Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2020 | Aug. 03, 2020 | |
Details | ||
Registrant CIK | 0001527613 | |
Fiscal Year End | --09-30 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 000-55157 | |
Entity Registrant Name | NUZEE, INC. | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 38-3849791 | |
Entity Address, Address Line One | 1700 Capital Avenue | |
Entity Address, Address Line Two | Suite 100 | |
Entity Address, City or Town | Plano | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75074 | |
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 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 14,557,755 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Jun. 30, 2020 | Sep. 30, 2019 |
Current assets: | ||
Cash | $ 5,215,809 | $ 1,326,040 |
Accounts receivable, net | 67,455 | 540,310 |
Accounts receivable - Related party | 118 | 0 |
Inventories, net | 274,975 | 500,986 |
Deferred offering costs | 0 | 225,089 |
Other current assets | 269,793 | 147,367 |
Other current assets - Related party | 0 | 460 |
Total current assets | 5,828,150 | 2,740,252 |
Property and equipment, net | 1,736,432 | 1,875,591 |
Other assets: | ||
Right-of-use asset - operating lease | 645,882 | 0 |
Right-of-use asset - finance lease | 112,050 | 0 |
Investment | 160,000 | 0 |
Other asset | 84,028 | 634,701 |
Total other assets | 1,001,960 | 634,701 |
Total assets | 8,566,542 | 5,250,544 |
Current liabilities: | ||
Accounts payable | 22,311 | 341,095 |
Current portion of long-term loan payable | 101,345 | 101,148 |
Accrued expenses and other current liabilities | 803,645 | 531,861 |
Current portion of lease liability - operating lease | 216,454 | 0 |
Current portion of lease liability - finance lease | 20,924 | 0 |
Other current liabilities - Related party | 2,108 | 2,812 |
Total current liabilities | 1,166,787 | 976,916 |
Non-current liabilities: | ||
Lease liability - operating lease, net of current portion | 435,420 | 0 |
Lease liability - finance lease, net of current portion | 84,058 | 0 |
Loan payable - long term, net of current portion | 80,803 | 156,816 |
Other noncurrent liabilities | 8,894 | 1,750 |
Total non-current liabilities | 609,175 | 158,566 |
Total liabilities | 1,775,962 | 1,135,482 |
Stockholders' equity: | ||
Common Stock, Value | 145 | 137 |
Additional paid in capital | 40,046,531 | 28,898,344 |
Accumulated deficit | (33,249,588) | (24,795,687) |
Accumulated other comprehensive loss | (150,145) | (90,635) |
Total NuZee, Inc. stockholders' equity | 6,646,943 | 4,012,159 |
Noncontrolling interest | 143,637 | 102,903 |
Total stockholders' equity | 6,790,580 | 4,115,062 |
Total liabilities and stockholders' equity | $ 8,566,542 | $ 5,250,544 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) - Parenthetical - $ / shares | Jun. 30, 2020 | Sep. 30, 2019 |
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 | 14,429,104 | 13,617,366 |
Common Stock, Shares, Outstanding | 14,429,104 | 13,617,366 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Details | ||||
Revenues | $ 191,962 | $ 585,202 | $ 1,131,562 | $ 1,304,566 |
Cost of sales | 331,039 | 469,045 | 1,250,904 | 923,903 |
Gross Profit (Loss) | (139,077) | 116,157 | (119,342) | 380,663 |
Operating expenses | 2,378,947 | 9,514,003 | 8,342,412 | 13,668,299 |
Loss from operations | (2,518,024) | (9,397,846) | (8,461,754) | (13,287,636) |
Other income | 25,523 | 10,158 | 28,504 | 14,424 |
Other expense | (42,113) | (4,768) | (44,712) | (140,805) |
Interest expense | (6,448) | (1,471) | (16,573) | (2,679) |
Net loss | (2,541,062) | (9,393,927) | (8,494,535) | (13,416,696) |
Net income (loss) attributable to noncontrolling interest | 1,356 | 12,576 | (40,634) | 19,501 |
Net loss attributable to NuZee, Inc. | $ (2,542,418) | $ (9,406,503) | $ (8,453,901) | $ (13,436,197) |
Basic and diluted loss per common share | $ (0.18) | $ (0.70) | $ (0.62) | $ (1.01) |
Basic and diluted weighted average number of common stock outstanding | 13,782,950 | 13,412,541 | 13,724,590 | 13,353,005 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Net loss | $ (2,541,062) | $ (9,393,927) | $ (8,494,535) | $ (13,416,696) |
Foreign currency translation | 10,739 | (62,023) | 21,858 | (921) |
Other Comprehensive Income (Loss), Net of Tax | 10,739 | (62,023) | 21,858 | (921) |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (2,530,323) | (9,455,950) | (8,472,677) | (13,417,617) |
Parent | ||||
Net loss | (2,542,418) | (9,406,503) | (8,453,901) | (13,436,197) |
Foreign currency translation | 10,209 | (43,416) | (59,510) | (35,035) |
Other Comprehensive Income (Loss), Net of Tax | 10,209 | (43,416) | (59,510) | (35,035) |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (2,532,209) | (9,449,919) | (8,513,411) | (13,471,232) |
Noncontrolling Interest | ||||
Net loss | 1,356 | 12,576 | (40,634) | 19,501 |
Foreign currency translation | 530 | (18,607) | 81,368 | 34,114 |
Other Comprehensive Income (Loss), Net of Tax | 530 | (18,607) | 81,368 | 34,114 |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 1,886 | $ (6,031) | $ 40,734 | $ 53,615 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (Unaudited) - USD ($) | Common Stock | Additional Paid-in Capital | Retained Earnings | Noncontrolling Interest | AOCI Attributable to Parent | Total |
Equity Balance, Starting at Sep. 30, 2018 | $ 132 | $ 14,957,491 | $ (12,607,722) | $ 93,131 | $ (30,967) | $ 2,412,065 |
Shares Outstanding, Starting at Sep. 30, 2018 | 13,194,591 | |||||
Stock Issued During Period, Value, New Issues | $ 1 | 1,494,804 | 0 | 0 | 0 | 1,494,805 |
Stock Issued During Period, Shares, New Issues | 116,891 | |||||
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 | |||||
Stock Issued During Period, Value, Other | $ 0 | 107,478 | 0 | 0 | 0 | 107,478 |
Stock Issued During Period, Shares, Other | 5,118 | |||||
NuZee foreign currency gain (loss) | $ 0 | 0 | 0 | 4,855 | 11,328 | 16,183 |
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | $ 0 | 0 | (2,576,692) | (11,714) | 0 | (2,588,406) |
Shares Outstanding, Ending at Dec. 31, 2018 | 13,316,600 | |||||
Equity Balance, Ending at Dec. 31, 2018 | $ 133 | 18,349,524 | (15,184,414) | 86,272 | (19,639) | 3,231,876 |
Equity Balance, Starting at Sep. 30, 2018 | $ 132 | 14,957,491 | (12,607,722) | 93,131 | (30,967) | 2,412,065 |
Shares Outstanding, Starting at Sep. 30, 2018 | 13,194,591 | |||||
Other Comprehensive Gain (Loss) | 34,114 | (921) | ||||
Stock issuance costs | (27,628) | |||||
Shares Outstanding, Ending at Jun. 30, 2019 | 13,587,580 | |||||
Equity Balance, Ending at Jun. 30, 2019 | $ 136 | 31,035,225 | (26,043,919) | 146,746 | (66,002) | 5,072,186 |
Equity Balance, Starting at Dec. 31, 2018 | $ 133 | 18,349,524 | (15,184,414) | 86,272 | (19,639) | 3,231,876 |
Shares Outstanding, Starting at Dec. 31, 2018 | 13,316,600 | |||||
Stock Issued During Period, Value, New Issues | $ 0 | 228,204 | 0 | 0 | 0 | 228,204 |
Stock Issued During Period, Shares, New Issues | 13,870 | |||||
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 | |||||
Stock Issued During Period, Value, Other | $ 0 | 16,445 | 0 | 0 | 0 | 16,445 |
Stock Issued During Period, Shares, Other | 843 | |||||
NuZee foreign currency gain (loss) | $ 0 | 0 | 0 | 47,866 | (2,947) | 44,919 |
Stock issuance costs | 0 | (27,628) | 0 | 0 | 0 | (27,628) |
Stock Issued During Period, Value, Issued for Services | $ 1 | 37,499 | 0 | 0 | 0 | 37,500 |
Stock Issued During Period, Shares, Issued for Services | 50,000 | |||||
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | $ 0 | 0 | (1,453,002) | 18,639 | 0 | (1,434,363) |
Shares Outstanding, Ending at Mar. 31, 2019 | 13,381,313 | |||||
Equity Balance, Ending at Mar. 31, 2019 | $ 134 | 19,085,786 | (16,637,416) | 152,777 | (22,586) | 2,578,695 |
Stock Issued During Period, Value, New Issues | $ 2 | 3,612,181 | 0 | 0 | 0 | 3,612,183 |
Stock Issued During Period, Shares, New Issues | 206,267 | |||||
Shares Granted, Value, Share-based Payment Arrangement, after Forfeiture | $ 0 | 8,337,258 | 0 | 0 | 0 | 8,337,258 |
Other Comprehensive Gain (Loss) | (18,607) | (62,023) | ||||
NuZee foreign currency gain (loss) | 0 | 0 | 0 | (18,607) | (43,416) | (62,023) |
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | $ 0 | 0 | (9,406,503) | 12,576 | 0 | (9,393,927) |
Shares Outstanding, Ending at Jun. 30, 2019 | 13,587,580 | |||||
Equity Balance, Ending at Jun. 30, 2019 | $ 136 | 31,035,225 | (26,043,919) | 146,746 | (66,002) | 5,072,186 |
Equity Balance, Starting at Sep. 30, 2019 | $ 137 | 28,898,344 | (24,795,687) | 102,903 | (90,635) | 4,115,062 |
Shares Outstanding, Starting at Sep. 30, 2019 | 13,617,366 | |||||
Stock Issued During Period, Value, New Issues | $ 1 | 1,994,522 | 0 | 0 | 0 | 1,994,523 |
Stock Issued During Period, Shares, New Issues | 111,738 | |||||
Shares Granted, Value, Share-based Payment Arrangement, after Forfeiture | $ 0 | 2,220,861 | 0 | 0 | 0 | 2,220,861 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0 | |||||
Other Comprehensive Gain (Loss) | $ 0 | 0 | 0 | 5,642 | 27,230 | 32,872 |
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | $ 0 | 0 | (3,421,232) | (11,021) | 0 | (3,432,253) |
Shares Outstanding, Ending at Dec. 31, 2019 | 13,729,104 | |||||
