Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Mar. 31, 2016 | May. 16, 2016 | |
Entity Registrant Name | METWOOD INC | |
Entity Central Index Key | 32,567 | |
Trading Symbol | mtwd | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 17,666,647 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Balance Sheets (Unaudited)
Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2016 | Jun. 30, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 96,559 | $ 100,434 |
Accounts receivable, net | 82,222 | 129,712 |
Inventory | ||
Raw materials | 793,389 | 728,500 |
Other current assets | 128,349 | 36,343 |
Total current assets | 1,098,240 | 981,870 |
Property and Equipment | ||
Leasehold and land improvements | 276,151 | 274,869 |
Furniture, fixtures and equipment | 78,222 | 78,222 |
Computer hardware, software and peripherals | 194,624 | 180,923 |
Machinery and shop equipment | 481,672 | 477,166 |
Vehicles | 426,652 | 412,917 |
Land Improvements | 67,959 | 67,959 |
Total Fixed assets | 1,525,280 | 1,492,056 |
Less accumulated depreciation | (1,167,460) | (1,134,549) |
Net property and equipment | 357,820 | 357,507 |
Other Assets | ||
Deferred tax asset, net of valuation reserve | 257,465 | 245,233 |
TOTAL ASSETS | 1,713,525 | 1,584,610 |
Current Liabilities | ||
Accounts payable and accrued expenses | 198,760 | 142,647 |
Customer deposits | 0 | 19,857 |
Total current liabilities | 198,760 | 162,504 |
Long-term Liabilities | ||
Due to related company | 80,992 | 65,784 |
Total long-term liabilities | 80,992 | 65,784 |
Total liabilities | 279,751 | 228,288 |
Stockholders' Equity | ||
Common stock, $.001 par, 100,000,000 sharesauthorized; 15,221,647 shares issued and outstanding at December 31, 2014 | 17,667 | 15,222 |
Common stock not yet issued ($.001 par, 8,150 shares) | $ 8 | $ 53 |
Preferred Stock, $.001 par, 40,000,000 shares authorized; 0 shares issued and outstanding at December 31, 2014 | ||
Additional paid-in capital | $ 2,035,328 | $ 1,917,729 |
Retained earnings | (619,229) | (576,682) |
Total stockholders' equity | 1,433,774 | 1,356,322 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,713,525 | $ 1,584,610 |
Balance Sheets (Unaudited) (Par
Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Mar. 31, 2016 | Jun. 30, 2015 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 15,221,647 | 15,221,647 |
Common stock, shares outstanding (in shares) | 15,221,647 | 15,221,647 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, shares subscribed but unissued (in shares) | 8,150 | 8,150 |
Statements of Income (Unaudited
Statements of Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | ||
REVENUES | |||||
Gross sales | $ 381,595 | $ 441,265 | $ 1,233,822 | $ 1,332,472 | |
Cost of sales | (246,940) | (184,931) | (726,791) | (723,363) | |
Gross profit | 134,656 | 256,334 | 507,031 | 609,109 | |
ADMINISTRATIVE EXPENSES | |||||
Advertising | 6,192 | 2,678 | 21,122 | 15,587 | |
Depreciation | 0 | 6,894 | 18,513 | 20,681 | |
Insurance | 16,407 | 8,458 | 31,438 | 23,456 | |
Payroll expenses | 89,400 | 91,835 | 319,887 | 286,936 | |
Professional fees | 3,512 | 7,299 | 39,061 | 41,723 | |
Rent | 22,500 | 16,500 | 67,500 | 58,500 | |
Vehicle | 4,964 | 3,595 | 12,210 | 15,308 | |
Other | 22,317 | 74,708 | 82,197 | 126,298 | |
Total administrative expenses | 165,292 | 211,967 | 591,928 | 588,489 | |
Operating income (loss) | (30,637) | 44,367 | (84,897) | 20,620 | |
Other income (expense) | 1,822 | 247 | 33,713 | (4,839) | |
Interest Expense | (1,211) | (1,169) | (3,023) | (3,884) | |
Income (loss) before income taxes | (30,026) | 43,445 | (54,207) | 11,897 | |
Income tax expense (benefit) | (7,415) | 2,298 | (11,660) | 731 | |
Net income (loss) from operations | $ (22,611) | $ 41,148 | $ (42,548) | $ 11,166 | |
Basic and diluted deficit per share (in dollars per share) | [1],[2] | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average number of shares (in shares) | 17,666,647 | 15,221,647 | 17,666,647 | 15,221,647 | |
[1] | Less than $0.01 | ||||
[2] | Less than $0.01 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
OPERATIONS | ||
Net income (loss) | $ (42,548) | $ 11,166 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation | 32,911 | 54,352 |
Provision for deferred income taxes | (12,232) | 0 |
(Increase) decrease in operating assets: | ||
Accounts receivable | 46,100 | (15,566) |
Prepaid Expenses | (97,272) | 9,068 |
Inventory | (64,889) | 64,450 |
Other operating assets | 3,105 | 2,305 |
Decrease in operating liabilities: | ||
