Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | May 13, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-36453 | |
Entity Registrant Name | Superior Drilling Products, Inc. | |
Entity Central Index Key | 0001600422 | |
Entity Tax Identification Number | 46-4341605 | |
Entity Incorporation, State or Country Code | UT | |
Entity Address, Address Line One | 1583 South 1700 East | |
Entity Address, City or Town | Vernal | |
Entity Address, State or Province | UT | |
Entity Address, Postal Zip Code | 84078 | |
City Area Code | 435 | |
Local Phone Number | 789-0594 | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Trading Symbol | SDPI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 28,235,001 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash | $ 2,854,093 | $ 2,822,100 |
Accounts receivable, net | 3,155,906 | 2,871,932 |
Prepaid expenses | 248,502 | 435,595 |
Inventories | 1,024,345 | 1,174,635 |
Other current assets | 55,744 | 55,159 |
Total current assets | 7,338,590 | 7,359,421 |
Property, plant and equipment, net | 7,480,390 | 6,930,329 |
Intangible assets, net | 194,444 | 236,111 |
Right of use assets | 18,873 | 20,518 |
Other noncurrent assets | 65,880 | 65,880 |
Total assets | 15,098,177 | 14,612,259 |
Current liabilities | ||
Accounts payable | 1,245,122 | 1,139,091 |
Accrued expenses | 609,991 | 467,462 |
Income tax payable | 212,878 | 206,490 |
Current portion of operating lease liability | 11,561 | 13,716 |
Current portion of financial obligation | 67,853 | 65,678 |
Current portion of long-term debt, net of discounts | 2,116,480 | 2,195,759 |
Total current liabilities | 4,263,885 | 4,088,196 |
Operating lease liability | 7,312 | 6,802 |
Long-term financial obligation, less current portion | 4,093,686 | 4,112,658 |
Long-term debt, less current portion, net of discounts | 225,396 | 256,675 |
Total liabilities | 8,590,279 | 8,464,331 |
Commitments and contingencies (Note 11) | ||
Shareholders’ equity | ||
Common stock - $0.001 par value; 100,000,000 shares authorized; 28,235,001 shares issued and outstanding, respectively | 28,235 | 28,235 |
Additional paid-in-capital | 43,281,334 | 43,071,201 |
Accumulated deficit | (36,801,671) | (36,951,508) |
Total shareholders’ equity | 6,507,898 | 6,147,928 |
Total liabilities and shareholders’ equity | $ 15,098,177 | $ 14,612,259 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
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 | 28,235,001 |
Common stock, shares outstanding | 28,235,001 | 28,235,001 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue | ||
Total Revenue | $ 4,130,164 | $ 2,424,653 |
Operating costs and expenses | ||
Cost of revenue | 1,767,903 | 1,175,593 |
Selling, general and administrative expenses | 1,646,643 | 1,515,590 |
Depreciation and amortization expense | 410,733 | 690,074 |
Total operating costs and expenses | 3,825,279 | 3,381,257 |
Operating income (loss) | 304,885 | (956,604) |
Other income (expense) | ||
Interest income | 197 | 48 |
Interest expense | (123,861) | (138,057) |
Gain (loss) on disposition of assets, net | 10,000 | |
Total other expense | (123,664) | (128,009) |
Income (loss) before income taxes | 181,221 | (1,084,613) |
Income tax expense | (31,384) | (17,180) |
Net income/(loss) | $ 149,837 | $ (1,101,793) |
Basic loss earnings per common share | $ 0.01 | $ (0.04) |
Basic weighted average common shares outstanding | 28,235,001 | 25,762,342 |
Diluted loss per common share | $ 0.01 | $ (0.04) |
Diluted weighted average common shares outstanding | 28,305,101 | 25,762,342 |
Tool Revenue [Member] | ||
Revenue | ||
Total Revenue | $ 2,769,247 | $ 1,663,763 |
Contract Services [Member] | ||
Revenue | ||
Total Revenue | $ 1,360,917 | $ 760,890 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance at Dec. 31, 2020 | $ 25,762 | $ 40,619,620 | $ (36,421,707) | $ 4,223,675 |
Beginning balance, shares at Dec. 31, 2020 | 25,762,342 | |||
Stock-based compensation expense | 167,472 | 167,472 | ||
Net income | (1,101,793) | (1,101,793) | ||
Ending balance at Mar. 31, 2021 | $ 25,762 | 40,787,092 | (37,523,500) | 3,289,354 |
Ending balance, shares at Mar. 31, 2021 | 25,762,342 | |||
