Revenue Contributions - For the fiscal year ended September 30, 2025, the Maca Series products contributed $144,726, or 1.41% of total revenue[60]. - The Homology of Medicine and Food Series products generated $6,349,252, accounting for 61.71% of total revenue, with exosome eye drops contributing 60.10% of that revenue[64]. - The Computing Power Product Series generated $3,804,691, representing 36.94% of total revenue for the fiscal year ended September 30, 2025[66]. - Revenue from the Maca Series and Homology of Medicine and Food Series products accounted for 61.51% of total revenue for the fiscal year ended September 30, 2025, indicating a high concentration in these product lines[144]. - The company introduced two new revenue streams for the fiscal year ended September 30, 2025, including the Computing Power Product Series and the Homology of Medicine and Food Series[181]. Market Growth Projections - The global Maca market is projected to grow at a CAGR of over 4.2% from 2026 to 2035, exceeding approximately $100 million by 2035[75]. - The global Medicine and Food Homologous Products market is expected to grow from $1.07 billion in 2024 to $1.45 billion by 2031, representing a CAGR of 4.5% from 2025 to 2031[76]. - The global artificial intelligence hardware market is projected to grow from $66.8 billion in 2025 to $296.3 billion in 2034, representing a CAGR of 18%[77]. Distribution and Sales Strategy - The company has secured exclusive distribution rights for "Kangduoyuan" brand Maca products in Asia for a three-year term[42]. - The company has expanded its operational footprint through acquisitions, including Beijing Xilin and Shanghai Huomao, enhancing distribution capabilities in Asia[67]. - The company plans to leverage digital technologies to enhance marketing effectiveness and diversify sales models across its product lines[56]. - The company plans to expand its sales channels to include both offline (convenience stores, supermarkets, gas stations) and online platforms (TikTok, Alibaba, JD.com) to enhance brand exposure and optimize user experience[79]. - The company aims to target sales and distribution to 25,000 uSmile PetroChina convenience stores and 400 Guangdong Petroleum Co., Ltd. convenience stores over the next three years[89]. Product Development and Innovation - The company plans to introduce new product lines, including Maca Peptide Coffee and Maca Wine, to diversify its offerings and meet evolving consumer demands[88]. - The company is focusing on developing Maca-based products for the Asian market, with new products like Maca Peptide Coffee and Maca Wine under development[147]. - The expansion of sales and distribution activities for Maca products in Asia began toward the end of 2024, with the Homology of Medicine and Food Series introduced in Q4 of the fiscal year ended September 30, 2025[148]. Financial Compliance and Challenges - The company received a notification from Nasdaq regarding non-compliance with the stockholders' equity requirement, failing to maintain a minimum of $2,500,000 in stockholders' equity[98]. - The Company completed a convertible note financing of $320,000 on April 27, 2024, followed by an equity financing of $1,500,000 on June 4, 2024, and another equity financing of $3,000,000 on July 11, 2024[99]. - The Company received a Minimum Bid Price Notice from Nasdaq on January 14, 2025, indicating non-compliance with the minimum bid price requirement of $1.00 per share, with a compliance period until July 14, 2025[100]. - The Company was notified on January 17, 2025, of non-compliance with Nasdaq Listing Rule 5250(c)(1) due to the late filing of its Annual Report on Form 10-K for the fiscal year ended September 30, 2024[101]. - The Company submitted a compliance plan to Nasdaq on March 18, 2025, which included deadlines for filing its Form 10-K by June 13, 2025, and Form 10-Q by July 14, 2025[103]. Risks and Uncertainties - The company faces risks related to compliance with evolving PRC laws and regulations, which could materially affect operations and stock value[124]. - A slowdown in the PRC economy may adversely impact customer demand for the company's services and products[124]. - The company is subject to significant costs associated with maintaining compliance as a public entity, which may affect financial results[47]. - The fluctuation of the Renminbi and restrictions on currency exchange may adversely affect the company's investment and revenue utilization[124]. - The company has incurred net losses since its inception in 2013, with net losses of $4.89 million and $8.97 million for the fiscal years ended September 30, 2025, and 2024, respectively, leading to an accumulated deficit of approximately $87.23 million as of September 30, 2025[128]. Competition and Market Dynamics - The company faces significant competition in the Maca products industry, competing against both major international companies and local brands[153]. - Inflationary pressures on the cost structure are expected to continue, which may impact pricing strategies and sales volume[164]. - The reliance on third-party suppliers and distribution networks poses risks that could adversely affect operations and profitability[156][157]. - The company anticipates challenges in managing future growth effectively, which could strain operational infrastructure[165]. Regulatory and Geopolitical Factors - Ongoing geopolitical tensions, including U.S.