NuZee, Inc. Reports Full-Year Fiscal 2023 Financial Results

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.

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.