Cover
Cover - shares | 3 Months Ended | |
Dec. 31, 2023 | Apr. 26, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Dec. 31, 2023 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2024 | |
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 | 2865 Scott St. Suite 107 | |
Entity Address, City or Town | Vista | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92081 | |
City Area Code | (760) | |
Local Phone Number | 295-2408 | |
Title of 12(b) Security | Common Stock, $0.00001 par value | |
Trading Symbol | NUZE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,298,414 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Dec. 31, 2023 | Sep. 30, 2023 |
Current assets: | ||
Cash | $ 432,154 | $ 1,373,101 |
Accounts receivable, net | 1,129,500 | 586,878 |
Inventories, net | 1,253,646 | 998,070 |
Prepaid expenses and other current assets | 389,614 | 418,200 |
Total current assets | 3,204,914 | 3,376,249 |
Property and equipment, net | 584,119 | 309,555 |
Other assets: | ||
Right-of-use asset - operating lease | 440,711 | 403,258 |
Investment in unconsolidated affiliate | 160,208 | 162,259 |
Intangible assets, net | 102,500 | 110,000 |
Other assets | 80,374 | 79,677 |
Total other assets | 783,793 | 755,194 |
Total assets | 4,572,826 | 4,440,998 |
Current liabilities: | ||
Accounts payable and accrued expenses | 2,534,408 | 1,903,923 |
Current portion of long-term loan payable | 2,732 | 4,753 |
Current portion of lease liability - operating lease | 345,045 | 216,128 |
Current portion of lease liability - finance lease | 18,251 | 26,048 |
Deferred income | 305,432 | 379,795 |
Other current liabilities | 30,478 | 25,756 |
Total current liabilities | 3,236,346 | 2,556,403 |
Non-current liabilities: | ||
Lease liability - operating lease, net of current portion | 34,831 | 162,301 |
Lease liability - finance lease, net of current portion | ||
Loan payable - long term, net of current portion | ||
Other noncurrent liabilities | 315,210 | 47,937 |
Total Non-current liabilities | 350,041 | 210,238 |
Total liabilities | 3,586,387 | 2,766,641 |
Stockholders’ equity: | ||
Common stock; 200,000,000 shares authorized, $0.00001 par value; 1,284,194 and 748,644 shares issued and outstanding as of December 31, 2023, and September 30, 2023, respectively | 13 | 8 |
Additional paid in capital | 76,344,123 | 74,925,843 |
Accumulated deficit | (75,520,598) | (73,371,987) |
Accumulated other comprehensive income | 162,901 | 120,493 |
Total stockholders’ equity | 986,439 | 1,674,357 |
Total liabilities and stockholders’ equity | $ 4,572,826 | $ 4,440,998 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Dec. 31, 2023 | Sep. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares issued | 1,284,194 | 748,644 |
Common stock, shares outstanding | 1,284,194 | 748,644 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||
Revenues, net | $ 1,353,986 | $ 1,136,348 |
Cost of sales | 1,178,707 | 1,060,816 |
Gross profit | 175,279 | 75,532 |
Operating expenses | 2,318,234 | 2,277,200 |
Loss from operations | (2,142,955) | (2,201,668) |
Loss from equity method investment | (2,051) | (1,823) |
Other income | 47,011 | 50,737 |
Other expense | (50,100) | (35,790) |
Interest income (expense), net | (516) | 5,338 |
Net loss | $ (2,148,611) | $ (2,183,206) |
Basic loss per common share | $ (1.84) | $ (3.23) |
Diluted loss per common share | $ (1.84) | $ (3.23) |
Basic weighted average number of common stock outstanding | 1,168,221 | 676,422 |
Diluted weighted average number of common stock outstanding | 1,168,221 | 676,422 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||
Net loss | $ (2,148,611) | $ (2,183,206) |
Foreign currency translation | 42,408 | 115,583 |
Total other comprehensive income net of tax | 42,408 | 115,583 |
Comprehensive loss | $ (2,106,203) | $ (2,067,623) |
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 |
Balance at Sep. 30, 2022 | $ 7 | $ 74,281,418 | $ (64,622,520) | $ 83,894 | $ 9,742,799 |
Balance, shares at Sep. 30, 2022 | 676,229 | ||||
Stock option expense | 197,108 | 197,108 | |||
Other comprehensive income | 115,583 | 115,583 | |||
Net loss | (2,183,206) | (2,183,206) | |||
Restricted stock compensation | 62,839 | 62,839 | |||
Round-up shares issued in reverse split | |||||
Round-up shares issued in reverse split, shares | 8,859 | ||||
Balance at Dec. 31, 2022 | $ 7 | 74,541,365 | (66,805,726) | 199,477 | 7,935,123 |
Balance, shares at Dec. 31, 2022 | 685,088 | ||||
Balance at Sep. 30, 2023 | $ 8 | 74,925,843 | (73,371,987) | 120,493 | 1,674,357 |
Balance, shares at Sep. 30, 2023 | 748,644 | ||||
Common Stock issued for cash | $ 5 | 1,277,113 | 1,277,118 | ||
Common Stock issued for cash, shares | 488,750 | ||||
Stock option expense | 11,505 | 11,505 | |||
Issued private placement | 129,662 | 129,662 | |||
Issued private placement, shares | 46,800 | ||||
Other comprehensive income | 42,408 | 42,408 | |||
Net loss | (2,148,611) | (2,148,611) | |||
Balance at Dec. 31, 2023 | $ 13 | $ 76,344,123 | $ (75,520,598) | $ 162,901 | $ 986,439 |
Balance, shares at Dec. 31, 2023 | 1,284,194 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating activities: | ||
Net loss | $ (2,148,611) | $ (2,183,206) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 39,980 | 73,805 |
Noncash lease expense | 68,372 | 73,103 |
Stock option expense | 11,505 | 197,108 |
Restricted stock compensation | 62,839 | |
Bad debt expense | 65,608 | |
Loss from equity method investment | 2,051 | 1,823 |
Change in operating assets and liabilities: | ||
Accounts receivable | (542,622) | (374,253) |
Inventories | (255,576) | (141,906) |
Prepaid expenses and other current assets | (88,033) | 171,509 |
Other assets | (697) | (14,017) |
Accounts payable | 702,295 | 348,947 |
Deferred income | (74,363) | (21,684) |
Lease liability – operating lease | (104,378) | (78,046) |
Accrued expenses and other current liabilities | (67,088) | (105,931) |
Other non-current liabilities | 120,999 | 10,855 |
Net cash used in operating activities | (2,336,166) | (1,913,446) |
Investing activities: | ||
Purchase of equipment | (307,044) | (16,514) |
Net cash used in investing activities | (307,044) | (16,514) |
Financing activities: | ||
Repayment of loans | (2,021) | (1,968) |
Repayment of finance lease | (7,797) | (6,889) |
Proceeds from private placement | 129,662 | |
Proceeds from equipment finance | 262,893 | |
Proceeds from issuance of common stock, ATM offering, net of issuance cost | 1,099,254 | |
Proceeds from exercise of options | 177,864 | |
Net cash provided by (used in) financing activities | 1,659,855 | (8,857) |
Effect of foreign exchange on cash | 42,408 | 115,583 |
Net change in cash | (940,947) | (1,823,234) |
Cash, beginning of period | 1,373,101 | 8,315,053 |
Cash, end of period | 432,154 | 6,491,819 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 782 | 1,474 |
Cash paid for taxes | 1,288 | |
Non-cash transactions: | ||
ROU assets and liabilities added during the period | $ 105,825 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure [Table] | ||
Net Income (Loss) Attributable to Parent | $ (2,148,611) | $ (2,183,206) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Insider Trading Arrangements [Line Items] | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Dec. 31, 2023 | |
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, 2023 as filed with the SEC on January 16, 2024. 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 for the year ended September 30, 2023, have been omitted. Principles of Consolidation The Company prepares its financial statements on the accrual basis of accounting. The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts, balances and transactions have been eliminated upon consolidation. The Company has two wholly owned international subsidiaries in NuZee KOREA Ltd. “NuZee KR”) and NuZee Investment Co., Ltd. “NuZee INV”). 