Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Dec. 31, 2012 | Feb. 13, 2013 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'METWOOD INC. | ' |
Entity Central Index Key | '0000032567 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Dec-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--09-30 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 15,221,647 |
Document Fiscal Period Focus | 'Q2 | ' |
Document Fiscal Year Focus | '2013 | ' |
Consolitated_Balance_Sheets
Consolitated Balance Sheets (USD $) | Dec. 31, 2012 | Jun. 30, 2012 |
Current Assets | ' | ' |
Cash and cash equivalents | $76,132 | $174,650 |
Accounts receivable, net | 189,889 | 238,515 |
Raw materials | 837,126 | 763,187 |
Work in progress | 162,572 | 167,485 |
Other current assets | 45,819 | 30,160 |
Total current assets | 1,311,538 | 1,373,997 |
Leasehold and land improvements | 334,648 | 334,648 |
Furniture, fixtures and equipment | 93,243 | 93,243 |
Computer hardware, software and peripherals | 180,497 | 178,605 |
Machinery and shop equipment | 473,507 | 465,085 |
Vehicles | 382,508 | 372,646 |
Total | 1,464,403 | 1,444,227 |
Less accumulated depreciation | -1,097,810 | -1,063,326 |
Net property and equipment | 366,593 | 380,901 |
Deferred tax asset | 178,402 | 189,308 |
Total Other Assets | 178,402 | 189,308 |
TOTAL ASSETS | 1,856,533 | 1,944,206 |
Current Liabilities | ' | ' |
Accounts payable and accrued expenses | 123,629 | 146,039 |
Customer deposits | ' | 115,011 |
Total current liabilities | 123,629 | 261,050 |
Due to related company | 97,326 | 100,000 |
Total long-term liabilities | 97,326 | 100,000 |
Total liabilities | 220,955 | 361,050 |
Preferred Stock, $.001 par, 40,000,000 shares authorized; 0 shares issued and outstanding | ' | ' |
Common stock, $.001 par,100,000,000 shares authorized;12,791,797 shares issued and outstanding at December 31,2012, 12,231,797 shares issued and outstanding at June 30, 2012 | 15,222 | 15,222 |
Common stock not yet issued ($.001 par, 8,150 shares) | 8 | 8 |
Additional paid-in capital | 1,899,773 | 1,899,773 |
Retained earnings | -279,425 | -331,847 |
Total stockholders' equity | 1,635,578 | 1,583,156 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $1,856,533 | $1,944,206 |
Consolitated_Balance_Sheets_Pa
Consolitated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2012 | Jun. 30, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred Stock, par value | $0.00 | $0.00 |
Preferred Stock, shares authorized | 40,000,000 | 40,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common Stock, par value | $0.00 | $0.00 |
Common Stock Authorized | 100,000,000 | 100,000,000 |
Common Stock Issued and outstanding | 15,221,647 | 15,221,647 |
Common Stock not issued | 8,150 | 8,150 |
Par Value | $0.00 | $0.00 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
REVENUES | ' | ' | ' | ' |
Gross of sales | $418,219 | $613,690 | $1,075,984 | $1,242,572 |
Cost of construction sales | -227,780 | -379,419 | -625,496 | -763,225 |
Gross profit | 190,439 | 234,271 | 450,488 | 479,347 |
Advertising | 3,545 | 5,703 | 5,918 | 12,289 |
Depreciation | 4,715 | 8,323 | 9,827 | 16,242 |
Insurance | 5,165 | 5,322 | 11,107 | 11,540 |
Payroll expenses | 116,907 | 142,990 | 227,163 | 269,243 |
Professional Fees | 17,465 | 16,918 | 20,272 | 36,397 |
Rent | 18,775 | 20,400 | 37,025 | 40,800 |
Vehicle | 6,872 | 6,512 | 13,439 | 13,849 |
Other | 28,775 | 21,901 | 56,046 | 48,403 |
Total administrative expenses | 202,219 | 228,069 | 380,797 | 448,763 |
Operating loss | -11,780 | 6,202 | 69,691 | 30,584 |
Other income | -6,578 | 61 | -6,363 | 3,154 |
Income (loss) before income tax benifit | -18,358 | 6,263 | 63,328 | 33,738 |
Income tax expense (benefit) | 10,906 | 7,010 | 10,906 | 12,804 |
Net income (loss) from operations | ($29,264) | ($747) | $52,422 | $20,934 |
Basic and diluted deficit per share | ' | ' | ' | ' |
Weighted average number of shares | 15,221,647 | 12,791,797 | 15,221,647 | 12,791,797 |
Consolitated_Statements_of_Cas
Consolitated Statements of Cash Flows (USD $) | 6 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Statement of Cash Flows [Abstract] | ' | ' |
Net income loss | $52,422 | $20,934 |
Adjustments to reconcile net income to net cash from operating activities: Depreciation | 34,483 | 40,530 |