Beginning balance at Dec. 31, 2021 | $ 28,235 | 43,071,201 | (36,951,508) | 6,147,928 |
Beginning balance, shares at Dec. 31, 2021 | 28,235,001 | |||
Stock-based compensation expense | 210,133 | 210,133 | ||
Net income | 149,837 | 149,837 | ||
Ending balance at Mar. 31, 2022 | $ 28,235 | $ 43,281,334 | $ (36,801,671) | $ 6,507,898 |
Ending balance, shares at Mar. 31, 2022 | 28,235,001 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash Flows From Operating Activities | ||
Net loss | $ 149,837 | $ (1,101,793) |
Adjustments to reconcile net loss to net cash from operating activities: | ||
Depreciation and amortization expense | 410,733 | 690,074 |
Stock-based compensation expense | 210,133 | 167,473 |
(Gain) loss on disposition of assets, net | (10,000) | |
Amortization of deferred loan costs | 4,631 | 4,631 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (283,974) | (256,215) |
Inventories | 150,290 | 23,925 |
Prepaid expenses and other noncurrent assets | 186,508 | (17,841) |
Accounts payable and accrued expenses | 248,560 | 688,449 |
Income tax payable | 6,388 | 16,380 |
Net Cash From Operating Activities | 1,083,106 | 205,083 |
Cash Flows From Investing Activities | ||
Purchases of property, plant and equipment | (919,127) | (74,956) |
Proceeds from sale of fixed assets | 50,000 | |
Net Cash From Investing Activities | (919,127) | (24,956) |
Cash Flows From Financing Activities | ||
Principal payments on debt | (131,978) | (135,403) |
Payments on revolving loan | (21,541) | (280,245) |
Proceeds received on revolving loan | 21,533 | 536,331 |
Net Cash From Financing Activities | (131,986) | 120,683 |
Net Change in Cash | 31,993 | 300,810 |
Cash at Beginning of Period | 2,822,100 | 1,961,441 |
Cash at End of Period | 2,854,093 | 2,262,251 |
Supplemental information: | ||
Cash paid for Interest | $ 122,157 | $ 130,363 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2022 | |
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 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 headquarters and manufacturing operations are located in Vernal, Utah. Our subsidiaries include (a) Superior Drilling Solutions, LLC (previously known as Superior Drilling Products, LLC), a Utah limited liability company (“SDS”), together with its wholly owned subsidiary Superior Design and Fabrication, LLC, a Utah limited liability company (“SDF”), (b) Extreme Technologies, LLC, a Utah limited liability company (“ET”), (c) Meier Properties Series, LLC, a Utah limited liability company (“MPS”), (d) Meier Leasing, LLC, a Utah limited liability company (“ML”), and (e) Hard Rock Solutions, LLC (“HR” or “Hard Rock”). Basis of Presentation The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the accounts of Superior Drilling Products Inc. and all of its wholly-owned subsidiaries. All significant intercompany accounts have been eliminated in consolidation. The Company does not have investments in any unconsolidated subsidiaries. Unaudited Interim Financial Presentation These unaudited interim condensed consolidated financial statements for the three months ended March 31, 2022 and 2021, and the related footnote disclosures included herein, are unaudited. However, in the opinion of management, these unaudited condensed consolidated interim financial statements have been prepared on the same basis as the audited financial statements and reflect all adjustments necessary to fairly state the results for such periods. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results of operations expected for the year ended December 31, 2022. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended December 31, 2021 and the notes thereto, which were included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission (the “SEC”). 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 9. 