-China trade relations, may lead to economic instability and affect supply chains and consumer demand[178]. - The PRC government's policies can significantly impact the company's operations and profitability in China, with potential changes in laws and regulations posing risks[187]. - The transition of the PRC economy towards a market-oriented model may strengthen economic relationships with foreign countries, but uncertainties remain regarding future policy changes[188]. - The company's Hong Kong subsidiary, DZR Tech, is subject to evolving data security and antimonopoly laws, which could lead to government enforcement actions and operational disruptions[189]. Intellectual Property and Legal Risks - The company relies on intellectual property rights for its competitive position, but there is a risk of competitors copying products or independently developing similar intellectual property[167]. - The company may be subject to costly legal proceedings related to intellectual property infringement, which could disrupt operations and incur significant expenses[168]. - The company must comply with the U.S. Foreign Corrupt Practices Act, which prohibits bribery and could disadvantage it compared to competitors not subject to these regulations[235]. - The company has operations in China and must navigate potential legal liabilities related to sales practices and compliance with the FCPA[236]. Stock Market and Investment Risks - The market price of the company's Common Stock is likely to be highly volatile[237]. - Stock price fluctuations may occur in response to various uncontrollable factors[237]. - Historical data indicates extreme price and volume fluctuations in the stock market[237]. - Broad market and industry factors may negatively impact the market price of the company's Common Stock[237]. - The realization of risks could have a dramatic and material adverse impact on the market price[237].

Financial Performance - CIMG Inc. reported net revenues of $61,578 for the three months ended June 30, 2025, a decrease of 83.2% compared to $366,888 for the same period in 2024[16] - The company's gross profit for the three months ended June 30, 2025, was $5,133, compared to a gross loss of $146,213 in the prior year, indicating a significant improvement in cost management[16] - CIMG Inc. reported a net loss of $1,068,242 for the three months ended June 30, 2025, compared to a net loss of $1,440,197 for the same period in 2024, representing a 25.8% improvement[16] - For the nine months ended June 30, 2025, the net loss from continuing operations was $2,990,047, compared to a net loss of $5,242,739 for the same period in 2024, indicating a reduction in losses[25] - For the nine months ended June 30, 2025, the company reported revenues of $84,431, a significant decrease of 94.85% compared to $1,641,955 for the same period in 2024[95] - The net loss for the nine months ended June 30, 2025 was $2,990,047, a reduction of 43.5% from the net loss of $5,242,739 in the same period of 2024[95] Operating Expenses and Management - Operating expenses for the three months ended June 30, 2025, were $1,117,290, down from $1,335,371 in the same period last year, reflecting a reduction of approximately 16.4%[16] - Operating expenses for the nine months ended June 30, 2025 were $3,387,725, down 28.7% from $4,748,076 in the prior year[72][73][95] Assets and Liabilities - The total assets of CIMG Inc. increased to $13,309,302 as of June 30, 2025, compared to $5,587,655 as of September 30, 2024, indicating a growth of 138.5%[14] - Current liabilities decreased to $2,671,985 as of June 30, 2025, from $6,238,323 as of September 30, 2024, a reduction of approximately 57.0%[14] - The company’s accumulated deficit increased to $85,335,700 as of June 30, 2025, compared to $82,344,722 as of September 30, 2024, reflecting ongoing financial challenges[14] Cash Flow and Financing - The company reported a significant increase in cash provided by financing activities, totaling $10,964,632 for the nine months ended June 30, 2025, compared to $3,626,638 for the same period in 2024[25] - As of June 30, 2025, the total cash balance was $35,958, a decrease from $374,458 at the end of June 30, 2024[25] - The company issued 6,000,000 shares of common stock in a private placement, raising approximately $451,628[22] - The Company anticipates needing