CIMG (IMG) 10-Q 16 Aug 21 2021 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Jun. 30, 2021	Aug. 16, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2021
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2021
Current Fiscal Year End Date	--09-30
Entity File Number	001-39338
Entity Registrant Name	NUZEE, INC.
Entity Central Index Key	0001527613
Entity Tax Identification Number	38-3849791
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	1 401 Capital Avenue
Entity Address, Address Line Two	Suite B
Entity Address, City or Town	Plano
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75074
City Area Code	760
Local Phone Number	295-2408
Title of 12(b) Security	Common Stock, $0.00001 par value
Trading Symbol	NUZE
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		17,820,390

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2021	Sep. 30, 2020
Current assets:
Cash	$ 12,704,257	$ 4,398,545
Accounts receivable, net	320,030	195,610
Inventories, net	428,856	245,370
Prepaid expenses and other current assets	321,651	645,375
Total current assets	13,774,794	5,484,900
Property and equipment, net	807,848	1,668,348
Other assets:
Right-of-use asset - operating lease	449,250	652,197
Right-of-use asset - finance lease		105,825
Investments	179,238	183,314
Other assets	81,921	80,559
Total other assets	710,409	1,021,895
Total assets	15,293,051	8,175,143
Current liabilities:
Accounts payable	81,318	49,778
Current portion of long-term loan payable	57,920	56,072
Current portion of lease liability - operating lease	162,674	263,678
Current portion of lease liability - finance lease	26,964	21,598
Accrued expenses	202,147	703,069
Deferred income	95,032	34,000
Other current liabilities	255,198	104,525
Total current liabilities	881,253	1,232,720
Non-current liabilities:
Lease liability - operating lease, net of current portion	303,599	395,713
Lease liability - finance lease, net of current portion	57,095	78,400
Loan payable - long term, net of current portion	14,590	56,845
Other noncurrent liabilities	22,435	21,707
Total noncurrent liabilities	397,719	552,665
Total liabilities	1,278,972	1,785,385
Stockholders’ equity:
Common stock; 100,000,000 shares authorized, $0.00001 par value; 17,820,390 and 14,570,105 shares issued	178	146
Additional paid in capital	63,147,614	40,472,229
Accumulated deficit	(49,321,500)	(34,272,778)
Accumulated other comprehensive income	187,787	190,161
Total stockholders’ equity	14,014,079	6,389,758
Total liabilities and stockholders’ equity	$ 15,293,051	$ 8,175,143

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2021	Sep. 30, 2020
Statement of Financial Position [Abstract]
Common stock, shares authorized	100,000,000	100,000,000
Common stock, par value	$ 0.00001	$ 0.00001
Common stock, shares issued	17,820,390	14,570,105

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement [Abstract]
Revenues	$ 510,032	$ 191,962	$ 1,442,083	$ 1,131,562
Cost of sales	413,446	331,039	1,352,843	1,250,904
Gross Profit (Loss)	96,586	(139,077)	89,240	(119,342)
Operating expenses	3,206,552	2,378,947	15,222,137	8,342,412
Loss from operations	(3,109,966)	(2,518,024)	(15,132,897)	(8,461,754)
Loss from investment in uncosolidated affiliate	(102)		(4,077)
Other income	47,909	25,523	101,623	28,504
Other expense	(1,280)	(42,113)	(2,093)	(44,712)
Interest expense	(3,603)	(6,448)	(11,278)	(16,573)
Net loss	(3,067,042)	(2,541,062)	(15,048,722)	(8,494,535)
Net income (loss) attributable to noncontrolling interest		1,356		(40,634)
Net loss attributable to NuZee, Inc.	$ (3,067,042)	$ (2,542,418)	$ (15,048,722)	$ (8,453,901)
Basic and diluted loss per common share	$ (0.17)	$ (0.18)	$ (0.94)	$ (0.62)
Basic and diluted weighted average number of common stock outstanding	17,820,390	13,782,950	15,938,931	13,724,590

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net loss	$ (3,067,042)	$ (2,541,062)	$ (15,048,722)	$ (8,494,535)
Foreign currency translation	(7,854)	10,739	(2,374)	21,858
Total other comprehensive income (loss), net of tax	(7,854)	10,739	(2,374)	21,858
Comprehensive income (loss)	(3,074,896)	(2,530,323)	(15,051,096)	(8,472,677)
Parent [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net loss	(3,067,042)	(2,542,418)	(15,048,722)	(8,453,901)
Foreign currency translation	(7,854)	10,209	(2,374)	(59,510)
Total other comprehensive income (loss), net of tax	(7,854)	10,209	(2,374)	(59,510)
Comprehensive income (loss)	(3,074,896)	(2,532,209)	(15,051,096)	(8,513,411)
Noncontrolling Interest [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Net loss		1,356		(40,634)
Foreign currency translation		530		81,368
Total other comprehensive income (loss), net of tax		530		81,368
Comprehensive income (loss)		$ 1,886		$ 40,734

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total	Noncontrolling Interest [Member]
Beginning balance, value at Sep. 30, 2019	$ 137	$ 28,898,344	$ (24,795,687)	$ (90,635)	$ 4,115,062	$ 102,903
Beginning balance, shares at Sep. 30, 2019	13,617,366
Equity securities issued for cash	$ 1	1,994,522			1,994,523
Equity securities issued for cash, shares	111,738
Stock option expense		2,220,861			2,220,861
Other comprehensive gain				27,230	32,872	5,642
Net income (loss)			(3,421,232)		(3,432,253)	(11,021)
Ending balance, value at Dec. 31, 2019	$ 138	33,113,727	(28,216,919)	(63,405)	4,931,065	97,524
Ending balance, shares at Dec. 31, 2019	13,729,104
Beginning balance, value at Sep. 30, 2019	$ 137	28,898,344	(24,795,687)	(90,635)	4,115,062	102,903
Beginning balance, shares at Sep. 30, 2019	13,617,366
Other comprehensive gain					21,858	81,368
Net income (loss)					(8,494,535)	(40,634)
Ending balance, value at Jun. 30, 2020	$ 145	40,046,531	(33,249,588)	(150,145)	6,790,580	143,637
Ending balance, shares at Jun. 30, 2020	14,429,104
Beginning balance, value at Dec. 31, 2019	$ 138	33,113,727	(28,216,919)	(63,405)	4,931,065	97,524
Beginning balance, shares at Dec. 31, 2019	13,729,104
Stock option expense		962,490			962,490
Other comprehensive gain				(96,949)	(21,753)	75,196
Net income (loss)			(2,490,251)		(2,521,220)	(30,969)
Ending balance, value at Mar. 31, 2020	$ 138	34,076,217	(30,707,170)	(160,354)	3,350,582	141,751
Ending balance, shares at Mar. 31, 2020	13,729,104
Equity securities issued for cash	$ 7	4,648,167			4,648,174
Equity securities issued for cash, shares	700,000
Stock option expense		1,322,147			1,322,147
Other comprehensive gain				10,209	10,739	530
Net income (loss)			(2,542,418)		(2,541,062)	1,356
Ending balance, value at Jun. 30, 2020	$ 145	40,046,531	(33,249,588)	(150,145)	6,790,580	143,637
Ending balance, shares at Jun. 30, 2020	14,429,104
Beginning balance, value at Sep. 30, 2020	$ 146	40,472,229	(34,272,778)	190,161	6,389,758
Beginning balance, shares at Sep. 30, 2020	14,570,105
Equity securities issued for cash	$ 3	2,683,977			2,683,980
Equity securities issued for cash, shares	324,959
Stock option expense		4,507,298			4,507,298
Exercise of stock options		9,180			9,180
Exercise of stock options, shares	6,000
Other comprehensive gain				1,656	1,656
Net income (loss)			(5,896,072)		(5,896,072)
Ending balance, value at Dec. 31, 2020	$ 149	47,672,684	(40,168,850)	191,817	7,695,800
Ending balance, shares at Dec. 31, 2020	14,901,064
Beginning balance, value at Sep. 30, 2020	$ 146	40,472,229	(34,272,778)	190,161	$ 6,389,758
Beginning balance, shares at Sep. 30, 2020	14,570,105
Equity securities issued for cash, shares	256,338
Exercise of stock options, shares					6,000
Other comprehensive gain					$ (2,374)
Net income (loss)					(15,048,722)
Ending balance, value at Jun. 30, 2021	$ 178	63,147,614	(49,321,500)	187,787	14,014,079
Ending balance, shares at Jun. 30, 2021	17,820,390
Beginning balance, value at Dec. 31, 2020	$ 149	47,672,684	(40,168,850)	191,817	7,695,800
Beginning balance, shares at Dec. 31, 2020	14,901,064
Equity securities issued for cash	$ 28	11,017,276			11,017,304
Equity securities issued for cash, shares	2,782,111
Common stock issued for compensation	$ 1	870,999			871,000
Common stock issued for compensation, shares	137,215
Stock option expense		1,989,006			1,989,006
Other comprehensive gain				3,824	3,824
Net income (loss)			(6,085,608)		(6,085,608)
Ending balance, value at Mar. 31, 2021	$ 178	61,549,965	(46,254,458)	195,641	15,491,326
Ending balance, shares at Mar. 31, 2021	17,820,390
Amortization of common stock issued for compensation		91,036			91,036
Stock option expense		1,506,613			1,506,613
Other comprehensive gain				(7,854)	(7,854)
Net income (loss)			(3,067,042)		(3,067,042)
Ending balance, value at Jun. 30, 2021	$ 178	$ 63,147,614	$ (49,321,500)	$ 187,787	$ 14,014,079
Ending balance, shares at Jun. 30, 2021	17,820,390