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, share-based compensation expense, and valuation allowances for accounts receivable, inventories, and deferred tax assets. Concentrations of Credit Risk The Company has two significant customers that represented 90 85 2,137,000 846,000 The Company had two vendors that represented 13 122,000 274,000 22 221,000 239,000 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 March 31, 2021 in connection with the classification of $ 65,720 65,720 There was no effect of the restatement to the Company’s condensed consolidated balance sheet, condensed consolidated statement of operations and condensed consolidated statement of shareholders’ equity for the quarter ended March 31, 2021. 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 and unaudited interim financial statements. The effects of the restatement on the Company’s consolidated statement of cash flows for the quarter ended March 31, 2021 are as follows: SCHEDULE OF RESTATEMENT OF CONSOLIDATED STATEMENT OF CASH FLOWS March 31, 2021 As Reported As Restated - Net cash from operating activities 139,363 205,083 - Net cash from investing activities 40,764 (24,956 ) There was no impact to net cash provided from financing activities within our consolidated statement of cash flows nor was there an impact on the net change in cash resulting from restatement. Uncertain Tax Matters The Company believes it has appropriately accrued for the expected outcome of uncertain tax matters and believes such liabilities represent a reasonable provision for taxes ultimately expected to be paid; however, these liabilities may need to be adjusted as new information becomes known and as tax examinations continue to progress, or as settlements or litigations occur. Recent Accounting Pronouncements There are no recently issued accounting pronouncements that we have not yet adopted that we believe will have a material effect on our financial statements. Income Tax Expense The Company recorded income tax expense during the quarter of $ 31,384 with income before income taxes of $ 181,221 . In the U.S. the Company has not generated a tax liability due to incurring taxable losses. |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2022 | |
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 sales. 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 91 9 86 14 Revenue disaggregated by revenue source are as follows: SCHEDULE OF REVENUE DISAGGREGATED BY REVENUE 2022 2021 Three months ended March 31, 2022 2021 Tool Revenue: Tool and product sales $ 664,300 $ 495,000 Tool rental 385,150 336,453 Other related revenue 1,719,797 832,310 Total Tool Revenue 2,769,247 1,663,763 Contract Services 1,360,917 760,890 Total Revenue $ 4,130,164 $ 2,424,653 Contract Costs We do not incur any material costs of obtaining contracts. Contract Balances Under our sales contracts, we invoice customers after our performance obligations have been satisfied, at which point payment is unconditional. Accordingly, our contracts do not give rise to contract assets or liabilities under ASC 606. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 3. INVENTORIES Inventories are comprised of the following: SCHEDULE OF INVENTORIES March 31, 2022 December 31, 2021 Raw material $ 835,614 $ 769,547 Work in progress 112,643 65,945 Finished goods 76,088 339,143 Inventories, net $ 1,024,345 $ 1,174,635 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 December 31, 2021 Land $ 880,416 $ 880,416 Buildings 4,764,441 4,764,441 Building improvements 755,039 755,039 Machinery and equipment 13,126,624 12,207,497 Office equipment, fixtures and software 628,356 628,358 Transportation assets 265,760 265,760 Property, plant and equipment, gross 20,420,636 19,501,511 Accumulated depreciation (12,940,246 ) (12,571,182 ) Property, plant and equipment, net $ 7,480,390 $ 6,930,329 The Company sold its airplane hangar for a gain of $ 10,000 Depreciation expense related to property, plant and equipment for the three months ended March 31, 2022 and 2021 was $ 369,066 398,408 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 5. INTANGIBLE ASSETS Intangible assets are comprised of the following: SCHEDULE OF INTANGIBLE ASSETS March 31, 2022 December 31, 2021 Developed technology $ 7,000,000 $ 7,000,000 Customer contracts 6,400,000 6,400,000 Trademarks 1,500,000 1,500,000 Intangible assets, gross 14,900,000 14,900,000 Accumulated amortization (14,705,556 ) (14,663,889 ) Intangible assets, net $ 194,444 $ 236,111 Amortization expense related to intangible assets for the three months ended March 31, 2022 and 2021 was $ 41,667 291,666 |
