# EDGAR Filing Document

**Accession Number:** 0001600422
**File Stem:** 0001493152-23-005370
**Filing Date:** 2023-2
**Character Count:** 14615
**Document Hash:** 2caafab0e437755d50968c5ac0cca406
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-23-005370.hdr.sgml**: 20230217

**ACCESSION NUMBER**: 0001493152-23-005370

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230214

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230217

**DATE AS OF CHANGE**: 20230217

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Superior Drilling Products, Inc.
- **CENTRAL INDEX KEY:** 0001600422
- **STANDARD INDUSTRIAL CLASSIFICATION:** OIL & GAS FILED MACHINERY & EQUIPMENT [3533]
- **IRS NUMBER:** 464341605
- **STATE OF INCORPORATION:** UT
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-36453
- **FILM NUMBER:** 23640183

**BUSINESS ADDRESS:**
- **STREET 1:** 1583 SOUTH 1700 EAST
- **CITY:** VERNAL
- **STATE:** UT
- **ZIP:** 84078
- **BUSINESS PHONE:** 435-789-0594

**MAIL ADDRESS:**
- **STREET 1:** 1583 SOUTH 1700 EAST
- **CITY:** VERNAL
- **STATE:** UT
- **ZIP:** 84078

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SD Co Inc
- **DATE OF NAME CHANGE:** 20140218

?xml version="1.0" encoding="utf-8"?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, DC 20549**

**FORM 8-K**

Current Report

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED):

February 14, 2023

**SUPERIOR DRILLING PRODUCTS, INC.**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Utah** | **46-4341605** |
| (State<br> of Incorporation) | (I.R.S. Employer<br> Identification No.) |

---

---

| | |
|:---|:---|
| **1583 South 1700 East**<br> **Vernal, Utah** | **84078** |
| (Address of principal executive offices) | (Zip code) |

---

Commission File Number: **001-36453**

Registrant's telephone number, including area code: **(435) 789-0594**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities Registered Pursuant to Section 12(b) of the Exchange Act:

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| | | |
|:---|:---|:---|
| **Title of each class:** | **Trading Symbol(s)** | **Name of each exchange on which registered:** |
| Common Stock, $0.001 par value | SDPI | NYSE American |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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| | |
|:---|:---|
| **Item 2.02.** | **Results of Operations and Financial Condition.** |

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On February 14, 2023, Superior Drilling Products, Inc. issued a press release announcing its preliminary financial results for the quarter and fiscal year ended December 31, 2022. A copy of the press release is furnished as Exhibit 99.1 to this report and is incorporated herein by reference.

In accordance with General Instruction B.2 of Form 8-K, the information set forth in this Item 2.02 and in the attached Exhibit 99.1 shall be deemed to be "furnished" and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

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| | |
|:---|:---|
| **Item 9.01** | **Financial Statements and Exhibits.** |

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| | |
|:---|:---|
| **Exhibit Number** | **Description** |
| 99.1 | [Press release dated February 14, 2023 regarding preliminary fourth quarter and fiscal year end 2022 earnings.\*](ex99-1.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

\*Furnished herewith.

 

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: February 17, 2023

---

| |
|:---|
| SUPERIOR DRILLING PRODUCTS, INC. |
| */s/ Christopher D. Cashion* |
| Christopher D. Cashion |
| Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

**NEWS**<br> **RELEASE**<br>

1583 S. 1700 E. ● Vernal, UT 84078 ● (435)789-0594

FOR IMMEDIATE RELEASE

**Superior Drilling Products, Inc. Announces**

**Preliminary Full Year 2022 Revenue Growth of Approximately 44%;**

**2023 Initial Revenue Guidance Suggests Further Growth**

● *Unaudited preliminary 2022 revenue expected to be between $19.0 million and $19.2 million, in line with expectations when excluding international DNR tool fleet sale* 

● *Unaudited preliminary fourth quarter revenue expected to be up approximately 33%* 

● *Providing initial guidance for 2023: expect revenue in range of $24 million to $27 million* 

● *International channel partner and distributor agreement under review* 

● *Full year 2022 results to be announced pre-market Friday, March 10, 2023 followed by teleconference and webcast at 12:00 ET that day* 

 

VERNAL, UT, February 14, 2023 — <u>Superior Drilling Products, Inc.</u> (NYSE American: SDPI) ("SDP" or the "Company"), a designer and manufacturer of drilling tool technologies, today announced unaudited preliminary revenue for the fourth quarter and full year ended December 31, 2022, the Company's initial 2023 revenue expectations and an update on its international channel partner agreement.

**Preliminary Revenue for Fourth Quarter and Full Year 2022 Demonstrates Successful Execution of Growth Plans**

SDP's unaudited preliminary 2022 revenue is expected to be in the range of $19.0 million to $19.2 million, in line with the Company's earlier guidance of $18 million to $20 million, when excluding the initial Drill-N-Ream® ("DNR") tool fleet sale to Bin Zayed Petroleum. The midpoint of the preliminary range represents an increase in revenue of 44% over 2021. Fourth quarter 2022 preliminary revenue is expected to be in the range of $5.2 million to $5.3 million and comprised of 85% from North America with the remaining from International markets. Preliminary results are subject to change pending review by the Company's independent accountants.

"We have continued to execute well and capture the strong market conditions in the U.S. and growing market in the Middle East for our wellbore conditioning tool, the DNR. Equally important to our success has been the demand for our contract services work, which largely reflected the manufacture and refurbishment of drill bits and other related tools for a long-time legacy customer. We are extremely proud of our team's performance during 2022, as we have overcome a tight labor market and macro challenges with over forty percent top-line growth," commented Troy Meier, Chairman and CEO.

