VISTA,
Calif., Jan. 17, 2024 /PRNewswire/ -- NuZee,
Inc. ("NuZee" or the "Company")(NASDAQ: NUZE), a leading coffee
co-packing and technology company, today announced its
full-year fiscal 2023 financial results for the period ended
September 30, 2023. The company
reported fiscal 2023 earnings per share of ($11.95), compared with ($21.32) in 2022.
Randy Weaver, President, Chief
Operating Officer and Chief Financial Officer of NuZee said,
"Fiscal 2023 was a year of focus on operating expenses, which
declined more than 20% from the prior year. Looking ahead to fiscal
2024, we expect to see continued improvement across core aspects of
the operating business. As previously disclosed, we have begun a
restructuring program which we expect to generate cost reductions
in excess of $1.0 million annually.
In addition to continued focus on controlling expenses, we are
optimistic about improving revenue trends, with fiscal first
quarter 2024 revenue showing a sequential improvement from the
prior quarter."
Operating Results
Total revenue for fiscal year 2023 increased 7.7% to
$3.3 million from $3.1 million last year, reflecting higher
co-packing revenues in Korea, partially offset by lower revenues in
North America.
The Company sustained a full-year operating loss of $8.9 million in fiscal 2023 compared with an
operating loss of $11.4 million in
fiscal year 2022. The Company also recognized a full-year gross
profit of $0.0 million compared with
a loss of ($0.1) million in
2022.
Full-year operating expenses declined 21.4% to $8.9 million from $11.3
million, reflecting lower stock-based compensation, lower
impairment charges, and lower marketing consulting, insurance and
facilities expenses, partially offset by higher legal expenses.
Subsequent Events
On December 6, 2023, the Company
appointed Randell Weaver to serve as
the Company's President and Chief Operating Officer, effective
immediately. Mr. Weaver continues to also serve as the Company's
Chief Financial Officer.
The Company offered, in an underwritten public offering (the
"Offering"), 425,000 shares of common stock, par value $0.00001 per share (the "Common Stock"), at a
price to the public of $3.00 per
share of Common Stock (the "Offering Price"). The Offering was made
pursuant to a shelf registration statement filed with and declared
effective by the Securities and Exchange Commission (the "SEC")
(Registration No. 333-274818), a base prospectus, dated
October 5, 2023, included as part of
the registration statement, and a prospectus supplement, dated
October 17, 2023.
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 additional
shares of Common Stock at the Offering Price, less underwriting
discounts and commissions. The Company received approximately
$1.0 million in net proceeds from the
Offering, after deducting underwriting discounts and commissions
and other estimated Offering expenses payable by the Company.
In addition, on December 5, 2023, the
Underwriter utilized its option to purchase additional shares of
Common Stock resulting in additional net proceeds of $178,000 after deducting underwriting discounts
and commissions.
On November 9, 2023, the Company
issued in a private placement to an accredited investor 46,800
shares of Common Stock, together with warrants to purchase a total
of approximately 5,200 shares of Common Stock at an exercise price
of $2.77 per share (collectively, the
"Subscription Shares") in accordance with the terms of a
Subscription Agreement and Common Stock Purchase Warrant. The
warrants have a five-year term and are exercisable upon the
six-month anniversary of the original issuance date. The
Subscription Shares were issued with a purchase price of
$129,636.
NuZee,
Inc.
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
September
30,
2023
|
September
30,
2022
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash
|
|
$
1,373,101
|
$
|
8,315,053
|
Accounts receivable,
net
|
|
586,878
|
|
345,258
|
Inventories,
net
|
|
998,070
|
|
947,995
|
Prepaid expenses and
other current assets
|
|
418,200
|
|
547,773
|
Total current
assets
|
|
3,376,249
|
|
10,156,079
|
|
|
|
|
|
Property and
equipment, net
|
|
309,555
|
|
525,075
|
|
|
|
|
|
Other
assets:
|
|
|
|
|
Right-of-use asset –
operating lease
|
|
403,258
|
|
642,624
|
Investment in
unconsolidated affiliate
|
|
162,259
|
|
169,634
|
Intangible assets,
net
|
|
110,000
|
|
140,000
|
Other
assets
|
|
79,677
|
|
77,962
|
Total other
assets
|
|
755,194
|
|
1,030,220
|
|
|
|
|
|
Total
assets
|
|
$
4,440,998
|
$
|
11,711,374
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
accrued expenses
|
|
$
1,903,923
|
$
|
820,200
|
Current portion of
long-term loan payable
|
|
4,753
|
|
7,947
|
Current portion of
lease liability - operating lease
|
|
216,128
|
|
388,325
|
Current portion of
lease liability - finance lease
|
|
26,048
|
|
