CIMG (IMG) 10-Q 16 Feb 16 2016 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Dec. 31, 2015	Feb. 11, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	NuZee, Inc.
Trading Symbol	NUZE
Document Type	10-Q
Current Fiscal Year End Date	--09-30
Entity Common Stock, Shares Outstanding		30,464,951
Amendment Flag	false
Entity Central Index Key	1,527,613
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

NuZee, Inc. - Balance Sheets

NuZee, Inc. - Balance Sheets - USD ($)	Dec. 31, 2015	Sep. 30, 2015
Current assets:
Cash	$ 47,252	$ 107,678
Accounts receivable	14,345	18,205
Inventories	181,112	201,764
Prepaid expenses and deposits	21,708	21,532
Total current assets	264,417	349,179
Equipment, net	184,145	192,103
Total assets	448,562	541,282
Current liabilities:
Accounts payable	77,620	65,522
Convertible notes payable-related party	600,000	600,000
Other current liabilities	387	607
Total current liabilities	678,007	666,129
Stockholders' equity (deficit):
Preferred stock; 100,000,000 shares authorized, $0.00001 par value; 0 shares issued and outstanding	0	0
Common stock; 100,000,000 shares authorized, $0.00001 par value; 30,404,951 and 30,124,951 shares issued and outstanding	304	301
Additional paid in capital	6,145,335	5,940,337
Accumulated deficit	(6,297,718)	(5,988,119)
Less: treasury stock, at cost (2,016,000 shares held in treasury as of December 31, 2015 and September 30, 2015 )	(77,366)	(77,366)
Total stockholders' equity (deficit)	(229,445)	(124,847)
Total liabilities and stockholders' equity (deficit)	$ 448,562	$ 541,282

NuZee, Inc. - Balance Sheets (P

NuZee, Inc. - Balance Sheets (Parentheticals) - $ / shares	Dec. 31, 2015	Sep. 30, 2015
Preferred stock; shares authorized	100,000,000	100,000,000
Preferred stock; par value (in Dollars per share)	$ 0.00001	$ 0.00001
Preferred stock; shares issued	0	0
Preferred stock; shares outstanding	0	0
Common stock; shares authorized,	100,000,000	100,000,000
Common stock; par value (in Dollars per share)	$ 0.00001	$ 0.00001
Common stock; shares issued	30,404,951	30,124,951
Common stock; outstanding	30,404,951	30,124,951
Less: treasury stock, held	2,016,000	2,016,000

NuZee Inc. - Statements of Oper

NuZee Inc. - Statements of Operations - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Revenues	$ 44,460	$ 41,016
Cost of sales	29,065	35,517
Gross Profit	15,395	5,499
Operating expenses	321,573	306,980
Loss from operations	(306,178)	(301,481)
Other income	228
Other expense	(3,649)	(800)
Net loss	$ (309,599)	$ (302,281)
Basic and diluted loss per common share (in Dollars per share)	$ (0.01)	$ (0.01)
Basic and diluted weighted average number of common stock outstanding (in Shares)	30,330,494	28,099,371

NuZee, Inc. - Statements of Cas

NuZee, Inc. - Statements of Cash Flows - USD ($)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Operating activities:
Net loss	$ (309,599)	$ (302,281)
used by operating activities:
Depreciation	10,488	1,618
Option expense		17,992
Warrant expense		9,134
Change in operating assets and liabilities:
Accounts receivable	3,860	321
Inventories	20,652	(33,082)
Prepaid expenses and deposits	(176)	24,473
Accounts payable	12,098	(5,004)
Other current liabilities	(220)	672
Net cash used by operating activities	(262,897)	(286,157)
Investing activities:
Purchase of equipment	(2,529)
Net cash used by investing activities	(2,529)
Financing activities:
Proceeds from issuance of common stock	205,000	13,200
Proceeds from issuance of treasury stock		174,000
Net cash provided by financing activities	205,000	187,200
Net change in cash	(60,426)	(98,957)
Cash, beginning of period	107,678	238,160
Cash, end of period	47,252	139,203
Supplemental disclosure of cash flow information:
Cash paid for interest	0	$ 0
Cash paid for taxes	$ 800

1. BASIS OF PRESENTATION AND SU

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited interim financial statements of Nuzee, Inc. have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), and rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s annual report on Form 10-K for the year ended December 31, 2015 as filed with the SEC. In the opinion of management, all adjustments, consisting of recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements as reported in the annual report on Form 10-K have been omitted. The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, which contemplates continuation of the Company as a going concern. The Company has had recurring losses, large accumulated deficits, is dependent on the shareholder to provide additional funding for operating expenses and has no recurring revenues. These items raise substantial doubts about the Company’s ability to continue as a going concern. The Company believes that there will be significant expansion opportunities in existing markets through new products as well as in new regions outside of the United States in a combination of market development and product licensing.

