Superior Drilling Products (SDPI) 10-Q 14 Nov 22 2022 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2022	Nov. 14, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2022
Document Fiscal Period Focus	Q3
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		29,245,080

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Current assets
Cash	$ 2,046,754	$ 2,822,100
Accounts receivable, net	4,083,645	2,871,932
Prepaid expenses	447,773	435,595
Inventories	1,623,051	1,174,635
Other current assets	774,799	55,159
Total current assets	8,976,022	7,359,421
Property, plant and equipment, net	8,427,003	6,930,329
Intangible assets, net	111,111	236,111
Right of use assets, net	688,673	20,518
Other noncurrent assets	111,519	65,880
Total assets	18,314,328	14,612,259
Current liabilities
Accounts payable	1,264,952	1,139,091
Accrued expenses	883,572	467,462
Income tax payable	264,081	206,490
Current portion of operating lease liability	45,259	13,716
Current portion of financial obligation	72,344	65,678
Current portion of long-term debt, net of discounts	2,319,727	2,195,759
Current portion of deferred income	63,281
Total current liabilities	4,913,216	4,088,196
Long-term operating lease liability	527,011	6,802
Long-term financial obligation, less current portion	4,057,537	4,112,658
Long-term debt, less current portion, net of discounts	684,038	256,675
Deferred income	611,719
Total liabilities	10,793,521	8,464,331
Commitments and contingencies (Note 10)
Shareholders’ equity
Common stock - $0.001 par value; 100,000,000 shares authorized; 29,245,080 and 28,235,001 shares issued and outstanding, respectively	29,245	28,235
Additional paid-in-capital	43,711,009	43,071,201
Accumulated deficit	(36,219,447)	(36,951,508)
Total shareholders’ equity	7,520,807	6,147,928
Total liabilities and shareholders’ equity	$ 18,314,328	$ 14,612,259

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 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	29,245,080	28,235,001
Common stock, shares issued	29,245,080	28,235,001

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenue
Total Revenue	$ 5,172,545	$ 3,561,919	$ 13,843,552	$ 9,385,680
Operating costs and expenses
Cost of revenue	2,230,705	1,441,943	6,114,705	3,841,713
Selling, general and administrative expenses	1,723,221	1,551,462	5,264,270	4,540,134
Depreciation and amortization expense	362,773	405,225	1,176,151	1,680,804
Total operating costs and expenses	4,316,699	3,398,630	12,555,126	10,062,651
Operating income (loss)	855,846	163,289	1,288,426	(676,971)
Other income (expense)
Interest income	10,544	49	13,720	147
Interest expense	(154,108)	(130,221)	(410,707)	(413,798)
Loss on disposition of assets, net	(29,381)		(51,527)	(1,187)
Total other expense	(172,945)	(130,172)	(448,514)	(414,838)
Income (loss) before income taxes	682,901	33,117	839,912	(1,091,809)
Income tax expense	(44,169)	(39,327)	(107,852)	(82,976)
Net income (loss)	$ 638,732	$ (6,210)	$ 732,060	$ (1,174,785)
Basic earnings (loss) per common share	$ 0.02	$ 0	$ 0.03	$ (0.05)
Basic weighted average common shares outstanding	28,845,456	26,154,202	28,440,722	25,894,397
Diluted earnings (loss) per common share	$ 0.02	$ 0	$ 0.03	$ (0.05)
Diluted weighted average common shares outstanding	28,855,456	26,154,202	28,450,722	25,894,397
Tool Revenue [Member]
Revenue
Total Revenue	$ 3,343,227	$ 2,346,234	$ 9,004,055	$ 6,283,461
Contract Services [Member]
Revenue
Total Revenue	$ 1,829,318	$ 1,215,685	$ 4,839,497	$ 3,102,219

