Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Jun. 30, 2013 | Nov. 13, 2013 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'METWOOD INC. | ' |
Entity Central Index Key | '0000032567 | ' |
Document Type | '10-K | ' |
Document Period End Date | 30-Jun-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--06-30 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Public Float | ' | $3,554,511 |
Entity Common Stock, Shares Outstanding | ' | 15,221,647 |
Document Fiscal Period Focus | 'FY | ' |
Document Fiscal Year Focus | '2013 | ' |
Consolitated_Balance_Sheets
Consolitated Balance Sheets (USD $) | Jun. 30, 2013 | Jun. 30, 2012 |
Current Assets | ' | ' |
Cash and cash equivalents | $174,650 | $58,646 |
Accounts receivable, net | 238,515 | 231,081 |
Inventory | 930,672 | 961,780 |
Other current assets | 30,160 | 31,871 |
Total current assets | 1,373,997 | 1,283,378 |
Leasehold and land improvements | 266,689 | 264,820 |
Furniture, fixtures and equipment | 93,243 | 93,458 |
Computer hardware, software and peripherals | 178,605 | 167,763 |
Machinery and shop equipment | 465,085 | 459,087 |
Vehicles | 372,646 | 381,373 |
Land improvements | 67,959 | 67,959 |
Total | 1,444,227 | 1,434,460 |
Less accumulated depreciation | -1,063,326 | -1,001,068 |
Net property and equipment | 380,901 | 433,392 |
Deferred tax asset, less valuation reserve | 189,308 | 112,158 |
TOTAL ASSETS | 1,944,206 | 1,828,928 |
Current Liabilities | ' | ' |
Accounts payable | 135,248 | 79,177 |
Customer deposits | 115,011 | 74,688 |
Accrued expenses | 10,791 | 10,187 |
Total current liabilities | 261,050 | 164,052 |
Due to related company | 100,000 | 112,711 |
Total long-term liabilities | 100,000 | 112,711 |
Total liabilities | 361,050 | 276,763 |
Common stock, ($.001 par,100,000,000 shares authorized; 15,2212,647 shares issued and outstanding at June 30, 2013) | 15,222 | 12,232 |
Common stock not yet issued ($.001 par, 8,150 shares at June 30, 2013 | 8 | 8 |
Additional paid-in capital | 1,899,773 | 1,544,268 |
Retained earnings | -331,847 | -4,343 |
Total stockholders' equity | 1,583,156 | 1,552,165 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $1,944,206 | $1,828,928 |
Consolitated_Balance_Sheets_Pa
Consolitated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2013 | Jun. 30, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Common Stock Authorized | 100,000,000 | 100,000,000 |
Common Stock Issued and outstanding | 15,221,647 | 12,131,797 |
Common Stock not issued | 8,150 | 8,150 |
Par Value | $0.00 | $0.00 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |
Jun. 30, 2013 | Jun. 30, 2012 | |
REVENUES | ' | ' |
Construction sales | $2,157,379 | $1,925,670 |
Engineering sales | ' | 14,856 |
Gross sales | 2,157,379 | 1,940,526 |
Cost of construction sales | 1,359,162 | 1,234,196 |
Cost of engineering sales | ' | 19,821 |
Gross cost of sales | 1,359,162 | 1,254,017 |
Gross profit | 798,217 | 686,509 |
Advertising | 29,607 | 41,719 |
Bad debt provision | 110 | 15,058 |
Depreciation | 22,289 | 36,040 |
Impairment losses on intangible assets | ' | 253,088 |
Insurance | 22,584 | 23,521 |
Payroll expenses | 767,770 | 489,196 |
Professional fees | 60,022 | 49,757 |
Rent | 80,820 | 80,600 |
Research and development | 5,073 | 15,142 |
Telephone | 19,525 | 17,787 |
Vehicle | 30,683 | 47,619 |
Other | 82,467 | 63,441 |
Total administrative expenses | 1,212,838 | 1,135,402 |
Operating loss | -414,621 | -448,893 |
Other income | 9,967 | 18,876 |
Loss before income taxes | -404,654 | -430,017 |
Income tax benefit | -77,150 | -75,098 |
Net loss | ($327,504) | ($354,919) |
Basic and diluted deficit per share | ($0.02) | ($0.03) |
Weighted average number of shares | 15,211,647 | 12,231,797 |
Consolitated_Statements_of_Cas
Consolitated Statements of Cash Flows (USD $) | 12 Months Ended | |
Jun. 30, 2013 | Jun. 30, 2012 | |
Statement of Cash Flows [Abstract] | ' | ' |
Net loss | ($327,504) | ($354,919) |
Adjustments to reconcile net loss to net cash provided by (used for) operating activities: Depreciation, net of property disposals | 62,258 | 65,975 |
Provision for deferred income taxes | -77,150 | -75,098 |
Accounts receivable | -7,134 | 6,539 |
Impairment loss on intangible assets | ' | 253,088 |
Inventory | 31,108 | -105,915 |
Prepaid expenses | 1,411 | 18,962 |
Refundable income taxes | ' | 42,606 |
Accounts payable and accrued expenses | 96,998 | 52,150 |
Net cash provided from (used for) operating activities | -220,013 | -96,612 |
INVESTING ACTIVITIES | ' | ' |
Issuance of common stock | 358,495 | ' |
Purchases | -29,567 | -39,361 |
Property disposals | 19,800 | 68,290 |
Net cash provided from investing activities | 348,728 | 28,929 |
Net repayment to related party | -12,711 | -24,231 |
Net borrowings from vehicle financing | ' | -29,888 |
Net cash used for financing activities | -12,711 | -54,119 |
Net increase (decrease) in cash | 116,004 | -121,802 |