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Operating activities:
Net loss	$ (15,048,722)	$ (8,494,535)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation and Amortization	254,929	310,393
Noncash lease expense	215,397	101,505
Stock option expense	8,002,917	4,505,498
Property and equipment impairment	840,391
Inventory impairment		74,944
Common stock issued for compensation	962,036
Sales allowance	(11,562)	3,835
Write-off of deferred offering costs	477,605
Loss on sale of assets		43,012
Loss from investment in uncosolidated afffiliate	4,076
Change in operating assets and liabilities:
Accounts receivable	(112,858)	469,020
Accounts receivable - Related party		(118)
Inventories	(183,486)	151,067
Prepaid expense and other current assets	(141,018)	(122,426)
Other current assets - Related party		460
Other assets	(1,362)	(41,767)
Accounts payable	31,540	(199,763)
Other non-current liabilities	728	7,144
Deferred revenue	61,032
Operating lease liabilities	(193,118)	(83,063)
Other current liabilities	150,673
Other current liabilities - related party		(704)
Accrued expense and other current liabilities	(513,785)	271,784
Net cash used in operating activities	(5,204,587)	(3,003,714)
Investing activities:
Cash paid for purchase of fixed assets, net	(141,445)	(16,306)
Proceeds from sales of equipment		110,000
Net cash provided by (used in) investing activities	(141,445)	93,694
Financing activities:
Proceeds from exercise of options	9,180
Repayment of loans	(40,407)	(75,816)
Repayment of finance lease	(15,939)	(14,039)
Proceeds from issuance of equity securities, net of issuance costs	13,701,284	6,867,786
Net cash provided by financing activities	13,654,118	6,777,931
Effect of foreign exchange on cash and cash equivalents	(2,374)	21,858
Net change in cash	8,305,712	3,889,769
Cash, beginning of period	4,398,545	1,326,040
Cash, end of period	12,704,257	5,215,809
Supplemental disclosure of cash flow information:
Cash paid for interest	11,278	16,573
Cash paid for taxes	7,044	800
Non-cash transactions
Recognition of right-of-use asset and lease liability upon adoption of ASU 2016-02		517,263
Recognition of right-of-use asset and lease liability during the period		217,674
Reclassification of common stock offering costs to additional paid in capital		1,150,989
Finance lease of equipment to pay off accounts payable		124,500
Contribution of machines to NuZee Latin America		$ 160,000

BASIS OF PRESENTATION AND SUMMA

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
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 for the year ended September 30, 2020 as filed with the SEC on December 28, 2020. In the opinion of management, all adjustments, consisting of recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements as reported in the annual report on Form 10-K have been omitted. Principles of Consolidation The Company prepares its financial statements on the accrual basis of accounting. The accompanying consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries and its former majority owned subsidiary (which was sold as of September 28, 2020, as described below), which has a fiscal year end of September 30. All significant intercompany accounts, balances and transactions have been eliminated upon consolidation. On September 28, 2020, the Company entered into a Stock Transfer Agreement with Eguchi Holdings Co., Ltd. (“EHCL”), pursuant to which the Company sold to EHCL for an aggregate sale price of approximately $ 34,000 70 The Company has two wholly owned international subsidiaries in NuZee KOREA Ltd. (“NuZee KR”) and NuZee Investment Co., Ltd. (“NuZee INV”). Stock Split On October 28, 2019, we completed a l-for-3 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, warrants 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, 2021 and June 30, 2020, the total number of common stock equivalents was 8,289,864 1,725,000 Capital Resources Since its inception, the Company has devoted substantially all of its efforts to business planning, research and development, recruiting management and technical staff, acquiring operating assets and raising capital. The Company has generated limited revenues from its principal operations, and there is no assurance of future revenues. As of June 30, 2021, the Company had cash of $ 12,704,257 Major Customers In the nine months ended June 30, 2021 and 2020, revenue was primarily derived from major customers disclosed below. Nine months ended June 30, 2021: SCHEDULE OF REVENUE BY MAJOR CUSTOMERS Customer Name Sales Amount % of Total Revenue Accounts Receivable Amount % of Total Accounts Customer WP $ 456,247 32 % $ 124,814 39 % Nine months ended June 30, 2020: C ustomer 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 % 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 Company implemented ASU No. 2016-02 on October 1, 2019. The Company does a quarterly analysis of leases to determine if there are any operating leases that require recognition under ASC 842. The Company has 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 The impact of ASU No. 2016-02 (“Leases (Topic 842)” on our consolidated balance sheet beginning October 1, 2020, through the recognition of right-of-use (“ROU”) assets and lease liabilities for operating leases are as follows: SCHEDULE OF ROU ASSETS AND LEASE LIABILITY October 1, 2020 ROU Asset $ 652,197 Lease Liability $ 659,391 During the prior year 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-terminus with the direct-leased property. In September 2020, we entered into an 18 Effective September 1, 2020, we converted our month-to-month sublease in Vista, California to a 17 17 As of June 30, 2021, our operating leases had a weighted average remaining lease term of 1.9 SCHEDULE OF OTHER INFORMATION RELATED TO OPERATING LEASE ROU Asset – October 1, 2020 $ 652,197 Amortization during the period (202,947 ) ROU Asset –June 30, 2021 $ 449,250 Lease Liability – October 1, 2020 $ 659,391 Amortization during the period (193,118 ) Lease Liability – June 30, 2021 $ 466,273 Lease Liability – Short-Term $ 162,674 Lease Liability – Long-Term 303,599 Lease Liability – Total $ 466,273 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, 2021: Amounts due within 12 months of June 30, SCHEDULE OF FUTURE MINIMUM RENTAL PAYMENTS FOR OPERATING LEASES 2022 $ 238,519 2023 126,091 2024 129,873 2025 - 2026 - Total Minimum Lease Payments 494,483 Less Effect of Discounting (28,210 ) Present Value of Future Minimum Lease Payments 466,273 Less Current Portion of Operating Lease Obligations (162,674 ) Long-Term Operating Lease Obligations $ 303,599 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 60 months 124,540 3 years 12.75 8,896 The following summarizes ROU assets under finance leases at June 30, 2021: SUMMARY OF ROU ASSETS UNDER FINANCE LEASES ROU asset-finance lease at September 30, 2020 $ 105,825 Impairment (105,825 ) ROU asset-finance lease at June 30, 2021 $ - The table below summarizes future minimum finance lease payments at June 30, 2021 for the 12 months ended June 30: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS FOR FINANCE LEASES 2022 $ 33,113 2023 33,113 2024 33,113 2025 2,759 2026 - Total Minimum Lease Payments 102,098 Amount representing interest (18,039 ) Present Value of Minimum Lease Payments 84,059 Current Portion of Finance Lease Obligations (26,965 ) Finance Lease Obligations, Less Current Portion $ 57,094 The Company leases office space with terms ranging from month to month to 61 months 251,164 251,207 Cash and non cash activities associated with the leases for the nine months ended June 30, 2021 are as follows: SCHEDULE OF CASH AND NON-CASH ACTIVITIES OF LEASES Operating cash outflows from operating leases: $ 215,046 Operating cash outflows from finance lease: $ 8,896 Financing cash outflows from finance lease: $ 15,939 In September 2020, we subleased the space at 1700 Capital Avenue in Plano, Texas, effective October 1, 2020 under favorable terms that are co-terminus with the original lease ending June 30, 2024. In the nine months ended June 30, 2021, we recognized sublease income of $ 59,439 SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS OF SUBLEASE 2022 $ 122,364 2023 126,017 2024 129,835 2025 — 2026 — Total $ 378,216 Loans On April 1, 2019, NuZee purchased a delivery van from Ford Motor Credit for $ 41,627 3,500 38,127 60 months 2.9 22,304 27,916 On February 15, 2019 NuZee KR entered into equipment financing for production equipment with ShinHan Bank for $ 60,563 86,518 36 months 4.33 50,206 85,001 The loan payments required for the next five remaining fiscal years are as follows: SCHEDULE OF LOAN PAYMENTS Ford Motor Credit ShinHan Bank Total 2021 (July – September 2021) $ 1,895 $ 12,551 2022 (October 2021 – June 2022) 5,819 37,655 Total Current Portion $ 7,714 $ 50,206 $ 57,920 2022 (July – September 2022) $ 1,895 $ - 2023 7,947 - 2024 4,748 - 2025 - - Total LT Portion $ 14,590 $ - $ 14,590 Grand Total $ 22,304 $ 50,206 $ 72,510 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: ● identification of the contract, or contracts, with a customer; ● identification of the performance obligations in the contract; ● determination of the transaction price; ● allocation of the transaction price to the performance obligations in the contract; and ● recognition of revenue when, or as, we satisfy a performance obligation. 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. The adoption of Topic 606 did not have a material impact on our consolidated financial statements. Foreign Currency Translation The financial position and results of operations of each of the Company’s foreign subsidiaries 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 income (loss) amounted to $ (2,374) (59,510) 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, 2021 and September 30, 2020, the carrying value of inventory of $ 428,856 245,370 SCHEDULE OF INVENTORY June 30, 2021 September 30, 2020 Raw materials $ 327,411 $ 176,231 Finished goods 101,445 69,139 Less – Inventory reserve - - Total $ 428,856 $ 245,370 Joint Venture On January 9, 2020, a joint venture agreement was signed between Industrial Marino, S.A. de C.V. ( 50 313,012 110,000 160,000 43,012 The Company accounts for NLA using the equity method of accounting since the management of day to day operations at NLA ultimately lies with the Company’s joint venture partner as the operations of NLA are based in its partners facilities and our partner appoints the Chairman of the joint Board. As of June 30, 2021, the only activity in NLA was the contribution of two machines as described above and other start up related activities. $ 4,077