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 (loss)			(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, 2020	$ 25,762	40,619,620	(36,421,707)	4,223,675
Beginning balance, shares at Dec. 31, 2020	25,762,342
Net income (loss)				(1,174,785)
Ending balance at Sep. 30, 2021	$ 26,430	41,149,551	(37,596,492)	3,579,489
Ending balance, shares at Sep. 30, 2021	26,429,955
Beginning balance at Mar. 31, 2021	$ 25,762	40,787,092	(37,523,500)	3,289,354
Beginning balance, shares at Mar. 31, 2021	25,762,342
Stock-based compensation expense		167,033		167,033
Net income (loss)			(66,781)	(66,781)
Ending balance at Jun. 30, 2021	$ 25,763	40,954,125	(37,590,281)	3,389,606
Ending balance, shares at Jun. 30, 2021	25,762,342
Stock-based compensation expense	$ 667	195,426		196,093
Net income (loss)			(6,210)	(6,210)
Stock-based compensation expense, shares	667,613
Ending balance at Sep. 30, 2021	$ 26,430	41,149,551	(37,596,492)	3,579,489
Ending balance, shares at Sep. 30, 2021	26,429,955
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 (loss)			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
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
Net income (loss)				732,060
Ending balance at Sep. 30, 2022	$ 29,245	43,711,009	(36,219,447)	7,520,807
Ending balance, shares at Sep. 30, 2022	29,245,080
Beginning balance at Mar. 31, 2022	$ 28,235	43,281,334	(36,801,671)	6,507,898
Beginning balance, shares at Mar. 31, 2022	28,235,001
Stock-based compensation expense		212,468		212,468
Net income (loss)			(56,508)	(56,508)
Ending balance at Jun. 30, 2022	$ 28,235	43,493,802	(36,858,179)	6,663,858
Ending balance, shares at Jun. 30, 2022	28,235,001
Stock-based compensation expense	$ 1,010	217,207		218,217
Net income (loss)			638,732	638,732
Stock-based compensation expense, shares	1,010,079
Ending balance at Sep. 30, 2022	$ 29,245	$ 43,711,009	$ (36,219,447)	$ 7,520,807
Ending balance, shares at Sep. 30, 2022	29,245,080

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash Flows From Operating Activities
Net income (loss)	$ 732,060	$ (1,174,785)
Adjustments to reconcile income (loss) to net cash from operating activities:
Depreciation and amortization expense	1,176,151	1,680,804
Stock-based compensation expense	640,816	530,595
Loss on disposition of assets, net	51,527	1,187
Amortization of deferred loan costs	13,893	13,893
Changes in operating assets and liabilities:
Accounts receivable	(1,211,713)	(700,451)
Inventories	(446,866)	(37,631)
Prepaid expenses and other assets	(777,457)	(161,564)
Accounts payable, accrued expenses, and other liabilities	1,100,571	1,168,317
Income tax payable	57,591	71,376
Net Cash From Operating Activities	1,336,573	1,391,741
Cash Flows From Investing Activities
Purchases of property, plant and equipment	(2,600,902)	(589,099)
Proceeds from sale of fixed assets		50,000
Net Cash From Investing Activities	(2,600,902)	(539,099)
Cash Flows From Financing Activities
Principal payments on debt	(508,146)	(1,146,309)
Proceeds received from debt borrowings	997,134
Payments on revolving loan	(633,440)	(540,078)
Proceeds received on revolving loan	633,435	1,341,702
Net Cash From Financing Activities	488,983	(344,685)
Net Change in Cash	(775,346)	507,957
Cash at Beginning of Period	2,822,100	1,961,441
Cash at End of Period	2,046,754	2,469,398
Supplemental information:
Cash paid for Interest	394,548	410,492
Non-Cash item related to deferred income	675,000
Right of use assets obtained in exchange for lease obligations	$ 749,718

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 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 consolidated condensed financial statements for the three and nine months ended September 30, 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 and nine months ended September 30, 2022 are not necessarily indicative of the results of operations expected for the year ended December 31, 2022. These unaudited interim consolidated condensed financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the years ended December 31, 2021 and 2020 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 Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant items subject to estimates and assumptions include the carrying amount and useful lives of property and equipment and intangible assets, impairment assessments, share-based compensation expense, and valuation allowances for accounts receivable, inventories, and deferred tax assets. Concentrations of Credit Risk The Company has two significant customers that represented 89 86 2,741,000 1,081,000 The Company had two vendors that represented 12 0 966,000 12 176,000 546,000 Restatement of the Unaudited Condensed Consolidated Financial Statements The purpose of this restatement is to correct an error in the Company’s previously issued financial statements for the nine months ended September 30, 2021 in connection with the classification of $ 513,558 513,558 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 condensed consolidated statement of cash flows for the nine months ended September 30, 2021 are as follows: SCHEDULE OF RESTATEMENT OF CONSOLIDATED STATEMENT OF CASH FLOWS September 30, 2021 As Reported As Restated - Net cash from operating activities $ 878,183 $ 1,391,741 - Net cash from investing activities $ (25,541 ) $ (539,099 ) 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. There was no effect from the restatement on the Company’s condensed consolidated balance sheet, condensed consolidated statement of operations and condensed consolidated statement of shareholders’ equity for the nine months ended September 30, 2021. 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 nine months ended September 30, 2022 and 2021 of $ 107,852 82,976 839,912 1,091,809 Accounting for Grant Received The Company applied for and received grant award of up to $ 750,000 from the State of Utah’s Manufacturing Modernization Grant Program. The program helps develop manufacturing industry in the state. Current GAAP has no specific authoritative guidance on the accounting for government assistance received by business entities. However, Accounting Standard Codification (“ASC”) 105 describes the decision-making framework for determining the guidance to apply when guidance is not specified by GAAP. ASC 105 points to IAS 20, Accounting for Government Grants and Disclosure of Government Assistance, and ASC 958-605, Not-for-Profit Entities - Revenue Recognition, that require conditions of the grant to be met in order to recognize the income. During 2022, the Company met the conditions of the grant by purchasing additional manufacturing equipment. The Company recorded the initial grant funding totaling $ 675,000