2022 Reverse Stock Split On December 9, 2022, our stockholders approved a proposal granting the board of directors of the Company (the “Board”) discretionary authority to file an amendment (the “Certificate of Amendment”) to our Articles of Incorporation, as amended (the “Articles”), which amends the Articles to add a Section 1A to effect a reverse stock split of our common stock, at any ratio from 1-for-10 to 1-for-50 1-for-35 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 December 31, 2023 and December 31, 2022, the total number of common stock equivalents was 1,284,194 262,030 Going Concern and Capital Resources Since its inception, the Company has devoted substantially all of its efforts to business planning, research and development, recruiting management and technical staff, acquiring operating assets, raising capital and the commercialization and manufacture of its single serve coffee products. The Company has grown revenues from its principal operations; however, there is no assurance of future revenue growth similar to historical levels. As of December 31, 2023, the Company had cash of $ 432,154 85,187 Use of Estimates In preparing these consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amount of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. The Company had no Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents. The Company places its cash with high quality banking institutions. From time to time, the Company may or may not maintain cash balances at certain institutions in excess of the Federal Deposit Insurance Corporation limit. Accounts Receivable Trade accounts receivable are periodically evaluated for collectability based on past credit history with customers and their current financial condition. Bad debts expense or write offs of receivables are determined on the basis of loss experience, known and inherent risks in the receivable portfolio and current economic conditions. The Company had $ 58,636 58,636 Major Customers In the three months ended December 31, 2023 and 2022, revenue was primarily derived from major customers disclosed below. SCHEDULE OF REVENUE BY MAJOR CUSTOMERS Three months ended December 31, 2023: Customer Name Sales Amount % of Total Revenue Accounts Receivable Amount % of Total Accounts Receivable Customer CL $ 577,420 43 % $ 552,587 49 % Three months ended December 31, 2022: Customer Name Sales Amount % of Total Revenue Accounts Receivable Amount % of Total Accounts Receivable Customer CL $ 331,211 29 % $ 340,534 52 % 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 performs a quarterly analysis of leases to determine if there are any operating leases that require recognition under ASC 842. The Company has a 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 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. In May 2022, the Company renewed the office and manufacturing space in Vista, California which was scheduled to expire on January 31, 2023, through March 31, 2025 8,451 we leased an additional 1,796 2,514 2,111 7,040 As of December 31, 2023, our operating leases had a weighted average remaining lease term of 0.8 5 SCHEDULE OF OTHER INFORMATION RELATED TO OPERATING LEASE ROU Asset – October 1, 2023 $ 403,258 ROU Asset added during the period 105,825 Amortization during the period (68,372 ) ROU Asset – December 31, 2023 $ 440,711 Lease Liability – October 1, 2023 $ 378,429 Lease Liability added during the period 105,825 Amortization during the period (104,378 ) Lease Liability – December 31, 2023 $ 379,876 Lease Liability – Short-Term $ 345,045 Lease Liability – Long-Term 34,831 Lease Liability – Total $ 379,876 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 December 31, 2023: Amounts due within twelve months of December 31, SCHEDULE OF FUTURE MINIMUM RENTAL PAYMENTS FOR OPERATING LEASES 2024 $ 227,943 2025 88,430 Total Minimum Lease Payments 316,373 Less Effect of Discounting 63,503 Present Value of Future Minimum Lease Payments 379,876 Less Current Portion of Operating Lease Liabilities 345,045 Long-Term Operating Lease Liabilities $ 34,831 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 $ 2,987 124,500 0.3 12.75 782 The table below summarizes future minimum finance lease payments at December 31, 2023 for the twelve months ended December 31: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS FOR FINANCE LEASES 2024 $ 19,315 2025 - Total Minimum Lease Payments 19,315 Amount representing interest (1,064 ) Present Value of Minimum Lease Payments 18,251 Current Portion of Finance Lease Obligations 18,251 Finance Lease Obligations, Less Current Portion $ - Lease expenses included in operating expense for the three months ended December 31, 2023, and 2022 was $ 43,756 91,119 49,195 31,956 Cash and non-cash activities associated with the leases for the three months ended December 31, 2023, are as follows: SCHEDULE OF CASH AND NON-CASH ACTIVITIES OF LEASES Operating cash outflows from operating leases: $ 80,761 Operating cash outflows from finance lease: $ 782 Financing cash outflows from finance lease: $ 7,797 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. During the three months ended December 31, 2023, we recognized sublease income of $ 46,832 pursuant to the sublease included in other income on our financial statements. Future minimum lease payments to be received under that sublease as of December 31, 2023, for year ended December 31 are as follows: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS OF SUBLEASE 2024 $ 64,918 Total $ 64,918 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 adjustment attributable to NuZee, Inc. recorded to other comprehensive income amounted to $ 42,408 and $ 115,583 for the three months ended December 31, 2023 and 2022, 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. Equity Method Investee companies that are not consolidated, but over which the Company exercises significant influence, are accounted for under the equity method of accounting. Whether or not the Company exercises significant influence with respect to an investee depends on an evaluation of several factors including, among others, representation on the investee company’s board of directors and ownership level, which is generally a 20% 50% When the Company’s carrying value in an equity method investee company is reduced to zero, no further losses are recorded in the Company’s consolidated financial statements unless the Company guaranteed obligations of the investee company or has committed additional funding. When the investee company subsequently reports income, the Company will not record its share of such income until it equals the amount of its share of losses not previously recognized. On January 9, 2020, a joint venture agreement was signed between Industrial Marino, S.A. de C.V. ( 50% 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 as well as our partner appoints the Chairman of the joint Board. As of December 31, 2023, the activity in NLA consisted of the contribution of two machines as described above and other start up and initial sales and marketing related activities. $ 2,051 1,823 of losses were recognized under the equity method of accounting for the three months ended December 31, 2023 and December 31, 2022, respectively. Revenue Recognition In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (Topic 606) “Revenue from Contracts with Customers.” Topic 606 supersedes the revenue recognition requirements in Topic 605 “Revenue Recognition” (Topic 605). The new standard’s core principle is that an entity will recognize revenue at an amount that reflects the consideration to which the entity expects to be entitled in exchange for transferring goods or services to a customer. The principles in the standard are applied in five steps: 1) Identify the contract(s) with a customer; 2) Identify the performance obligations in the contract; 3) Determine the transaction price; 4) Allocate the transaction price to the performance obligations in the contract; and 5) Recognize revenue when (or as) the entity satisfies a performance obligation. We adopted Topic 606 as of October 1, 2018 on a modified retrospective basis. The adoption of Topic 606 did not have a material impact on our consolidated financial statements, including the presentation of revenues in our Consolidated Statements of Operations. Return and Exchange Policy The Company provides a 30-day money-back guarantee if a buyer is not satisfied with a product. All products are thoroughly inspected and securely packaged before they are shipped to ensure buyers receive the best possible product. If for any reason buyers are unsatisfied with the products, they can return them and the Company will exchange or refund the purchase minus any shipping charges. For wholesale customers, return policies vary based on their specific agreements with customers. Under chargebacks agreements with the customers, the Company agrees to reimburse the seller for a portion of the costs incurred by the seller to advertise and promote certain of the Company’s products. The Company estimates, accrues and recognizes such chargebacks. These amounts are included in the determination of net sales. For the three months ended December 31, 2023 and 2022, the Company had no Cost Recognition Cost of products sold is primarily comprised of direct materials consumed in the manufacturing of co-packing arrangements or the production of our own products for resale. Cost of products sold also includes directly related labor salaries and other overhead cost including depreciation, temporary labor and shipping