Emerge Health International (MTWD) 10-K 19 Oct 15 2015 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Jun. 30, 2015	Oct. 19, 2015	Dec. 31, 2014
Document Information [Line Items]
Entity Registrant Name	METWOOD INC
Entity Central Index Key	32,567
Document Type	10-K
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		17,666,647
Entity Public Float			$ 1,674,381
Trading Symbol	MTWD
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,015

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Current Assets
Cash and cash equivalents	$ 87,315	$ 36,836
Accounts receivable, net	129,712	149,671
Inventory	728,500	815,192
Inventory
Other current assets	36,343	44,356
Total current assets	981,870	1,046,055
Property and Equipment
Leasehold improvements	274,869	274,869
Furniture, fixtures and equipment	78,222	78,222
Computer hardware, software and peripherals	180,923	175,207
Machinery and shop equipment	477,166	467,166
Vehicles	412,917	387,443
Land improvements	67,959	67,959
Total	1,492,056	1,450,866
Less accumulated depreciation	(1,134,549)	(1,071,802)
Net property and equipment	357,507	379,064
Other Assets
Deferred tax asset, less valuation reserve	245,233	246,163
Total Other Assets	245,233	246,163
TOTAL ASSETS	1,584,610	1,671,282
Current Liabilities
Accounts payable	121,307	205,037
Customer deposits	19,857	13,166
Accrued interest payable	14,960	9,000
Accrued payroll expenses	6,380	10,225
Total current liabilities	162,504	237,428
Long-term Liabilities
Due to related company	65,784	94,815
Total long-term liabilities	65,784	94,815
Total liabilities	228,288	332,243
Stockholders' Equity
Common stock ($.001 par, 100,000,000 shares authorized; 15,266,647 shares issued and outstanding)	15,222	15,222
Common stock not yet issued ($.001 par, 53,150 and 8,150 shares at June 30, 2015 and 2014, respectively)	53	8
Additional paid-in capital	1,917,729	1,899,773
Accumulated deficit	(576,682)	(575,964)
Total stockholders' equity	1,356,322	1,339,039
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,584,610	$ 1,671,282

CONSOLIDATED BALANCE SHEETS _Pa

CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares	Jun. 30, 2015	Jun. 30, 2014
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares, Issued	15,266,647	15,266,647
Common Stock, Shares, Outstanding	15,266,647	15,266,647
Common Stock, Shares Subscribed but Unissued	53,150	8,150

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($)	12 Months Ended
	Jun. 30, 2015		Jun. 30, 2014
REVENUES
Gross sales	$ 1,722,261		$ 1,933,006
Cost of sales	929,437		1,384,631
Gross profit	792,824		548,375
ADMINISTRATIVE EXPENSES
Advertising	25,682		17,731
Bad debt recovery	(1,094)		77,192
Depreciation	35,494		22,679
Insurance	34,362		18,936
Payroll expenses	385,658		440,208
Professional fees	48,901		42,207
Rent	75,000		75,045
Research and development	7,491		7,829
Telephone	25,648		23,281
Vehicle	20,001		26,596
Other	125,380		77,054
Total administrative expenses	782,523		828,758
Operating income (loss)	10,301		(280,383)
Other expense	(10,088)		(20,589)
Loss before income taxes	213		(300,972)
Income tax expense (benefit)	931		(56,855)
Net income (loss)	$ (718)		$ (244,117)
Basic and diluted deficit per share (in dollars per share)		[1]	$ (0.02)
Weighted average number of shares (in shares)	15,221,647		15,221,647
[1]	Less than 0.01

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands	Total	Common Stock [Member]	Common Shares Not Yet Issued [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]
Balances at Jun. 30, 2013		$ 15,222	$ 8	$ 1,899,773	$ (331,847)
Balances (in shares) at Jun. 30, 2013		15,222	8
Net loss for year	$ (244,117)	$ 0	$ 0	0	(244,117)
Balances at Jun. 30, 2014	1,339,039	$ 15,222	$ 8	1,899,773	(575,964)
Balances (in shares) at Jun. 30, 2014		15,222	8
Common stock issued and adjustment of common shares not issued (in shares)		0	45
Common stock issued and adjustment of common shares not issued		$ 0	$ 45	17,956	18,000
Net loss for year	(718)	0	0	0	(718)
Balances at Jun. 30, 2015	$ 1,356,322	$ 15,267	$ 53	$ 1,917,729	$ (558,682)
Balances (in shares) at Jun. 30, 2015		15,267	53