Provision for deferred income taxes | 10,906 | 12,804 |
Accounts receivable | 47,259 | -236,697 |
Inventory | -69,026 | 71,204 |
Other operating assets | -14,291 | 1,510 |
Accounts payable and accrued expenses | -137,421 | 116,740 |
Net cash provided from (used for) operating activities | -75,668 | 27,025 |
INVESTING | ' | ' |
Capital asset sales (expenditures) | -20,176 | -21,081 |
Net cash provided by investing activities | -20,176 | -21,081 |
FINANCING | ' | ' |
Issuance of common stock | ' | 28,000 |
Decrease in borrowings from related party | -2,674 | -12,711 |
Net cash used for financing activities | -2,674 | 15,289 |
Net increase (decrease) in cash | -98,518 | 21,233 |
Cash, beginning of the year | 174,650 | 58,646 |
Cash, end of the period | $76,132 | $79,879 |
NOTE_1_ORGANIZATION_AND_OPERAT
NOTE 1 - ORGANIZATION AND OPERATIONS | 3 Months Ended |
Dec. 31, 2012 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
NOTE 1 - ORGANIZATION AND OPERATIONS | ' |
NOTE 1 - ORGANIZATION AND OPERATIONS | |
The Company was incorporated under the laws of the State of Wyoming on June 19, 1969. On January 28, 2000, the Company, through a majority shareholder vote, changed its domicile to Nevada through a merger with EMC Energies, Inc., a Nevada corporation. The Company also changed its par value to $.001 and the amount of authorized common stock to 100,000,000 shares. | |
Prior to 1990, the Company was engaged in the business of exploring for and producing oil and gas in the Rocky Mountain and mid-continental areas of the United States. The Company liquidated substantially all of its assets in 1990 and was dormant until June 30, 2000, when it acquired, in a stock-for-stock, tax-free exchange, all of the outstanding common stock of a privately held Virginia corporation, Metwood, Inc. ("Metwood"), which was incorporated in 1993. Metwood has been in the metal and metal/wood construction materials manufacturing business since 1992. Following the acquisition, the Company approved a name change from EMC Energies, Inc. to Metwood, Inc. | |
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 was no longer an operating segment of the Company. We 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. | |
Metwood provides 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 | 3 Months Ended |
Dec. 31, 2012 | |
Accounting Policies [Abstract] | ' |
NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES | |
Basis of Presentation - The accompanying unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six-month periods ended December 31, 2013 are not necessarily indicative of the results that may be expected for the year ended June 30, 2014. The condensed balance sheet at June 30, 2013 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. | |
For further information, refer to the consolidated financial statements and footnotes thereto included in Metwood, Inc.'s annual report on Form 10-K for the year ended June 30, 2013. | |
Fair Value of Financial Instruments - For certain of the company's financial instruments, none of which are held for trading, including cash, accounts receivable, accounts payable and accrued expenses, the carrying amounts approximate fair value due to their short maturities. | |
Management's Use of Estimates - The preparation of 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, disclosures of contingent assets and liabilities at the date of financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
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 December 31, 2013, 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 bad debt expense when they are determined to be uncollectible. For the three and six months ended December 31, 2013, the amount of bad debts charged off was $-0-. For the three and six months ended December 31, 2012, the amount of bad debts charged off was $452 and $212, respectively. | |
Inventory - Inventory, consisting 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 recorded at cost and include expenditures for improvements when they substantially increase the productive lives of existing assets. Maintenance and repair costs are expensed to operations as incurred. Depreciation is computed using the straight- line method over the assets' estimated useful lives, which range from three to forty years. When a fixed asset is disposed of, its cost and related accumulated depreciation are removed from the accounts. The difference between undepreciated cost and the proceeds is recorded as a gain or loss. | |