REVENUE

REVENUE	9 Months Ended
	Sep. 30, 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. Disaggregation of Revenue Approximately 89 11 Revenue disaggregated by revenue source are as follows: SCHEDULE OF REVENUE DISAGGREGATED BY REVENUE Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Tool Revenue: Tool and product sales $ 892,300 $ 315,000 $ 2,183,800 $ 1,470,000 Tool rental 549,931 521,228 1,454,806 1,318,135 Other related revenue 1,900,996 1,510,006 5,365,449 3,495,326 Total Tool Revenue 3,343,227 2,346,234 9,004,055 6,283,461 Contract Services 1,829,318 1,215,685 4,839,497 3,102,219 Total Revenue $ 5,172,545 $ 3,561,919 $ 13,843,552 $ 9,385,680 Contract Costs We do not incur any material costs of obtaining contracts. Contract Balances Under our sales contracts, we invoice customers after our performance obligations have been satisfied, at which point payment is unconditional. Accordingly, our contracts do not give rise to contract assets or liabilities under Topic 606.

INVENTORIES

INVENTORIES	9 Months Ended
	Sep. 30, 2022
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 3. INVENTORIES Inventories are comprised of the following: SCHEDULE OF INVENTORIES September 30, 2022 December 31, 2021 Raw material $ 1,171,346 $ 769,547 Work in progress 73,861 65,945 Finished goods 377,844 339,143 Inventories, net $ 1,623,051 $ 1,174,635

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	9 Months Ended
	Sep. 30, 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 September 30, 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 14,267,498 12,207,497 Office equipment, fixtures and software 628,358 628,358 Transportation assets 265,760 265,760 Property, plant and equipment, gross 21,561,512 19,501,511 Accumulated depreciation (13,134,509 ) (12,571,182 ) Property, plant and equipment, net $ 8,427,003 $ 6,930,329 Depreciation expense related to property, plant and equipment for the three months ended September 30, 2022 and 2021 was $ 321,106 363,558 1,051,151 1,139,137 The Company purchased a Computerized Numerical Control (CNC) machining center in 2022. The value of the machine is approximately $ 1,100,000 . The Company has also contracted and issued a deposit to purchase a second CNC machining center.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	9 Months Ended
	Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	NOTE 5. INTANGIBLE ASSETS Intangible assets are comprised of the following: SCHEDULE OF INTANGIBLE ASSETS September 30, 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 (14,788,889 ) (14,663,889 ) Intangible assets, net $ 111,111 $ 236,111 Amortization expense related to intangible assets for the three months ended September 30, 2022 and 2021 was $ 41,667 41,667 125,000 541,667

RELATED PARTY NOTE RECEIVABLE

RELATED PARTY NOTE RECEIVABLE	9 Months Ended
	Sep. 30, 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 , which reduced the related party note receivable balance to $ 0 . The Company will record a recovery of the loan upon receiving repayment of the note or interest in other income. On July 7, 2020, the Company entered into an amended and restated loan agreement and note with Tronco changing the payment terms on the note. As amended, the interest rate on the note is fixed at 2 % per annum. All unpaid interest and principal is due on December 31, 2022, the maturity date, and the Company is actively negotiating new terms for the Tronco note with the Meiers. The Tronco note balance, including accrued interest, as of September 30, 2022 was approximately $ 6,850,000 and as of December 31, 2021 was approximately $ 6,749,000 . The Company continues to hold 8,267,860 shares of the Company’s stock as collateral.