to raise additional capital immediately to fund operations, with no assurance of obtaining funds on commercially acceptable terms[38] Strategic Initiatives - The company is focusing on expanding its co-packing services and developing innovative new products to enhance revenue streams[12] - CIMG Inc. completed the acquisition of Beijing Xilin and Huomao, enhancing its market presence in Asia[32] - The company is expanding its sales and distribution channels in Asia to include a broader range of consumer food and beverage products, leveraging an online sales platform[28] Legal and Compliance Issues - The Company is facing a lawsuit from Mr. Sooncha Kim, claiming damages of $1,041,216 due to alleged breaches of a Convertible Note and Warrant Purchase Agreement[123] - A judgment by default of $58,920.34 was entered against the Company in a lawsuit filed by former directors for unpaid fees and expenses[125] - The total amount of judgments sought by the former directors is $222,062.28, reflecting individual claims for Kevin Connor ($54,000), Chris Jones ($52,125), Nobuki Kurita ($46,500), and David Robson ($50,250)[126] Inventory and Receivables - As of June 30, 2025, total inventory was valued at $11,882,544, a substantial increase from $4,548,035 as of September 30, 2024[78][79] - Total accounts receivable as of June 30, 2025, was $75,630, with no allowance for credit loss[45] Other Financial Metrics - The company recorded a foreign currency translation gain of $42,408 for the nine months ended December 31, 2023[22] - The Company recorded a total of $1,248,957 in prepaid expenses and other current assets as of June 30, 2025, significantly higher than $382,648 as of September 30, 2024[77] - Other income for the nine months ended June 30, 2025 was $452,142, primarily due to the settlement and forgiveness of accounts payable, compared to $412,580 in 2024[74][75]

Financial Performance - Total revenues for the three months ended December 31, 2024, were $22,853, a significant decrease of 97.6% compared to $965,932 for the same period in 2023[17] - Gross profit for the same period was $15,479, down from $124,534, reflecting a decline of 87.6% year-over-year[17] - The net loss for the three months ended December 31, 2024, was $1,536,249, compared to a net loss of $2,148,611 for the same period in 2023, indicating an improvement of 28.5%[20] - Operating expenses for the three months ended December 31, 2024, were $1,517,758, a decrease from $2,145,642 in the same period of 2023, reflecting a reduction in personnel and marketing costs[72][73] - Other income for the three months ended December 31, 2024, was $9,047, down from $46,832 in the same period of 2023, primarily due to a decrease in rental income[74][75] Assets and Liabilities - Total current assets decreased to $5,034,920 as of December 31, 2024, from $5,405,641 as of September 30, 2024, a decline of 6.9%[14] - Total liabilities decreased to $3,640,244 as of December 31, 2024, from $6,238,323 as of September 30, 2024, a reduction of 41.7%[14] - Cash and cash equivalents at the end of the period were $124,715, down from $464,222 at the end of the previous quarter, a decrease of 73.1%[14] - As of December 31, 2024, total accounts receivable was $0, down from $3,450,141 as of September 30, 2024[46] - As of December 31, 2024, accounts payable totaled $1,109,759, while accrued expenses were $710,441, resulting in total liabilities of $1,820,200[69] Capital and Financing - The company expects to need additional capital to fund planned operations beyond the next three months[12] - The company entered into a convertible note purchase agreement to issue convertible notes totaling $1,300,000, with a conversion price of $0.94 per share[39] - On October 31, 2024, the Company issued 1,396,813 shares of Common Stock following the conversion of $1,300,000 in convertible notes[109] - A private placement was completed on January 16 and 17, 2025, raising $10,000,000 through the issuance of 25,641,023 shares of common stock[122] - The Company issued 19,457,618 shares of common stock following the conversion of notes by investors on March 18, 2025[122] Business Operations - The company is expanding its sales and distribution channels in Asia to include a broader range of consumer food and beverage products[28] - The company is focusing on developing innovative new products and services, as well as expanding co-packing services to complementary products[12] - The company has reduced its single-serving pour-over coffee packaging business and introduced new products such as maca peptide coffee in 2024[62] - The Company operates in one business segment, focusing on the commercialization and development of functional beverages[90] Legal Matters - The Company is facing a lawsuit from former directors claiming unpaid fees and expenses exceeding $200,000 from Q4 FY2023 to Q2 FY2024[121] - The Company is