Superior Drilling Products (SDPI) 10-Q 14 Aug 23 2023 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2023	Aug. 14, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2023
Document Fiscal Period Focus	Q2
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		30,397,924

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Current assets
Cash	$ 1,179,791	$ 2,158,025
Accounts receivable	4,687,791	3,241,221
Prepaid expenses	351,840	367,823
Inventories	3,152,403	2,081,260
Asset held for sale		216,000
Other current assets	192,493	140,238
Total current assets	9,564,318	8,204,567
Property, plant and equipment, net	11,086,053	8,576,851
Intangible assets, net		69,444
Right of use assets	559,405	638,102
Other noncurrent assets	112,619	111,519
Total assets	21,322,395	17,600,483
Current liabilities
Accounts payable	2,433,587	1,043,581
Accrued expenses	959,966	891,793
Income tax payable	524,687	351,618
Current portion of operating lease liability	52,116	44,273
Current portion of financing obligation	78,842	74,636
Current portion of long-term debt, net of discounts	1,424,057	1,125,864
Other current liabilities		216,000
Total current liabilities	5,473,255	3,747,765
Operating lease liability, less current portion	342,344	523,375
Long-term financing obligation, less current portion	3,996,937	4,038,022
Long-term debt, less current portion, net of discounts	448,424	529,499
Deferred income	675,000	675,000
Total liabilities	10,935,960	9,513,661
Commitments and contingencies (Note 9)
Shareholders’ equity
Common stock - $0.001 par value; 100,000,000 shares authorized; 29,252,872 and 29,245,080 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively	29,253	29,245
Additional paid-in-capital	44,407,147	43,943,928
Accumulated deficit	(34,049,965)	(35,886,351)
Total shareholders’ equity	10,386,435	8,086,822
Total liabilities and shareholders’ equity	$ 21,322,395	$ 17,600,483

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 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	29,252,872	29,245,080
Common stock, shares outstanding	29,252,872	29,245,080

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Revenue	$ 5,367,350	$ 4,540,842	$ 11,648,564	$ 8,671,007
Operating cost and expenses
Cost of revenue	2,013,167	2,116,096	4,251,758	3,883,995
Selling, general, and administrative expenses	2,458,804	1,894,403	4,797,653	3,541,051
Depreciation and amortization expense	349,447	402,648	675,460	813,379
Total operating cost and expenses	4,821,418	4,413,147	9,724,871	8,238,425
Operating income	545,932	127,695	1,923,693	432,582
Other income (expense)
Interest income	13,755	2,980	30,653	3,176
Interest expense	(129,866)	(132,738)	(283,956)	(256,600)
Recovery of related party note receivable			350,262
Loss on disposition of assets		(22,146)		(22,146)
Total other income (expense)	(116,111)	(151,904)	96,959	(275,570)
Income (loss) before income taxes	429,821	(24,209)	2,020,652	157,012
Income tax expense	(106,654)	(32,299)	(184,266)	(63,683)
Net income (loss)	$ 323,167	$ (56,508)	$ 1,836,386	$ 93,329
Earnings (loss) per common share - basic	$ 0.01	$ 0	$ 0.06	$ 0
Weighted average common shares outstanding - basic	29,247,563	28,235,001	29,246,328	28,235,001
Earnings (loss) per common share - diluted	$ 0.01	$ 0	$ 0.06	$ 0
Weighted average common shares outstanding - diluted	29,295,761	28,235,001	29,294,526	28,305,101