LONG-TERM DEBT

LONG-TERM DEBT	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
LONG-TERM DEBT	NOTE 7. LONG-TERM DEBT Debt obligations are comprised of the following: SCHEDULE OF DEBT OBLIGATIONS September 30, 2022 December 31, 2021 Hard Rock Note $ 750,000 $ 750,000 Credit Agreement 1,076,081 1,312,194 Machinery loans 919,835 357,963 Transportation loans 23,149 32,277 Insurance financing 234,700 - Long term debt, Total 3,003,765 2,452,434 Less: Current portion, long-term debt (2,319,727 ) (2,195,759 ) Long-term debt, net $ 684,038 $ 256,675 A new CNC machining center was purchased and a loan of $ 669,000 60 5.5 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 had a remaining balance of $ 750,000 8.00 October 17, 2022 Credit Agreement In February 2019, the Company entered into a Loan and Security Agreement (the “Credit Agreement”) with Austin Financial Services, Inc. (“AFS”). The Credit Agreement provides a $ 4,500,000 1,000,000 3,500,000 As of September 30, 2022, we had approximately $ 83,000 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 September 30, 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 11.85 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. 7,000

FINANCIAL OBLIGATION

FINANCIAL OBLIGATION	9 Months Ended
	Sep. 30, 2022
Financial Obligation
FINANCIAL OBLIGATION	NOTE 8. FINANCIAL 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 (the “Lease Agreement”), whereby the Company will lease back the Property at an annual rate of $ 311,395 1.5 Leases As a result of the agreement, the Company received cash of $ 1,622,106 2,638,773 4,260,879 6.0 2,188,710 4,129,881 4,178,336 The financing obligation is summarized below: SCHEDULE OF FINANCING OBLIGATION September 30, 2022 December 31, 2021 Finance obligations for sale-leaseback transactions $ 4,129,881 $ 4,178,336 Current principal portion of finance obligation (72,344 ) (65,678 ) Non-current portion of finance obligation $ 4,057,537 $ 4,112,658

GEOGRAPHICAL OPERATIONS INFORMA

GEOGRAPHICAL OPERATIONS INFORMATION	9 Months Ended
	Sep. 30, 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 Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Revenue: North America $ 4,622,614 $ 3,040,691 $ 12,388,746 $ 8,073,945 Middle East $ 549,931 $ 521,228 $ 1,454,806 $ 1,311,735 Revenues $ 5,172,545 $ 3,561,919 $ 13,843,552 $ 9,385,680 The following summarizes net property, plant and equipment by geographic location: SCHEDULE OF NET PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHIC LOCATION September 30, 2022 December 31, 2021 Property, plant and equipment, net: North America $ 6,435,672 $ 5,762,066 Middle East 1,991,331 1,168,263 Property, plant and equipment, net $ 8,427,003 $ 6,930,329

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 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. On May 23, 2022, the Court issued its Order on Claim Construction of the patents, adopting Extreme Technologies’ proffered interpretation on the disputed claim terms. The parties are preparing this case for trial and expect a jury trial setting in mid-2023.

SHAREHOLDERS_ EQUITY

SHAREHOLDERS’ EQUITY	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
SHAREHOLDERS’ EQUITY	NOTE 11. SHAREHOLDERS’ EQUITY On August 12, 2022, the Board of Directors granted 475,000 425,000 300,000 75,000 1.00 75,000

LEASES

LEASES	9 Months Ended
	Sep. 30, 2022
Leases
LEASES	NOTE 12. LEASES During the nine months ended September 30, 2022, the Company entered into three operating leases and recorded the transactions in accordance with ASC 842 (Topic 842) – Leases, which requires assets and liabilities that arise from all leases to be recognized on the balance sheet for lessees. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and the lease liability represents the Company’s obligation to make lease payments arising from the lease, both of which are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company utilizes an estimate of its incremental borrowing rate to discount the lease payments, which reflects the fixed rate at which the Company believes it could borrow on a collateralized basis the amount of the lease payments in the same currency, for a similar term, in a similar economic environment. The Company recorded right-of-use asset balance of $ 688,673 as of September 30, 2022. The current portion of the lease liability is $ 45,259 and the long-term portion of the lease liability is $ 527,011 as of September 30, 2022. The weighted average remaining lease term is 1.83 years, and the weighted average discount rate is 7.25 %. The aggregate future minimum lease payments by year: SCHEDULE OF AGGREGATE FUTURE LEASE PAYMENTS 2022 $ 16,800 2023 243,794 2024 243,794 2025 60,000 2026 60,000 2027 40,000 Total 664,388 Less: discount (92,118 ) Present value of lease payments $ 572,270