costs for shipment of raw materials to our facilities. Selling, General and Administrative Expense Selling, general and administrative expense (SG&A) is primarily comprised of personnel costs, sales and marketing expenses, depreciation and amortization, insurance expenses, legal and professional services fees, travel and office expenses, and facilities costs. In some situations, the Company covers shipping fees for delivering customer orders, and the shipping and handling expenses are recorded under operating expenses in the consolidated statements of operations. Other Expense Other expense of $ 50,100 35,790 Prepaid expenses and other current assets Prepaid expenses and other current assets for the three months ended December 31, 2023 and September 30, 2023 is as follows: SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS December 31, 2023 September 30, 2023 Prepaid expenses and other current assets $ 389,614 $ 418,200 The Prepaid expenses and other current assets balance of $ 389,614 as of December 31, 2023 primarily consists of prepaid rent, prepaid insurance, a retainer for professional services, and deferred offering costs. The balance of $ 418,200 as of September 30, 2023 primarily consists of prepaid insurance, deposits on inventory purchases, and rent. Inventory 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 December 31, 2023 and September 30, 2023, the carrying value of inventory of $ 1,253,646 and $ 998,070 respectively, reflected on the consolidated balance sheets is net of this adjustment. SCHEDULE OF INVENTORY December 31, 2023 September 30, 2023 Raw materials $ 1,225,534 $ 982,626 Finished goods $ 28,112 15,444 Total $ 1,253,646 $ 998,070 Property and Equipment Property and equipment is stated at cost, net of accumulated depreciation. The Company generally depreciates property and equipment on a straight-line basis over the estimated useful lives of the assets after the assets are placed in service except for NuZee KR which uses the declining balance method. Office equipment is depreciated over a 3 7 5 32,480 66,305 Expenditures associated with upgrades and enhancements that improve, add functionality, or otherwise extend the life of property and equipment that exceed $1,000 are capitalized. SCHEDULE OF PROPERTY AND EQUIPMENT December 31, 2023 September 30, 2023 Machinery & Equipment 2,253,784 1,895,859 Vehicles 78,378 73,980 Leasehold Improvements - - Less - Accumulated Depreciation (1,748,043 ) (1,660,284 ) Net Property and Equipment $ 584,119 $ 309,555 The Company is required to make deposits or prepayments and progress payments on equipment purchases before the Company receives possession and title. As a result, the Company accounts for such payments as Other Assets until it has possession at which time the equipment is recorded as Property and Equipment. There were no Loans On April 1, 2019, the Company purchased a delivery van from Ford Motor Credit for $ 41,627 3,500 38,127 60 2.9% 2,732 4,753 The remainder of the loan is due in fiscal year ending December 31, 2024 in the amount of $ 2,732 Other noncurrent liabilities On October 12, 2023, the Company entered into a finance agreement with a lender for the purchase of packaging equipment with future payments of $ 262,893 |
GEOGRAPHIC CONCENTRATION
GEOGRAPHIC CONCENTRATION | 3 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
GEOGRAPHIC CONCENTRATION | 2. GEOGRAPHIC CONCENTRATION The Company is organized based on fundamentally one business segment although it does sell its products on a world-wide basis. 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 previously had a minimally staffed office in Japan that provided support for import and export of product and materials between the U.S. and Japan, as well as investor relations support to its stockholders based in Japan; these functions are now supported by the Company’s personnel residing in the United States. Information about the Company’s geographic operations for the three months ended December 31, 2023, and 2022 are as follows: SCHEDULE OF INFORMATION ABOUT THE COMPANY’S GEOGRAPHICAL OPERATIONS Geographic Concentration Three Months Three Months Net Revenue: North America $ 965,932 $ 665,741 South Korea 388,054 470,607 Net Revenue $ 1,353,986 $ 1,136,348 Property and equipment, net: As of As of North America $ 464,112 $ 184,763 Japan 496 546 South Korea 119,511 124,246 Property and equipment, net $ 584,119 $ 309,555 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 3 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | 3. INTANGIBLE ASSETS Identifiable life intangible assets As of December 31, 2023, the Company’s intangible assets consisted of unamortized tradename asset of $ 102,500 30,000 Amortization expense was $ 7,500 7,500 Amortization expense for the next four fiscal years is as follows: SCHEDULE OF AMORTIZATION EXPENSE Tradename 2024 22,500 2025 30,000 2026 30,000 2027 20,000 Grand Total 102,500 |
ISSUANCE OF EQUITY SECURITIES
ISSUANCE OF EQUITY SECURITIES | 3 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
ISSUANCE OF EQUITY SECURITIES | 4. ISSUANCE OF EQUITY SECURITIES Registered Offering The Company offered in an underwritten public offering (the “Offering”), 425,000 0.00001 3.00 On October 18, 2023, the Company entered into an underwriting agreement (the “Underwriting Agreement”) with Maxim Group LLC, as the sole book-running manager and underwriter (the “Underwriter”), relating to the Offering. Pursuant to the Underwriting Agreement, the Company granted the Underwriter a 45-day option to purchase up to 63,750 1.0 178,000 Private Placement On November 9, 2023, the Company issued in a private placement to an accredited investor (“Shareholder”) 46,800 5,200 2.77 129,662 Restricted Shares On August 11, 2023, the Compensation Committee (the “Compensation Committee”) of the Company’s Board of Directors granted to Randell Weaver, the Company’s newly appointed Chief Financial Officer, in connection with his employment agreement, an award of 6,000 2,000 2,000 2,000 3,751 On March 15, 2023, the Company granted 58,619 50% 50% Restricted Stock Awards On March 17, 2022, pursuant to the Company’s non-employee director compensation policy, the Compensation Committee (the “Committee”) of the Company’s Board of Directors (the “Board”) granted 674 3,370 62,839 On March 22, 2023, the Company granted 4,398 The Company recognized common stock compensation expense of $ 11,505 and $ 62,839 in the three months ending December 31, 2023 and 2022, respectively. The following table summarizes the restricted common shares activities for the three months ended December 31, 2023 and 2022: SCHEDULE OF RESTRICTED COMMON SHARES 2023 2022 Number of shares outstanding at September, 2023 and 2022 50,056 3,370 Restricted shares granted - - Restricted shares forfeited (4,300 ) - Restricted shares vested - - Number of shares outstanding at December 31, 2023 and 2022 45,756 3,370 During the three months ended December 31, 2023, 4,300 |
STOCK OPTIONS AND WARRANTS
STOCK OPTIONS AND WARRANTS | 3 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK OPTIONS AND WARRANTS | 5. STOCK OPTIONS AND WARRANTS Options During the three months ended December 31, 2023, the Company granted no new stock options. During the three months ended December 31, 2023, 7,993 The following table summarizes stock option activity for the three months ended December 31, 2023. SCHEDULE OF STOCK OPTION ACTIVITY Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Aggregate Value Outstanding at September 30, 2023 96,458 $ 150.39 5.84 $ - Forfeited and expired (7,993 ) 107.93 .22 - Outstanding at December 31, 2023 88,465 $ 154.23 5.83 $ - Exercisable at December 31, 2023 65,782 $ 179.28 5.03 $ - The Company is expensing these stock option awards on a straight-line basis over the requisite service period. The Company recognized stock option expense of $ 11,505 197,108 68,000 1.34 A summary of the status of the Company’s nonvested options as of December 31, 2023, is presented below: SCHEDULE OF NONVESTED OPTIONS Nonvested options Number of Nonvested Options Weighted Average Grant Date Fair Value Nonvested options at September 30, 2023 24,029 $ 80.73 Granted - - Forfeited (1,334 ) 48.35 Vested (12 ) 587.65 Nonvested options at December 31, 2023 22,683 $ 82.37 Warrants During the three months ended December 31, 2023, the Company granted no new warrants to purchase shares of common stock and did not issue any shares upon the exercise of outstanding warrants to purchase shares of common stock. The following table summarizes warrant activity for the three months ended December 31, 2023: 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, 2023 152,398 $ 158.24 2.65 $ - Issued - - Exercised - - Expired - - Outstanding at December 31, 2023 152,398 $ 158.24 2.65 - Exercisable at December 31, 2023 152,398 $ 158.24 2.65 $ - |