RELATED PARTY NOTE RECEIVABLE
RELATED PARTY NOTE RECEIVABLE | 3 Months Ended |
Mar. 31, 2022 | |
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 Energy Corporation 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 2 The note matures with a balloon payment of all unpaid interest and principal due on December 31, 2022 6,783,000 6,749,000 8,267,860 |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | NOTE 7. LONG-TERM DEBT Long-term debt is comprised of the following: SCHEDULE OF LONG-TERM DEBT INSTRUMENTS March 31, 2022 December 31, 2021 Hard Rock Note $ 750,000 $ 750,000 Credit Agreement 1,233,483 1,312,194 Machinery loans 329,160 357,963 Transportation loans 29,233 32,277 Long term debt, Total 2,341,876 2,452,434 Less: Current portion (2,116,480 ) (2,195,759 ) Long-term debt, net $ 225,396 $ 256,675 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 12,328.77 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 As of March 31, 2022, we had approximately $ 250,000 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. As of March 31, 2022, 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 9.10 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. 10,000 |
FINANCING OBLIGATION
FINANCING OBLIGATION | 3 Months Ended |
Mar. 31, 2022 | |
Financing Obligation | |
FINANCING OBLIGATION | NOTE 8. 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 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 4,161,539 4,178,336 The financing obligation is summarized below: SCHEDULE OF FINANCING OBLIGATION March 31, 2022 December 31, 2021 Finance obligations for sale-leaseback transactions $ 4,161,539 $ 4,178,336 Current principal portion of finance obligation (67,853 ) (65,678 ) Non-current portion of finance obligation $ 4,093,686 $ 4,112,658 |
GEOGRAPHICAL OPERATIONS INFORMA
GEOGRAPHICAL OPERATIONS INFORMATION | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
GEOGRAPHICAL OPERATIONS INFORMATION | NOTE 9. GEOGRAPHICAL OPERATIONS INFORMATION The following summarizes revenue by geographic location: SCHEDULE OF REVENUE AND PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHIC LOCATION 2022 2021 Three months ended March 31, 2022 2021 Revenue: North America $ 3,745,014 $ 2,092,200 Middle East $ 385,150 $ 332,453 Revenues $ 4,130,164 $ 2,424,653 The following summarizes net property, plant and equipment by geographic location: SCHEDULE OF NET PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHIC LOCATION March 31, 2022 December 31, 2021 Property, plant and equipment, net: North America $ 5,456,973 $ 5,762,066 Middle East 2,023,417 1,168,263 Property, plant and equipment, net $ 7,480,390 $ 6,930,329 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2022 | |
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, LLC (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 Technologies claims against 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. |
SHAREHOLDERS_ EQUITY
SHAREHOLDERS’ EQUITY | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
SHAREHOLDERS’ EQUITY | NOTE 11. SHAREHOLDERS’ EQUITY The Company is authorized to issue 100,000,000 0.001 28,235,001 The Company did not grant stock options or stock awards during the three months ended March 31, 2022 and 2021, respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 12. SUBSEQUENT EVENTS On March 22, 2022, the Company entered into an agreement with Mazak to purchase a new CNC machine for $ 956,000 286,800 669,200 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
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 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 headquarters and manufacturing operations are located in Vernal, Utah. Our subsidiaries include (a) Superior Drilling Solutions, LLC (previously known as Superior Drilling Products, LLC), a Utah limited liability company (“SDS”), together with its wholly owned subsidiary Superior Design and Fabrication, LLC, a Utah limited liability company (“SDF”), (b) Extreme Technologies, LLC, a Utah limited liability company (“ET”), (c) Meier Properties Series, LLC, a Utah limited liability company (“MPS”), (d) Meier Leasing, LLC, a Utah limited liability company (“ML”), and (e) Hard Rock Solutions, LLC (“HR” or “Hard Rock”). |
