Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | May 05, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
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, $0.001 par value | |
Trading Symbol | SDPI | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 29,245,080 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash | $ 1,955,903 | $ 2,158,025 |
Accounts receivable | 3,959,754 | 3,241,221 |
Prepaid expenses | 356,696 | 367,823 |
Inventories | 2,248,861 | 2,081,260 |
Asset held for sale | 216,000 | |
Other current assets | 152,219 | 140,238 |
Total current assets | 8,673,433 | 8,204,567 |
Property, plant and equipment, net | 10,241,092 | 8,576,851 |
Intangible assets, net | 27,778 | 69,444 |
Right of use assets | 606,323 | 638,102 |
Other noncurrent assets | 112,619 | 111,519 |
Total assets | 19,661,245 | 17,600,483 |
Current liabilities | ||
Accounts payable | 1,664,491 | 1,043,581 |
Accrued expenses | 782,054 | 891,793 |
Income tax payable | 427,165 | 351,618 |
Current portion of operating lease liability | 51,182 | 44,273 |
Current portion of financial obligation | 76,406 | 74,636 |
Current portion of long-term debt, net of discounts | 1,157,879 | 1,125,864 |
Other current liabilities | 216,000 | |
Total current liabilities | 4,159,177 | 3,747,765 |
Operating lease liability, less current portion | 493,296 | 523,375 |
Long-term financial obligation, less current portion | 4,017,280 | 4,038,022 |
Long-term debt, less current portion, net of discounts | 489,303 | 529,499 |
Deferred income | 675,000 | 675,000 |
Total liabilities | 9,834,056 | 9,513,661 |
Shareholders’ equity | ||
Common stock - $0.001 par value; 100,000,000 shares authorized; 29,245,080 shares issued and outstanding | 29,245 | 29,245 |
Additional paid-in-capital | 44,171,076 | 43,943,928 |
Accumulated deficit | (34,373,132) | (35,886,351) |
Total shareholders’ equity | 9,827,189 | 8,086,822 |
Total liabilities and shareholders’ equity | $ 19,661,245 | $ 17,600,483 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
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 | 29,245,080 |
Common stock, shares outstanding | 29,245,080 | 29,245,080 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Revenue | $ 6,281,214 | $ 4,130,164 |
Operating cost and expenses | ||
Cost of revenue | 2,238,597 | 1,767,903 |
Selling, general, and administrative expenses | 2,338,841 | 1,646,643 |
Depreciation and amortization expense | 326,014 | 410,733 |
Total operating cost and expenses | 4,903,452 | 3,825,279 |
Operating income | 1,377,762 | 304,885 |
Other income (expense) | ||
Interest income | 16,898 | 197 |
Interest expense | (154,091) | (123,861) |
Recovery of related party note receivable | 350,262 | |
Total other income (expense) | 213,069 | (123,664) |
Income before income taxes | 1,590,831 | 181,221 |
Income tax expense | (77,612) | (31,384) |
Net income | $ 1,513,219 | $ 149,837 |
Earnings per common share - basic | $ 0.05 | $ 0.01 |
Weighted average common shares outstanding - basic | 29,245,080 | 28,235,001 |
Earnings per common share - diluted | $ 0.05 | $ 0.01 |
Weighted average common shares outstanding - diluted | 29,305,216 | 28,305,101 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash Flows from Operating Activities | ||
Net income | $ 1,513,219 | $ 149,837 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 326,014 | 410,733 |
Share-based compensation expense | 227,148 | 210,133 |
Amortization of right-of-use assets | 51,257 | |
Amortization of deferred loan cost | 3,087 | 4,631 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (718,533) | (283,974) |
Inventories | (167,601) | 150,290 |
Prepaid expenses and other current assets | (1,954) | 186,508 |
Accounts payable, accrued expenses, and other liabilities | (262,804) | 248,560 |
Income tax payable | 75,547 | 6,388 |
Net cash provided by operating activities | 1,045,380 | 1,083,106 |
Cash Flows From Investing Activities | ||
Purchases of property, plant and equipment | (1,567,524) | (919,127) |
Proceeds from recovery of related party note receivable | 350,262 | |