Accounts payable and accrued expenses | 28,966 | (50,419) |
Net cash provided by (used for) operating activities | (105,859) | 75,356 |
INVESTING | ||
Capital asset expenditures | (33,224) | (17,252) |
Net cash used for investing activities | (33,224) | $ (17,252) |
FINANCING | ||
Increase in borrowings from related party | $ 15,208 | |
Decrease in borrowings from related party | $ (21,114) | |
Additional Paid in Capital | $ 120,000 | |
Net cash used for financing activities | 135,208 | $ (21,114) |
Net increase (decrease) in cash | (3,875) | 36,990 |
Cash, beginning of the year | 100,434 | 36,836 |
Cash, end of the period | $ 96,559 | $ 73,826 |
Note 1 - Organization and Opera
Note 1 - Organization and Operations | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | 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 Virginia. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Practices | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES Basis of Presentation 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, 2015. Fair Value of Financial Instruments Management's Use of Estimates Accounts Receivable outstanding beyond their contractual terms and are charged off to bad debt expense when they are determined to be uncollectible. For the three months ended March 31, 2016 and 2015, the net amount of bad debts charged off was $-0-. Inventory Property and Equipment Impairment of Long-lived Assets Patents Revenue Recognition Income Taxes Research and Development Earnings Per Common Share Recent Accounting Pronouncements 2015-03— Interest-Imputation of Interest (Subtopic 835-30):Simplifying the Presentation of Debt Issuance Costs. 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 xisting 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. |
Note 3 - Earnings Per Share
Note 3 - Earnings Per Share | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 3 - EARNINGS PER SHARE Net loss and earnings per share for the three and nine months ended March 31, 2016 and 2015 are as follows: For the Three Months Ended For the Nine Months Ended 31-Mar 31-Mar 2016 2014 2016 2014 Net income (loss) (22,611 ) $ 41,148 $ (42,548 ) $ 11,167 Earnings per share - basic and fully diluted $ ** $ ** $ ** $ ** Weighted average number of shares 17,666,647 15,221,647 17,666,647 15,221,647 |
Note 4 - Supplemental Cash Flow
Note 4 - Supplemental Cash Flow Information | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | NOTE 4 – SUPPLEMENTAL CASH FLOW INFORMATION Supplemental disclosures of cash flow information for the three and nine months ended March 31, 2016 and 2015 are summarized as follows: For the Three Months Ended For the Nine Months Ended 31-Mar 31-Mar 2016 2015 2016 2015 Cash paid for: Income taxes $ 0 $ 1,984 $ 0 $ 0 Interest $ 1,211 $ 1,169 $ 3,023 $ 3,884 **Less than $0.01 |
Note 5 - Related-party Transact
Note 5 - Related-party Transactions | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 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. For the nine months ended March 31, 2016, we had sales of $16,792 and $16,645, respectively, to the company referred to above. As of March 31, 2016 and 2015, the related receivable was $-0- and $-0-, respectively. See also Note 6. |
Note 6 - Operating Lease Commit
Note 6 - Operating Lease Commitments | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Operating Leases of Lessor Disclosure [Text Block] | NOTE 6 - OPERATING LEASE COMMITMENTS On July 1, 2015, 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 $7,500. The Company issued 2,400,000 of its shares as consideration for $120,000 in future rent payments. This amount is recorded on our books as a prepaid expense, and $2,000 per month is transferred to rent expense. The balance of the monthly rent, $5,500, is paid in cash. For the nine month periods ended March 31, 2016 and 2015, we recognized rent expense for these spaces of $67,500 and $58,500. |
Note 7 - Concentrations of Cust
Note 7 - Concentrations of Customer Risk | 9 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | NOTE 7 – CONCENTRATIONS OF CUSTOMER RISK For the nine months ended March 31, 2016, three 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. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation 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, 2015. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments |
Use of Estimates, Policy [Policy Text Block] | Management's Use of Estimates |
