Superior Drilling Products (SDPI) 10-Q 13 Nov 23 2023 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2023	Nov. 13, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2023
Document Fiscal Period Focus	Q3
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		30,391,240

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Current assets
Cash and restricted cash	$ 4,314,674	$ 2,158,025
Accounts receivable	2,438,674	3,241,221
Prepaid expenses	533,329	367,823
Inventories	3,219,033	2,081,260
Asset held for sale		216,000
Other current assets	307,161	140,238
Total current assets	10,812,871	8,204,567
Property, plant and equipment, net	11,099,485	8,576,851
Intangible assets, net		69,444
Right of use assets	505,739	638,102
Other noncurrent assets	199,816	111,519
Total assets	22,617,911	17,600,483
Current liabilities
Accounts payable	2,910,443	1,043,581
Accrued expenses	945,248	891,793
Income tax payable	553,177	351,618
Current portion of operating lease liability	53,066	44,273
Current portion of financing obligation	81,259	74,636
Current portion of long-term debt	753,334	1,125,864
Other current liabilities		216,000
Total current liabilities	5,296,527	3,747,765
Operating lease liability, less current portion	334,410	523,375
Long-term financing obligation, less current portion	3,976,278	4,038,022
Long-term debt, net of current portion	1,702,976	529,499
Deferred income	675,000	675,000
Total liabilities	11,985,191	9,513,661
Commitments and contingencies (Note 9)
Shareholders’ equity
Common stock - $0.001 par value; 100,000,000 shares authorized; 30,391,240 and 29,245,080 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively	30,391	29,245
Additional paid-in-capital	44,638,455	43,943,928
Accumulated deficit	(34,036,126)	(35,886,351)
Total shareholders’ equity	10,632,720	8,086,822
Total liabilities and shareholders’ equity	$ 22,617,911	$ 17,600,483

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 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	30,391,240	29,245,080
Common stock, shares outstanding	30,391,240	29,245,080

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Revenue	$ 5,052,203	$ 5,172,545	$ 16,700,766	$ 13,843,552
Operating cost and expenses
Cost of revenue	2,003,791	2,230,705	6,256,918	6,114,705
Selling, general, and administrative expenses	2,584,740	1,723,221	7,381,020	5,264,270
Depreciation and amortization expense	337,653	362,773	1,013,116	1,176,151
Total operating cost and expenses	4,926,184	4,316,699	14,651,054	12,555,126
Operating income	126,019	855,846	2,049,712	1,288,426
Other income (expense)
Interest income	9,272	10,544	39,926	13,720
Interest expense	(200,485)	(154,108)	(484,442)	(410,707)
Recovery of related party note receivable			350,262
Loss on disposition of assets		(29,381)		(51,527)
Other income	198,894		198,894
Other expense	(43,000)		(43,000)
Total other income (expense)	(35,319)	(172,945)	61,640	(448,514)
Income before income taxes	90,700	682,901	2,111,352	839,912
Income tax expense	(76,861)	(44,169)	(261,127)	(107,852)
Net income	$ 13,839	$ 638,732	$ 1,850,225	$ 732,060
Earnings per common share - basic	$ 0	$ 0.02	$ 0.06	$ 0.03
Weighted average common shares outstanding – basic	29,895,347	28,845,456	29,409,602	28,440,722
Earnings per common share - diluted	$ 0	$ 0.02	$ 0.06	$ 0.03
Weighted average common shares outstanding – diluted	29,965,145	28,855,456	29,479,400	28,450,722

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash Flows from Operating Activities
Net income	$ 1,850,225	$ 732,060
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	1,013,115	1,176,151
Share-based compensation expense	689,265	640,816
Amortization of right-of-use assets	157,291
Amortization of deferred loan costs	6,100	13,893
Loss on disposition of assets		51,527
Changes in operating assets and liabilities:
Accounts receivable	802,547	(1,211,713)
Inventories	(1,137,773)	(446,866)
Prepaid expenses and other current assets	(420,726)	(777,457)
Accounts payable, accrued expenses, and other liabilities	1,022,422	1,100,571
Income tax payable	201,559	57,591
Net cash provided by operating activities	4,184,025	1,336,573
Cash Flows from Investing Activities
Purchases of property, plant and equipment	(3,123,770)	(2,600,902)
Proceeds from recovery of related party note receivable	350,262
Net cash used in investing activities	(2,773,508)	(2,600,902)
Cash Flows from Financing Activities
Principal payments on debt	(425,505)	(508,146)
Proceeds received from debt	2,072,406	997,134
Payments on revolving loans	(1,645,427)	(633,440)
Proceeds received from revolving loans	828,626	633,435
Payments of deferred loan costs	(90,376)
Proceeds from exercise of stock options	6,408
Net cash provided by financing activities	746,132	488,983
Net (decrease) increase in cash and restricted cash	2,156,649	(775,346)
Cash and restricted cash at beginning of period	2,158,025	2,822,100
Cash and restricted cash at end of period	4,314,674	2,046,754
Supplemental information:
Cash paid for interest	578,905	394,548
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	342,532	749,718
Non-cash item related to deferred income		$ 675,000