GEOGRAPHIC CONCENTRATION

GEOGRAPHIC CONCENTRATION	9 Months Ended
	Jun. 30, 2021
Risks and Uncertainties [Abstract]
GEOGRAPHIC CONCENTRATION	2. GEOGRAPHIC CONCENTRATION The Company is organized in three geographical segments. The Company co-packs product for customers and produces and sells its products directly in North America and Korea. The Company has investor relations operations in Japan as a majority of our shareholders are based in Japan. In March of 2021, the Company wrote off $ 840,391 105,825 734,566 Geographic Concentrations SCHEDULE OF GEOGRAPHIC OPERATIONS Nine Months Ended Nine Months Ended June 30, 2021 June 30, 2020 Net Revenue: North America $ 1,077,986 $ 756,000 Japan - 258,526 South Korea 364,097 117,036 Net Revenue $ 1,442,083 $ 1,131,562 Property and equipment, net: As of June 30, 2021 As of September 30, 2020 North America $ 573,631 $ 1,422,575 Japan 1,808 2,813 South Korea 232,409 242,960 Property and equipment, net $ 807,848 $ 1,668,348

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Jun. 30, 2021
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	3. RELATED PARTY TRANSACTIONS For the nine months ended June 30, 2021, we sold $ 28,299

ISSUANCE OF EQUITY SECURITIES

ISSUANCE OF EQUITY SECURITIES	9 Months Ended
	Jun. 30, 2021
Equity [Abstract]
ISSUANCE OF EQUITY SECURITIES	4. ISSUANCE OF EQUITY SECURITIES During the nine months ended June 30, 2021, the Company sold (i) 72,955 534,494 256,338 9.14 2,149,486 2,777,777 11,017,304 4.50 5.85 416,666 416,666 6,000 9,180 On January 11, 2021, the Compensation Committee (the “Compensation Committee”) of the Company’s Board of Directors granted to Shanoop Kothari, who was serving at the time as both the Company’s Chief Financial Officer and Chief Operating Officer, in connection with the Committee’s determination of Mr. Kothari’s annual compensation, an award of 152,215 50,739 35,739 net shares were issued to Mr. Kothari following the forfeiture of 15,000 vested shares to cover taxes 50,739 50,737 On March 11, 2021, we terminated our At Market Issuance Sales Agreement, dated September 1, 2020 (the “ATM Agreement”), with B. Riley Securities, Inc. (f/k/a/ B. Riley FBR, Inc.) and The Benchmark Company, LLC (collectively, the “Agents”), pursuant to which we could from time to time offer and sell up to an aggregate of $ 50.0 477,605

STOCK OPTIONS AND WARRANTS

STOCK OPTIONS AND WARRANTS	9 Months Ended
	Jun. 30, 2021
Share-based Payment Arrangement [Abstract]
STOCK OPTIONS AND WARRANTS	5. STOCK OPTIONS AND WARRANTS Options During the nine months ended June 30, 2021, the Company issued 15,000 1,369,938 770,000 3 years 50% of the options vesting immediately and the remaining 50% vesting 25% on each of the first two anniversaries of the grant date. 3 years 33% of the options vesting on each anniversary of the grant date. these options shall vest and become exercisable either (i) in the case of time-based options, as to 1/3 on each anniversary of the grant date, or (ii) in the case of performance-based options (the “Performance-Based Options”), based on the Company’s achievement of certain performance milestones established by the Compensation Committee for each fiscal year in the fiscal years ending September 30, 2021, 2022, 2023 and 2024. 622,000 The exercise price for the options ranged from $ 2.91 16.79 ten years The fair value of each option award was estimated on the date of grant using the Black-Scholes option valuation model using the assumptions noted as follows: expected volatility was based on the Company’s historical stock performance. The expected term of options granted was determined using the contractual term. The risk-free rate is calculated using the U.S. Treasury yield curve and is based on the expected term of the option. The Black-Scholes option pricing model was used with the following weighted average assumptions for options granted during the nine months ended June 30, 2021: SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS FOR FAIR VALUE MEASUREMENT OF OPTIONS GRANTED For non-employees, employees and independent Board members June 30, 2021 Risk-free interest rate 0.78 1.71 % Expected option life 10 years Expected volatility 300 311 % Expected dividend yield 0.00 % Exercise price $ 2.91 16.79 For the nine months ended June 30, 2021, 311,656 6,000 The following table summarizes stock option activity for nine months ended June 30, 2021: SUMMARY OF STOCK OPTION ACTIVITY Number of Shares Weighted Average Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value Outstanding at September 30, 2020 1,620,667 $ 5.74 7.3 $ 19,112,118 Granted 2,154,938 5.87 Exercised (6,000 ) 1.53 Expired - - Forfeited (311,656 ) 12.39 Outstanding at June 30, 2021 3,457,949 $ 5.23 8.3 $ 1,363,638 Exercisable at June 30, 2021 1,397,975 $ 6.01 7.7 $ 790,939 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 $ 8,002,917 6,520,427 1.5 4,505,498 A summary of the status of the Company’s nonvested options as of June 30, 2021, is presented below: SUMMARY OF UNVESTED SHARES Nonvested options Number of nonvested shares Weighted average grant date fair value Nonvested shares at September 30, 2020 762,917 $ 10.60 Granted 2,154,938 5.87 Forfeited (158,328 ) 12.11 Vested (699,554 ) 7.59 Nonvested shares at June 30, 2021 2,059,973 6.56 Warrants On June 23, 2020, as part of our agreement with Benchmark Company, LLC the underwriter of the Company’s June 2020 registered public offering of common stock, we issued 40,250 9.00 December 23, 2020 June 18, 2025 On March 19, 2021, we entered into an underwriting agreement in connection with our registered public offering (the “Offering”) of (i) 2,777,777 4.50 Each Series A Warrant entitles the registered holder to purchase one share of our common stock at an exercise price of $ 4.50 5.85 5 years The following table summarizes warrant activity for the nine months ended June 30, 2021: SCHEDULE OF WARRANT ACTIVITY Number of Shares Issuable Upon Exercise of Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value Outstanding at September 30, 2020 40,250 $ 9.00 4.7 $ 321,598 Issued 4,791,665 4.95 Exercised - - Expired - - Outstanding June 30, 2021 4,831,915 $ 4.98 4.7 - Exercisable at June 30, 2021 4,831,915 $ 4.98 4.7 $ -

