE ANNUAL MATURITIES OF TOTAL DEBT (Details)	Dec. 31, 2021USD ($)
Debt Disclosure [Abstract]
2022	$ 2,214,283
2023	140,967
2024	115,165
2025	3,632
Total debt	$ 2,474,047

LONG-TERM DEBT (Details Narrati

LONG-TERM DEBT (Details Narrative) - USD ($)	1 Months Ended		12 Months Ended
	Jan. 20, 2022	Dec. 31, 2014	Dec. 31, 2021	Feb. 28, 2019
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 facility, description			Even if our borrowings under the LOC are less than $1,000,000, we still pay interest as if we had borrowed $1,000,000.
Line of credit interest rate			8.85%
Management fee rate, percentage			3.60%
Accrued interest			$ 9,700
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				$ 4,300,000
Loan and Security Agreement [Member] | Austin Financial Services, Inc. [Member] | Term Loan Note [Member]
Debt Instrument [Line Items]
Long term line of credit				800,000
Outstanding line of credit			$ 333,000
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
Outstanding line of credit			$ 1,000,000
Line of credit facility, description			Amounts outstanding under the LOC 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.
Hard Rock Note [Member]
Debt Instrument [Line Items]
Payments to acquire businesses, gross		$ 12,500,000
Business combination, consideration transferred, liabilities incurred		$ 12,500,000
Notes payable			$ 750,000
Debt instrument, interest rate			8.00%
Debt instrument maturity date			Oct. 5, 2022
Interest payment			$ 104,877
Hard Rock Note [Member] | Subsequent Event [Member]
Debt Instrument [Line Items]
Interest payment	$ 17,589
Equipment Loans [Member]
Debt Instrument [Line Items]
Notes payable			357,963
Debt instrument, periodic principal payments including interest			$ 11,830
Debt instrument, maturity date, description			November 2024 and February 2025
Equipment Loans [Member] | Minimum [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate			5.90%
Equipment Loans [Member] | Maximum [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate			8.06%
Transportation Loans [Member]
Debt Instrument [Line Items]
Notes payable			$ 32,277
Debt instrument, interest rate			6.99%
Debt instrument, periodic principal payments including interest			$ 1,169
Debt instrument, maturity date, description			June 2024

SCHEDULE OF FINANCING OBLIGATIO

SCHEDULE OF FINANCING OBLIGATION (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Finance obligations for sale-leaseback transactions	$ 4,178,336
Current principal portion of finance obligation	(65,678)	$ (61,691)
Non-current portion of finance obligation	$ 4,112,658	$ 4,178,261

SCHEDULE OF AGGREGATE FUTURE _2

SCHEDULE OF AGGREGATE FUTURE LEASE PAYMENTS FOR THE FINANCE OBLIGATION (Details)	Dec. 31, 2021USD ($)
Leases [Abstract]
2022	$ 316,384
2023	321,130
2024	325,947
2025	330,836
2026	335,799
Thereafter	3,257,778
Total undiscounted lease payments	4,887,874
Residual value of the property (included in the future payments)	2,188,711
Less: effects of discounting	(2,898,249)
Present value of lease payments	$ 4,178,336

FINANCING OBLIGATION (Details N

FINANCING OBLIGATION (Details Narrative) - USD ($)	Dec. 07, 2020	Dec. 31, 2021	Dec. 31, 2020
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purchase price		$ 936,718	$ 1,167,346
Lessee finance lease description		the Company entered into a fifteen-year lease agreement
Financing obligation		$ 4,178,336
Sale Agreement [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Proceeds from financial obligation		1,622,106
Real estate debt retired		2,638,773
Financing obligation liability		$ 4,260,879
Implied interest rate		6.00%
Financing obligation residual amount		$ 2,188,710
Principal payments		61,616	$ 25,950
Financing obligation		$ 4,178,336
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 COMPONENTS OF INCOM

SCHEDULE OF COMPONENTS OF INCOME TAX BENEFIT (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Current income taxes:
Federal
State	5,964	10,481
International	104,787	104,515
Current provision for income taxes	110,751	114,996
Deferred provision (benefit) for income taxes:
Federal
State
Deferred provision (benefit) for income taxes
Provision for income taxes	$ 110,751	$ 114,996

SCHEDULE OF DEFERRED TAX ASSETS

SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
263A adjustment	$ 14,204	$ 12,133
Accrued expenses		183,282
Prepaid expenses	(27,498)	(15,458)
Stock compensation	159,315	122,191
Stock option	71,251	70,201
Amortization of intangibles	2,661,090	2,839,598
Net operating loss	3,246,413	2,898,078
Allowances	1,632,266	1,686,952
Sale-leaseback – lease liability	1,010,467	1,008,663
Others	22,181	20,102
Total non-current deferred tax assets	8,789,689	8,825,742
Depreciation on sale-leaseback fixed assets	(942,799)	(967,055)
Depreciation on fixed assets	(46,881)	(251,190)
Total non-current deferred tax liabilities	(989,680)	(1,218,245)
Net non-current deferred tax assets/liabilities	7,800,010	7,607,497
Less: Valuation Allowance	(7,800,010)	(7,607,497)
Total deferred tax assets / liabilities

SCHEDULE OF STATUTORY TAX BENEF

SCHEDULE OF STATUTORY TAX BENEFIT (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Tax benefit at federal statutory rate	$ (88,001)	$ (696,124)
State income taxes	4,712	8,280
Foreign income taxes	79,445
Permanent differences	38,458	(219,880)
Change in valuation allowance	192,512	903,335
Other adjustment/tax expense true-up		79,651
Other - State rate effect	(13,532)	(92,760)
Change in status	(125,747)	66,835
Other	22,904	65,659
Provision for income taxes	$ 110,751	$ 114,996