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	$ 1,010	639,809		640,819
Stock-based compensation expense, shares	1,010,079
Net income(loss)			732,060	732,060
Balance at Sep. 30, 2022	$ 29,245	43,711,010	(36,219,448)	7,520,807
Balance, shares at Sep. 30, 2022	29,245,080
Balance at Jun. 30, 2022	$ 28,235	43,493,802	(36,858,180)	6,663,857
Balance, shares at Jun. 30, 2022	28,235,001
Share-based compensation expense	$ 1,010	217,208		218,218
Stock-based compensation expense, shares	1,010,079
Net income(loss)			638,732	638,732
Balance at Sep. 30, 2022	$ 29,245	43,711,010	(36,219,448)	7,520,807
Balance, shares at Sep. 30, 2022	29,245,080
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	$ 1,138	688,127		689,265
Stock-based compensation expense, shares	1,138,368
Net income(loss)			1,850,225	1,850,225
Exercise of stock options	$ 8	6,400		6,408
Exercise of stock options, shares	7,792
Balance at Sep. 30, 2023	$ 30,391	44,638,455	(34,036,126)	10,632,720
Balance, shares at Sep. 30, 2023	30,391,240
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
Share-based compensation expense	$ 1,138	231,308		232,446
Stock-based compensation expense, shares	1,138,368
Net income(loss)			13,839	13,839
Balance at Sep. 30, 2023	$ 30,391	$ 44,638,455	$ (34,036,126)	$ 10,632,720
Balance, shares at Sep. 30, 2023	30,391,240

NATURE OF OPERATIONS AND SUMMAR

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 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 ® 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 nine months ended September 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 nine months ended September 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 nine months ended September 30, 2023. In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13 “Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments (Topic 326)” (“ASU 2016-13”) and in April 2019, the FASB issued ASU 2019-04 “Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” (“ASU 2019-04”) (collectively, the “CECL Standard”). These updates change how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value. The CECL Standard replaces the “incurred loss” approach under existing guidance with an “expected loss” model for instruments measured at amortized cost. The CECL Standard requires entities to record allowances for held-to-maturity and available-for-sale debt securities that is deducted from the carrying amount of the assets to present the net carrying value at the amounts expected to be collected on the assets. All assets subject to the CECL Standard, with few exceptions, will be subject to these allowances rather than only those assets where a loss is deemed probable under the other-than-temporary impairment model. Effective January 1, 2023, the Company adopted the standard using the prospective method with no impact to condensed consolidated financial statements. Concentrations of Credit Risk The Company has two significant customers that represented 85 89 2,145,000 2,741,000 The Company had two vendors that represented 14 12 608,000 0 Superior Drilling Products, Inc. N otes to the Condensed Consolidated Financial Statements (unaudited) Cash and Restricted Cash Cash and restricted cash were comprised of the following: SCHEDULE OF CASH AND RESTRICTED CASH September 30, 2023 December 31, 2022 Cash $ 4,104,958 $ 2,158,025 Restricted cash 209,716 - Cash and restricted cash $ 4,314,674 $ 2,158,025

REVENUE

REVENUE	9 Months Ended
	Sep. 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Tool revenue: Tool and product sales $ 684,000 $ 892,300 $ 2,830,380 $ 2,183,800 Tool rental 582,788 549,931 2,444,757 1,454,806 Other related revenue 1,989,246 1,900,996 5,787,447 5,365,449 Total tool revenue 3,256,034 3,343,227 11,062,584 9,004,055 Contract services 1,796,169 1,829,318 5,638,182 4,839,497 Total revenue $ 5,052,203 $ 5,172,545 $ 16,700,766 $ 13,843,552 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	9 Months Ended
	Sep. 30, 2023
Inventory Disclosure [Abstract]
INVENTORIES	3. INVENTORIES Inventories were comprised of the following: SCHEDULE OF INVENTORIES September 30, 2023 December 31, 2022 Raw material $ 1,937,937 $ 1,334,669 Work in progress 733,226 168,214 Finished goods 547,870 578,377 Total inventories $ 3,219,033 $ 2,081,260 Superior Drilling Products, Inc. N otes to the Condensed Consolidated Financial Statements (unaudited)