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 December 31, 2013. | |
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. | |
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 SFAS No. 109, "Accounting for Income Taxes." A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and for net operating loss carryforwards, 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. Research and development costs for the three and six months ended December 31, 2013 were $1,940 and $6,417, respectively. Research and development costs for the three and six months ended December 31, 2012 were $-0- and $143, respectively. | |
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 quarters 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 July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-11, “Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” This standard requires an entity to present unrecognized tax benefits as a reduction to deferred tax assets when a net operating loss carryforward, similar tax loss or a tax credit carryforward exists, with limited exceptions. This standard is effective for fiscal years beginning on or after December 15, 2013, and for interim periods within those fiscal years. We are currently assessing the potential impact of ASU No. 2013-11 on our financial statements. | |
In February 2013, the FASB issued ASU No. 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” This standard requires entities to present information about reclassification adjustments from accumulated other comprehensive income in the annual financial statements in a single note or on the face of the financial statements. Public companies will also have to provide this information in their interim financial statements. The new requirements are effective as of the beginning of a fiscal year that begins after December 15, 2012 and interim and annual periods thereafter. We do not expect this ASU to have a material impact on our financial statements. |
NOTE_3_EARNINGS_PER_SHARE
NOTE 3 - EARNINGS PER SHARE | 3 Months Ended | ||||||||||||||||
Dec. 31, 2012 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
NOTE 3 - EARNINGS PER SHARE | ' | ||||||||||||||||
NOTE 3 - EARNINGS PER SHARE | |||||||||||||||||
Net income (loss) and earnings per share for the three and six months ended December 31, 2013 and 2012 are as follows: | |||||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net income (loss) | $ | (29,264 | ) | $ | (747 | ) | $ | 52,422 | $ | 20,934 | |||||||
Earnings per share - basic and fully diluted | $ ** | $ ** | $ ** | $ ** | |||||||||||||
Weighted average number of shares | 15,221,647 | 12,791,797 | 15,221,647 | 12,791,797 | |||||||||||||
**Less than $0.01 |
NOTE_4_SUPPLEMENTAL_CASH_FLOW_
NOTE 4 - SUPPLEMENTAL CASH FLOW INFORMATION | 3 Months Ended | ||||||||||||||||
Dec. 31, 2012 | |||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | ' | ||||||||||||||||
NOTE 4 - SUPPLEMENTAL CASH FLOW INFORMATION | ' | ||||||||||||||||
NOTE 4 – SUPPLEMENTAL CASH FLOW INFORMATION | |||||||||||||||||
Supplemental disclosures of cash flow information for the three months ended December 31, 2013 and 2012 are summarized as follows : | |||||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Cash paid for: | |||||||||||||||||
Income taxes | $ | — | $ | — | $ | — | $ | — | |||||||||
Interest | $ | 6,312 | $ | — | $ | 6,312 | $ | — |
NOTE_5_RELATED_PARTY_TRANSACTI
NOTE 5 - RELATED PARTY TRANSACTIONS | 3 Months Ended |
Dec. 31, 2012 | |
Related Party Transactions [Abstract] | ' |
NOTE 5 - RELATED PARTY TRANSACTIONS | ' |
NOTE 5 - RELATED-PARTY TRANSACTIONS | |
From time to time, we contract with a company related through common ownership for building and grounds-related maintenance services. The related party is Cahas Mountain Properties in which Robert Callahan, our Chief Executive Officer, is a Managing Member. Fees paid to the related company for the three and six months ended December 31, 2013 and 2012 were $2,235 and $10,080, respectively. For the three months ended December 31, 2013 and 2012, we had sales of $496 and $8,386, respectively, to the company referred to above. For the six months ended December 31, 2013 and 2012, we had sales of $5,259 and $16,259, respectively to the company. As of December 31, 2013 and 2012, the related receivable was $-0- and $-0-, respectively. See also Note 6. |