CONTINGENCY
CONTINGENCY | 3 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCY | 6. CONTINGENCY Steeped, Inc. Litigation On January 27, 2023, Steeped, Inc. d/b/a Steeped Coffee (“Steeped”) filed a complaint against the Company in the Superior Court of California, Santa Cruz County (Case No. 23CV00234) (the “Steeped Litigation”). The Steeped Litigation relates to Steeped’s claim that the Company breached a 2021 settlement agreement that resolved Steeped’s 2019 trademark infringement case against the Company. The earlier case involved Steeped’s purported trademark protection for “steeped coffee” and related phrases. Steeped’s operative complaint in the pending Steeped Litigation alleges breach of contract, intentional interference with contractual relations, intentional interference with prospective economic advantage, and fraud in the inducement of contract. Plaintiff seeks a trial by jury and relief in the form of a permanent injunction for use of “Steep Coffee” or any confusingly similar variant of “STEEPED COFFEE”; the impoundment and destruction of allegedly violating packaging materials and/or finished goods; a final judgment for all profits derived from the Company’s allegedly unlawful conduct, actual damages, damages to the Plaintiff’s reputation and goodwill among its customers and partners; and reasonable attorneys’ fees and costs. NuZee answered Steeped’s complaint with a general denial and asserted twenty-five affirmative defenses. On January 16, 2024, a mediation hearing was held. After the close of business, the mediator suggested a settlement amount of $ 500,000 Curtin Litigation On January 6, 2023, a former employee of the Company, Rosaline Curtin (“Ms. Curtin”), filed a complaint against the Company and another former employee of the Company, Jose Ramirez (“Mr. Ramirez”), in the Superior Court of California, County of San Diego (Case No. 37-2023-00000841-CU-WT-NC) (the “Curtin Complaint”). The Curtin Complaint alleges that Ms. Curtin was subject to harassment by her supervisor, Mr. Ramirez, and gender discrimination throughout her employment, that she reported this discrimination and harassment to the Company, and that the Company retaliated against her and wrongfully terminated her for whistleblowing and failed to prevent discrimination, harassment, and retaliation. The Curtin Complaint seeks compensatory damages, including loss of past, present and future earnings, and benefits, as well as punitive damages, penalties, attorney’s fees and costs and interest. The Company has responded to the complaint on behalf of the Company and Mr. Ramirez and prevailed on December 22, 2023, prevailed on its motion to compel. Arbitration proceedings have been initiated, and the parties have agreed on an arbitrator. A date for the arbitration hearing has not yet been scheduled. We believe the allegations set forth in the Curtin Complaint are without merit and intend to defend vigorously against the allegations. However, the Company is not able to predict the outcome, and there is no assurance that the Company will be successful in its defense. From time to time, we may be subject to legal proceedings and claims in the ordinary course of business. The results of any future litigation cannot be predicted with certainty, and, regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources, and other factors. Matters that are probable of unfavorable outcomes to us and which can be reasonably estimated are accrued. Such accruals are based on information known about the matters, our estimates of the outcomes of such matters and our experience in contesting, litigating and settling similar matters. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 7 . SUBSEQUENT EVENTS New Operating Lease Effective January 1, 2024, we entered into a new lease in Carlsbad, California for additional office space. The lease term is two years 5,760 Notice On January 23, 2024, the Company received a notice (the “Notice”) from the Listing Qualifications staff of The Nasdaq Stock Market (“Nasdaq”) notifying the Company that the Company’s stockholders’ equity as reported in its Annual Report on Form 10-K for the period ended September 30, 2023 (“Form 10-K”), did not satisfy the continued listing requirement under Nasdaq Listing Rule 5550(b)(1) for the Nasdaq Capital Market, which requires that a listed company’s stockholders’ equity be at least $ 2,500,000 1,674,357 Private Placement On January 30 2024, the Company issued in a private placement to an accredited investor 14,220 1,279 2.11 five year 30,004 On April 30, 2024, the Company issued convertible notes to two investors in the amount of $ 320,000 221,147 1.447 7% Financing Agreement On March 1, 2024 the Company entered into a financing agreement to sell future receipts in the amount of $ 246,000 200,000 future receipts are being repaid on a biweekly basis at the rate of $9,460 every two weeks with payment in full after 26 biweekly payments. |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Dec. 31, 2023 | |
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 and its wholly owned subsidiaries. All significant intercompany accounts, balances and transactions have been eliminated upon consolidation. The Company has two wholly owned international subsidiaries in NuZee KOREA Ltd. “NuZee KR”) and NuZee Investment Co., Ltd. “NuZee INV”). |
2022 Reverse Stock Split | 2022 Reverse Stock Split On December 9, 2022, our stockholders approved a proposal granting the board of directors of the Company (the “Board”) discretionary authority to file an amendment (the “Certificate of Amendment”) to our Articles of Incorporation, as amended (the “Articles”), which amends the Articles to add a Section 1A to effect a reverse stock split of our common stock, at any ratio from 1-for-10 to 1-for-50 1-for-35 |
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 December 31, 2023 and December 31, 2022, the total number of common stock equivalents was 1,284,194 262,030 |
Going Concern and Capital Resources | Going Concern and Capital Resources Since its inception, the Company has devoted substantially all of its efforts to business planning, research and development, recruiting management and technical staff, acquiring operating assets, raising capital and the commercialization and manufacture of its single serve coffee products. The Company has grown revenues from its principal operations; however, there is no assurance of future revenue growth similar to historical levels. As of December 31, 2023, the Company had cash of $ 432,154 85,187 |
Use of Estimates | Use of Estimates In preparing these consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amount of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents. The Company had no |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents. The Company places its cash with high quality banking institutions. From time to time, the Company may or may not maintain cash balances at certain institutions in excess of the Federal Deposit Insurance Corporation limit. |
Accounts Receivable | Accounts Receivable Trade accounts receivable are periodically evaluated for collectability based on past credit history with customers and their current financial condition. Bad debts expense or write offs of receivables are determined on the basis of loss experience, known and inherent risks in the receivable portfolio and current economic conditions. The Company had $ 58,636 58,636 |
Major Customers | Major Customers In the three months ended December 31, 2023 and 2022, revenue was primarily derived from major customers disclosed below. SCHEDULE OF REVENUE BY MAJOR CUSTOMERS Three months ended December 31, 2023: Customer Name Sales Amount % of Total Revenue Accounts Receivable Amount % of Total Accounts Receivable Customer CL $ 577,420 43 % $ 552,587 49 % Three months ended December 31, 2022: Customer Name Sales Amount % of Total Revenue Accounts Receivable Amount % of Total Accounts Receivable Customer CL $ 331,211 29 % $ 340,534 52 % |