PROPERTY, PLANT & EQUIPMENT

PROPERTY, PLANT & EQUIPMENT	9 Months Ended
	Sep. 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 September 30, 2023 December 31, 2022 Land $ 880,416 $ 880,416 Buildings 4,773,137 4,764,441 Leasehold improvements 983,668 755,039 Machinery, equipment, and rental tools 17,775,040 14,546,060 Office equipment, fixtures and software 628,358 628,358 Transportation assets 265,760 265,760 Property, plant and equipment, gross 25,306,379 21,840,074 Accumulated depreciation (14,206,894 ) (13,263,223 ) Total property, plant and equipment, net $ 11,099,485 $ 8,576,851 Depreciation expense related to property, plant and equipment for the three months ended September 30, 2023 and 2022 was $ 337,653 321,106 943,671 1,051,151

INTANGIBLE ASSETS

INTANGIBLE ASSETS	9 Months Ended
	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
INTANGIBLE ASSETS	5. INTANGIBLE ASSETS Intangible assets were comprised of the following: SCHEDULE OF INTANGIBLE ASSETS September 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 September 30, 2023 and 2022 was $ 0 41,667 69,444 125,000

RELATED PARTY RECEIVABLE

RELATED PARTY RECEIVABLE	9 Months Ended
	Sep. 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 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 6,675,000 6,884,000 Superior Drilling Products, Inc. N otes to the Condensed Consolidated Financial Statements (unaudited)

LONG-TERM DEBT

LONG-TERM DEBT	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
LONG-TERM DEBT	7. LONG-TERM DEBT Long-term debt is comprised of the following: SCHEDULE OF DEBT OBLIGATIONS September 30, 2023 December 31, 2022 Loan Agreement $ 1,585,665 $ - Credit Agreement - 813,713 Machinery loans 558,804 664,674 Transportation loan 10,328 20,027 Insurance loan 301,513 156,949 Total long-term debt 2,456,310 1,655,363 Less: Current portion of long-term debt, net of discount and debt issuance costs (753,334 ) (1,125,864 ) Total long-term debt, net of current portion, net of discount and debt issuance costs $ 1,702,976 $ 529,499 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: The lesser of $ 750,000 50 July 28, 2025 ● Term Loan: $ 1,719,200 July 28, 2028 The interest rate per annum applicable to the Revolving Line is the greater of (a) Prime plus 1.00 7.50 9.50 8.18 0 1,673,000 The Loan Agreement contains customary covenants limiting, among other things, the incurrence of additional indebtedness, the creation of liens, mergers, consolidations, liquidations and dissolutions, sales of assets, dividends and other payments in respect of equity interests, acquisitions, investments, loans and guarantees, subject, in each case, to customary exceptions, thresholds and baskets. The Loan Agreement also includes certain financial covenants which include a current assets/liabilities ratio, a debt service coverage ratio and a leverage ratio, as defined in the Loan Agreement. The Loan Agreement also contains customary events of default. As of September 30, 2023, the Company was in compliance with all covenants. The Company’s obligations under the Loan Agreement are guaranteed by the Guarantors, and the obligations of the Company and any Guarantors are secured by a perfected first priority security interest in substantially all of the existing and future personal property of the Company and each Guarantor, subject to certain exceptions as noted in the Loan Agreement. Superior Drilling Products, Inc. N otes to the Condensed Consolidated Financial Statements (unaudited) 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 Machinery Loans The Company financed the purchase of machinery and equipment through various loans. The outstanding loans have interest rates ranging from 5.50 5.94 559,000 665,000 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 loan agreements . The term of the loans are 10 months and mature in March 2024 and July 2024. The interest rate of the loans are 7.08 7.53 302,000 157,000

FINANCING OBLIGATION LIABILITY

FINANCING OBLIGATION LIABILITY	9 Months Ended
	Sep. 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 55,121 48,455 The outstanding balance of the financing obligation liability is summarized below: SCHEDULE OF FINANCING OBLIGATION LIABILITY September 30, 2023 December 31, 2022 Financing obligation for sale-leaseback transaction $ 4,057,537 $ 4,112,658 Current principal portion of finance obligation (81,259 ) (74,636 ) Non-current portion of financing obligation $ 3,976,278 $ 4,038,022 Superior Drilling Products, Inc. N otes to the Condensed Consolidated Financial Statements (unaudited)

