CIMG (IMG) 10-Q 15 May 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	6 Months Ended
	Mar. 31, 2019	Apr. 30, 2019	Mar. 31, 2018
Details
Registrant Name	NUZEE, INC.
Registrant CIK	0001527613
SEC Form	10-Q
Period End date	Mar. 31, 2019
Fiscal Year End	--09-30
Trading Symbol	nuze
Tax Identification Number (TIN)	383849791
Number of common stock shares outstanding		40,163,940
Public Float			$ 0
Filer Category	Non-accelerated Filer
Current with reporting	Yes
Small Business	true
Emerging Growth Company	false
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Entity File Number	333-176684
Entity Incorporation, State Country Name	Nevada
Entity Address, Address Line One	2865 Scott Street
Entity Address, Address Line Two	Suite 107
Entity Address, City or Town	Vista
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92081
Entity Address, Address Description	Address of principal executive offices
City Area Code	760
Local Phone Number	295-2408
Phone Fax Number Description	Registrant’s telephone number, including area code

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Mar. 31, 2019	Sep. 30, 2018
Current assets:
Cash	$ 1,150,490	$ 1,806,666
Accounts receivable, net	90,980	144,632
Accounts receivable - Related party	271	222
Inventories, net	276,877	134,877
Other current assets	182,270	134,632
Other current assets - Related party	34,568	33,887
Total current assets	1,735,456	2,254,916
Property and equipment, net	1,726,287	674,393
Other assets:
Goodwill	17,112	17,112
Customer List, net	28,687	34,424
Other asset	2,185	1,667
Assets, Noncurrent	47,984	53,203
Total assets	3,509,727	2,982,512
Current liabilities:
Accounts payable	701,663	268,283
Current portion of long-term loan payable	22,682	44,229
Other current liabilities	114,955	160,773
Other current liabilities - Related party	1,408	2,782
Total current liabilities	840,708	476,067
Non-current liabilities:
Loan payable - long term, net of current portion	90,324	88,063
Other noncurrent liabilities	0	6,317
Liabilities, Noncurrent	90,324	94,380
Total liabilities	931,032	570,447
Stockholders' equity:
Common Stock, Value	401	396
Additional paid in capital	19,085,519	14,957,227
Accumulated deficit	(16,637,416)	(12,607,722)
Accumulated other comprehensive loss	(22,586)	(30,967)
Total NuZee, Inc. shareholders' equity	2,425,918	2,318,934
Noncontrolling interest	152,777	93,131
Total stockholders' equity	2,578,695	2,412,065
Total liabilities and stockholders' equity	$ 3,509,727	$ 2,982,512

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (Unaudited) - Parenthetical - $ / shares	Mar. 31, 2019	Sep. 30, 2018
Details
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Par or Stated Value Per Share	$ 0.00001	$ 0.00001
Common Stock, Shares, Issued	40,143,940	39,583,773
Common Stock, Shares, Outstanding	40,143,940	39,583,773

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Details
Revenues	$ 365,956	$ 390,653	$ 719,364	$ 747,532
Cost of sales	245,188	287,399	454,858	526,409
Gross Profit	120,768	103,254	264,506	221,123
Operating expenses	1,513,352	838,125	4,245,980	1,598,778
Loss from operations	(1,392,584)	(734,871)	(3,981,474)	(1,377,655)
Other income	81	8,544	4,266	9,051
Equity in loss of unconsolidated affiliate	0	(10,167)	0	(10,733)
Other expense	(41,109)	(3)	(44,353)	(3)
Interest expense	(751)	(766)	(1,208)	(1,479)
Net loss	(1,434,363)	(737,263)	(4,022,769)	(1,380,819)
Net loss attributable to noncontrolling interest	18,639	17,210	6,925	11,154
Net loss attributable to NuZee, Inc.	$ (1,453,002)	$ (754,473)	$ (4,029,694)	$ (1,391,973)
Basic and diluted loss per common share	$ (0.04)	$ (0.02)	$ (0.10)	$ (0.04)
Basic and diluted weighted average number of common stock outstanding	39,720,202	36,267,298	39,795,817	35,580,677

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Net loss	$ (1,434,363)	$ (737,263)	$ (4,022,769)	$ (1,380,819)
Foreign currency translation	44,919	14,155	61,102	13,865
Total other comprehensive loss, net of tax	44,919	14,155	61,102	13,865
Comprehensive income (loss)	(1,389,444)	(723,108)	(3,961,667)	(1,366,954)
Parent
Net loss	(1,453,002)	(754,473)	(4,029,694)	(1,391,973)
Foreign currency translation	(2,947)	9,908	8,381	9,705
Total other comprehensive loss, net of tax	(2,947)	9,908	8,381	9,705
Comprehensive income (loss)	(1,455,949)	(744,565)	(4,021,313)	(1,382,268)
Noncontrolling Interest
Net loss	18,639	17,210	6,925	11,154
Foreign currency translation	47,866	4,247	52,721	4,160
Total other comprehensive loss, net of tax	47,866	4,247	52,721	4,160
Comprehensive income (loss)	$ 66,505	$ 21,457	$ 59,646	$ 15,314