24,518
|
Deferred
income
|
|
379,795
|
|
319,707
|
Other current
liabilities
|
|
25,756
|
|
39,241
|
Total current
liabilities
|
|
2,556,403
|
|
1,599,938
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
Lease liability -
operating lease, net of current portion
|
|
162,301
|
|
267,786
|
Lease liability -
finance lease, net of current portion
|
|
-
|
|
29,622
|
Loan payable - long
term, net of current portion
|
|
-
|
|
4,745
|
Other noncurrent
liabilities
|
|
47,937
|
|
66,484
|
|
|
210,238
|
|
368,637
|
|
|
|
|
|
Total
liabilities
|
|
$
2,766,641
|
$
|
1,968,575
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common stock;
200,000,000 shares authorized, $0.00001 par
value; 782,739 and 676,229 shares
issued and outstanding as of September 30, 2023 and 2022,
respectively
|
|
8
|
|
7
|
Additional paid in
capital
|
|
74,925,843
|
|
74,281,418
|
Accumulated
deficit
|
|
(73,371,987)
|
|
(64,622,520)
|
Accumulated other
comprehensive income
|
|
120,493
|
|
83,894
|
Total stockholders'
equity
|
|
1,674,357
|
|
9,742,799
|
|
|
|
|
|
Total liabilities
and stockholders' equity
|
|
$
4,440,998
|
$
|
11,711,374
|
|
|
|
|
|
|
|
NuZee,
Inc.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
Year Ended
September 30, 2023
|
Year
Ended
September 30,
2022
|
|
|
Revenues,
net
|
|
$
|
3,348,831
|
3,109,162
|
|
|
Cost of
sales
|
|
|
3,340,013
|
3,219,575
|
|
|
Gross
loss
|
|
|
8,818
|
(110,413)
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
8,880,435
|
11,292,105
|
|
|
Loss from
operations
|
|
|
(8,871,617)
|
(11,402,518)
|
|
|
|
|
|
|
|
|
|
Other
income
|
|
|
365,766
|
191,631
|
|
|
Loss from equity
method investment
|
|
|
(7,375)
|
(5,791)
|
|
|
Other
expense
|
|
|
(251,656)
|
(574,710)
|
|
|
Interest income
(expense), net
|
|
|
15,415
|
(6,324)
|
|
|
Net
loss
|
|
$
|
(8,749,467)
|
(11,797,712)
|
|
|
|
|
|
|
|
|
|
Basic and diluted
loss per common share
|
|
$
|
(11.95)
|
(21.32)
|
|
|
|
|
|
|
|
|
|
Basic and diluted
weighted average number of common stock outstanding
|
|
|
732,421
|
553,322
|
|
|
|
|
|
|
|
|
|
|
About NuZee
NuZee, Inc., (NASDAQ: NUZE), is a leading co-packing company for
single-serve coffee formats that partners with companies to help
them expand within the single-serve and private label coffee
category. Providing end-to-end innovative and sustainable solutions
with the flexibility and capacity for both small roasters and large
global brands, NuZee is revolutionizing the way single-serve coffee
is enjoyed in the U.S. Through the brand's unique process, NuZee
fulfills every aspect of co-packing needs, from sourcing, roasting
and blending, to packing and packaging.
Forward-Looking Statements
This press release contains forward-looking statements that are
made pursuant to the safe harbor provisions within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. These
forward-looking statements include, but are not limited to, NuZee's
beliefs, plans, goals, objectives, expectations, assumptions,
estimates, intentions, future performance, other statements that
are not historical facts and statements identified by words such as
"expects", "anticipates", "intends", "plans", "believes", "seeks",
"estimates" or words of similar meaning. NuZee cautions you that
such statements are simply predictions and actual events or results
may differ materially. These statements reflect NuZee's current
expectations and NuZee does not undertake to update or revise these
forward-looking statements except as required by law, even if
experience or future changes make it clear that any projected
results expressed or implied in this or other NuZee statements will
not be realized. Further, these statements involve risks and
uncertainties, many of which are beyond NuZee's control, which
could cause actual results to differ materially from the
forward-looking statements. Statements related to, among other
things, the consummation of the offering of common stock and
potential changes in market conditions constitute forward-looking
statements. These risks and uncertainties, many of which are beyond
our control, include: NuZee's plan to obtain funding for its
operations, including funding necessary to develop, manufacture and
commercialize its products; the impact to NuZee's business from the
COVID-19 global crisis; general market acceptance of and demand for
NuZee's products; and NuZee's commercialization, marketing and
manufacturing capabilities and strategy; for description of
additional factors that may cause NuZee's actual results,
performance or expectations to differ from any forward looking
statements, please review the information set forth in the "Risk
Factors" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations" sections of NuZee's public
reports and NuZee's other filings made with the SEC.
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SOURCE NuZee, Inc.