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 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, asserting that Stabil Drill Specialties, LLC’s (“Stabil Drill”) Smoothbore TM ® Daubert We are not currently involved in any other litigation. Disgorgement of short-swing profits Star Equity Holdings entered into purchases and sales of securities of Superior Drilling Products, Inc. that resulted in short-swing profits under Section 16(b) of the Exchange Act. The disgorgement statutory profits in the amount of $ 198,895

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Net income $ 13,839 $ 638,732 $ 1,850,225 $ 732,060 Denominator: Weighted average shares of common stock outstanding - basic 29,895,347 28,845,456 29,409,602 28,440,722 Effect of dilutive options 69,798 10,000 69,798 10,000 Weighted average shares of common stock outstanding - diluted 29,965,145 28,855,456 29,479,400 28,450,722 Earnings per common share – basic $ 0.00 $ 0.02 $ 0.06 $ 0.03 Earnings per common share - diluted $ 0.00 $ 0.02 $ 0.06 $ 0.03

LEASES

LEASES	9 Months Ended
	Sep. 30, 2023
Leases
LEASES	11. LEASES The Company leases certain facilities in Utah and Dubai under long-term operating leases with lease terms of one year three years 63,483 52,749 189,320 77,791 Other information related to operating leases: SCHEDULE OF OTHER INFORMATION RELATED TO OPERATING LEASE Nine Months Ended September 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows $ 237,129 $ 194,194 Weighted average remaining lease-term (in years) 2.19 3.11 Weighted average discount rate 7.25 % 7.25 % Superior Drilling Products, Inc. N otes to the Condensed Consolidated Financial Statements (unaudited)

SEGMENT REPORTING

SEGMENT REPORTING	9 Months Ended
	Sep. 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. The following table summarizes information about our segments: SCHEDULE OF SEGMENTS INFORMATION WITH GEOGRAPHIC AREAS 2023 2022 2023 2022 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenue: North America $ 4,469,415 $ 4,622,614 $ 14,269,529 $ 12,388,746 International 582,788 549,931 2,431,237 1,454,806 Total revenue $ 5,052,203 $ 5,172,545 $ 16,700,766 $ 13,843,552 Operating income: North America $ 3,090,249 $ 2,491,559 $ 9,532,896 $ 6,717,159 International (379,498 ) 87,067 (102,432 ) (165,035 ) Corporate costs, unallocated (2,584,732 ) (1,722,780 ) (7,380,752 ) (5,263,698 ) Total operating income $ 126,019 $ 855,846 $ 2,049,712 $ 1,288,426 North America revenue includes revenue from customers in Mexico totaling approximately $ 16,000 59,000 46,000 59,000 Information about products and services See Note 2 – Revenue

TRANSFER OF FINANCIAL ASSETS

TRANSFER OF FINANCIAL ASSETS	9 Months Ended
	Sep. 30, 2023
Transfers and Servicing [Abstract]
TRANSFER OF FINANCIAL ASSETS	13. TRANSFER OF FINANCIAL ASSETS In connection with entering into 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 Superior Drilling Products, Inc. N otes to the Condensed Consolidated Financial Statements (unaudited) Generally, at the transfer date, the Company receives cash equal to 90 % of the value of the sold domestic accounts receivable and 60 % of the value of the sold international accounts receivable, less the service charge. The remaining balance is held back as a reserve. The reserve balance is carried at fair value, which is remeasured monthly to take into account activity during the period (the Company’s interest in newly-transferred receivables and collections on previously transferred receivables), as well as changes in estimates of future interest rates and anticipated credit losses. Fluctuations in interest rates and revised estimates of credit losses were zero as of September 30, 2023. The carrying amount of the reserve was $ 209,716 as of September 30, 2023 and is classified within cash and restricted cash on the condensed consolidated balance sheet. The Company accounts for trade receivable transfers as sales and derecognizes the sold receivables from the condensed consolidated balance sheets. During both the three and nine months ended September 30, 2023, the Company sold receivables to the Lender having an aggregate face value of $ 2,354,306 in exchange for cash proceeds of $ 2,168,652 . Cash received from the selling of receivables are presented as a change in trade receivables within the operating activities section of the condensed consolidated statements of cash flows. Service fees for the period totaled $ 41,491 , which are initially recorded as prepaids in the condensed consolidated balance sheets and amortized over 45 days. The Company recognized expense of $ 36,401 related to the service fees for both the three and nine months ended September 30, 2023, which is included in interest expense in the condensed consolidated statements of operations. The outstanding principal amount of the receivables sold under this facility amounted to $ 1,110,021 as of September 30, 2023.