Equity Balance, Ending at Dec. 31, 2019 | $ 138 | 33,113,727 | (28,216,919) | 97,524 | (63,405) | 4,931,065 |
Equity Balance, Starting at Sep. 30, 2019 | $ 137 | 28,898,344 | (24,795,687) | 102,903 | (90,635) | 4,115,062 |
Shares Outstanding, Starting at Sep. 30, 2019 | 13,617,366 | |||||
Other Comprehensive Gain (Loss) | 81,368 | 21,858 | ||||
Stock issuance costs | 0 | |||||
Shares Outstanding, Ending at Jun. 30, 2020 | 14,429,104 | |||||
Equity Balance, Ending at Jun. 30, 2020 | $ 145 | 40,046,531 | (33,249,588) | 143,637 | (150,145) | 6,790,580 |
Equity Balance, Starting at Dec. 31, 2019 | $ 138 | 33,113,727 | (28,216,919) | 97,524 | (63,405) | 4,931,065 |
Shares Outstanding, Starting at Dec. 31, 2019 | 13,729,104 | |||||
Shares Granted, Value, Share-based Payment Arrangement, after Forfeiture | $ 0 | 962,490 | 0 | 0 | 0 | 962,490 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0 | |||||
Other Comprehensive Gain (Loss) | $ 0 | 0 | 0 | 75,196 | (96,949) | (21,753) |
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | $ 0 | 0 | (2,490,251) | (30,969) | 0 | (2,521,220) |
Shares Outstanding, Ending at Mar. 31, 2020 | 13,729,104 | |||||
Equity Balance, Ending at Mar. 31, 2020 | $ 138 | 34,076,217 | (30,707,170) | 141,751 | (160,354) | 3,350,582 |
Stock Issued During Period, Value, New Issues | $ 7 | 4,648,167 | 0 | 0 | 0 | 4,648,174 |
Stock Issued During Period, Shares, New Issues | 700,000 | |||||
Shares Granted, Value, Share-based Payment Arrangement, after Forfeiture | $ 0 | 1,322,147 | 0 | 0 | 0 | 1,322,147 |
Other Comprehensive Gain (Loss) | 0 | 0 | 0 | 530 | 10,209 | 10,739 |
Net Income (Loss), Including Portion Attributable to Nonredeemable Noncontrolling Interest | $ 0 | 0 | (2,542,418) | 1,356 | 0 | (2,541,062) |
Shares Outstanding, Ending at Jun. 30, 2020 | 14,429,104 | |||||
Equity Balance, Ending at Jun. 30, 2020 | $ 145 | $ 40,046,531 | $ (33,249,588) | $ 143,637 | $ (150,145) | $ 6,790,580 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Operating activities: | ||
Net loss | $ (8,494,535) | $ (13,416,696) |
Adjustments to reconcile net loss to net cash used by operating activities: | ||
Depreciation and Amortization | 310,393 | 165,752 |
Noncash lease expense | 101,505 | 0 |
Option expense | 4,505,498 | 10,608,751 |
Inventory impairment | 74,944 | 27,983 |
Allowance for sales return | 3,835 | 22,510 |
Loss on sale of assets | 43,012 | 6,096 |
Loss on settlement of payable | 0 | 91,684 |
Common stock issued for services | 0 | 37,500 |
Change in operating assets and liabilities: | ||
Accounts receivable | 469,020 | (235,860) |
Accounts receivable - Related party | (118) | 105 |
Inventories | 151,067 | (182,962) |
Other current assets | (122,426) | (144,934) |
Increase (Decrease) in Contract with Customer, Asset | 460 | (681) |
Other asset | (41,767) | (649) |
Accounts payable | (199,763) | 116,005 |
Other current liabilities - related party | (704) | (1,714) |
Other noncurrent liabilities | 7,144 | (6,317) |
Operating lease liabilities | (83,063) | 0 |
Accrued expense and other current liabilities | 271,784 | (36,142) |
Net cash used by operating activities | (3,003,714) | (2,949,569) |
Investing activities: | ||
Purchase of equipment | (16,306) | (1,243,933) |
Proceeds from sales of equipment | 110,000 | 23,600 |
Net cash provided (used) in investing activities | 93,694 | (1,220,333) |
Financing activities: | ||
Repayment of finance lease | (14,039) | 0 |
Repayment of loans | (75,816) | (32,580) |
Borrowing of loans | 0 | 147,081 |
Stock issuance costs | 0 | (27,628) |
Proceeds from issuance of common stock | 6,867,786 | 5,335,192 |
Net cash provided by financing activities | 6,777,931 | 5,422,065 |
Effect of foreign exchange on cash and cash equivalents | 21,858 | 2,601 |
Net change in cash | 3,889,769 | 1,254,764 |
Cash and Cash Equivalents, at Carrying Value, Beginning Balance | 1,326,040 | 1,806,666 |
Cash and Cash Equivalents, at Carrying Value, Ending Balance | 5,215,809 | 3,061,430 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 16,573 | 183 |
Cash paid for taxes | 800 | 0 |
Noncash investing and financing activities: | ||
Stock issued to settle payables | 0 | 32,239 |
Equipment purchased through debt | 0 | 38,127 |
Equipment purchased on credit | 0 | 218,140 |
Recognition of right-of-use asset and lease liability upon adoption of ASU 2016-02 | 517,263 | 0 |
Recognition of right-of-use asset and lease liability during the period | 217,674 | 0 |
Finance lease of equipment to pay off accounts payable | 124,500 | 0 |
Investment in NLA | $ 160,000 | $ 0 |
1. BASIS OF PRESENTATION AND SU
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Jun. 30, 2020 | |
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. (together with its subsidiaries, referred to herein as the "Company", "we" or "NuZee") 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 (the "SEC"), 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/A for the year ended September 30, 2019 as filed with the SEC on December 31, 2019. 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. Reclassification Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements. These reclassifications had no effect on the previously reported net loss. 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, its wholly owned subsidiaries 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. The Company has three international subsidiaries in NuZee KOREA Ltd. ("NuZee KR"), NuZee JAPAN Co., Ltd ("NuZee JP") and NuZee Investment Co., Ltd. ("NuZee INV"). NuZee KR and NuZee INV are wholly owned subsidiaries of the Company, and NuZee JP is a majority owned subsidiary of the Company. Stock Split On October 28, 2019, we completed a l-for-3 reverse stock split, which became effective on November 12, 2019. All share and per share information included in these financial statements and notes thereto give effect to the reverse stock split. 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. As of June 30, 2020 and June 30, 2019, the total number of common stock equivalents was 1,725,000 and 1,787,333, respectively, comprised entirely of stock options. The Company incurred a net loss for the three and nine months ended June 30, 2020 and 2019, 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 on July 15, 2011, 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 June 30, 2020, the Company had cash of $5,215,809. The Company has not attained profitable operations since inception. The accompanying consolidated financial statements have been prepared in accordance with GAAP, which contemplates continuation of the Company as a going concern. The Company has had limited revenues, recurring losses, and an accumulated deficit and is dependent on sales of its equity, including to 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 its majority shareholder 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 nine months ended June 30, 2020 and 2019, revenue was primarily derived from major customers disclosed below. Nine months ended June 30, 2020: Customer Name Sales Amount % of Total Revenue Accounts Receivable Amount % of Total Accounts Receivable Customer K $ 284,099 25% $ - 0% Customer WP $ 259,925 23% $7,767 11% Customer J $ 188,574 17% $175 0% Nine months ended June 30, 2019: Customer Name Sales Amount % of Total Revenue Accounts Receivable Amount % of Total Accounts Receivable Customer J $333,971 26 % $ - 0% Customer WP $254,765 20% $ 153,344 28% Customer C $153,167 12% $ 55,245 10% Lease 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 at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous GAAP. The Company implemented ASU No. 2016-02 on October 1, 2019. The Company elected the practical expedient under ASU 2018-11 “Leases: Targeted Improvements” which allows the Company to apply the transition provision for Topic 842 at the Company’s adoption date instead of at the earlies comparative period presented in the financial statements. Therefore, the Company recognized and measured leases existing at October 1, 2019 but without retrospective application. In addition, the Company elected the optional practical expedient permitted under the transition guidance which allows the Company to carry forward the historical accounting treatment for existing lease upon adoption. No impact was recorded to the income statement or beginning retained earnings for Topic 842. Beginning October 1, 2019, operating ROU assets and operating lease liabilities are recognized based on the present value of lease payments, including annual rent increases, over the lease term at commencement date. Operating leases in effect prior to October 1, 2019 were recognized at the present value of the remaining payments on the remaining lease term as of October 1, 2019. Because the lease in question did not have an implicit rate of return, we used our incremental secured borrowing rate based on lease term information available as of the adoption date or lease commencement date in determining the present value of lease payments. The incremental borrowing rate on ROU Asset lease is 5%. The Company does a quarterly analysis of leases to determine if there are any