currently involved in ongoing litigation with Mr. Sooncha Kim, who is seeking $1,041,216 in damages related to a Convertible Note and Warrant Purchase Agreement[124] - The Company believes it has a strong defense against the claims in the Kim Litigation[125] - The Company has not yet entered a default in the Ex-Directors lawsuit, and negotiations are ongoing[126] Shareholder Information - The Company reported a basic and diluted loss per common share of $0.17 for the three months ended December 31, 2024, compared to $1.84 for the same period in 2023[17] - The Company reported a total of 5,226,325 restricted common shares outstanding as of December 31, 2024, compared to 45,756 shares in 2023[111] - The Company has not granted any new stock options during the three months ended December 31, 2024, and recognized stock option expense of $Nil for this period[112] Inventory and Assets - The carrying value of inventory as of December 31, 2024, was $4,608,307, consisting mainly of raw materials valued at $4,540,113[78][79] - Property and equipment net value as of December 31, 2024, was $1,997, a significant decrease from $2,268 as of September 30, 2024, due to accumulated depreciation[80] - Prepaid expenses and other current assets totaled $291,162 as of December 31, 2024, down from $382,648 as of September 30, 2024[77] Other Financial Adjustments - The company recorded an allowance for credit loss of $Nil as of December 31, 2024, compared to $3,450,141 as of September 30, 2024[45] - The foreign currency translation adjustment for the three months ended December 31, 2024, was $(192,038), compared to $42,408 for the same period in 2023[60] - Other expenses for the three months ended December 31, 2024, were $43,017, compared to $49,195 in the same period of 2023, indicating a reduction in deferred financing costs[76]

Financial Performance - CIMG Inc. reported net losses of $8.56 million and $8.75 million for the years ended September 30, 2024 and 2023, respectively, with an accumulated deficit of approximately $81.93 million as of September 30, 2024[73]. - The company expects to need additional capital to fund its operations for at least the next twelve months, raising substantial doubt about its ability to continue as a going concern[112]. - The company has a history of net losses and expects to continue incurring losses in the future, which may hinder its ability to achieve profitability[111]. - The company may consider raising additional capital to expand its business, pursue strategic investments or acquisitions, and finance capital expenditures[114]. - The company has incurred significant sales and marketing expenses, which it expects to continue prior to generating sufficient revenue[110]. - Future financial results are difficult to predict, and failure to meet market expectations could lead to a decline in stock price[125]. Market Strategy and Expansion - CIMG aims to expand its sales and distribution channels in Asia, focusing on maca-enhanced food and beverages, leveraging a digital marketing strategy to drive sales growth[41][43]. - The company plans to enhance its distribution network by integrating online and offline sales channels, including partnerships with grocery stores, convenience stores, and vending machines[69]. - CIMG's Maca-Noni product is positioned as a healthier alternative to traditional energy drinks, made primarily from maca extracts without caffeine[57]. - CIMG aims to expand its product offerings with new maca-based items, enhancing revenue streams and market penetration in the wellness sector[77]. - The company is focusing on geographic expansion in Asia, particularly China and Southeast Asia, and exploring opportunities in North America and Europe[77]. - CIMG intends to increase brand awareness through digital marketing and partnerships with influencers, aiming to create a strong emotional connection with consumers[77]. Compliance and Regulatory Issues - CIMG completed a convertible note financing of $320,000 and equity financing of $4.5 million in 2024 to comply with NASDAQ's stockholders' equity requirement[88]. - The company received a notification from NASDAQ regarding non-compliance with the minimum bid price requirement, with a compliance deadline of July 14, 2025[89]. - CIMG has submitted a compliance plan to NASDAQ to address late filings of its annual and quarterly reports, with deadlines set for June 13, 2025, and July 14, 2025, respectively[92]. - The company intends to appeal NASDAQ's delist determination and plans to present its compliance plan by July 7, 2025[96]. - The company faces significant costs and management time devoted to compliance with NASDAQ listing requirements, which may adversely affect its financial condition[206]. Competition and Market Risks - The company faces significant competition in the maca products industry, competing with major international companies and local