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash Flows from Operating Activities
Net income	$ 1,836,386	$ 93,329
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	675,460	813,379
Share-based compensation expense	456,819	422,601
Amortization of right-of-use assets	103,624
Amortization of deferred loan costs	3,087	9,262
Loss on disposition of assets		22,146
Changes in operating assets and liabilities:
Accounts receivable	(1,446,570)	72,452
Inventories	(1,071,143)	(149,223)
Prepaid expenses and other current assets	(37,372)	(285,628)
Accounts payable, accrued expenses, and other liabilities	227,145	342,193
Income tax payable	173,069	13,422
Net cash provided by operating activities	920,505	1,353,933
Cash Flows From Investing Activities
Purchases of property, plant and equipment	(2,432,561)	(1,249,419)
Proceeds from recovery of related party note receivable	350,262
Net cash used in investing activities	(2,082,299)	(1,249,419)
Cash Flows from Financing Activities
Principal payments on debt	(283,139)	(281,487)
Proceeds received from debt	131,552	182,318
Payments on revolving loan	(499,887)	(553,650)
Proceeds received from revolving loan	828,626	553,631
Proceeds from exercise of stock options	6,408
Net cash provided by (used in) financing activities	183,560	(99,188)
Net (decrease) increase in cash	(978,234)	5,326
Cash at beginning of period	2,158,025	2,822,100
Cash at end of period	1,179,791	2,827,426
Supplemental information:
Cash paid for interest	281,703	247,952
Right of use assets obtained in exchange for lease obligations	24,927
Disposal of asset held for sale	216,000
Property, plant and equipment in accounts payable	$ 682,658

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		422,601		422,601
Net income (loss)			93,329	93,329
Balance at Jun. 30, 2022	$ 28,235	43,493,802	(36,858,179)	6,663,858
Balance, shares at Jun. 30, 2022	28,235,001
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
Share-based compensation expense		212,468		212,468
Net income (loss)			(56,508)	(56,508)
Balance at Jun. 30, 2022	$ 28,235	43,493,802	(36,858,179)	6,663,858
Balance, shares at Jun. 30, 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		456,819		456,819
Net income (loss)			1,836,386	1,836,386
Exercise of stock options	$ 8	6,400		6,408
Share based compensation arrangement by share-based payment award, options, exercises in period	7,792
Balance at Jun. 30, 2023	$ 29,253	44,407,147	(34,049,965)	10,386,435
Balance, shares at Jun. 30, 2023	29,252,872
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
Share-based compensation expense		229,671		229,671
Net income (loss)			323,167	323,167
Exercise of stock options	$ 8	6,400		6,408
Share based compensation arrangement by share-based payment award, options, exercises in period	7,792
Balance at Jun. 30, 2023	$ 29,253	$ 44,407,147	$ (34,049,965)	$ 10,386,435
Balance, shares at Jun. 30, 2023	29,252,872

NATURE OF OPERATIONS AND SUMMAR

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 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 in Vernal, Utah, where we manufacture solutions for the drilling industry, as well as customers’ custom products. We also operate a repair facility in Dubai. Our headquarters are also 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 and six months ended June 30, 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 and six months ended June 30, 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 or six months ended June 30, 2023. Concentrations of Credit Risk The Company has two significant customers that represented 84 89 2,540,000 1,751,000 The Company had two vendors that represented 13 14 471,000 77,000 Superior Drilling Products, Inc. N otes to the Condensed Consolidated Financial Statements (unaudited)

REVENUE

REVENUE	6 Months Ended
	Jun. 30, 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 2023 2022 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Tool revenue: Tool and product sales $ 609,000 $ 627,200 $ 2,146,380 $ 1,291,500 Tool rental 1,042,295 519,724 1,861,969 904,874 Other related revenue 1,901,045 1,744,656 3,798,201 3,464,453 Total tool revenue 3,552,340 2,891,580 7,806,550 5,660,827 Contract services 1,815,010 1,649,262 3,842,014 3,010,180 Total revenue $ 5,367,350 $ 4,540,842 $ 11,648,564 $ 8,671,007 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	6 Months Ended
	Jun. 30, 2023
Inventory Disclosure [Abstract]
INVENTORIES	3. INVENTORIES Inventories were comprised of the following: SCHEDULE OF INVENTORIES June 30, 2023 December 31, 2022 Raw material $ 1,763,567 $ 1,334,669 Work in progress 752,136 168,214 Finished goods 636,700 578,377 Total inventories $ 3,152,403 $ 2,081,260 Superior Drilling Products, Inc. N otes to the Condensed Consolidated Financial Statements (unaudited)