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (unaudited) - USD ($)	Common Stock	Additional Paid-in Capital	Retained Earnings	Noncontrolling Interest	AOCI Attributable to Parent	Total
Equity Balance, Starting at Sep. 30, 2017	$ 347	$ 9,718,648	$ (9,030,551)	$ 92,857	$ (20,680)	$ 760,621
Shares Outstanding, Starting at Sep. 30, 2017	34,720,538
Stock Issued During Period, Value, New Issues	$ 10	509,100	0	0	0	509,110
Stock Issued During Period, Shares, New Issues	998,254
Shares Granted, Value, Share-based Payment Arrangement, after Forfeiture	$ 0	133,486	0	0	0	133,486
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	0
Subscription receivable from issuance of common stock, value	$ 3	152,997	0	0	0	153,000
Subscription receivable from issuance of common stock, shares	300,000
Other Comprehensive Income, Other, Net of Tax	$ 0	0	0	(87)	(203)	(290)
Net Income (Loss)	$ 0	0	(637,500)	(6,056)	0	(643,556)
Shares Outstanding, Ending at Dec. 31, 2017	36,018,792
Equity Balance, Ending at Dec. 31, 2017	$ 360	10,514,231	(9,668,051)	86,714	(20,883)	912,371
Equity Balance, Starting at Sep. 30, 2017	$ 347	9,718,648	(9,030,551)	92,857	(20,680)	760,621
Shares Outstanding, Starting at Sep. 30, 2017	34,720,538
Stock issuance costs						0
Stock Issued During Period, Value, Issued for Services						0
Shares Outstanding, Ending at Mar. 31, 2018	37,122,321
Equity Balance, Ending at Mar. 31, 2018	$ 371	11,712,443	(10,422,524)	108,171	(10,975)	1,387,486
Equity Balance, Starting at Dec. 31, 2017	$ 360	10,514,231	(9,668,051)	86,714	(20,883)	912,371
Shares Outstanding, Starting at Dec. 31, 2017	36,018,792
Stock Issued During Period, Value, New Issues	$ 11	1,082,189	0	0	0	1,082,200
Stock Issued During Period, Shares, New Issues	1,103,529
Shares Granted, Value, Share-based Payment Arrangement, after Forfeiture	$ 0	116,023	0	0	0	116,023
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	0
Other Comprehensive Income, Other, Net of Tax	$ 0	0	0	4,247	9,908	14,155
Net Income (Loss)	$ 0	0	(754,473)	17,210	0	(737,263)
Shares Outstanding, Ending at Mar. 31, 2018	37,122,321
Equity Balance, Ending at Mar. 31, 2018	$ 371	11,712,443	(10,422,524)	108,171	(10,975)	1,387,486
Equity Balance, Starting at Sep. 30, 2018	$ 396	14,957,227	(12,607,722)	93,131	(30,967)	2,412,065
Shares Outstanding, Starting at Sep. 30, 2018	39,583,773
Stock Issued During Period, Value, New Issues	$ 3	1,494,802	0	0	0	1,494,805
Stock Issued During Period, Shares, New Issues	350,673
Stock Issued During Period, Value, Other	$ 0	107,478	0	0	0	107,478
Stock Issued During Period, Shares, Other	15,354
Shares Granted, Value, Share-based Payment Arrangement, after Forfeiture	$ 0	1,789,751	0	0	0	1,789,751
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	0
NuZee foreign currency gain (loss)	$ 0	0	0	4,855	11,328	16,183
Net Income (Loss)			(2,576,692)	(11,714)		(2,588,406)
Shares Outstanding, Ending at Dec. 31, 2018	39,949,800
Equity Balance, Ending at Dec. 31, 2018	$ 399	18,349,258	(15,184,414)	86,272	(19,639)	3,231,876
Equity Balance, Starting at Sep. 30, 2018	$ 396	14,957,227	(12,607,722)	93,131	(30,967)	2,412,065
Shares Outstanding, Starting at Sep. 30, 2018	39,583,773
Stock issuance costs						27,628
Stock Issued During Period, Value, Issued for Services						37,500
Shares Outstanding, Ending at Mar. 31, 2019	40,143,940
Equity Balance, Ending at Mar. 31, 2019	$ 401	19,085,519	(16,637,416)	152,777	(22,586)	2,578,695
Equity Balance, Starting at Dec. 31, 2018	$ 399	18,349,258	(15,184,414)	86,272	(19,639)	3,231,876
Shares Outstanding, Starting at Dec. 31, 2018	39,949,800
Stock Issued During Period, Value, New Issues	$ 0	228,204	0	0	0	228,204
Stock Issued During Period, Shares, New Issues	41,610
Stock Issued During Period, Value, Other	$ 0	16,445	0	0	0	16,445
Stock Issued During Period, Shares, Other	2,530
Shares Granted, Value, Share-based Payment Arrangement, after Forfeiture	$ 0	481,742	0	0	0	481,742
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures	0
NuZee foreign currency gain (loss)			0	47,866	(2,947)	44,919
Stock issuance costs		(27,628)	0	0	0	(27,628)
Stock Issued During Period, Value, Issued for Services	$ 2	37,498	0	0	0	37,500
Stock Issued During Period, Shares, Issued for Services	150,000
Net Income (Loss)			(1,453,002)	18,639	0	(1,434,363)
Shares Outstanding, Ending at Mar. 31, 2019	40,143,940
Equity Balance, Ending at Mar. 31, 2019	$ 401	$ 19,085,519	$ (16,637,416)	$ 152,777	$ (22,586)	$ 2,578,695

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Operating activities:
Net loss	$ (4,022,769)	$ (1,380,819)
used by operating activities:
Depreciation and Amortization	32,444	59,486
Option expense	2,271,493	249,509
Inventory impairment	23,656	0
Loss on sale of assets	3,217	0
loss on settlement of payable	91,684	0
Allowance for sales return	15,854	0
Equity in loss of unconsolidated affiliate	0	10,733
Change in operating assets and liabilities:
Accounts receivable	37,798	(25,847)
Accounts receivable - Related party	(49)	12,613
Inventories	(165,656)	(28,691)
Prepaid expense and other current assets	(47,638)	(67,397)
Increase (Decrease) in Contract with Customer, Asset	(681)	(4,677)
Other asset	(518)	0
Accounts payable	503,119	28,538
Deferred revenue	0	(72,750)
Other liabilities	(6,317)	0
Other current liabilities - related party	(1,374)	(15,028)
Accrued expense and other current liabilities	(45,818)	5,297
Net cash used by operating activities	(1,311,555)	(1,229,033)
Investing activities:
Purchase of equipment	(1,105,418)	(331,916)
Proceeds from sales of equipment	23,600	0
Net cash used in investing activities	(1,081,818)	(331,916)
Financing activities:
Proceeds from issuance of loan - short term - Related party	0	341,000
Stock issuance costs	(27,628)	0
Repayment of loans - short term - Related party	0	(341,200)
Repayment of loans	(22,228)	(23,196)
Payments on capital lease	0	(1,800)
Proceeds from issuance of common stock	1,723,009	1,744,310
Net cash provided by financing activities	1,673,153	1,719,114
Effect of foreign exchange on cash and cash equivalents	64,044	9,798
Net change in cash	(656,176)	167,963
Cash and Cash Equivalents, at Carrying Value, Beginning Balance	1,806,666	347,327
Cash and Cash Equivalents, at Carrying Value, Ending Balance	1,150,490	515,290
Supplemental disclosure of cash flow information:
Cash paid for interest	0	1,082
Cash paid for taxes	0	800
Noncash investing and financing activities:
Stock issued to settle payables	32,239	0
Stock issued for services	$ 37,500	$ 0