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 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 consolidated condensed financial statements for the three and nine months ended September 30, 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 and nine months ended September 30, 2022 are not necessarily indicative of the results of operations expected for the year ended December 31, 2022. These unaudited interim consolidated condensed financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the years ended December 31, 2021 and 2020 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
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant items subject to estimates and assumptions include the carrying amount and useful lives of property and equipment and intangible assets, impairment assessments, share-based compensation expense, and valuation allowances for accounts receivable, inventories, and deferred tax assets.
Concentrations of Credit Risk	Concentrations of Credit Risk The Company has two significant customers that represented 89 86 2,741,000 1,081,000 The Company had two vendors that represented 12 0 966,000 12 176,000 546,000
Restatement of the Unaudited Condensed Consolidated Financial Statements	Restatement of the Unaudited Condensed Consolidated Financial Statements The purpose of this restatement is to correct an error in the Company’s previously issued financial statements for the nine months ended September 30, 2021 in connection with the classification of $ 513,558 513,558 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 condensed consolidated statement of cash flows for the nine months ended September 30, 2021 are as follows: SCHEDULE OF RESTATEMENT OF CONSOLIDATED STATEMENT OF CASH FLOWS September 30, 2021 As Reported As Restated - Net cash from operating activities $ 878,183 $ 1,391,741 - Net cash from investing activities $ (25,541 ) $ (539,099 ) 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. There was no effect from the restatement on the Company’s condensed consolidated balance sheet, condensed consolidated statement of operations and condensed consolidated statement of shareholders’ equity for the nine months ended September 30, 2021.
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 nine months ended September 30, 2022 and 2021 of $ 107,852 82,976 839,912 1,091,809
Accounting for Grant Received	Accounting for Grant Received The Company applied for and received grant award of up to $ 750,000 from the State of Utah’s Manufacturing Modernization Grant Program. The program helps develop manufacturing industry in the state. Current GAAP has no specific authoritative guidance on the accounting for government assistance received by business entities. However, Accounting Standard Codification (“ASC”) 105 describes the decision-making framework for determining the guidance to apply when guidance is not specified by GAAP. ASC 105 points to IAS 20, Accounting for Government Grants and Disclosure of Government Assistance, and ASC 958-605, Not-for-Profit Entities - Revenue Recognition, that require conditions of the grant to be met in order to recognize the income. During 2022, the Company met the conditions of the grant by purchasing additional manufacturing equipment. The Company recorded the initial grant funding totaling $ 675,000

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
SCHEDULE OF RESTATEMENT OF CONSOLIDATED STATEMENT OF CASH FLOWS	The effects of the restatement on the Company’s condensed consolidated statement of cash flows for the nine months ended September 30, 2021 are as follows: SCHEDULE OF RESTATEMENT OF CONSOLIDATED STATEMENT OF CASH FLOWS September 30, 2021 As Reported As Restated - Net cash from operating activities $ 878,183 $ 1,391,741 - Net cash from investing activities $ (25,541 ) $ (539,099 )

REVENUE (Tables)

REVENUE (Tables)	9 Months Ended
	Sep. 30, 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 Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Tool Revenue: Tool and product sales $ 892,300 $ 315,000 $ 2,183,800 $ 1,470,000 Tool rental 549,931 521,228 1,454,806 1,318,135 Other related revenue 1,900,996 1,510,006 5,365,449 3,495,326 Total Tool Revenue 3,343,227 2,346,234 9,004,055 6,283,461 Contract Services 1,829,318 1,215,685 4,839,497 3,102,219 Total Revenue $ 5,172,545 $ 3,561,919 $ 13,843,552 $ 9,385,680

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Sep. 30, 2022
Inventory Disclosure [Abstract]
SCHEDULE OF INVENTORIES	Inventories are comprised of the following: SCHEDULE OF INVENTORIES September 30, 2022 December 31, 2021 Raw material $ 1,171,346 $ 769,547 Work in progress 73,861 65,945 Finished goods 377,844 339,143 Inventories, net $ 1,623,051 $ 1,174,635