PROPERTY, PLANT & EQUIPMENT

PROPERTY, PLANT & EQUIPMENT	6 Months Ended
	Jun. 30, 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 June 30, 2023 December 31, 2022 Land $ 880,416 $ 880,416 Buildings 4,764,441 4,764,441 Leasehold improvements 983,668 755,039 Machinery, equipment, and rental tools 17,432,649 14,546,060 Office equipment, fixtures and software 628,358 628,358 Transportation assets 265,760 265,760 Property, plant and equipment, gross 24,955,292 21,840,074 Accumulated depreciation (13,869,239 ) (13,263,223 ) Total property, plant and equipment, net $ 11,086,053 $ 8,576,851 Depreciation expense related to property, plant and equipment for the three months ended June 30, 2023 and 2022 was $ 284,347 360,981 606,016 730,046

INTANGIBLE ASSETS

INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	5. INTANGIBLE ASSETS Intangible assets were comprised of the following: SCHEDULE OF INTANGIBLE ASSETS June 30, 2023 December 31, 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 14,900,000 14,900,000 Less: accumulated amortization (14,900,000 ) (14,830,556 ) Total intangible assets, net $ - $ 69,444 Amortization expense related to intangible assets for the three months ended June 30, 2023 and 2022 was $ 27,778 41,667 69,444 83,333

RELATED PARTY RECEIVABLE

RELATED PARTY RECEIVABLE	6 Months Ended
	Jun. 30, 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 (“Tronco”) in order to take over the legal position as Tronco’s senior secured lender. Tronco is an entity owned by Troy and Annette Meier. Effective August 2017, the Company fully reserved the related party note receivable of $ 6,979,043 0 8,267,860 Superior Drilling Products, Inc. N otes to the Condensed Consolidated Financial Statements (unaudited) 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 6,613,000 6,884,000

LONG-TERM DEBT

LONG-TERM DEBT	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
LONG-TERM DEBT	7. LONG-TERM DEBT Long-term debt is comprised of the following: SCHEDULE OF DEBT OBLIGATIONS June 30, 2023 December 31, 2022 Credit Agreement $ 1,145,540 $ 813,713 Machinery loans 594,582 664,674 Transportation loan 13,617 20,027 Insurance loan 118,742 156,949 Total long-term debt 1,872,481 1,655,363 Less: current portion of long-term debt, net of discounts (1,424,057 ) (1,125,864 ) Total long-term debt, less current portion, net of discounts $ 448,424 $ 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 1,146,000 814,000 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 June 30, 2023, the Company had approximately $ 50,000 The interest rate for the Term Loan and the Line of Credit is prime plus 5.6 13.85 1,000,000 1,000,000 Superior Drilling Products, Inc. N otes to the Condensed Consolidated Financial Statements (unaudited) 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 June 30, 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 5.94 595,000 665,000 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 The Company financed insurance premiums with a loan agreement. The term of the loan is 10 months and matures in March 2024. The interest rate of the loan is 7.08 119,000 157,000

FINANCING OBLIGATION LIABILITY

FINANCING OBLIGATION LIABILITY	6 Months Ended
	Jun. 30, 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 36,879 32,532 The outstanding balance of the financing obligation liability is summarized below: SCHEDULE OF FINANCING OBLIGATION LIABILITY June 30, 2023 December 31, 2022 Financing obligation for sale-leaseback transaction $ 4,075,779 $ 4,112,658 Current principal portion of finance obligation (78,842 ) (74,636 ) Non-current portion of financing obligation $ 3,996,937 $ 4,038,022 Superior Drilling Products, Inc. N otes to the Condensed Consolidated Financial Statements (unaudited)

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 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, Judge 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 August 31, 2023. On July 5, 2023, Judge Bray issued a Memorandum and Recommendation finding that Stabil Drill is prohibited from asserting its patent invalidity affirmative defenses. On August 2, 2023, Stabil Drill filed objections to the Court’s Order and the Court could possibly modify the Order based upon Stabil Drill’s filed objections. The parties are preparing this case for trial and expect a jury trial setting in early spring of 2024. We are not currently involved in any other litigation.