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Operating Loss Carryforwards [Line Items]
Income taxes paid	$ 0	$ 14,000
Net operating loss (NOL) carryforwards	$ 13,424,000
Operating loss carryforwards, description	The pre-2018 losses will begin to expire between 2035 and 2037. The post-2017 losses can be carried forward indefinitely, however, only 80% of these losses can offset taxable income.
Valuation allowance on deferred tax assets	$ 3,246,000
Accrued income tax payable, including accrued penalties	206,000	106,000
Penalties charged to income tax expense	6,000	$ 0
Pre-2018 [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss (NOL) carryforwards	10,067,000
Post-2017 [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss (NOL) carryforwards	$ 3,357,000

SCHEDULE OF SHARE-BASED COMPENS

SCHEDULE OF SHARE-BASED COMPENSATION, RESTRICTED STOCK UNITS AWARD ACTIVITY (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Restricted Stock Units, beginning balance	1,796,897	706,394
Weighted - Average Grant Date Fair Value, beginning balance	$ 0.71	$ 1.24
Number of Restricted Stock Units, Granted	1,231,541	1,544,719
Weighted - Average Grant Date Fair Value, Granted	$ 0.76	$ 0.59
Number of Restricted Stock Units, Forfeited	(10,000)	(110,000)
Weighted - Average Grant Date Fair Value, Forfeited	$ 0.59	$ 0.59
Number of Restricted Stock Units, Vested	(733,528)	(344,216)
Weighted - Average Grant Date Fair Value, Vested	$ 0.83	$ 1.29
Number of Restricted Stock Units, ending balance	2,284,910	1,796,897
Weighted - Average Grant Date Fair Value, ending balance	$ 0.70	$ 0.71

SCHEDULE OF SHARE-BASED COMPE_2

SCHEDULE OF SHARE-BASED COMPENSATION, STOCK OPTIONS, ACTIVITY (Details) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Share-based Payment Arrangement [Abstract]
Number of Stock Options outstanding at beginning of period	498,277	588,133
Weighted - Average Exercise Price, outstanding at beginning of period	$ 1.53	$ 1.50
Number of Stock Options, Granted	74,996
Weighted - Average Exercise Price, Granted	$ 0.78
Number of Stock Options, Exercised	(1,865)
Weighted - Average Exercise Price, Exercised	$ 0.86
Number of Stock Options, Expired	(172,828)	(51,971)
Weighted - Average Exercise Price, Expired	$ 1.67	$ 1.40
Number of Stock Options, Canceled or forfeited		37,885
Weighted - Average Exercise Price, Canceled or forfeited		$ 1.19
Number of Stock Options, Canceled or forfeited		(37,885)
Number of Stock Options outstanding at end of period	398,580	498,277
Weighted - Average Exercise Price, outstanding at end of period	$ 1.34	$ 1.53
Number of Stock Options, exercised at end of period	321,586	481,076
Weighted - Average Exercise Price, exercisable at end of period	$ 1.47	$ 1.55

SCHEDULE OF SHARE-BASED PAYMENT

SCHEDULE OF SHARE-BASED PAYMENT AWARD, STOCK OPTIONS, VALUATION ASSUMPTIONS (Details)	12 Months Ended
	Dec. 31, 2021
Share-based Payment Arrangement [Abstract]
Expected volatility	59.50%
Discount rate	1.25%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	2 years
Dividend yield

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details Narrative) - USD ($)	Dec. 10, 2021	Aug. 09, 2021	Aug. 07, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares outstanding to awards granted				398,580	498,277	588,133
Compensation expense recognized				$ 756,743	$ 550,573
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross				74,996
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price				$ 0.78
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted units granted				1,231,541	1,544,719
Restricted stock units vesting period				3 years
Restricted stock weighted vesting period				2 years 3 months
Unrecognized compensation expense				$ 1,603,321
Employee Stock Incentive Plan [Member] | Board of Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock reserved for issuance							1,724,128
2015 Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum aggregate number of common shares for issuance					5,576,326
Shares outstanding to awards granted				455,000
Compensation expense recognized				$ 3,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		74,996
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 0.78	$ 0.31
2015 Incentive Plan [Member] | Officers and Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights		The options vest
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage		33.30%
2015 Incentive Plan [Member] | Officers and Employees [Member] | First Anniversary [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage		33.30%
2015 Incentive Plan [Member] | Officers and Employees [Member] | Second Anniversary [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage		33.40%
2015 Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted units granted		1,231,541
Restricted stock units vesting period		3 years
Compensation expense recognized				$ 754,000	$ 545,000
2015 Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | Executive Management and Board of Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted units granted			1,544,719
Restricted stock units vesting period			3 years
2015 Incentive Plan [Member] | Board of Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional common stock approved				2,543,448

SCHEDULE OF REVENUE AND PROPERT

SCHEDULE OF REVENUE AND PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHIC LOCATION (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 13,336,149	$ 10,470,798
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	11,619,593	8,590,933
International [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 1,716,556	$ 1,879,865

SCHEDULE OF NET PROPERTY, PLANT

SCHEDULE OF NET PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHIC LOCATION (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	$ 6,930,329	$ 7,535,098
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	5,762,066	6,008,431
International [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	$ 1,168,263	$ 1,526,667