UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

FORM 10-Q

 

x   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended December 31, 2013

 

¨   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from   to   

 

Commission File No. 333-176684 

 

 

NUZEE, INC.

(exact name of registrant as specified in its charter)

 

 

 

Nevada

 

38-3849791

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification Number)

 

 

16955 Via Del Campo, Suite 260

San Diego, CA 92127

(Address of principal executive offices)    (zip code)

 

(858) 549-6893 or toll free (855) 936-8933

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Titles of each class

 

Name of each exchange on which registered

None

 

N/A

 

 

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes­  ¨    No 

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).                                                                                                                                              

                                                                                                                                                 Yes­    No  ¨ 

 


 
 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.  See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

¨

 

 

Accelerated filer

 

¨

Non-accelerated filer

 

¨

(Do not check if smaller reporting company)

 

Smaller reporting company

 

x

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).                                                                                                         Yes­­  ¨    No 

 

APPLICABLE ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

 

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.                                                                                                                                                           

                                                                                                                                                   Yes­­  ¨    No  ¨ 

 

(APPLICABLE ONLY TO CORPORATE REGISTRANTS)

 

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.

 

As of February 11, 2014, NuZee, Inc. had 28,991,690 shares of common stock outstanding.

 

 

Table of Contents

PART I.

Item 1.       Financial Statements.

(a)        Balance Sheets as at December 31, 2013 and September 30, 2013 (Unaudited).

(b)       Statement of Operations for the three months ended December 31, 2013 and 2012, and for the cumulative period from inception ( November 9, 2011 ) through December 31, 2013 (Unaudited). 

(c)        Statement of Cash Flows for the three  months ended December 31, 2013 and for the cumulative period from inception ( November 9, 2011 ) through December 31 2013 (Unaudited). 

(d)       Notes to Consolidated Financial Statements (Unaudited).

 

 

Item 2.       Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Item 3.       Quantitative and Qualitative Disclosures About Market Risk.

Item 4.       Controls and Procedures

 

PART II.

Item 1.       Legal Proceedings

Item 1A.    Risk Factors

Item 2.       Unregistered Sales of Equity Securities and Use of Proceeds

Item 3.       Defaults Upon Senior Securities

Item 4.       Mine Safety Disclosures

Item 5.       Other Information

Item 6.       Exhibits

 

2


 
 

FORWARD-LOOKING INFORMATION

 

This Quarterly Report on Form 10-Q of NuZee, Inc. contains “forward-looking statements” that may state our management’s plans, future events, objectives, current expectations, estimates, forecasts, assumptions or projections about the company and its business.  Any statement in this report that is not a statement of historical fact is a forward-looking statement, and in some cases, words such as “believes,” “estimates,” “projects,” “expects,” “intends,” “may,” “anticipates,” “plans,” “seeks,” and similar expressions identify forward-looking statements.  Forward-looking statements involve risks and uncertainties that could cause actual outcomes and results to differ materially from the anticipated outcomes or results.  These statements are not guarantees of future performance, and undue reliance should not be placed on these statements.  It is important to note that our actual results could differ materially from what is expressed in our forward-looking statements due to the risk factors described in the section of our Form 8-K filed on August 12, 2013 entitled “Risk Factors.”

 

We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3


 
 

PART I.

Item 1.  Financial Statements.

Nuzee, Inc.

(A Development Stage Company)

CONSOLIDATED BALANCE SHEET

(Unaudited)

 

 

 
 

December 31, 2013

September 30, 2013

ASSETS

   
 

Current Assets

   
   

Cash

$                   686,946

$                 1,110,661

   

Accounts Receivable

-

13,195

   

Related Party Receivables

 

139,661

   

Inventories

35,421

-

   

Prepaid expenses and deposits

62,919

16,896

   

Total current assets

785,286

1,280,413

   
   

Equipment, net

10,122

8,663

   
 

Total Assets

$                   795,408

$                 1,289,076

 

   

LIABILITIES AND STOCKHOLDERS' EQUITY

   
 

Current Liabilities

   
   

Accounts payable

$                     60,360

$                     55,822

   

Advances from Stockholders'

-

50,000

   

Other Current Liabilities

-

9,563

   

Total Current Liabilities

60,360

115,385

   
 

Stockholders' Equity

   
 

Preferred stock; 100,000,000 shares authorized, $0.00001 par value;

0 shares issued and outstanding

-

-

   

Common stock; 100,000,000 shares authorized, $0.00001 par value;

28,991,690 and 37,957,790 shares issued and outstanding

290

380

   

Additional paid in capital

3,520,533

2,556,349

   

Accumulated deficit

(2,785,775)

(1,383,038)

   

Total Stockholders' Equity

735,048

1,173,691

   
 

Total Liabilities and Stockholders' Equity

$                   795,408

$                 1,289,076

 

 

 

T he  accompanying  notes  are  an  integral part  of  these  unaudited  financial  statements.
F-1

 

 

 
 

Nuzee, Inc.