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
OPERATING ACTIVITIES
Net income (loss)	$ (718)	$ (244,117)
Adjustments to reconcile net loss to net cash provided by (used for) operating activities:
Depreciation, net of property disposals	62,747	72,518
Loss on property disposals	0	3,191
Provision for deferred income taxes	930	(56,855)
(Increase) decrease in operating assets:
Accounts receivable	19,964	88,844
Inventory	86,692	115,480
Other current assets	8,008	(14,196)
Increase in operating liabilities:
Accounts payable, customer deposits and accrued expenses	(74,923)	(25,903)
Net cash provided by (used for) operating activities	102,700	(61,038)
INVESTING ACTIVITIES
Purchases	(27,440)	(76,776)
Asset disposals	4,250	0
Net cash used in investing activities	(23,190)	(76,776)
FINANCING ACTIVITIES
Net repayment to related party	(29,031)	0
Net cash used for financing activities	(29,031)	0
Net increase (decrease) in cash	50,479	(137,814)
Cash, beginning of the year	36,836	174,650
Cash, end of the year	87,315	36,836
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest Paid	0	0
Income Taxes Paid	0	0
SCHEDULE OF NONCASH FINANCING ACTIVITIES:
Common stock issued for fixed asset	$ 18,000	$ 0

ORGANIZATION AND OPERATIONS

ORGANIZATION AND OPERATIONS	12 Months Ended
	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations [Text Block]	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 We provide construction-related products and engineering services to residential customers and contractors, commercial contractors, developers and retail enterprises, primarily in southwestern Virginia.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES	12 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Basis of Presentation and Significant Accounting Policies [Text Block]	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES 250,000 6,539 7,877 1,094 77,191 Income Taxes 7,492 7,829 In January 2015, FASB issued Update No. 2015-01—Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. This Update eliminates from GAAP the concept of extraordinary items. It is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The effective date is the same for both public business entities and all other entities. We do not expect this ASU to have a material impact on our financial statements. In December 2014, FASB issued Accounting Standards Update (“ASU”) No. 2014-18—Business Combinations (Topic 805): Accounting for Identifiable Intangible Assets in a Business Combination (a consensus of the Private Company Council). This standard requires that existing customer-related intangible assets and noncompetition agreements shall continue to be measured in accordance with Topic 350 and should not be subsumed into goodwill upon adoption of this guidance. This standard is effective for the first transaction within the scope of the accounting alternative that occurs in fiscal years beginning after December 15, 2015 and for interim and annual periods thereafter. If the first transaction occurs in a fiscal year beginning after December 15, 2016, then this is effective for the interim period that includes the date of the transaction and for interim and annual periods thereafter. We do not expect this ASU to have a material impact on our 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.

RELATED-PARTY TRANSACTIONS

RELATED-PARTY TRANSACTIONS	12 Months Ended
	Jun. 30, 2015
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	NOTE 3 - RELATED-PARTY TRANSACTIONS For the years ended June 30, 2015 and 2014, we had sales of $ 29,489 18,721 We also contract with the same company for consulting services. For the fiscal years ended June 30, 2015 and 2014, we paid the company $ 48,000 0 Also, from time to time, we contract with a construction company 50 10,080 2,585

COMMITMENT

COMMITMENT	12 Months Ended
	Jun. 30, 2015
Supplemental Cash Flow Elements [Abstract]
Commitments Disclosure [Text Block]	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.

SALE OF FIXED ASSETS AND RELATE

SALE OF FIXED ASSETS AND RELATED OPERATING LEASE	12 Months Ended
	Jun. 30, 2015
Leases [Abstract]
Sale Leaseback Transaction Disclosure [Text Block]	NOTE 5 - SALE OF FIXED ASSETS AND RELATED OPERATING LEASE During the year ended June 30, 2005, we entered into a sale 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 600,000 6,800 over a ten-year term expiring December 31, 2014 75,000 76,000

EQUITY

EQUITY	12 Months Ended
	Jun. 30, 2015
Stockholders' Equity Note [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	NOTE 6 - EQUITY During the year ended June 30, 2015, the Company reached an agreement to issue 45,000 18,000