operating leases that require recognition under ASC 842. As of October 1, 2019, the Company had one significant long-term operating lease for office and manufacturing space in Plano, Texas. The leased property in Plano, Texas, has a remaining lease term through June of 2024. The lease has an option to extend beyond the stated termination date, but exercise of this option is not probable. The Company did not apply the recognition requirements of ASC 842 to operating leases with a remaining lease term of 12 months or less. The impact of ASU No. 2016-02 (“Leases (Topic 842)” on our consolidated balance sheet beginning October 1, 2019, through the recognition of ROU assets and lease liabilities for operating leases are as follows: October 1, 2019 ROU Assets $517,263 Lease Liability $517,263 During the June 30, 2020 analysis of leases, we determined to renew the office and manufacturing space in Vista, CA through January 31, 2022, which was previously scheduled to be vacated at June 30, 2020. Additionally, the Korean office and manufacturing space lease was extended through June 2022 and an apartment lease was signed through June 2022. Accordingly, we have added ROU assets and lease liabilities related to those leases at June 30, 2020. The direct-leased property in Vista, California has a remaining lease term through January of 2022. The leased properties in both Korea and Vista, California have options to extend beyond the stated termination date, but exercise of these options are not probable. The sub-leased property in Vista, California, is leased month-to-month and has been calculated as a ROU Asset co-terminous with the direct-leased property. As of June 30, 2020, our operating leases had a weighted average remaining lease term of 3.1 years. Other information related to our operating leases is as follows: ROU Asset – October 1, 2019 $ 517,263 ROU Asset added during the period 217,674 Amortization during the period (89,055) ROU Asset – June 30, 2020 $ 645,882 Lease Liability – October 1, 2019 $ 517,263 Lease Liability added during the period 217,674 Amortization during the period (83,063) Lease Liability – June 30, 2020 $ 651,874 Lease Liability – Short-Term $ 216,454 Lease Liability – Long-Term 435,420 Lease Liability – Total $ 651,874 During the nine months ended June 30, 2020, we had the following cash and non-cash activities associated with our leases: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 103,298 Operating cash flows from finance leases $ 10,794 Financing cash flows from finance leases $ 14,039 Non-cash transactions: Recognition of ROU asset and lease liability of operating lease $ 517,263 Additions to ROU assets obtained from: New operating lease: $ 217,674 New finance lease: $ 124,500 The table below reconciles the fixed component of the undiscounted cash flows for each of the first five years and the total remaining years to the lease liabilities recorded on the Consolidated Balance Sheet as of June 30, 2020: Amounts due within 12 months of June 30, 2021 $ 243,941 2022 206,711 2023 126,091 2024 129,873 2025 - Total Minimum Lease Payments 706,616 Less Effect of Discounting 54,742 Present Value of Future Minimum Lease Payments 651,874 Less Current Portion of Operating Lease Obligations 216,454 Long-Term Operating Lease Obligations $ 435,420 NuZee JP is the lessee of certain equipment under a finance lease extending through January 2021. The asset and liability under the finance 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 $4,536 as of June 30, 2020. The finance lease liability is included in other current liabilities on the consolidated balance sheets. Future minimum lease payments under finance lease obligations as of June 30, 2020 for each of the remaining fiscal years are as follows: 2020 $2,268 2021 $2,268 Total Minimum Lease Payments $4,536 On October 9, 2019, the Company entered into a lease agreement with Alliance Funding Group which provided for a sale lease back on certain packing equipment. The terms of this agreement require us to pay $2,987 per month for the next 60 months. As part of this agreement, Alliance Funding Group provided our equipment supplier with $124,540 for the purchase of this equipment. This transaction was accounted for as a financing lease. The following summarizes ROU assets under finance leases at June 30, 2020: ROU asset-finance lease at October 9, 2019 $ 124,500 Amortization (12,450) ROU asset-finance lease at June 30, 2020 $ 112,050 The table below summarizes future minimum finance lease payments at June 30, 2020 for the 12 months ended June 30 of each year indicated: 2021 $ 33,113 2022 33,113 2023 33,113 2024 33,113 2025 2,759 Total Minimum Lease Payments 135,211 Amount representing interest (30,229) Present Value of Minimum Lease Payments 104,982 Current Portion of Finance Lease Obligations 20,924 Finance Lease Obligations, Less Current Portion $ 84,058 The Company leases office space with terms ranging from month to month to 61 months. Rent expense included in general and administrative expense for the nine months ended June 30, 2020 and 2019 was $251,207 and $99,526, respectively. Future minimum rents for the office space leased as of June 30, 2020, for each of the remaining fiscal years are as follows: 2020 $ 69,264 2021 $ 278,530 2022 $ 208,885 2023 $ 160,149 2024 $ 124,999 Total Minimum Lease Payments $ 841,827 Loans On June 30, 2016, NuZee JP entered into a loan agreement with Tono Shinyo Kinko Bank. NuZee JP 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 June 30, 2020 amounted to $27,835. On January 27, 2017, NuZee JP entered into a loan agreement with Nihon Seisaku Kouko. NuZee JP borrowed 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 June 30, 2020 amounted to $30,060. On April 1, 2019, NuZee purchased a delivery van from Ford Motor Credit for $41,627. The Company paid $3,500 as a down payment and financed $38,127 for 60 months at a rate of 2.9%. The loan is secured by the van. The outstanding balance on the loan at June 30, 2020 amounted to $29,757. On February 15, 2019 NuZee KR entered into equipment financing for production equipment with ShinHan Bank for $60,563. In June 28, 2019 NuZee KR purchased additional equipment and increased the loan with ShinHan Bank by $86,518. The loan is secured by our production equipment at NuZee KR. The financing bears a term of 36 months at a rate of 4.33% per annum. Principal payments began in July of 2019. The outstanding balance on this loan at June 30, 2020 amounts to $94,496. The loan payments required for the next five remaining fiscal years are as follows: Nihon Ford Tono Shinyo Seisaku Motor ShinHan Kinko Bank Kouko Credit Bank Total 2020 $ 6,959 $ 4,704 $ 1,841 $ 11,812 2021 20,876 14,112 5,605 35,436 Total Current Portion $ 27,835 $ 18,816 $ 7,446 $ 47,248 $ 101,345 2021 $ 4,704 $ 1,895 $ 11,812 2022 6,540 7,720 35,436 2023 7,947 2024 4,749 Total Long Term Portion $ 11,244 $ 22,311 $ 47,248 $ 80,803 Grand Total $ 27,835 $ 30,060 $ 29,757 $ 94,496 $ 182,148 Revenue Recognition We determine revenue recognition through the following steps in accordance with FASB Accounting Standards Update No. 2014-09 (Topic 606) "Revenue from Contracts with Customers", which we adopted as of October 1, 2018 on a modified retrospective basis: · · · · · Revenue is recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Foreign Currency Translation The financial position and results of operations of each of the Company's foreign subsidiary are measured using the foreign subsidiary's local currency as the functional currency. Revenues and expenses of each such subsidiary have 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 $(59,510) and $(35,035) for the nine months ended June 30, 2020 and 2019, 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. 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 June 30, 2020 and September 30, 2019, the carrying value of inventory of $274,975 and $500,986 respectively, reflected on the consolidated balance sheets is net of this adjustment. June 30, 2020 September 30, 2019 Raw materials $ 15,585 $ 327,985 Finished goods 259,390 173,001 Less – Inventory reserve - - Total $ 274,975 $ 500,986 Recent Accounting Pronouncements In June 2018, the FASB issued ASU 2018-07 which simplifies several aspects of the accounting for non-employee transactions by stipulating that the existing accounting guidance for share-based payments to employees (accounted for under ASC Topic 718, "Compensation-Stock Compensation") will also apply to non-employee share-based transactions (accounted for under ASC Topic 505, "Equity"). ASU 2018-07 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company implemented ASU 2018-07 on October 1, 2019 and the impact of the implementation is not material to the 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 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 implemented ASU 2017-11 on October 1, 2019, and the impact of the implementation is not material to the financial statements. Joint Venture On January 9, 2020, a joint venture agreement was signed between Industrial Marino, S.A. de C.V. (50%) and the Company (50%) forming NuZee LATIN AMERICA, S.A. de C.V. ("NLA"). NLA was formed pursuant to the laws of Mexico, with corporate domicile in Mazatlan, Mexico. As part of the capitalization of NLA, the Company contributed two machines to the joint venture. These machines had an aggregate carrying cost of $313,012. The Company received $110,000 in cash for this contribution and recorded an investment in NLA of $160,000 and a loss of $43,012 on the contribution of the machines to NLA. The Company will account for NLA using the equity method of accounting. As of June 30, 2020, the only activity in NLA was the contribution of two machines as described above. |