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Jun. 30, 2021
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	6. SUBSEQUENT EVENTS Shanoop Kothari’s Resignation and Severance Agreement On June 22, 2021, Shanoop Kothari notified the Company of his resignation as Chief Financial Officer. Mr. Kothari’s resignation will be effective as of August 16, 2021 (the “Separation Date”). In connection with Mr. Kothari’s resignation, the Company entered into a Severance Agreement and General Release with Mr. Kothari on July 2, 2021 (the “Severance Agreement”). Pursuant to the Severance Agreement, Mr. Kothari’s 50,737 Appointment of Patrick Shearer as Chief Financial Officer and Issuance of Options On July 2, 2021 (the “Commencement Date”), the Company appointed Patrick Shearer to be its new Chief Financial Officer, effective immediately. In addition, pursuant to Mr. Shearer’s employment agreement, the Company granted to Mr. Shearer on the Commencement Date an award of options to purchase 200,000 80,000 60,000 60,000 3.12 ten years CEO Compensation On July 2, 2021, the Compensation Committee approved a grant of nonqualified performance-based options (the “Options”) to Masateru Higashida, the Company’s President and Chief Executive Officer, to purchase 896,743 The Options will vest, if at all, based on the extent to which the Company achieves certain performance objectives relating to our earnings before income taxes in each of the fiscal years ending September 30, 2022 (“fiscal year 2022”), September 30, 2023 (“fiscal year 2023”) and September 30, 2024 (“fiscal year 2024”). Pursuant to the award agreement, (i) 179,349 269,023 448,371 3.12 ten years Also on July 2, 2021, the Compensation Committee awarded a deferred bonus of $ 75,000 Also on July 2, 2021, the Compensation Committee approved the parameters of the cash bonus for Mr. Higashida (the “Fiscal Year 2022 Cash Bonus”) for fiscal year 2022. Pursuant to Mr. Higashida’s Executive Employment Agreement dated as of August 15, 2017, the Compensation Committee established the relevant performance metrics and goals for determining the amount of the Fiscal Year 2022 Cash Bonus that Mr. Higashida would be entitled to receive, assuming achievement by the Company of the respective target and maximum performance levels under each metric established for fiscal year 2022. The Fiscal Year 2022 Cash Bonus, if any, payable to Mr. Higashida will be determined by the extent to which the Company achieves certain performance objectives relating to the Company’s net revenues and net cash provided by operating activities in fiscal year 2022, with a target Fiscal Year 2022 Cash Bonus opportunity of $ 105,000 210,000 180,000 300,000 Issuance of Options to New Employees On July 29, 2021, the Company issued a total of 115,000 92,000 23,000 These options shall vest and become exercisable either (i) in the case of time-based options, as to 1/3 on each anniversary of each employee’s employment start date, or (ii) in the case of the Performance-Based Options, based on either (a) the Company’s achievement of certain performance milestones established by the Compensation Committee for each fiscal year in the fiscal years ending September 30, 2021, 2022, 2023 and 2024, or (b) the employee’s achievement of certain performance milestones tied to adjusted gross sales established by the Compensation Committee for each fiscal year in the fiscal years ending September 30, 2022, 2023 and 2024.

BASIS OF PRESENTATION AND SUM_2

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
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 former majority owned subsidiary (which was sold as of September 28, 2020, as described below), which has a fiscal year end of September 30. All significant intercompany accounts, balances and transactions have been eliminated upon consolidation. On September 28, 2020, the Company entered into a Stock Transfer Agreement with Eguchi Holdings Co., Ltd. (“EHCL”), pursuant to which the Company sold to EHCL for an aggregate sale price of approximately $ 34,000 70 The Company has two wholly owned international subsidiaries in NuZee KOREA Ltd. (“NuZee KR”) and NuZee Investment Co., Ltd. (“NuZee INV”).
Stock Split	Stock Split On October 28, 2019, we completed a l-for-3 reverse stock split
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, warrants 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, 2021 and June 30, 2020, the total number of common stock equivalents was 8,289,864 1,725,000
Capital Resources	Capital Resources Since its inception, the Company has devoted substantially all of its efforts to business planning, research and development, recruiting management and technical staff, acquiring operating assets and raising capital. The Company has generated limited revenues from its principal operations, and there is no assurance of future revenues. As of June 30, 2021, the Company had cash of $ 12,704,257
Major Customers	Major Customers In the nine months ended June 30, 2021 and 2020, revenue was primarily derived from major customers disclosed below. Nine months ended June 30, 2021: SCHEDULE OF REVENUE BY MAJOR CUSTOMERS Customer Name Sales Amount % of Total Revenue Accounts Receivable Amount % of Total Accounts Customer WP $ 456,247 32 % $ 124,814 39 % Nine months ended June 30, 2020: C ustomer 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 %
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 Company implemented ASU No. 2016-02 on October 1, 2019. The Company does a quarterly analysis of leases to determine if there are any operating leases that require recognition under ASC 842. The Company has 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 The impact of ASU No. 2016-02 (“Leases (Topic 842)” on our consolidated balance sheet beginning October 1, 2020, through the recognition of right-of-use (“ROU”) assets and lease liabilities for operating leases are as follows: SCHEDULE OF ROU ASSETS AND LEASE LIABILITY October 1, 2020 ROU Asset $ 652,197 Lease Liability $ 659,391 During the prior year 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-terminus with the direct-leased property. In September 2020, we entered into an 18 Effective September 1, 2020, we converted our month-to-month sublease in Vista, California to a 17 17 As of June 30, 2021, our operating leases had a weighted average remaining lease term of 1.9 SCHEDULE OF OTHER INFORMATION RELATED TO OPERATING LEASE ROU Asset – October 1, 2020 $ 652,197 Amortization during the period (202,947 ) ROU Asset –June 30, 2021 $ 449,250 Lease Liability – October 1, 2020 $ 659,391 Amortization during the period (193,118 ) Lease Liability – June 30, 2021 $ 466,273 Lease Liability – Short-Term $ 162,674 Lease Liability – Long-Term 303,599 Lease Liability – Total $ 466,273 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, 2021: Amounts due within 12 months of June 30, SCHEDULE OF FUTURE MINIMUM RENTAL PAYMENTS FOR OPERATING LEASES 2022 $ 238,519 2023 126,091 2024 129,873 2025 - 2026 - Total Minimum Lease Payments 494,483 Less Effect of Discounting (28,210 ) Present Value of Future Minimum Lease Payments 466,273 Less Current Portion of Operating Lease Obligations (162,674 ) Long-Term Operating Lease Obligations $ 303,599 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 60 months 124,540 3 years 12.75 8,896 The following summarizes ROU assets under finance leases at June 30, 2021: SUMMARY OF ROU ASSETS UNDER FINANCE LEASES ROU asset-finance lease at September 30, 2020 $ 105,825 Impairment (105,825 ) ROU asset-finance lease at June 30, 2021 $ - The table below summarizes future minimum finance lease payments at June 30, 2021 for the 12 months ended June 30: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS FOR FINANCE LEASES 2022 $ 33,113 2023 33,113 2024 33,113 2025 2,759 2026 - Total Minimum Lease Payments 102,098 Amount representing interest (18,039 ) Present Value of Minimum Lease Payments 84,059 Current Portion of Finance Lease Obligations (26,965 ) Finance Lease Obligations, Less Current Portion $ 57,094 The Company leases office space with terms ranging from month to month to 61 months 251,164 251,207 Cash and non cash activities associated with the leases for the nine months ended June 30, 2021 are as follows: SCHEDULE OF CASH AND NON-CASH ACTIVITIES OF LEASES Operating cash outflows from operating leases: $ 215,046 Operating cash outflows from finance lease: $ 8,896 Financing cash outflows from finance lease: $ 15,939 In September 2020, we subleased the space at 1700 Capital Avenue in Plano, Texas, effective October 1, 2020 under favorable terms that are co-terminus with the original lease ending June 30, 2024. In the nine months ended June 30, 2021, we recognized sublease income of $ 59,439 SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS OF SUBLEASE 2022 $ 122,364 2023 126,017 2024 129,835 2025 — 2026 — Total $ 378,216
Loans	Loans On April 1, 2019, NuZee purchased a delivery van from Ford Motor Credit for $ 41,627 3,500 38,127 60 months 2.9 22,304 27,916 On February 15, 2019 NuZee KR entered into equipment financing for production equipment with ShinHan Bank for $ 60,563 86,518 36 months 4.33 50,206 85,001 The loan payments required for the next five remaining fiscal years are as follows: SCHEDULE OF LOAN PAYMENTS Ford Motor Credit ShinHan Bank Total 2021 (July – September 2021) $ 1,895 $ 12,551 2022 (October 2021 – June 2022) 5,819 37,655 Total Current Portion $ 7,714 $ 50,206 $ 57,920 2022 (July – September 2022) $ 1,895 $ - 2023 7,947 - 2024 4,748 - 2025 - - Total LT Portion $ 14,590 $ - $ 14,590 Grand Total $ 22,304 $ 50,206 $ 72,510
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: ● identification of the contract, or contracts, with a customer; ● identification of the performance obligations in the contract; ● determination of the transaction price; ● allocation of the transaction price to the performance obligations in the contract; and ● recognition of revenue when, or as, we satisfy a performance obligation. 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. The adoption of Topic 606 did not have a material impact on our consolidated financial statements.
Foreign Currency Translation	Foreign Currency Translation The financial position and results of operations of each of the Company’s foreign subsidiaries 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 income (loss) amounted to $ (2,374) (59,510) 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	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, 2021 and September 30, 2020, the carrying value of inventory of $ 428,856 245,370 SCHEDULE OF INVENTORY June 30, 2021 September 30, 2020 Raw materials $ 327,411 $ 176,231 Finished goods 101,445 69,139 Less – Inventory reserve - - Total $ 428,856 $ 245,370
Joint Venture	Joint Venture On January 9, 2020, a joint venture agreement was signed between Industrial Marino, S.A. de C.V. ( 50 313,012 110,000 160,000 43,012 The Company accounts for NLA using the equity method of accounting since the management of day to day operations at NLA ultimately lies with the Company’s joint venture partner as the operations of NLA are based in its partners facilities and our partner appoints the Chairman of the joint Board. As of June 30, 2021, the only activity in NLA was the contribution of two machines as described above and other start up related activities. $ 4,077