Basis of Presentation | Basis of Presentation The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the accounts of Superior Drilling Products Inc. and all of its wholly-owned subsidiaries. All significant intercompany accounts have been eliminated in consolidation. The Company does not have investments in any unconsolidated subsidiaries. |
Unaudited Interim Financial Presentation | Unaudited Interim Financial Presentation These unaudited interim condensed consolidated financial statements for the three months ended March 31, 2022 and 2021, and the related footnote disclosures included herein, are unaudited. However, in the opinion of management, these unaudited condensed consolidated interim financial statements have been prepared on the same basis as the audited financial statements and reflect all adjustments necessary to fairly state the results for such periods. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results of operations expected for the year ended December 31, 2022. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended December 31, 2021 and the notes thereto, which were included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission (the “SEC”). |
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 9. |
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, share-based compensation expense, and valuation allowances for accounts receivable, inventories, and deferred tax assets. |
Concentrations of Credit Risk | Concentrations of Credit Risk The Company has two significant customers that represented 90 85 2,137,000 846,000 The Company had two vendors that represented 13 122,000 274,000 22 221,000 239,000 |
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 March 31, 2021 in connection with the classification of $ 65,720 65,720 There was no effect of the restatement to the Company’s condensed consolidated balance sheet, condensed consolidated statement of operations and condensed consolidated statement of shareholders’ equity for the quarter ended March 31, 2021. 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 and unaudited interim financial statements. The effects of the restatement on the Company’s consolidated statement of cash flows for the quarter ended March 31, 2021 are as follows: SCHEDULE OF RESTATEMENT OF CONSOLIDATED STATEMENT OF CASH FLOWS March 31, 2021 As Reported As Restated - Net cash from operating activities 139,363 205,083 - Net cash from investing activities 40,764 (24,956 ) There was no impact to net cash provided from financing activities within our consolidated statement of cash flows nor was there an impact on the net change in cash resulting from restatement. |
Uncertain Tax Matters | Uncertain Tax Matters The Company believes it has appropriately accrued for the expected outcome of uncertain tax matters and believes such liabilities represent a reasonable provision for taxes ultimately expected to be paid; however, these liabilities may need to be adjusted as new information becomes known and as tax examinations continue to progress, or as settlements or litigations occur. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements There are no recently issued accounting pronouncements that we have not yet adopted that we believe will have a material effect on our financial statements. |
Income Tax Expense | Income Tax Expense The Company recorded income tax expense during the quarter of $ 31,384 with income before income taxes of $ 181,221 . In the U.S. the Company has not generated a tax liability due to incurring taxable losses. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