2. GEOGRAPHIC CONCENTRATION
2. GEOGRAPHIC CONCENTRATION | 9 Months Ended |
Jun. 30, 2020 | |
Notes | |
2. GEOGRAPHIC CONCENTRATION | 2. GEOGRAPHIC CONCENTRATION The Company is organized based on fundamentally one geographic segment although it does sell its products on a world-wide basis. Information about the Company’s geographic operations are as follows: Geographic Concentrations Nine Months Ended Nine Months Ended June 30, 2020 June 30, 2019 Net Revenue: North America $ 756,000 $ 715,702 Japan 258,526 549,431 South Korea 117,036 39,433 $ 1,131,562 $ 1,304,566 Property and equipment, net: As of June 30, 2020 As of September 30, 2019 North America $ 1,459,948 $ 1,471,859 Japan 3,424 6,329 South Korea 273,060 397,403 $ 1,736,432 $ 1,875,591 |
3. RELATED PARTY TRANSACTIONS
3. RELATED PARTY TRANSACTIONS | 9 Months Ended |
Jun. 30, 2020 | |
Notes | |
3. RELATED PARTY TRANSACTIONS | 3. RELATED PARTY TRANSACTIONS Sales, Purchases and Operating Expenses For the nine months ended June 30, 2020 and 2019, NuZee JP sold their products to Eguchi Holdings Co., Ltd ("EHCL"), and the sales to them totaled approximately $3,154 and $3,174 respectively. The corresponding accounts receivable balance from EHCL was $118 and $(106) as of June 30, 2020 and September 30, 2019, respectively. EHCL is controlled by Mr. Katsuyoshi Eguchi, who beneficially owns in excess of 5% of NuZee’s outstanding common stock and serves as the chief executive officer of NuZee JP. Rent During October 2016, NuZee JP entered into a rental agreement of an office space with NuZee Co., Ltd., an entity 100% beneficially owned by our chief executive officer. The Company pays $1,169 per month for the office on the last day of each month on behalf of NuZee JP. There is no set expiration date on the agreement. As of June 30, 2020, and September 30, 2019, NuZee JP had a payable balance to NuZee Co., Ltd. of $1,503 and $1,552, respectively. During September 2016, the Company entered into a rental agreement of an office space and warehouse with EHCL. The Company pays $609 per month for the office and the warehouse on the last day of each month. The lease expired on December 31, 2019, and is expected to continue on a month-to-month basis. At June 30, 2020 and September 30, 2019, the payable balance under this lease was $605 and $1,154, respectively. During February 2015, the Company entered into a rental agreement of a warehouse with Eguchi Steel Co.,Ltd ("ESCL"). The Company pays $449 per month for the warehouse on the last day of each month. There is no set expiration date on the agreement. |
4. COMMON STOCK
4. COMMON STOCK | 9 Months Ended |
Jun. 30, 2020 | |
Notes | |
4. COMMON STOCK | 4. COMMON STOCK During the nine months ended June 30, 2020, the Company sold (i) 111,738 shares of common stock at a weighted average price of $17.85 per share, for an aggregate purchase price of $1,994,523 pursuant to private offerings of common stock and (ii) 700,000 shares of common stock at a price of $9.00 per share for an aggregate purchase price of $6,300,000 pursuant to the Company’s underwritten public offering of common stock. After deducting underwriting commission of $500,837, and expenses paid by the Company that were directly attributable to the registered offering of $1,150,989, including $225,089 that was paid in the year ended September 30, 2019, the Company received net proceeds from the registered public offering of common stock of $4,648,174. All discounts, fees, and expenses are treated as a reduction of the Company’s additional paid-in capital balance. See Note 6 – Subsequent Events for more information. |
5. STOCK OPTIONS AND WARRANTS
5. STOCK OPTIONS AND WARRANTS | 9 Months Ended |
Jun. 30, 2020 | |
Notes | |
5. STOCK OPTIONS AND WARRANTS | 5. STOCK OPTIONS AND WARRANTS The following table summarizes stock option activity for nine months ended June 30, 2020: Weighted Weighted Average Average Number of Exercise Remaining Aggregate Shares Price Contractual Life (years) Intrinsic Value Outstanding at September 30, 2019 1,811,667 $ 6.86 8.4 $ 33,705,960 Granted 23,333 1.53 Exercised - - Expired - - Forfeited (110,000) 18.14 1,725,000 $ 6.07 7.5 10,243,687 Exercisable at June 30, 2020 663,750 $ 6.83 7.4 $ 3,802,116 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 $4,505,498 for the nine months ended June 30, 2020. Unamortized option expense as of June 30, 2020, for all options outstanding amounted to $4,566,831. These costs are expected to be recognized over a weighted- average period of 2.1 years. The Company recognized stock option expenses of $10,608,751 for the nine months ended June 30, 2019. On June 23, 2020, as part of our agreement with Benchmark Company, LLC the underwriter of the Company’s registered public offering of common stock, we issued 40,250 warrants to purchase our common stock at an exercise price of $9.00 a share. These warrants are exercisable beginning on December 23, 2020 and expire on June 18, 2025. A summary of the status of the Company’s nonvested options as of June 30, 2020, is presented below: Nonvested options Number of Nonvested Shares Nonvested shares at September 30, 2019 1,355,000 Granted 23,333 Exercised - Forfeited (110,000) Vested (207,083) Nonvested shares at June 30, 2020 1,061,250 The following table summarizes warrant activity for the nine months ended June 30, 2020: Weighted Weighted Average Average Number of Exercise Remaining Aggregate Warrants Price Contractual Life (years) Intrinsic Value Outstanding at September 30, 2019 - $ - $ - Granted 40,250 9.00 Exercised - - Expired - - Forfeited - - Outstanding at June 30, 2020 40,250 $ 9.00 5.0 36,012 Exercisable at June 30, 2020 - $ - $ - |
6. SUBSEQUENT EVENT
6. SUBSEQUENT EVENT | 9 Months Ended |
Jun. 30, 2020 | |
Notes | |
6. SUBSEQUENT EVENT | 6. SUBSEQUENT EVENT Exercise of over-allotment option On July 21, 2020, the underwriters in the Company’s registered public offering of common stock exercised their over-allotment option, resulting in the issuance of an additional 105,000 shares at $9.00 per share. As part of this exercise, the Company received net proceeds of $878,850 (net of underwriting commissions). Exercise of options On July 31, 2020, 23,334 shares were issued upon the exercise of stock options. As part of this exercise, the Company received $35,700 in proceeds. |
1. BASIS OF PRESENTATION AND _2
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Basis of Accounting, Policy (Policies) | 9 Months Ended |
Jun. 30, 2020 | |
Policies | |
Basis of Accounting, Policy | The accompanying unaudited interim consolidated financial statements of NuZee, Inc. (together with its subsidiaries, referred to herein as the "Company", "we" or "NuZee") 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 (the "SEC"), 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/A for the year ended September 30, 2019 as filed with the SEC on December 31, 2019. 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: Reclassification (Policies) | 9 Months Ended |
Jun. 30, 2020 | |
Policies | |
Reclassification | Reclassification Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements. These reclassifications had no effect on the previously reported net loss. |
1. BASIS OF PRESENTATION AND _4
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Principles of Consolidation (Policies) | 9 Months Ended |
Jun. 30, 2020 | |
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, its wholly owned subsidiaries 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. The Company has three international subsidiaries in NuZee KOREA Ltd. ("NuZee KR"), NuZee JAPAN Co., Ltd ("NuZee JP") and NuZee Investment Co., Ltd. ("NuZee INV"). NuZee KR and NuZee INV are wholly owned subsidiaries of the Company, and NuZee JP is a majority owned subsidiary of the Company. |
1. BASIS OF PRESENTATION AND _5
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Stock Split (Policies) | 9 Months Ended |
Jun. 30, 2020 | |
Policies | |
Stock Split | Stock Split On October 28, 2019, we completed a l-for-3 reverse stock split, which became effective on November 12, 2019. All share and per share information included in these financial statements and notes thereto give effect to the reverse stock split. |
1. BASIS OF PRESENTATION AND _6
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Earnings per Share (Policies) | 9 Months Ended |
Jun. 30, 2020 | |
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. As of June 30, 2020 and June 30, 2019, the total number of common stock equivalents was 1,725,000 and 1,787,333, respectively, comprised entirely of stock options. The Company incurred a net loss for the three and nine months ended June 30, 2020 and 2019, 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 _7