Cash, beginning of the year | 58,646 | 180,448 |
Cash, end of the period | $174,650 | $58,646 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders Equity (USD $) | Common Shares (000s) | Common Shares ($.001Par) | Common Shares Not Yet Issued | Common Shares Not Yet Issued ($.001Par) | Additional Paid-In Capital | Retained Earnings / Accumulated Deficit |
Begining Balance, amount at Jun. 30, 2010 | ' | $12,232 | ' | $8 | $1,544,268 | ($4,343) |
Begining Balance, shares at Jun. 30, 2010 | 12,232 | ' | 8 | ' | ' | ' |
Net Loss for year | ' | ' | ' | ' | ' | -354,919 |
Issuance of common stock to employees (shares) | 560 | ' | ' | ' | ' | ' |
Issuance of common stock to employees (amount) | ' | 560 | ' | ' | 285,040 | ' |
Issuance of common stock to related company (shares) | 2,430 | ' | ' | ' | ' | ' |
Issuance of common stock to related company (amount) | ' | 2,430 | ' | ' | 70,465 | ' |
Ending Balance, shares at Jun. 30, 2011 | 12,232 | ' | ' | ' | ' | ' |
Ending Balance, amount at Jun. 30, 2011 | ' | $12,232 | ' | $8 | $1,544,268 | $350,576 |
Net Loss year end at Jun. 30, 2011 | ' | ' | ' | ' | ' | ($327,504) |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders Equity (Parenthetical) (USD $) | 12 Months Ended | |
Jun. 30, 2013 | Jun. 30, 2012 | |
Statement of Stockholders' Equity [Abstract] | ' | ' |
Common Shares (000s) | 12,232 | 12,232 |
Common Shares ($.001Par) | $12,232 | $12,232 |
Common Shares Not Yet Issued | 8 | 8 |
Common Shares Not Yet Issued ($.001Par) | $8 | $8 |
NOTE_1_ORGANIZATION_AND_OPERAT
NOTE 1 - ORGANIZATION AND OPERATIONS | 12 Months Ended |
Jun. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
NOTE 1 - ORGANIZATION AND OPERATIONS | ' |
NOTE 1 - ORGANIZATION AND OPERATIONS | |
Metwood, Inc. ("Metwood") was organized under the laws of the Commonwealth of Virginia on April 7, 1993. On June 30, 2000, Metwood entered into an Agreement and Plan of Reorganization in which the majority of its outstanding common stock was acquired by a publicly held Nevada shell corporation. The acquisition was a tax-free exchange for federal and state income tax purposes and was accounted for as a reverse merger in accordance with Accounting Principles Board ("APB") Opinion No. 16. Upon acquisition, the name of the shell corporation was changed to Metwood, Inc., and Metwood, Inc., the Virginia Corporation, became a wholly owned subsidiary of Metwood, Inc., the Nevada Corporation. The publicly traded shell corporation had not had a material operating history for several years prior to the merger. | |
Effective January 1, 2002, Metwood acquired certain assets of Providence Engineering, PC ("Providence"), a professional engineering firm with customers in the same proximity as Metwood, for $350,000 and accounted for the transaction under the purchase method of accounting. As of June 30, 2012, Providence is no longer an operating segment of the Company. We have concluded that the majority of the engineering portion of the business can best be handled through a strategic partnership with an outside engineering firm. We believe that continuing research and development efforts will soon enable us to meet code requirements for our products and will eliminate the need for individual engineering seals. | |
We provide construction-related products and engineering services to residential customers and contractors, commercial contractors, developers and retail enterprises, primarily in southwestern Virginia. |
NOTE_2_SUMMARY_OF_SIGNIFICANT_
NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2013 | |
Accounting Policies [Abstract] | ' |
NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES | |
Basis of Presentation - The financial statements include the accounts of Metwood, Inc. (a Nevada corporation) and its wholly owned subsidiary, Metwood Inc. (a Virginia corporation) prepared in accordance with accounting principles generally accepted in the United States of America and pursuant to the rules and regulations of the Securities and Exchange Commission. All significant intercompany balances and transactions have been eliminated. | |
Management's Use of Estimates - The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Fair Value of Financial Instruments - For certain of our financial instruments, none of which are held for trading, including cash, accounts receivable, accounts payable and accrued expenses, and the bank lines of credit, the carrying amounts approximate fair value due to their short maturities. | |
Cash and Cash Equivalents - For purposes of the Consolidated Statements of Cash Flows, we consider liquid investments with an original maturity of three months or less to be cash equivalents. We maintain our cash in bank deposit accounts, which, at times, may exceed the federally insured limit of $250,000. We have not experienced any losses in such accounts and believe we are not exposed to any significant credit risk on cash and cash equivalents. | |