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 quarter ended March 31, 2021 are as follows: SCHEDULE OF RESTATEMENT OF CONSOLIDATED STATEMENT OF CASH FLOWS March 31, 2021 As Reported As Restated - Net cash from operating activities 139,363 205,083 - Net cash from investing activities 40,764 (24,956 ) |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 2022 2021 Three months ended March 31, 2022 2021 Tool Revenue: Tool and product sales $ 664,300 $ 495,000 Tool rental 385,150 336,453 Other related revenue 1,719,797 832,310 Total Tool Revenue 2,769,247 1,663,763 Contract Services 1,360,917 760,890 Total Revenue $ 4,130,164 $ 2,424,653 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORIES | Inventories are comprised of the following: SCHEDULE OF INVENTORIES March 31, 2022 December 31, 2021 Raw material $ 835,614 $ 769,547 Work in progress 112,643 65,945 Finished goods 76,088 339,143 Inventories, net $ 1,024,345 $ 1,174,635 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 December 31, 2021 Land $ 880,416 $ 880,416 Buildings 4,764,441 4,764,441 Building improvements 755,039 755,039 Machinery and equipment 13,126,624 12,207,497 Office equipment, fixtures and software 628,356 628,358 Transportation assets 265,760 265,760 Property, plant and equipment, gross 20,420,636 19,501,511 Accumulated depreciation (12,940,246 ) (12,571,182 ) Property, plant and equipment, net $ 7,480,390 $ 6,930,329 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF INTANGIBLE ASSETS | Intangible assets are comprised of the following: SCHEDULE OF INTANGIBLE ASSETS March 31, 2022 December 31, 2021 Developed technology $ 7,000,000 $ 7,000,000 Customer contracts 6,400,000 6,400,000 Trademarks 1,500,000 1,500,000 Intangible assets, gross 14,900,000 14,900,000 Accumulated amortization (14,705,556 ) (14,663,889 ) Intangible assets, net $ 194,444 $ 236,111 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF LONG-TERM DEBT INSTRUMENTS | Long-term debt is comprised of the following: SCHEDULE OF LONG-TERM DEBT INSTRUMENTS March 31, 2022 December 31, 2021 Hard Rock Note $ 750,000 $ 750,000 Credit Agreement 1,233,483 1,312,194 Machinery loans 329,160 357,963 Transportation loans 29,233 32,277 Long term debt, Total 2,341,876 2,452,434 Less: Current portion (2,116,480 ) (2,195,759 ) Long-term debt, net $ 225,396 $ 256,675 |
FINANCING OBLIGATION (Tables)
FINANCING OBLIGATION (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Financing Obligation | |
SCHEDULE OF FINANCING OBLIGATION | The financing obligation is summarized below: SCHEDULE OF FINANCING OBLIGATION March 31, 2022 December 31, 2021 Finance obligations for sale-leaseback transactions $ 4,161,539 $ 4,178,336 Current principal portion of finance obligation (67,853 ) (65,678 ) Non-current portion of finance obligation $ 4,093,686 $ 4,112,658 |
GEOGRAPHICAL OPERATIONS INFOR_2
GEOGRAPHICAL OPERATIONS INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 2022 2021 Three months ended March 31, 2022 2021 Revenue: North America $ 3,745,014 $ 2,092,200 Middle East $ 385,150 $ 332,453 Revenues $ 4,130,164 $ 2,424,653 |
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 March 31, 2022 December 31, 2021 Property, plant and equipment, net: North America $ 5,456,973 $ 5,762,066 Middle East 2,023,417 1,168,263 Property, plant and equipment, net $ 7,480,390 $ 6,930,329 |
SCHEDULE OF RESTATEMENT OF CONS
SCHEDULE OF RESTATEMENT OF CONSOLIDATED STATEMENT OF CASH FLOWS (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net cash from operating activities | $ 1,083,106 | $ 205,083 |
Net cash from investing activities | $ (919,127) | (24,956) |
Previously Reported [Member] | ||
Net cash from operating activities | 139,363 | |
Net cash from investing activities | $ 40,764 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Product Information [Line Items] | |||
Accounts receivable | $ 2,137,000 | $ 846,000 | |
Accounts payable current | 1,245,122 | $ 1,139,091 | |
Payment to acquire property, plant and equipment | 919,127 | 74,956 | |
Current Income Tax Expense (Benefit) | 31,384 | ||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 181,221 | (1,084,613) | |
Revision of Prior Period, Adjustment [Member] | |||
Product Information [Line Items] | |||
Inventory converted to property, plant and equipment | 65,720 | ||
Payment to acquire property, plant and equipment | 65,720 | ||
Two Vendor [Member] | |||
Product Information [Line Items] | |||
Accounts payable current | 122,000 | 221,000 | |
Purchase obligation | $ 274,000 | $ 239,000 | |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Two Customers [Member] | |||