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 performs a quarterly analysis of leases to determine if there are any operating leases that require recognition under ASC 842. The Company has a 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 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. In May 2022, the Company renewed the office and manufacturing space in Vista, California which was scheduled to expire on January 31, 2023, through March 31, 2025 8,451 we leased an additional 1,796 2,514 2,111 7,040 As of December 31, 2023, our operating leases had a weighted average remaining lease term of 0.8 5 SCHEDULE OF OTHER INFORMATION RELATED TO OPERATING LEASE ROU Asset – October 1, 2023 $ 403,258 ROU Asset added during the period 105,825 Amortization during the period (68,372 ) ROU Asset – December 31, 2023 $ 440,711 Lease Liability – October 1, 2023 $ 378,429 Lease Liability added during the period 105,825 Amortization during the period (104,378 ) Lease Liability – December 31, 2023 $ 379,876 Lease Liability – Short-Term $ 345,045 Lease Liability – Long-Term 34,831 Lease Liability – Total $ 379,876 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 December 31, 2023: Amounts due within twelve months of December 31, SCHEDULE OF FUTURE MINIMUM RENTAL PAYMENTS FOR OPERATING LEASES 2024 $ 227,943 2025 88,430 Total Minimum Lease Payments 316,373 Less Effect of Discounting 63,503 Present Value of Future Minimum Lease Payments 379,876 Less Current Portion of Operating Lease Liabilities 345,045 Long-Term Operating Lease Liabilities $ 34,831 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 $ 2,987 124,500 0.3 12.75 782 The table below summarizes future minimum finance lease payments at December 31, 2023 for the twelve months ended December 31: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS FOR FINANCE LEASES 2024 $ 19,315 2025 - Total Minimum Lease Payments 19,315 Amount representing interest (1,064 ) Present Value of Minimum Lease Payments 18,251 Current Portion of Finance Lease Obligations 18,251 Finance Lease Obligations, Less Current Portion $ - Lease expenses included in operating expense for the three months ended December 31, 2023, and 2022 was $ 43,756 91,119 49,195 31,956 Cash and non-cash activities associated with the leases for the three months ended December 31, 2023, are as follows: SCHEDULE OF CASH AND NON-CASH ACTIVITIES OF LEASES Operating cash outflows from operating leases: $ 80,761 Operating cash outflows from finance lease: $ 782 Financing cash outflows from finance lease: $ 7,797 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. During the three months ended December 31, 2023, we recognized sublease income of $ 46,832 pursuant to the sublease included in other income on our financial statements. Future minimum lease payments to be received under that sublease as of December 31, 2023, for year ended December 31 are as follows: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS OF SUBLEASE 2024 $ 64,918 Total $ 64,918 |
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 adjustment attributable to NuZee, Inc. recorded to other comprehensive income amounted to $ 42,408 and $ 115,583 for the three months ended December 31, 2023 and 2022, 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. |
Equity Method | Equity Method Investee companies that are not consolidated, but over which the Company exercises significant influence, are accounted for under the equity method of accounting. Whether or not the Company exercises significant influence with respect to an investee depends on an evaluation of several factors including, among others, representation on the investee company’s board of directors and ownership level, which is generally a 20% 50% When the Company’s carrying value in an equity method investee company is reduced to zero, no further losses are recorded in the Company’s consolidated financial statements unless the Company guaranteed obligations of the investee company or has committed additional funding. When the investee company subsequently reports income, the Company will not record its share of such income until it equals the amount of its share of losses not previously recognized. On January 9, 2020, a joint venture agreement was signed between Industrial Marino, S.A. de C.V. ( 50% 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 as well as our partner appoints the Chairman of the joint Board. As of December 31, 2023, the activity in NLA consisted of the contribution of two machines as described above and other start up and initial sales and marketing related activities. $ 2,051 1,823 of losses were recognized under the equity method of accounting for the three months ended December 31, 2023 and December 31, 2022, respectively. |
Revenue Recognition | Revenue Recognition In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (Topic 606) “Revenue from Contracts with Customers.” Topic 606 supersedes the revenue recognition requirements in Topic 605 “Revenue Recognition” (Topic 605). The new standard’s core principle is that an entity will recognize revenue at an amount that reflects the consideration to which the entity expects to be entitled in exchange for transferring goods or services to a customer. The principles in the standard are applied in five steps: 1) Identify the contract(s) with a customer; 2) Identify the performance obligations in the contract; 3) Determine the transaction price; 4) Allocate the transaction price to the performance obligations in the contract; and 5) Recognize revenue when (or as) the entity satisfies a performance obligation. We adopted Topic 606 as of October 1, 2018 on a modified retrospective basis. The adoption of Topic 606 did not have a material impact on our consolidated financial statements, including the presentation of revenues in our Consolidated Statements of Operations. |
Return and Exchange Policy | Return and Exchange Policy The Company provides a 30-day money-back guarantee if a buyer is not satisfied with a product. All products are thoroughly inspected and securely packaged before they are shipped to ensure buyers receive the best possible product. If for any reason buyers are unsatisfied with the products, they can return them and the Company will exchange or refund the purchase minus any shipping charges. For wholesale customers, return policies vary based on their specific agreements with customers. Under chargebacks agreements with the customers, the Company agrees to reimburse the seller for a portion of the costs incurred by the seller to advertise and promote certain of the Company’s products. The Company estimates, accrues and recognizes such chargebacks. These amounts are included in the determination of net sales. For the three months ended December 31, 2023 and 2022, the Company had no |
Cost Recognition | Cost Recognition Cost of products sold is primarily comprised of direct materials consumed in the manufacturing of co-packing arrangements or the production of our own products for resale. Cost of products sold also includes directly related labor salaries and other overhead cost including depreciation, temporary labor and shipping costs for shipment of raw materials to our facilities. |
Selling, General and Administrative Expense | Selling, General and Administrative Expense Selling, general and administrative expense (SG&A) is primarily comprised of personnel costs, sales and marketing expenses, depreciation and amortization, insurance expenses, legal and professional services fees, travel and office expenses, and facilities costs. In some situations, the Company covers shipping fees for delivering customer orders, and the shipping and handling expenses are recorded under operating expenses in the consolidated statements of operations. |
Other Expense | Other Expense Other expense of $ 50,100 35,790 |
Prepaid expenses and other current assets | Prepaid expenses and other current assets Prepaid expenses and other current assets for the three months ended December 31, 2023 and September 30, 2023 is as follows: SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS December 31, 2023 September 30, 2023 Prepaid expenses and other current assets $ 389,614 $ 418,200 The Prepaid expenses and other current assets balance of $ 389,614 as of December 31, 2023 primarily consists of prepaid rent, prepaid insurance, a retainer for professional services, and deferred offering costs. The balance of $ 418,200 as of September 30, 2023 primarily consists of prepaid insurance, deposits on inventory purchases, and rent. |
Inventory | Inventory 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 December 31, 2023 and September 30, 2023, the carrying value of inventory of $ 1,253,646 and $ 998,070 respectively, reflected on the consolidated balance sheets is net of this adjustment. SCHEDULE OF INVENTORY December 31, 2023 September 30, 2023 Raw materials $ 1,225,534 $ 982,626 Finished goods $ 28,112 15,444 Total $ 1,253,646 $ 998,070 |