1. BASIS OF PRESENTATION AND SU

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Mar. 31, 2019
Notes
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited interim consolidated financial statements of NuZee, Inc. (the “Company”) 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 consolidated financial statements and notes thereto contained in the Company’s annual report on Form 10-K for the year ended September 30, 2018 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. Principles of Consolidation The Company prepares its financial statements on the accrual basis of accounting. The accompanying consolidated financial statements include the accounts of the Company and its majority owned subsidiary, which has a fiscal year end of September 30. All significant intercompany accounts, balances and transactions have been eliminated upon consolidation. NuZee JAPAN Co., Ltd (“NuZee JP”), NuZee Korea Ltd (“NuZee KR”) and NuZee Investment Co., Ltd. (“NuZee INV”) are wholly owned subsidiaries of the Company. Earnings per Share Basic earnings per common share is equal to net earnings or loss divided by the weighted average of shares outstanding during the reporting period. Diluted earnings per share reflects the potential dilution that could occur if stock options and other commitments to issue common stock were exercised or equity awards vest resulting in the issuance of common stock that could share in the earnings of the Company. The Company incurred a net loss for the three months and six months ended March 31, 2019 and 2018, respectively and therefore, basic and diluted earnings per share for those periods are the same because all potential common equivalent shares would be antidilutive. Going Concern and Capital Resources Since its inception, the Company has devoted substantially all of its efforts to business planning, research and development, recruiting management and technical staff, acquiring operating assets and raising capital. The Company has generated limited revenues from its principal operations, and there is no assurance of future revenues. As of March 31, 2019, the Company had cash of $1,150,490. The Company has not attained profitable operations since inception. The accompanying consolidated 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 limited revenues, recurring losses, an accumulated deficit and is dependent on its majority shareholder to provide additional funding for operating expenses. These items raise substantial doubt as to the Company's ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company's continued existence is dependent upon management's ability to develop profitable operations, continued contributions from the Company's executive officers to finance its operations and the ability to obtain additional funding sources to explore potential strategic relationships and to provide capital and other resources for the further development and marketing of the Company's products and business. Major Customers In the six months ended March 31, 2019 and 2018, revenue was primarily from major customers disclosed below. Six months ended March 31, 2019: Customer Name Sales Amount % of Total Revenue Customer PO $ 329,572 46 % Customer B $ 60,384 8 % Customer C $ 56,285 8 % Six months ended March 31, 2018: Customer Name SalesAmount %ofTotalRevenue Customer PO $ 432,176 58 % Customer K $ 77,750 10 % Lease The Company evaluates each lease for classification as either a capital lease or an operating lease. If substantially all of the benefits and risks of ownership have been transferred to the Company as lessee, the Company records the lease as a capital lease at its inception. The Company performs this evaluation at the inception of the lease and when a modification is made to a lease. If the lease agreement calls for a scheduled rent increase during the lease term, the Company recognizes the lease expense on a straight-line basis over the lease term. NuZee JAPAN Co., Ltd is the lessee of certain equipment under a capital lease extending through 2020. The asset and liability under the capital lease are recorded at the lower of the present value of the minimum lease payments, or the fair value of the asset. Leased equipment is depreciated over a 6-year life. The leased equipment is reported in the accompanying consolidated balance sheets in property and equipment of $8,812 as of March 31, 2019. The capital lease liability is included in other current liabilities on the consolidated balance sheets. Future minimum lease payments under capital lease obligations as of March 31, 2019 for each of the remaining fiscal years are as follows: 2019 $2,518 2020 $5,035 2021 $1,259 Total Minimum Lease Payments $8,812 The Company leases office space with terms ranging from month to month to 32 months. Rent expense included in general and administrative expense for the six months ended March 31, 2019 and 2018 was $66,350 and $61,692, respectively. 2019 $49,570 2020 $59,732 Total Minimum Lease Payments $109,302 Loan On June 30, 2016, NuZee JP entered into a loan agreement with Tono Shinyo Kinko Bank. The Company borrowed the sum of approximately $145,758 to be repaid on or before June 5, 2021 at an annual interest rate of 1.2%. The loan is unsecured and guaranteed by a director. The outstanding balance on the loan at March 31, 2019 amounted to $60,901. On January 27, 2017, NuZee JP entered into a loan agreement with Nihon Seiaku Kouko. The Company borrowed the sum of approximately $87,268 to be repaid on or before January 20, 2022 at an interest rate of 0.16%. The loan is unsecured and not guaranteed by a director. The outstanding balance on the loan at March 31, 2019 amounted to $52,105. During the six months ended March 31, 2019, the Company made principal repayments on outstanding loan balances totaling $22,228. and liabilities that arise from all leases. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from previous GAAP. There continues to be a differentiation between finance leases and operating leases. However, the principal difference from previous guidance is that the lease assets and lease liabilities arising from operating leases should be recognized in the consolidated balance sheet. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP. The amendments will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and early adoption is permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. An entity that elects to apply the practical expedients will, in effect, continue to account for leases that commence before the effective date in accordance with previous GAAP unless the lease is modified, except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous GAAP. The Company is currently evaluating the impact of these amendments on its consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification accounting, to provide clarity and reduce both (1) diversity in practice and (2) cost and complexity when applying the guidance in Topic 718, Compensation—Stock Compensation, to a change to the terms or conditions of a share-based payment award. The ASU provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in ASC Topic 718. The amendments are effective for fiscal years beginning after December 15, 2017, and should be applied prospectively to an award modified on or after the adoption date. Early adoption is permitted, including adoption in an interim period. The Company adopted ASU No. 2017-09 on October 1, 2018, and this adoption did not have an impact on the Company's financial statements. In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Non-controlling Interests with a Scope Exception. The ASU was issued to address the complexity associated with applying generally accepted accounting principles (GAAP) for certain financial instruments with characteristics of liabilities and equity. The ASU, among other things, eliminates the need to consider the effects of down round features when analyzing convertible debt, warrants and other financing instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. The amendments are effective for fiscal years beginning after December 15, 2018, and should be applied retrospectively. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact of this amendment on its consolidated financial statements.