Net cash used in investing activities | (1,217,262) | (919,127) |
Cash Flows from Financing Activities | ||
Principal payments on debt | (213,905) | (131,978) |
Payments on revolving loan | (472,089) | (21,541) |
Proceeds received from revolving loan | 655,754 | 21,533 |
Net cash used in financing activities | (30,240) | (131,986) |
Net (decrease) increase in cash | (202,122) | 31,993 |
Cash at beginning of period | 2,158,025 | 2,822,100 |
Cash at end of period | 1,955,903 | 2,854,093 |
Supplemental information: | ||
Cash paid for interest | 151,107 | 122,157 |
Property, plant and equipment in accounts payable | 381,064 | |
Disposal of asset held for sale | 216,000 | |
Right of use assets obtained in exchange for lease obligations | $ 19,478 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2021 | $ 28,235 | $ 43,071,201 | $ (36,951,508) | $ 6,147,928 |
Balance, shares at Dec. 31, 2021 | 28,235,001 | |||
Share-based compensation expense | 210,133 | 210,133 | ||
Net income | 149,837 | 149,837 | ||
Balance at Mar. 31, 2022 | $ 28,235 | 43,281,334 | (36,801,671) | 6,507,898 |
Balance, shares at Mar. 31, 2022 | 28,235,001 | |||
Balance at Dec. 31, 2022 | $ 29,245 | 43,943,928 | (35,886,351) | 8,086,822 |
Balance, shares at Dec. 31, 2022 | 29,245,080 | |||
Share-based compensation expense | 227,148 | 227,148 | ||
Net income | 1,513,219 | 1,513,219 | ||
Balance at Mar. 31, 2023 | $ 29,245 | $ 44,171,076 | $ (34,373,132) | $ 9,827,189 |
Balance, shares at Mar. 31, 2023 | 29,245,080 |
NATURE OF OPERATIONS AND SUMMAR
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The condensed 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. These condensed consolidated financial statements for the three months ended March 31, 2023 and 2022, and the related footnote disclosures included herein, are unaudited. The preparation of financial statements in conformity with GAAP requires the use of management’s estimates. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results of operations expected for the year ended December 31, 2023. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the years ended December 31, 2022 and 2021 and the notes thereto, which were included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the Securities and Exchange Commission (the “SEC”). Significant Accounting Policies The Company’s accounting policies are set forth in Note 1 – Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC. There were no significant updates or revisions to our accounting policies during the three months ended March 31, 2023. Concentrations of Credit Risk The Company has two significant customers that represented 87 90 1,880,000 1,751,000 The Company had two vendors that represented 13 354,000 136,000 |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | 2. REVENUE Disaggregation of Revenue The following table presents revenue disaggregated by type: SCHEDULE OF REVENUE DISAGGREGATED BY REVENUE 2023 2022 Three Months Ended March 31, 2023 2022 Tool revenue: Tool and product sales $ 1,537,380 $ 664,300 Tool rental 806,153 385,150 Other related revenue 1,910,676 1,719,797 Total tool revenue 4,254,209 2,769,247 Contract services 2,027,005 1,360,917 Total revenue $ 6,281,214 $ 4,130,164 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. Contract Costs We did not incur any material costs of obtaining contracts. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 3. INVENTORIES Inventories were comprised of the following: SCHEDULE OF INVENTORIES March 31, December 31, 2023 2022 Raw material $ 1,156,935 $ 1,334,669 Work in progress 478,906 168,214 Finished goods 613,020 578,377 Total inventories $ 2,248,861 $ 2,081,260 |
PROPERTY, PLANT & EQUIPMENT