brands, which may limit market share[127]. - The company may face increased competition and changes in the retail landscape that could impact its financial results[102]. - The company may not successfully develop innovative new products or may face delays in product launches, affecting customer loyalty and sales[124]. - The company faces risks in accurately forecasting customer demand, which could lead to excess inventory or inability to meet demand, adversely affecting net revenues and net income[140]. Operational Challenges - The company has a limited operating history, making it difficult to evaluate its current business and forecast future performance[101]. - The decentralized management structure may lead to increased operational costs and communication delays[137]. - The company anticipates challenges in managing future growth effectively, which could strain its operational infrastructure[139]. - The company relies on third-party suppliers and manufacturing partners, which exposes it to risks related to their performance and financial stability[130]. Legal and Regulatory Environment - Changes in the PRC government's policies could significantly impact the company's business operations and profitability in China[145]. - The company must comply with CSRC regulations for overseas securities issuance, and failure to obtain necessary approvals could lead to sanctions and affect financial results[146]. - The PRC legal system presents significant uncertainties that could adversely affect the company's operations and legal protections[156]. - The enforcement of existing laws in the PRC is uncertain, which may hinder the company's ability to obtain swift and equitable legal remedies[157]. Economic Factors - A slowdown in the PRC economy could reduce demand for the company's products and services, impacting overall performance[150]. - Future inflation in China could inhibit profitability if costs rise faster than prices for the company's products and services[152]. - Fluctuations in the Renminbi could adversely affect the company's financial results and the value of its stock[153]. - The company expects to experience inflationary pressure on its cost structure, which may impact sales volume if price increases are not sufficient[138]. Data Security and Compliance - The company has implemented network security measures, but vulnerabilities remain, and significant breaches could lead to costly legal actions and damage to reputation[226]. - Compliance with China's new Data Security Law and Cyber Security Law may entail significant expenses and could materially affect the company's business[176]. - The Personal Information Protection Law, effective November 1, 2021, imposes comprehensive data privacy requirements and significant fines for violations[181]. Stock and Market Performance - The market price of the company's stock may be highly volatile, influenced by various factors beyond its control[188]. - An active trading market for the company's Common Stock may not be sustained, potentially impairing capital-raising efforts[189]. - The Company completed a 1-for-35 reverse stock split on December 28, 2022, and regained compliance with the minimum bid price requirement on January 17, 2023[192].

Core Insights - NUZEE, INC. has signed an endorsement agreement with five sports champions to promote its maca beverage, Macanuoli, for a one-year cooperation period [1][2][3] Group 1: Endorsement Agreement - The agreement allows the use of the sports champions' images for Macanuoli's packaging, advertisements, and public relations activities during the cooperation period [2] - The five sports champions include Ms. Shurui Li (women's basketball), Ms. Chenlin Zhou (trampoline), Ms. Lina Yi (tennis), Ms. Bingjian Li (bodybuilding), and Ms. Shuna Bai (cheerleading) [1] Group 2: Product Information - Macanuoli is NUZEE's first plant-based energy drink, containing ingredients like maca and Noni, which are aimed at relieving physical fatigue and enhancing immunity [2] - The product targets consumers who seek safe, healthy, and natural food options [2] Group 3: Company Strategy - The CEO of NUZEE stated that this collaboration is the first marketing event for Macanuoli, aiming to increase market awareness and promote a healthy lifestyle [3] - NUZEE focuses on reshaping digital marketing and distribution for consumer products, particularly in food and beverages, to enhance commercial value for partners and shareholders [4]

As filed with the Securities and Exchange Commission on August 9, 2024 Registration No. 333- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 NuZee, Inc. (Exact name of registrant as specified in its charter) (I.R.S. Employer Identification No.) 2865 Scott St. Suite 107 Vista, California 92081 (760) 295-2408 (Address, including zip code, and telephone number, including area code, of registrant's principal executive offic ...