2. RELATED PARTY TRANSACTIONS

2. RELATED PARTY TRANSACTIONS	3 Months Ended
	Dec. 31, 2015
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	2. RELATED PARTY TRANSACTIONS During February 2015, the Company issued a secured convertible promissory note in the sum of $600,000 to Masateru Higashida, the Company’s major shareholder. Interest calculated at the annual rate of zero percent (0%) for the period until April 2016. If the outstanding principle and all accrued and unpaid interest on the debt hereof (the “Debt”) is not repaid by the Company in full by the Repayment Date, the Debt or any portion thereof may be converted at the option of the Holder, upon written notice to the Company at any time after the Repayment Date, into that number of shares of the Company’s Common Stock equal to the Debt or that portion thereof that the Holder elects to convert, divided by price per share of $0.51. This note shall by cancelled on the date of conversion of the entirety of the Debt

3. COMMON STOCK

3. COMMON STOCK	3 Months Ended
	Dec. 31, 2015
Stockholders' Equity Note [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	3. COMMON STOCK During October 2015, the Company sold 140,000 shares of common stock at $0.70 per share, for an aggregate purchase price of $98,000. During November 2015, the Company sold 50,000 shares of common stock at $0.70 per share, for an aggregate purchase price of $35,000. During December 2015, the Company sold 90,000 shares of common stock at $0.80 per share, for an aggregate purchase price of $72,000

4. STOCK OPTIONS

4. STOCK OPTIONS	3 Months Ended
	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	4. STOCK OPTIONS During three months ended 2015, the Company committed to issue 242,500 options to employees and consultant for the services the next time the board approves for issuance. The new method of determination of granted is simplified method and no more usage of the Black-Scholes model. The following table summarizes common stock options issued and outstanding: Stock Options Exercise price Intrinsic value Outstanding at September 30, 2015 2,833,333 $0.60 - Granted - - - Excised - - - Forfeited - - - Expired - - - Outstanding at December 31, 2015 (2,833,333) $0.60 - Total - - - As of December 31, 2015, there were no options exercisable or outstanding.

5. SUBSEQUENT EVENTS

5. SUBSEQUENT EVENTS	3 Months Ended
	Dec. 31, 2015
Subsequent Events [Abstract]
Subsequent Events [Text Block]	5. SUBSEQUENT EVENTS During January 2016, the Company granted 50,000 shares of treasury stock to a consultant at $0.30 per share, for an aggregate purchase price of $15,000. During January 2016, the Company sold 60,000 shares of common stock at $0.80 per share for an aggregate purchase price of $48, 000

4. STOCK OPTIONS (Tables)

4. STOCK OPTIONS (Tables)	3 Months Ended
	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Share-based Compensation, Stock Options and Stock Appreciation Rights Award Activity [Table Text Block]	Stock Options Exercise price Intrinsic value Outstanding at September 30, 2015 2,833,333 $0.60 - Granted - - - Excised - - - Forfeited - - - Expired - - - Outstanding at December 31, 2015 (2,833,333) $0.60 - Total - - -

2. RELATED PARTY TRANSACTIONS (

2. RELATED PARTY TRANSACTIONS (Details)	Feb. 02, 2015USD ($)$ / shares
Related Party Transactions [Abstract]
Related Party Transaction, Amounts of Transaction	$ 600,000
Interest Expense, Related Party	$ 0
Debt Instrument, Convertible, Conversion Price (in Dollars per share) | $ / shares	$ 0.51

3. COMMON STOCK (Details)

3. COMMON STOCK (Details) - USD ($)	Jan. 02, 2016	Dec. 31, 2015	Nov. 30, 2015	Oct. 31, 2015	Jan. 05, 2016
Stockholders' Equity Note [Abstract]
Stock Issued During Period, Shares, New Issues	60,000	90,000	50,000	140,000
Shares Issued, Price Per Share	$ 0.80	$ 0.80	$ 0.70	$ 0.70	$ 0.30
Stock Issued During Period, Value, New Issues		$ 72,000	$ 35,000	$ 98,000

4. STOCK OPTIONS (Details)

4. STOCK OPTIONS (Details)	Dec. 31, 2015USD ($)
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options	$ 242,500

4. STOCK OPTIONS (Details) - Th

4. STOCK OPTIONS (Details) - The following table summarizes common stock options issued and outstanding: - $ / shares	3 Months Ended	12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015
The following table summarizes common stock options issued and outstanding: [Abstract]
	(2,833,333)	2,833,333
	$ 0.60	$ 0.60

5. SUBSEQUENT EVENTS (Details)

5. SUBSEQUENT EVENTS (Details) - USD ($)	Jan. 05, 2016	Jan. 02, 2016	Dec. 31, 2015	Nov. 30, 2015	Oct. 31, 2015	Sep. 30, 2015
Subsequent Events [Abstract]
Stock Issued During Period, Shares, Treasury Stock Reissued	50,000
Shares Issued, Price Per Share	$ 0.30	$ 0.80	$ 0.80	$ 0.70	$ 0.70
Stock Issued During Period, Value, Treasury Stock Reissued	$ 15,000
Stock Issued During Period, Shares, New Issues		60,000	90,000	50,000	140,000
Common Stock, Value, Issued		$ 48,000	$ 304			$ 301