NATURE OF OPERATIONS AND SUMM_2

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 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 ® 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 nine months ended September 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 nine months ended September 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	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 nine months ended September 30, 2023. In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13 “Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments (Topic 326)” (“ASU 2016-13”) and in April 2019, the FASB issued ASU 2019-04 “Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” (“ASU 2019-04”) (collectively, the “CECL Standard”). These updates change how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value. The CECL Standard replaces the “incurred loss” approach under existing guidance with an “expected loss” model for instruments measured at amortized cost. The CECL Standard requires entities to record allowances for held-to-maturity and available-for-sale debt securities that is deducted from the carrying amount of the assets to present the net carrying value at the amounts expected to be collected on the assets. All assets subject to the CECL Standard, with few exceptions, will be subject to these allowances rather than only those assets where a loss is deemed probable under the other-than-temporary impairment model. Effective January 1, 2023, the Company adopted the standard using the prospective method with no impact to condensed consolidated financial statements.
Concentrations of Credit Risk	Concentrations of Credit Risk The Company has two significant customers that represented 85 89 2,145,000 2,741,000 The Company had two vendors that represented 14 12 608,000 0 Superior Drilling Products, Inc. N otes to the Condensed Consolidated Financial Statements (unaudited)
Cash and Restricted Cash	Cash and Restricted Cash Cash and restricted cash were comprised of the following: SCHEDULE OF CASH AND RESTRICTED CASH September 30, 2023 December 31, 2022 Cash $ 4,104,958 $ 2,158,025 Restricted cash 209,716 - Cash and restricted cash $ 4,314,674 $ 2,158,025

NATURE OF OPERATIONS AND SUMM_3

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
SCHEDULE OF CASH AND RESTRICTED CASH	Cash and restricted cash were comprised of the following: SCHEDULE OF CASH AND RESTRICTED CASH September 30, 2023 December 31, 2022 Cash $ 4,104,958 $ 2,158,025 Restricted cash 209,716 - Cash and restricted cash $ 4,314,674 $ 2,158,025

REVENUE (Tables)

REVENUE (Tables)	9 Months Ended
	Sep. 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Tool revenue: Tool and product sales $ 684,000 $ 892,300 $ 2,830,380 $ 2,183,800 Tool rental 582,788 549,931 2,444,757 1,454,806 Other related revenue 1,989,246 1,900,996 5,787,447 5,365,449 Total tool revenue 3,256,034 3,343,227 11,062,584 9,004,055 Contract services 1,796,169 1,829,318 5,638,182 4,839,497 Total revenue $ 5,052,203 $ 5,172,545 $ 16,700,766 $ 13,843,552

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Sep. 30, 2023
Inventory Disclosure [Abstract]
SCHEDULE OF INVENTORIES	Inventories were comprised of the following: SCHEDULE OF INVENTORIES September 30, 2023 December 31, 2022 Raw material $ 1,937,937 $ 1,334,669 Work in progress 733,226 168,214 Finished goods 547,870 578,377 Total inventories $ 3,219,033 $ 2,081,260

PROPERTY, PLANT & EQUIPMENT (Ta

PROPERTY, PLANT & EQUIPMENT (Tables)	9 Months Ended
	Sep. 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 September 30, 2023 December 31, 2022 Land $ 880,416 $ 880,416 Buildings 4,773,137 4,764,441 Leasehold improvements 983,668 755,039 Machinery, equipment, and rental tools 17,775,040 14,546,060 Office equipment, fixtures and software 628,358 628,358 Transportation assets 265,760 265,760 Property, plant and equipment, gross 25,306,379 21,840,074 Accumulated depreciation (14,206,894 ) (13,263,223 ) Total property, plant and equipment, net $ 11,099,485 $ 8,576,851

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
SCHEDULE OF INTANGIBLE ASSETS	Intangible assets were comprised of the following: SCHEDULE OF INTANGIBLE ASSETS September 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)	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
SCHEDULE OF DEBT OBLIGATIONS	Long-term debt is comprised of the following: SCHEDULE OF DEBT OBLIGATIONS September 30, 2023 December 31, 2022 Loan Agreement $ 1,585,665 $ - Credit Agreement - 813,713 Machinery loans 558,804 664,674 Transportation loan 10,328 20,027 Insurance loan 301,513 156,949 Total long-term debt 2,456,310 1,655,363 Less: Current portion of long-term debt, net of discount and debt issuance costs (753,334 ) (1,125,864 ) Total long-term debt, net of current portion, net of discount and debt issuance costs $ 1,702,976 $ 529,499