Core Viewpoint - Nuzee (NASDAQ:NUZE) stock has experienced a significant increase of 64.3% in pre-market trading, with over 4 million shares traded, surpassing its average daily volume of approximately 3 million shares [1][4]. Group 1: Stock Performance - The stock's price prior to the increase was $3.70 per share, and the company's market capitalization stands at $16.385 million, categorizing it as a penny stock [2]. - The trading activity indicates potential volatility, which may be influenced by retail or day traders, suggesting a risk of manipulation [3]. Group 2: Market Context - There has been no official news or analyst coverage to explain the stock's rally, indicating that the movement may be driven by speculative trading rather than fundamental changes [2][3].

As filed with the Securities and Exchange Commission on June 14, 2024 Registration No. 333- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 NuZee, Inc. (Exact name of registrant as specified in its charter) (State or Other Jurisdiction of Incorporation or Organization) Nevada 5900 38-3849791 (Primary Standard Industrial Classification Code No.) (I.R.S. Employer Identification No.) 2865 Scott St. Suite 107 Vista, Califor ...

Revenue Performance - For the three months ended March 31, 2024, net revenues in North America totaled $323,406, a decrease from $340,976 in the same period of 2023, representing a decline of approximately 2%[98] - For the three months ended March 31, 2024, net revenues in Asia totaled $282,355, down from $440,190 in the same period of 2023, reflecting a decrease of approximately 36%[99] - Total revenue for the three months ended March 31, 2024, was $605,761, a decrease of $175,405 or approximately 22% compared to $781,166 for the same period in 2023[103] - For the six months ended March 31, 2024, net revenues in North America totaled $1,289,338, an increase from $1,006,717 in the same period of 2023, representing a growth of approximately 28%[100] Profitability and Loss - The gross profit for the three months ended March 31, 2024, was a loss of $146,229, compared to a gross profit of $36,630 for the same period in 2023, resulting in a gross margin rate of (24)%[104] - The total gross profit for the six months ended March 31, 2024, was $29,050, down from $112,162 for the same period in 2023, resulting in a gross margin rate of 1%[108] - The net loss for the three months ended March 31, 2024, was $1,653,931, a reduction of $313,942 or approximately 16% compared to a net loss of $1,967,873 for the same period in 2023[106] - The net loss for the six months ended March 31, 2024, was $3,802,542, a decrease of $348,537 or approximately 8% compared to a net loss of $4,151,079 for the same period in 2023[110] Cash Flow and Capital Requirements - Cash used in operating activities for the six months ended March 31, 2024, was $2,997,216, compared to $3,650,375 for the same period in 2023, indicating a decrease in cash outflow[122][123] - Cash used in investing activities increased to $306,241 for the six months ended March 31, 2024, from $16,514 in the prior year, primarily for equipment purchases[122][124] - Cash provided by financing activities was $1,879,790 for the six months ended March 31, 2024, mainly from the issuance of equity securities, contrasting with cash used of $21,555 in the same period of 2023[122][125] - The net change in cash for the six months ended March 31, 2024, was a decrease of $1,373,101, compared to a decrease of $3,615,826 in the same period of 2023[122] - The company has significant contractual cash requirements of approximately $588,812 as of March 31, 2024, with $587,047 due within the next 12 months[121] - As of March 31, 2024, the company had an accumulated deficit of approximately $77 million and a cash balance of $0, indicating a need for additional capital to fund operations[111][114] Compliance and Future Outlook - The company reported stockholders' equity of $1,674,357, which does not meet the Nasdaq listing requirement of at least $2,500,000[120] - The company intends to raise additional capital through public or private equity offerings to support operations, but the availability of such funding is uncertain[117] - If the company fails to raise additional capital, it may not have sufficient funds to continue operations for the next twelve months, raising substantial doubt about its ability to continue as a going concern[119] - The company submitted a plan to regain compliance with Nasdaq listing requirements within the 45-day window after receiving the notice[120] Accounting Policies - There were no significant changes in critical accounting policies during the six months ended March 31, 2024, compared to the previous fiscal year[128]