BASIS OF PRESENTATION AND SUM_3

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
SCHEDULE OF REVENUE BY MAJOR CUSTOMERS	In the nine months ended June 30, 2021 and 2020, revenue was primarily derived from major customers disclosed below. Nine months ended June 30, 2021: SCHEDULE OF REVENUE BY MAJOR CUSTOMERS Customer Name Sales Amount % of Total Revenue Accounts Receivable Amount % of Total Accounts Customer WP $ 456,247 32 % $ 124,814 39 % Nine months ended June 30, 2020: C ustomer 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 %
SCHEDULE OF ROU ASSETS AND LEASE LIABILITY	The impact of ASU No. 2016-02 (“Leases (Topic 842)” on our consolidated balance sheet beginning October 1, 2020, through the recognition of right-of-use (“ROU”) assets and lease liabilities for operating leases are as follows: SCHEDULE OF ROU ASSETS AND LEASE LIABILITY October 1, 2020 ROU Asset $ 652,197 Lease Liability $ 659,391
SCHEDULE OF OTHER INFORMATION RELATED TO OPERATING LEASE	As of June 30, 2021, our operating leases had a weighted average remaining lease term of 1.9 SCHEDULE OF OTHER INFORMATION RELATED TO OPERATING LEASE ROU Asset – October 1, 2020 $ 652,197 Amortization during the period (202,947 ) ROU Asset –June 30, 2021 $ 449,250 Lease Liability – October 1, 2020 $ 659,391 Amortization during the period (193,118 ) Lease Liability – June 30, 2021 $ 466,273 Lease Liability – Short-Term $ 162,674 Lease Liability – Long-Term 303,599 Lease Liability – Total $ 466,273
SCHEDULE OF FUTURE MINIMUM RENTAL PAYMENTS FOR OPERATING LEASES	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, 2021: Amounts due within 12 months of June 30, SCHEDULE OF FUTURE MINIMUM RENTAL PAYMENTS FOR OPERATING LEASES 2022 $ 238,519 2023 126,091 2024 129,873 2025 - 2026 - Total Minimum Lease Payments 494,483 Less Effect of Discounting (28,210 ) Present Value of Future Minimum Lease Payments 466,273 Less Current Portion of Operating Lease Obligations (162,674 ) Long-Term Operating Lease Obligations $ 303,599
SUMMARY OF ROU ASSETS UNDER FINANCE LEASES	The following summarizes ROU assets under finance leases at June 30, 2021: SUMMARY OF ROU ASSETS UNDER FINANCE LEASES ROU asset-finance lease at September 30, 2020 $ 105,825 Impairment (105,825 ) ROU asset-finance lease at June 30, 2021 $ -
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS FOR FINANCE LEASES	The table below summarizes future minimum finance lease payments at June 30, 2021 for the 12 months ended June 30: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS FOR FINANCE LEASES 2022 $ 33,113 2023 33,113 2024 33,113 2025 2,759 2026 - Total Minimum Lease Payments 102,098 Amount representing interest (18,039 ) Present Value of Minimum Lease Payments 84,059 Current Portion of Finance Lease Obligations (26,965 ) Finance Lease Obligations, Less Current Portion $ 57,094
SCHEDULE OF CASH AND NON-CASH ACTIVITIES OF LEASES	Cash and non cash activities associated with the leases for the nine months ended June 30, 2021 are as follows: SCHEDULE OF CASH AND NON-CASH ACTIVITIES OF LEASES Operating cash outflows from operating leases: $ 215,046 Operating cash outflows from finance lease: $ 8,896 Financing cash outflows from finance lease: $ 15,939
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS OF SUBLEASE	SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS OF SUBLEASE 2022 $ 122,364 2023 126,017 2024 129,835 2025 — 2026 — Total $ 378,216
SCHEDULE OF LOAN PAYMENTS	The loan payments required for the next five remaining fiscal years are as follows: SCHEDULE OF LOAN PAYMENTS Ford Motor Credit ShinHan Bank Total 2021 (July – September 2021) $ 1,895 $ 12,551 2022 (October 2021 – June 2022) 5,819 37,655 Total Current Portion $ 7,714 $ 50,206 $ 57,920 2022 (July – September 2022) $ 1,895 $ - 2023 7,947 - 2024 4,748 - 2025 - - Total LT Portion $ 14,590 $ - $ 14,590 Grand Total $ 22,304 $ 50,206 $ 72,510
SCHEDULE OF INVENTORY	SCHEDULE OF INVENTORY June 30, 2021 September 30, 2020 Raw materials $ 327,411 $ 176,231 Finished goods 101,445 69,139 Less – Inventory reserve - - Total $ 428,856 $ 245,370

GEOGRAPHIC CONCENTRATION (Table

GEOGRAPHIC CONCENTRATION (Tables)	9 Months Ended
	Jun. 30, 2021
Risks and Uncertainties [Abstract]
SCHEDULE OF GEOGRAPHIC OPERATIONS	Geographic Concentrations SCHEDULE OF GEOGRAPHIC OPERATIONS Nine Months Ended Nine Months Ended June 30, 2021 June 30, 2020 Net Revenue: North America $ 1,077,986 $ 756,000 Japan - 258,526 South Korea 364,097 117,036 Net Revenue $ 1,442,083 $ 1,131,562 Property and equipment, net: As of June 30, 2021 As of September 30, 2020 North America $ 573,631 $ 1,422,575 Japan 1,808 2,813 South Korea 232,409 242,960 Property and equipment, net $ 807,848 $ 1,668,348

STOCK OPTIONS AND WARRANTS (Tab

STOCK OPTIONS AND WARRANTS (Tables)	9 Months Ended
	Jun. 30, 2021
Share-based Payment Arrangement [Abstract]
SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS FOR FAIR VALUE MEASUREMENT OF OPTIONS GRANTED	The Black-Scholes option pricing model was used with the following weighted average assumptions for options granted during the nine months ended June 30, 2021: SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS FOR FAIR VALUE MEASUREMENT OF OPTIONS GRANTED For non-employees, employees and independent Board members June 30, 2021 Risk-free interest rate 0.78 1.71 % Expected option life 10 years Expected volatility 300 311 % Expected dividend yield 0.00 % Exercise price $ 2.91 16.79
SUMMARY OF STOCK OPTION ACTIVITY	The following table summarizes stock option activity for nine months ended June 30, 2021: SUMMARY OF STOCK OPTION ACTIVITY Number of Shares Weighted Average Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value Outstanding at September 30, 2020 1,620,667 $ 5.74 7.3 $ 19,112,118 Granted 2,154,938 5.87 Exercised (6,000 ) 1.53 Expired - - Forfeited (311,656 ) 12.39 Outstanding at June 30, 2021 3,457,949 $ 5.23 8.3 $ 1,363,638 Exercisable at June 30, 2021 1,397,975 $ 6.01 7.7 $ 790,939
SUMMARY OF UNVESTED SHARES	A summary of the status of the Company’s nonvested options as of June 30, 2021, is presented below: SUMMARY OF UNVESTED SHARES Nonvested options Number of nonvested shares Weighted average grant date fair value Nonvested shares at September 30, 2020 762,917 $ 10.60 Granted 2,154,938 5.87 Forfeited (158,328 ) 12.11 Vested (699,554 ) 7.59 Nonvested shares at June 30, 2021 2,059,973 6.56
SCHEDULE OF WARRANT ACTIVITY	The following table summarizes warrant activity for the nine months ended June 30, 2021: SCHEDULE OF WARRANT ACTIVITY Number of Shares Issuable Upon Exercise of Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value Outstanding at September 30, 2020 40,250 $ 9.00 4.7 $ 321,598 Issued 4,791,665 4.95 Exercised - - Expired - - Outstanding June 30, 2021 4,831,915 $ 4.98 4.7 - Exercisable at June 30, 2021 4,831,915 $ 4.98 4.7 $ -