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 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 14,267,498 12,207,497 Office equipment, fixtures and software 628,358 628,358 Transportation assets 265,760 265,760 Property, plant and equipment, gross 21,561,512 19,501,511 Accumulated depreciation (13,134,509 ) (12,571,182 ) Property, plant and equipment, net $ 8,427,003 $ 6,930,329

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
SCHEDULE OF INTANGIBLE ASSETS	Intangible assets are comprised of the following: SCHEDULE OF INTANGIBLE ASSETS September 30, 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 (14,788,889 ) (14,663,889 ) Intangible assets, net $ 111,111 $ 236,111

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
SCHEDULE OF DEBT OBLIGATIONS	Debt obligations are comprised of the following: SCHEDULE OF DEBT OBLIGATIONS September 30, 2022 December 31, 2021 Hard Rock Note $ 750,000 $ 750,000 Credit Agreement 1,076,081 1,312,194 Machinery loans 919,835 357,963 Transportation loans 23,149 32,277 Insurance financing 234,700 - Long term debt, Total 3,003,765 2,452,434 Less: Current portion, long-term debt (2,319,727 ) (2,195,759 ) Long-term debt, net $ 684,038 $ 256,675

FINANCIAL OBLIGATION (Tables)

FINANCIAL OBLIGATION (Tables)	9 Months Ended
	Sep. 30, 2022
Financial Obligation
SCHEDULE OF FINANCING OBLIGATION	The financing obligation is summarized below: SCHEDULE OF FINANCING OBLIGATION September 30, 2022 December 31, 2021 Finance obligations for sale-leaseback transactions $ 4,129,881 $ 4,178,336 Current principal portion of finance obligation (72,344 ) (65,678 ) Non-current portion of finance obligation $ 4,057,537 $ 4,112,658

GEOGRAPHICAL OPERATIONS INFOR_2

GEOGRAPHICAL OPERATIONS INFORMATION (Tables)	9 Months Ended
	Sep. 30, 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 Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Revenue: North America $ 4,622,614 $ 3,040,691 $ 12,388,746 $ 8,073,945 Middle East $ 549,931 $ 521,228 $ 1,454,806 $ 1,311,735 Revenues $ 5,172,545 $ 3,561,919 $ 13,843,552 $ 9,385,680
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 September 30, 2022 December 31, 2021 Property, plant and equipment, net: North America $ 6,435,672 $ 5,762,066 Middle East 1,991,331 1,168,263 Property, plant and equipment, net $ 8,427,003 $ 6,930,329

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Sep. 30, 2022
Leases
SCHEDULE OF AGGREGATE FUTURE LEASE PAYMENTS	The aggregate future minimum lease payments by year: SCHEDULE OF AGGREGATE FUTURE LEASE PAYMENTS 2022 $ 16,800 2023 243,794 2024 243,794 2025 60,000 2026 60,000 2027 40,000 Total 664,388 Less: discount (92,118 ) Present value of lease payments $ 572,270

SCHEDULE OF RESTATEMENT OF CONS

SCHEDULE OF RESTATEMENT OF CONSOLIDATED STATEMENT OF CASH FLOWS (Details) - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Net cash from operating activities	$ 1,336,573	$ 1,391,741
Net cash from investing activities	$ (2,600,902)	(539,099)
Previously Reported [Member]
Net cash from operating activities		878,183
Net cash from investing activities		$ (25,541)

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) Segment	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Product Information [Line Items]
Number of operating segment | Segment			1
Accounts receivable	$ 2,741,000	$ 1,081,000	$ 2,741,000	$ 1,081,000
Accounts payable current	1,264,952		1,264,952		$ 1,139,091
Payment to acquire property, plant and equipment			2,600,902	589,099
Income tax expense	44,169	39,327	107,852	82,976
Income (loss) before income taxes	682,901	33,117	839,912	(1,091,809)
Income (loss) before income taxes	(682,901)	(33,117)	(839,912)	1,091,809
Deferred income	675,000		675,000
Manufacturing Modernization Grant Program [Member]
Product Information [Line Items]
Proceeds from Grantors			750,000
Revision of Prior Period, Adjustment [Member]
Product Information [Line Items]
Inventory converted to property, plant and equipment				513,558
Payment to acquire property, plant and equipment				513,558
Two Vendors [Member]
Product Information [Line Items]
Accounts payable current	0	176,000	0	176,000
Purchase obligation	$ 966,000	$ 546,000	$ 966,000	$ 546,000
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Two Customers [Member]
Product Information [Line Items]
Concentration risk percentage			89%	86%
Supplier Concentration Risk [Member] | Purchases [Member] | Two Vendors [Member]
Product Information [Line Items]
Concentration risk percentage			12%	12%