(A Development Stage Company)

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

Three Months Ended
December 31, 2013

Three Months Ended
December 31, 2012

For the period from November 9, 2011 (Inception)

to December 31, 2013

       

Revenues

$                          -

$                  36,825

$               122,232

Cost of revenues

-

19,208

244,806

        Gross profit (loss)

-

17,617

(122,574)

Operating expenses

1,402,880

198,078

2,664,114

Loss from operations

(1,402,880)

(180,461)

(2,786,688)

       

Other Income

143

608

913

       

Net loss

$           (1,402,737)

$             (179,853)

$          (2,785,775)

       

Basic and diluted loss per common share

$                  (0.05)

$                  (0.01)

 
       

Basic and diluted weighted average number of common shares outstanding

31,135,757

31,486,956

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying  notes  are  an  integral part  of  these  unaudited  financial  statements. 

F-2

 

 

 
 

Nuzee, Inc.

(A Development Stage Company)

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

                 
 

Three Months Ended

December 31, 2013

Three Months
Ended

December 31,
2012

For the period from November 9, 2011 (Inception)

to December 31, 2013

Operating Activities

     
 

Net loss

        $

             (1,402,737)

$

                     (179,853)

$

                 (2,785,775)

Adjustments to reconcile net loss to net cash

         
 

used by operating activities:

           
 

Stock-based compensation

     

1,053,755

-

1,053,755

 

Depreciation

       

468

93

1,179

 

Provision for obsolete inventory

   

-

-

141,903

Changes in operating assets and liabilities:

         
 

Accounts Receivable

       

13,195

(178)

-

 

Related Party Receivables

     

-

(139,661)

(139,661)

 

Inventories

       

(35,421)

41,551

(177,324)

 

Prepaid expenses and deposits

     

(46,023)

(71,502)

(62,919)

 

Accounts payable

       

4,538

(45,705)

60,360

 

Other Current Liabilities

     

(9,563)

(7,011)

-

           

 

 

 

 

Net cash used by operating activities

 

(421,788)

(402,266)

(1,908,482)

                 

Investing Activities:

             
 

Purchase of furniture and equipment

   

(1,927)

-

(11,301)

 

Net cash used by investing activities

   

(1,927)

-

(11,301)

                 

Financing Activities:

             
 

Advances from Stockholders

     

-

 

199,710

 

Proceeds from issuance of common stock

   

-

250,290

2,407,019

 

Net cash provided by financing activities

   

-

250,290

2,606,729

                 

Net change in cash

       

(423,715)

(151,976)

686,946

Cash, beginning of period

       

1,110,661

165,484

-

Cash, end of period

       

                     686,946

$

                           13,508

$

                    686,946

                 

Supplemental disclosure of cash flow information:

         
 

Cash paid for interest

        $

                                -

$

                                    -

$

                                -

 

Cash paid for taxes

        $

                                -

$

                                    -

$

                                -

                 

Non Cash Investing and Financing Activities:

         
 

Common Stock issued for conversions of advance from stockholder

  $

                               -

$

                        149,710

$

                     149,710

Common Stock issued in exchange for acquisition of intellectual property

$  

-  

$

-   

$

42,818  

 

Cancellation of common stocks

      $

                (139,661)

$

                                    -

$

                  (182,479)

 

The accompanying  notes  are  an  integral part  of  these  unaudited  financial  statements.
F-3


 

Nuzee, In c

(A Development  Stage  Company) 

N OTE TO C O NS OL IDA TE F INANCIA S T A TEME N T

(Unaudited)

December 31, 2013

 

1.       BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

The accompanying unaudited interim financial statements of Nuzee, Inc. have been prepared in accordance with accounting principles generally accepted in the United States of America and rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s annual report on Form 10-K for the initial period ended September 30, 2013 as filed with the SEC. In the opinion of management, all adjustments, consisting of normal 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 consolidated financial statements which would substantially duplicate the disclosure contained in the audited financial statements as reported in the annual report on Form 10-K have been omitted.

