Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 23, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 001-36453 | ||
Entity Registrant Name | SUPERIOR DRILLING PRODUCTS, INC. | ||
Entity Central Index Key | 0001600422 | ||
Entity Tax Identification Number | 46-4341605 | ||
Entity Incorporation, State or Country Code | UT | ||
Entity Address, Address Line One | 1583 South 1700 East | ||
Entity Address, City or Town | Vernal | ||
Entity Address, State or Province | UT | ||
Entity Address, Postal Zip Code | 84078 | ||
City Area Code | 435 | ||
Local Phone Number | 789-0594 | ||
Title of 12(b) Security | Common Stock, $0.001 par value | ||
Trading Symbol | SDPI | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 Public Float | $ 8,155,000 | ||
Entity Common Stock, Shares Outstanding | 28,235,001 | ||
Documents Incorporated By Reference | NONE | ||
ICFR Auditor Attestation Flag | false | ||
Auditor Firm ID | 659 | ||
Auditor Name | Moss Adams LLP | ||
Auditor Location | Dallas, Texas |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash | $ 2,822,100 | $ 1,961,441 |
Accounts receivable, net | 2,871,932 | 1,345,622 |
Prepaid expenses | 435,595 | 90,269 |
Inventories | 1,174,635 | 1,020,008 |
Asset held for sale | 40,000 | |
Other current assets | 55,159 | 40,620 |
Total current assets | 7,359,421 | 4,497,960 |
Property, plant and equipment, net | 6,930,329 | 7,535,098 |
Intangible assets, net | 236,111 | 819,444 |
Right of use assets | 20,518 | 99,831 |
Other noncurrent assets | 65,880 | 87,490 |
Total assets | 14,612,259 | 13,039,823 |
Current liabilities | ||
Accounts payable | 1,139,091 | 430,014 |
Accrued expenses | 467,462 | 1,091,519 |
Income tax payable | 206,490 | 106,446 |
Current portion of operating lease liability | 13,716 | 79,313 |
Current portion of financial obligation | 65,678 | 61,691 |
Current portion of long-term debt, net of discounts | 2,195,759 | 1,397,337 |
Total current liabilities | 4,088,196 | 3,166,320 |
Operating lease liability | 6,802 | 20,518 |
Long-term financial obligation, less current portion | 4,112,658 | 4,178,261 |
Long-term debt, less current portion, net of discounts | 256,675 | 1,451,049 |
Total liabilities | 8,464,331 | 8,816,148 |
Commitments and contingencies | ||
Shareholders’ equity | ||
Common stock - $0.001 par value; 100,000,000 shares authorized; 28,235,001 and 25,762,342 shares issued and outstanding, respectively | 28,235 | 25,762 |
Additional paid-in-capital | 43,071,201 | 40,619,620 |
Accumulated deficit | (36,951,508) | (36,421,707) |
Total shareholders’ equity | 6,147,928 | 4,223,675 |
Total liabilities and shareholders’ equity | $ 14,612,259 | $ 13,039,823 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 28,235,001 | 25,762,342 |
Common stock, shares outstanding | 28,235,001 | 25,762,342 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | ||
Total Revenue | $ 13,336,149 | $ 10,470,798 |
Operating cost and expenses | ||
Cost of revenue | 5,618,844 | 5,105,677 |
Selling, general, and administrative expenses | 6,200,522 | 6,371,337 |
Depreciation and amortization expense | 2,103,534 | 2,816,396 |
Total operating costs and expenses | 13,922,900 | 14,293,410 |
Operating income (loss) | (586,751) | (3,822,612) |
Other income (expense) | ||
Interest income | 228 | 5,803 |
Interest expense | (539,390) | (575,306) |
Recovery of related party note receivable | 707,112 | |
Impairment on asset held for sale | (30,000) | |
(Loss)/gain on disposition of assets | (249) | 174,234 |
Gain on loan forgiveness | 933,003 | |
Total other income (expense) | 167,701 | 507,734 |
Loss before income taxes | (419,050) | (3,314,878) |
Income tax expense | (110,751) | (114,996) |
Net loss | $ (529,801) | $ (3,429,874) |
Basic loss per common share | $ (0.02) | $ (0.13) |
Basic weighted average common shares outstanding | 26,391,538 | 25,515,166 |
Diluted loss per common share | $ (0.02) | $ (0.13) |
Diluted weighted average Common shares outstanding | 26,391,538 | 25,515,166 |
Tool Revenue [Member] | ||
Revenue | ||
Total Revenue | $ 9,244,482 | $ 7,050,536 |
Contract Services [Member] | ||
Revenue | ||
Total Revenue | $ 4,091,667 | $ 3,420,262 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance at Dec. 31, 2019 | $ 25,418 | $ 40,069,391 | $ (32,991,833) | $ 7,102,976 |
Beginning balance, shares at Dec. 31, 2019 | 25,418,126 | |||
Stock-based compensation expense | $ 344 | 550,229 | 550,573 | |
Stock-based compensation expense, shares | 344,216 | |||
Net loss | (3,429,874) | (3,429,874) | ||
Ending balance at Dec. 31, 2020 | $ 25,762 | 40,619,620 | (36,421,707) | 4,223,675 |
Ending balance, shares at Dec. 31, 2020 | 25,762,342 | |||
Stock-based compensation expense | $ 734 | 756,009 | 756,743 | |
Stock-based compensation expense, shares | 733,528 | |||
Net loss | (529,801) | (529,801) | ||
Common stock issuance | $ 1,739 | 1,695,572 | 1,697,311 | |
Common stock issuance, shares | 1,739,131 | |||
Ending balance at Dec. 31, 2021 | $ 28,235 | $ 43,071,201 | $ (36,951,508) | $ 6,147,928 |
Ending balance, shares at Dec. 31, 2021 | 28,235,001 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities | ||
Net loss | $ (529,801) | $ (3,429,874) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization expense | 2,103,534 | 2,816,396 |
Share based compensation expense | 756,743 | 550,573 |
Impairment on asset held for sale | 30,000 | |
Amortization of deferred loan cost | 18,522 | 18,525 |
Loss on disposition of rental fleet | 23,649 | |
Gain on loan forgiveness | (933,003) | |
Loss/(gain) on disposition of assets | 249 | (174,234) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,526,310) | 2,504,887 |
Inventories | (143,590) | (95,976) |
Prepaid expenses and other current assets | (338,255) | 266,488 |
Accounts payable and accrued expenses | 85,020 | (85,630) |
Income tax payable | 100,044 | 90,566 |
Other long-term liabilities | (61,421) | |
Net Cash (Used in) Provided by Operating Activities | 526,156 | 1,520,946 |
Cash Flows From Investing Activities | ||
Purchases of property, plant and equipment | (936,718) | (1,167,346) |
Proceeds from sale of fixed assets | 50,000 | 149,833 |
Net Cash Used in Investing Activities | (886,718) | (1,017,513) |
Cash Flows from Financing Activities | ||
Principal payments on debt | (1,277,730) | (2,350,783) |
Principal received from debt borrowings | 72,520 | |
Proceeds received from Paycheck Protection Program | 891,600 | |
Payments on revolving loan | (895,787) | (1,179,768) |
Proceeds received from revolving loan | 1,697,427 | 1,185,319 |
Proceeds from financing obligation | 1,622,106 | |
Proceeds from issuance of common stock | 1,697,311 | |
Net Cash Provided by Financing Activities | 1,221,221 | 240,994 |
Net Change in Cash | 860,659 | 744,427 |
Cash at Beginning of Period | 1,961,441 | 1,217,014 |
Cash at End of Period | 2,822,100 | 1,961,441 |
Supplemental information: | ||
Cash paid for Interest | 530,898 | 576,854 |
Debt retired from financing obligation | 2,638,773 | |
Long term debt retired with proceeds from sale of airplane | $ 211,667 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Nature of Operations Superior Drilling Products, Inc. (the “Company”, “SDPI”, “we”, “our” or “us”) is an innovative drilling and completion tool technology company providing cost saving solutions that drive production efficiencies for the oil and natural gas drilling industry. Our headquarters and manufacturing operations are located in Vernal, Utah. Our drilling solutions include the patented Drill-N-Ream® well bore conditioning tool (“Drill-N-Ream tool”) and the patented Strider™ Drill String Oscillation System technology (“Strider technology” or “Strider”). In addition, the Company is a manufacturer and refurbisher of PDC (polycrystalline diamond compact) drill bits for a leading oil field services company. We operate a state-of-the-art drill tool fabrication facility, where we manufacture solutions for the drilling industry, as well as customers’ custom products. Our subsidiaries include (a) Superior Drilling Solutions, LLC (previously known as Superior Drilling Products, LLC), a Utah limited liability company (“SDS”), together with its wholly owned subsidiary Superior Design and Fabrication, LLC, a Utah limited liability company (“SDF”), (b) Extreme Technologies, LLC, a Utah limited liability company (“ET”), (c) Meier Properties Series, LLC, a Utah limited liability company (“MPS”), (d) Meier Leasing, LLC, a Utah limited liability company (“ML”), and (e) Hard Rock Solutions, LLC (“HR” or “Hard Rock”). Basis of Presentation The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the accounts of Superior Drilling Products Inc. and all of its wholly-owned subsidiaries. All significant intercompany accounts have been eliminated in consolidation. The Company does not have investments in any unconsolidated subsidiaries. Segment Reporting We operate as a single operating segment, which reflects how we manage our business. We operate in North America and the Middle East. See Note 13 – Geographical Operations Information. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant items subject to estimates and assumptions include the carrying amount and useful lives of property and equipment and intangible assets, impairment assessments, share-based compensation expense, and valuation allowances for accounts receivable, inventories, and deferred tax assets. Revenue Recognition We account for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), except for tool rental revenue. Under ASC 606 revenue is measured based on a consideration specified in a customer’s contract, excluding any sale incentives and taxes collected on behalf of third parties. Revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration that we expect to receive for those goods or services. To recognize revenue, we (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when, or as, we satisfy the performance obligation(s). Shipping and handling costs incurred are accounted for as fulfillment costs and are included in cost of revenues in the statements of operations. Tool sales, rentals and other related revenue Tool and Product Sales Tool Rental Other Related Revenue: Contract Services Drill Bit Manufacturing and Refurbishment See Note 2– Revenue. Cash We maintain cash deposits with financial institutions that may exceed federally insured limits at times. We have chosen credible institutions and believe our risk of loss is negligible. Fair Value of Financial Instruments The Company’s financial instruments consist of cash, receivables, payables, and bank debt. The Company believes that the carrying values of these instruments on the accompanying consolidated balance sheets approximate their fair values due to the relatively short period to maturity for these instruments. Accounts Receivable and Allowance for Doubtful Accounts Domestically accounts receivable are generally due within 60 days of the invoice date. Internationally our due date terms are generally 90 days from the invoice date. No interest is