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
EARNINGS PER SHARE	10. EARNINGS PER SHARE Basic and diluted earnings (loss) per share of common stock have been computed as follows: SCHEDULE OF BASIC AND DILUTED EARNINGS PER SHARE 2023 2022 2023 2022 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Numerator: Net income (loss) $ 323,167 $ (56,508 ) $ 1,836,386 $ 93,329 Denominator: Weighted average shares of common stock outstanding - basic 29,247,563 28,235,001 29,246,328 28,235,001 Effect of dilutive options 48,198 - 48,198 70,100 Weighted average shares of common stock outstanding - diluted 29,295,761 28,235,001 29,294,526 28,305,101 Earnings (loss) per common share – basic $ 0.01 $ (0.00 ) $ 0.06 $ 0.00 Earnings (loss) per common share - diluted $ 0.01 $ (0.00 ) $ 0.06 $ 0.00

LEASES

LEASES	6 Months Ended
	Jun. 30, 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 63,000 23,000 126,000 25,000 Superior Drilling Products, Inc. N otes to the Condensed Consolidated Financial Statements (unaudited) Other information related to operating leases: SCHEDULE OF OTHER INFORMATION RELATED TO OPERATING LEASE Six Months Ended June 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows $ 220,329 $ 187,394 Weighted average remaining lease-term (in years) 2.45 2.79 Weighted average discount rate 7.25 % 7.25 %

SEGMENT REPORTING

SEGMENT REPORTING	6 Months Ended
	Jun. 30, 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 Revenue and certain operating expenses are directly attributable to each segment. 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 2023 2022 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Revenue: North America $ 4,325,055 $ 4,021,118 $ 9,800,115 $ 7,766,133 International 1,042,295 519,724 1,848,449 904,874 Total revenue $ 5,367,350 $ 4,540,842 $ 11,648,564 $ 8,671,007 Operating income: North America $ 2,774,629 $ 2,069,125 $ 6,442,644 $ 4,168,223 International 229,310 (69,223 ) 277,066 (216,870 ) Corporate costs, unallocated (2,458,007 ) (1,872,207 ) (4,796,017 ) (3,518,771 ) Total operating income $ 545,932 $ 127,695 $ 1,923,693 $ 432,582 North America revenue includes revenue from customers in Mexico totaling approximately $ 10,000 0 30,000 18,000 Information about products and services See Note 2 – Revenue Superior Drilling Products, Inc. N otes to the Condensed Consolidated Financial Statements (unaudited)

SUBSEQUENT EVENT

SUBSEQUENT EVENT	6 Months Ended
	Jun. 30, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENT	13. SUBSEQUENT EVENT Loan Agreement On July 28, 2023, the Company entered into a Loan Agreement (the “Loan Agreement”) among Vast Bank, National Association, as lender (the “Lender”), and various subsidiaries of the Company as guarantors (the “Guarantors”). The Loan Agreement provides for loans through the following facilities (collectively, the “Loans”): ● Revolving Line which provides the lesser of $ 750,000 1.00 7.50 ● Term Loan for $ 1,719,200 8.18 The Company will make payments of principal and interest monthly on the Term Loan, and interest only on the Revolving Line, commencing on August 28, 2023. The Company paid the Lender a non-refundable upfront fee of 0.75 A portion of the proceeds of the Loans were used to repay the Credit Agreement. In connection with the Loan Agreement, the Company entered into Business Manager Agreements for the purchase by the Lender of certain domestic and international accounts receivable of the Company. The face amount of the accounts under each agreement that may be purchased cannot exceed $ 2,500,000 2,000,000 1.25 2.0 Amendment to Lease In connection with entering into the Loan Agreement, Meier Properties, Series LLC, a subsidiary of the Company, entered into an amendment (the “Amendment”) to the lease for the Company’s facilities in Vernal, Utah. Under the amendment, the tenant paid a security deposit of approximately $ 80,000 Restricted Stock Units On August 10, 2023, the Board of Directors granted 250,943 192,453 90,556 56,604 75,000 three years

NATURE OF OPERATIONS AND SUMM_2

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 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 in Vernal, Utah, where we manufacture solutions for the drilling industry, as well as customers’ custom products. We also operate a repair facility in Dubai. Our headquarters are also 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 and six months ended June 30, 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 and six months ended June 30, 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”).
Concentrations of Credit Risk	Concentrations of Credit Risk The Company has two significant customers that represented 84 89 2,540,000 1,751,000 The Company had two vendors that represented 13 14 471,000 77,000

REVENUE (Tables)

