SEGMENT REPORTING

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

SEGMENT REPORTING

12. SEGMENT REPORTING

We report our segment results based on our geographic areas of operations, North America and International. These segments have similarities from a product perspective, but management believes that due to operational differences, such as sales models and regulatory environments, information about the segment would be useful to readers of the financial statements.

● North America includes our PDC drill bit and specialty tool sales and contract services business in the United States, Canada and Mexico, which have been aggregated

● International includes our specialty tool rental business in the Middle East

Revenues and certain operating expenses are directly attributable to our segments.

Unallocated corporate costs primarily include corporate shared costs, such as payroll and compensation, professional fees, and rent, as well as costs associated with certain shared research and development activities.

Our operating segments are not evaluated using asset information.

The following table summarizes information about our segments:

	Three Months Ended March 31,
	2024			2023
Revenues:
North America	$	4,249,150		$	5,475,061
International		697,066			806,153
Total revenue	$	4,946,216		$	6,281,214
Operating income:
North America	$	2,205,906		$	3,605,959
International		76,754			109,810
Corporate costs, unallocated		(2,123,213	)		(2,338,007	)
Total operating income	$	159,447		$	1,377,762

North America revenue includes revenue from operations in Mexico totaling approximately $120,000 and $15,000 for the three months ended March 31, 2024 and 2023, respectively. The remainder of the North America revenue was derived from operations in the United States of America.

Information about products and services

See Note 2 – Revenue.