NuZee, Inc. Announces Receipt of NASDAQ Notification

Rhea-AI Summary

NuZee, Inc. (NUZE) received a notice from Nasdaq stating that its stockholders' equity did not meet the listing requirement, with stockholders' equity reported at $1,674,357, below the required $2,500,000. The company has 45 days to submit a plan to regain compliance and may be granted up to 180 days to evidence compliance. NuZee intends to submit a compliance plan and regain compliance within the applicable period.

Positive

• None.

Negative

• Stockholders' equity reported at $1,674,357, below the required $2,500,000.

Insights

Financial Analyst

The notification received by NuZee, Inc. from Nasdaq regarding its stockholders' equity shortfall is a significant financial concern. Stockholders' equity represents the net value of the company, essentially what shareholders would theoretically receive if all assets were liquidated and debts paid off. Falling below the Nasdaq minimum requirement of $2,500,000 signals potential financial instability or underperformance.

Investors should be aware that such a notice can often lead to increased market scrutiny and potential volatility in the company's stock price. The short-term implications could include a lack of investor confidence, leading to a possible decline in share value. However, if NuZee successfully submits a compliance plan and restores its equity level, it may regain stability and investor trust over the long term.

It is also important to consider the company's strategic options for regaining compliance, such as raising capital through equity financing or improving operational efficiency. Each of these avenues carries its own risks and benefits that could affect the company's future performance.

Market Research Analyst

From a market perspective, NuZee's situation is indicative of the challenges faced by companies in the coffee co-packing and technology sector, which is characterized by high competition and fluctuating commodity prices. The company's ability to regain compliance will likely depend on its operational effectiveness and market positioning.

Understanding the broader market dynamics is crucial. For example, if the coffee market is experiencing an uptrend in demand or if there are favorable shifts in consumer preferences towards products offered by NuZee, these factors could positively influence the company's efforts to increase its stockholders' equity.

Conversely, if the market is facing a downturn or if NuZee's product offerings are not aligned with consumer trends, the company may struggle to improve its financial position. This could affect its ability to invest in growth opportunities or innovation, potentially impacting its long-term market share and profitability.

VISTA, Calif., Jan. 26, 2024 /PRNewswire/ -- NuZee, Inc. (NASDAQ: NUZE), a leading coffee co-packing and technology company, today announced that it has received a notice (the "Notice") from the Listing Qualifications staff of The Nasdaq Stock Market ("Nasdaq") notifying the Company that the Company's stockholders' equity as reported in its Annual Report on Form 10-K for the period ended September 30, 2023 ("Form 10-K"), did not satisfy the continued listing requirement under Nasdaq Listing Rule 5550(b)(1) for the Nasdaq Capital Market, which requires that a listed company's stockholders' equity be at least $2,500,000. In its Form 10-K, the Company reported stockholders' equity of $1,674,357, and, as a result, does not currently satisfy Nasdaq Marketplace Rule 5550(b)(1).

The Notice has no immediate effect on the Company's listing on the Nasdaq Capital Market. In accordance with Nasdaq rules, the Company has 45 calendar days from the date of the notification to submit a plan to regain compliance with Nasdaq Listing Rule 5550(b)(1). The Company intends to submit a compliance plan within 45 days of the date of the notification and will evaluate available options to resolve the deficiency and regain compliance. If the Company's compliance plan is accepted, the Company may be granted up to 180 calendar days from January 23, 2024 to evidence compliance.

The company intends to regain compliance within the applicable compliance period and is preparing a compliance plan to submit to Nasdaq.

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 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.

FAQ

What notice did NuZee, Inc. receive from Nasdaq?

NuZee, Inc. received a notice from Nasdaq stating that its stockholders' equity did not meet the listing requirement.

What is the stockholders' equity reported by NuZee, Inc.?

The stockholders' equity reported by NuZee, Inc. is $1,674,357, below the required $2,500,000.

How long does NuZee have to submit a plan to regain compliance?

NuZee has 45 days to submit a plan to regain compliance.

How long may NuZee be granted to evidence compliance if its compliance plan is accepted?

If the compliance plan is accepted, NuZee may be granted up to 180 days to evidence compliance.