REVENUE (Tables)	6 Months Ended
	Jun. 30, 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 2023 2022 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Tool revenue: Tool and product sales $ 609,000 $ 627,200 $ 2,146,380 $ 1,291,500 Tool rental 1,042,295 519,724 1,861,969 904,874 Other related revenue 1,901,045 1,744,656 3,798,201 3,464,453 Total tool revenue 3,552,340 2,891,580 7,806,550 5,660,827 Contract services 1,815,010 1,649,262 3,842,014 3,010,180 Total revenue $ 5,367,350 $ 4,540,842 $ 11,648,564 $ 8,671,007

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2023
Inventory Disclosure [Abstract]
SCHEDULE OF INVENTORIES	Inventories were comprised of the following: SCHEDULE OF INVENTORIES June 30, 2023 December 31, 2022 Raw material $ 1,763,567 $ 1,334,669 Work in progress 752,136 168,214 Finished goods 636,700 578,377 Total inventories $ 3,152,403 $ 2,081,260

PROPERTY, PLANT & EQUIPMENT (Ta

PROPERTY, PLANT & EQUIPMENT (Tables)	6 Months Ended
	Jun. 30, 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 June 30, 2023 December 31, 2022 Land $ 880,416 $ 880,416 Buildings 4,764,441 4,764,441 Leasehold improvements 983,668 755,039 Machinery, equipment, and rental tools 17,432,649 14,546,060 Office equipment, fixtures and software 628,358 628,358 Transportation assets 265,760 265,760 Property, plant and equipment, gross 24,955,292 21,840,074 Accumulated depreciation (13,869,239 ) (13,263,223 ) Total property, plant and equipment, net $ 11,086,053 $ 8,576,851

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
SCHEDULE OF INTANGIBLE ASSETS	Intangible assets were comprised of the following: SCHEDULE OF INTANGIBLE ASSETS June 30, 2023 December 31, 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 14,900,000 14,900,000 Less: accumulated amortization (14,900,000 ) (14,830,556 ) Total intangible assets, net $ - $ 69,444

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
SCHEDULE OF DEBT OBLIGATIONS	Long-term debt is comprised of the following: SCHEDULE OF DEBT OBLIGATIONS June 30, 2023 December 31, 2022 Credit Agreement $ 1,145,540 $ 813,713 Machinery loans 594,582 664,674 Transportation loan 13,617 20,027 Insurance loan 118,742 156,949 Total long-term debt 1,872,481 1,655,363 Less: current portion of long-term debt, net of discounts (1,424,057 ) (1,125,864 ) Total long-term debt, less current portion, net of discounts $ 448,424 $ 529,499

FINANCING OBLIGATION LIABILITY

FINANCING OBLIGATION LIABILITY (Tables)	6 Months Ended
	Jun. 30, 2023
Financing Obligation Liability
SCHEDULE OF FINANCING OBLIGATION LIABILITY	The outstanding balance of the financing obligation liability is summarized below: SCHEDULE OF FINANCING OBLIGATION LIABILITY June 30, 2023 December 31, 2022 Financing obligation for sale-leaseback transaction $ 4,075,779 $ 4,112,658 Current principal portion of finance obligation (78,842 ) (74,636 ) Non-current portion of financing obligation $ 3,996,937 $ 4,038,022

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2023
Earnings Per Share [Abstract]
SCHEDULE OF BASIC AND DILUTED EARNINGS PER SHARE	Basic and diluted earnings (loss) per share of common stock have been computed as follows: SCHEDULE OF BASIC AND DILUTED EARNINGS PER SHARE 2023 2022 2023 2022 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Numerator: Net income (loss) $ 323,167 $ (56,508 ) $ 1,836,386 $ 93,329 Denominator: Weighted average shares of common stock outstanding - basic 29,247,563 28,235,001 29,246,328 28,235,001 Effect of dilutive options 48,198 - 48,198 70,100 Weighted average shares of common stock outstanding - diluted 29,295,761 28,235,001 29,294,526 28,305,101 Earnings (loss) per common share – basic $ 0.01 $ (0.00 ) $ 0.06 $ 0.00 Earnings (loss) per common share - diluted $ 0.01 $ (0.00 ) $ 0.06 $ 0.00