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Going Concern and Capital Resources (Policies) | 9 Months Ended |
Jun. 30, 2020 | |
Policies | |
Going Concern and Capital Resources | Going Concern and Capital Resources Since its inception on July 15, 2011, 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 June 30, 2020, the Company had cash of $5,215,809. The Company has not attained profitable operations since inception. The accompanying consolidated financial statements have been prepared in accordance with GAAP, which contemplates continuation of the Company as a going concern. The Company has had limited revenues, recurring losses, and an accumulated deficit and is dependent on sales of its equity, including to 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 its majority shareholder 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 _8
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Major Customers (Policies) | 9 Months Ended |
Jun. 30, 2020 | |
Policies | |
Major Customers | Major Customers In the nine months ended June 30, 2020 and 2019, revenue was primarily derived from major customers disclosed below. Nine months ended June 30, 2020: Customer Name Sales Amount % of Total Revenue Accounts Receivable Amount % of Total Accounts Receivable Customer K $ 284,099 25% $ - 0% Customer WP $ 259,925 23% $7,767 11% Customer J $ 188,574 17% $175 0% Nine months ended June 30, 2019: Customer Name Sales Amount % of Total Revenue Accounts Receivable Amount % of Total Accounts Receivable Customer J $333,971 26 % $ - 0% Customer WP $254,765 20% $ 153,344 28% Customer C $153,167 12% $ 55,245 10% |
1. BASIS OF PRESENTATION AND _9
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Lease (Policies) | 9 Months Ended |
Jun. 30, 2020 | |
Policies | |
Lease | Lease 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 at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous GAAP. The Company implemented ASU No. 2016-02 on October 1, 2019. The Company elected the practical expedient under ASU 2018-11 “Leases: Targeted Improvements” which allows the Company to apply the transition provision for Topic 842 at the Company’s adoption date instead of at the earlies comparative period presented in the financial statements. Therefore, the Company recognized and measured leases existing at October 1, 2019 but without retrospective application. In addition, the Company elected the optional practical expedient permitted under the transition guidance which allows the Company to carry forward the historical accounting treatment for existing lease upon adoption. No impact was recorded to the income statement or beginning retained earnings for Topic 842. Beginning October 1, 2019, operating ROU assets and operating lease liabilities are recognized based on the present value of lease payments, including annual rent increases, over the lease term at commencement date. Operating leases in effect prior to October 1, 2019 were recognized at the present value of the remaining payments on the remaining lease term as of October 1, 2019. Because the lease in question did not have an implicit rate of return, we used our incremental secured borrowing rate based on lease term information available as of the adoption date or lease commencement date in determining the present value of lease payments. The incremental borrowing rate on ROU Asset lease is 5%. The Company does a quarterly analysis of leases to determine if there are any operating leases that require recognition under ASC 842. As of October 1, 2019, the Company had one significant long-term operating lease for office and manufacturing space in Plano, Texas. The leased property in Plano, Texas, has a remaining lease term through June of 2024. The lease has an option to extend beyond the stated termination date, but exercise of this option is not probable. The Company did not apply the recognition requirements of ASC 842 to operating leases with a remaining lease term of 12 months or less. The impact of ASU No. 2016-02 (“Leases (Topic 842)” on our consolidated balance sheet beginning October 1, 2019, through the recognition of ROU assets and lease liabilities for operating leases are as follows: October 1, 2019 ROU Assets $517,263 Lease Liability $517,263 During the June 30, 2020 analysis of leases, we determined to renew the office and manufacturing space in Vista, CA through January 31, 2022, which was previously scheduled to be vacated at June 30, 2020. Additionally, the Korean office and manufacturing space lease was extended through June 2022 and an apartment lease was signed through June 2022. Accordingly, we have added ROU assets and lease liabilities related to those leases at June 30, 2020. The direct-leased property in Vista, California has a remaining lease term through January of 2022. The leased properties in both Korea and Vista, California have options to extend beyond the stated termination date, but exercise of these options are not probable. The sub-leased property in Vista, California, is leased month-to-month and has been calculated as a ROU Asset co-terminous with the direct-leased property. As of June 30, 2020, our operating leases had a weighted average remaining lease term of 3.1 years. Other information related to our operating leases is as follows: ROU Asset – October 1, 2019 $ 517,263 ROU Asset added during the period 217,674 Amortization during the period (89,055) ROU Asset – June 30, 2020 $ 645,882 Lease Liability – October 1, 2019 $ 517,263 Lease Liability added during the period 217,674 Amortization during the period (83,063) Lease Liability – June 30, 2020 $ 651,874 Lease Liability – Short-Term $ 216,454 Lease Liability – Long-Term 435,420 Lease Liability – Total $ 651,874 During the nine months ended June 30, 2020, we had the following cash and non-cash activities associated with our leases: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 103,298 Operating cash flows from finance leases $ 10,794 Financing cash flows from finance leases $ 14,039 Non-cash transactions: Recognition of ROU asset and lease liability of operating lease $ 517,263 Additions to ROU assets obtained from: New operating lease: $ 217,674 New finance lease: $ 124,500 The table below reconciles the fixed component of the undiscounted cash flows for each of the first five years and the total remaining years to the lease liabilities recorded on the Consolidated Balance Sheet as of June 30, 2020: Amounts due within 12 months of June 30, 2021 $ 243,941 2022 206,711 2023 126,091 2024 129,873 2025 - Total Minimum Lease Payments 706,616 Less Effect of Discounting 54,742 Present Value of Future Minimum Lease Payments 651,874 Less Current Portion of Operating Lease Obligations 216,454 Long-Term Operating Lease Obligations $ 435,420 NuZee JP is the lessee of certain equipment under a finance lease extending through January 2021. The asset and liability under the finance 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 $4,536 as of June 30, 2020. The finance lease liability is included in other current liabilities on the consolidated balance sheets. Future minimum lease payments under finance lease obligations as of June 30, 2020 for each of the remaining fiscal years are as follows: 2020 $2,268 2021 $2,268 Total Minimum Lease Payments $4,536 On October 9, 2019, the Company entered into a lease agreement with Alliance Funding Group which provided for a sale lease back on certain packing equipment. The terms of this agreement require us to pay $2,987 per month for the next 60 months. As part of this agreement, Alliance Funding Group provided our equipment supplier with $124,540 for the purchase of this equipment. This transaction was accounted for as a financing lease. The following summarizes ROU assets under finance leases at June 30, 2020: ROU asset-finance lease at October 9, 2019 $ 124,500 Amortization (12,450) ROU asset-finance lease at June 30, 2020 $ 112,050 The table below summarizes future minimum finance lease payments at June 30, 2020 for the 12 months ended June 30 of each year indicated: 2021 $ 33,113 2022 33,113 2023 33,113 2024 33,113 2025 2,759 Total Minimum Lease Payments 135,211 Amount representing interest (30,229) Present Value of Minimum Lease Payments 104,982 Current Portion of Finance Lease Obligations 20,924 Finance Lease Obligations, Less Current Portion $ 84,058 The Company leases office space with terms ranging from month to month to 61 months. Rent expense included in general and administrative expense for the nine months ended June 30, 2020 and 2019 was $251,207 and $99,526, respectively. Future minimum rents for the office space leased as of June 30, 2020, for each of the remaining fiscal years are as follows: 2020 $ 69,264 2021 $ 278,530 2022 $ 208,885 2023 $ 160,149 2024 $ 124,999 Total Minimum Lease Payments $ 841,827 |
1. BASIS OF PRESENTATION AND_10
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition (Policies) | 9 Months Ended |
Jun. 30, 2020 | |
Policies | |