SCHEDULE OF REVENUE BY MAJOR CU

SCHEDULE OF REVENUE BY MAJOR CUSTOMERS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Product Information [Line Items]
Sales Amount	$ 510,032	$ 191,962	$ 1,442,083	$ 1,131,562
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer WP [Member]
Product Information [Line Items]
Sales Amount			$ 456,247	$ 259,925
Concentration risk percentage			32.00%	23.00%
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer K [Member]
Product Information [Line Items]
Sales Amount				$ 284,099
Concentration risk percentage				25.00%
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer J [Member]
Product Information [Line Items]
Sales Amount				$ 188,574
Concentration risk percentage				17.00%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer WP [Member]
Product Information [Line Items]
Concentration risk percentage			39.00%	11.00%
Accounts Receivable Amount	$ 124,814	7,767	$ 124,814	$ 7,767
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer K [Member]
Product Information [Line Items]
Concentration risk percentage				0.00%
Accounts Receivable Amount
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer J [Member]
Product Information [Line Items]
Concentration risk percentage				0.00%
Accounts Receivable Amount		$ 175		$ 175

SCHEDULE OF ROU ASSETS AND LEAS

SCHEDULE OF ROU ASSETS AND LEASE LIABILITY (Details) - USD ($)	Jun. 30, 2021	Oct. 02, 2020	Sep. 30, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
ROU Asset	$ 449,250		$ 652,197
Lease Liability	$ 466,273		$ 659,391
Accounting Standards Update 2016-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
ROU Asset		$ 652,197
Lease Liability		$ 659,391

SCHEDULE OF OTHER INFORMATION R

SCHEDULE OF OTHER INFORMATION RELATED TO OPERATING LEASE (Details) - USD ($)	9 Months Ended
	Jun. 30, 2021	Sep. 30, 2020
Accounting Policies [Abstract]
ROU Asset	$ 652,197
Amortization during the period	(202,947)
ROU Asset	449,250
Lease Liability	659,391
Amortization during the period	(193,118)
Lease Liability	466,273
Lease Liability - Short-Term	162,674	$ 263,678
Lease Liability - Long-Term	303,599	395,713
Lease Liability - Total	$ 466,273	$ 659,391

SCHEDULE OF FUTURE MINIMUM RENT

SCHEDULE OF FUTURE MINIMUM RENTAL PAYMENTS FOR OPERATING LEASES (Details) - USD ($)	Jun. 30, 2021	Sep. 30, 2020
Accounting Policies [Abstract]
2022	$ 238,519
2023	126,091
2024	129,873
2025
2026
Total Minimum Lease Payments	494,483
Less Effect of Discounting	(28,210)
Present Value of Future Minimum Lease Payments	466,273	$ 659,391
Less Current Portion of Operating Lease Obligations	(162,674)	(263,678)
Long-Term Operating Lease Obligations	$ 303,599	$ 395,713

SUMMARY OF ROU ASSETS UNDER FIN

SUMMARY OF ROU ASSETS UNDER FINANCE LEASES (Details)	9 Months Ended
	Jun. 30, 2021USD ($)
Lessor, Lease, Description [Line Items]
ROU asset-finance lease, beginning balance	$ 105,825
ROU asset-finance lease, ending balance
Finance Lease [Member]
Lessor, Lease, Description [Line Items]
ROU asset-finance lease, beginning balance	105,825
Impairment	(105,825)
ROU asset-finance lease, ending balance

SCHEDULE OF FUTURE MINIMUM LEAS

SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS FOR FINANCE LEASES (Details)	Jun. 30, 2021USD ($)
Accounting Policies [Abstract]
2022	$ 33,113
2023	33,113
2024	33,113
2025	2,759
2026
Total Minimum Lease Payments	102,098
Amount representing interest	(18,039)
Present Value of Minimum Lease Payments	84,059
Current Portion of Finance Lease Obligations	(26,965)
Finance Lease Obligations, Less Current Portion	$ 57,094

SCHEDULE OF CASH AND NON-CASH A

SCHEDULE OF CASH AND NON-CASH ACTIVITIES OF LEASES (Details)	9 Months Ended
	Jun. 30, 2021USD ($)
Accounting Policies [Abstract]
Operating cash outflows from operating leases:	$ 215,046
Operating cash outflows from finance lease:	8,896
Financing cash outflows from finance lease:	$ 15,939

SCHEDULE OF FUTURE MINIMUM LE_2

SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS OF SUBLEASE (Details)	Jun. 30, 2021USD ($)
Accounting Policies [Abstract]
2022	$ 122,364
2023	126,017
2024	129,835
2025
2026
Total	$ 378,216

SCHEDULE OF LOAN PAYMENTS (Deta

SCHEDULE OF LOAN PAYMENTS (Details)	Jun. 30, 2021USD ($)
Summary of Investment Holdings [Line Items]
Total Current Portion	$ 57,920
Total LT Portion	14,590
Total	72,510
Ford Motor Credit [Member]
Summary of Investment Holdings [Line Items]
2021 (July – September 2021)	1,895
2022 (October 2021 – June 2022)	5,819
Total Current Portion	7,714
2022 (July – September 2022)	1,895
2023	7,947
2024	4,748
2025
Total LT Portion	14,590
Total	22,304
ShinHan Bank [Member]
Summary of Investment Holdings [Line Items]
2021 (July – September 2021)	12,551
2022 (October 2021 – June 2022)	37,655
Total Current Portion	50,206
2022 (July – September 2022)
2023
2024
2025
Total LT Portion
Total	$ 50,206

SCHEDULE OF INVENTORY (Details)

SCHEDULE OF INVENTORY (Details) - USD ($)	Jun. 30, 2021	Sep. 30, 2020
Accounting Policies [Abstract]
Raw materials	$ 327,411	$ 176,231
Finished goods	101,445	69,139
Less – Inventory reserve
Total	$ 428,856	$ 245,370

BASIS OF PRESENTATION AND SUM_4

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)

Sep. 28, 2020

Sep. 01, 2020

Oct. 28, 2019

Oct. 09, 2019

Jun. 28, 2019

Apr. 02, 2019

Feb. 15, 2019

Sep. 30, 2020

Mar. 31, 2021

Dec. 31, 2020

Jun. 30, 2020

Dec. 31, 2019

Jun. 30, 2021

Jun. 30, 2021

Jun. 30, 2020

Jan. 09, 2020

Property, Plant and Equipment [Line Items]

Common stock issued value

$ 11,017,304

$ 2,683,980

$ 4,648,174

$ 1,994,523

Reverse stock split

l-for-3 reverse stock split

Common stock equivalents

8,289,864

1,725,000

Cash

$ 4,398,545

$ 12,704,257

$ 12,704,257

Financing lease remaining lease term

3 years

3 years

Financing lease discount rate

12.75%

12.75%

Interest expense on finance lease liabilities

$ 8,896

Sub lease, income

59,439

Foreign currency translation adjustment

(2,374)

$ (59,510)

Inventory

245,370

$ 428,856

428,856

Cash contribution

110,000

Loss from equity method investments

4,077

Ford Motor Credit [Member]

Property, Plant and Equipment [Line Items]

Debt outstanding

27,916

22,304

22,304

ShinHan Bank [Member]

Property, Plant and Equipment [Line Items]

Debt outstanding

$ 85,001

$ 50,206

$ 50,206

Vehicles [Member] | Ford Motor Credit [Member]

Property, Plant and Equipment [Line Items]

Purchase price

$ 41,627

Payment to purchase equipment

3,500

Financed amount

$ 38,127

Debt term

60 months

Interest rate

2.90%

General and Administrative Expense [Member]

Property, Plant and Equipment [Line Items]

Weighted average remaining lease term

61 months

61 months

Rent expense

$ 251,164

$ 251,207

Plano, Texas [Member]

Property, Plant and Equipment [Line Items]

Sublease description

In September 2020, we entered into an 18-month sublease effective October 1, 2020 reducing our space and term in Plano, Texas. Accordingly, this lease has been added to our right-of-use asset balance at September 30, 2020. This lease is for the Company’s principal executive office located at 1401 Capital Avenue, Suite B, Plano, Texas 75074.

Subease term

18 years

Vista, California [Member]

Property, Plant and Equipment [Line Items]

Sublease description

Effective September 1, 2020, we converted our month-to-month sublease in Vista, California to a 17-month sublease ending January 31, 2022 which is co-terminus with our direct lease in Vista. The month-to-month sublease was recognized as a right-of-use asset in our June 30, 2020 analysis. The terms of the 17-month lease are similar to the terms used to value the right-of-use asset at June 30, 2020.