Product Information [Line Items] | |||
Concentration risk percentage | 90.00% | 85.00% | |
Supplier Concentration Risk [Member] | Purchases [Member] | Two Vendor [Member] | |||
Product Information [Line Items] | |||
Concentration risk percentage | 13.00% | 22.00% |
SCHEDULE OF REVENUE DISAGGREGAT
SCHEDULE OF REVENUE DISAGGREGATED BY REVENUE (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 4,130,164 | $ 2,424,653 |
Tools and Product Sales [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 664,300 | 495,000 |
Tool Rental [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 385,150 | 336,453 |
Other Related Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 1,719,797 | 832,310 |
Tool Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 2,769,247 | 1,663,763 |
Contract Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 1,360,917 | $ 760,890 |
REVENUE (Details Narrative)
REVENUE (Details Narrative) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Description of payment terms | All of our contracts are less than one year in duration. We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed | |
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 91.00% | 86.00% |
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | Middle East [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 9.00% | 14.00% |
SCHEDULE OF INVENTORIES (Detail
SCHEDULE OF INVENTORIES (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw material | $ 835,614 | $ 769,547 |
Work in progress | 112,643 | 65,945 |
Finished goods | 76,088 | 339,143 |
Inventories, net | $ 1,024,345 | $ 1,174,635 |
SCHEDULE OF PROPERTY, PLANT AND
SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 880,416 | $ 880,416 |
Buildings | 4,764,441 | 4,764,441 |
Building improvements | 755,039 | 755,039 |
Machinery and equipment | 13,126,624 | 12,207,497 |
Office equipment, fixtures and software | 628,356 | 628,358 |
Transportation assets | 265,760 | 265,760 |
Property, plant and equipment, gross | 20,420,636 | 19,501,511 |
Accumulated depreciation | (12,940,246) | (12,571,182) |
Property, plant and equipment, net | $ 7,480,390 | $ 6,930,329 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | |
Feb. 28, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Gain on sale of asset | $ 10,000 | ||
Depreciation expense related to property, plant and equipment | $ 369,066 | $ 398,408 |
SCHEDULE OF INTANGIBLE ASSETS (
SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 14,900,000 | $ 14,900,000 |
Accumulated amortization | (14,705,556) | (14,663,889) |
Intangible assets, net | 194,444 | 236,111 |
Developed Technology Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 7,000,000 | 7,000,000 |
Customer Contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 6,400,000 | 6,400,000 |
Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 1,500,000 | $ 1,500,000 |
INTANGIBLE ASSETS (Details Narr
INTANGIBLE ASSETS (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 41,667 | $ 291,666 |
RELATED PARTY NOTE RECEIVABLE (
RELATED PARTY NOTE RECEIVABLE (Details Narrative) - Tronco Energy Corporation [Member] - USD ($) | Aug. 31, 2017 | Mar. 31, 2022 | Dec. 31, 2021 | Jul. 07, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Related party note receivable | $ 6,979,043 | |||
Debt instrument decrease | $ 0 | |||
Debt interest rate | 2.00% | |||
Common stock hold as collateral | 8,267,860 | |||
Tronco Note [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Related party note receivable | $ 6,783,000 | $ 6,749,000 | ||
Debt maturity description | The note matures with a balloon payment of all unpaid interest and principal due on December 31, 2022 |
SCHEDULE OF LONG-TERM DEBT INST
SCHEDULE OF LONG-TERM DEBT INSTRUMENTS (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Long term debt, Total | $ 2,341,876 | $ 2,452,434 |
Current portion | (2,116,480) | (2,195,759) |
Long-term debt, net | 225,396 | 256,675 |
Hard Rock Note [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt, Total | 750,000 | 750,000 |
Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt, Total | 1,233,483 | 1,312,194 |