Going Concern

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, which contemplates continuation of the Company as a going concern. The Company has had recurring losses, large accumulated deficits, is dependent on the shareholder to provide additional funding for operating expenses and has no recurring revenues. These items raise substantial doubt about the Company’s ability to continue as a going concern.

Equity based payments

The Company accounts for equity instruments issued to employees in accordance with ASC 718 "Stock Compensation". Under this guidance, stock compensation expense is measured at the grant date, based on the fair value of the award, and is recognized as an expense over the estimated service period (generally the vesting period) on the straight-line attribute method.

2.      RELATED PARTY TRANSACTIONS

During the fiscal year ended September 30, 2013, the Company issued 1,247,583 shares to convert $149,710 due to its majority shareholder.  The Company also received $50,000 in exchange for a note, from its majority shareholder, which are due on January 9, 2016 and bear interest rate of 2% per annum. 

During the fiscal year ended September 30, 2013, the Company made a deposit of $139,661 towards the purchase of skin care products, for resale, from an entity controlled by the Company’s majority shareholder. Subsequent to this commitment, the Company decided to discontinue the sale of skin care products, and cancelled the purchase order.

During October 2013, the Company entered into a Compromise Agreement with the Company’s majority shareholder to settle the related party receivable. In consideration of the compromises contained in the agreement the Company’s majority shareholder agreed to forgive a note in the amount of $50,000, cancel 8,966,100 shares, and the Company forgave the related party receivable of $139,661.

F-4


 

3. INTELLECTUAL PROPERTY

On September 17, 2012 the Company issued 3,040,000 shares at the estimated fair market value of $.014085 per share in exchange for an assignment of certain intellectual property rights to one of the Company’s principal product offerings. These shares were valued at $42,818.

The Company in July 2013 did not receive the value represented to it in connection with the issuance of 3,040,000 of these shares, and as a result, revoked such issuance.

4. COMMON STOCK

During the fiscal year ended September 30, 2012, the Company entered into subscription agreements with accredited investors and sold 27,360,00 shares at $0.0001 and $0.14085 per share, for an aggregate purchase price of $304,589.

During the fiscal year ended September 30, 2013, the Company entered into subscription agreements with accredited investors and sold 7,150,207 shares at $0.12, $0.22 and $0.48 per share, for an aggregate purchase price of $2,102,430.

5.  REVERSE MERGER

During April, 2013 Havana Furnishings Inc. consummated a share exchange with Nuzee, Co., Ltd. in which Havana Furnishings Inc. issued 33,733,333 common shares in exchange for 100% of the outstanding shares of Nuzee, Co., Ltd. Also as part of this transaction, the Company changed its name from Havana Furnishings Inc. to Nuzee, Inc. Immediately prior to the closing, Havana Furnishings Inc. had 2,200,000 shares issued and outstanding.

For accounting purposes, this transaction is being accounted for as a reverse merger and has been treated as a recapitalization of Havana Furnishings Inc., with Nuzee, Co., Ltd. is considered the accounting acquirer, and the financial statements of the accounting acquirer became the financial statements of the registrant. The Company did not recognize goodwill or any intangible assets in connection with the transaction. The 33,733,333 shares issued to the shareholder of Nuzee, Co., Ltd. and its designees in conjunction with the share exchange transaction have been presented as outstanding for all periods. The historical consolidated financial statements include the operations of the accounting acquirer for all periods presented.

6.  STOCK OPTIONS

During October 2013 the Company granted 3,471,665 options to employee. The right to exercise these options shall vest and become 25% exercisable on the first anniversary of when granted, with the exception that 100% of options issued to one employee vested immediately. The remaining options shall vest and become exercisable ratably over the next 36 months, with the exception that options issued to 2 employees shall vest and become exercisable over 18 months and option issued to one employee shall vest and become exercisable as of the effective date of the Option Agreement. The exercise price is $0.48 per share and will expire ten years from the grant date, unless terminated earlier as provided by the Option Agreements.