2. GEOGRAPHIC CONCENTRATION

2. GEOGRAPHIC CONCENTRATION	6 Months Ended
	Mar. 31, 2019
Notes
2. GEOGRAPHIC CONCENTRATION	2. GEOGRAPHIC CONCENTRATION The Company is organized based on fundamentally one business segment although it does sell its products on a world-wide basis. Information about the Company’s geographic operations are as follows: Geographic Concentrations Six Months Ended March 31, 2019 Six Months Ended March 31, 2018 Net Revenue: North America $ 295,619 $ 266,836 Japan 388,658 480,696 South Korea 35,087 - $ 719,364 $ 747,532 Property and equipment, net: March 31, 2019 September 30, 2018 North America $ 1,177,813 $ 508,711 Japan 8,640 7,864 South Korea 539,834 157,818 $ 1,726,287 $ 674,393

3. RELATED PARTY TRANSACTIONS

3. RELATED PARTY TRANSACTIONS	6 Months Ended
	Mar. 31, 2019
Notes
3. RELATED PARTY TRANSACTIONS	3. RELATED PARTY TRANSACTIONS Sales, Purchases and Operating Expenses For the six months ended March 31, 2019 and 2018, NuZee JP sold their products to EHCL, and the sales to them totaled approximately $2,628 and $2,805, respectively. The corresponding accounts receivable balance from EHCL was $271 and $222 as of March 31, 2019 and September 30, 2018, respectively. EHCL leased an employee to NuZee JP with no fee during the six months ended March 31, 2019. NuZee Investment leased an employee to Contlus. Contlus is the Company’s related party as the Company holds 50% of their issued shares. Contlus has payable balance of $34,568 as of March 31, 2019. Rent During October 2016, NuZee JP entered into a rental agreement of an office space with NuZee Co., Ltd. The Company agrees to pay $1,169 per month for the office on the last day of each month. There is no set expiration date on the agreement. During September 2016, the Company entered into a rental agreement of an office space and warehouse with EHCL. The Company agrees to pay $1,213 per month for the office and the warehouse on the last day of each month. The term of this agreement is 3 years and will be automatically renewed. At March 31, 2019, the payable balance under this lease was $1,408. During February 2015, the Company entered into a rental agreement of a warehouse with Eguchi Steel Co.,Ltd (“ESCL”). The Company agrees to pay $449 per month for the warehouse on the last day of each month. There is no set expiration date on the agreement. ESCL is the Company’s related party as they are controlled by Katsuyoshi Eguchi who is a director and the minority owner of NuZee JP.

4. COMMON STOCK

4. COMMON STOCK	6 Months Ended
	Mar. 31, 2019
Notes
4. COMMON STOCK	4. COMMON STOCK During the six months ended March 31, 2019, the Company sold 392,283 shares of common stock at a weighted average price of $4.39 per share, for an aggregate purchase price of $1,723,009 as well as incurred $27,628 in stock issuance costs. The proceeds will be used for general corporate purposes. During the six months ended March 31, 2019, the Company issued 17,884 shares to settle payables amounting to $32,239. The Company recognized a loss on settlement of payables of $91,684 for the six months ended March 31, 2019. During the six months ended March 31, 2019, the Company issued 150,000 shares to satisfy a previously committed service obligation of $37,500.

5. STOCK OPTIONS

5. STOCK OPTIONS	6 Months Ended
	Mar. 31, 2019
Notes
5. STOCK OPTIONS	5. STOCK OPTIONS The following table summarizes stock option activity for six months ended March 31, 2019: Weighted Weighted Average Average Number of Exercise Remaining Aggregate Shares Price Contractual Life (years) Intrinsic Value Outstanding at September 30, 2018 3,942,000 $ 0.78 8.9 $ 4,407,160 Granted - - Exercised - - Expired - - Forfeited - - Outstanding at March 31, 2019 3,942,000 $ 0.78 8.5 22,540,360 Exercisable at March 31, 2019 632,000 $ 0.54 8.0 $ 3,768,160 The Company is expensing these stock option awards on a straight-line basis over the requisite service period. The Company recognized stock option expenses of $2,271,493 for six months ended March 31, 2019. Unamortized option expense as of March 31, 2019, for all options outstanding amounted to approximately $4,743,539. These costs are expected to be recognized over a weighted-average period of 2.1 years. The Company recognized stock option expenses of $249,509 for six months ended March 31, 2018. A summary of the status of the Company’s nonvested shares as of March 31, 2019, is presented below: Nonvested options Number of Nonvested Shares Nonvested shares at September 30, 2018 3,310,000 Granted - Exercised - Forfeited - Vested - Nonvested shares at March 31, 2019 3,310,000