charged on past-due balances. We grant credit to our customers based upon an evaluation of each customer’s financial condition. We periodically monitor the payment history and ongoing creditworthiness of our customers. An allowance for doubtful accounts is established at a level estimated by management to be adequate based upon various factors including historical experience, aging status of customer accounts, payment history and financial condition of our customers. The allowance for doubtful accounts was $ 0 Inventories Inventories consist of raw materials, work-in-process and finished goods and are stated at the lower of cost, determined using the weighted-average cost method, or net realizable value. Finished goods inventories include raw materials, direct labor and production overhead. The Company regularly reviews inventories on hand and current market conditions to determine if the cost of finished goods inventories exceed current market prices and impairs the cost basis of the inventory accordingly. Assets and Liabilities Held for Sale The Company classifies disposal groups as held for sale in the period in which all of the following criteria are met: (1) management, having the authority to approve the action, commits to a plan to sell the disposal group; (2) the disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such disposal groups; (3) an active program to locate a buyer or buyers and other actions required to complete the plan to sell the disposal group have been initiated; (4) the sale of the disposal group is probable, and transfer of the disposal group is expected to qualify for recognition as a completed sale, within one year, except if events of circumstances beyond the Company’s control extend the period of time required to sell the disposal group beyond one year; (5) the disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (6) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A disposal group that is classified as held for sale is initially measured at the lower of its carrying amount or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Subsequent changes in the fair value of a disposal group less any costs to sell are reported as an adjustment to the carrying amount of the disposal group, as long as the new carrying amount does not exceed the carrying amount of the asset at the time it was initially classified as held for sale. Upon determining that a disposal group meets the criteria to be classified as held for sale, the Company reports the assets and liabilities of the disposal group for all periods presented in the line items assets held for sale and liabilities held for sale, respectively, in the consolidated balance sheets. Property, Plant and Equipment Property, plant and equipment is stated at cost. The cost of ordinary maintenance and repair is charged to operating expense, while replacement of critical components and major improvements are capitalized. Depreciation or amortization of property and equipment, is calculated using the straight-line method over the asset’s estimated useful life as follows: SCHEDULE OF ASSET'S ESTIMATED USEFUL LIFE Buildings and leasehold Improvements 2 39 Machinery, equipment and rental tools 18 10 Office equipment, fixtures and software 3 7 Transportation equipment 5 30 Property, plant and equipment is reviewed for impairment on an annual basis or whenever events or changes in circumstances indicate the carrying value of an asset or asset group may not be recoverable. Indicative events or circumstances include, but are not limited to, matters such as a significant decline in market value or a significant change in business climate. An impairment loss is recognized when the carrying value of an asset exceeds the estimated undiscounted future cash flows from the use of the asset and its eventual disposition. The amount of impairment loss recognized is the excess of the asset’s carrying value over its fair value. Assets to be disposed of are reported at the lower of the carrying value or the fair value less cost to sell. Upon sale or other disposition of an asset, the Company recognizes a gain or loss on disposal measured as the difference between the net carrying value of the asset and the net proceeds received. Intangible Assets The Company’s intangible assets with finite lives consist of developed technology, customer contracts and relationships, and trade names and trademarks. The cost of intangible assets with finite lives is amortized using the straight-line method over the estimated period of economic benefit, ranging from 5 9 Intangible assets with finite lives are tested for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable. These conditions may include a change in the extent or manner in which the asset is being used or a change in future operations. The Company assesses the recoverability of the carrying amount by preparing estimates of future revenue, margins, and cash flows. If the sum of expected future cash flows (undiscounted and without interest charges) is less than the carrying amount, an impairment loss is recognized. The impairment loss recognized is the amount by which the carrying amount exceeds the fair value. Fair value of these assets may be determined by a variety of methodologies, including discounted cash flow models. Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires assets and liabilities that arise from all leases to be recognized on the balance sheet for lessees and expanded financial statement disclosures for both lessees and lessors. We adopted the new standard effective January 1, 2020 and elected the modified retrospective transition method. The adoption of this standard resulted in approximately $ 270,000 20,518 Research and Development We expense research and development costs as they are incurred. For the years ended December 31, 2021 and 2020, these expenses were approximately $ 672,000 790,000 Earnings (Loss) Per Share Basic earnings (loss) per common share is calculated by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share is calculated by dividing net income (loss) attributable to common shareholders by the weighted average number of common shares outstanding, including potentially dilutive common share equivalents, if the effect is dilutive. Potentially dilutive common shares equivalents include stock options and warrants. Income Taxes The Company recognizes an asset or liability for the deferred tax consequences of all temporary differences between the tax basis of assets or liabilities and their reported amounts in the financial statements that will result in taxable or deductible amounts in future years when the reported amounts of the asset or liabilities are recovered or settled and for operating loss carry forwards. These deferred tax assets and liabilities are measured using the enacted tax rates that will be in effect when the differences are expected to reverse and the carry forwards are expected to be realized. Deferred tax assets are reviewed periodically for recoverability and a valuation allowance is provided as necessary. Debt Issuance Costs Costs related to debt issuance are capitalized and amortized as interest expense over the term of the related debt using the straight-line method, which approximates the effective interest method. Upon the repayment of debt, the Company accelerates the recognition of an appropriate amount of the costs as interest expense. Debt issuance costs are presented as a direct reduction from the carrying amount of the note payable. For calendar years 2021 and 2020, the amortized debt issuance costs were $ 18,522 and $ 18,524 , respectively. Share Based Compensation Share-based compensation expense related to stock option and restricted stock awards, is recognized based on the grant-date fair values. The Company recognizes compensation expense on a straight-line basis over the requisite service period of the award. Concentrations and Credit Risk The Company has two significant customers that represented 83 80 1,910,000 436,000 We had two significant vendors that represented 13 136,000 13 61,000 Restatement of the Consolidated Financial Statements The purpose of this restatement is to correct an error in the Company’s previously issued financial statements for the year ended December 31, 2020 in connection with the classification of $ 945,707 945,707 There was no effect of the restatement to the Company’s consolidated balance sheet, consolidated statement of operations and consolidated statement of changes in stockholders’ deficit for the year ended December 31, 2020. In accordance with the guidance provided by the SEC’s Staff Accounting Bulletin 99, Materiality (“SAB 99”) and Staff Accounting Bulletin 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements (“SAB 108”), the Company has determined that the impact of adjustments relating to the correction of this accounting error are not material to previously issued annual audited financial statements. The effects of the restatement on the Company’s consolidated statement of cash flows for the year ended December 31, 2020 are as follows: SCHEDULE OF RESTATEMENT OF CONSOLIDATED STATEMENT OF CASH FLOWS December 31, 2020 As Reported As Restated - Net cash provided in operating activities 575,239 1,520,946 - Net cash used in investing activities (71,806 ) (1,017,513 ) There was no impact to net cash provided by financing activities within our consolidated statement of cash flows nor was there an impact on the net change in cash resulting from restatement. Reclassifications Certain prior year amounts have been reclassified on the balance sheet to conform to the current year presentation. The reclassifications were within accounts payable and accrued expenses and did not impact net income. In addition, there was a reclass in note 12 for 2020. Recent Accounting Pronouncements There are no recently issued accounting pronouncements that we have not yet adopted that we believe will have a material effect on our financial statements. |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | NOTE 2. REVENUE Our revenue is derived from short-term contracts. Revenue is recognized when we satisfy a performance obligation by transferring control of the promised goods or services to our customers at a point in time, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. We also assess our customer’s ability and intention to pay, which is based on a variety of factors including our customer’s historical payment experience and financial condition. Payment terms and conditions vary, although terms generally include a requirement of payment within 30 days. Revenue generally does not include right of return or other significant post-delivery obligations. Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. We elected to treat shipping and handling costs as a fulfillment cost instead of as a separate performance obligation. We recognize the cost for shipping and handling when incurred as an expense in cost of revenue. All of our contracts are less than one year in duration. We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. Disaggregation of Revenue Approximately 87 13 82 18 Revenue disaggregated by revenue source are as follows: SCHEDULE OF REVENUE DISAGGREGATED BY REVENUE December 31, 2021 2020 Tool Revenue: Tool and product sales $ 2,610,500 $ 1,145,520 Tool rental 1,716,556 1,884,329 Other related revenue 4,917,426 4,020,687 Total Tool Revenue 9,244,482 7,050,536 Contract Services 4,091,667 3,420,262 Total Revenue $ 13,336,149 $ 10,470,798 Contract Costs We do not incur any material costs of obtaining contracts. Contract Balances Under our sales contracts, we invoice customers after our performance obligations have been satisfied, at which point payment is unconditional. Accordingly, our contracts do not give rise to contract assets or liabilities under Topic 606. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 3. INVENTORIES Inventories were comprised of the following: SCHEDULE OF INVENTORIES December 31, December 31, Raw material $ 769,547 $ 733,734 Work in progress 65,945 50,631 Finished goods 339,143 235,643 Inventories, net $ 1,174,635 $ 1,020,008 The Company wrote off $ 0 4,800 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | NOTE 4. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are comprised of the following: SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT December 31, December 31, Land $ 880,416 $ 880,416 Buildings 4,764,441 4,764,441 Leasehold improvements 755,039 755,039 Machinery, equipment, and rental tools 12,207,497 11,298,642 Office equipment, fixtures and software 628,358 628,358 Transportation assets 265,760 265,760 Property, plant and equipment, gross 19,501,511 18,592,656 Accumulated depreciation (12,571,182 ) (11,057,558 ) Property, plant and equipment, net $ 6,930,329 $ 7,535,098 In February 2020, the Company sold the airplane for a gain of approximately $ 142,000 30,000 10,000 Depreciation expense related to property, plant and equipment for the years ended December 31, 2021 and 2020 was $ 1,520,201 1,649,729 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | NOTE 5. INTANGIBLE ASSETS Intangible assets are comprised of the following: SCHEDULE OF INTANGIBLE ASSETS December 31, December 31, Developed technology $ 7,000,000 $ 7,000,000 Customer contracts 6,400,000 6,400,000 Trademarks 1,500,000 1,500,000 14,900,000 14,900,000 Accumulated amortization (14,663,889 ) (14,080,556 ) $ 236,111 $ 819,444 Amortization expense related to intangible assets for the years ended December 31, 2021 and 2020 was $ 583,333 1,166,667 These intangible assets will be amortized over their expected useful lives using the straight-line method, which is a weighted-average amortization period of 6.3 SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS, FUTURE AMORTIZATION EXPENSE 2022 166,667 2023 69,444 Total $ 236,111 During the years ended December 31, 2021 and 2020, there were no |
RELATED PARTY NOTE RECEIVABLE
RELATED PARTY NOTE RECEIVABLE | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
RELATED PARTY NOTE RECEIVABLE | NOTE 6. RELATED PARTY NOTE RECEIVABLE In January 2014, we entered into a Note Purchase and Sale Agreement under which we agreed to purchase a loan made to Tronco 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 2 A bonus was accrued but not paid to the Meiers during 2020. The Meiers did not make a Tronco interest payment in 2020. An after tax bonus payable to the Meiers of $ 707,000 365,000 in interest and approximately $ 342,000 towards the principal amount of the note. The Tronco note balance as of December 31, 2021 was approximately $ 6,749,000 . |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
LEASES | NOTE 7. LEASES The Company determines whether a contract is a lease, or contains a lease, at inception of the contract and whether that lease meets the classification criteria of a finance or operating lease. The Company discounts lease payments based on an estimate of its incremental borrowing rate as the Company’s leases do not provide a readily determinable implicit rate. The Company leases certain facilities in Texas, Utah and Dubai under long-term operating leases with lease terms of one year to two years. Effective January 1, 2020, the Company adopted the provision of ASC 842 Leases. See Note 10 – Financing Obligation regarding the sale-leaseback of our Utah facilities. The table below presents the lease related assets and liabilities recorded on the Company’s consolidated balance sheet as of December 31, 2021: SCHEDULE OF LEASE RELATED ASSETS AND LIABILITIES Classification on Balance Sheet December 31, 2021 Assets Operating lease assets Operating lease right of use assets $ 20,518 Total lease assets $ 20,518 Liabilities Current liabilities Operating lease liability Current operating lease liability $ 13,716 Noncurrrent liabilities Operating lease liability Long-term operating lease liability 6,802 Total lease liability $ 20,518 The lease expense and the cash paid under operating leases for the year ended December 31, 2021 was $ 48,621 0.97 7.25 The following is the aggregate future lease payments for operating leases as of December 31, 2021: SCHEDULE OF AGGREGATE FUTURE LEASE PAYMENTS FOR OPERATING LEASES 2022 15,252 2023 8,052 Total undiscounted lease payments 23,304 Less: effects of discounting (2,786 ) Present value of lease payments $ 20,518 |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | NOTE 8. LONG-TERM DEBT Long-term debt is comprised of the following: SCHEDULE OF LONG-TERM DEBT INSTRUMENTS December 31, December 31, Hard Rock Note $ 750,000 $ 1,500,000 Credit Agreement 1,312,194 825,366 Machinery loans 357,963 466,448 Transportation loans 32,277 56,572 2,452,434 2,848,386 Current portion of long-term debt (2,195,759 ) (1,397,337 ) $ 256,675 $ 1,451,049 Hard Rock Note In 2014, the Company purchased all of the interests of Hard Rock Solutions, LLC (“Hard Rock”). Consideration consisted of $ 12.5 12.5 The Hard Rock Note has a remaining balance of $ 750,000 8.00 October 5, 2022 17,589 104,877 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 3,500,000 333,000 1,000,000 Amounts outstanding under the LOC at any time may not exceed the sum of: (a) up to 85% of accounts receivable or such lesser percentage as AFS in its sole discretion may deem appropriate if it determines that there has been a material adverse effect (less a dilution reserve as determined by AFS in its sole good faith discretion), plus (b) the lesser of (i) up to 50% of inventory or such lesser percentage as AFS in its sole discretion may deem appropriate if it determines that there has been a material adverse effect, or (ii) the inventory sublimit, minus (c) the borrowing base reserve as may be determined from time to time by AFS. The Credit Agreement contains various restrictive covenants that, among other things, limit or restrict the ability of the borrowers to incur additional indebtedness; incur additional liens; make dividends and other restricted payments; make investments; engage in mergers, acquisitions and dispositions; make optional prepayments of other indebtedness; engage in transactions with affiliates; and enter into restrictive agreements. The Credit Agreement does not include any financial covenants. If an event of default occurs, the lenders are entitled to accelerate the advances made thereunder and exercise rights against the collateral. Borrowing under the LOC is classified as current debt as a result of the required lockbox arrangement and the subjective acceleration clause. At December 31, 2021, we were in compliance with the covenants in the Credit Agreement. The interest rate for the Term Loan and the LOC is prime plus 2 8.85 3.6 Even if our borrowings under the LOC are less than $1,000,000, we still pay interest as if we had borrowed $1,000,000. 9,700 February 20, 2023 Equipment Loans The Company has purchased equipment and financed the purchases with a financing company and a bank. At December 31, 2021, the balance outstanding for the equipment loans was approximately $ 357,963 11,830 5.9 8.06 November 2024 and February 2025 Transportation Loans Vehicles Our loans for Company vehicles and other transportation are with various financing parties we have engaged with in connection with the acquisition of the vehicles. As of December 31, 2021, one vehicle loan was outstanding in the amount of $ 32,277 6.99% June 2024 1,169 Future annual maturities of total debt are as follows (1): SCHEDULE OF FUTURE ANNUAL MATURITIES OF TOTAL DEBT Year 2022 2,214,283 2023 140,967 2024 115,165 2025 3,632 Total debt $ 2,474,047 (1) Excludes discounts for debt issuance costs. |
FINANCING OBLIGATION
FINANCING OBLIGATION | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
FINANCING OBLIGATION | NOTE 9. FINANCING OBLIGATION On December 7, 2020, the Company entered into a sale agreement (the “Sale Agreement”). Pursuant to the terms of the Sale Agreement, the Company sold land and property related to the Company’s headquarters and manufacturing facility in Vernal, Utah (the “Property”) for a purchase price of $ 4,448,500 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 61,616 25,950 4,178,336 The financing obligation is summarized below: SCHEDULE OF FINANCING OBLIGATION December 31, Finance obligations for sale-leaseback transactions $ 4,178,336 Current principal portion of finance obligation (65,678 ) Non-current portion of finance obligation $ 4,112,658 The following is the aggregate future lease payments that include principal and interest for the finance obligation as of December 31, 2021: SCHEDULE OF AGGREGATE FUTURE LEASE PAYMENTS FOR THE FINANCE OBLIGATION 2022 316,384 2023 321,130 2024 325,947 2025 330,836 2026 335,799 Thereafter 3,257,778 Total undiscounted lease payments 4,887,874 Residual value of the property (included in the future payments) 2,188,711 Less: effects of discounting (2,898,249 ) Present value of lease payments $ 4,178,336 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 10. COMMITMENTS AND CONTINGENCIES We are subject to litigation that arises from time to time in the ordinary course of our business activities. In February 2019, the Company filed a patent infringement lawsuit in the United States District Court for the Western District of Louisiana, Lafayette Division, asserting that Stabil Drill Specialties, LLC’s (“Stabil Drill”) Smoothbore Eccentric Reamer infringes the patents of Extreme Technologies (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’s claims against Superior’s subsidiary Stabil Drill. On March 9, 2021, the Court lifted the automatic bankruptcy stay, and on May 12, 2021, the Court denied Stabil Drill’s motion for summary judgment of non-infringement. The parties are preparing this case for trial and expect a jury trial setting in late 2022 or early 2023. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 11. INCOME TAXES Components of income tax expense are as follows: SCHEDULE OF COMPONENTS OF INCOME TAX BENEFIT For the Year For the Year Current income taxes: Federal $ - $ - State 5,964 10,481 International 104,787 104,515 Current provision for income taxes 110,751 114,996 Deferred provision (benefit) for income taxes: Federal - - State - - Deferred provision (benefit) for income taxes - - Provision for income taxes $ 110,751 $ 114,996 The non-current deferred tax assets and liabilities consist of the following: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES Deferred tax assets: 263A adjustment $ 14,204 $ 12,133 Accrued expenses - 183,282 Prepaid expenses (27,498 ) (15,458 ) Stock compensation 159,315 122,191 Stock option 71,251 70,201 Amortization of intangibles 2,661,090 2,839,598 Net operating loss 3,246,413 2,898,078 Allowances 1,632,266 1,686,952 Sale-leaseback – lease liability 1,010,467 1,008,663 Others 22,181 20,102 Total non-current deferred tax assets 8,789,689 8,825,742 Deferred tax liabilities: Depreciation on sale-leaseback fixed assets (942,799 ) (967,055 ) Depreciation on fixed assets (46,881 ) (251,190 ) Total non-current deferred tax liabilities (989,680 ) (1,218,245 ) Net non-current deferred tax assets/liabilities 7,800,010 7,607,497 Less: Valuation Allowance (7,800,010 ) (7,607,497 ) Total deferred tax assets / liabilities $ - $ - The Company’s tax expense differs from the statutory tax benefit for the years ended December 31, 2021 and 2020 and the reconciliation is as follows: SCHEDULE OF STATUTORY TAX BENEFIT For the Year Ended For the Year Ended Tax benefit at federal statutory rate $ (88,001 ) $ (696,124 ) State income taxes 4,712 8,280 Foreign income taxes 79,445 - Permanent differences 38,458 (219,880 ) Change in valuation allowance 192,512 903,335 Other adjustment/tax expense true-up - 79,651 Other - State rate effect (13,532 ) (92,760 ) Change in status (125,747 ) 66,835 Other 22,904 65,659 Provision for income taxes $ 110,751 $ 114,996 In calendar years 2021 and 2020, the Company paid no 14,000 We have total federal income tax Net Operating Loss (NOL) carryforwards of $ 13,424,000 10,067,000 3,357,000 The pre-2018 losses will begin to expire between 2035 and 2037. The post-2017 losses can be carried forward indefinitely, however, only 80% of these losses can offset taxable income. We believe that it is more likely than not that the benefit from these NOL carryforwards will not be realized. In recognition of this risk, we have provided a valuation allowance of $ 3,246,000 In accordance with the accounting under ASC Topic 740, the Company has recorded a liability for an uncertain tax position taken on its international income tax returns. Penalties related to this income tax liability are included as a component of income tax expense in the accompanying statements of operations. The Company had approximately 206,000 106,000 6,000 0 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 12. SHARE-BASED COMPENSATION In 2014, the Company’s Board of Directors approved that the Directors stock compensation would be included in the Employee Stock Incentive Plan (“Stock Plan”) that reserves 1,724,128 In 2015, our stockholders approved the Superior Drilling Company, Inc. 2015 Long Term Incentive Plan (the “2015 Incentive Plan”). The purpose of the 2015 Incentive Plan is to advance the interests of the Company and its stockholders by providing an incentive to attract, retain and reward persons performing services for the Company and its affiliates and by motivating such persons to contribute to the growth and profitability of the Company and our affiliates. In 2020, the Company’s board of directors approved an additional 2,543,448 5,576,326 455,000 Restricted stock units On August 9, 2021, the Board of Directors granted 1,231,541 three On August 7, 2020, the Board of Directors granted 1,544,719 three Compensation expense recognized for grants of restricted stock vesting under the 2015 Incentive Plan was approximately $ 754,000 and $ 545,000 for the years ending December 31, 2021 and 2020, respectively. The Company recognized compensation expense and recorded it as share-based compensation in the consolidated statement of operations. Total unrecognized compensation expense related to unvested restricted stock units expected to be recognized over the remaining weighted vesting period of 2.25 1,603,321 three years The following table summarizes RSU activity for the years ended December 31, 2021 and 2020: SCHEDULE OF SHARE-BASED COMPENSATION, RESTRICTED STOCK UNITS AWARD ACTIVITY 2021 2020 Number of Restricted Stock Units Weighted - Number of Restricted Stock Units Weighted - Unvested RSU’s at beginning of period 1,796,897 $ 0.71 706,394 $ 1.24 Granted 1,231,541 0.76 1,544,719 0.59 Forfeited (10,000 ) 0.59 (110,000 ) 0.59 Vested (733,528 ) 0.83 (344,216 ) 1.29 Unvested RSU’s at end of period 2,284,910 $ 0.70 1,796,897 $ 0.71 Stock Options On August 9, 2021 the Board of Directors approved to be granted 74,996 stock options under the 2015 Incentive Plan to employees. These options were granted to employees on December 10, 2021 at a grant price of $ 0.78 . The fair value, based on the Black-Scholes option pricing model, on the date of grant was $ 0.31 . The options vest 33.3 % on the grant date, 33.3 % on the first anniversary of the grant date and 33.4 % on the second anniversary of the grant date. The Company recognized stock-based compensation expense of approximately $ 3,000 The following table summarizes stock options outstanding and changes during the years ended December 31, 2021 and 2020: SCHEDULE OF SHARE-BASED COMPENSATION, STOCK OPTIONS, ACTIVITY 2021 2020 Number of Stock Options Weighted - Average Exercise Price Number of Stock Options Weighted - Average Exercise Price Stock options outstanding at beginning of period 498,277 $ 1.53 588,133 $ 1.50 Granted 74,996 0.78 - - Exercised (1,865 ) 0.86 - - Expired (172,828 ) 1.67 (51,971 ) 1.40 Canceled or forfeited - - (37,885 ) 1.19 Stock options outstanding at end of period 398,580 $ 1.34 498,277 $ 1.53 Stock options exercisable at end of period 321,586 $ 1.47 481,076 $ 1.55 The fair value of stock options granted to employees and directors in 2021 was estimated at the grant date using the Black-Scholes option pricing model using the following assumptions: SCHEDULE OF SHARE-BASED PAYMENT AWARD, STOCK OPTIONS, VALUATION ASSUMPTIONS Expected volatility 59.50 % Discount rate 1.25 % Expected life (years) 2 Dividend yield NA Option pricing models require the input of highly subjective assumptions, including the expected price volatility. Expected price volatility is based on the historical volatility of our common stock. Changes in the subjective input assumptions can materially affect the fair value estimate. The expected term of the options granted is derived from the output of the option pricing model and represents the period of time that the options granted are expected to be outstanding. The discount rate for the periods within the contractual term of the option is based on the U.S. Treasury yield curve in effect at the date of grant. |
GEOGRAPHICAL OPERATIONS INFORMA
GEOGRAPHICAL OPERATIONS INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
GEOGRAPHICAL OPERATIONS INFORMATION | NOTE 13. GEOGRAPHICAL OPERATIONS INFORMATION The following summarizes revenue by geographic location: SCHEDULE OF REVENUE AND PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHIC LOCATION For the Year For the Year Revenue: North America $ 11,619,593 $ 8,590,933 International $ 1,716,556 $ 1,879,865 $ 13,336,149 $ 10,470,798 The following summarizes net property, plant and equipment by geographic location: SCHEDULE OF NET PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHIC LOCATION December 31, 2021 December 31, 2020 Property, plant and equipment, net: North America $ 5,762,066 $ 6,008,431 International 1,168,263 1,526,667 $ 6,930,329 $ 7,535,098 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Organization and Nature of Operations | Organization and Nature of Operations Superior Drilling Products, Inc. (the “Company”, “SDPI”, “we”, “our” or “us”) is an innovative drilling and completion tool technology company providing cost saving solutions that drive production efficiencies for the oil and natural gas drilling industry. Our headquarters and manufacturing operations are located in Vernal, Utah. Our drilling solutions include the patented Drill-N-Ream® well bore conditioning tool (“Drill-N-Ream tool”) and the patented Strider™ Drill String Oscillation System technology (“Strider technology” or “Strider”). In addition, the Company is a manufacturer and refurbisher of PDC (polycrystalline diamond compact) drill bits for a leading oil field services company. We operate a state-of-the-art drill tool fabrication facility, where we manufacture solutions for the drilling industry, as well as customers’ custom products. Our subsidiaries include (a) Superior Drilling Solutions, LLC (previously known as Superior Drilling Products, LLC), a Utah limited liability company (“SDS”), together with its wholly owned subsidiary Superior Design and Fabrication, LLC, a Utah limited liability company (“SDF”), (b) Extreme Technologies, LLC, a Utah limited liability company (“ET”), (c) Meier Properties Series, LLC, a Utah limited liability company (“MPS”), (d) Meier Leasing, LLC, a Utah limited liability company (“ML”), and (e) Hard Rock Solutions, LLC (“HR” or “Hard Rock”). |
Basis of Presentation | Basis of Presentation The Company’s consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the accounts of Superior Drilling Products Inc. and all of its wholly-owned subsidiaries. All significant intercompany accounts have been eliminated in consolidation. The Company does not have investments in any unconsolidated subsidiaries. |
Segment Reporting | Segment Reporting We operate as a single operating segment, which reflects how we manage our business. We operate in North America and the Middle East. See Note 13 – Geographical Operations Information. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant items subject to estimates and assumptions include the carrying amount and useful lives of property and equipment and intangible assets, impairment assessments, share-based compensation expense, and valuation allowances for accounts receivable, inventories, and deferred tax assets. |
Revenue Recognition | Revenue Recognition We account for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), except for tool rental revenue. Under ASC 606 revenue is measured based on a consideration specified in a customer’s contract, excluding any sale incentives and taxes collected on behalf of third parties. Revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration that we expect to receive for those goods or services. To recognize revenue, we (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when, or as, we satisfy the performance obligation(s). Shipping and handling costs incurred are accounted for as fulfillment costs and are included in cost of revenues in the statements of operations. Tool sales, rentals and other related revenue Tool and Product Sales Tool Rental Other Related Revenue: Contract Services Drill Bit Manufacturing and Refurbishment See Note 2– Revenue. |