Property and Equipment | Property and Equipment Property and equipment is stated at cost, net of accumulated depreciation. The Company generally depreciates property and equipment on a straight-line basis over the estimated useful lives of the assets after the assets are placed in service except for NuZee KR which uses the declining balance method. Office equipment is depreciated over a 3 7 5 32,480 66,305 Expenditures associated with upgrades and enhancements that improve, add functionality, or otherwise extend the life of property and equipment that exceed $1,000 are capitalized. SCHEDULE OF PROPERTY AND EQUIPMENT December 31, 2023 September 30, 2023 Machinery & Equipment 2,253,784 1,895,859 Vehicles 78,378 73,980 Leasehold Improvements - - Less - Accumulated Depreciation (1,748,043 ) (1,660,284 ) Net Property and Equipment $ 584,119 $ 309,555 The Company is required to make deposits or prepayments and progress payments on equipment purchases before the Company receives possession and title. As a result, the Company accounts for such payments as Other Assets until it has possession at which time the equipment is recorded as Property and Equipment. There were no |
Loans | Loans On April 1, 2019, the Company purchased a delivery van from Ford Motor Credit for $ 41,627 3,500 38,127 60 2.9% 2,732 4,753 The remainder of the loan is due in fiscal year ending December 31, 2024 in the amount of $ 2,732 |
Other noncurrent liabilities | Other noncurrent liabilities On October 12, 2023, the Company entered into a finance agreement with a lender for the purchase of packaging equipment with future payments of $ 262,893 |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
SCHEDULE OF REVENUE BY MAJOR CUSTOMERS | In the three months ended December 31, 2023 and 2022, revenue was primarily derived from major customers disclosed below. SCHEDULE OF REVENUE BY MAJOR CUSTOMERS Three months ended December 31, 2023: Customer Name Sales Amount % of Total Revenue Accounts Receivable Amount % of Total Accounts Receivable Customer CL $ 577,420 43 % $ 552,587 49 % Three months ended December 31, 2022: Customer Name Sales Amount % of Total Revenue Accounts Receivable Amount % of Total Accounts Receivable Customer CL $ 331,211 29 % $ 340,534 52 % |
SCHEDULE OF OTHER INFORMATION RELATED TO OPERATING LEASE | SCHEDULE OF OTHER INFORMATION RELATED TO OPERATING LEASE ROU Asset – October 1, 2023 $ 403,258 ROU Asset added during the period 105,825 Amortization during the period (68,372 ) ROU Asset – December 31, 2023 $ 440,711 Lease Liability – October 1, 2023 $ 378,429 Lease Liability added during the period 105,825 Amortization during the period (104,378 ) Lease Liability – December 31, 2023 $ 379,876 Lease Liability – Short-Term $ 345,045 Lease Liability – Long-Term 34,831 Lease Liability – Total $ 379,876 |
SCHEDULE OF FUTURE MINIMUM RENTAL PAYMENTS FOR OPERATING LEASES | Amounts due within twelve months of December 31, SCHEDULE OF FUTURE MINIMUM RENTAL PAYMENTS FOR OPERATING LEASES 2024 $ 227,943 2025 88,430 Total Minimum Lease Payments 316,373 Less Effect of Discounting 63,503 Present Value of Future Minimum Lease Payments 379,876 Less Current Portion of Operating Lease Liabilities 345,045 Long-Term Operating Lease Liabilities $ 34,831 |
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS FOR FINANCE LEASES | The table below summarizes future minimum finance lease payments at December 31, 2023 for the twelve months ended December 31: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS FOR FINANCE LEASES 2024 $ 19,315 2025 - Total Minimum Lease Payments 19,315 Amount representing interest (1,064 ) Present Value of Minimum Lease Payments 18,251 Current Portion of Finance Lease Obligations 18,251 Finance Lease Obligations, Less Current Portion $ - |
SCHEDULE OF CASH AND NON-CASH ACTIVITIES OF LEASES | Cash and non-cash activities associated with the leases for the three months ended December 31, 2023, are as follows: SCHEDULE OF CASH AND NON-CASH ACTIVITIES OF LEASES Operating cash outflows from operating leases: $ 80,761 Operating cash outflows from finance lease: $ 782 Financing cash outflows from finance lease: $ 7,797 |
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS OF SUBLEASE | SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS OF SUBLEASE 2024 $ 64,918 Total $ 64,918 |
SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS | Prepaid expenses and other current assets for the three months ended December 31, 2023 and September 30, 2023 is as follows: SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS December 31, 2023 September 30, 2023 Prepaid expenses and other current assets $ 389,614 $ 418,200 |
SCHEDULE OF INVENTORY | SCHEDULE OF INVENTORY December 31, 2023 September 30, 2023 Raw materials $ 1,225,534 $ 982,626 Finished goods $ 28,112 15,444 Total $ 1,253,646 $ 998,070 |
SCHEDULE OF PROPERTY AND EQUIPMENT | SCHEDULE OF PROPERTY AND EQUIPMENT December 31, 2023 September 30, 2023 Machinery & Equipment 2,253,784 1,895,859 Vehicles 78,378 73,980 Leasehold Improvements - - Less - Accumulated Depreciation (1,748,043 ) (1,660,284 ) Net Property and Equipment $ 584,119 $ 309,555 |
GEOGRAPHIC CONCENTRATION (Table
GEOGRAPHIC CONCENTRATION (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
SCHEDULE OF INFORMATION ABOUT THE COMPANY’S GEOGRAPHICAL OPERATIONS | SCHEDULE OF INFORMATION ABOUT THE COMPANY’S GEOGRAPHICAL OPERATIONS Geographic Concentration Three Months Three Months Net Revenue: North America $ 965,932 $ 665,741 South Korea 388,054 470,607 Net Revenue $ 1,353,986 $ 1,136,348 Property and equipment, net: As of As of North America $ 464,112 $ 184,763 Japan 496 546 South Korea 119,511 124,246 Property and equipment, net $ 584,119 $ 309,555 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF AMORTIZATION EXPENSE | Amortization expense for the next four fiscal years is as follows: SCHEDULE OF AMORTIZATION EXPENSE Tradename 2024 22,500 2025 30,000 2026 30,000 2027 20,000 Grand Total 102,500 |
ISSUANCE OF EQUITY SECURITIES (
ISSUANCE OF EQUITY SECURITIES (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
SCHEDULE OF RESTRICTED COMMON SHARES | The following table summarizes the restricted common shares activities for the three months ended December 31, 2023 and 2022: SCHEDULE OF RESTRICTED COMMON SHARES 2023 2022 Number of shares outstanding at September, 2023 and 2022 50,056 3,370 Restricted shares granted - - Restricted shares forfeited (4,300 ) - Restricted shares vested - - Number of shares outstanding at December 31, 2023 and 2022 45,756 3,370 |
STOCK OPTIONS AND WARRANTS (Tab
STOCK OPTIONS AND WARRANTS (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
SCHEDULE OF STOCK OPTION ACTIVITY | The following table summarizes stock option activity for the three months ended December 31, 2023. SCHEDULE OF STOCK OPTION ACTIVITY Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (years) Aggregate Value Outstanding at September 30, 2023 96,458 $ 150.39 5.84 $ - Forfeited and expired (7,993 ) 107.93 .22 - Outstanding at December 31, 2023 88,465 $ 154.23 5.83 $ - Exercisable at December 31, 2023 65,782 $ 179.28 5.03 $ - |
SCHEDULE OF NONVESTED OPTIONS | A summary of the status of the Company’s nonvested options as of December 31, 2023, is presented below: SCHEDULE OF NONVESTED OPTIONS Nonvested options Number of Nonvested Options Weighted Average Grant Date Fair Value Nonvested options at September 30, 2023 24,029 $ 80.73 Granted - - Forfeited (1,334 ) 48.35 Vested (12 ) 587.65 Nonvested options at December 31, 2023 22,683 $ 82.37 |
SCHEDULE OF WARRANT ACTIVITY | The following table summarizes warrant activity for the three months ended December 31, 2023: 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, 2023 152,398 $ 158.24 2.65 $ - Issued - - Exercised - - Expired - - Outstanding at December 31, 2023 152,398 $ 158.24 2.65 - Exercisable at December 31, 2023 152,398 $ 158.24 2.65 $ - |
SCHEDULE OF REVENUE BY MAJOR CU
SCHEDULE OF REVENUE BY MAJOR CUSTOMERS (Details) - Customer WP [Member] - Customer Concentration Risk [Member] - USD ($) | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue Benchmark [Member] | ||
Product Information [Line Items] | ||
Sales Amount | $ 577,420 | $ 331,211 |
Concentration risk percentage | 43% | 29% |
Accounts Receivable [Member] | ||
Product Information [Line Items] | ||
Concentration risk percentage | 49% | 52% |
Accounts receivable amount | $ 552,587 | $ 340,534 |
SCHEDULE OF OTHER INFORMATION R
SCHEDULE OF OTHER INFORMATION RELATED TO OPERATING LEASE (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2023 | Sep. 30, 2023 | |
Accounting Policies [Abstract] | ||
ROU Asset – October 1, 2023 | $ 403,258 | |
ROU Asset added during the period | 105,825 | |
Amortization during the period | (68,372) | |
ROU Asset – December 31, 2023 | 440,711 | |
Lease Liability – October 1, 2023 | 378,429 | |
Lease Liability added during the period | 105,825 | |
Amortization during the period | (104,378) | |
Lease Liability – December 31, 2023 | 379,876 | |
Lease Liability - Short-Term | 345,045 | $ 216,128 |