FINANCING OBLIGATION LIABILITY

FINANCING OBLIGATION LIABILITY (Tables)	9 Months Ended
	Sep. 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 September 30, 2023 December 31, 2022 Financing obligation for sale-leaseback transaction $ 4,057,537 $ 4,112,658 Current principal portion of finance obligation (81,259 ) (74,636 ) Non-current portion of financing obligation $ 3,976,278 $ 4,038,022

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Net income $ 13,839 $ 638,732 $ 1,850,225 $ 732,060 Denominator: Weighted average shares of common stock outstanding - basic 29,895,347 28,845,456 29,409,602 28,440,722 Effect of dilutive options 69,798 10,000 69,798 10,000 Weighted average shares of common stock outstanding - diluted 29,965,145 28,855,456 29,479,400 28,450,722 Earnings per common share – basic $ 0.00 $ 0.02 $ 0.06 $ 0.03 Earnings per common share - diluted $ 0.00 $ 0.02 $ 0.06 $ 0.03

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Sep. 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 Nine Months Ended September 30, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows $ 237,129 $ 194,194 Weighted average remaining lease-term (in years) 2.19 3.11 Weighted average discount rate 7.25 % 7.25 %

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	9 Months Ended
	Sep. 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 September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Revenue: North America $ 4,469,415 $ 4,622,614 $ 14,269,529 $ 12,388,746 International 582,788 549,931 2,431,237 1,454,806 Total revenue $ 5,052,203 $ 5,172,545 $ 16,700,766 $ 13,843,552 Operating income: North America $ 3,090,249 $ 2,491,559 $ 9,532,896 $ 6,717,159 International (379,498 ) 87,067 (102,432 ) (165,035 ) Corporate costs, unallocated (2,584,732 ) (1,722,780 ) (7,380,752 ) (5,263,698 ) Total operating income $ 126,019 $ 855,846 $ 2,049,712 $ 1,288,426

SCHEDULE OF CASH AND RESTRICTED

SCHEDULE OF CASH AND RESTRICTED CASH (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash	$ 4,104,958	$ 2,158,025
Restricted cash	209,716
Cash and restricted cash	$ 4,314,674	$ 2,158,025

NATURE OF OPERATIONS AND SUMM_4

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Product Information [Line Items]
Accounts payable current	$ 2,910,443		$ 1,043,581
Two Vendors [Member]
Product Information [Line Items]
Accounts payable current	608,000		0
Two Customers [Member]
Product Information [Line Items]
Accounts receivable	$ 2,145,000		$ 2,741,000
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Two Customers [Member]
Product Information [Line Items]
Concentration risk percentage	85%	89%
Supplier Concentration Risk [Member] | Purchases [Member] | Two Vendors [Member]
Product Information [Line Items]
Concentration risk percentage	14%	12%

SCHEDULE OF REVENUE DISAGGREGAT

SCHEDULE OF REVENUE DISAGGREGATED BY REVENUE (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue [Line Items]
Total revenue	$ 5,052,203	$ 5,172,545	$ 16,700,766	$ 13,843,552
Tools And Product Sales [Member]
Disaggregation of Revenue [Line Items]
Total revenue	684,000	892,300	2,830,380	2,183,800
Tool Rental [Member]
Disaggregation of Revenue [Line Items]
Total revenue	582,788	549,931	2,444,757	1,454,806
Other Related Tool Revenue [Member]
Disaggregation of Revenue [Line Items]
Total revenue	1,989,246	1,900,996	5,787,447	5,365,449
Tool Revenue [Member]
Disaggregation of Revenue [Line Items]
Total revenue	3,256,034	3,343,227	11,062,584	9,004,055
Contract Services [Member]
Disaggregation of Revenue [Line Items]
Total revenue	$ 1,796,169	$ 1,829,318	$ 5,638,182	$ 4,839,497

SCHEDULE OF INVENTORIES (Detail

SCHEDULE OF INVENTORIES (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw material	$ 1,937,937	$ 1,334,669
Work in progress	733,226	168,214
Finished goods	547,870	578,377
Total inventories	$ 3,219,033	$ 2,081,260

SCHEDULE OF PROPERTY, PLANT AND

SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Land	$ 880,416	$ 880,416
Buildings	4,773,137	4,764,441
Leasehold improvements	983,668	755,039
Machinery, equipment, and rental tools	17,775,040	14,546,060
Office equipment, fixtures and software	628,358	628,358
Transportation assets	265,760	265,760
Property, plant and equipment, gross	25,306,379	21,840,074
Accumulated depreciation	(14,206,894)	(13,263,223)
Total property, plant and equipment, net	$ 11,099,485	$ 8,576,851