Cash | Cash We maintain cash deposits with financial institutions that may exceed federally insured limits at times. We have chosen credible institutions and believe our risk of loss is negligible. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments consist of cash, receivables, payables, and bank debt. The Company believes that the carrying values of these instruments on the accompanying consolidated balance sheets approximate their fair values due to the relatively short period to maturity for these instruments. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Domestically accounts receivable are generally due within 60 days of the invoice date. Internationally our due date terms are generally 90 days from the invoice date. No interest is charged on past-due balances. We grant credit to our customers based upon an evaluation of each customer’s financial condition. We periodically monitor the payment history and ongoing creditworthiness of our customers. An allowance for doubtful accounts is established at a level estimated by management to be adequate based upon various factors including historical experience, aging status of customer accounts, payment history and financial condition of our customers. The allowance for doubtful accounts was $ 0 |
Inventories | Inventories Inventories consist of raw materials, work-in-process and finished goods and are stated at the lower of cost, determined using the weighted-average cost method, or net realizable value. Finished goods inventories include raw materials, direct labor and production overhead. The Company regularly reviews inventories on hand and current market conditions to determine if the cost of finished goods inventories exceed current market prices and impairs the cost basis of the inventory accordingly. |
Assets and Liabilities Held for Sale | Assets and Liabilities Held for Sale The Company classifies disposal groups as held for sale in the period in which all of the following criteria are met: (1) management, having the authority to approve the action, commits to a plan to sell the disposal group; (2) the disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such disposal groups; (3) an active program to locate a buyer or buyers and other actions required to complete the plan to sell the disposal group have been initiated; (4) the sale of the disposal group is probable, and transfer of the disposal group is expected to qualify for recognition as a completed sale, within one year, except if events of circumstances beyond the Company’s control extend the period of time required to sell the disposal group beyond one year; (5) the disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (6) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. A disposal group that is classified as held for sale is initially measured at the lower of its carrying amount or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Subsequent changes in the fair value of a disposal group less any costs to sell are reported as an adjustment to the carrying amount of the disposal group, as long as the new carrying amount does not exceed the carrying amount of the asset at the time it was initially classified as held for sale. Upon determining that a disposal group meets the criteria to be classified as held for sale, the Company reports the assets and liabilities of the disposal group for all periods presented in the line items assets held for sale and liabilities held for sale, respectively, in the consolidated balance sheets. |
SCHEDULE OF ASSET'S ESTIMATED USEFUL LIFE | Property, Plant and Equipment Property, plant and equipment is stated at cost. The cost of ordinary maintenance and repair is charged to operating expense, while replacement of critical components and major improvements are capitalized. Depreciation or amortization of property and equipment, is calculated using the straight-line method over the asset’s estimated useful life as follows: SCHEDULE OF ASSET'S ESTIMATED USEFUL LIFE Buildings and leasehold Improvements 2 39 Machinery, equipment and rental tools 18 10 Office equipment, fixtures and software 3 7 Transportation equipment 5 30 Property, plant and equipment is reviewed for impairment on an annual basis or whenever events or changes in circumstances indicate the carrying value of an asset or asset group may not be recoverable. Indicative events or circumstances include, but are not limited to, matters such as a significant decline in market value or a significant change in business climate. An impairment loss is recognized when the carrying value of an asset exceeds the estimated undiscounted future cash flows from the use of the asset and its eventual disposition. The amount of impairment loss recognized is the excess of the asset’s carrying value over its fair value. Assets to be disposed of are reported at the lower of the carrying value or the fair value less cost to sell. Upon sale or other disposition of an asset, the Company recognizes a gain or loss on disposal measured as the difference between the net carrying value of the asset and the net proceeds received. |
Intangible Assets | Intangible Assets The Company’s intangible assets with finite lives consist of developed technology, customer contracts and relationships, and trade names and trademarks. The cost of intangible assets with finite lives is amortized using the straight-line method over the estimated period of economic benefit, ranging from 5 9 Intangible assets with finite lives are tested for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable. These conditions may include a change in the extent or manner in which the asset is being used or a change in future operations. The Company assesses the recoverability of the carrying amount by preparing estimates of future revenue, margins, and cash flows. If the sum of expected future cash flows (undiscounted and without interest charges) is less than the carrying amount, an impairment loss is recognized. The impairment loss recognized is the amount by which the carrying amount exceeds the fair value. Fair value of these assets may be determined by a variety of methodologies, including discounted cash flow models. |
Leases | Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires assets and liabilities that arise from all leases to be recognized on the balance sheet for lessees and expanded financial statement disclosures for both lessees and lessors. We adopted the new standard effective January 1, 2020 and elected the modified retrospective transition method. The adoption of this standard resulted in approximately $ 270,000 20,518 |
Research and Development | Research and Development We expense research and development costs as they are incurred. For the years ended December 31, 2021 and 2020, these expenses were approximately $ 672,000 790,000 |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) per common share is calculated by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share is calculated by dividing net income (loss) attributable to common shareholders by the weighted average number of common shares outstanding, including potentially dilutive common share equivalents, if the effect is dilutive. Potentially dilutive common shares equivalents include stock options and warrants. |
Income Taxes | Income Taxes The Company recognizes an asset or liability for the deferred tax consequences of all temporary differences between the tax basis of assets or liabilities and their reported amounts in the financial statements that will result in taxable or deductible amounts in future years when the reported amounts of the asset or liabilities are recovered or settled and for operating loss carry forwards. These deferred tax assets and liabilities are measured using the enacted tax rates that will be in effect when the differences are expected to reverse and the carry forwards are expected to be realized. Deferred tax assets are reviewed periodically for recoverability and a valuation allowance is provided as necessary. |
Debt Issuance Costs | Debt Issuance Costs Costs related to debt issuance are capitalized and amortized as interest expense over the term of the related debt using the straight-line method, which approximates the effective interest method. Upon the repayment of debt, the Company accelerates the recognition of an appropriate amount of the costs as interest expense. Debt issuance costs are presented as a direct reduction from the carrying amount of the note payable. For calendar years 2021 and 2020, the amortized debt issuance costs were $ 18,522 and $ 18,524 , respectively. |
Share Based Compensation | Share Based Compensation Share-based compensation expense related to stock option and restricted stock awards, is recognized based on the grant-date fair values. The Company recognizes compensation expense on a straight-line basis over the requisite service period of the award. |
Concentrations and Credit Risk | Concentrations and Credit Risk The Company has two significant customers that represented 83 80 1,910,000 436,000 We had two significant vendors that represented 13 136,000 13 61,000 |
Restatement of the Consolidated Financial Statements | Restatement of the Consolidated Financial Statements The purpose of this restatement is to correct an error in the Company’s previously issued financial statements for the year ended December 31, 2020 in connection with the classification of $ 945,707 945,707 There was no effect of the restatement to the Company’s consolidated balance sheet, consolidated statement of operations and consolidated statement of changes in stockholders’ deficit for the year ended December 31, 2020. In accordance with the guidance provided by the SEC’s Staff Accounting Bulletin 99, Materiality (“SAB 99”) and Staff Accounting Bulletin 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements (“SAB 108”), the Company has determined that the impact of adjustments relating to the correction of this accounting error are not material to previously issued annual audited financial statements. The effects of the restatement on the Company’s consolidated statement of cash flows for the year ended December 31, 2020 are as follows: SCHEDULE OF RESTATEMENT OF CONSOLIDATED STATEMENT OF CASH FLOWS December 31, 2020 As Reported As Restated - Net cash provided in operating activities 575,239 1,520,946 - Net cash used in investing activities (71,806 ) (1,017,513 ) There was no impact to net cash provided by financing activities within our consolidated statement of cash flows nor was there an impact on the net change in cash resulting from restatement. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified on the balance sheet to conform to the current year presentation. The reclassifications were within accounts payable and accrued expenses and did not impact net income. In addition, there was a reclass in note 12 for 2020. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements There are no recently issued accounting pronouncements that we have not yet adopted that we believe will have a material effect on our financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SCHEDULE OF ASSET'S ESTIMATED USEFUL LIFE | SCHEDULE OF ASSET'S ESTIMATED USEFUL LIFE Buildings and leasehold Improvements 2 39 Machinery, equipment and rental tools 18 10 Office equipment, fixtures and software 3 7 Transportation equipment 5 30 |