NOTE_6_OPERATING_LEASE_COMMITM
NOTE 6 - OPERATING LEASE COMMITMENTS | 3 Months Ended |
Dec. 31, 2012 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
NOTE 6 - OPERATING LEASE COMMITMENTS | ' |
NOTE 6 - OPERATING LEASE COMMITMENTS | |
On January 3, 2005, the Company entered into a ten-year commercial operating lease with a company related through common ownership. The related party is Cahas Mountain Properties in which Robert Callahan, our Chief Executive Officer, is a Managing Member. The lease covers various buildings and property which house our manufacturing plant, executive offices and other buildings with a current monthly rental of $6,800. The lease expires on December 31, 2014. For each of the three-month periods ended December 31, 2013 and 2012, we recognized rent expense for these spaces of $18,755 and $20,400. For each of the six-month periods ended December 31, 2013 and 2012, we recognized rent expense of $37,025 and $40,800. |
NOTE_2_SUMMARY_OF_SIGNIFICANT_1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Dec. 31, 2012 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation - The accompanying unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six-month periods ended December 31, 2013 are not necessarily indicative of the results that may be expected for the year ended June 30, 2014. The condensed balance sheet at June 30, 2013 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. | |
For further information, refer to the consolidated financial statements and footnotes thereto included in Metwood, Inc.'s annual report on Form 10-K for the year ended June 30, 2013. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments - For certain of the company's financial instruments, none of which are held for trading, including cash, accounts receivable, accounts payable and accrued expenses, the carrying amounts approximate fair value due to their short maturities. | |
Management's Use of Estimates | ' |
Management's Use of Estimates - The preparation of 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, disclosures of contingent assets and liabilities at the date of financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
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 December 31, 2013, 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 bad debt expense when they are determined to be uncollectible. For the three and six months ended December 31, 2013, the amount of bad debts charged off was $-0-. For the three and six months ended December 31, 2012, the amount of bad debts charged off was $452 and $212, respectively. | |
Inventory | ' |
Inventory - Inventory, consisting 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 recorded at cost and include expenditures for improvements when they substantially increase the productive lives of existing assets. Maintenance and repair costs are expensed to operations as incurred. Depreciation is computed using the straight- line method over the assets' estimated useful lives, which range from three to forty years. When a fixed asset is disposed of, its cost and related accumulated depreciation are removed from the accounts. The difference between undepreciated cost and the proceeds is recorded as a gain or loss. | |
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 December 31, 2013. | |
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. | |
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 SFAS No. 109, "Accounting for Income Taxes." A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and for net operating loss carryforwards, 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. Research and development costs for the three and six months ended December 31, 2013 were $1,940 and $6,417, respectively. Research and development costs for the three and six months ended December 31, 2012 were $-0- and $143, respectively. | |
Earnings (Loss) Per Common Shares | ' |