The fair value of each option award was estimated on the date of grant using the Black-Scholes option valuation model using the assumptions noted as follows: expected volatility was based on historical trading in the company's stock. The expected term of options granted was determined using the simplified method under SAB 107 and represents one-half the exercise period. The risk-free rate is calculated using the U.S. Treasury yield curve, and is based on the expected term of the option. The Company has estimated there will be no forfeitures.

F-5


 
 

The Black-Scholes option pricing model was used with the following weighted average assumptions for options granted during the three months ended  December 31, 2013:

Risk-free interest rate 1% - 2%

Expected option life 5 – 6 years

Expected volatility 300%

Expected dividend yield 0.0 & 0.0%

At December 31, 2013, 1,657,778 options are exercisable and the Company recognized $1,053,755 of stock options expenses during the three months ended December 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

F-6


 
 

Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations.

 

The following plan of operation provides information which management believes is relevant to an assessment and understanding of our results of operations and financial condition.  The discussion should be read along with our financial statements and notes thereto.  This section includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance.  Forward-looking statements are often identified by words like believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events.  You should not place undue certainty on these forward- looking statements.  These forward-looking statements are subject to certain risk s and uncertainties that could cause actual results to differ materially from our predictions.

 

Plan of Operations

 

Short Term Goals (12 Months)

 

Over the next 12 months, the Company’s growth plans include continuing efforts to:

 

·          Build a targeted distribution network for our Coffee Blenders functional beverages by signing the retailers that serve the K-cup and Coffee replenishment channels;

 

·          Increase awareness for Coffee Blenders through communications and sampling programs;

 

·          Establish the Nuzee brands top 3 in their product categories consistent with our mission of providing natural products that work.

 

We have retained and plan to expend our sales and marketing team who can immediately contribute to our network of US and international channels as such seeding our product becomes a near term priority.  We have already started developing working relationships with key online and national distributors who serve the coffee and single-serve pod consumers.  We plan to accelerate our traction by using manufacturer representatives with food and beverage experience.

 

In order to build distribution the Company is first determining the total distribution launch cost among the potential channels as each has their own upfront and recurring cost structure.  Under investigation are the following company directed channels:
  

·          direct – coffeeblenders.com shopping via search and digital marketing e-commerce affiliates (such as Amazon)
  

·          select health and wellness retailers key mass/grocery retailers Club/Other

 

Each of the above is compared using a host of costing parameters not limited to the following: product slotting fees, overall margin requirements, market development fees, return allowances, broadcast advertising and promotional marketing plans, in-store and channel detailing, product sampling and customer demoing as well as transportation and logistics cost, cross dock fees, shelf-life expiration swaps, and initial and recurring inventory loading levels.

 

In conjunction with the above channel assessment, the Company is also exploring custom and private labeling whereby the company licenses the product formulation, trademarks, and other assets in two ways:

 

4


 
 

 

1.       Multi-Level Marketing (MLM) Firms – for example manufacturer on behalf of “Amway” for product extensions of their Great Value and Equate private brands.

 

2.       Product Brands – for example license to “Maxwell House” the Coffee Blender product as a new product line extension to expand their single-serve business.

 

The Company plans going forward include the following milestones:

 

Mile stone 

Timing

Est. Cost/Funding  Source 

1. Finalize Products  Pricing 

· New Product  Functions  and  Versions 

December –  February  (Phase  I) 

March-May (Phase  II) 

$25,000 (Phase  I) 

$20,000 (Phase  II)  Previous  Sale  of  Equities 

2. Staff  (retain  and  expand) 

February June 

$20,000-30,000/Mo. Recurring 

Previous Sale  of  Equities 

3. Launch Market and Promotion Plan

·       PR

·       Sampling

·          Advertising 

January –  Ongoing 

$500,000-$750,000 Annual 

 

Previous and  Future  Sale  of  Equities  Product  Contribution 

4. Explore  OEM/Private  Label  Opportunities 

March –  Ongoing 

n/a

 

If we are unable to receive funding our plans will be dramatically and negatively impacted such that we will prioritize go to market strategies based on reduced operations and available capital.

 

Long Term Goals (Five Years)

 

The Company believes that there will be significant expansion opportunities in existing markets through new products as well as in new regions outside of the United States in a combination of market development and product licensing.