Subease term

17 years

Maximum [Member]

Property, Plant and Equipment [Line Items]

Operating Lease, remaining lease term

12 months

12 months

Joint Venture Agreement [Member]

Property, Plant and Equipment [Line Items]

Machine carrying cost

$ 313,012

NuZee JAPAN Co., Ltd [Member] | Stock Transfer Agreement [Member]

Property, Plant and Equipment [Line Items]

Common stock issued value

$ 34,000

Equity percentage

70.00%

Alliance Funding Group [Member]

Property, Plant and Equipment [Line Items]

Payment of equipment on lease

$ 124,540

Alliance Funding Group [Member] | Lease Agreement [Member]

Property, Plant and Equipment [Line Items]

Payment of equipment on lease

$ 2,987

Weighted average remaining lease term

60 months

NuZee Korea Ltd [Member] | Equipment [Member] | ShinHan Bank [Member]

Property, Plant and Equipment [Line Items]

Financed amount

$ 60,563

Debt term

36 months

Interest rate

4.33%

Increase in debt

$ 86,518

Industrial Marino, S.A. de C.V. and NuZee Latin America, S.A. de C.V. [Member] | Joint Venture Agreement [Member]

Property, Plant and Equipment [Line Items]

Equity percentage

50.00%

NLA [Member]

Property, Plant and Equipment [Line Items]

Gain on investments

$ 160,000

Loss on investments

$ 43,012

SCHEDULE OF GEOGRAPHIC OPERATIO

SCHEDULE OF GEOGRAPHIC OPERATIONS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2020
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Net Revenue	$ 510,032	$ 191,962	$ 1,442,083	$ 1,131,562
Property and equipment, net	807,848	1,668,348	807,848	1,668,348	$ 1,668,348
North America [Member]
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Net Revenue			1,077,986	756,000
Property and equipment, net	573,631	1,422,575	573,631	1,422,575
JAPAN
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Net Revenue				258,526
Property and equipment, net	1,808	2,813	1,808	2,813
KOREA, REPUBLIC OF
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Net Revenue			364,097	117,036
Property and equipment, net	$ 232,409	$ 242,960	$ 232,409	$ 242,960

GEOGRAPHIC CONCENTRATION (Detai

GEOGRAPHIC CONCENTRATION (Details Narrative) - USD ($)	9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Impairment on property and equipment	$ 840,391
North America [Member]
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Assets write off	840,391
Impairment on ROU assets	105,825
Impairment on property and equipment	$ 734,566

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative)	9 Months Ended
	Jun. 30, 2021USD ($)
NuZee Latin America [Member]
Related Party Transaction [Line Items]
Revenues from related parties	$ 28,299

ISSUANCE OF EQUITY SECURITIES (

ISSUANCE OF EQUITY SECURITIES (Details Narrative) - USD ($)	Mar. 19, 2021	Mar. 11, 2021	Jan. 11, 2021	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2021	Jun. 30, 2020	Jun. 23, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net proceeds from issuance common stock								$ 13,701,284	$ 6,867,786
Warrant exercise price										$ 9
Stock option exercised during period								6,000
Proceeds from stock option exercise								$ 9,180
Shanoop Kothari [Member] | 2019 Stock Incentive Plan [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock award granted, during period			152,215
Vesting of shares, description			35,739 net shares were issued to Mr. Kothari following the forfeiture of 15,000 vested shares to cover taxes
Shanoop Kothari [Member] | 2019 Stock Incentive Plan [Member] | Vesting Immediately [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of shares vested during period			50,739
Shanoop Kothari [Member] | 2019 Stock Incentive Plan [Member] | Vest on March 31, 2021 [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of shares vested during period			50,739
Shanoop Kothari [Member] | 2019 Stock Incentive Plan [Member] | Vest on March 31, 2022 [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Number of shares vested during period			50,737
Stock Options [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Stock option exercised during period								6,000
Proceeds from stock option exercise								$ 9,180
Underwritten, Over Allotment Option [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Shares sold during period	2,777,777
Net proceeds from public offering	$ 11,017,304
Issuance of warrants, description	2,777,777 units (“Units”) in an underwritten registered public offering for aggregate net proceeds of $11,017,304 which includes the proceeds from the underwriter’s full exercise of their overallotment option with respect to the warrant component of the Units, as further described below, with each Unit consisting of (a) one share of our common stock, (b) one Series A warrant (each, a “Series A Warrant” and collectively, the “Series A Warrants”) to purchase one share of our common stock with an initial exercise price of $4.50 per whole share, and (c) one Series B warrant (each, a “Series B Warrant” and collectively, the “Series B Warrants” and together with the Series A Warrants, the “Warrants”) to purchase one-half share of our common stock with an initial exercise price of $5.85 per whole share, and (ii) 416,666 Series A Warrants and 416,666 Series B Warrants, each pursuant to the underwriter’s full exercise of their overallotment option with respect to such warrants.
ATM Agreement [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Shares sold during period		50,000,000
Stock issuance expense								$ 477,605
Common Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Shares issued during period, shares				2,782,111	324,959	700,000	111,738	256,338
Shares issued, price per share								$ 9.14
Net proceeds from issuance common stock								$ 2,149,486
Stock option exercised during period					6,000
Common Stock [Member] | Triton Funds LP [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Shares sold during period								72,955
Net proceeds from public offering								$ 534,494
Series A Warrant [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Warrant exercise price	$ 4.50
Series A Warrant [Member] | Underwritten, Over Allotment Option [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Shares sold during period	416,666
Series B Warrant [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Warrant exercise price	$ 5.85
Series B Warrant [Member] | Underwritten, Over Allotment Option [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Shares sold during period	416,666

SCHEDULE OF WEIGHTED AVERAGE AS

SCHEDULE OF WEIGHTED AVERAGE ASSUMPTIONS FOR FAIR VALUE MEASUREMENT OF OPTIONS GRANTED (Details) - For Non-Employees and Indpendent Board [Member]	9 Months Ended
	Jun. 30, 2021$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate, minimum	0.78%
Risk-free interest rate, maximum	1.71%
Expected option life	10 years
Expected volatility, minimum	300.00%
Expected volatility, maximum	311.00%
Expected dividend yield	0.00%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price	$ 2.91
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price	$ 16.79

SUMMARY OF STOCK OPTION ACTIVIT

SUMMARY OF STOCK OPTION ACTIVITY (Details)	9 Months Ended
	Jun. 30, 2021USD ($)$ / sharesshares
Share-based Payment Arrangement [Abstract]
Number of Options Outstanding, Beginning | shares	1,620,667
Weighted Average Exercise Price Outstanding, Beginning | $ / shares	$ 5.74
Weighted Average Remaining Contractual Life (years) Stock Options Outstanding, Beginning	7 years 3 months 18 days
Aggregate Intrinsic Value Options Outstanding, Beginning | $	$ 19,112,118
Number of Options, Granted | shares	2,154,938
Weighted Average Exercise Price, Granted | $ / shares	$ 5.87
Number of Options, Exercised | shares	(6,000)
Weighted Average Exercise Price, Exercised | $ / shares	$ 1.53
Number of Options, Expired | shares
Weighted Average Exercise Price, Expired | $ / shares
Number of Options, Forfeited | shares	(311,656)
Weighted Average Exercise Price, Forfeited | $ / shares	$ 12.39
Number of Options Outstanding, Ending | shares	3,457,949
Weighted Average Exercise Price Outstanding, Ending | $ / shares	$ 5.23
Weighted Average Remaining Contractual Life (years) Stock Options Outstanding, Ending Balance	8 years 3 months 18 days
Aggregate Intrinsic Value Options Outstanding, Ending Balance | $	$ 1,363,638
Number of Options Exercisable | shares	1,397,975
Weighted Average Exercise Price, Exercisable | $ / shares	$ 6.01
Weighted Average Remaining Contractual Life (years) Stock Options, Exercisable	7 years 8 months 12 days
Aggregate Intrinsic Value Options, Exercisable | $	$ 790,939

SUMMARY OF UNVESTED SHARES (Det

SUMMARY OF UNVESTED SHARES (Details)	9 Months Ended
	Jun. 30, 2021$ / sharesshares
Share-based Payment Arrangement [Abstract]
Number of Nonvested Shares, Beginning | shares	762,917
Weighted Average Grant Date Fair Value Nonvested Shares Beginning | $ / shares	$ 10.60
Number of Nonvested Shares, Granted | shares	2,154,938
Weighted Average Grant Date Fair Value, Granted | $ / shares	$ 5.87
Number of Nonvested Shares, Forfeited | shares	(158,328)
Weighted Average Grant Date Fair Value, Forfeited | $ / shares	$ 12.11
Number of Nonvested Shares, Vested | shares	(699,554)
Weighted Average Grant Date Fair Value, Vested | $ / shares	$ 7.59
Number of Nonvested Shares, Ending | shares	2,059,973
Weighted Average Grant Date Fair Value Nonvested Shares Ending | $ / shares	$ 6.56