PROPERTY, PLANT & EQUIPMENT (De

PROPERTY, PLANT & EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Property, Plant and Equipment [Abstract]
Depreciation expense related to property, plant and equipment	$ 337,653	$ 321,106	$ 943,671	$ 1,051,151

SCHEDULE OF INTANGIBLE ASSETS (

SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
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]
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		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 0	$ 41,667	$ 69,444	$ 125,000

RELATED PARTY RECEIVABLE (Detai

RELATED PARTY RECEIVABLE (Details Narrative) - Tronco Energy Corporation [Member] - USD ($)	Mar. 31, 2023	Mar. 24, 2023	Aug. 31, 2017	Sep. 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	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				$ 6,675,000	$ 6,884,000

SCHEDULE OF DEBT OBLIGATIONS (D

SCHEDULE OF DEBT OBLIGATIONS (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Total long-term debt	$ 2,456,310	$ 1,655,363
Less: Current portion of long-term debt, net of discount and debt issuance costs	(753,334)	(1,125,864)
Total long-term debt, net of current portion, net of discount and debt issuance costs	1,702,976	529,499
Loan Agreement [Member]
Debt Instrument [Line Items]
Total long-term debt	1,585,665
Credit Agreement [Member]
Debt Instrument [Line Items]
Total long-term debt		813,713
Machinery Loans [Member]
Debt Instrument [Line Items]
Total long-term debt	558,804	664,674
Transportation Loans [Member]
Debt Instrument [Line Items]
Total long-term debt	10,328	20,027
Insurance Loan [Member]
Debt Instrument [Line Items]
Total long-term debt	$ 301,513	$ 156,949

LONG-TERM DEBT (Details Narrati

LONG-TERM DEBT (Details Narrative) - USD ($)	1 Months Ended	9 Months Ended
	Jul. 28, 2023	Sep. 30, 2023	Dec. 31, 2022	Feb. 28, 2019
Term Loan [Member]
Short-Term Debt [Line Items]
Term loan	8.18%
Equipment Loans [Member]
Short-Term Debt [Line Items]
Notes payable		$ 559,000	$ 665,000
Equipment Loans [Member] | Minimum [Member]
Short-Term Debt [Line Items]
Term loan		5.50%
Equipment Loans [Member] | Maximum [Member]
Short-Term Debt [Line Items]
Term loan		5.94%
Transportation Loans [Member]
Short-Term Debt [Line Items]
Term loan		6.99%
Loan matures		June 2024
Insurance Loans [Member]
Short-Term Debt [Line Items]
Term loan		7.08%	7.53%
Notes payable		$ 302,000	$ 157,000
Loan Agreement [Member] | Revolving Line [Member]
Short-Term Debt [Line Items]
Line of credit facility current borrowing capacity	$ 750,000	0
Term loan	50%
Loan maturity date	Jul. 28, 2025
Loan Agreement [Member] | Term Loan [Member]
Short-Term Debt [Line Items]
Loan maturity date	Jul. 28, 2028
Long term line of credit	$ 1,719,200	$ 1,673,000
Loan and security agreement [Member] | Austin Financial Services Inc [Member]
Short-Term Debt [Line Items]
Long term line of credit				$ 4,300,000
Loan and security agreement [Member] | Austin Financial Services Inc [Member] | Term Loan [Member]
Short-Term Debt [Line Items]
Long term line of credit				800,000
Loan and security agreement [Member] | Austin Financial Services Inc [Member] | Revolving Credit Facility [Member]
Short-Term Debt [Line Items]
Long term line of credit				$ 3,500,000
Loan and security agreement [Member] | Revolving Line [Member]
Short-Term Debt [Line Items]
Line of credit interest rate	1%
Management fee rate, percentage		9.50%
Maximum [Member] | Revolving Line [Member]
Short-Term Debt [Line Items]
Line of credit interest rate	7.50%

SCHEDULE OF FINANCING OBLIGATIO

SCHEDULE OF FINANCING OBLIGATION LIABILITY (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Financing Obligation Liability
Financing obligation for sale-leaseback transaction	$ 4,057,537	$ 4,112,658
Current principal portion of finance obligation	(81,259)	(74,636)
Non-current portion of financing obligation	$ 3,976,278	$ 4,038,022

FINANCING OBLIGATION LIABILIT_2

FINANCING OBLIGATION LIABILITY (Details Narrative) - USD ($)		9 Months Ended
	Dec. 07, 2020	Sep. 30, 2023	Sep. 30, 2022
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Purchase price		$ 3,123,770	$ 2,600,902
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		$ 55,121	$ 48,455
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%