**2023 Revenue Outlook**

Mr. Meier continued, "Our many accomplishments this past year have positioned us well as we look to 2023 and the growth potential available to SDP. Operationally, we significantly increased our capacity with new machining centers, customized equipment that was designed and fabricated in-house, and improved processes, training and hiring. We also enhanced our sales and marketing team and are on track to open our MENA service center during the first quarter of 2023, which we believe will open a number of opportunities in that region to replicate what we have done in North America. This year has started off with strong demand driven both by the U.S. and Middle East markets and we expect to continue to see growth throughout the remainder of 2023."

**Superior Drilling Products, Inc. Announces Preliminary Full Year 2022 Revenue Growth of Approximately 44%;<br> 2023 Initial Revenue Guidance Suggests Further Growth**

**February 14, 2023**

**Page 2 of 3**

Full year 2023 revenue is expected to be approximately $24 million to $27 million, which represents year-over-year growth of approximately 34% at the mid-point of the range. This revenue estimate assumes no contribution from the recent international channel partner and distribution agreement with Bin Zayed discussed in more detail below.

 

**International Channel Partner Update**

As previously disclosed, the Company entered into an exclusive channel partner and distribution agreement with Bin Zayed Petroleum for Investment Limited to market and distribute SDP's DNR to key end markets in the Middle East and North Africa. As part of the agreement, SDP anticipated receiving an initial $3.8 million purchase of DNR tools during the fourth quarter of 2022. To date, those funds have not been received. As a result, SDP has sent Bin Zayed a Notice of Defaults Letter and has offered Bin Zayed the opportunity to cure the multiple defaults in accordance with the agreement, which SDP believes Bin Zayed has committed. Should Bin Zayed elect not to cure the defaults, then SDP will conclusively determine at that time if it desires to terminate the agreement.

Mr. Meier commented, "We have significant opportunity for the DNR internationally and plan to leverage the success which our unique wellbore conditioning tool has been having in the Middle East market. While we would have appreciated the opportunity to work with Bin Zayed, we recognized that their many priorities impeded our ability to advance at the pace we would have liked in that market with them."

**Fourth Quarter and Full Year 2022 Teleconference and Webcast**

The Company will release its complete fourth quarter and full year 2022 financial results before the opening of financial markets on Friday, March 10, 2023, and will host a conference call that same day.

Friday, March 10, 2023

10:00 a.m. Mountain Time (12:00 p.m. Eastern Time)

Phone: (201) 689-8470

Webcast and accompanying slide presentation: <u>www.sdpi.com</u>

A telephonic replay will be available from 1:00 p.m. MT (3:00 p.m. ET) the day of the teleconference until Friday, March 17, 2023. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13735236 or access the webcast replay via the Company's website at <u>www.sdpi.com</u>, where a transcript will be posted once available.

***About Superior Drilling Products, Inc.***

 ****

<u>Superior Drilling Products, Inc.</u> is an innovative, cutting-edge drilling tool technology company providing cost saving solutions that drive production efficiencies for the oil and natural gas drilling industry. The Company designs, manufactures, repairs and sells drilling tools. SDP drilling solutions include the patented Drill-N-Ream® wellbore conditioning tool and the patented Strider™ oscillation system technology. In addition, SDP is a manufacturer and refurbisher of PDC (polycrystalline diamond compact) drill bits for a leading oil field service company. SDP operates a state-of-the-art drill tool fabrication facility, where it manufactures its solutions for the drilling industry, as well as customers' custom products. The Company's strategy for growth is to leverage its expertise in drill tool technology and innovative, precision machining in order to broaden its product offerings and solutions for the oil and gas industry.

Additional information about the Company can be found at: <u>www.sdpi.com</u>.

 ****

**Superior Drilling Products, Inc. Announces Preliminary Full Year 2022 Revenue Growth of Approximately 44%;<br> 2023 Initial Revenue Guidance Suggests Further Growth**

**February 14, 2023**

**Page 3 of 3**

 ****

***Safe Harbor Regarding Forward Looking Statements***

This news release contains forward-looking statements and information that are subject to a number of risks and uncertainties, many of which are beyond our control. All statements, other than statements of historical fact included in this release, including, without limitations, the continued impact of COVID-19 on the business, the Company's strategy, future operations, success at developing future tools, the Company's effectiveness at executing its business strategy and plans, financial position, estimated revenue and losses, projected costs, prospects, plans and objectives of management, and ability to outperform are forward-looking statements. The use of words "could," "believe," "anticipate," "intend," "estimate," "expect," "may," "continue," "predict," "potential," "project", "forecast," "should" or "plan, and similar expressions are intended to identify forward-looking statements, although not all forward -looking statements contain such identifying words. These statements reflect the beliefs and expectations of the Company and are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, among other factors, the duration of the COVID-19 pandemic and related impact on the oil and natural gas industry; possible impacts on our business due to a global recession; the potential for further conflicts in Eastern Europe; the effectiveness of success at expansion in the Middle East and other markets; options available for market channels in North America; the deferral of the commercialization of the Strider technology; the success of the Company's business strategy and prospects for growth; the market success of the Company's specialized tools, effectiveness of its sales efforts, its cash flow and liquidity; financial projections and actual operating results; the amount, nature and timing of capital expenditures; the availability and terms of capital; competition and government regulations; and general economic conditions. These and other factors could adversely affect the outcome and financial effects of the Company's plans and described herein. The Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date hereof.

**For more information, contact investor relations:**

Deborah K. Pawlowski

Kei Advisors LLC

(716) 843-3908

<u>dpawlowski@keiadvisors.com</u>