SCHEDULE OF REVENUE DISAGGREGAT

SCHEDULE OF REVENUE DISAGGREGATED BY REVENUE (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Disaggregation of Revenue [Line Items]
Total Revenue	$ 5,172,545	$ 3,561,919	$ 13,843,552	$ 9,385,680
Tools And Product Sales [Member]
Disaggregation of Revenue [Line Items]
Total Revenue	892,300	315,000	2,183,800	1,470,000
Tool Rental [Member]
Disaggregation of Revenue [Line Items]
Total Revenue	549,931	521,228	1,454,806	1,318,135
Other Related Tool Revenue [Member]
Disaggregation of Revenue [Line Items]
Total Revenue	1,900,996	1,510,006	5,365,449	3,495,326
Tool Revenue [Member]
Disaggregation of Revenue [Line Items]
Total Revenue	3,343,227	2,346,234	9,004,055	6,283,461
Contract Services [Member]
Disaggregation of Revenue [Line Items]
Total Revenue	$ 1,829,318	$ 1,215,685	$ 4,839,497	$ 3,102,219

REVENUE (Details Narrative)

REVENUE (Details Narrative) - Revenue Benchmark [Member] - Geographic Concentration Risk [Member]	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022
North America [Member]
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	89%	89%
Middle East [Member]
Disaggregation of Revenue [Line Items]
Concentration Risk, Percentage	11%	11%

SCHEDULE OF INVENTORIES (Detail

SCHEDULE OF INVENTORIES (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw material	$ 1,171,346	$ 769,547
Work in progress	73,861	65,945
Finished goods	377,844	339,143
Inventories, net	$ 1,623,051	$ 1,174,635

SCHEDULE OF PROPERTY, PLANT AND

SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($)	Sep. 30, 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	14,267,498	12,207,497
Office equipment, fixtures and software	628,358	628,358
Transportation assets	265,760	265,760
Property, plant and equipment, gross	21,561,512	19,501,511
Accumulated depreciation	(13,134,509)	(12,571,182)
Property, plant and equipment, net	$ 8,427,003	$ 6,930,329

PROPERTY, PLANT AND EQUIPMENT_2

PROPERTY, PLANT AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Depreciation expense related to property, plant and equipment	$ 321,106	$ 363,558	$ 1,051,151	$ 1,139,137
Machinery and Equipment, Gross	14,267,498		14,267,498		$ 12,207,497
Computerized Numerical Control [Member]
Machinery and Equipment, Gross	$ 1,100,000		$ 1,100,000

SCHEDULE OF INTANGIBLE ASSETS (

SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 14,900,000	$ 14,900,000
Accumulated amortization	(14,788,889)	(14,663,889)
Intangible assets, net	111,111	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		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 41,667	$ 41,667	$ 125,000	$ 541,667

RELATED PARTY NOTE RECEIVABLE (

RELATED PARTY NOTE RECEIVABLE (Details Narrative) - Tronco Energy Corporation [Member] - USD ($)	Aug. 31, 2017	Sep. 30, 2022	Dec. 31, 2021	Jul. 07, 2020
Defined Benefit Plan Disclosure [Line Items]
Notes Receivable, Related Parties	$ 6,979,043
Debt Instrument, Increase (Decrease), Net	$ 0
Debt Instrument, Interest Rate, Stated Percentage				2%
[custom:CommonStockHoldAsCollateral-0]	8,267,860
Tronco Note [Member]
Defined Benefit Plan Disclosure [Line Items]
Notes Receivable, Related Parties		$ 6,850,000	$ 6,749,000

SCHEDULE OF DEBT OBLIGATIONS (D

SCHEDULE OF DEBT OBLIGATIONS (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Long term debt, Total	$ 3,003,765	$ 2,452,434
Current portion, long-term debt	(2,319,727)	(2,195,759)
Long-term debt, net	684,038	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	1,076,081	1,312,194
Machinery Loans [Member]
Debt Instrument [Line Items]
Long term debt, Total	919,835	357,963
Transportation Loans [Member]
Debt Instrument [Line Items]
Long term debt, Total	23,149	32,277
Insurance Financing [Member]
Debt Instrument [Line Items]
Long term debt, Total	$ 234,700