PROPERTY, PLANT & EQUIPMENT | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT & EQUIPMENT | 4. PROPERTY, PLANT & EQUIPMENT Property, plant and equipment was comprised of the following: SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT March 31, December 31, 2023 2022 Land $ 880,416 $ 880,416 Buildings 4,764,441 4,764,441 Leasehold improvements 755,039 755,039 Machinery, equipment, and rental tools 16,494,647 14,546,060 Office equipment, fixtures and software 628,358 628,358 Transportation assets 265,760 265,760 Property, plant and equipment, gross 23,788,661 21,840,074 Accumulated depreciation (13,547,569 ) (13,263,223 ) Total property, plant and equipment, net $ 10,241,092 $ 8,576,851 Depreciation expense related to property, plant and equipment for the three months ended March 31, 2023 and 2022 was $ 284,347 369,066 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | 5. INTANGIBLE ASSETS Intangible assets were comprised of the following: SCHEDULE OF INTANGIBLE ASSETS March 31, December 31, 2023 2022 Developed technology $ 7,000,000 $ 7,000,000 Customer contracts 6,400,000 6,400,000 Trademarks 1,500,000 1,500,000 Total intangible assets, gross 1,500,000 1,500,000 Less: accumulated amortization (14,872,222 ) (14,830,556 ) Total intangible assets, net $ 27,778 $ 69,444 Amortization expense related to intangible assets for the three months ended March 31, 2023 and 2022 was $ 41,667 41,667 |
RELATED PARTY RECEIVABLE
RELATED PARTY RECEIVABLE | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
RELATED PARTY RECEIVABLE | 6. RELATED PARTY 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 8,267,860 On March 31, 2023, the Company entered into a fourth amended and restated loan agreement and note with Tronco to extend the maturity date of the principal to March 31, 2033 2.8% 750,000 In the event the average closing price for the Company’s common stock for 10 consecutive trading days is equal to or greater than $3.00 per share, Tronco shall pay fifty percent of the then outstanding principal balance together with all accrued, unpaid interest within ten days of the date on which the 10-day trading average first equals or exceeds $3.00. In the event the average closing price for 10 consecutive trading days is $4.00 per share or greater, Tronco shall pay the entire outstanding principal balance together with all accrued, unpaid interest within ten (10) days of the date on which the 10-day average first equals or exceeds $4.00. 350,262 6,567,000 6,884,000 |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | 7. LONG-TERM DEBT Long-term debt is comprised of the following: SCHEDULE OF DEBT OBLIGATIONS March 31, December 31, 2023 2022 Credit Agreement $ 1,000,466 $ 813,713 Machinery loans 629,866 664,674 Transportation loan 16,850 20,027 Insurance loan - 156,949 Total long-term debt 1,647,182 1,655,363 Less: current portion of long-term debt, net of discounts (1,157,879 ) (1,125,864 ) Total long-term debt, less current portion, net of discounts $ 489,303 $ 529,499 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 1,001,000 814,000 Amounts outstanding under the Line of Credit 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. As of March 31, 2023, the Company had approximately $ 101,000 The interest rate for the Term Loan and the Line of Credit is prime plus 2 13.60 3.6 1,000,000 1,000,000 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 Line of Credit is classified as current debt as a result of the required lockbox arrangement and the subjective acceleration clause. At March 31, 2023, we were in compliance with the covenants in the Credit Agreement. Machinery Loans The Company financed the purchase of machinery and equipment through various loans. The outstanding loans have interest rates ranging from 5.50 5.94 630,000 665,000 Transportation Loan The Company financed the purchase of a vehicle with a loan agreement. The term of the loan is 60 months and matures in June 2024 6.99 Insurance Loan In June 2022, the Company financed insurance premiums with a loan agreement. In September 2022, an additional insurance amount was added to the loan. The balance of the insurance loan totaled $ 156,949 |
FINANCING OBLIGATION LIABILITY
FINANCING OBLIGATION LIABILITY | 3 Months Ended |
Mar. 31, 2023 | |
Financing Obligation Liability | |