6. SUBSEQUENT EVENTS

6. SUBSEQUENT EVENTS	6 Months Ended
	Mar. 31, 2019
Notes
6. SUBSEQUENT EVENTS	6. SUBSEQUENT EVENTS On April 23, 2019, we entered into the “Third Amendment to Lease” with our current landlord in Vista California. Under the terms of this lease we added 2,134 square feet to our facility. After this expansion, we will have 5,643 square feet spaced leased by the landlord with an additional 1,108 square feet subleased from another tenant (total 6,751 square feet). All of this space will co-terminate on May 31, 2020. The additional space will increase our monthly rent by approximately $2,347. On April 15, 2019, we sold 20,000 shares for $5.46 per share for a total of $109,200. On May 7, 2019, we entered into a lease of 16,603 square-foot facility in Plano, Texas. The lease begins on June 1, 2019 and expires on June 30, 2024, and the base rent begins at $9,615.90 per month and increases periodically reaching $10,822.78 per month in the final year of the lease. The base rent does not include the Company's share of operating expenses which are currently $3,348.27 per month and could increase up to 10% per year. This facility will become our future single serve pour over co-packing hub.

1. BASIS OF PRESENTATION AND _2

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Basis of Accounting, Policy (Policies)	6 Months Ended
	Mar. 31, 2019
Policies
Basis of Accounting, Policy	The accompanying unaudited interim consolidated financial statements of NuZee, Inc. (the “Company”) 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 consolidated financial statements and notes thereto contained in the Company’s annual report on Form 10-K for the year ended September 30, 2018 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.

1. BASIS OF PRESENTATION AND _3

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Principles of Consolidation (Policies)	6 Months Ended
	Mar. 31, 2019
Policies
Principles of Consolidation	Principles of Consolidation The Company prepares its financial statements on the accrual basis of accounting. The accompanying consolidated financial statements include the accounts of the Company and its majority owned subsidiary, which has a fiscal year end of September 30. All significant intercompany accounts, balances and transactions have been eliminated upon consolidation. NuZee JAPAN Co., Ltd (“NuZee JP”), NuZee Korea Ltd (“NuZee KR”) and NuZee Investment Co., Ltd. (“NuZee INV”) are wholly owned subsidiaries of the Company.

1. BASIS OF PRESENTATION AND _4

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Earnings per Share (Policies)	6 Months Ended
	Mar. 31, 2019
Policies
Earnings per Share	Earnings per Share Basic earnings per common share is equal to net earnings or loss divided by the weighted average of shares outstanding during the reporting period. Diluted earnings per share reflects the potential dilution that could occur if stock options and other commitments to issue common stock were exercised or equity awards vest resulting in the issuance of common stock that could share in the earnings of the Company. The Company incurred a net loss for the three months and six months ended March 31, 2019 and 2018, respectively and therefore, basic and diluted earnings per share for those periods are the same because all potential common equivalent shares would be antidilutive.

1. BASIS OF PRESENTATION AND _5

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Going Concern and Capital Resources (Policies)	6 Months Ended
	Mar. 31, 2019
Policies
Going Concern and Capital Resources	Going Concern and Capital Resources Since its inception, the Company has devoted substantially all of its efforts to business planning, research and development, recruiting management and technical staff, acquiring operating assets and raising capital. The Company has generated limited revenues from its principal operations, and there is no assurance of future revenues. As of March 31, 2019, the Company had cash of $1,150,490. The Company has not attained profitable operations since inception. The accompanying consolidated 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 limited revenues, recurring losses, an accumulated deficit and is dependent on its majority shareholder to provide additional funding for operating expenses. These items raise substantial doubt as to the Company's ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company's continued existence is dependent upon management's ability to develop profitable operations, continued contributions from the Company's executive officers to finance its operations and the ability to obtain additional funding sources to explore potential strategic relationships and to provide capital and other resources for the further development and marketing of the Company's products and business.

1. BASIS OF PRESENTATION AND _6

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Major Customers (Policies)	6 Months Ended
	Mar. 31, 2019
Policies
Major Customers	Major Customers In the six months ended March 31, 2019 and 2018, revenue was primarily from major customers disclosed below. Six months ended March 31, 2019: Customer Name Sales Amount % of Total Revenue Customer PO $ 329,572 46 % Customer B $ 60,384 8 % Customer C $ 56,285 8 % Six months ended March 31, 2018: Customer Name SalesAmount %ofTotalRevenue Customer PO $ 432,176 58 % Customer K $ 77,750 10 %

1. BASIS OF PRESENTATION AND _7

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Lease (Policies)	6 Months Ended
	Mar. 31, 2019
Policies
Lease	Lease The Company evaluates each lease for classification as either a capital lease or an operating lease. If substantially all of the benefits and risks of ownership have been transferred to the Company as lessee, the Company records the lease as a capital lease at its inception. The Company performs this evaluation at the inception of the lease and when a modification is made to a lease. If the lease agreement calls for a scheduled rent increase during the lease term, the Company recognizes the lease expense on a straight-line basis over the lease term. NuZee JAPAN Co., Ltd is the lessee of certain equipment under a capital lease extending through 2020. The asset and liability under the capital lease are recorded at the lower of the present value of the minimum lease payments, or the fair value of the asset. Leased equipment is depreciated over a 6-year life. The leased equipment is reported in the accompanying consolidated balance sheets in property and equipment of $8,812 as of March 31, 2019. The capital lease liability is included in other current liabilities on the consolidated balance sheets. Future minimum lease payments under capital lease obligations as of March 31, 2019 for each of the remaining fiscal years are as follows: 2019 $2,518 2020 $5,035 2021 $1,259 Total Minimum Lease Payments $8,812 The Company leases office space with terms ranging from month to month to 32 months. Rent expense included in general and administrative expense for the six months ended March 31, 2019 and 2018 was $66,350 and $61,692, respectively. 2019 $49,570 2020 $59,732 Total Minimum Lease Payments $109,302