Accounts Receivable - We grant credit in the form of unsecured accounts receivable to our customers based on an evaluation of their financial condition. We perform ongoing credit evaluations of our customers. The estimate of the allowance for doubtful accounts, which is charged off to bad debt expense, is based on management’s assessment of current economic conditions and historical collection experience with each customer. At both June 30, 2013 and 2012, the allowance for doubtful accounts was $5,000. Specific customer receivables are considered past due when they are outstanding beyond their contractual terms and are charged off to the allowance for doubtful accounts when determined uncollectible. For the years ended June 30, 2013 and 2012, the bad debt expense was $110 and $15,058, respectively. | |
Inventory - Inventory, consisting primarily of metal and wood raw materials, is located on our premises and is stated at the lower of cost or market using the first-in, first-out method. | |
Property and Equipment - Property and equipment are stated at cost less accumulated depreciation and are depreciated over their estimated useful lives using the straight-line method. Recovery periods range from three to thirty-nine years. Upon retirement or sale, the cost and related accumulated depreciation are removed from the balance sheet, and the resulting gain or loss is reflected in other income and expense. Maintenance and repairs are charged to operations as incurred. | |
Impairment of Long-lived Assets - We evaluate our long-lived assets for indications of possible impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by comparing the carrying amounts to the future net undiscounted cash flows which the assets are expected to generate. Should an impairment exist, the impairment would be measured by the amount by which the carrying amount of the assets exceeds the projected discounted future cash flows arising from the asset. There have been no such impairments of long-lived assets through June 30, 2013 and 2012. | |
Patents - We have been assigned several key product patents developed by certain Company officers. No value has been recorded in our financial statements because the fair value of the patents was not determinable within reasonable limits at the date of assignment. | |
Goodwill - We account for goodwill and intangibles under SFAS No. 142, “Goodwill and Other Intangible Assets.” As such, goodwill is not amortized, but is subject to annual impairment reviews, or more frequent reviews if events or circumstances indicate there may be impairment. Goodwill was recorded at the time of Metwood's acquisition of Providence Engineering. Since Providence is no longer an active company (it has no employees and carries on no business activities), all goodwill carried on the books was 100% impaired and accordingly was written off as of June 30, 2012. | |
Revenue Recognition - Revenue is recognized when goods are shipped and earned or when services are performed, provided collection of the resulting receivable is probable. If any material contingencies are present, revenue recognition is delayed until all material contingencies are eliminated. Further, no revenue is recognized unless collection of the applicable consideration is probable. | |
Income Taxes - Income taxes are accounted for in accordance with FASB ASC 740, Income Taxes. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and for net operating loss carry forwards, where applicable. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or the entire deferred tax asset will not be realized. Deferred tax assets and liabilities are adjusted for the effect of changes in tax laws and rates on the date of enactment. | |
Research and Development - We perform research and development on our metal/wood products, new product lines, and new patents. Costs, if any, are expensed as they are incurred. For the year ended June 30, 2013, expenses were $5,073 and for the year ended June 30, 2012, expenses were $15,142. | |
Advertising - We expense advertising costs as incurred. However, certain expenditures are treated as prepaid (such as trade show fees) if they are for goods or services which will not be received until after the end of the accounting period. These costs are subsequently recognized as expenses in those periods in which the goods or services are received. | |
Earnings Per Common Share - Basic earnings per share amounts are based on the weighted average shares of common stock outstanding. If applicable, diluted earnings per share would assume the conversion, exercise or issuance of all potential common stock instruments such as options, warrants and convertible securities, unless the effect is to reduce a loss or increase earnings per share. This presentation has been adopted for the years presented. There were no adjustments required to net income for the years presented in the computation of diluted earnings per share. | |