Production and Product Offerings - NuZee is the only commercial-scale producer in North America with the capacity to pack both single serve pour over coffee and coffee brew bag coffee [23]. - The company has expanded its Coffee Blenders offerings to include a new Cold pressed latte product line available in Korea and online [24]. - NuZee entered into a five-year global licensing agreement with Stone Brewing to produce a full line of specialty products, including DRIPKIT and 12-ounce bagged coffees [29]. - The company anticipates growth in the North American market for single serve pour over and coffee brew bag products due to changing consumer preferences [32]. - NuZee has developed expertise in producing single serve coffee products since 2016, with a focus on operational efficiency and quality standards [37]. - The company has the annual capacity to produce up to 150 million single serve coffee products at its two manufacturing facilities, which is deemed sufficient to meet current and anticipated manufacturing requirements [54]. - NuZee established a joint venture in Mexico, NuZee Latin America, to manufacture single serve coffee products for sale in Mexico, Central and South America, although sales activities generated thus far are minimal [48]. - The company plans to invest in additional equipment to increase capacity for bagged coffee production to satisfy demand from its largest customer [56]. Co-Packing Strategy - NuZee's co-packing model allows for limited inventory risk, as it receives fees based on the number of products produced and delivered [23]. - The company is focusing on expanding its product portfolio to enhance visibility and consumer awareness, targeting both individual consumers and businesses [36]. - NuZee's co-packing arrangements include working with both large companies and innovative smaller companies, aiming to become the co-packer of choice [42]. - The company believes that the saturation of coffee pods in the market presents a substantial opportunity for its single serve coffee products [32]. - NuZee's co-packing customers include both large and small coffee roasters, with a focus on eco-friendly packaging and superior taste compared to machine-based alternatives [49]. - The company aims to grow its base of large national or international co-packing customers while also targeting smaller, innovative coffee companies for co-packing opportunities [66]. Financial Performance - NuZee has incurred net losses of $8.75 million and $11.8 million for the years ended September 30, 2023 and 2022, respectively, with an accumulated deficit of approximately $73.4 million as of September 30, 2023 [64]. - The company has successfully regained compliance with Nasdaq Listing Rule 5550(a)(2) after a reverse stock split on December 28, 2022, which increased the market price of its common stock above $1.00 per share [77]. Intellectual Property and Compliance - The company owns three patents related to the DRIPKIT pour over product, including a design patent expiring in November 2035 and a utility patent expiring in July 2038 [69]. - The company is committed to protecting its intellectual property rights, which is considered a key component of its operating strategy [70]. - The company has a pending utility patent application for broader features of the DRIPKIT portable drip apparatus [69]. - The company has not received any inquiries or regulatory actions from the FDA, indicating full compliance with FDA regulations for its products [73]. - The company’s products are marketed as conventional food or beverages and must comply with various federal and state regulations [74]. Management and Operations - As of September 30, 2023, the company employed 18 full-time employees in the U.S. and 15 in Korea, along with 5 temporary employees for packaging and shipping [71]. - The company intends to expand its management team to include skilled directors and officers relevant to its business focus [72]. - The company has two wholly owned international subsidiaries in Korea and Mexico, enhancing its market presence [79]. - NuZee's manufacturing and sales office in Korea supports its U.S. operations and helps maintain relationships with key vendors [63]. Transparency and Reporting - The company’s annual and quarterly reports are publicly available on its website, ensuring transparency with investors [80].