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Jun. 30, 2023
Leases
SCHEDULE OF OTHER INFORMATION RELATED TO OPERATING LEASE	Other information related to operating leases: SCHEDULE OF OTHER INFORMATION RELATED TO OPERATING LEASE Six Months Ended June 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows $ 220,329 $ 187,394 Weighted average remaining lease-term (in years) 2.45 2.79 Weighted average discount rate 7.25 % 7.25 %

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	6 Months Ended
	Jun. 30, 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 2023 2022 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Revenue: North America $ 4,325,055 $ 4,021,118 $ 9,800,115 $ 7,766,133 International 1,042,295 519,724 1,848,449 904,874 Total revenue $ 5,367,350 $ 4,540,842 $ 11,648,564 $ 8,671,007 Operating income: North America $ 2,774,629 $ 2,069,125 $ 6,442,644 $ 4,168,223 International 229,310 (69,223 ) 277,066 (216,870 ) Corporate costs, unallocated (2,458,007 ) (1,872,207 ) (4,796,017 ) (3,518,771 ) Total operating income $ 545,932 $ 127,695 $ 1,923,693 $ 432,582

NATURE OF OPERATIONS AND SUMM_3

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Product Information [Line Items]
Accounts payable current	$ 2,433,587		$ 1,043,581
Two Vendors [Member]
Product Information [Line Items]
Accounts payable current	471,000		77,000
Two Customers [Member]
Product Information [Line Items]
Accounts receivable	$ 2,540,000		$ 1,751,000
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Two Customers [Member]
Product Information [Line Items]
Concentration risk percentage	84%	89%
Supplier Concentration Risk [Member] | Purchases [Member] | Two Vendors [Member]
Product Information [Line Items]
Concentration risk percentage	13%	14%

SCHEDULE OF REVENUE DISAGGREGAT

SCHEDULE OF REVENUE DISAGGREGATED BY REVENUE (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Total revenue	$ 5,367,350	$ 4,540,842	$ 11,648,564	$ 8,671,007
Tools And Product Sales [Member]
Disaggregation of Revenue [Line Items]
Total revenue	609,000	627,200	2,146,380	1,291,500
Tool Rental [Member]
Disaggregation of Revenue [Line Items]
Total revenue	1,042,295	519,724	1,861,969	904,874
Other Related Tool Revenue [Member]
Disaggregation of Revenue [Line Items]
Total revenue	1,901,045	1,744,656	3,798,201	3,464,453
Tool Revenue [Member]
Disaggregation of Revenue [Line Items]
Total revenue	3,552,340	2,891,580	7,806,550	5,660,827
Contract Services [Member]
Disaggregation of Revenue [Line Items]
Total revenue	$ 1,815,010	$ 1,649,262	$ 3,842,014	$ 3,010,180

SCHEDULE OF INVENTORIES (Detail

SCHEDULE OF INVENTORIES (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw material	$ 1,763,567	$ 1,334,669
Work in progress	752,136	168,214
Finished goods	636,700	578,377
Total inventories	$ 3,152,403	$ 2,081,260

SCHEDULE OF PROPERTY, PLANT AND

SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Land	$ 880,416	$ 880,416
Buildings	4,764,441	4,764,441
Leasehold improvements	983,668	755,039
Machinery, equipment, and rental tools	17,432,649	14,546,060
Office equipment, fixtures and software	628,358	628,358
Transportation assets	265,760	265,760
Property, plant and equipment, gross	24,955,292	21,840,074
Accumulated depreciation	(13,869,239)	(13,263,223)
Total property, plant and equipment, net	$ 11,086,053	$ 8,576,851

PROPERTY, PLANT & EQUIPMENT (De

PROPERTY, PLANT & EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Property, Plant and Equipment [Abstract]
Depreciation expense related to property, plant and equipment	$ 284,347	$ 360,981	$ 606,016	$ 730,046

SCHEDULE OF INTANGIBLE ASSETS (

SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Trademarks	$ 14,900,000	$ 14,900,000
Total intangible assets, gross	14,900,000	14,900,000
Less: accumulated amortization	(14,900,000)	(14,830,556)
Total intangible assets, net		69,444
Developed Technology Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Trademarks	7,000,000	7,000,000
Total intangible assets, gross	7,000,000	7,000,000
Customer Contracts [Member]
Finite-Lived Intangible Assets [Line Items]
Trademarks	6,400,000	6,400,000
Total intangible assets, gross	6,400,000	6,400,000
Trademarks and Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Trademarks	1,500,000	1,500,000
Total intangible assets, gross	$ 1,500,000	$ 1,500,000