1. BASIS OF PRESENTATION AND _8

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition (Policies)	6 Months Ended
	Mar. 31, 2019
Policies
Revenue Recognition	Revenue Recognition In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (Topic 606) “Revenue from Contracts with Customers.” Topic 606 supersedes the revenue recognition requirements in Topic 605 “Revenue Recognition” (Topic 605). The new standard’s core principle is that an entity will recognize revenue at an amount that reflects the consideration to which the entity expects to be entitled in exchange for transferring good or services to a customer. The principles in the standard are applied in five steps: 1) Identify the contract(s) with a customer; 2) Identify the performance obligations in the contract; 3) Determine the transaction price; 4) Allocate the transaction price to the performance obligations in the contract; and 5) Recognize revenue when (or as) the entity satisfies a performance obligation. We adopted Topic 606 as of October 1, 2018 on a modified retrospective basis. The adoption of Topic 606 does not have a material impact to our consolidated financial statements, including the presentation of revenues in our Consolidated Statements of Operations.

1. BASIS OF PRESENTATION AND _9

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Foreign Currency Translation (Policies)	6 Months Ended
	Mar. 31, 2019
Policies
Foreign Currency Translation	Foreign Currency Translation The financial position and results of operations of the Company's foreign subsidiary is measured using the foreign subsidiary's local currency as the functional currency. Revenues and expenses of such subsidiary has been translated into U.S. dollars at average exchange rates prevailing during the period. Assets and liabilities have been translated at the rates of exchange on the balance sheet date. The resulting translation gain and loss adjustments are recorded directly as a separate component of stockholders’ equity unless there is a sale or complete liquidation of the underlying foreign investment. Foreign currency translation adjustments comprising accumulated other comprehensive loss amounted to $(22,586) and ($30,967) as of March 31, 2019 and September 30, 2018, respectively. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred.

1. BASIS OF PRESENTATION AND_10

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Inventories (Policies)	6 Months Ended
	Mar. 31, 2019
Policies
Inventories	Inventories Inventory, consisting principally of raw materials, work in process and finished goods held for production and sale, is stated at the lower of cost or net realizable value, cost being determined using the weighted average cost method. The Company reviews inventory levels at least quarterly and records a valuation allowance when appropriate. At March 31, 2019 and September 30, 2018, the carrying value of inventory of $276,877 and $134,877 respectively, reflected on the consolidated balance sheets is net of this adjustment. March 31, 2019 September 30, 2018 Raw materials $ 52,936 $ 30,200 Finished goods 223,941 104,677 Less - Inventory reserve - - Total $ 276,877 $ 134,877

1. BASIS OF PRESENTATION AND_11

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Recent Accounting Pronouncements (Policies)	6 Months Ended
	Mar. 31, 2019
Policies
Recent Accounting Pronouncements	In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), to provide guidance on recognizing lease assets and lease liabilities on the consolidated balance sheet and disclosing key information about leasing arrangements, specifically differentiating between different types of leases. The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from all leases. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from previous GAAP. There continues to be a differentiation between finance leases and operating leases. However, the principal difference from previous guidance is that the lease assets and lease liabilities arising from operating leases should be recognized in the consolidated balance sheet. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP. The amendments will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and early adoption is permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. An entity that elects to apply the practical expedients will, in effect, continue to account for leases that commence before the effective date in accordance with previous GAAP unless the lease is modified, except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous GAAP. The Company is currently evaluating the impact of these amendments on its consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification accounting, to provide clarity and reduce both (1) diversity in practice and (2) cost and complexity when applying the guidance in Topic 718, Compensation—Stock Compensation, to a change to the terms or conditions of a share-based payment award. The ASU provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in ASC Topic 718. The amendments are effective for fiscal years beginning after December 15, 2017, and should be applied prospectively to an award modified on or after the adoption date. Early adoption is permitted, including adoption in an interim period. The Company adopted ASU No. 2017-09 on October 1, 2018, and this adoption did not have an impact on the Company's financial statements. In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Non-controlling Interests with a Scope Exception. The ASU was issued to address the complexity associated with applying generally accepted accounting principles (GAAP) for certain financial instruments with characteristics of liabilities and equity. The ASU, among other things, eliminates the need to consider the effects of down round features when analyzing convertible debt, warrants and other financing instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. The amendments are effective for fiscal years beginning after December 15, 2018, and should be applied retrospectively. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact of this amendment on its consolidated financial statements.

1. BASIS OF PRESENTATION AND_12

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Major Customers: Schedule of Revenue from External Customers (Tables)	6 Months Ended
	Mar. 31, 2019
Tables/Schedules
Schedule of Revenue from External Customers	Six months ended March 31, 2019: Customer Name Sales Amount % of Total Revenue Customer PO $ 329,572 46 % Customer B $ 60,384 8 % Customer C $ 56,285 8 % Six months ended March 31, 2018: Customer Name SalesAmount %ofTotalRevenue Customer PO $ 432,176 58 % Customer K $ 77,750 10 %

1. BASIS OF PRESENTATION AND_13

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Lease: Schedule of Future Minimum Lease Payments for Capital Leases (Tables)	6 Months Ended
	Mar. 31, 2019
Tables/Schedules
Schedule of Future Minimum Lease Payments for Capital Leases	2019 $2,518 2020 $5,035 2021 $1,259 Total Minimum Lease Payments $8,812

1. BASIS OF PRESENTATION AND_14

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Lease: Schedule of Future Minimum Rental Payments for Operating Leases (Tables)	6 Months Ended
	Mar. 31, 2019
Tables/Schedules
Schedule of Future Minimum Rental Payments for Operating Leases	2019 $49,570 2020 $59,732 Total Minimum Lease Payments $109,302