FINANCING OBLIGATION LIABILITY | 8. FINANCING OBLIGATION LIABILITY On December 7, 2020, the Company entered into an agreement to sell land and property related to the Company’s headquarters and manufacturing facility in Vernal, Utah (the “Property”) for a purchase price of $ 4,448,500 the Company entered into a fifteen-year lease agreement 311,395 1.5 Leases The Company received cash of $ 1,622,106 2,638,773 4,260,879 6.0 2,188,710 18,971 16,796 The financing obligation liability is summarized below: SCHEDULE OF FINANCING OBLIGATION LIABILITY March 31, December 31, 2023 2022 Financing obligation for sale-leaseback transaction $ 4,093,686 $ 4,112,658 Current principal portion of finance obligation (76,406 ) (74,636 ) Non-current portion of financing obligation $ 4,017,280 $ 4,038,022 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 9. 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. On February 13, 2023, the lawsuit was reassigned to United States District Judge Drew B. Tipton and United States Magistrate Judge Peter Bray. On March 27, 2023, Magistrate Bray entered an amended Scheduling Order. In accordance with such amended Scheduling Order, fact discovery ended on April 14, 2023, and expert discovery is scheduled to end on or before June 8, 2023. The parties are preparing this case for trial and expect a jury trial setting during the fall or early winter of 2023. We are not currently involved in any other litigation which management believes could have a material effect on our financial position or results of operations. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 10. EARNINGS PER SHARE Basic and diluted earnings per share of common stock have been computed as follows: SCHEDULE OF BASIC AND DILUTED EARNINGS PER SHARE 2023 2022 Three Months Ended March 31, 2023 2022 Numerator: Net income $ 1,513,219 $ 149,837 Denominator: Weighted average shares of common stock outstanding - basic 29,245,080 28,235,001 Effect of dilutive options 60,136 70,100 Weighted average shares of common stock outstanding - diluted 29,305,216 28,305,101 Earnings per common share - basic $ 0.05 $ 0.01 Earnings per common share - diluted $ 0.05 $ 0.01 |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2023 | |
Leases | |
LEASES | 11. LEASES The Company leases certain facilities Utah and Dubai under long-term operating leases with lease terms of one year two years 62,748 1,800 Other information related to operating leases: SCHEDULE OF OTHER INFORMATION RELATED TO OPERATING LEASE Three Months Ended March 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows $ 54,138 $ 38,559 Weighted average remaining lease-term (in years) 2.7 .75 Weighted average discount rate 7.25 % 7.25 % |
SEGMENT REPORTING
SEGMENT REPORTING | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | 12. SEGMENT REPORTING We report our segment results based on our geographic areas of operations, North America and International. These segments have similarities from a product perspective, but management believes that due to operational differences, such as sales models and regulatory environments, information about the segments would be useful to readers of the financial statements. ● North America includes our PDC drill bit and specialty tool sales and contract services business in the United States and Mexico, which have been aggregated ● International includes our specialty tool rental business in the Middle East Revenues and certain operating expenses are directly attributable to our segments. Unallocated corporate costs primarily include corporate shared costs, such as payroll and compensation, professional fees, and rent, as well as costs associated with certain shared research and development activities. Our operating segments are not evaluated using asset information. Prior periods have been restated to conform with the current year presentation. This change was made due to international revenue becoming more significant in the current year. The following table summarizes information about our segments: SCHEDULE OF SEGMENTS INFORMATION WITH GEOGRAPHIC AREAS 2023 2022 Three Months Ended March 31, 2023 2022 Revenues: North America $ 5,475,061 $ 3,745,014 International 806,153 385,150 Total revenue $ 6,281,214 $ 4,130,164 Operating income: North America $ 3,605,959 $ 2,096,321 International 109,810 (144,871 ) Corporate costs, unallocated (2,338,007 ) (1,646,565 ) Total operating income $ 1,377,762 $ 304,885 North America revenue includes revenue from operations in Mexico totaling approximately $ 15,000 18,000 Information about products and services See Note 2 – Revenue. |