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Narrative)	9 Months Ended
	Sep. 30, 2023 USD ($)
Star Equity Holdings [Member]
Purchases and sales of securities	$ 198,895

SCHEDULE OF BASIC AND DILUTED E

SCHEDULE OF BASIC AND DILUTED EARNINGS PER SHARE (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Numerator:
Net income	$ 13,839	$ 638,732	$ 1,850,225	$ 732,060
Denominator:
Weighted average shares of common stock outstanding - basic	29,895,347	28,845,456	29,409,602	28,440,722
Effect of dilutive options	69,798	10,000	69,798	10,000
Weighted average shares of common stock outstanding - diluted	29,965,145	28,855,456	29,479,400	28,450,722
Earnings per common share – basic	$ 0	$ 0.02	$ 0.06	$ 0.03
Earnings per common share - diluted	$ 0	$ 0.02	$ 0.06	$ 0.03

SCHEDULE OF OTHER INFORMATION R

SCHEDULE OF OTHER INFORMATION RELATED TO OPERATING LEASE (Details) - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Leases
Operating cash flows	$ 237,129	$ 194,194
Weighted average remaining lease term	2 years 2 months 8 days	3 years 1 month 9 days
Weighted average discount rate	7.25%	7.25%

LEASES (Details Narrative)

LEASES (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Operating lease expense	$ 63,483	$ 52,749	$ 189,320	$ 77,791
Minimum [Member]
Operating lease term	1 year		1 year
Maximum [Member]
Operating lease term	3 years		3 years

SCHEDULE OF SEGMENTS INFORMATIO

SCHEDULE OF SEGMENTS INFORMATION WITH GEOGRAPHIC AREAS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue:
Total revenue	$ 5,052,203	$ 5,172,545	$ 16,700,766	$ 13,843,552
Operating income:
Total operating income	126,019	855,846	2,049,712	1,288,426
North America [Member]
Revenue:
Total revenue	4,469,415	4,622,614	14,269,529	12,388,746
Operating income:
Total operating income	3,090,249	2,491,559	9,532,896	6,717,159
International [Member]
Revenue:
Total revenue	582,788	549,931	2,431,237	1,454,806
Operating income:
Total operating income	(379,498)	87,067	(102,432)	(165,035)
Corporate Costs Unallocated [Member]
Operating income:
Total operating income	$ (2,584,732)	$ (1,722,780)	$ (7,380,752)	$ (5,263,698)

SEGMENT REPORTING (Details Narr

SEGMENT REPORTING (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 5,052,203	$ 5,172,545	$ 16,700,766	$ 13,843,552
MEXICO
Revenues from External Customers and Long-Lived Assets [Line Items]
Total revenue	$ 16,000	$ 59,000	$ 46,000	$ 59,000

TRANSFER OF FINANCIAL ASSETS (D

TRANSFER OF FINANCIAL ASSETS (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Customer Securities for which Entity has Right to Sell or Repledge (Including Securities Sold or Repledged) [Line Items]
Accounts Receivable, after Allowance for Credit Loss, Current	$ 2,438,674	$ 3,241,221
Prepaid Expense, Current	533,329	$ 367,823
Cash And Restricted Cash [Member]
Customer Securities for which Entity has Right to Sell or Repledge (Including Securities Sold or Repledged) [Line Items]
Assets, Fair Value Disclosure	209,716
Domestic Agreement [Member]
Customer Securities for which Entity has Right to Sell or Repledge (Including Securities Sold or Repledged) [Line Items]
Debt instrument face amount	$ 2,500,000
Debt Instrument, Interest Rate, Stated Percentage	1.25%
Domestic Agreement [Member] | Service [Member]
Customer Securities for which Entity has Right to Sell or Repledge (Including Securities Sold or Repledged) [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	90%
International Agreement [Member]
Customer Securities for which Entity has Right to Sell or Repledge (Including Securities Sold or Repledged) [Line Items]
Debt instrument face amount	$ 2,000,000
Debt Instrument, Interest Rate, Stated Percentage	2%
International Account Receivable [Member] | Service [Member]
Customer Securities for which Entity has Right to Sell or Repledge (Including Securities Sold or Repledged) [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	60%
Loan Agreement [Member]
Customer Securities for which Entity has Right to Sell or Repledge (Including Securities Sold or Repledged) [Line Items]
Debt instrument face amount	$ 1,110,021
Accounts Receivable, after Allowance for Credit Loss, Current	2,354,306
Accounts Receivable, Sale	2,168,652
Prepaid Expense, Current	41,491
Payments for Other Fees	$ 36,401