Recent Accounting Pronouncements - In April 2013, the FASB issued ASU No. 2013-07, Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting (“ASU 2013-07"). With ASU 2013-07, the FASB amends the guidance in the FASB Accounting Standards Codification [FASB ASC] Topic 205, entitled Presentation of Financial Statements. The amendments serve to clarify when and how reporting entities should apply the liquidation basis of accounting. The guidance is applicable to all reporting entities, whether they are public or private companies or not-for-profit entities. The guidance also provides principles for the recognition of assets and liabilities and disclosures, as well as related financial statement presentation requirements. With the new guidance, reporting entities in liquidation are required to prepare financial statements using a basis of accounting that communicates information to users of the financial statements to enable those users to develop expectations about how much the reporting entities will have available for distribution to investors after disposing of its assets and settling its obligations. The requirements in ASU 2013-07 are effective for annual reporting periods beginning after December 15, 2013, and interim reporting periods within those annual periods. Reporting entities are required to apply the requirements in ASU 2013-07 prospectively from the day that liquidation becomes imminent. Early adoption is permitted. | |
Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying consolidated financial statements. |
NOTE_3_RELATED_PARTY_TRANSACTO
NOTE 3 - RELATED PARTY TRANSACTONS | 12 Months Ended |
Jun. 30, 2013 | |
Notes to Financial Statements | ' |
NOTE 3 - RELATED PARTY TRANSACTONS | ' |
NOTE 3 - RELATED-PARTY TRANSACTIONS | |
For the years ended June 30, 2013 and 2012, we had sales of $21,455 and $24,231, respectively, to our shareholder and CEO, Robert Callahan. As of June 30, 2013 and 2012, the related receivable was $-0-. | |
Also, from time to time, we contract with a construction company 50% owned by our CEO which provides capital improvements and maintenance work on our buildings and grounds. Billings for such services during the years ended June 30, 2013 and 2012 were $10,080 and $-0-, respectively. | |
NOTE_4_COMMITMENTS
NOTE 4 - COMMITMENTS | 12 Months Ended |
Jun. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
NOTE 4 - COMMITMENTS | ' |
NOTE 4 - COMMITMENT | |
In prior years, we implemented a stock-based incentive compensation plan for our employees. Participating employees have an after-tax deduction withheld by the Company throughout the calendar year. As of December 31 of each year, the employee is considered vested in the plan, and we will match the participating employee's withheld amounts. We may also make a discretionary contribution based upon pay incentives or attendance. Periodically, we will purchase restricted stock on behalf of the employee in the amount of his withholdings, our match, and any discretionary contributions. |
NOTE_5_EQUITY
NOTE 5 - EQUITY | 12 Months Ended |
Jun. 30, 2013 | |
Equity [Abstract] | ' |
NOTE 5 - EQUITY | ' |
NOTE 5 - EQUITY | |
During the years ended June 30, 2013, we issued 560,000 common shares for the benefit of employees included in our stock-based incentive compensation program. There were no shares issued in the program for the year ended June 30, 2012. In addition, 2,429,850 shares were issued to a related party as payment for a finder's fee. | |
NOTE_6_SALES_OF_FIXED_ASSETS_A
NOTE 6 - SALES OF FIXED ASSETS AND RELATED OPERATING LEASE | 12 Months Ended | |||||
Jun. 30, 2013 | ||||||
Notes to Financial Statements | ' | |||||
NOTE 6 - SALES OF FIXED ASSETS AND RELATED OPERATING LEASE | ' | |||||
NOTE 6 - SALE OF FIXED ASSETS AND RELATED OPERATING LEASE | ||||||
During the year ended June 30, 2005, we entered into a sales and leaseback transaction with a related party. We sold the various buildings at our corporate headquarters which house our manufacturing plants, executive offices and other buildings for $600,000 in cash. We simultaneously entered into a commercial lease agreement with the related party whereby we are committed to lease back these same properties for $6,800 per month over a ten-year term expiring December 31, 2014. Rent expense charged to operations related to the commercial lease for the years ended June 30, 2013 and 2012 was $81,600 and $80,600, respectively. | ||||||
Future minimum lease payments under non-cancelable operating leases as of June 30, 2013 are as follows: | ||||||
Year Ending June 30, | ||||||
2014 | $ | 81,600 | ||||
2015 and beyond | ||||||
NOTE_8_INCOME_TAXES
NOTE 8 - INCOME TAXES | 12 Months Ended | ||||||||
Jun. 30, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