 

The Company believes that our limited resources may pose a challenge to our expansion goals and therefore anticipates that it may require additional capital in future years to fund expansion. There can be no assurance that our expansion strategy will be accretive to our earnings within a reasonable period of time. However, the Company believes that it can improve its operational efficiencies and reduce the need for new capital by carefully managing the business based on the following economic fundamentals within accretive margin and cost contribution modeling.

 

Results of Operations

 

From inception on November 9, 2011 through December 31, 2013, we have accumulated losses of $2,785,775. We attribute this loss to the discontinued business operations related to the sale of skin care products, Torque energy drinks and New Zealand bottled water. 

 

5


 
 

We are presently in the development phase of our new product platform for functional beverages and we can provide no assurance that we will be able to attain profitability.

 

From inception through December 31, 2013, we earned revenues of $122,232 from sales of our products and incurred operating expenses in the amount of $2,664,114. These operating expenses included the research and the preparation of our business plan in addition to general and administrative expenses. We anticipate our operating expenses will increase as we further undertake our plan of operations. The increase will be attributed to costs associated with production, storage and delivery of our products as well as research and development of new products.

 

We expect sales in 2014 from our new products through a combination of direct to consumer through our website portal, product awareness as well as through affiliate online stores and retailers.

 

Liquidity and Capital Resources

 

As of December 31, 2013 we had cash (operating capital) of $686,946  and we have no long-term debt. We have not attained profitable operations since inception.   We expect to spend between $2 million - $4 million in expenses over the next 12 months.  Our current cash balance as of December 31, 2013 is not sufficient to fund our operations for the next twelve months.  Therefore, the Company intends to engage in additional financing through the sale of equity securities.

 

 

Item 3.  Quantitative and Qualitative Disclosures About Market Risk.

 

We are a smaller reporting company and therefore are not required to provide the information for this item for Form 10-Q.

 

Item 4.  Controls and Procedures

          

As of the end of the period covered by this Report, the Company’s President, and principal financial officer (the “Certifying Officer”), evaluated the effectiveness of the Company’s “disclosure controls and procedures,” as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934.  Based on that evaluation, the officer concluded that, as of the date of the evaluation, the Company’s disclosure controls and procedures were not effective to provide reasonable assurance that the information required to be disclosed in the Company’s periodic filings under the Securities Exchange Act of 1934 is accumulated and communicated to management to allow timely decisions regarding required disclosure.

  

The Certifying Officer has also indicated that there were no changes in internal controls over financial reporting during the Company’s last fiscal quarter, and no significant changes in our internal controls or other factors that could significantly affect such controls subsequent to the date of their evaluation and there were no corrective actions with regard to significant deficiencies and material weaknesses.

  

Our management, including the Certifying Officer, does not expect that our disclosure controls or our internal controls will prevent all errors and fraud.  A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met.  In addition, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs.  Because of the inherent limitations in all control systems, no evaluation

 

6


 
 

of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected.  These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake.  Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people or by management override of the control.  The design of any systems of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.  Because of these inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

 

 

PART II.

Item 1.  Legal Proceedings

 

None.

 

Item 1A.  Risk Factors

 

There have been no changes to our risk factors from those disclosed in our Form 10-K filed on January 14, 2014.

 

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

 

There were no unregistered Sales of Equity Securities during the quarter ending December 31, 2013.

 

 

Item 3.  Defaults Upon Senior Securities

 

None.

 

Item 4.   Mine Safety Disclosures

 

Not applicable.

 

Item 5.  Other Information

 

As disclosed in our From 10-K dated January 14, 2014, the Company completed a merger with its wholly owned subsidiary, Nuzee Co. Ltd. (the “Merger”) on December 19, 2013 whereby Nuzee Co., Ltd. (the “Subsidiary”) merged with and into the Company.  As a result of the merger, the Company assumed all of the assets and liabilities of the Subsidiary and the Subsidiary ceased to exist.  By virtue of the Merger, all shares of the subsidiary were cancelled.  The number of shares of the Company’s common stock issued and outstanding did not change.  True and correct copies of the Agreement and Plan of Merger between Nuzee, Inc. and NuZee Co., Ltd. dated November 29, 2013 and  the Articles of Exchange as filed with the Nevada Secretary of State on December 19, 2013 are filed concurrently herewith as Exhibits 2.1 and 3.1 respectively

 

On January 6, 2014, the Company’s Board of Directors approved to amend the Bylaws to change the date of the date of the annual meeting of shareholders from “the first week in January” to “within three months after the calendar year ends, commencing in 2014.”  The reason behind the amendment was to give the Company sufficient time to prepare and provide audited financial statements and the Company’s annual report to the shareholders.

