Indicateby 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 “large accelerated filer,” “accelerated “accelerated filer” and “smaller “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Indicatebycheckmarkwhethertheregistrantisa shell company(as (as definedinRule12b-2of theExchange Act).                                                                                                                                                    YesYes­­ ¨No x

APPLICABLEONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THEPRECEDING FIVE YEARS:

Indicateby 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 Actof1934subsequent tothe distribution of securities undera plan confirmed by acourt.  YesYes­­ ¨N  No o ¨

(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 May 9, 2015, NuZee, Inc. had 27,937,521shares of common stock outstanding.

(APPLICABLEONLY TO CORPORATE REGISTRANTS) 

Indicatethe number of shares outstanding of each of the registrant’s classes of common stock,as of the latest practicable date. As of February 5, 2015NuZee, Inc. had 27,443,718shares of common stock outstanding. 

Tableof Contents 

PART I. 

Item1.        Financial Statements. 

(a)Balance Sheets at Decemeber 31, 2014 (Unaudited) and September 30, 2014. 

(b)Statement of Operations for the threemonths ended December 31, 2014 and 2013 (Unaudited). 

(c)Statement of Cash Flows for the three months ended December 31, 2014 and 2013 (Unaudited). 

(d)Notes toFinancialStatements (Unaudited). 

Item2.       Management’s Discussion and Analysis of Financial Condition and Results of Operations. 
Item 3.      Quantitative and Qualitative Disclosures About Market Risk. 

Item4.       Controls and Procedures 

Item1.        Legal Proceedings Item 1A. Risk Factors 

PARTII. 

Item2.         UnregisteredSales of Equity Securities and Use of Proceeds 
Item 3.       Defaults Upon Senior Securities 

Item4.        Mine Safety Disclosures 

Item 5.        OtherInformation 

Item6.        Exhibits 

2

Table of Contents

FORWARD-LOOKINGPART I.

Item 1.       Financial Statements.

INFORMATION (a)

(b)Statement of Operations for thethree months ended March 31, 2014 and 2013, for the six months ended March 31, 2014 and 2013and for the cumulative period from inception (November 9, 2011) through March 31, 2014(Unaudited). 

(c)Statement of Cash Flows for thesix months endedMarch 31, 2014 and 2013 and for the cumulative period from inception (November 9, 2011) throughMarch 31, 2014(Unaudited). 

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

ThisQuarterly Report on Form 10-Q Item 2.       Management’s Discussion and Analysis 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 Financial Condition and its business. Any statement in this report that is not a statement Results of Operations.

historical fact is a forward-looking statement, andin some cases, words such as “believes,” “estimates,” “projects,” “expects,” “intends,” “may,” “anticipates,” “plans,” “seeks,” Item 3.       Quantitative and Qualitative Disclosures About Market Risk.

similar expressions identify forward-looking statements. Forward-looking statements involve risks Item 4.       Controls and Procedures

uncertainties PART II.

that Item 1.       Legal Proceedings

could Item 1A.    Risk Factors

cause actual outcomes Item 2.       Unregistered Sales of Equity Securities and results to differ materially fromthe anticipated outcomes or results. These statements are not guarantees Use of Proceeds

future Item 3.       Defaults Upon Senior Securities

performance, Item 4.       Mine Safety Disclosures

and Item 5.       Other Information

undue Item 6.       Exhibitsreliance should not be placed on these statements. It is important to note that our actual results could differ materially from whatis expressed in our forward-looking statements due to the risk factors described in the section of our Form 10-K filed on February 12,2015 entitled “Risk Factors.” 

3

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 10-K filed on January 14, 2014 entitled “Risk Factors.”

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

3

4

PARTI. 

Item1. Financial Statements. 

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

statements
F-1

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

F-2

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

statements
F-3

Nuzee,Inc. 

NOTESTO FINANCIAL STATEMENTS 

(Unaudited)

DecemberMarch  31, 20142015 

1.   BASIS OF PRESENTATION AND SUMMARYOF SIGNIFICANT ACCOUNTING POLICIES 

Theaccompanying 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, 2014 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 Form10-K have been omitted. 

In the quarter ended March 31, 2015, the Company has elected to early adopt Accounting Standards Update No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements. The adoption of this ASU allows the company to remove the inception to date information and all references to development stage.

GoingConcern 

Theaccompanying 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 agoing concern. The Companyhas had recurring losses, large accumulateddeficits, 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. 

Stockbased payments 

TheCompany 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 November 2014,February 2015, the Company paid $9,000 for consultation chargeissued a secured convertible promissory note in the sum of Lotus Cup$600, 000 to an entity, From East Holdings Co., Ltd., controlled byMasateru Higashida, the Company’s    major shareholdershareholder.  Interest calculated at the annual rate of zero percent (0%) for the period until April 2016. If the outstanding principle and all accrued and unpaid interest on the debt hereof (the “Debt”) is not repaid by the Company in full by the Repayment Date, the Debt or any portion thereof may be converted at the option of the Holder, upon written notice to the Company at any time after the Repayment Date, into that number of shares of the Company’s Common Stock equal to the Debt or that portion thereof that the Holder elects to convert, divided by price per share of $0.51. This note shall by cancelled on the date of conversion of the entirety of the Debt.