CONCENTRATIONS OF CUSTOMER RISK

CONCENTRATIONS OF CUSTOMER RISK	12 Months Ended
	Jun. 30, 2015
Risks and Uncertainties [Abstract]
Concentration Risk Disclosure [Text Block]	NOTE 7 – CONCENTRATIONS OF CUSTOMER RISK For the June 30, 2015 year ended, two customers individually accounted for 10% or more of our company’s revenues; however, there is no customer whose loss would have a material adverse effect on our company.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	NOTE 8 - INCOME TAXES 2015 2014 Current: Federal $ - $ (41,910) State - (6,176) - (48,086) Deferred: Federal 665 (8,564) State 266 (205) 931 (8,769) Total income tax benefit $ 931 $ (56,855) 39 Income (loss) before income taxes $ 213 $ (300,972) Income tax expense (benefit) computed at the statutory rate 83 (117,379) State income tax expense (benefit), net of federal tax effect 841 (10,699) Non-deductible expenses 3,372 3,375 Valuation reserve adjustment (931) 56,857 Effect of graduated income tax rates (2,434) 10,991 Total income tax expense (benefit) $ 931 $ (56,855) 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, 2015 and 2014, net of a valuation reserve, of $ 243,750 246,163 2015 2014 Tax loss carryforward $ 189,847 $ 189,847 Depreciation and miscellaneous 55,386 56,316 Net deferred tax asset $ 245,233 $ 246,163

SUBSEQUENT EVENT

SUBSEQUENT EVENT	12 Months Ended
	Jun. 30, 2015
Subsequent Events [Abstract]
Subsequent Events [Text Block]	Note 9 Subsequent Event During July, 2015, the Company issued the 45,000 During July 2015, the Company issued 2,400,000

SUMMARY OF SIGNIFICANT ACCOUN16

SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES (Policies)	12 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation
Use of Estimates, Policy [Policy Text Block]	Management's Use of Estimates
Fair Value of Financial Instruments, Policy [Policy Text Block]	Fair Value of Financial Instruments
Cash and Cash Equivalents, Policy [Policy Text Block]	Cash and Cash Equivalents 250,000
Receivables, Policy [Policy Text Block]	Accounts Receivable 6,539 7,877 1,094 77,191
Inventory, Policy [Policy Text Block]	Inventory
Property, Plant and Equipment, Policy [Policy Text Block]	Property and Equipment
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]	Impairment of Long-lived Assets
Patents [Policy Text Block]	Patents
Revenue Recognition, Allowances [Policy Text Block]	Revenue Recognition
Income Tax, Policy [Policy Text Block]	Income Taxes Income Taxes
Research and Development Expense, Policy [Policy Text Block]	Research and Development 7,492 7,829
Advertising Costs, Policy [Policy Text Block]	Advertising
Earnings Per Share, Policy [Policy Text Block]	Earnings Per Common Share
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements In January 2015, FASB issued Update No. 2015-01—Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. This Update eliminates from GAAP the concept of extraordinary items. It is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The effective date is the same for both public business entities and all other entities. We do not expect this ASU to have a material impact on our financial statements. In December 2014, FASB issued Accounting Standards Update (“ASU”) No. 2014-18—Business Combinations (Topic 805): Accounting for Identifiable Intangible Assets in a Business Combination (a consensus of the Private Company Council). This standard requires that existing customer-related intangible assets and noncompetition agreements shall continue to be measured in accordance with Topic 350 and should not be subsumed into goodwill upon adoption of this guidance. This standard is effective for the first transaction within the scope of the accounting alternative that occurs in fiscal years beginning after December 15, 2015 and for interim and annual periods thereafter. If the first transaction occurs in a fiscal year beginning after December 15, 2016, then this is effective for the interim period that includes the date of the transaction and for interim and annual periods thereafter. We do not expect this ASU to have a material impact on our 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.

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	The components of income tax expense (benefit) consist of: 2015 2014 Current: Federal $ - $ (41,910) State - (6,176) - (48,086) Deferred: Federal 665 (8,564) State 266 (205) 931 (8,769) Total income tax benefit $ 931 $ (56,855)
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	The reconciliation of the provision for income taxes at the U. S. federal statutory income tax rate of 39 Income (loss) before income taxes $ 213 $ (300,972) Income tax expense (benefit) computed at the statutory rate 83 (117,379) State income tax expense (benefit), net of federal tax effect 841 (10,699) Non-deductible expenses 3,372 3,375 Valuation reserve adjustment (931) 56,857 Effect of graduated income tax rates (2,434) 10,991 Total income tax expense (benefit) $ 931 $ (56,855)
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]	The components of these amounts are as follows: 2015 2014 Tax loss carryforward $ 189,847 $ 189,847 Depreciation and miscellaneous 55,386 56,316 Net deferred tax asset $ 245,233 $ 246,163