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 quarters presented. There were no adjustments required to net income for the years presented in the computation of diluted earnings per share. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements - In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-11, “Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” This standard requires an entity to present unrecognized tax benefits as a reduction to deferred tax assets when a net operating loss carryforward, similar tax loss or a tax credit carryforward exists, with limited exceptions. This standard is effective for fiscal years beginning on or after December 15, 2013, and for interim periods within those fiscal years. We are currently assessing the potential impact of ASU No. 2013-11 on our financial statements. | |
In February 2013, the FASB issued ASU No. 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” This standard requires entities to present information about reclassification adjustments from accumulated other comprehensive income in the annual financial statements in a single note or on the face of the financial statements. Public companies will also have to provide this information in their interim financial statements. The new requirements are effective as of the beginning of a fiscal year that begins after December 15, 2012 and interim and annual periods thereafter. We do not expect this ASU to have a material impact on our financial statements. |
NOTE_3_EARNINGS_PER_SHARE_Tabl
NOTE 3 - EARNINGS PER SHARE (Tables) | 3 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Income loss | ' | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net income (loss) | $ | (29,264 | ) | $ | (747 | ) | $ | 52,422 | $ | 20,934 | |||||||
Earnings per share - basic and fully diluted | $ ** | $ ** | $ ** | $ ** | |||||||||||||
Weighted average number of shares | 15,221,647 | 12,791,797 | 15,221,647 | 12,791,797 |
NOTE_4_SUPPLEMENTAL_CASH_FLOW_1
NOTE 4 - SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 3 Months Ended | |||||||||||
Dec. 31, 2012 | ||||||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
Supplemental disclosures of cash flow information for the three and six months ended December 31, 2012 and 2011 are summarized as follows: | ||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||
December 31, | December 31, | |||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
Cash paid for: | ||||||||||||
Income taxes | $ - | $ - | $ - | $ - | ||||||||
Interest | $ - | $ - | $ - | $110 |
NOTE_1_ORGANIZATION_AND_OPERAT1
NOTE 1 - ORGANIZATION AND OPERATIONS (Details Narrative) (USD $) | Dec. 31, 2012 | Jun. 30, 2012 | Jan. 01, 2002 | Jan. 28, 2000 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' | ' | ' |
Par value changed to | $0.00 | $0.00 | ' | $0.00 |
Authorized common stock changed to | 100,000,000 | 100,000,000 | ' | 100,000,000 |
Acquisition of Assets | ' | ' | $350,000 | ' |
NOTE_2_SUMMARY_OF_SIGNIFICANT_2
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accounting Policies [Abstract] | ' | ' | ' | ' |
Allowance for doubtful accounts | $5,000 | ' | $5,000 | ' |
Bad debts | 0 | 452 | 0 | 212 |
Research and development costs | $1,940 | $0 | $6,417 | $143 |
NOTE_5_RELATED_PARTY_TRANSACTI1
NOTE 5 - RELATED PARTY TRANSACTIONS (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Related Party Transactions [Abstract] | ' | ' | ' | ' |
Service and Equipment Rental Expense | $2,235 | $10,080 | $2,235 | $100,810 |
Sales | 496 | 8,386 | 5,259 | 16,259 |
Related receivables | $0 | $0 | $0 | $0 |
NOTE_6_OPERATING_LEASE_COMMITM1
NOTE 6 - OPERATING LEASE COMMITMENTS (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' | ' |
Rental Expense | $18,755 | $20,400 | $37,025 | $40,800 |
NOTE_3_EARNINGS_PER_SHARE_NOTE
NOTE 3 - EARNINGS PER SHARE - NOTE 3 - EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income (loss) | ($29,264) | ($747) | $52,422 | $20,934 |
Earnings per share - basic and fully diluted | ' | ' | ' | ' |
Weighted average number of shares | 15,221,647 | 12,791,797 | 15,221,647 | 12,791,797 |
NOTE_4_SUPPLEMENTAL_CASH_FLOW_2
NOTE 4 - SUPPLEMENTAL CASH FLOW INFORMATION - Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Supplemental Cash Flow Elements [Abstract] | ' | ' | ' | ' |
Income taxes | ' | ' | ' | ' |
Interest | $6,312 | ' | $6,312 | ' |