Revenue Recognition | Revenue Recognition We determine revenue recognition through the following steps in accordance with FASB Accounting Standards Update No. 2014-09 (Topic 606) "Revenue from Contracts with Customers", which we adopted as of October 1, 2018 on a modified retrospective basis: · · · · · Revenue is recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. |
1. BASIS OF PRESENTATION AND_11
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Foreign Currency Translation (Policies) | 9 Months Ended |
Jun. 30, 2020 | |
Policies | |
Foreign Currency Translation | Foreign Currency Translation The financial position and results of operations of each of the Company's foreign subsidiary are measured using the foreign subsidiary's local currency as the functional currency. Revenues and expenses of each such subsidiary have 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 $(59,510) and $(35,035) for the nine months ended June 30, 2020 and 2019, 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_12
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Inventories (Policies) | 9 Months Ended |
Jun. 30, 2020 | |
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 June 30, 2020 and September 30, 2019, the carrying value of inventory of $274,975 and $500,986 respectively, reflected on the consolidated balance sheets is net of this adjustment. June 30, 2020 September 30, 2019 Raw materials $ 15,585 $ 327,985 Finished goods 259,390 173,001 Less – Inventory reserve - - Total $ 274,975 $ 500,986 |
1. BASIS OF PRESENTATION AND_13
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Jun. 30, 2020 | |
Policies | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2018, the FASB issued ASU 2018-07 which simplifies several aspects of the accounting for non-employee transactions by stipulating that the existing accounting guidance for share-based payments to employees (accounted for under ASC Topic 718, "Compensation-Stock Compensation") will also apply to non-employee share-based transactions (accounted for under ASC Topic 505, "Equity"). ASU 2018-07 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company implemented ASU 2018-07 on October 1, 2019 and the impact of the implementation is not material to the 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 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 implemented ASU 2017-11 on October 1, 2019, and the impact of the implementation is not material to the financial statements. |
1. BASIS OF PRESENTATION AND_14
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Joint Venture (Policies) | 9 Months Ended |
Jun. 30, 2020 | |
Policies | |
Joint Venture | Joint Venture On January 9, 2020, a joint venture agreement was signed between Industrial Marino, S.A. de C.V. (50%) and the Company (50%) forming NuZee LATIN AMERICA, S.A. de C.V. ("NLA"). NLA was formed pursuant to the laws of Mexico, with corporate domicile in Mazatlan, Mexico. As part of the capitalization of NLA, the Company contributed two machines to the joint venture. These machines had an aggregate carrying cost of $313,012. The Company received $110,000 in cash for this contribution and recorded an investment in NLA of $160,000 and a loss of $43,012 on the contribution of the machines to NLA. The Company will account for NLA using the equity method of accounting. As of June 30, 2020, the only activity in NLA was the contribution of two machines as described above. |
1. BASIS OF PRESENTATION AND_15
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Major Customers: Schedule of Revenue by Major Customers by Reporting Segments (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of Revenue by Major Customers by Reporting Segments | Customer Name Sales Amount % of Total Revenue Accounts Receivable Amount % of Total Accounts Receivable Customer K $ 284,099 25% $ - 0% Customer WP $ 259,925 23% $7,767 11% Customer J $ 188,574 17% $175 0% Nine months ended June 30, 2019: Customer Name Sales Amount % of Total Revenue Accounts Receivable Amount % of Total Accounts Receivable Customer J $333,971 26 % $ - 0% Customer WP $254,765 20% $ 153,344 28% Customer C $153,167 12% $ 55,245 10% |
1. BASIS OF PRESENTATION AND_16
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Lease: Schedule of ROU Assets and Lease Liability (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of ROU Assets and Lease Liability | October 1, 2019 ROU Assets $517,263 Lease Liability $517,263 |
1. BASIS OF PRESENTATION AND_17
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Lease: Schedule of Other information related to operating lease (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of Other information related to operating lease | ROU Asset – October 1, 2019 $ 517,263 ROU Asset added during the period 217,674 Amortization during the period (89,055) ROU Asset – June 30, 2020 $ 645,882 Lease Liability – October 1, 2019 $ 517,263 Lease Liability added during the period 217,674 Amortization during the period (83,063) Lease Liability – June 30, 2020 $ 651,874 |
1. BASIS OF PRESENTATION AND_18
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Lease: Schedule of Total Lease Liability (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of Total Lease Liability | Lease Liability – Short-Term $ 216,454 Lease Liability – Long-Term 435,420 Lease Liability – Total $ 651,874 |
1. BASIS OF PRESENTATION AND_19
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Lease: Schedule of Cash and non-cash activities associated with leases (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of Cash and non-cash activities associated with leases | Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 103,298 Operating cash flows from finance leases $ 10,794 Financing cash flows from finance leases $ 14,039 Non-cash transactions: Recognition of ROU asset and lease liability of operating lease $ 517,263 Additions to ROU assets obtained from: New operating lease: $ 217,674 New finance lease: $ 124,500 |
1. BASIS OF PRESENTATION AND_20
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Lease: Schedule of Amounts due on lease liabilities (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of Amounts due on lease liabilities | 2021 $ 243,941 2022 206,711 2023 126,091 2024 129,873 2025 - Total Minimum Lease Payments 706,616 Less Effect of Discounting 54,742 Present Value of Future Minimum Lease Payments 651,874 Less Current Portion of Operating Lease Obligations 216,454 Long-Term Operating Lease Obligations $ 435,420 |
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 (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of Future Minimum Lease Payments for Capital Leases | 2020 $2,268 2021 $2,268 Total Minimum Lease Payments $4,536 |
1. BASIS OF PRESENTATION AND_22
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Lease: Schedule of ROU assets under finance leases (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of ROU assets under finance leases | The following summarizes ROU assets under finance leases at June 30, 2020: ROU asset-finance lease at October 9, 2019 $ 124,500 Amortization (12,450) ROU asset-finance lease at June 30, 2020 $ 112,050 |
1. BASIS OF PRESENTATION AND_23
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Lease: Schedule of future minimum finance lease payments (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of future minimum finance lease payments | The table below summarizes future minimum finance lease payments at June 30, 2020 for the 12 months ended June 30 of each year indicated: 2021 $ 33,113 2022 33,113 2023 33,113 2024 33,113 2025 2,759 Total Minimum Lease Payments 135,211 Amount representing interest (30,229) Present Value of Minimum Lease Payments 104,982 Current Portion of Finance Lease Obligations 20,924 Finance Lease Obligations, Less Current Portion $ 84,058 |
1. BASIS OF PRESENTATION AND_24
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Lease: Schedule of Future Minimum Rental Payments for Operating Leases (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of Future Minimum Rental Payments for Operating Leases | 2020 $ 69,264 2021 $ 278,530 2022 $ 208,885 2023 $ 160,149 2024 $ 124,999 Total Minimum Lease Payments $ 841,827 |
1. BASIS OF PRESENTATION AND_25
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Loans (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Loans | Loans On June 30, 2016, NuZee JP entered into a loan agreement with Tono Shinyo Kinko Bank. NuZee JP 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 June 30, 2020 amounted to $27,835. On January 27, 2017, NuZee JP entered into a loan agreement with Nihon Seisaku Kouko. NuZee JP borrowed 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 June 30, 2020 amounted to $30,060. On April 1, 2019, NuZee purchased a delivery van from Ford Motor Credit for $41,627. The Company paid $3,500 as a down payment and financed $38,127 for 60 months at a rate of 2.9%. The loan is secured by the van. The outstanding balance on the loan at June 30, 2020 amounted to $29,757. On February 15, 2019 NuZee KR entered into equipment financing for production equipment with ShinHan Bank for $60,563. In June 28, 2019 NuZee KR purchased additional equipment and increased the loan with ShinHan Bank by $86,518. The loan is secured by our production equipment at NuZee KR. The financing bears a term of 36 months at a rate of 4.33% per annum. Principal payments began in July of 2019. The outstanding balance on this loan at June 30, 2020 amounts to $94,496. The loan payments required for the next five remaining fiscal years are as follows: Nihon Ford Tono Shinyo Seisaku Motor ShinHan Kinko Bank Kouko Credit Bank Total 2020 $ 6,959 $ 4,704 $ 1,841 $ 11,812 2021 20,876 14,112 5,605 35,436 Total Current Portion $ 27,835 $ 18,816 $ 7,446 $ 47,248 $ 101,345 2021 $ 4,704 $ 1,895 $ 11,812 2022 6,540 7,720 35,436 2023 7,947 2024 4,749 Total Long Term Portion $ 11,244 $ 22,311 $ 47,248 $ 80,803 Grand Total $ 27,835 $ 30,060 $ 29,757 $ 94,496 $ 182,148 |