Machinery Loans [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt, Total | 329,160 | 357,963 |
Transportation Loans [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt, Total | $ 29,233 | $ 32,277 |
LONG-TERM DEBT (Details Narrati
LONG-TERM DEBT (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Apr. 30, 2022 | Jan. 20, 2022 | Dec. 31, 2014 | Mar. 31, 2022 | Feb. 28, 2019 | |
Loan and Security Agreement [Member] | Term Loan and Revolving Loan [Member] | |||||
Short-Term Debt [Line Items] | |||||
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 | 9.10% | ||||
Management fee rate, percentage | 3.60% | ||||
Accrued interest | $ 10,000 | ||||
Loan and Security Agreement [Member] | Term Loan and Revolving Loan [Member] | Prime Rate [Member] | |||||
Short-Term Debt [Line Items] | |||||
Line of credit interest rate | 2.00% | ||||
Loan and Security Agreement [Member] | Austin Financial Services, Inc. [Member] | |||||
Short-Term Debt [Line Items] | |||||
Long term line of credit | $ 4,300,000 | ||||
Loan and Security Agreement [Member] | Austin Financial Services, Inc. [Member] | Term Loan Note [Member] | |||||
Short-Term Debt [Line Items] | |||||
Long term line of credit | 800,000 | ||||
Loan outstanding amountt | $ 250,000 | ||||
Loan and Security Agreement [Member] | Austin Financial Services, Inc. [Member] | Revolving Credit Facility [Member] | |||||
Short-Term Debt [Line Items] | |||||
Long term line of credit | $ 3,500,000 | ||||
Loan outstanding amountt | $ 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] | |||||
Short-Term Debt [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 | $ 17,589 | ||||
Hard Rock Note [Member] | Subsequent Event [Member] | |||||
Short-Term Debt [Line Items] | |||||
Interest payment | $ 12,328.77 |
SCHEDULE OF FINANCING OBLIGATIO
SCHEDULE OF FINANCING OBLIGATION (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Obligation | ||
Finance obligations for sale-leaseback transactions | $ 4,161,539 | $ 4,178,336 |
Current principal portion of finance obligation | (67,853) | (65,678) |
Non-current portion of finance obligation | $ 4,093,686 | $ 4,112,658 |
FINANCING OBLIGATION (Details N
FINANCING OBLIGATION (Details Narrative) - USD ($) | Dec. 07, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Purchase price | $ 919,127 | $ 74,956 | ||
Lessee finance lease description | Company entered into a fifteen-year lease agreement | |||
Financing obligation | $ 4,161,539 | $ 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 | |||
Financing obligation | $ 4,161,539 | $ 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 REVENUE AND PROPERT
SCHEDULE OF REVENUE AND PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHIC LOCATION (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 4,130,164 | $ 2,424,653 |
North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | 3,745,014 | 2,092,200 |
Middle East [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 385,150 | $ 332,453 |
SCHEDULE OF NET PROPERTY, PLANT
SCHEDULE OF NET PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHIC LOCATION (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | $ 7,480,390 | $ 6,930,329 |
North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | 5,456,973 | 5,762,066 |
Middle East [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | $ 2,023,417 | $ 1,168,263 |
SHAREHOLDERS_ EQUITY (Details N
SHAREHOLDERS’ EQUITY (Details Narrative) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Equity [Abstract] | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares issued | 28,235,001 | 28,235,001 |
Common stock, shares outstanding | 28,235,001 | 28,235,001 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | Apr. 14, 2022 | Mar. 22, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Subsequent Event [Line Items] | ||||
Purchase of machinery value | $ 7,480,390 | $ 6,930,329 | ||
Mazak [Member] | CNC Machine [Member] | ||||
Subsequent Event [Line Items] | ||||
Purchase of machinery value | $ 956,000 | |||
Payment to pruchase machine | $ 286,800 | |||
Mazak [Member] | CNC Machine [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Payment to pruchase machine | $ 669,200 |