 

7

 


 
 

 

Item 6.  Exhibits

 

EXHIBIT NO.

 

DESCRIPTION

2.1

 

Agreement and Plan of Merger between Nuzee, Inc. and NuZee Co., Ltd. dated November 29, 2013.

3.1

 

Articles of Exchange between Nuzee, Inc. and Nuzee Co., Ltd. as filed with the Nevada Secretary of State on December 19, 2013.

31.1

 

Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2

 

Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1

 

Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2

 

Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

                         

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8


 
 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

Date:

February 12, 2014

 

NUZEE, INC.

 

 

 

 

 

By:

/s/ Craig Hagopian

 

 

 

Craig Hagopian, President, Chief Executive Officer (Principal Executive Officer)

 

 

 

 

 

 

 

 

Date:

February 12, 2014

 

.

 

 

 

 

 

By:

/s/ Satoru Yukie

 

 

 

Satoru Yukie, Secretary, Treasurer, COO, Chief Financial Officer (Principal Financial Officer)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9


 

Exhibit 2.1

 

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2


 
 

AGREEMENT AND PLAN OF MERGER 1_PAGE_3.JPG

3


 
 

AGREEMENT AND PLAN OF MERGER 1_PAGE_4.JPG

 

 

4


 

Exhibit 3.1


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ARTICLES OF EXCHANGE - AS FILED_PAGE_2.JPG

2


 
 

ARTICLES OF EXCHANGE - AS FILED_PAGE_3.JPG

3


 
 

ARTICLES OF EXCHANGE - AS FILED_PAGE_4.JPG

4


 

Exhibit 31.1

  

  

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

  

I, Craig Hagopian, certify that:

  

1.      I have reviewed this report on Form 10-Q of NuZee, Inc.;

  

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

  

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

  

4.     I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

  

(a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

  

(c)    Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

  

(d)    Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting;

  

5.     I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

 


 
 

  

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

  

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

  

Date:

February 12, 2014

 

NUZEE, INC.

 

 

 

 

 

 

 

By:

/s/ Craig Hagopian

 

 

 

 

Craig Hagopian, President, Chief Executive Officer (Principal Executive Officer)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2


 

Exhibit 31.2

  

  

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

  

I, Craig Hagopian, certify that:

  

1.      I have reviewed this report on Form 10-Q of NuZee, Inc.;

  

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

  

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

  

4.     I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

  

(a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

  

(c)    Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

  

(d)    Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting;

  

5.     I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

 


 
 

  

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

  

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

  

Date:

February 12, 2014

 

NUZEE, INC.

 

 

 

 

 

 

 

By:

/s/ Satoru Yukie

 

 

 

 

Satoru Yukie, Chief Financial Officer (Principal Financial Officer)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2


 

Exhibit 32.1

WRITTEN STATEMENT

PURSUANT TO

18 U.S.C. SECTION 1350

  

In connection with the Quarterly Report of NuZee, Inc. and its subsidiaries (the “Company”) on Form 10-Q for the period ended December 31, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the Company’s Chief Executive Officer, Craig Hagopian, certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

  

(1)           The Report fully complies with the requirements of Section 13a-14(b) or 15d-14(b) of the Securities Exchange Act of 1934; and

  

(2)           The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Date:

February 12, 2014

 

NUZEE, INC.

 

 

 

 

 

 

 

By:

/s/ Craig Hagopian

 

 

 

 

Craig Hagopian, Chief Executive Officer (Principal Executive Officer)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

Exhibit 32.2

WRITTEN STATEMENT

PURSUANT TO

18 U.S.C. SECTION 1350

  

In connection with the Quarterly Report of NuZee, Inc. and its subsidiaries (the “Company”) on Form 10-Q for the period ended December 31, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the Company’s Chief Financial Officer, Satoru Yukie, certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

  

(1)           The Report fully complies with the requirements of Section 13a-14(b) or 15d-14(b) of the Securities Exchange Act of 1934; and

  

(2)           The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Date:

February 12, 2014

 

NUZEE, INC.

 

 

 

 

 

 

 

By:

/s/ Satoru Yukie

 

 

 

 

Satoru Yukie, Chief Financial Officer (Principal Financial Officer)