ORGANIZATION AND OPERATIONS (De

ORGANIZATION AND OPERATIONS (Details Textual)	Jan. 01, 2002USD ($)
Nature of Operations [Line Items]
Finite-lived Intangible Assets Acquired	$ 350,000

SUMMARY OF SIGNIFICANT ACCOUN19

SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES (Details Textual) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Summary of Significant Accounting Polices [Line Items]
Allowance for Doubtful Accounts Receivable, Current	$ 6,539	$ 7,877
Research and Development Expense	7,491	7,829
Allowance for Loan and Lease Loss, Recovery of Bad Debts	1,094	$ 77,191
Cash, FDIC Insured Amount	$ 250,000

RELATED-PARTY TRANSACTIONS (Det

RELATED-PARTY TRANSACTIONS (Details Textual) - Chief Executive Officer [Member] - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Related Party Transaction [Line Items]
Sales	$ 29,489	$ 18,721
Related receivable	0	0
Service Management Costs	10,080	2,585
Payments for Consulting Service	$ 48,000	$ 0
Equity Method Investment, Ownership Percentage	50.00%

SALE OF FIXED ASSETS AND RELA21

SALE OF FIXED ASSETS AND RELATED OPERATING LEASE (Details Textual) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Sale Leaseback Transaction [Line Items]
Operating Leases, Rent Expense	$ 75,000	$ 76,000
Sale and Leaseback Transaction [Member]
Sale Leaseback Transaction [Line Items]
Sale Leaseback Transaction, Gross Proceeds, Investing Activities	600,000
Sale Leaseback Transaction, Monthly Rental Payments	$ 6,800
Sale Leaseback Transaction, Description of Asset(s)	We sold the various buildings at our corporate headquarters which house our manufacturing plants, executive offices and other buildings
Sale Leaseback Transaction, Lease Terms	over a ten-year term expiring December 31, 2014

EQUITY (Details Textual)

EQUITY (Details Textual) shares in Thousands	12 Months Ended
	Jun. 30, 2015USD ($)shares
Property, Plant, and Equipment, Fair Value Disclosure | $	$ 18,000
Common Shares Not Yet Issued [Member]
Common stock issued and adjustment of common shares not issued (in shares)	45

CONCENTRATIONS OF CUSTOMER RI23

CONCENTRATIONS OF CUSTOMER RISK (Details Textual)	12 Months Ended
	Jun. 30, 2015
Concentration Risk [Line Items]
Concentration Risk, Benchmark Description	two customers individually accounted for 10% or more of our company’s revenues

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Current:
Federal	$ 0	$ (41,910)
State	0	(6,176)
Tax Expense (Benefit), Current Total	0	(48,086)
Deferred:
Federal	665	(8,564)
State	266	(205)
Tax Expense (Benefit), Deferred Total	931	(8,769)
Total income tax benefit	$ 931	$ (56,855)

INCOME TAXES (Details 1)

INCOME TAXES (Details 1) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Income Tax [Line Items]
Income (loss) before income taxes	$ 213	$ (300,972)
Income tax expense (benefit) computed at the statutory rate	83	(117,379)
State income tax expense (benefit), net of federal tax effect	841	(10,699)
Non-deductible expenses	3,372	3,375
Valuation reserve adjustment	(931)	56,857
Effect of graduated income tax rates	(2,434)	10,991
Total income tax benefit	$ 931	$ (56,855)

INCOME TAXES (Details 2)

INCOME TAXES (Details 2) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Income Tax [Line Items]
Tax loss carryforward	$ 189,847	$ 189,847
Depreciation and miscellaneous	55,386	56,316
Net deferred tax asset	$ 245,233	$ 246,163

INCOME TAXES (Details Textual)

INCOME TAXES (Details Textual) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Income Tax [Line Items]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	39.00%
Deferred Tax Assets, Net of Valuation Allowance, Total	$ 245,233	$ 246,163

SUBSEQUENT EVENT (Details Textu

SUBSEQUENT EVENT (Details Textual) - Subsequent Event [Member]	1 Months Ended
	Jul. 31, 2015shares
Commercial Lease [Member]
Stock Issued During Period, Shares, New Issues	2,400,000
Vehicles [Member]
Stock Issued During Period, Shares, New Issues	45,000