Receivables, Policy [Policy Text Block] | Accounts Receivable outstanding beyond their contractual terms and are charged off to bad debt expense when they are determined to be uncollectible. For the three months ended March 31, 2016 and 2015, the net amount of bad debts charged off was $-0-. |
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 |
Research and Development Expense, Policy [Policy Text Block] | Research and Development |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Common Share |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements 2015-03— Interest-Imputation of Interest (Subtopic 835-30):Simplifying the Presentation of Debt Issuance Costs. 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 xisting 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. |
Note 3 - Earnings Per Share (Ta
Note 3 - Earnings Per Share (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For the Three Months Ended For the Nine Months Ended 31-Mar 31-Mar 2016 2014 2016 2014 Net income (loss) (22,611 ) $ 41,148 $ (42,548 ) $ 11,167 Earnings per share - basic and fully diluted $ ** $ ** $ ** $ ** Weighted average number of shares 17,666,647 15,221,647 17,666,647 15,221,647 |
Note 4 - Supplemental Cash Fl15
Note 4 - Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | For the Three Months Ended For the Nine Months Ended 31-Mar 31-Mar 2016 2015 2016 2015 Cash paid for: Income taxes $ 0 $ 1,984 $ 0 $ 0 Interest $ 1,211 $ 1,169 $ 3,023 $ 3,884 |
Note 1 - Organization and Ope16
Note 1 - Organization and Operations (Details Textual) - USD ($) | Jan. 01, 2002 | Mar. 31, 2016 | Jun. 30, 2015 | Jan. 28, 2000 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.001 | |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 | 100,000,000 | |
Finite-lived Intangible Assets Acquired | $ 350,000 |
Note 2 - Summary of Significa17
Note 2 - Summary of Significant Accounting Practices (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | |
Minimum [Member] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Maximum [Member] | |||
Property, Plant and Equipment, Useful Life | 40 years | ||
Allowance for Doubtful Accounts Receivable, Current | $ 7,267 | $ 7,267 | |
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 0 | $ 0 | |
Research and Development Expense | $ 0 | $ 1,500 | |
Asset Impairment Charges | $ 0 |
Note 3 - Earnings Per Share - N
Note 3 - Earnings Per Share - Net Loss and Earnings Per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | ||
Net income (loss) | $ (22,611) | $ 41,148 | $ (42,548) | $ 11,166 | |
Earnings Per Share, Basic and Diluted | [1],[2] | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average number of shares (in shares) | 17,666,647 | 15,221,647 | 17,666,647 | 15,221,647 | |
[1] | Less than $0.01 | ||||
[2] | Less than $0.01 |
Note 4 - Supplemental Cash Fl19
Note 4 - Supplemental Cash Flow Information (Details Textual) - $ / shares | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | ||
Maximum [Member] | |||||
Earnings Per Share, Basic and Diluted | $ 0.01 | ||||
Earnings Per Share, Basic and Diluted | [1],[2] | $ 0 | $ 0 | $ 0 | $ 0 |
[1] | Less than $0.01 | ||||
[2] | Less than $0.01 |
Note 4 - Supplemental Cash Fl20
Note 4 - Supplemental Cash Flow Information - Supplemental Cash Flow Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Cash paid for: | ||||
Income taxes | $ 0 | $ 1,984 | $ 0 | $ 0 |
Interest | $ 1,211 | $ 1,169 | $ 3,023 | $ 3,884 |
Note 5 - Related-party Transa21
Note 5 - Related-party Transactions (Details Textual) - USD ($) | 9 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cahas Mountain Properties [Member] | ||
Sales Revenue, Services, Net | $ 16,792 | $ 16,645 |
Chief Executive Officer [Member] | ||
Accounts Receivable, Related Parties | $ 0 | $ 0 |
Note 6 - Operating Lease Comm22
Note 6 - Operating Lease Commitments (Details Textual) - USD ($) | Jul. 02, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 |
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 10 years | ||||
Operating Leases, Rent Expense, Net | $ 7,500 | $ 22,500 | $ 16,500 | $ 67,500 | $ 58,500 |
Stock Issued During Period, Shares, Issued for Services | 2,400,000 | ||||
Prepaid Rent | $ 120,000 | ||||
Rent to Be Transferred from Prepaid Expenses | 2,000 | ||||
Payments for Rent | 5,500 | ||||
Operating Leases, Rent Expense | $ 67,500 | $ 58,500 |
Note 7 - Concentrations of Cu23
Note 7 - Concentrations of Customer Risk (Details Textual) - Customer Concentration Risk [Member] - Sales Revenue, Net [Member] | 9 Months Ended |
Mar. 31, 2016 | |
Concentration Risk, Percentage | 10.00% |
Concentration Risk, Number of Customers | 3 |