1. BASIS OF PRESENTATION AND_15

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Loan (Tables)	6 Months Ended
	Mar. 31, 2019
Tables/Schedules
Loan	Loan On June 30, 2016, NuZee JP entered into a loan agreement with Tono Shinyo Kinko Bank. The Company borrowed the sum of approximately $145,758 to be repaid on or before June 5, 2021 at an annual interest rate of 1.2%. The loan is unsecured and guaranteed by a director. The outstanding balance on the loan at March 31, 2019 amounted to $60,901. On January 27, 2017, NuZee JP entered into a loan agreement with Nihon Seiaku Kouko. The Company borrowed the sum of approximately $87,268 to be repaid on or before January 20, 2022 at an interest rate of 0.16%. The loan is unsecured and not guaranteed by a director. The outstanding balance on the loan at March 31, 2019 amounted to $52,105. During the six months ended March 31, 2019, the Company made principal repayments on outstanding loan balances totaling $22,228. Tono Shinyo Kinko Bank Nihon Seisaku Kouko 2019 $ 13,534 $ 9,148 2020 27,067 18,297 2021 20,300 18,298 2022 - 6,362 Total Loan Payment $ 60,901 $ 52,105

1. BASIS OF PRESENTATION AND_16

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Schedule of Loan Payments (Tables)	6 Months Ended
	Mar. 31, 2019
Tables/Schedules
Schedule of Loan Payments	Tono Shinyo Kinko Bank Nihon Seisaku Kouko 2019 $ 13,534 $ 9,148 2020 27,067 18,297 2021 20,300 18,298 2022 - 6,362 Total Loan Payment $ 60,901 $ 52,105

1. BASIS OF PRESENTATION AND_17

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Inventories: Schedule of Inventory, Current (Tables)	6 Months Ended
	Mar. 31, 2019
Tables/Schedules
Schedule of Inventory, Current	March 31, 2019 September 30, 2018 Raw materials $ 52,936 $ 30,200 Finished goods 223,941 104,677 Less - Inventory reserve - - Total $ 276,877 $ 134,877

2. GEOGRAPHIC CONCENTRATION_ Sc

2. GEOGRAPHIC CONCENTRATION: Schedule of Geographic Operations (Tables)	6 Months Ended
	Mar. 31, 2019
Tables/Schedules
Schedule of Geographic Operations	Geographic Concentrations Six Months Ended March 31, 2019 Six Months Ended March 31, 2018 Net Revenue: North America $ 295,619 $ 266,836 Japan 388,658 480,696 South Korea 35,087 - $ 719,364 $ 747,532 Property and equipment, net: March 31, 2019 September 30, 2018 North America $ 1,177,813 $ 508,711 Japan 8,640 7,864 South Korea 539,834 157,818 $ 1,726,287 $ 674,393

5. STOCK OPTIONS_ Schedule of S

5. STOCK OPTIONS: Schedule of Stock Option Activity (Tables)	6 Months Ended
	Mar. 31, 2019
Tables/Schedules
Schedule of Stock Option Activity	Weighted Weighted Average Average Number of Exercise Remaining Aggregate Shares Price Contractual Life (years) Intrinsic Value Outstanding at September 30, 2018 3,942,000 $ 0.78 8.9 $ 4,407,160 Granted - - Exercised - - Expired - - Forfeited - - Outstanding at March 31, 2019 3,942,000 $ 0.78 8.5 22,540,360 Exercisable at March 31, 2019 632,000 $ 0.54 8.0 $ 3,768,160

5. STOCK OPTIONS_ Schedule of C

5. STOCK OPTIONS: Schedule of Company's unvested shares (Tables)	6 Months Ended
	Mar. 31, 2019
Tables/Schedules
Schedule of Company's unvested shares	Nonvested options Number of Nonvested Shares Nonvested shares at September 30, 2018 3,310,000 Granted - Exercised - Forfeited - Vested - Nonvested shares at March 31, 2019 3,310,000

1. BASIS OF PRESENTATION AND_18

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Going Concern and Capital Resources (Details) - USD ($)	Mar. 31, 2019	Sep. 30, 2018	Mar. 31, 2018	Sep. 30, 2017
Details
Cash	$ 1,150,490	$ 1,806,666	$ 515,290	$ 347,327

1. BASIS OF PRESENTATION AND_19

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Major Customers: Schedule of Revenue from External Customers (Details) - USD ($)	6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Customer PO
Sales Amount	$ 329,572	$ 432,176
Percent of Total Revenue	46.00%	58.00%
Customer B
Sales Amount	$ 60,384
Percent of Total Revenue	8.00%
Customer C
Sales Amount	$ 56,285
Percent of Total Revenue	8.00%
Customer K
Sales Amount		$ 77,750
Percent of Total Revenue		10.00%

1. BASIS OF PRESENTATION AND_20

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Lease (Details) - USD ($)	6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Details
Capital Leases, Future Minimum Payments Due	$ 8,812
Payments for Rent	$ 66,350	$ 61,692

1. BASIS OF PRESENTATION AND_21

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Lease: Schedule of Future Minimum Lease Payments for Capital Leases (Details)	Mar. 31, 2019USD ($)
Details
Capital Leases, Future Minimum Payments Due, Next Twelve Months	$ 2,518
Capital Leases, Future Minimum Payments Due in Two Years	5,035
Capital Leases, Future Minimum Payments Due in Three Years	1,259
Capital Leases, Future Minimum Payments Due	$ 8,812

1. BASIS OF PRESENTATION AND_22

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Lease: Schedule of Future Minimum Rental Payments for Operating Leases (Details)	Mar. 31, 2019USD ($)
Details
Operating Leases, Future Minimum Payments Due, Next Twelve Months	$ 49,570
Operating Leases, Future Minimum Payments, Due in Two Years	59,732
Operating Leases, Future Minimum Payments Due	$ 109,302