SCHEDULE OF RESTATEMENT OF CONSOLIDATED STATEMENT OF CASH FLOWS | The effects of the restatement on the Company’s consolidated statement of cash flows for the year ended December 31, 2020 are as follows: SCHEDULE OF RESTATEMENT OF CONSOLIDATED STATEMENT OF CASH FLOWS December 31, 2020 As Reported As Restated - Net cash provided in operating activities 575,239 1,520,946 - Net cash used in investing activities (71,806 ) (1,017,513 ) |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
SCHEDULE OF REVENUE DISAGGREGATED BY REVENUE | Revenue disaggregated by revenue source are as follows: SCHEDULE OF REVENUE DISAGGREGATED BY REVENUE December 31, 2021 2020 Tool Revenue: Tool and product sales $ 2,610,500 $ 1,145,520 Tool rental 1,716,556 1,884,329 Other related revenue 4,917,426 4,020,687 Total Tool Revenue 9,244,482 7,050,536 Contract Services 4,091,667 3,420,262 Total Revenue $ 13,336,149 $ 10,470,798 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORIES | Inventories were comprised of the following: SCHEDULE OF INVENTORIES December 31, December 31, Raw material $ 769,547 $ 733,734 Work in progress 65,945 50,631 Finished goods 339,143 235,643 Inventories, net $ 1,174,635 $ 1,020,008 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT | Property, plant and equipment are comprised of the following: SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT December 31, December 31, Land $ 880,416 $ 880,416 Buildings 4,764,441 4,764,441 Leasehold improvements 755,039 755,039 Machinery, equipment, and rental tools 12,207,497 11,298,642 Office equipment, fixtures and software 628,358 628,358 Transportation assets 265,760 265,760 Property, plant and equipment, gross 19,501,511 18,592,656 Accumulated depreciation (12,571,182 ) (11,057,558 ) Property, plant and equipment, net $ 6,930,329 $ 7,535,098 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF INTANGIBLE ASSETS | Intangible assets are comprised of the following: SCHEDULE OF INTANGIBLE ASSETS December 31, December 31, Developed technology $ 7,000,000 $ 7,000,000 Customer contracts 6,400,000 6,400,000 Trademarks 1,500,000 1,500,000 14,900,000 14,900,000 Accumulated amortization (14,663,889 ) (14,080,556 ) $ 236,111 $ 819,444 |
SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS, FUTURE AMORTIZATION EXPENSE | SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS, FUTURE AMORTIZATION EXPENSE 2022 166,667 2023 69,444 Total $ 236,111 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
SCHEDULE OF LEASE RELATED ASSETS AND LIABILITIES | The table below presents the lease related assets and liabilities recorded on the Company’s consolidated balance sheet as of December 31, 2021: SCHEDULE OF LEASE RELATED ASSETS AND LIABILITIES Classification on Balance Sheet December 31, 2021 Assets Operating lease assets Operating lease right of use assets $ 20,518 Total lease assets $ 20,518 Liabilities Current liabilities Operating lease liability Current operating lease liability $ 13,716 Noncurrrent liabilities Operating lease liability Long-term operating lease liability 6,802 Total lease liability $ 20,518 |
SCHEDULE OF AGGREGATE FUTURE LEASE PAYMENTS FOR OPERATING LEASES | The following is the aggregate future lease payments for operating leases as of December 31, 2021: SCHEDULE OF AGGREGATE FUTURE LEASE PAYMENTS FOR OPERATING LEASES 2022 15,252 2023 8,052 Total undiscounted lease payments 23,304 Less: effects of discounting (2,786 ) Present value of lease payments $ 20,518 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF LONG-TERM DEBT INSTRUMENTS | Long-term debt is comprised of the following: SCHEDULE OF LONG-TERM DEBT INSTRUMENTS December 31, December 31, Hard Rock Note $ 750,000 $ 1,500,000 Credit Agreement 1,312,194 825,366 Machinery loans 357,963 466,448 Transportation loans 32,277 56,572 2,452,434 2,848,386 Current portion of long-term debt (2,195,759 ) (1,397,337 ) $ 256,675 $ 1,451,049 |
SCHEDULE OF FUTURE ANNUAL MATURITIES OF TOTAL DEBT | Future annual maturities of total debt are as follows (1): SCHEDULE OF FUTURE ANNUAL MATURITIES OF TOTAL DEBT Year 2022 2,214,283 2023 140,967 2024 115,165 2025 3,632 Total debt $ 2,474,047 (1) Excludes discounts for debt issuance costs. |
FINANCING OBLIGATION (Tables)
FINANCING OBLIGATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
SCHEDULE OF FINANCING OBLIGATION | The financing obligation is summarized below: SCHEDULE OF FINANCING OBLIGATION December 31, Finance obligations for sale-leaseback transactions $ 4,178,336 Current principal portion of finance obligation (65,678 ) Non-current portion of finance obligation $ 4,112,658 |
SCHEDULE OF AGGREGATE FUTURE LEASE PAYMENTS FOR THE FINANCE OBLIGATION | The following is the aggregate future lease payments that include principal and interest for the finance obligation as of December 31, 2021: SCHEDULE OF AGGREGATE FUTURE LEASE PAYMENTS FOR THE FINANCE OBLIGATION 2022 316,384 2023 321,130 2024 325,947 2025 330,836 2026 335,799 Thereafter 3,257,778 Total undiscounted lease payments 4,887,874 Residual value of the property (included in the future payments) 2,188,711 Less: effects of discounting (2,898,249 ) Present value of lease payments $ 4,178,336 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF COMPONENTS OF INCOME TAX BENEFIT | Components of income tax expense are as follows: SCHEDULE OF COMPONENTS OF INCOME TAX BENEFIT For the Year For the Year Current income taxes: Federal $ - $ - State 5,964 10,481 International 104,787 104,515 Current provision for income taxes 110,751 114,996 Deferred provision (benefit) for income taxes: Federal - - State - - Deferred provision (benefit) for income taxes - - Provision for income taxes $ 110,751 $ 114,996 |
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES | The non-current deferred tax assets and liabilities consist of the following: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES Deferred tax assets: 263A adjustment $ 14,204 $ 12,133 Accrued expenses - 183,282 Prepaid expenses (27,498 ) (15,458 ) Stock compensation 159,315 122,191 Stock option 71,251 70,201 Amortization of intangibles 2,661,090 2,839,598 Net operating loss 3,246,413 2,898,078 Allowances 1,632,266 1,686,952 Sale-leaseback – lease liability 1,010,467 1,008,663 Others 22,181 20,102 Total non-current deferred tax assets 8,789,689 8,825,742 Deferred tax liabilities: Depreciation on sale-leaseback fixed assets (942,799 ) (967,055 ) Depreciation on fixed assets (46,881 ) (251,190 ) Total non-current deferred tax liabilities (989,680 ) (1,218,245 ) Net non-current deferred tax assets/liabilities 7,800,010 7,607,497 Less: Valuation Allowance (7,800,010 ) (7,607,497 ) Total deferred tax assets / liabilities $ - $ - |
SCHEDULE OF STATUTORY TAX BENEFIT | The Company’s tax expense differs from the statutory tax benefit for the years ended December 31, 2021 and 2020 and the reconciliation is as follows: SCHEDULE OF STATUTORY TAX BENEFIT For the Year Ended For the Year Ended Tax benefit at federal statutory rate $ (88,001 ) $ (696,124 ) State income taxes 4,712 8,280 Foreign income taxes 79,445 - Permanent differences 38,458 (219,880 ) Change in valuation allowance 192,512 903,335 Other adjustment/tax expense true-up - 79,651 Other - State rate effect (13,532 ) (92,760 ) Change in status (125,747 ) 66,835 Other 22,904 65,659 Provision for income taxes $ 110,751 $ 114,996 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
SCHEDULE OF SHARE-BASED COMPENSATION, RESTRICTED STOCK UNITS AWARD ACTIVITY | The following table summarizes RSU activity for the years ended December 31, 2021 and 2020: SCHEDULE OF SHARE-BASED COMPENSATION, RESTRICTED STOCK UNITS AWARD ACTIVITY 2021 2020 Number of Restricted Stock Units Weighted - Number of Restricted Stock Units Weighted - Unvested RSU’s at beginning of period 1,796,897 $ 0.71 706,394 $ 1.24 Granted 1,231,541 0.76 1,544,719 0.59 Forfeited (10,000 ) 0.59 (110,000 ) 0.59 Vested (733,528 ) 0.83 (344,216 ) 1.29 Unvested RSU’s at end of period 2,284,910 $ 0.70 1,796,897 $ 0.71 |
SCHEDULE OF SHARE-BASED COMPENSATION, STOCK OPTIONS, ACTIVITY | The following table summarizes stock options outstanding and changes during the years ended December 31, 2021 and 2020: SCHEDULE OF SHARE-BASED COMPENSATION, STOCK OPTIONS, ACTIVITY 2021 2020 Number of Stock Options Weighted - Average Exercise Price Number of Stock Options Weighted - Average Exercise Price Stock options outstanding at beginning of period 498,277 $ 1.53 588,133 $ 1.50 Granted 74,996 0.78 - - Exercised (1,865 ) 0.86 - - Expired (172,828 ) 1.67 (51,971 ) 1.40 Canceled or forfeited - - (37,885 ) 1.19 Stock options outstanding at end of period 398,580 $ 1.34 498,277 $ 1.53 Stock options exercisable at end of period 321,586 $ 1.47 481,076 $ 1.55 |
SCHEDULE OF SHARE-BASED PAYMENT AWARD, STOCK OPTIONS, VALUATION ASSUMPTIONS | The fair value of stock options granted to employees and directors in 2021 was estimated at the grant date using the Black-Scholes option pricing model using the following assumptions: SCHEDULE OF SHARE-BASED PAYMENT AWARD, STOCK OPTIONS, VALUATION ASSUMPTIONS Expected volatility 59.50 % Discount rate 1.25 % Expected life (years) 2 Dividend yield NA |
GEOGRAPHICAL OPERATIONS INFOR_2
GEOGRAPHICAL OPERATIONS INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
SCHEDULE OF REVENUE AND PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHIC LOCATION | The following summarizes revenue by geographic location: SCHEDULE OF REVENUE AND PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHIC LOCATION For the Year For the Year Revenue: North America $ 11,619,593 $ 8,590,933 International $ 1,716,556 $ 1,879,865 $ 13,336,149 $ 10,470,798 |
SCHEDULE OF NET PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHIC LOCATION | The following summarizes net property, plant and equipment by geographic location: SCHEDULE OF NET PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHIC LOCATION December 31, 2021 December 31, 2020 Property, plant and equipment, net: North America $ 5,762,066 $ 6,008,431 International 1,168,263 1,526,667 $ 6,930,329 $ 7,535,098 |
SCHEDULE OF ASSET'S ESTIMATED U
SCHEDULE OF ASSET'S ESTIMATED USEFUL LIFE (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Buildings and Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 2 years |
Buildings and Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 39 years |
Machinery, Equipment and Rental Tools [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 18 months |