LONG-TERM DEBT (Details Narrati

LONG-TERM DEBT (Details Narrative) - USD ($)	1 Months Ended	9 Months Ended
	Dec. 31, 2014	Sep. 30, 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		11.85%
Management fee rate, percentage		3.60%
Accrued interest		$ 7,000
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%
Loan and Security Agreement [Member] | Austin Financial Services, Inc. [Member]
Short-Term Debt [Line Items]
Long term line of credit			$ 4,500,000
Loan and Security Agreement [Member] | Austin Financial Services, Inc. [Member] | Term Loan Note [Member]
Short-Term Debt [Line Items]
Long term line of credit			1,000,000
Loan outstanding amountt		$ 83,000
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%
Debt instrument maturity date		Oct. 17, 2022
Computerized Numerical Control [Member]
Short-Term Debt [Line Items]
Loans receivable		$ 669,000
Loans term		60 months
Loans interest rate		5.50%

SCHEDULE OF FINANCING OBLIGATIO

SCHEDULE OF FINANCING OBLIGATION (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Financial Obligation
Finance obligations for sale-leaseback transactions	$ 4,129,881	$ 4,178,336
Current principal portion of finance obligation	(72,344)	(65,678)
Non-current portion of finance obligation	$ 4,057,537	$ 4,112,658

FINANCIAL OBLIGATION (Details N

FINANCIAL OBLIGATION (Details Narrative) - USD ($)		9 Months Ended
	Dec. 07, 2020	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purchase price		$ 2,600,902	$ 589,099
Lessee finance lease description		the Company entered into a fifteen-year lease agreement (the “Lease Agreement”), whereby the Company will lease back the Property at an annual rate of $311,395 with payments made monthly, subject to annual rent increases of 1.5%
Financing obligation		$ 4,129,881		$ 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%
Financing obligation residual amount		$ 2,188,710
Financing obligation		$ 4,129,881		$ 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		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 5,172,545	$ 3,561,919	$ 13,843,552	$ 9,385,680
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	4,622,614	3,040,691	12,388,746	8,073,945
Middle East [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 549,931	$ 521,228	$ 1,454,806	$ 1,311,735

SCHEDULE OF NET PROPERTY, PLANT

SCHEDULE OF NET PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHIC LOCATION (Details) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	$ 8,427,003	$ 6,930,329
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	6,435,672	5,762,066
Middle East [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, plant and equipment, net	$ 1,991,331	$ 1,168,263

SHAREHOLDERS_ EQUITY (Details N

SHAREHOLDERS’ EQUITY (Details Narrative)	Aug. 12, 2022 $ / shares shares
Share-Based Payment Arrangement, Employee [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock options authorized	75,000
Restricted Stock Units (RSUs) [Member] | Troy Meier [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock units granted	475,000
Restricted Stock Units (RSUs) [Member] | Annette Meier [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock units granted	425,000
Restricted Stock Units (RSUs) [Member] | Chris Cashion [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock units granted	300,000
Restricted Stock Units (RSUs) [Member] | Independent Member One [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock units granted	75,000
Restricted Stock Units (RSUs) [Member] | Independent Member Two [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock units granted	75,000
Restricted Stock Units (RSUs) [Member] | Independent Member Three [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock units granted	75,000
Stock units granted | $ / shares	$ 1

SCHEDULE OF AGGREGATE FUTURE LE

SCHEDULE OF AGGREGATE FUTURE LEASE PAYMENTS (Details)	Sep. 30, 2022 USD ($)
Leases
2022	$ 16,800
2024	243,794
2025	60,000
2026	60,000
2027	40,000
Total	664,388
Less: discount	(92,118)
Present value of lease payments	$ 572,270

LEASES (Details Narrative)

LEASES (Details Narrative) - USD ($)	Sep. 30, 2022	Dec. 31, 2021
Leases
Operating Lease, Right-of-Use Asset	$ 688,673	$ 20,518
Operating Lease, Liability, Current	45,259	13,716
Operating Lease, Liability, Noncurrent	$ 527,011	$ 6,802
Operating Lease, Weighted Average Remaining Lease Term	1 year 9 months 29 days
Operating Lease, Weighted Average Discount Rate, Percent	7.25%