NOTE 8 - INCOME TAXES | ' | ||||||||
NOTE 8 - INCOME TAXES | |||||||||
The components of income tax benefit consist of: | |||||||||
2013 | 2012 | ||||||||
Current: | |||||||||
Federal | $ | (20,681 | ) | $ | — | ||||
State | (5,598 | ) | — | ||||||
(26,279 | ) | — | |||||||
Deferred: | |||||||||
Federal | (44,569 | ) | (64,362 | ) | |||||
State | (6,302 | ) | (10,736 | ) | |||||
(50,871 | ) | (75,098 | ) | ||||||
Total income tax benefit | $ | (77,150 | ) | $ | (75,098 | ) | |||
The reconciliation of the provision for income taxes at the U. S. federal statutory income tax rate of 39% to the Company's income taxes is as follows: | |||||||||
Loss before income taxes | $ | (404,654 | ) | $ | (430,017 | ) | |||
Income tax benefit computed at the statutory rate | (157,815 | ) | (167,706 | ) | |||||
State income tax benefit, net of federal tax effect | (14,517 | ) | (15,459 | ) | |||||
Non-deductible expenses | 3,119 | 2,977 | |||||||
Valuation reserve adjustment | 77,150 | 89,209 | |||||||
Effect of graduated income tax rates | 14,912 | 15,881 | |||||||
Total income tax benefit | $ | (77,150 | ) | $ | (75,098 | ) | |||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount used for federal and state income tax purposes. We have recorded deferred tax assets at June 30, 2013 and 2012, net of a valuation reserve, of $189,308 and $112,158, respectively. The components of these amounts are as follows: | |||||||||
2013 | 2012 | ||||||||
Tax loss carryforward | $ | 102,666 | $ | 99,047 | |||||
Depreciation and miscellaneous | 86,642 | 13,111 | |||||||
Net deferred tax asset | $ | 189,308 | $ | 112,158 | |||||
NOTE_9_SEGMENT_REPORTING
NOTE 9 - SEGMENT REPORTING | 12 Months Ended | |||||||
Jun. 30, 2013 | ||||||||
Segment Reporting [Abstract] | ' | |||||||
NOTE 9 - SEGMENT INFORMATION | ' | |||||||
NOTE 9 - SEGMENT INFORMATION | ||||||||
Until June 30, 2012, we operated in two principal business segments: (1) construction-related products and (2) engineering services. Performance of each segment is evaluated based on profit or loss from operations before income taxes. These reportable segments are strategic business units that offer different products and services. Summarized revenue and expense information by segment for the years ended June 30, 2013 and 2012 is as follows: | ||||||||
2013 | 2012 | |||||||
Construction: | ||||||||
Sales | $ | 2,157,379 | $ | 1,925,670 | ||||
Cost of sales | (1,359,162 | ) | (1,234,196 | ) | ||||
Intersegment expenses | — | (200 | ) | |||||
Intersegment revenues | — | 6,000 | ||||||
Corporate and other expenses | (1,212,838 | ) | (1,032,671 | ) | ||||
Segment loss | $ | (414,621 | ) | $ | (335,397 | ) | ||
Total assets | $ | 1,944,206 | $ | 1,828,928 | ||||
Capital expenditures | $ | (29,567 | ) | $ | 39,361 | |||
Depreciation | $ | 79,631 | $ | 97,821 | ||||
Interest expense | $ | 28 | $ | — | ||||
Engineering: | ||||||||
Sales | $ | — | $ | 14,856 | ||||
Cost of sales | — | (19,821 | ) | |||||
Intersegment revenues | — | 200 | ||||||
Intersegment expenses | — | (6,000 | ) | |||||
Corporate and other expenses | — | (8,757 | ) | |||||
Segment loss | $ | — | $ | (19,522 | ) | |||
Total assets | $ | — | $ | — | ||||
Capital expenditures | $ | — | $ | — | ||||
Depreciation | $ | — | $ | 4,120 | ||||
Interest expense | $ | — | $ | 111 | ||||
NOTE_10_SUBSEQUENT_EVENTS
NOTE 10 - SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2013 | |
Accounting Policies [Abstract] | ' |
SUBSEQUENT EVENTS | ' |
NOTE 10 – SUBSEQUENT EVENTS | |
The following events occurred subsequent to the period covered by this Form 10-K Annual Report for the period ended June 30, 2013. | |
Amendment to Company’s Articles of Incorporation | |
On October 1, 2013, the Company filed with the Nevada Secretary of State a Certificate of Amendment to the Company’s Articles of Incorporation. The Amendment was approved by a “Unanimous Written Consent of The Board of Directors of Metwood, Inc.”, on August 6, 2013, pursuant to the authority granted them by a “Written Consent of The Holders of a Majority of the Voting Shares of Metwood, Inc.”, dated August 6, 2013. The information regarding this issue was fully disclosed in the Company’s Form 8-K Report filed on October 2, 2013. The Amendment incorporated the following changes: | |
a. The total number of shares of "Preferred Stock" that the Corporation is authorized to issue is 40,000,000 shares with a par value of $0.001 per share. | |
b. Grant to the Board of Directors the full right and authority to increase or otherwise change the authorized shares of common stock and preferred stock without any shareholder action or approval. | |
c. Grant to the Board of Directors the full right and authority to change the name of the Corporation at a future date without out any shareholder action or approval. | |