1. BASIS OF PRESENTATION AND_26
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Schedule of Loan Payments (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of Loan Payments | Nihon Ford Tono Shinyo Seisaku Motor ShinHan Kinko Bank Kouko Credit Bank Total 2020 $ 6,959 $ 4,704 $ 1,841 $ 11,812 2021 20,876 14,112 5,605 35,436 Total Current Portion $ 27,835 $ 18,816 $ 7,446 $ 47,248 $ 101,345 2021 $ 4,704 $ 1,895 $ 11,812 2022 6,540 7,720 35,436 2023 7,947 2024 4,749 Total Long Term Portion $ 11,244 $ 22,311 $ 47,248 $ 80,803 Grand Total $ 27,835 $ 30,060 $ 29,757 $ 94,496 $ 182,148 |
1. BASIS OF PRESENTATION AND_27
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Inventories: Schedule of Inventory, Current (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of Inventory, Current | June 30, 2020 September 30, 2019 Raw materials $ 15,585 $ 327,985 Finished goods 259,390 173,001 Less – Inventory reserve - - Total $ 274,975 $ 500,986 |
2. GEOGRAPHIC CONCENTRATION_ Sc
2. GEOGRAPHIC CONCENTRATION: Schedule of Geographic Operations (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of Geographic Operations | Geographic Concentrations Nine Months Ended Nine Months Ended June 30, 2020 June 30, 2019 Net Revenue: North America $ 756,000 $ 715,702 Japan 258,526 549,431 South Korea 117,036 39,433 $ 1,131,562 $ 1,304,566 Property and equipment, net: As of June 30, 2020 As of September 30, 2019 North America $ 1,459,948 $ 1,471,859 Japan 3,424 6,329 South Korea 273,060 397,403 $ 1,736,432 $ 1,875,591 |
5. STOCK OPTIONS AND WARRANTS_
5. STOCK OPTIONS AND WARRANTS: Schedule of Stock Option Activity (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
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, 2019 1,811,667 $ 6.86 8.4 $ 33,705,960 Granted 23,333 1.53 Exercised - - Expired - - Forfeited (110,000) 18.14 1,725,000 $ 6.07 7.5 10,243,687 Exercisable at June 30, 2020 663,750 $ 6.83 7.4 $ 3,802,116 |
5. STOCK OPTIONS AND WARRANTS_2
5. STOCK OPTIONS AND WARRANTS: Schedule of Company's unvested shares (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of Company's unvested shares | Nonvested options Number of Nonvested Shares Nonvested shares at September 30, 2019 1,355,000 Granted 23,333 Exercised - Forfeited (110,000) Vested (207,083) Nonvested shares at June 30, 2020 1,061,250 |
5. STOCK OPTIONS AND WARRANTS_3
5. STOCK OPTIONS AND WARRANTS: Schedule of Warrant Activity (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of Warrant Activity | Weighted Weighted Average Average Number of Exercise Remaining Aggregate Warrants Price Contractual Life (years) Intrinsic Value Outstanding at September 30, 2019 - $ - $ - Granted 40,250 9.00 Exercised - - Expired - - Forfeited - - Outstanding at June 30, 2020 40,250 $ 9.00 5.0 36,012 Exercisable at June 30, 2020 - $ - $ - |
1. BASIS OF PRESENTATION AND_28
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Earnings per Share (Details) - shares | Jun. 30, 2020 | Jun. 30, 2019 |
Details | ||
Common stock equivalents | 1,725,000 | 1,787,333 |
1. BASIS OF PRESENTATION AND_29
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Going Concern and Capital Resources (Details) - USD ($) | Jun. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 |
Details | ||||
Cash | $ 5,215,809 | $ 1,326,040 | $ 3,061,430 | $ 1,806,666 |
1. BASIS OF PRESENTATION AND_30
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Major Customers: Schedule of Revenue by Major Customers by Reporting Segments (Details) - USD ($) | 9 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Customer K | ||
Sales Amount | $ 284,099 | |
Percent of Total Revenue | 25.00% | |
Accounts Receivable Amount | $ 0 | |
Percent of Total Accounts Receivable | 0.00% | |
Customer WP | ||
Sales Amount | $ 259,925 | $ 254,765 |
Percent of Total Revenue | 23.00% | 20.00% |
Accounts Receivable Amount | $ 7,767 | $ 153,344 |
Percent of Total Accounts Receivable | 11.00% | 28.00% |
Customer J | ||
Sales Amount | $ 188,574 | $ 333,971 |
Percent of Total Revenue | 17.00% | 26.00% |
Accounts Receivable Amount | $ 175 | $ 0 |
Percent of Total Accounts Receivable | 0.00% | 0.00% |
Customer C | ||
Sales Amount | $ 153,167 | |
Percent of Total Revenue | 12.00% | |
Accounts Receivable Amount | $ 55,245 | |
Percent of Total Accounts Receivable | 10.00% |
1. BASIS OF PRESENTATION AND_31
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Lease: Schedule of ROU Assets and Lease Liability (Details) - USD ($) | Jun. 30, 2020 | Sep. 30, 2019 |
Details | ||
ROU Assets | $ 645,882 | $ 517,263 |
Lease Liability | $ 651,874 | $ 517,263 |
1. BASIS OF PRESENTATION AND_32
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Lease: Schedule of Other information related to operating lease (Details) | 9 Months Ended |
Jun. 30, 2020USD ($) | |
Details | |
ROU Asset - October 1, 2019 | $ 517,263 |
ROU Asset - ROU Asset added during the period | 217,674 |
ROU Asset - Amortization during the period | (89,055) |
ROU Asset - June 30, 2020 | 645,882 |
Lease Liability - October 1, 2019 | 517,263 |
Lease Liability - Lease Liability added during the period | 217,674 |
Lease Liability - Amortization during the period | (83,063) |
Lease Liability - June 30, 2020 | $ 651,874 |
1. BASIS OF PRESENTATION AND_33
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Lease: Schedule of Total Lease Liability (Details) | Jun. 30, 2020USD ($) |
Details | |
Lease Liability –Short-Term | $ 216,454 |
Lease Liability –Long-Term | 435,420 |
Lease Liability –Total | $ 651,874 |
1. BASIS OF PRESENTATION AND_34
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Lease: Schedule of Cash and non-cash activities associated with leases (Details) | 9 Months Ended |
Jun. 30, 2020USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities | |
Operating cash flows from operating leases | $ 103,298 |
Operating cash flows from finance leases | 10,794 |
Financing cash flows from finance leases | 14,039 |
Non-cash transactions | |
Recognition of ROU asset and lease liability of operating lease upon adoption of ASU 2016-02 | 517,263 |
Additions to ROU assets obtained from | |
New operating lease | 217,674 |
New finance lease | $ 124,500 |
1. BASIS OF PRESENTATION AND_35
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Lease: Schedule of Amounts due on lease liabilities (Details) | Jun. 30, 2020USD ($) |
Details | |
Amounts due within 12 months of December 31, 2019 | $ 243,941 |
Amounts due within 12 months of December 31, 2020 | 206,711 |
Amounts due within 12 months of December 31, 2021 | 126,091 |
Amounts due within 12 months of December 31, 2022 | 129,873 |
Amounts due within 12 months of December 31, 2023 | 0 |
Total Minimum Lease Payments | 706,616 |
Less Effect of Discounting | 54,742 |
Present Value of Future Minimum Lease Payments | 651,874 |
Less Current Obligations Under Lease | 216,454 |
Long-Term Lease Obligations | $ 435,420 |
1. BASIS OF PRESENTATION AND_36
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Lease: Schedule of Future Minimum Lease Payments for Capital Leases (Details) - Finance lease obligations | Jun. 30, 2020USD ($) |
Capital Leases, Future Minimum Payments Due, Next Twelve Months | $ 2,268 |
Capital Leases, Future Minimum Payments Due in Two Years | 2,268 |
Capital Leases, Future Minimum Payments Due | $ 4,536 |
1. BASIS OF PRESENTATION AND_37
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Lease: Schedule of ROU assets under finance leases (Details) - ROU assets under finance leases | 9 Months Ended |
Jun. 30, 2020USD ($) | |
ROU asset-finance lease | $ 124,500 |
ROU asset amortization | (12,450) |
ROU asset-finance lease | $ 112,050 |
1. BASIS OF PRESENTATION AND_38
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Lease: Schedule of future minimum finance lease payments (Details) - Finance lease payments | Jun. 30, 2020USD ($) |
Capital Leases, Future Minimum Payments Due, Next Twelve Months | $ 33,113 |
Capital Leases, Future Minimum Payments Due in Two Years | 33,113 |
Capital Leases, Future Minimum Payments Due in Three Years | 33,113 |
Capital Leases, Future Minimum Payments Due in Four Years | 33,113 |
Capital Leases, Future Minimum Payments Due in Five Years | 2,759 |
Capital Leases, Future Minimum Payments Due | 135,211 |
Amount representing interest | (30,229) |
Present Value of Minimum Lease Payments | 104,982 |
Current Portion of Finance Lease Obligations | 20,924 |