INTANGIBLE ASSETS (Details Narr

INTANGIBLE ASSETS (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 27,778	$ 41,667	$ 69,444	$ 83,333

RELATED PARTY RECEIVABLE (Detai

RELATED PARTY RECEIVABLE (Details Narrative) - Tronco Energy Corporation [Member] - USD ($)	Mar. 31, 2023	Mar. 24, 2023	Aug. 31, 2017	Jun. 30, 2023	Dec. 31, 2022
Defined Benefit Plan Disclosure [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	280%
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				$ 6,613,000	$ 6,884,000

SCHEDULE OF DEBT OBLIGATIONS (D

SCHEDULE OF DEBT OBLIGATIONS (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Total long-term debt	$ 1,872,481	$ 1,655,363
Less: current portion of long-term debt, net of discounts	(1,424,057)	(1,125,864)
Total long-term debt, less current portion, net of discounts	448,424	529,499
Credit Agreement [Member]
Debt Instrument [Line Items]
Total long-term debt	1,145,540	813,713
Machinery Loans [Member]
Debt Instrument [Line Items]
Total long-term debt	594,582	664,674
Transportation Loans [Member]
Debt Instrument [Line Items]
Total long-term debt	13,617	20,027
Insurance Loan [Member]
Debt Instrument [Line Items]
Total long-term debt	$ 118,742	$ 156,949

LONG-TERM DEBT (Details Narrati

LONG-TERM DEBT (Details Narrative) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022	Feb. 28, 2019
Line of Credit Facility [Line Items]
Line of credit availability	$ 50,000
Equipment Loans [Member]
Line of Credit Facility [Line Items]
Notes payable	$ 595,000	$ 665,000
Transportation Loans [Member]
Line of Credit Facility [Line Items]
Notes payable	6.99%
Loan matures	June 2024
Insurance Loans [Member]
Line of Credit Facility [Line Items]
Notes payable	7.08%
Notes payable	$ 119,000	157,000
Minimum [Member] | Equipment Loans [Member]
Line of Credit Facility [Line Items]
Notes payable	5.50%
Maximum [Member] | Equipment Loans [Member]
Line of Credit Facility [Line Items]
Notes payable	5.94%
Loan and security agreement [Member] | Term Loan and Revolving Loan [Member]
Line of Credit Facility [Line Items]
Line of credit interest rate	5.60%
Management fee rate, percentage	13.85%
Line of credit borrowing capacity	$ 1,000,000
Line of credit borrowing interest paid	1,000,000
Loan and security agreement [Member] | Austin Financial Services Inc [Member]
Line of Credit Facility [Line Items]
Long term line of credit			$ 4,300,000
Loan and security agreement [Member] | Austin Financial Services Inc [Member] | Term Loan [Member]
Line of Credit Facility [Line Items]
Long term line of credit			800,000
Loan and security agreement [Member] | Austin Financial Services Inc [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Long term line of credit			$ 3,500,000
Outstanding line of credit	$ 1,146,000	$ 814,000

SCHEDULE OF FINANCING OBLIGATIO

SCHEDULE OF FINANCING OBLIGATION LIABILITY (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
Financing Obligation Liability
Financing obligation for sale-leaseback transaction	$ 4,075,779	$ 4,112,658
Current principal portion of finance obligation	(78,842)	(74,636)
Non-current portion of financing obligation	$ 3,996,937	$ 4,038,022

FINANCING OBLIGATION LIABILIT_2

FINANCING OBLIGATION LIABILITY (Details Narrative) - USD ($)		6 Months Ended
	Dec. 07, 2020	Jun. 30, 2023	Jun. 30, 2022
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purchase price		$ 2,432,561	$ 1,249,419
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		$ 36,879	$ 32,532
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		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Numerator:
Net income (loss)	$ 323,167	$ (56,508)	$ 1,836,386	$ 93,329
Denominator:
Weighted average shares of common stock outstanding - basic	29,247,563	28,235,001	29,246,328	28,235,001
Effect of dilutive options	48,198		48,198	70,100
Weighted average shares of common stock outstanding - diluted	29,295,761	28,235,001	29,294,526	28,305,101
Earnings (loss) per common share – basic	$ 0.01	$ 0	$ 0.06	$ 0
Earnings (loss) per common share - diluted	$ 0.01	$ 0	$ 0.06	$ 0