Metwood had previously entered into a Member Interests Purchase Agreement (the "Agreement") dated June 30, 2013 with Global Energy Group LLC. The Company has determined not to consummate the transaction. Therefore, the Company has decided to proceed with filing a 10K excluding information regarding Global Energy Group LLC. At the present time, both parties continue their due diligence as negotiations proceed. Please look for additional information on these proceedings in future filings. |
NOTE_2_SUMMARY_OF_SIGNIFICANT_1
NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation - The financial statements include the accounts of Metwood, Inc. (a Nevada corporation) and its wholly owned subsidiary, Metwood Inc. (a Virginia corporation) prepared in accordance with accounting principles generally accepted in the United States of America and pursuant to the rules and regulations of the Securities and Exchange Commission. All significant intercompany balances and transactions have been eliminated. | |
Management's Use of Estimates | ' |
Management's Use of Estimates - The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. At June 30, 2012 and 2011, the significant estimates used by management include the valuation of its goodwill. Actual results could differ from those estimates. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments - For certain of our financial instruments, none of which are held for trading, including cash, accounts receivable, inventory, other current asstes, accounts payable and accrued expenses, and the bank lines of credit, the carrying amounts approximate fair value due to their short maturities. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents - For purposes of the Consolidated Statements of Cash Flows, we consider liquid investments with an original maturity of three months or less to be cash equivalents. We maintain our cash in bank deposit accounts, which, at times, may exceed the federally insured limit of $250,000. We have not experienced any losses in such accounts and believe we are not exposed to any significant credit risk on cash and cash equivalents. | |
Accounts Receivable | ' |
Accounts Receivable - We grant credit in the form of unsecured accounts receivable to our customers based on an evaluation of their financial condition. We perform ongoing credit evaluations of our customers. The estimate of the allowance for doubtful accounts, which is charged off to bad debt expense, is based on management’s assessment of current economic conditions and historical collection experience with each customer. At both June 30, 2012 and 2011, the allowance for doubtful accounts was $5,000. Specific customer receivables are considered past due when they are outstanding beyond their contractual terms and are charged off to the allowance for doubtful accounts when determined uncollectible. For the years ended June 30, 2012 and 2011, the bad debt expense was $15,058 and $13,332, respectively. | |
Inventory | ' |
Inventory - Inventory, consisting primarily of metal and wood raw materials, is located on our premises and is stated at the lower of cost or market using the first-in, first-out method. | |
Property and Equipment | ' |
Property and Equipment - Property and equipment are stated at cost less accumulated depreciation and are depreciated over their estimated useful lives using the straight-line method. Recovery periods range from three to thirty-nine years. Upon retirement or sale, the cost and related accumulated depreciation are removed from the balance sheet, and the resulting gain or loss is reflected in other income and expense. Maintenance and repairs are charged to operations as incurred. | |
Impairment of Long-lived Assets | ' |
Impairment of Long-lived Assets - We evaluate our long-lived assets for indications of possible impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by comparing the carrying amounts to the future net undiscounted cash flows which the assets are expected to generate. Should an impairment exist, the impairment would be measured by the amount by which the carrying amount of the assets exceeds the projected discounted future cash flows arising from the asset. There have been no such impairments of long-lived assets through June 30, 2012 and 2011. | |
Patents | ' |
Patents - We have been assigned several key product patents developed by certain Company officers. No value has been recorded in our financial statements because the fair value of the patents was not determinable within reasonable limits at the date of assignment | |
Goodwill | ' |
Goodwill - We account for goodwill and intangibles under FASB ASC 350, “Goodwill and Other Intangible Assets.” As such, goodwill is not amortized, but is subject to annual impairment reviews, or more frequent reviews if events or circumstances indicate there may be an impairment. Goodwill was recorded at the time of Metwood's acquisition of Providence Engineering. Since Providence is no longer an active company (it has no employees and carries on no business activities), all goodwill carried on the books is 100% impaired and accordingly has been written off. | |