1. BASIS OF PRESENTATION AND_23

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Loan (Details) - USD ($)	6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Repayments of Other Debt	$ 22,228	$ 23,196
Loan 1
Debt Instrument, Issuance Date	Jun. 30, 2016
Debt Instrument, Issuer	NuZee JP
Debt Instrument, Description	loan agreement with Tono Shinyo Kinko Bank
Debt Instrument, Face Amount	$ 145,758
Debt Instrument, Maturity Date	Jun. 5, 2021
Debt Instrument, Interest Rate, Stated Percentage	1.20%
Debt Instrument, Collateral	unsecured and guaranteed by a director
Long-term Debt	$ 60,901
Loan 2
Debt Instrument, Issuance Date	Jan. 27, 2017
Debt Instrument, Issuer	NuZee JP
Debt Instrument, Description	loan agreement with Nihon Seiaku Kouko
Debt Instrument, Face Amount	$ 87,268
Debt Instrument, Maturity Date	Jan. 20, 2022
Debt Instrument, Interest Rate, Stated Percentage	0.16%
Debt Instrument, Collateral	unsecured and not guaranteed by a director
Long-term Debt	$ 52,105

1. BASIS OF PRESENTATION AND_24

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Schedule of Loan Payments (Details)	Mar. 31, 2019USD ($)
Tono Shinyo Kinko Bank
2019	$ 13,534
2020	27,067
2021	20,300
2022	0
Total Loan Payment	60,901
Nihon Seisaku Kouko
2019	9,148
2020	18,297
2021	18,298
2022	6,362
Total Loan Payment	$ 52,105

1. BASIS OF PRESENTATION AND_25

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Foreign Currency Translation (Details) - USD ($)	Mar. 31, 2019	Sep. 30, 2018
Details
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax	$ 22,586	$ 30,967

1. BASIS OF PRESENTATION AND_26

1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Inventories: Schedule of Inventory, Current (Details) - USD ($)	Mar. 31, 2019	Sep. 30, 2018
Details
Raw materials	$ 52,936	$ 30,200
Finished goods	223,941	104,677
Less - Inventory reserve	0	0
Inventories, net	$ 276,877	$ 134,877

2. GEOGRAPHIC CONCENTRATION_ _2

2. GEOGRAPHIC CONCENTRATION: Schedule of Geographic Operations (Details) - USD ($)	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Sep. 30, 2018
Net Revenue	$ 365,956	$ 390,653	$ 719,364	$ 747,532
Property and equipment, net	1,726,287		1,726,287		$ 674,393
JAPAN
Property and equipment, net	8,640		8,640		7,864
South Korea
Property and equipment, net	539,834		539,834		157,818
Total
Property and equipment, net	$ 1,726,287		$ 1,726,287		$ 674,393

3. RELATED PARTY TRANSACTIONS (

3. RELATED PARTY TRANSACTIONS (Details) - USD ($)	6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Sep. 30, 2018
Lessee, Operating Lease, Liability, Payments, Due	$ 1,408
Sales or Purchase Transaction 1
Sales-type Lease, Revenue	2,628	$ 2,805
Accounts Receivable, after Allowance for Credit Loss	271		$ 222
Sales or Purchase Transaction 2
Proceeds from leasing employee	0
Sales or Purchase Transaction 3
Accounts Receivable, after Allowance for Credit Loss	$ 34,568

4. COMMON STOCK (Details)

4. COMMON STOCK (Details)	6 Months Ended
	Mar. 31, 2019USD ($)$ / sharesshares
Stock Transaction 1
Sale of Stock, Description of Transaction	Company sold 392,283 shares of common stock
Shares, Issued | shares	392,283
Sale of Stock, Price Per Share | $ / shares	$ 4.39
Stock Issued | $	$ 1,723,009
Stock Transaction 2
Sale of Stock, Description of Transaction	Company issued 17,884 shares
Shares, Issued | shares	17,884
Gain (loss) on settlement of payables | $	$ (91,684)
Stock Transaction 3
Shares, Issued | shares	150,000
Stock Issued | $	$ 37,500

5. STOCK OPTIONS_ Schedule of_2

5. STOCK OPTIONS: Schedule of Stock Option Activity (Details) - USD ($)	Mar. 31, 2019	Sep. 30, 2018	Mar. 31, 2019
Details
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance			3,942,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance			$ 0.78
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	8 years 6 months	8 years 10 months 24 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value			$ 4,407,160
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			0
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price			$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period			0
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price			$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period			0
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price			$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period			0
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price			$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance	3,942,000	3,942,000	3,942,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance	$ 0.78	$ 0.78	$ 0.78
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value	$ 22,540,360	$ 4,407,160	$ 22,540,360
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	632,000		632,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price	$ 0.54		$ 0.54
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term			8 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value	$ 3,768,160		$ 3,768,160

5. STOCK OPTIONS (Details)

5. STOCK OPTIONS (Details) - USD ($)	6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Details
Option expense	$ 2,271,493	$ 249,509

5. STOCK OPTIONS_ Schedule of_3

5. STOCK OPTIONS: Schedule of Company's unvested shares (Details)	6 Months Ended
	Mar. 31, 2019shares
Details
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares, Beginning Balance	3,310,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Number of Shares, Period Increase (Decrease)	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares, Ending Balance	3,310,000

6. SUBSEQUENT EVENTS (Details)

6. SUBSEQUENT EVENTS (Details)	6 Months Ended
	Mar. 31, 2019USD ($)$ / sharesshares
Event 1
Subsequent Event, Date	Apr. 23, 2019
Subsequent Event, Description	we entered into the “Third Amendment to Lease” with our current landlord in Vista California
Event 2
Subsequent Event, Date	Apr. 15, 2019
Subsequent Event, Description	we sold 20,000 shares for $5.46 per share for a total of $109,200
Sale of Stock, Transaction Date	Apr. 15, 2019
Sale of Stock, Description of Transaction	we sold 20,000 shares
Shares, Issued | shares	20,000
Sale of Stock, Price Per Share | $ / shares	$ 5.46
Stock Issued | $	$ 109,200
Event 3
Subsequent Event, Date	May 7, 2019
Subsequent Event, Description	we entered into a lease of 16,603 square-foot facility in Plano, Texas