NATURE OF OPERATIONS AND SUMM_2
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | 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 condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The condensed 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. These condensed consolidated financial statements for the three months ended March 31, 2023 and 2022, and the related footnote disclosures included herein, are unaudited. The preparation of financial statements in conformity with GAAP requires the use of management’s estimates. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results of operations expected for the year ended December 31, 2023. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the years ended December 31, 2022 and 2021 and the notes thereto, which were included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the Securities and Exchange Commission (the “SEC”). |
Significant Accounting Policies | Significant Accounting Policies The Company’s accounting policies are set forth in Note 1 – Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC. There were no significant updates or revisions to our accounting policies during the three months ended March 31, 2023. |
Concentrations of Credit Risk | Concentrations of Credit Risk The Company has two significant customers that represented 87 90 1,880,000 1,751,000 The Company had two vendors that represented 13 354,000 136,000 |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
SCHEDULE OF REVENUE DISAGGREGATED BY REVENUE | The following table presents revenue disaggregated by type: SCHEDULE OF REVENUE DISAGGREGATED BY REVENUE 2023 2022 Three Months Ended March 31, 2023 2022 Tool revenue: Tool and product sales $ 1,537,380 $ 664,300 Tool rental 806,153 385,150 Other related revenue 1,910,676 1,719,797 Total tool revenue 4,254,209 2,769,247 Contract services 2,027,005 1,360,917 Total revenue $ 6,281,214 $ 4,130,164 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORIES | Inventories were comprised of the following: SCHEDULE OF INVENTORIES March 31, December 31, 2023 2022 Raw material $ 1,156,935 $ 1,334,669 Work in progress 478,906 168,214 Finished goods 613,020 578,377 Total inventories $ 2,248,861 $ 2,081,260 |
PROPERTY, PLANT & EQUIPMENT (Ta
PROPERTY, PLANT & EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT | Property, plant and equipment was comprised of the following: SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT March 31, December 31, 2023 2022 Land $ 880,416 $ 880,416 Buildings 4,764,441 4,764,441 Leasehold improvements 755,039 755,039 Machinery, equipment, and rental tools 16,494,647 14,546,060 Office equipment, fixtures and software 628,358 628,358 Transportation assets 265,760 265,760 Property, plant and equipment, gross 23,788,661 21,840,074 Accumulated depreciation (13,547,569 ) (13,263,223 ) Total property, plant and equipment, net $ 10,241,092 $ 8,576,851 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF INTANGIBLE ASSETS | Intangible assets were comprised of the following: SCHEDULE OF INTANGIBLE ASSETS March 31, December 31, 2023 2022 Developed technology $ 7,000,000 $ 7,000,000 Customer contracts 6,400,000 6,400,000 Trademarks 1,500,000 1,500,000 Total intangible assets, gross 1,500,000 1,500,000 Less: accumulated amortization (14,872,222 ) (14,830,556 ) Total intangible assets, net $ 27,778 $ 69,444 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF DEBT OBLIGATIONS | Long-term debt is comprised of the following: SCHEDULE OF DEBT OBLIGATIONS March 31, December 31, 2023 2022 Credit Agreement $ 1,000,466 $ 813,713 Machinery loans 629,866 664,674 Transportation loan 16,850 20,027 Insurance loan - 156,949 Total long-term debt 1,647,182 1,655,363 Less: current portion of long-term debt, net of discounts (1,157,879 ) (1,125,864 ) Total long-term debt, less current portion, net of discounts $ 489,303 $ 529,499 |
