NuZee, Inc. Receives Nasdaq Notification of Non-Compliance with Listing Rule 5250(c)(1)

Rhea-AI Summary

NuZee, Inc. (NUZE) received a notice from Nasdaq for not timely filing its Quarterly Report on Form 10-Q for the quarter ended December 31, 2023. The company has 60 days to submit a compliance plan to Nasdaq and can get up to 180 days to regain compliance if the plan is accepted.

Positive

• None.

Negative

• NuZee, Inc. is currently not in compliance with Nasdaq Listing Rule 5250(c)(1) due to the delayed filing of its Quarterly Report on Form 10-Q, potentially impacting investor confidence and stock performance.

Financial Analyst

The notice of non-compliance received by NuZee, Inc. from Nasdaq due to the delayed filing of its quarterly report is a critical issue that warrants investor attention. The failure to meet the filing deadline under Rule 5250(c)(1) may hint at underlying financial or operational difficulties within the company, such as complexities in financial reporting, potential restatements, or internal control weaknesses. It is essential to monitor how quickly NuZee can address the filing issues and submit a compliance plan.

Investors should consider the implications of this delay on the company's credibility and the potential impact on stock performance. Historically, such notices can lead to increased volatility in the company's stock as the market reacts to the perceived risk of further negative developments. The ability of NuZee to regain compliance within the Nasdaq-imposed timeline will be crucial in maintaining investor confidence and the continued listing of its stock.

Legal Expert

From a legal perspective, NuZee's delay in filing the 10-Q form with the SEC raises concerns about compliance with federal securities laws. The Securities Exchange Act of 1934 mandates timely financial reporting to maintain transparency and protect investors. NuZee's need for additional time to complete its financial statements and notes and to have the report reviewed by accountants and attorneys, suggests that there may be complexities or discrepancies that require careful legal and financial scrutiny.

Investors should be aware of the potential legal ramifications that can arise from such non-compliance, including SEC investigations and penalties. The company's ability to articulate a convincing plan to regain compliance will be vital to avoid further legal and regulatory complications, which could have significant financial implications.

Market Research Analyst

From a market perspective, NuZee's situation must be contextualized within the broader coffee co-packing and technology industry. Delays in financial reporting might affect the company's competitive position, especially if the reasons behind the delay are related to operational inefficiencies. Competitors may capitalize on the perceived instability and customers may seek more reliable partnerships.

Moreover, the market will be observing NuZee's response to this challenge. A swift and transparent resolution could minimize damage to the company's reputation and might even be seen as a testament to the company's resilience and management capabilities. Conversely, prolonged uncertainty could erode market confidence, potentially affecting future sales, partnerships and growth opportunities.

VISTA, Calif., Feb. 29, 2024 /PRNewswire/ -- NuZee, Inc. (NASDAQ: NUZE) ("NuZee" or the "Company"), a leading coffee co-packing and technology company, today announced that on February 22, 2024, it received a notice from the Nasdaq Stock Market LLC ("Nasdaq") notifying NuZee that the Company is not in compliance with Nasdaq Listing Rule 5250(c)(1) ("Rule 5250(c)(1)") because the Company did not timely file its Quarterly Report on Form 10-Q for the quarter ended December 31, 2023 (the "Form 10-Q") with the Securities and Exchange Commission (the "SEC"). The Notice has no immediate effect on the listing of the Company's stock on Nasdaq, and it states that the Company is required to submit a plan to regain compliance with Rule 5250(c)(1) within 60 calendar days from the date of the Notice. If the plan is accepted by Nasdaq, then Nasdaq can grant the Company up to 180 calendar days from the due date of the Form 10-Q to regain compliance.

As reported by the Company in its Form 12b-25 filed with the SEC on February 14, 2024, the Company was unable to file its Form 10-Q within the prescribed time period without unreasonable effort or expense. The Company needs additional time to complete its financial statements, notes, as well as to have the report reviewed by its accountants and attorneys. The Company continues to work diligently to enable the filing of the Form 10-Q with the SEC as soon as reasonably practicable.

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.

Why did NuZee, Inc. receive a notice from Nasdaq?

NuZee, Inc. received a notice from Nasdaq because the company did not timely file its Quarterly Report on Form 10-Q for the quarter ended December 31, 2023.

What is the timeframe given to NuZee, Inc. to submit a compliance plan to Nasdaq?

NuZee, Inc. has 60 calendar days from the date of the Notice to submit a plan to regain compliance with Nasdaq Listing Rule 5250(c)(1).

How long can NuZee, Inc. have to regain compliance if its plan is accepted by Nasdaq?

If the plan submitted by NuZee, Inc. is accepted by Nasdaq, the company can have up to 180 calendar days from the due date of the Form 10-Q to regain compliance.