Lease Liability - Long-Term | 34,831 | 162,301 |
Lease Liability - Total | $ 379,876 | $ 378,429 |
SCHEDULE OF FUTURE MINIMUM RENT
SCHEDULE OF FUTURE MINIMUM RENTAL PAYMENTS FOR OPERATING LEASES (Details) - USD ($) | Dec. 31, 2023 | Sep. 30, 2023 |
Accounting Policies [Abstract] | ||
2024 | $ 227,943 | |
2025 | 88,430 | |
Total Minimum Lease Payments | 316,373 | |
Less Effect of Discounting | 63,503 | |
Present Value of Future Minimum Lease Payments | 379,876 | $ 378,429 |
Less Current Portion of Operating Lease Liabilities | 345,045 | 216,128 |
Long-Term Operating Lease Liabilities | $ 34,831 | $ 162,301 |
SCHEDULE OF FUTURE MINIMUM LEAS
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS FOR FINANCE LEASES (Details) - USD ($) | Dec. 31, 2023 | Sep. 30, 2023 |
Accounting Policies [Abstract] | ||
2024 | $ 19,315 | |
2025 | ||
Total Minimum Lease Payments | 19,315 | |
Amount representing interest | (1,064) | |
Present Value of Minimum Lease Payments | 18,251 | |
Current Portion of Finance Lease Obligations | 18,251 | $ 26,048 |
Finance Lease Obligations, Less Current Portion |
SCHEDULE OF CASH AND NON-CASH A
SCHEDULE OF CASH AND NON-CASH ACTIVITIES OF LEASES (Details) | 3 Months Ended |
Dec. 31, 2023 USD ($) | |
Accounting Policies [Abstract] | |
Operating cash outflows from operating leases: | $ 80,761 |
Operating cash outflows from finance lease: | 782 |
Financing cash outflows from finance lease: | $ 7,797 |
SCHEDULE OF FUTURE MINIMUM LE_2
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS OF SUBLEASE (Details) | Dec. 31, 2023 USD ($) |
Accounting Policies [Abstract] | |
2024 | $ 64,918 |
Total | $ 64,918 |
SCHEDULE OF PREPAID EXPENSES AN
SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) | Dec. 31, 2023 | Sep. 30, 2023 |
Accounting Policies [Abstract] | ||
Prepaid expenses and other current assets | $ 389,614 | $ 418,200 |
SCHEDULE OF INVENTORY (Details)
SCHEDULE OF INVENTORY (Details) - USD ($) | Dec. 31, 2023 | Sep. 30, 2023 |
Accounting Policies [Abstract] | ||
Raw materials | $ 1,225,534 | $ 982,626 |
Finished goods | 28,112 | 15,444 |
Total | $ 1,253,646 | $ 998,070 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) | Dec. 31, 2023 | Sep. 30, 2023 |
Accounting Policies [Abstract] | ||
Machinery & Equipment | $ 2,253,784 | $ 1,895,859 |
Vehicles | 78,378 | 73,980 |
Leasehold Improvements | ||
Less - Accumulated Depreciation | (1,748,043) | (1,660,284) |
Net Property and Equipment | $ 584,119 | $ 309,555 |
BASIS OF PRESENTATION AND SUM_4
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 01, 2024 USD ($) | Dec. 21, 2022 | Dec. 09, 2022 | Jan. 09, 2020 USD ($) | Oct. 09, 2019 USD ($) | Apr. 01, 2019 USD ($) | May 31, 2022 USD ($) ft² | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) shares | Sep. 30, 2023 USD ($) | Dec. 31, 2024 USD ($) | Oct. 12, 2023 USD ($) | |
Reverse stock split, descrption | 1-for-35 | ratio from 1-for-10 to 1-for-50 | ||||||||||
Common stock equivalents | shares | 1,284,194 | 262,030 | ||||||||||
Cash | $ 432,154 | $ 1,373,101 | ||||||||||
Working capital | 85,187 | |||||||||||
Cash equivalents | 0 | $ 0 | ||||||||||
Allowance for doubtful accounts | 58,636 | 58,636 | ||||||||||
Operating lease, expense | $ 68,372 | 73,103 | ||||||||||
Operating leases weighted average remaining lease term | 9 months 18 days | |||||||||||
Operating lease weighted average discount rate percent | 5% | |||||||||||
Finance lease, weighted average remaining lease term | 3 months 18 days | |||||||||||
Finance lease discount rate | 12.75% | |||||||||||
Interest expense on finance lease liabilities | $ 782 | |||||||||||
Sublease income | 46,832 | |||||||||||
Foreign currency translation adjustment | 42,408 | 115,583 | ||||||||||
Loss from investment | (2,051) | (1,823) | ||||||||||
Other expense | 50,100 | 35,790 | ||||||||||
Deferred financing costs | 389,614 | 418,200 | ||||||||||
Inventory | 1,253,646 | 998,070 | ||||||||||
Depreciation expense | $ 32,480 | 66,305 | ||||||||||
Property and equipment, description | Expenditures associated with upgrades and enhancements that improve, add functionality, or otherwise extend the life of property and equipment that exceed $1,000 are capitalized. | |||||||||||
Purchase of deposit equipment | $ 0 | 0 | ||||||||||
Other noncurrent liabilities | 315,210 | 47,937 | $ 262,893 | |||||||||
Subsequent Event [Member] | ||||||||||||
Payments for rent | $ 5,760 | |||||||||||
Ford Motor Credit [Member] | ||||||||||||
Outstanding balance, loan | 2,732 | $ 4,753 | ||||||||||
Ford Motor Credit [Member] | Forecast [Member] | Subsequent Event [Member] | ||||||||||||
Outstanding balance, loan | $ 2,732 | |||||||||||
Sales Returns and Allowances [Member] | ||||||||||||
Sales allowances | $ 0 | 0 | ||||||||||
Joint Venture Agreement [Member] | ||||||||||||
Machine carrying cost | $ 313,012 | |||||||||||
Other Investment [Member] | Minimum [Member] | Equity Method Investee [Member] | ||||||||||||
Ownership percentage | 20% | |||||||||||
Other Investment [Member] | Maximum [Member] | Equity Method Investee [Member] | ||||||||||||
Ownership percentage | 50% | |||||||||||
NuZee Latin America [Member] | Joint Venture Agreement [Member] | ||||||||||||
Ownership percentage | 50% | |||||||||||
General and Administrative Expense [Member] | ||||||||||||
Payments for rent | $ 43,756 | 91,119 | ||||||||||
Other rent expense | $ 49,195 | $ 31,956 | ||||||||||
Industrial Marino, S.A. de C.V. and NuZee Latin America, S.A. de C.V. [Member] | NuZee Latin America [Member] | Joint Venture Agreement [Member] | ||||||||||||
Ownership percentage | 50% | |||||||||||
NLA [Member] | ||||||||||||
Gain on investments | $ 110,000 | |||||||||||
Investment | 160,000 | |||||||||||
Loss on contribution on machines | $ 43,012 | |||||||||||
Lease Agreement [Member] | Alliance Funding Group [Member] | ||||||||||||
Sale leaseback value | $ 2,987 | |||||||||||
Purchase price of equipment | $ 124,500 | |||||||||||
Office Equipment [Member] | ||||||||||||
Property, plant and equipment, useful life | 3 years | |||||||||||
Furniture [Member] | ||||||||||||
Property, plant and equipment, useful life | 7 years | |||||||||||
Other Equipment [Member] | ||||||||||||
Property, plant and equipment, useful life | 5 years | |||||||||||
Vehicles [Member] | Ford Motor Credit [Member] | ||||||||||||
Supplemental deferred purchase price | $ 41,627 | |||||||||||
Payments to acquire machinery and equipment | 3,500 | |||||||||||
Debt instrument, face amount | $ 38,127 | |||||||||||
Debt instrument, term | 60 months | |||||||||||
Interest rate | 2.90% | |||||||||||
CALIFORNIA | ||||||||||||
Lease expiration date | January 31, 2023, through March 31, 2025 | |||||||||||
Payments for rent | $ 8,451 | |||||||||||
Sub-leased, option to extend description | we leased an additional 1,796 square feet that has a monthly base rent of $2,514 through March 31, 2025 | |||||||||||
CALIFORNIA | Additional Lease Area [Member] | ||||||||||||
Area of Land | ft² | 1,796 | |||||||||||
Monthly base rent | $ 2,514 | |||||||||||
CALIFORNIA | Sub-Leased Property [Member] | ||||||||||||
Payments for rent | 2,111 | |||||||||||
KOREA, REPUBLIC OF | ||||||||||||
Operating lease, expense | $ 7,040 |
SCHEDULE OF INFORMATION ABOUT T
SCHEDULE OF INFORMATION ABOUT THE COMPANY’S GEOGRAPHICAL OPERATIONS (Details) - USD ($) | 3 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | |
Net Revenue | $ 1,353,986 | $ 1,136,348 | |
Property and equipment, net | 584,119 | $ 309,555 | |
North America [Member] | |||
Net Revenue | 965,932 | 665,741 | |
Property and equipment, net | 464,112 | 184,763 | |
KOREA, REPUBLIC OF | |||
Net Revenue | 388,054 | $ 470,607 | |
Property and equipment, net | 119,511 | 124,246 | |
JAPAN | |||
Property and equipment, net | $ 496 | $ 546 |
SCHEDULE OF AMORTIZATION EXPENS
SCHEDULE OF AMORTIZATION EXPENSE (Details) | Dec. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 22,500 |
2025 | 30,000 |
2026 | 30,000 |
2027 | 20,000 |
Grand Total | $ 102,500 |
INTANGIBLE ASSETS (Details Narr
INTANGIBLE ASSETS (Details Narrative) - USD ($) | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Unamortized tradename asset | $ 102,500 | |
Acquisition rate per year | 30,000 | |
Amortization of intangible assets | $ 7,500 | $ 7,500 |
SCHEDULE OF RESTRICTED COMMON S
SCHEDULE OF RESTRICTED COMMON SHARES (Details) - Restricted Stock [Member] - shares | 3 Months Ended | ||
Mar. 17, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Number of shares outstanding at September, 2023 and 2022 | 50,056 | 3,370 | |
Restricted shares granted | 674 | ||
Restricted shares forfeited | (4,300) | ||
Restricted shares vested | |||
Number of shares outstanding at December 31, 2023 and 2022 | 45,756 | 3,370 |
ISSUANCE OF EQUITY SECURITIES_2