FINANCING OBLIGATION LIABILITY
FINANCING OBLIGATION LIABILITY (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Financing Obligation Liability | |
SCHEDULE OF FINANCING OBLIGATION LIABILITY | The financing obligation liability is summarized below: SCHEDULE OF FINANCING OBLIGATION LIABILITY March 31, December 31, 2023 2022 Financing obligation for sale-leaseback transaction $ 4,093,686 $ 4,112,658 Current principal portion of finance obligation (76,406 ) (74,636 ) Non-current portion of financing obligation $ 4,017,280 $ 4,038,022 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
SCHEDULE OF BASIC AND DILUTED EARNINGS PER SHARE | Basic and diluted earnings per share of common stock have been computed as follows: SCHEDULE OF BASIC AND DILUTED EARNINGS PER SHARE 2023 2022 Three Months Ended March 31, 2023 2022 Numerator: Net income $ 1,513,219 $ 149,837 Denominator: Weighted average shares of common stock outstanding - basic 29,245,080 28,235,001 Effect of dilutive options 60,136 70,100 Weighted average shares of common stock outstanding - diluted 29,305,216 28,305,101 Earnings per common share - basic $ 0.05 $ 0.01 Earnings per common share - diluted $ 0.05 $ 0.01 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases | |
SCHEDULE OF OTHER INFORMATION RELATED TO OPERATING LEASE | Other information related to operating leases: SCHEDULE OF OTHER INFORMATION RELATED TO OPERATING LEASE Three Months Ended March 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows $ 54,138 $ 38,559 Weighted average remaining lease-term (in years) 2.7 .75 Weighted average discount rate 7.25 % 7.25 % |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
SCHEDULE OF SEGMENTS INFORMATION WITH GEOGRAPHIC AREAS | The following table summarizes information about our segments: SCHEDULE OF SEGMENTS INFORMATION WITH GEOGRAPHIC AREAS 2023 2022 Three Months Ended March 31, 2023 2022 Revenues: North America $ 5,475,061 $ 3,745,014 International 806,153 385,150 Total revenue $ 6,281,214 $ 4,130,164 Operating income: North America $ 3,605,959 $ 2,096,321 International 109,810 (144,871 ) Corporate costs, unallocated (2,338,007 ) (1,646,565 ) Total operating income $ 1,377,762 $ 304,885 |
NATURE OF OPERATIONS AND SUMM_3
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Product Information [Line Items] | |||
Accounts receivable | $ 1,880,000 | $ 1,751,000 | |
Accounts payable current | 1,664,491 | 1,043,581 | |
Two Vendors [Member] | |||
Product Information [Line Items] | |||
Accounts payable current | $ 354,000 | $ 136,000 | |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Two Customers [Member] | |||
Product Information [Line Items] | |||
Concentration risk percentage | 87% | 90% | |
Supplier Concentration Risk [Member] | Purchases [Member] | Two Vendors [Member] | |||
Product Information [Line Items] | |||
Concentration risk percentage | 13% | 13% |
SCHEDULE OF REVENUE DISAGGREGAT
SCHEDULE OF REVENUE DISAGGREGATED BY REVENUE (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 6,281,214 | $ 4,130,164 |
Tools and Product Sales [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1,537,380 | 664,300 |
Tool Rental [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 806,153 | 385,150 |
Other Related Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1,910,676 | 1,719,797 |
Tool Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 4,254,209 | 2,769,247 |
Contract Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 2,027,005 | $ 1,360,917 |
SCHEDULE OF INVENTORIES (Detail
SCHEDULE OF INVENTORIES (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw material | $ 1,156,935 | $ 1,334,669 |
Work in progress | 478,906 | 168,214 |
Finished goods | 613,020 | 578,377 |
Total inventories | $ 2,248,861 | $ 2,081,260 |
SCHEDULE OF PROPERTY, PLANT AND
SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 880,416 | $ 880,416 |
Buildings | 4,764,441 | 4,764,441 |
Leasehold improvements | 755,039 | 755,039 |