Finance Lease Obligations, Less Current Portion | $ 84,058 |
1. BASIS OF PRESENTATION AND_39
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Lease (Details) - USD ($) | 9 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Details | ||
Payments for Rent | $ 251,207 | $ 99,526 |
1. BASIS OF PRESENTATION AND_40
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Lease: Schedule of Future Minimum Rental Payments for Operating Leases (Details) | Jun. 30, 2020USD ($) |
Details | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 69,264 |
Operating Leases, Future Minimum Payments, Due in Two Years | 278,530 |
Operating Leases, Future Minimum Payments, Due in Three Years | 208,885 |
Operating Leases, Future Minimum Payments, Due in Four Years | 160,149 |
Operating Leases, Future Minimum Payments, Due in Five Years | 124,999 |
Operating Leases, Future Minimum Payments Due | $ 841,827 |
1. BASIS OF PRESENTATION AND_41
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Loans (Details) | 9 Months Ended |
Jun. 30, 2020USD ($) | |
Long-term Debt | $ 182,148 |
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 | $ 27,835 |
Loan 2 | |
Debt Instrument, Issuance Date | Jan. 27, 2017 |
Debt Instrument, Issuer | NuZee JP |
Debt Instrument, Description | loan agreement with Nihon Seisaku 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 | $ 30,060 |
Loan 3 | |
Debt Instrument, Issuance Date | Apr. 1, 2019 |
Debt Instrument, Description | NuZee purchased a delivery van from Ford Motor Credit |
Debt Instrument, Face Amount | $ 41,627 |
Debt Instrument, Interest Rate, Stated Percentage | 2.90% |
Debt Instrument, Collateral | secured by the van |
Long-term Debt | $ 29,757 |
Loan 4 | |
Debt Instrument, Issuance Date | Feb. 15, 2019 |
Debt Instrument, Description | NuZee KR entered into equipment financing for production equipment |
Debt Instrument, Face Amount | $ 60,563 |
Debt Instrument, Interest Rate, Stated Percentage | 4.33% |
Debt Instrument, Collateral | secured by our production equipment |
Long-term Debt | $ 94,496 |
1. BASIS OF PRESENTATION AND_42
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Schedule of Loan Payments (Details) | Jun. 30, 2020USD ($) |
Grand Total | $ 182,148 |
Tono Shinyo Kinko Bank | |
Grand Total | 27,835 |
Tono Shinyo Kinko Bank | Current Portion | |
2020 | 6,959 |
2021 | 20,876 |
Nihon Seisaku Kouko | |
Grand Total | 30,060 |
Nihon Seisaku Kouko | Current Portion | |
2020 | 4,704 |
2021 | 14,112 |
Nihon Seisaku Kouko | Non-Current Portion | |
2021 | 4,704 |
2022 | 6,540 |
Ford Motor Credit | |
Grand Total | 29,757 |
Ford Motor Credit | Current Portion | |
2020 | 1,841 |
2021 | 5,605 |
Ford Motor Credit | Non-Current Portion | |
2021 | 1,895 |
2022 | 7,720 |
2023 | 7,947 |
2024 | 4,749 |
(ShinHan Bank) | |
Grand Total | 94,496 |
(ShinHan Bank) | Current Portion | |
2020 | 11,812 |
2021 | 35,436 |
(ShinHan Bank) | Non-Current Portion | |
2021 | 11,812 |
2022 | $ 35,436 |
1. BASIS OF PRESENTATION AND_43
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Foreign Currency Translation (Details) - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 |
Details | ||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ (59,510) | $ (35,035) |
1. BASIS OF PRESENTATION AND_44
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Inventories: Schedule of Inventory, Current (Details) - USD ($) | Jun. 30, 2020 | Sep. 30, 2019 |
Details | ||
Raw materials | $ 15,585 | $ 327,985 |
Finished goods | 259,390 | 173,001 |
Less - Inventory reserve | 0 | 0 |
Inventories, net | $ 274,975 | $ 500,986 |
1. BASIS OF PRESENTATION AND_45
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Joint Venture (Details) - USD ($) | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Sep. 30, 2019 | |
Details | |||
Investment | $ 160,000 | $ 0 | |
Gain (Loss) on Disposition of Assets | $ (43,012) | $ (6,096) |
2. GEOGRAPHIC CONCENTRATION_ _2
2. GEOGRAPHIC CONCENTRATION: Schedule of Geographic Operations (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Sep. 30, 2019 | |
Net Revenue | $ 191,962 | $ 585,202 | $ 1,131,562 | $ 1,304,566 | |
Property and equipment, net | 1,736,432 | 1,736,432 | $ 1,875,591 | ||
North America | |||||
Net Revenue | 756,000 | 715,702 | |||
Property and equipment, net | 1,459,948 | 1,459,948 | 1,471,859 | ||
JAPAN | |||||
Net Revenue | 258,526 | 549,431 | |||
Property and equipment, net | 3,424 | 3,424 | 6,329 | ||
South Korea | |||||
Net Revenue | 117,036 | 39,433 | |||
Property and equipment, net | 273,060 | 273,060 | 397,403 | ||
Total | |||||
Net Revenue | 1,131,562 | $ 1,304,566 | |||
Property and equipment, net | $ 1,736,432 | $ 1,736,432 | $ 1,875,591 |
3. RELATED PARTY TRANSACTIONS (
3. RELATED PARTY TRANSACTIONS (Details) - USD ($) | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Sep. 30, 2019 | |
Lessee, Operating Lease, Liability, to be Paid | $ 605 | $ 1,154 | |
Sales or Purchase Transaction 1 | |||
Sales-type Lease, Revenue | 3,154 | $ 3,174 | |
Accounts Receivable, after Allowance for Credit Loss | $ 118 | ||
Accounts Payable | $ (106) |
4. COMMON STOCK (Details)
4. COMMON STOCK (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Sep. 30, 2019 | ||
Stock Transaction 1 | |||
Sale of Stock, Description of Transaction | [1] | Company sold | |
Shares, Issued | [1] | 111,738 | |
Sale of Stock, Price Per Share | [1] | $ 17.85 | |
Stock Issued | [1] | $ 1,994,523 | |
Stock Transaction 2 | |||
Sale of Stock, Description of Transaction | [1] | Company sold | |
Shares, Issued | [1] | 700,000 | |
Sale of Stock, Price Per Share | [1] | $ 9 | |
Stock Issued | [1] | $ 6,300,000 | |
Stock Transactions 1 and 2 | |||
Other Underwriting Expense | [1] | 500,837 | $ 225,089 |
Proceeds from issuance of common stock | [1] | $ 4,648,174 | |
[1] | See Note 6 – Subsequent Events for more information. |
5. STOCK OPTIONS AND WARRANTS_4
5. STOCK OPTIONS AND WARRANTS: Schedule of Stock Option Activity (Details) - Stock Options - USD ($) | Jun. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance | 1,811,667 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance | $ 6.86 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 7 years 6 months | 8 years 4 months 24 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 33,705,960 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 23,333 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 1.53 | ||
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 | (110,000) | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ 18.14 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 1,725,000 | 1,811,667 | 1,725,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $ 6.07 | $ 6.86 | $ 6.07 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 10,243,687 | $ 33,705,960 | $ 10,243,687 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 663,750 | 663,750 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 6.83 | $ 6.83 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 7 years 4 months 24 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 3,802,116 | $ 3,802,116 |
5. STOCK OPTIONS AND WARRANTS_5
5. STOCK OPTIONS AND WARRANTS: Schedule of Company's unvested shares (Details) - Non-vested | 9 Months Ended |
Jun. 30, 2020shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares, Beginning Balance | 1,355,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 23,333 |
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 | (110,000) |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | (207,083) |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares, Ending Balance | 1,061,250 |
5. STOCK OPTIONS AND WARRANTS_6
5. STOCK OPTIONS AND WARRANTS: Schedule of Warrant Activity (Details) - Warrants - USD ($) | Jun. 30, 2020 | Jun. 30, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 5 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 40,250 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 9 | |
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 | 40,250 | 40,250 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $ 9 | $ 9 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 36,012 | $ 36,012 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 0 | $ 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 0 | $ 0 |
6. SUBSEQUENT EVENT (Details)
6. SUBSEQUENT EVENT (Details) | 9 Months Ended |
Jun. 30, 2020USD ($)$ / sharesshares | |
Event 1 | |
Subsequent Event, Date | Jul. 21, 2020 |
Sale of Stock, Transaction Date | Jul. 21, 2020 |
Subsequent Event, Description | the underwriters in the Company’s registered public offering of common stock exercised their over-allotment option |
Sale of Stock, Description of Transaction | the underwriters in the Company’s registered public offering of common stock exercised their over-allotment option |
Stock Issued During Period, Shares, New Issues | shares | 105,000 |
Sale of Stock, Price Per Share | $ / shares | $ 9 |
Stock Issued | $ | $ 878,850 |
Event 2 | |
Sale of Stock, Transaction Date | Jul. 31, 2020 |
Sale of Stock, Description of Transaction | 23,334 shares were issued upon the exercise of stock options. |
Stock Issued During Period, Shares, New Issues | shares | 23,334 |
Stock Issued | $ | $ 35,700 |