Machinery, Equipment and Rental Tools [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Office Equipment, Fixtures and Software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Office Equipment, Fixtures and Software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 7 years |
Transportation Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Transportation Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 30 years |
SCHEDULE OF RESTATEMENT OF CONS
SCHEDULE OF RESTATEMENT OF CONSOLIDATED STATEMENT OF CASH FLOWS (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Net cash provided in operating activities | $ 526,156 | $ 1,520,946 |
Net cash provided in operating activities | $ (886,718) | (1,017,513) |
Previously Reported [Member] | ||
Net cash provided in operating activities | 575,239 | |
Net cash provided in operating activities | $ (71,806) |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2020 | |
Product Information [Line Items] | |||
Accounts Receivable, Allowance for Credit Loss | $ 0 | $ 0 | |
Intangible assets, amortization period | 6 years 3 months 18 days | ||
Operating lease right-of-use assets | $ 20,518 | 99,831 | $ 270,000 |
Operating lease liabilities | 13,716 | 79,313 | $ 270,000 |
Operating lease liabilities | 20,518 | ||
Research and development expenses | 672,000 | 790,000 | |
Debt Issuance Costs, Net | 18,522 | 18,524 | |
Accounts receivable | 1,910,000 | 436,000 | |
Accounts payable | 1,139,091 | 430,014 | |
Purchase of property, plant and equipment | 936,718 | 1,167,346 | |
Revision of Prior Period, Adjustment [Member] | |||
Product Information [Line Items] | |||
Inventory converted to Property, plant and equipment | 945,707 | ||
Purchase of property, plant and equipment | 945,707 | ||
Two Vendor [Member] | |||
Product Information [Line Items] | |||
Accounts payable | $ 136,000 | ||
One Vendor [Member] | |||
Product Information [Line Items] | |||
Accounts payable | $ 61,000 | ||
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Two Customers [Member] | |||
Product Information [Line Items] | |||
Concentration risk percentage | 83.00% | 80.00% | |
Supplier Concentration Risk [Member] | Purchases [Member] | Two Vendor [Member] | |||
Product Information [Line Items] | |||
Concentration risk percentage | 13.00% | ||
Supplier Concentration Risk [Member] | Purchases [Member] | One Vendor [Member] | |||
Product Information [Line Items] | |||
Concentration risk percentage | 13.00% | ||
Minimum [Member] | |||
Product Information [Line Items] | |||
Intangible assets, amortization period | 5 years | ||
Maximum [Member] | |||
Product Information [Line Items] | |||
Intangible assets, amortization period | 9 years |
SCHEDULE OF REVENUE DISAGGREGAT
SCHEDULE OF REVENUE DISAGGREGATED BY REVENUE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 13,336,149 | $ 10,470,798 |
Tools and Product Sales [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 2,610,500 | 1,145,520 |
Tool Rental [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 1,716,556 | 1,884,329 |
Other Related Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 4,917,426 | 4,020,687 |
Tool Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 9,244,482 | 7,050,536 |
Contract Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 4,091,667 | $ 3,420,262 |
REVENUE (Details Narrative)
REVENUE (Details Narrative) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Description of payment terms | All of our contracts are less than one year in duration. We do not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. | |
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | UNITED STATES | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 87.00% | 82.00% |
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | Middle East [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 13.00% | 18.00% |
SCHEDULE OF INVENTORIES (Detail
SCHEDULE OF INVENTORIES (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw material | $ 769,547 | $ 733,734 |
Work in progress | 65,945 | 50,631 |
Finished goods | 339,143 | 235,643 |
Inventories, net | $ 1,174,635 | $ 1,020,008 |
INVENTORIES (Details Narrative)
INVENTORIES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | ||
Inventory wrote off | $ 0 | $ 4,800 |
SCHEDULE OF PROPERTY, PLANT AND
SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 880,416 | $ 880,416 |
Buildings | 4,764,441 | 4,764,441 |
Leasehold improvements | 755,039 | 755,039 |
Machinery, equipment, and rental tools | 12,207,497 | 11,298,642 |
Office equipment, fixtures and software | 628,358 | 628,358 |
Transportation assets | 265,760 | 265,760 |
Property, plant and equipment, gross | 19,501,511 | 18,592,656 |
Accumulated depreciation | (12,571,182) | (11,057,558) |
Property, plant and equipment, net | $ 6,930,329 | $ 7,535,098 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Feb. 29, 2020 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||||
Gain (loss) on disposition of property plant equipment | $ 142,000 | $ 10,000 | |||
Impairment of assets | $ 30,000 | $ 30,000 | |||
Depreciation expense related to property, plant and equipment | $ 1,520,201 | $ 1,649,729 |
SCHEDULE OF INTANGIBLE ASSETS (
SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 14,900,000 | $ 14,900,000 |
Accumulated amortization | (14,663,889) | (14,080,556) |
Intangible assets, net | 236,111 | 819,444 |
Developed Technology Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 7,000,000 | 7,000,000 |
Customer Contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 6,400,000 | 6,400,000 |
Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 1,500,000 | $ 1,500,000 |
SCHEDULE OF FINITE-LIVED INTANG
SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS, FUTURE AMORTIZATION EXPENSE (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 | $ 166,667 | |
2023 | 69,444 | |
Intangible assets, net | $ 236,111 | $ 819,444 |
INTANGIBLE ASSETS (Details Narr
INTANGIBLE ASSETS (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 583,333 | $ 1,166,667 |
Finite lived intangible assets weighted average amortization period | 6 years 3 months 18 days | |
Impairment of intangible assets | $ 0 | $ 0 |
RELATED PARTY NOTE RECEIVABLE (
RELATED PARTY NOTE RECEIVABLE (Details Narrative) - USD ($) | Aug. 31, 2017 | Dec. 31, 2021 | Jul. 07, 2020 |
Tronco Energy Corporation [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Related party note receivable | $ 6,979,043 | ||
Debt instrument decrease | $ 0 | ||
Common stock hold as collateral | 8,267,860 | ||
Debt interest rate | 2.00% | ||
Troy and Annette Meier [Member] | Tronco Note [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Related party note receivable | $ 6,749,000 | ||
Accrued bonus after tax | 707,000 | ||
Interest receivable | 365,000 | ||
Prinicipal amount of note | $ 342,000 |
SCHEDULE OF LEASE RELATED ASSET
SCHEDULE OF LEASE RELATED ASSETS AND LIABILITIES (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2020 |
Leases [Abstract] | |||
Operating lease assets | $ 20,518 | ||
Total lease assets | 20,518 | $ 99,831 | $ 270,000 |
Current liabilities, Operating lease liability | 13,716 | 79,313 | $ 270,000 |
Noncurrrent liabilities, Operating lease liability | 6,802 | $ 20,518 | |
Total lease liability | $ 20,518 |
SCHEDULE OF AGGREGATE FUTURE LE
SCHEDULE OF AGGREGATE FUTURE LEASE PAYMENTS FOR OPERATING LEASES (Details) | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 15,252 |
2023 | 8,052 |
Total undiscounted lease payments | 23,304 |
Less: effects of discounting | (2,786) |
Present value of lease payments | $ 20,518 |
LEASES (Details Narrative)
LEASES (Details Narrative) | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Leases [Abstract] | |
Lease expense | $ 48,621 |
Weighted average remaining lease terms | 11 months 19 days |
Weighted average discount rate | 7.25% |
SCHEDULE OF LONG-TERM DEBT INST
SCHEDULE OF LONG-TERM DEBT INSTRUMENTS (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Long term debt, Total | $ 2,452,434 | $ 2,848,386 |
Current portion of long-term debt | (2,195,759) | (1,397,337) |
Long-term debt, net | 256,675 | 1,451,049 |
Hard Rock Note [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt, Total | 750,000 | 1,500,000 |
Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt, Total | 1,312,194 | 825,366 |
Machinery Loans [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt, Total | 357,963 | 466,448 |
Transportation Loans [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt, Total | $ 32,277 | $ 56,572 |
SCHEDULE OF FUTURE ANNUAL MATUR
SCHEDULE OF FUTURE ANNUAL MATURITIES OF TOTAL DEBT (Details) | Dec. 31, 2021USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 2,214,283 |
2023 | 140,967 |
2024 | 115,165 |
2025 | 3,632 |
Total debt | $ 2,474,047 |
LONG-TERM DEBT (Details Narrati
LONG-TERM DEBT (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jan. 20, 2022 | Dec. 31, 2014 | Dec. 31, 2021 | Feb. 28, 2019 | |
Loan and Security Agreement [Member] | Term Loan and Revolving Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument maturity date | Feb. 20, 2023 | |||
Line of credit facility, description | Even if our borrowings under the LOC are less than $1,000,000, we still pay interest as if we had borrowed $1,000,000. | |||
Line of credit interest rate | 8.85% | |||
Management fee rate, percentage | 3.60% | |||
Accrued interest | $ 9,700 | |||
Loan and Security Agreement [Member] | Term Loan and Revolving Loan [Member] | Prime Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit interest rate | 2.00% | |||
Loan and Security Agreement [Member] | Austin Financial Services, Inc. [Member] | ||||
Debt Instrument [Line Items] | ||||
Long term line of credit | $ 4,300,000 | |||
Loan and Security Agreement [Member] | Austin Financial Services, Inc. [Member] | Term Loan Note [Member] | ||||
Debt Instrument [Line Items] | ||||
Long term line of credit | 800,000 | |||
Outstanding line of credit | $ 333,000 | |||
Loan and Security Agreement [Member] | Austin Financial Services, Inc. [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Long term line of credit | $ 3,500,000 | |||
Outstanding line of credit | $ 1,000,000 | |||
Line of credit facility, description | Amounts outstanding under the LOC at any time may not exceed the sum of: (a) up to 85% of accounts receivable or such lesser percentage as AFS in its sole discretion may deem appropriate if it determines that there has been a material adverse effect (less a dilution reserve as determined by AFS in its sole good faith discretion), plus (b) the lesser of (i) up to 50% of inventory or such lesser percentage as AFS in its sole discretion may deem appropriate if it determines that there has been a material adverse effect, or (ii) the inventory sublimit, minus (c) the borrowing base reserve as may be determined from time to time by AFS. | |||
Hard Rock Note [Member] | ||||
Debt Instrument [Line Items] | ||||
Payments to acquire businesses, gross | $ 12,500,000 | |||
Business combination, consideration transferred, liabilities incurred | $ 12,500,000 | |||
Notes payable | $ 750,000 | |||
Debt instrument, interest rate | 8.00% | |||