Machinery, equipment, and rental tools | 16,494,647 | 14,546,060 |
Office equipment, fixtures and software | 628,358 | 628,358 |
Transportation assets | 265,760 | 265,760 |
Property, plant and equipment, gross | 23,788,661 | 21,840,074 |
Accumulated depreciation | (13,547,569) | (13,263,223) |
Total property, plant and equipment, net | $ 10,241,092 | $ 8,576,851 |
PROPERTY, PLANT & EQUIPMENT (De
PROPERTY, PLANT & EQUIPMENT (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense related to property, plant and equipment | $ 284,347 | $ 369,066 |
SCHEDULE OF INTANGIBLE ASSETS (
SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Less: accumulated amortization | $ (14,872,222) | $ (14,830,556) |
Total intangible assets, net | 27,778 | 69,444 |
Developed Technology Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | 7,000,000 | 7,000,000 |
Customer Contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | 6,400,000 | 6,400,000 |
Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | $ 1,500,000 | $ 1,500,000 |
INTANGIBLE ASSETS (Details Narr
INTANGIBLE ASSETS (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 41,667 | $ 41,667 |
RELATED PARTY RECEIVABLE (Detai
RELATED PARTY RECEIVABLE (Details Narrative) - Tronco Energy Corporation [Member] - USD ($) | Mar. 31, 2023 | Mar. 24, 2023 | Aug. 31, 2017 | Dec. 31, 2022 |
Related Party Transaction [Line Items] | ||||
Related party note receivable | $ 6,979,043 | |||
Debt instrument, increase (decrease),net | $ 0 | |||
Common stock hold as collateral | 8,267,860 | |||
Principal maturity date | Mar. 31, 2033 | |||
Interest rate | 2.80% | |||
Principal amount | $ 750,000 | |||
Debt average conversion | In the event the average closing price for the Company’s common stock for 10 consecutive trading days is equal to or greater than $3.00 per share, Tronco shall pay fifty percent of the then outstanding principal balance together with all accrued, unpaid interest within ten days of the date on which the 10-day trading average first equals or exceeds $3.00. In the event the average closing price for 10 consecutive trading days is $4.00 per share or greater, Tronco shall pay the entire outstanding principal balance together with all accrued, unpaid interest within ten (10) days of the date on which the 10-day average first equals or exceeds $4.00. | |||
Principal and interest payment | $ 350,262 | |||
Accured interest | $ 6,567,000 | $ 6,884,000 |
SCHEDULE OF DEBT OBLIGATIONS (D
SCHEDULE OF DEBT OBLIGATIONS (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 1,647,182 | $ 1,655,363 |
Less: current portion of long-term debt, net of discounts | (1,157,879) | (1,125,864) |
Total long-term debt, less current portion, net of discounts | 489,303 | 529,499 |
Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 1,000,466 | 813,713 |
Machinery Loans [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 629,866 | 664,674 |
Transportation Loans [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 16,850 | 20,027 |
Insurance Loan [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 156,949 |
LONG-TERM DEBT (Details Narrati
LONG-TERM DEBT (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | Feb. 28, 2019 | |
Debt Instrument [Line Items] | |||
Line of credit availability | $ 101,000 | ||
Equipment Loans [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable | $ 630,000 | $ 665,000 | |
Transportation Loans [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, variable rate | 6.99% | ||
Loan matures | June 2024 | ||
Insurance Loans [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable | 156,949 | ||
Minimum [Member] | Equipment Loans [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, variable rate | 5.50% | ||
Maximum [Member] | Equipment Loans [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, variable rate | 5.94% | ||
Loan and security agreement [Member] | Term Loan and Revolving Loan [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit interest rate | 13.60% | ||
Management fee rate, percentage | 3.60% | ||
Line of credit borrowing capacity | $ 1,000,000 | ||