ISSUANCE OF EQUITY SECURITIES (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 05, 2023 | Nov. 09, 2023 | Oct. 18, 2023 | Aug. 11, 2023 | Mar. 22, 2023 | Mar. 15, 2023 | Mar. 17, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | |
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Common stock, par value | $ 0.00001 | $ 0.00001 | ||||||||
Restricted Stock [Member] | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Number of restricted stock, shares | 674 | |||||||||
Restricted shares vest | ||||||||||
Share based compensation | $ 11,505 | $ 62,839 | ||||||||
Forfeited restricted shares | 4,300 | |||||||||
Performance Based Restricted Shares [Member] | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Number of restricted stock, shares | 58,619 | |||||||||
Percentage of performance-based restricted shares | 50% | |||||||||
Randell Weaver [Member] | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Share based compensation | $ 3,751 | |||||||||
Randell Weaver [Member] | Restricted Stock [Member] | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Number of restricted stock, shares | 6,000 | |||||||||
Randell Weaver [Member] | First Anniversary [Member] | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Restricted shares vest | 2,000 | |||||||||
Randell Weaver [Member] | Second Anniversary [Member] | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Restricted shares vest | 2,000 | |||||||||
Randell Weaver [Member] | Third Anniversary [Member] | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Restricted shares vest | 2,000 | |||||||||
Five Independent Directors [Member] | 2013 Stock Incentive Plan [Member] | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Number of restricted stock, shares | 3,370 | |||||||||
Five Independent Directors [Member] | Restricted Stock [Member] | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Number of restricted stock, shares | 4,398 | |||||||||
IPO [Member] | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Common stock, par value | $ 0.00001 | |||||||||
IPO [Member] | Common Stock [Member] | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Number of additional shares issued | 425,000 | |||||||||
Sale of stock price per share | $ 3 | |||||||||
IPO [Member] | Common Stock [Member] | Underwriting Agreement [Member] | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Number of additional shares issued | 63,750 | |||||||||
Net proceeds from offering | $ 178,000 | $ 1,000,000 | ||||||||
Private Placement [Member] | Common Stock [Member] | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Shares issued | 46,800 | |||||||||
Exercise price | $ 2.77 | |||||||||
Shares issued, value | $ 129,662 | |||||||||
Private Placement [Member] | Warrant [Member] | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Warrants to purchase | 5,200 |
SCHEDULE OF STOCK OPTION ACTIVI
SCHEDULE OF STOCK OPTION ACTIVITY (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2023 | Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||
Number of Shares Outstanding, Beginning Balance | 96,458 | |
Weighted Average Exercise Price Outstanding, Beginning Balance | $ 150.39 | |
Weighted Average Remaining Contractual Life (years) Stock Options Exercised | 5 years 9 months 29 days | 5 years 10 months 2 days |
Aggregate Intrinsic Value Options Outstanding, Beginning | ||
Number of Options, Expired | (7,993) | |
Weighted Average Exercise Price, Expired | $ 107.93 | |
Weighted Average Remaining Contractual Life (years) Stock Options Exercised | 2 months 19 days | |
Number of Shares Outstanding, Ending Balance | 88,465 | 96,458 |
Weighted Average Exercise Price Outstanding, Ending Balance | $ 154.23 | $ 150.39 |
Aggregate Intrinsic Value Options Outstanding, Ending Balance | ||
Number of Shares, Exercisable | 65,782 | |
Weighted Average Exercise Price, Exercisable | $ 179.28 | |
Weighted Average Remaining Contractual Life (years) Stock Options, Exercisable | 5 years 10 days | |
Aggregate Intrinsic Value Options, Exercisable |
SCHEDULE OF NONVESTED OPTIONS (
SCHEDULE OF NONVESTED OPTIONS (Details) | 3 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Share-Based Payment Arrangement [Abstract] | |
Number of Nonvested Shares, Beginning | shares | 24,029 |
Weighted Average Grant Date Fair Value Nonvested Shares Beginning | $ / shares | $ 80.73 |
Number of Nonvested Shares, Granted | shares | |
Weighted Average Grant Date Fair Value, Granted | $ / shares | |
Number of Nonvested Shares, Forfeited | shares | (1,334) |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | $ 48.35 |
Number of Nonvested Shares, Vested | shares | (12) |
Weighted Average Grant Date Fair Value, Vested | $ / shares | $ 587.65 |
Number of Nonvested Shares, End | shares | 22,683 |
Weighted Average Grant Date Fair Value Nonvested Shares End | $ / shares | $ 82.37 |
SCHEDULE OF WARRANT ACTIVITY (D
SCHEDULE OF WARRANT ACTIVITY (Details) | 3 Months Ended |
Dec. 31, 2023 USD ($) $ / shares shares | |
Share-Based Payment Arrangement [Abstract] | |
Number of Warrants Outstanding, Beginning | shares | 152,398 |
Weighted Average Exercise Price, Beginning | $ / shares | $ 158.24 |
Weighted Average Remaining Contractual Life (years), outstanding | 2 years 7 months 24 days |
Aggregate Intrinsic Value Warrants Outstanding, Beginning | $ | |
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 | 152,398 |
Weighted Average Exercise Price, Ending | $ / shares | $ 158.24 |
Aggregate Intrinsic Value Warrants Outstanding, Ending | $ | |
Number of Warrants Exercisable | shares | 152,398 |
Weighted Average Exercise Price, Exercisable | $ / shares | $ 158.24 |
Weighted Average Remaining Contractual Life (years), Exercisable | 2 years 7 months 24 days |
Aggregate Intrinsic Value Warrants, Exercisable | $ |
STOCK OPTIONS AND WARRANTS (Det
STOCK OPTIONS AND WARRANTS (Details Narrative) - USD ($) | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Stock option expense | $ 11,505 | $ 197,108 |
New Stock Options [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Stock option forfeited during period, shares | 7,993 | |
Stock Options [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Stock option expense | $ 11,505 | $ 197,108 |
Unamortized option expense | 68,000 | |
Stock option vest and exercisable period | 1 year 4 months 2 days |
CONTINGENCY (Details Narrative)
CONTINGENCY (Details Narrative) | Jan. 16, 2024 USD ($) |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Settlement amount | $ 500,000 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | Apr. 30, 2024 | Mar. 01, 2024 | Jan. 30, 2024 | Jan. 01, 2024 | Nov. 09, 2023 | Jan. 23, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Subsequent Event [Line Items] | ||||||||||
Stockholders equity | $ 986,439 | $ 1,674,357 | $ 7,935,123 | $ 9,742,799 | ||||||
Common Stock [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Stockholders equity | $ 13 | $ 8 | $ 7 | $ 7 | ||||||
Private Placement [Member] | Common Stock [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Shares issued | 46,800 | |||||||||
Exercise price | $ 2.77 | |||||||||
Shares issued, value | $ 129,662 | |||||||||
Private Placement [Member] | Warrant [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Warrants to purchase | 5,200 | |||||||||
Subsequent Event [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Lease term | 2 years | |||||||||
Monthly lease rent | $ 5,760 | |||||||||
Subsequent Event [Member] | Financing Agreement [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Future receipt amounted | $ 246,000 | |||||||||
Immediate cash payment | $ 200,000 | |||||||||
Receivable description | future receipts are being repaid on a biweekly basis at the rate of $9,460 every two weeks with payment in full after 26 biweekly payments. | |||||||||
Subsequent Event [Member] | Two Investors [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Convertible notes issued | $ 320,000 | |||||||||
Conversion price | $ 1.447 | |||||||||
Annual interest rate | 7% | |||||||||
Subsequent Event [Member] | Common Stock [Member] | Two Investors [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Debt conversion, shares issued | 221,147 | |||||||||
Subsequent Event [Member] | Private Placement [Member] | Common Stock [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Shares issued | 14,220 | |||||||||
Shares issued, value | $ 30,004 | |||||||||
Subsequent Event [Member] | Private Placement [Member] | Warrant [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Warrants to purchase | 1,279 | |||||||||
Exercise price | $ 2.11 | |||||||||
Warrant term | 5 years | |||||||||
Subsequent Event [Member] | Maximum [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Stockholders equity | $ 2,500,000 |