Debt instrument maturity date | Oct. 5, 2022 | |||
Interest payment | $ 104,877 | |||
Hard Rock Note [Member] | Subsequent Event [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest payment | $ 17,589 | |||
Equipment Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes payable | 357,963 | |||
Debt instrument, periodic principal payments including interest | $ 11,830 | |||
Debt instrument, maturity date, description | November 2024 and February 2025 | |||
Equipment Loans [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 5.90% | |||
Equipment Loans [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 8.06% | |||
Transportation Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes payable | $ 32,277 | |||
Debt instrument, interest rate | 6.99% | |||
Debt instrument, periodic principal payments including interest | $ 1,169 | |||
Debt instrument, maturity date, description | June 2024 |
SCHEDULE OF FINANCING OBLIGATIO
SCHEDULE OF FINANCING OBLIGATION (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Finance obligations for sale-leaseback transactions | $ 4,178,336 | |
Current principal portion of finance obligation | (65,678) | $ (61,691) |
Non-current portion of finance obligation | $ 4,112,658 | $ 4,178,261 |
SCHEDULE OF AGGREGATE FUTURE _2
SCHEDULE OF AGGREGATE FUTURE LEASE PAYMENTS FOR THE FINANCE OBLIGATION (Details) | Dec. 31, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 316,384 |
2023 | 321,130 |
2024 | 325,947 |
2025 | 330,836 |
2026 | 335,799 |
Thereafter | 3,257,778 |
Total undiscounted lease payments | 4,887,874 |
Residual value of the property (included in the future payments) | 2,188,711 |
Less: effects of discounting | (2,898,249) |
Present value of lease payments | $ 4,178,336 |
FINANCING OBLIGATION (Details N
FINANCING OBLIGATION (Details Narrative) - USD ($) | Dec. 07, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Purchase price | $ 936,718 | $ 1,167,346 | |
Lessee finance lease description | the Company entered into a fifteen-year lease agreement | ||
Financing obligation | $ 4,178,336 | ||
Sale Agreement [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Proceeds from financial obligation | 1,622,106 | ||
Real estate debt retired | 2,638,773 | ||
Financing obligation liability | $ 4,260,879 | ||
Implied interest rate | 6.00% | ||
Financing obligation residual amount | $ 2,188,710 | ||
Principal payments | 61,616 | $ 25,950 | |
Financing obligation | $ 4,178,336 | ||
Sale Agreement [Member] | Vernal, Utaht [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Purchase price | $ 4,448,500 | ||
Lease Agreement [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Lease cost | $ 311,395 | ||
Annual rent increases | 1.50% |
SCHEDULE OF COMPONENTS OF INCOM
SCHEDULE OF COMPONENTS OF INCOME TAX BENEFIT (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current income taxes: | ||
Federal | ||
State | 5,964 | 10,481 |
International | 104,787 | 104,515 |
Current provision for income taxes | 110,751 | 114,996 |
Deferred provision (benefit) for income taxes: | ||
Federal | ||
State | ||
Deferred provision (benefit) for income taxes | ||
Provision for income taxes | $ 110,751 | $ 114,996 |
SCHEDULE OF DEFERRED TAX ASSETS
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||
263A adjustment | $ 14,204 | $ 12,133 |
Accrued expenses | 183,282 | |
Prepaid expenses | (27,498) | (15,458) |
Stock compensation | 159,315 | 122,191 |
Stock option | 71,251 | 70,201 |
Amortization of intangibles | 2,661,090 | 2,839,598 |
Net operating loss | 3,246,413 | 2,898,078 |
Allowances | 1,632,266 | 1,686,952 |
Sale-leaseback – lease liability | 1,010,467 | 1,008,663 |
Others | 22,181 | 20,102 |
Total non-current deferred tax assets | 8,789,689 | 8,825,742 |
Depreciation on sale-leaseback fixed assets | (942,799) | (967,055) |
Depreciation on fixed assets | (46,881) | (251,190) |
Total non-current deferred tax liabilities | (989,680) | (1,218,245) |
Net non-current deferred tax assets/liabilities | 7,800,010 | 7,607,497 |
Less: Valuation Allowance | (7,800,010) | (7,607,497) |
Total deferred tax assets / liabilities |
SCHEDULE OF STATUTORY TAX BENEF
SCHEDULE OF STATUTORY TAX BENEFIT (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Tax benefit at federal statutory rate | $ (88,001) | $ (696,124) |
State income taxes | 4,712 | 8,280 |
Foreign income taxes | 79,445 | |
Permanent differences | 38,458 | (219,880) |
Change in valuation allowance | 192,512 | 903,335 |
Other adjustment/tax expense true-up | 79,651 | |
Other - State rate effect | (13,532) | (92,760) |
Change in status | (125,747) | 66,835 |
Other | 22,904 | 65,659 |
Provision for income taxes | $ 110,751 | $ 114,996 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Loss Carryforwards [Line Items] | ||
Income taxes paid | $ 0 | $ 14,000 |
Net operating loss (NOL) carryforwards | $ 13,424,000 | |
Operating loss carryforwards, description | The pre-2018 losses will begin to expire between 2035 and 2037. The post-2017 losses can be carried forward indefinitely, however, only 80% of these losses can offset taxable income. | |
Valuation allowance on deferred tax assets | $ 3,246,000 | |
Accrued income tax payable, including accrued penalties | 206,000 | 106,000 |
Penalties charged to income tax expense | 6,000 | $ 0 |
Pre-2018 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss (NOL) carryforwards | 10,067,000 | |
Post-2017 [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss (NOL) carryforwards | $ 3,357,000 |
SCHEDULE OF SHARE-BASED COMPENS
SCHEDULE OF SHARE-BASED COMPENSATION, RESTRICTED STOCK UNITS AWARD ACTIVITY (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Restricted Stock Units, beginning balance | 1,796,897 | 706,394 |
Weighted - Average Grant Date Fair Value, beginning balance | $ 0.71 | $ 1.24 |
Number of Restricted Stock Units, Granted | 1,231,541 | 1,544,719 |
Weighted - Average Grant Date Fair Value, Granted | $ 0.76 | $ 0.59 |
Number of Restricted Stock Units, Forfeited | (10,000) | (110,000) |
Weighted - Average Grant Date Fair Value, Forfeited | $ 0.59 | $ 0.59 |
Number of Restricted Stock Units, Vested | (733,528) | (344,216) |
Weighted - Average Grant Date Fair Value, Vested | $ 0.83 | $ 1.29 |
Number of Restricted Stock Units, ending balance | 2,284,910 | 1,796,897 |
Weighted - Average Grant Date Fair Value, ending balance | $ 0.70 | $ 0.71 |
SCHEDULE OF SHARE-BASED COMPE_2
SCHEDULE OF SHARE-BASED COMPENSATION, STOCK OPTIONS, ACTIVITY (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Number of Stock Options outstanding at beginning of period | 498,277 | 588,133 |
Weighted - Average Exercise Price, outstanding at beginning of period | $ 1.53 | $ 1.50 |
Number of Stock Options, Granted | 74,996 | |
Weighted - Average Exercise Price, Granted | $ 0.78 | |
Number of Stock Options, Exercised | (1,865) | |
Weighted - Average Exercise Price, Exercised | $ 0.86 | |
Number of Stock Options, Expired | (172,828) | (51,971) |
Weighted - Average Exercise Price, Expired | $ 1.67 | $ 1.40 |
Number of Stock Options, Canceled or forfeited | 37,885 | |
Weighted - Average Exercise Price, Canceled or forfeited | $ 1.19 | |
Number of Stock Options, Canceled or forfeited | (37,885) | |
Number of Stock Options outstanding at end of period | 398,580 | 498,277 |
Weighted - Average Exercise Price, outstanding at end of period | $ 1.34 | $ 1.53 |
Number of Stock Options, exercised at end of period | 321,586 | 481,076 |
Weighted - Average Exercise Price, exercisable at end of period | $ 1.47 | $ 1.55 |
SCHEDULE OF SHARE-BASED PAYMENT
SCHEDULE OF SHARE-BASED PAYMENT AWARD, STOCK OPTIONS, VALUATION ASSUMPTIONS (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Expected volatility | 59.50% |
Discount rate | 1.25% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 2 years |
Dividend yield |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details Narrative) - USD ($) | Dec. 10, 2021 | Aug. 09, 2021 | Aug. 07, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares outstanding to awards granted | 398,580 | 498,277 | 588,133 | ||||
Compensation expense recognized | $ 756,743 | $ 550,573 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 74,996 | ||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 0.78 | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of restricted units granted | 1,231,541 | 1,544,719 | |||||
Restricted stock units vesting period | 3 years | ||||||
Restricted stock weighted vesting period | 2 years 3 months | ||||||
Unrecognized compensation expense | $ 1,603,321 | ||||||
Employee Stock Incentive Plan [Member] | Board of Directors [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of common stock reserved for issuance | 1,724,128 | ||||||
2015 Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum aggregate number of common shares for issuance | 5,576,326 | ||||||
Shares outstanding to awards granted | 455,000 | ||||||
Compensation expense recognized | $ 3,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 74,996 | ||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 0.78 | $ 0.31 | |||||
2015 Incentive Plan [Member] | Officers and Employees [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | The options vest | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 33.30% | ||||||
2015 Incentive Plan [Member] | Officers and Employees [Member] | First Anniversary [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 33.30% | ||||||
2015 Incentive Plan [Member] | Officers and Employees [Member] | Second Anniversary [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 33.40% | ||||||
2015 Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of restricted units granted | 1,231,541 | ||||||
Restricted stock units vesting period | 3 years | ||||||
Compensation expense recognized | $ 754,000 | $ 545,000 | |||||
2015 Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | Executive Management and Board of Directors [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of restricted units granted | 1,544,719 | ||||||
Restricted stock units vesting period | 3 years | ||||||
2015 Incentive Plan [Member] | Board of Directors [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of additional common stock approved | 2,543,448 |
SCHEDULE OF REVENUE AND PROPERT
SCHEDULE OF REVENUE AND PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHIC LOCATION (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 13,336,149 | $ 10,470,798 |
North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | 11,619,593 | 8,590,933 |
International [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 1,716,556 | $ 1,879,865 |
SCHEDULE OF NET PROPERTY, PLANT
SCHEDULE OF NET PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHIC LOCATION (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | $ 6,930,329 | $ 7,535,098 |
North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | 5,762,066 | 6,008,431 |
International [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property, plant and equipment, net | $ 1,168,263 | $ 1,526,667 |