Revenue Recognition | ' |
Revenue Recognition - Revenue is recognized when goods are shipped and earned or when services are performed, provided collection of the resulting receivable is probable. If any material contingencies are present, revenue recognition is delayed until all material contingencies are eliminated. Further, no revenue is recognized unless collection of the applicable consideration is probable | |
Income Taxes | ' |
Income Taxes - Income taxes are accounted for in accordance with FASB ASC 740, Income Taxes. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and for net operating loss carry forwards, where applicable. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or the entire deferred tax asset will not be realized. Deferred tax assets and liabilities are adjusted for the effect of changes in tax laws and rates on the date of enactment. | |
Research and Development | ' |
Research and Development - We perform research and development on our metal/wood products, new product lines, and new patents. Costs, if any, are expensed as they are incurred. For the year ended June 30, 2012, expenses were $15,142 and for the year ended June 30, 2011, expenses were $10,555. | |
Advertising | ' |
Advertising - We expense advertising costs as incurred. However, certain expenditures are treated as prepaid (such as trade show fees) if they are for goods or services which will not be received until after the end of the accounting period. These costs are subsequently recognized as expenses in those periods in which the goods or services are received. | |
Earnings (Loss) Per Common Shares | ' |
Earnings (Loss) Per Common Share - Basic earnings (loss) per share amounts are based on the weighted average shares of common stock outstanding. If applicable, diluted earnings (loss) per share would assume the conversion, exercise or issuance of all potential common stock instruments such as options, warrants and convertible securities, unless the effect is to reduce a loss or increase earnings per share. This presentation has been adopted for the years presented. There were no adjustments required to net income (loss) for the years presented in the computation of diluted earnings (loss) per share. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements - In May 2011, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) No. 2011-04 amending Topic 820 that substantially converged the requirements for fair value measurement and disclosure between the FASB and the International Accounting Standards Board (“IASB”). This ASU is largely consistent with existing fair value measurement principles under U.S. GAAP. This ASU was effective for the Company in its quarter beginning January 1, 2012 and has not had a material impact on the Company’s financial statements. | |
In June 2011, the FASB issued ASU 2011-05 amending Topic 220 that addressed the presentation of comprehensive income in the financial statements. This accounting update allows an entity the option to present the total of comprehensive income, the components of net income and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In addition, this ASU eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders’ equity and does not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. This ASU is effective for the Company in its quarter beginning January 1, 2012 and is not expected to have a material impact on the Company’s financial statements other than modifying the presentation of comprehensive income. | |
In June 2011, the FASB issued Accounting Standards Update (ASU) No. 2011-05 "Comprehensive Income (Topic 220): Presentation of Comprehensive Income." The Update is intended to increase the prominence of other comprehensive income in financial statements. In U.S. GAAP, the ASU will supersede some of the guidance in Topic 220 of the accounting Codification. The main provisions of this Update provide that an entity that reports items of other comprehensive income has the option to present comprehensive income in either one or two consecutive financial statements. A single statement must present the components of net income and total net income, the components of other comprehensive income and total other comprehensive income, and a total for comprehensive income. In a two-statement approach, an entity must present the components of net income and total net income in the first statement. That statement must be immediately followed by a financial statement that presents the components of other comprehensive income, a total for other comprehensive income, and a total for comprehensive income. The option in current GAAP that permits the presentation of other comprehensive income in the statement of changes in equity has been eliminated. The amendments in this Update should be applied retrospectively. For public entities, the amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. For nonpublic entities, the amendments are effective for fiscal years ending after December 15, 2012, and interim and annual periods thereafter. Early adoption is permitted, because compliance with the amendments is already permitted. We are evaluating the impact this Update will have on our consolidated financial statements. | |