SCHEDULE OF WARRANT ACTIVITY (D

SCHEDULE OF WARRANT ACTIVITY (Details)	9 Months Ended
	Jun. 30, 2021USD ($)$ / sharesshares
Share-based Payment Arrangement [Abstract]
Number of Warrants Outstanding, Beginning | shares	40,250
Weighted Average Exercise Price, Beginning | $ / shares	$ 9
Weighted Average Remaining Contractual Life (years) Stock Warrants, Beginning Balance	4 years 8 months 12 days
Aggregate Intrinsic Value Warrants Outstanding, Beginning | $	$ 321,598
Number of Warrants, Issued | shares	4,791,665
Weighted Average Exercise Price, Issued | $ / shares	$ 4.95
Number of Warrants, Exercised | shares
Weighted Average Exercise Price, Exercised | $ / shares
Number of Warrants, Expired | shares
Weighted Average Exercise Price, Expired | $ / shares
Number of Warrants Outstanding, Ending | shares	4,831,915
Weighted Average Exercise Price, Ending | $ / shares	$ 4.98
Weighted Average Remaining Contractual Life (years) Stock Warrants, Ending Balance	4 years 8 months 12 days
Aggregate Intrinsic Value Warrants Outstanding, Ending | $
Number of Warrants Exercisable | shares	4,831,915
Weighted Average Exercise Price, Exercisable | $ / shares	$ 4.98
Weighted Average Remaining Contractual Life (years) Stock Warrants, Exercisable	4 years 8 months 12 days
Aggregate Intrinsic Value Warrants, Exercisable | $

STOCK OPTIONS AND WARRANTS (Det

STOCK OPTIONS AND WARRANTS (Details Narrative) - USD ($)	Mar. 19, 2021	Jun. 23, 2020	Mar. 31, 2021	Jun. 30, 2021	Jun. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option vest and exercisable period				7 years 8 months 12 days
Shares issued				2,154,938
Stock option exercise price				$ 1.53
Options expiration term				10 years
Stock option forfeiture during period				311,656
Shares were issued upon the exercise of stock options				6,000
Warrant to purchase common stock		40,250
Warrant exercise price		$ 9
Warrants exercisable date		Dec. 23, 2020
Warrant expiration date		Jun. 18, 2025
Series A Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrant exercise price	$ 4.50
Warrants term	5 years
Series B Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrant exercise price	$ 5.85
Warrants term	5 years
Termination of Employment [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option forfeiture during period				311,656
Underwritten, Over Allotment Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of warrants, description	2,777,777 units (“Units”) in an underwritten registered public offering for aggregate net proceeds of $11,017,304 which includes the proceeds from the underwriter’s full exercise of their overallotment option with respect to the warrant component of the Units, as further described below, with each Unit consisting of (a) one share of our common stock, (b) one Series A warrant (each, a “Series A Warrant” and collectively, the “Series A Warrants”) to purchase one share of our common stock with an initial exercise price of $4.50 per whole share, and (c) one Series B warrant (each, a “Series B Warrant” and collectively, the “Series B Warrants” and together with the Series A Warrants, the “Warrants”) to purchase one-half share of our common stock with an initial exercise price of $5.85 per whole share, and (ii) 416,666 Series A Warrants and 416,666 Series B Warrants, each pursuant to the underwriter’s full exercise of their overallotment option with respect to such warrants.
Shares sold during period	2,777,777
Underwritten, Over Allotment Option [Member] | Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of warrants, description	(i) 2,777,777 units (the “Units”), at a price to the public of $4.50 per Unit, with each Unit consisting of (a) one share of our common stock, (b) one Series A Warrant, and (c) one Series B Warrant, and (ii) 416,666 Series A Warrants and 416,666 Series B Warrants, each pursuant to the underwriter’s full exercise of their overallotment option with respect to such warrants.
Shares sold during period	2,777,777
Underwritten, Over Allotment Option [Member] | Series A Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares sold during period	416,666
Underwritten, Over Allotment Option [Member] | Series B Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares sold during period	416,666
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option exercise price				$ 2.91
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option exercise price				$ 16.79
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued				622,000
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option vest and exercisable period				1 year 6 months
Shares were issued upon the exercise of stock options				6,000
Stock option expenses				$ 8,002,917	$ 4,505,498
Unamortized option expense				$ 6,520,427
Independent Contractors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options issued to independent contractors				15,000
Stock option vest and exercisable period				3 years
Vesting percentage description				33% of the options vesting on each anniversary of the grant date.
Independent Board Members [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options issued to independent contractors				1,369,938
Stock option vest and exercisable period			3 years
Vesting percentage description				50% of the options vesting immediately and the remaining 50% vesting 25% on each of the first two anniversaries of the grant date.
Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options issued to independent contractors				770,000
Vesting percentage description				these options shall vest and become exercisable either (i) in the case of time-based options, as to 1/3 on each anniversary of the grant date, or (ii) in the case of performance-based options (the “Performance-Based Options”), based on the Company’s achievement of certain performance milestones established by the Compensation Committee for each fiscal year in the fiscal years ending September 30, 2021, 2022, 2023 and 2024.

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - USD ($)	Jul. 29, 2021	Jul. 02, 2021	May 23, 2021	May 22, 2021	Jun. 30, 2021
Subsequent Event [Line Items]
Stock options, exercise price					$ 5.87
Options expiration period					10 years
Masateru Higashida, President and CEO [Member] | Nonqualified Performance-based Options [Member]
Subsequent Event [Line Items]
Annual base salary			$ 300,000	$ 180,000
Subsequent Event [Member] | Shanoop Kothari [Member]
Subsequent Event [Line Items]
Outstanding restricted shares accelerated to vest		50,737
Subsequent Event [Member] | Mr.Shearer, CFO [Member]
Subsequent Event [Line Items]
Number of stock award granted for common stock		200,000
Stock options, exercise price		$ 3.12
Options expiration period		10 years
Subsequent Event [Member] | Mr.Shearer, CFO [Member] | First Anniversary [Member]
Subsequent Event [Line Items]
Number of stock award granted for common stock		80,000
Subsequent Event [Member] | Mr.Shearer, CFO [Member] | Second Anniversary [Member]
Subsequent Event [Line Items]
Number of stock award granted for common stock		60,000
Subsequent Event [Member] | Mr.Shearer, CFO [Member] | Third Anniversary [Member]
Subsequent Event [Line Items]
Number of stock award granted for common stock		60,000
Subsequent Event [Member] | Masateru Higashida, President and CEO [Member]
Subsequent Event [Line Items]
Deferred bonus payable		$ 75,000
Cash bonus opportunity		105,000
Subsequent Event [Member] | Masateru Higashida, President and CEO [Member] | Maximum [Member]
Subsequent Event [Line Items]
Cash bonus opportunity		$ 210,000
Subsequent Event [Member] | Masateru Higashida, President and CEO [Member] | Nonqualified Performance-based Options [Member]
Subsequent Event [Line Items]
Number of stock award granted for common stock		896,743
Stock options, exercise price		$ 3.12
Options expiration period		10 years
Vesting of shares, description		The Options will vest, if at all, based on the extent to which the Company achieves certain performance objectives relating to our earnings before income taxes in each of the fiscal years ending September 30, 2022 (“fiscal year 2022”), September 30, 2023 (“fiscal year 2023”) and September 30, 2024 (“fiscal year 2024”). Pursuant to the award agreement, (i) 179,349 Options shall vest, if at all, in fiscal year 2022, (ii) 269,023 Options shall vest, if at all, in fiscal year 2023, and (iii) 448,371 Options shall vest, if at all, in fiscal year 2024, in each case based upon our achievement of a specified amount of earnings before income taxes in the respective fiscal year.
Subsequent Event [Member] | Masateru Higashida, President and CEO [Member] | 2022 [Member] | Nonqualified Performance-based Options [Member]
Subsequent Event [Line Items]
Number of stock award granted for common stock		179,349
Subsequent Event [Member] | Masateru Higashida, President and CEO [Member] | 2023 [Member] | Nonqualified Performance-based Options [Member]
Subsequent Event [Line Items]
Number of stock award granted for common stock		269,023
Subsequent Event [Member] | Masateru Higashida, President and CEO [Member] | 2024 [Member] | Nonqualified Performance-based Options [Member]
Subsequent Event [Line Items]
Number of stock award granted for common stock		448,371
Subsequent Event [Member] | New Employees [Member]
Subsequent Event [Line Items]
Number of stock award granted for common stock	115,000
Vesting of shares, description		These options shall vest and become exercisable either (i) in the case of time-based options, as to 1/3 on each anniversary of each employee’s employment start date, or (ii) in the case of the Performance-Based Options, based on either (a) the Company’s achievement of certain performance milestones established by the Compensation Committee for each fiscal year in the fiscal years ending September 30, 2021, 2022, 2023 and 2024, or (b) the employee’s achievement of certain performance milestones tied to adjusted gross sales established by the Compensation Committee for each fiscal year in the fiscal years ending September 30, 2022, 2023 and 2024.
Subsequent Event [Member] | New Employees [Member] | Nonqualified Performance-based Options [Member]
Subsequent Event [Line Items]
Number of stock award granted for common stock	92,000
Subsequent Event [Member] | New Employees [Member] | Time-based Options [Member]
Subsequent Event [Line Items]
Number of stock award granted for common stock	23,000