SCHEDULE OF OTHER INFORMATION R

SCHEDULE OF OTHER INFORMATION RELATED TO OPERATING LEASE (Details) - USD ($)	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Leases
Operating cash flows	$ 220,329	$ 187,394
Weighted average remaining lease term	2 years 5 months 12 days	2 years 9 months 14 days
Weighted average discount rate	7.25%	7.25%

LEASES (Details Narrative)

LEASES (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Operating lease expense	$ 63,000	$ 23,000	$ 126,000	$ 25,000
Minimum [Member]
Operating lease term	1 year		1 year
Maximum [Member]
Operating lease term	2 years		2 years

SCHEDULE OF SEGMENTS INFORMATIO

SCHEDULE OF SEGMENTS INFORMATION WITH GEOGRAPHIC AREAS (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenue:
Total revenue	$ 5,367,350	$ 4,540,842	$ 11,648,564	$ 8,671,007
Operating income:
Total operating income	545,932	127,695	1,923,693	432,582
North America [Member]
Revenue:
Total revenue	4,325,055	4,021,118	9,800,115	7,766,133
Operating income:
Total operating income	2,774,629	2,069,125	6,442,644	4,168,223
International [Member]
Revenue:
Total revenue	1,042,295	519,724	1,848,449	904,874
Operating income:
Total operating income	229,310	(69,223)	277,066	(216,870)
Corporate Costs Unallocated [Member]
Operating income:
Total operating income	$ (2,458,007)	$ (1,872,207)	$ (4,796,017)	$ (3,518,771)

SEGMENT REPORTING (Details Narr

SEGMENT REPORTING (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 5,367,350	$ 4,540,842	$ 11,648,564	$ 8,671,007
MEXICO
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 10,000	$ 0	$ 30,000	$ 18,000

SUBSEQUENT EVENT (Details Narra

SUBSEQUENT EVENT (Details Narrative) - Subsequent Event [Member] - USD ($)	Aug. 10, 2023	Jul. 28, 2023
Restricted Stock Units (RSUs) [Member]
Subsequent Event [Line Items]
Vesting period	3 years
Chairman and Chief Executive Officer [Member] | Restricted Stock Units (RSUs) [Member]
Subsequent Event [Line Items]
Restricted stock units granted	250,943
President and Chief Operating Officer [Member] | Restricted Stock Units (RSUs) [Member]
Subsequent Event [Line Items]
Restricted stock units granted	192,453
Chief Financial Officer [Member] | Restricted Stock Units (RSUs) [Member]
Subsequent Event [Line Items]
Restricted stock units granted	90,556
Director One [Member] | Restricted Stock Units (RSUs) [Member]
Subsequent Event [Line Items]
Restricted stock units granted	56,604
Director Two [Member] | Restricted Stock Units (RSUs) [Member]
Subsequent Event [Line Items]
Restricted stock units granted	56,604
Director Three [Member] | Restricted Stock Units (RSUs) [Member]
Subsequent Event [Line Items]
Restricted stock units granted	56,604
Empolyees [Member] | Restricted Stock Units (RSUs) [Member]
Subsequent Event [Line Items]
Restricted stock units granted	75,000
Revolving Line [Member]
Subsequent Event [Line Items]
Term loan		0.75%
Loan Agreement [Member]
Subsequent Event [Line Items]
Line of credit facility current borrowing capacity		$ 750,000
Term loan		8.18%
Line of credit		$ 1,719,200
Security deposit		$ 80,000
Loan Agreement [Member] | Minimum [Member]
Subsequent Event [Line Items]
Term loan		1%
Loan Agreement [Member] | Maximum [Member]
Subsequent Event [Line Items]
Term loan		7.50%
Domestic Agreement [Member]
Subsequent Event [Line Items]
Term loan		1.25%
Debt instrument face amount		$ 2,500,000
International Agreement [Member]
Subsequent Event [Line Items]
Term loan		2%
Debt instrument face amount		$ 2,000,000