In September 2011, the FASB issued ASU 2011-08 amending Topic 350 that allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. Under this new ASU, if a Company chooses the qualitative method, an entity would not be required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. This ASU is effective for annual and interim impairment tests performed for fiscal years beginning after December 15, 2011. Early adoption is permitted. The Company does not expect this ASU to have a material impact on its financial statements. | |
Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying consolidated financial statements. | |
NOTE_6_SALES_OF_FIXED_ASSETS_A1
NOTE 6 - SALES OF FIXED ASSETS AND RELATED OPERATING LEASE (Tables) (USD $) | 12 Months Ended | ||
Jun. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2013 | |
Notes to Financial Statements | ' | ' | ' |
Lease Contract | ' | $81,600 | $81,600 |
NOTE_9_SEGMENT_REPORTING_Table
NOTE 9 - SEGMENT REPORTING (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2013 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Segment Informaiton | ' | ||||||||
2013 | 2012 | ||||||||
Construction: | |||||||||
Sales | $ | 2,157,379 | $ | 1,925,670 | |||||
Cost of sales | (1,359,162 | ) | (1,234,196 | ) | |||||
Intersegment expenses | — | (200 | ) | ||||||
Intersegment revenues | — | 6,000 | |||||||
Corporate and other expenses | (1,212,838 | ) | (1,032,671 | ) | |||||
Segment loss | $ | (414,621 | ) | $ | (335,397 | ) | |||
Total assets | $ | 1,944,206 | $ | 1,828,928 | |||||
Capital expenditures | $ | (29,567 | ) | $ | 39,361 | ||||
Depreciation | $ | 79,631 | $ | 97,821 | |||||
Interest expense | $ | 28 | $ | — | |||||
Engineering: | |||||||||
Sales | $ | — | $ | 14,856 | |||||
Cost of sales | — | (19,821 | ) | ||||||
Intersegment revenues | — | 200 | |||||||
Intersegment expenses | — | (6,000 | ) | ||||||
Corporate and other expenses | — | (8,757 | ) | ||||||
Segment loss | $ | — | $ | (19,522 | ) | ||||
Total assets | $ | — | $ | — | |||||
Capital expenditures | $ | — | $ | — | |||||
Depreciation | $ | — | $ | 4,120 | |||||
Interest expense | $ | — | $ | 111 |
NOTE_3_RELATED_PARTY_TRANSACTO1
NOTE 3 - RELATED PARTY TRANSACTONS (Details Narrative) (USD $) | 12 Months Ended | ||
Jun. 30, 2013 | Jun. 30, 2012 | Dec. 12, 2012 | |
Notes to Financial Statements | ' | ' | ' |
Sales | $21,455 | $24,231 | ' |
Receivables | ' | ' | ' |
Capital Improvement | 10,080 | ' | ' |
Convertible Promissory Note CAHAS Moutain Properties, LLC | ' | ' | $100,000 |
Interest Rate | ' | ' | 0.06 |
NOTE_5_EQUITY_Details_Narrativ
NOTE 5 - EQUITY (Details Narrative) (USD $) | Jun. 30, 2013 |
Note 5 - Equity Details Narrative Usd | ' |
Common shares issued | 560,000 |
Shares issued to related party for consulting fees | 2,429,850 |
NOTE_6_SALES_OF_FIXED_ASSETS_A2
NOTE 6 - SALES OF FIXED ASSETS AND RELATED OPERATING LEASE (Details Narrative) (USD $) | 12 Months Ended | 114 Months Ended | ||
Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2006 | Dec. 31, 2014 | |
Notes to Financial Statements | ' | ' | ' | ' |
[ProceedsFromSaleOfOtherPropertyPlantAndEquipment] | ' | ' | $600,000 | ' |
[LeaseIncentivePayable] | ' | ' | ' | '6,800 |
[OperatingLeasesRentExpense] | $81,600 | $80,600 | ' | ' |
NOTE_8_INCOME_TAXES_Details_Na
NOTE 8 - INCOME TAXES (Details Narrative) (USD $) | 12 Months Ended | |
Jun. 30, 2013 | Jun. 30, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' |
Federal Income Tax Benefit | ($20,681) | ' |
State Taxes | -5,598 | ' |
Total Income Tax Benefit | -26,279 | ' |
Loss Before Income Taxes | -404,654 | -430,017 |
Computed at the Statutory Rate | -15781500.00% | -16770600.00% |
State Income Tax benefit | -14,517 | -15,459 |
Non-deductible Expenses | 3,120 | 2,977 |
Valuation Reserve Adjustment | 77,150 | 89,209 |
Effect of graduated income tax rates | 14,912 | 15,881 |
Total Income Tax Benefits | -77,150 | -75,098 |
Valuation Reserves-Deferred Tax Assets | 189,308 | 112,159 |
Tax Loss carryforward | 102,666 | 99,047 |
Depreciation - Miscellaneous | 86,642 | 13,112 |
Deferred tax Asset | $189,308 | $112,159 |
NOTE_10_SUBSEQUENT_EVENTS_Deta
NOTE 10 - SUBSEQUENT EVENTS (Details Narrative) (USD $) | Oct. 02, 2013 | Jun. 30, 2013 | Jun. 30, 2012 |
Accounting Policies [Abstract] | ' | ' | ' |
Preferred stock authorized | 40,000,000 | ' | ' |
Par Value | $0.00 | $0.00 | $0.00 |