Line of credit borrowing interest paid | $ 1,000,000 | ||
Loan and security agreement [Member] | Term Loan and Revolving Loan [Member] | Prime Rate [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit interest rate | 2% | ||
Loan and security agreement [Member] | Austin Financial Services Inc [Member] | |||
Debt Instrument [Line Items] | |||
Long term line of credit | $ 4,300,000 | ||
Loan and security agreement [Member] | Austin Financial Services Inc [Member] | Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Long term line of credit | 800,000 | ||
Loan and security agreement [Member] | Austin Financial Services Inc [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Long term line of credit | $ 3,500,000 | ||
Outstanding line of credit | $ 1,001,000 | $ 814,000 | |
Line of Credit Facility, Description | Amounts outstanding under the Line of Credit 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. As of March 31, 2023, the Company had approximately $101,000 of availability under the Line of Credit. |
SCHEDULE OF FINANCING OBLIGATIO
SCHEDULE OF FINANCING OBLIGATION LIABILITY (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Obligation Liability | ||
Financing obligation for sale-leaseback transaction | $ 4,093,686 | $ 4,112,658 |
Current principal portion of finance obligation | (76,406) | (74,636) |
Non-current portion of financing obligation | $ 4,017,280 | $ 4,038,022 |
FINANCING OBLIGATION LIABILIT_2
FINANCING OBLIGATION LIABILITY (Details Narrative) - USD ($) | 3 Months Ended | |||
Dec. 07, 2022 | Dec. 07, 2020 | Mar. 31, 2023 | Mar. 31, 2022 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Purchase price | $ 1,567,524 | $ 919,127 | ||
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 | |||
Principal payments | $ 18,971 | $ 16,796 | ||
Sale Agreement [Member] | UTAH | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Purchase price | $ 4,448,500 | |||
Lessee finance lease description | the Company entered into a fifteen-year lease agreement | |||
Lease Agreement [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Lease cost | $ 311,395 | |||
Annual rent increases | 1.50% |
SCHEDULE OF BASIC AND DILUTED E
SCHEDULE OF BASIC AND DILUTED EARNINGS PER SHARE (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator: | ||
Net income | $ 1,513,219 | $ 149,837 |
Denominator: | ||
Weighted average shares of common stock outstanding - basic | 29,245,080 | 28,235,001 |
Effect of dilutive options | 60,136 | 70,100 |
Weighted average shares of common stock outstanding - diluted | 29,305,216 | 28,305,101 |
Earnings per common share - basic | $ 0.05 | $ 0.01 |
Earnings per common share - diluted | $ 0.05 | $ 0.01 |
SCHEDULE OF OTHER INFORMATION R
SCHEDULE OF OTHER INFORMATION RELATED TO OPERATING LEASE (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases | ||
Operating cash flows | $ 54,138 | $ 38,559 |
Weighted average remaining lease term | 2 years 8 months 12 days | 9 months |
Weighted average discount rate | 7.25% | 7.25% |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating lease expense | $ 62,748 | $ 1,800 |
Minimum [Member] | ||
Operating lease term | 1 year | |
Maximum [Member] | ||
Operating lease term | 2 years |
SCHEDULE OF SEGMENTS INFORMATIO
SCHEDULE OF SEGMENTS INFORMATION WITH GEOGRAPHIC AREAS (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues: | ||
Total revenue | $ 6,281,214 | $ 4,130,164 |
Operating income: | ||
Total operating income | 1,377,762 | 304,885 |
North America [Member] | ||
Revenues: | ||
Total revenue | 5,475,061 | 3,745,014 |
Operating income: | ||
Total operating income | 3,605,959 | 2,096,321 |
International [Member] | ||
Revenues: | ||
Total revenue | 806,153 | 385,150 |
Operating income: | ||
Total operating income | 109,810 | (144,871) |
Corporate Costs, Unallocated [Member] | ||
Operating income: | ||
Total operating income | $ (2,338,007) | $ (1,646,565) |
SEGMENT REPORTING (Details Narr
SEGMENT REPORTING (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | $ 6,281,214 | $ 4,130,164 |
MEXICO | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | $ 15,000 | $ 18,000 |