3.CONTINGENT LIABILITY

In January 22th, 2015, NuZee, Inc., a California Corporation (“Tenant”) signed a standard industrial lease with H.G. Fenton Property company, a California Corporation (“Landlord”). The address for the Premises is 2865 Scott Street, Suite 101-102, Vista, CA 92081. The commencement date is March 1st, 2015 and expiration date is April 30th, 2017. Monthly rent expense for this location is $3,793.00 and will increase up to $4,024.00 over the time.

4.     INTELLECTUAL PROPERTY

The Company has been granted licenses to use the trademarks CEREBOOST and SVETOL in Company materials and on product packaging. Pursuant to the Trademark License Agreements dated October 11, 2013, the agreement may be terminated by either party, without cause, upon 30 days written notice. Additionally, if the Company fails to purchase the annual minimum amount (500 kg) of product from the licensor for any 12 month period, the licensor may terminate the Company’s license upon 15 days written notice.

F-4

4.5.        COMMON STOCK  

           During November 2014, the Company resold 130,000 shares of treasury stock at $0.30 per share, for an aggregate purchase price of $39,000.

           During December 2014, the Company resold 450,000 shares of treasury stock at $0.30 per share, for an aggregate purchase price of $135,000.

           During December 2014, the Company sold 20,000 shares of common stock at $0.66 per share, for an aggregate purchase price of $13,200.

           During January 2015, the Company cancelled 1,160,000 shares of common stock.

           During January 2015, the Company resold 140,000 shares of treasury stock at $0.30 per share, for an aggregate purchase price of $42,000.

           During March 2015, the Company sold 20,000 shares of common stock at $0.70 per share, for an aggregate purchase price of $14,000.

5.6.   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.

During February 2015 the Company granted 45,000 options to employee. The right to exercise these options shall vest and become exercisable on the last day of business of December 31, 2015. The exercise price is $0.30 per share.

 During February 2015 the Company granted 100,000 options to consultants for services. The right to exercise these options shall vest and become exercisable following September 30, 2015. The exercise price is $0.30 per share.

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.     

During The Black-Scholes option pricing model was used with the following weighted average assumptions for options granted during the six months ended MarchOctober 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 shallvest 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. 31, 2015:

    Risk-free interest rate 1% - 2%

Thefair value of each     Expected option award was estimated on the date of grant using the Black-Scholes option valuation model using the assumptions noted as follows:expected life 5 – 6 years

    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 300%

    Expected dividend yield curve, and is basedon the expected term of the option. The Company has estimated there will be no forfeitures. 0.0%

TheBlack-Scholes option pricing model was used with the following weighted average assumptions for options granted during the three months ended December 31, 2014: 

Risk-freeinterest rate 1% - 2% Expected option life 5-6 yearsExpected volatility 300% 

Expecteddividend yield 0.0% 

During the threesix months endedDecember March 31, 2014, 2,978,1242015, 132,291 options are exercisable and the Company recognized $17,992$24,326 of stock options expenses. Unamortized option expense as of DecemberMarch 31, 20142015 for all options outstanding amounted to approximately $23,343.$32,332.

F-4

Item2.   Management’s Discussion and Analysis of Financial Condition and Results of Operations. 

Thefollowing plan of operation provides information which management believes is relevant to anassessment and understanding of our results of operations and financial condition.   The discussion should be readalong 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 sand uncertainties that could cause actual results to differ materially from our predictions. 

Planof Operations          

ShortTerm Goals (912 Months)  

            Over the next 96 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:

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.

TheCompany plans going forward include the following milestones: 

4

Ifwe 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. 

LongTerm Goals (Five Years) 

TheCompany believes that there willbe 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. 

TheCompany believes that our limited resources may pose a challenge to our expansion goals and therefore anticipates that it may require additional capital infuture years to fund expansion. There canbe no assurancethat our expansion strategy will be accretive to our earnings within a reasonable period of time. However, the Company believes that it canimprove 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. 

Resultsof Operations 

From inception on November 9, 2011 through DecemberMarch 31, 2014,2015, we have accumulated losses of 4,821,047.$5,227,673. This loss was attributed to $4,540, 688$4,540,688 of operating expenses.

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.

DuringFor the three months ending December 31, 2014,March 31th, 2015, we earned revenues of $41,016$15,586 from sales of our products and incurred operating expenses in the amount of $297,980.$416,349. These operating expenses include purchase of new machines for future productions as well as general administrative expenses.  

For the six months ending March 31th, 2015, we earned revenues of $723,329 from sales of our products and incurred operating expenses in the amount of $698,020. 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 2015 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.

Liquidityand Capital Resources 

AsofSeptember 30March 31th, 2014 wehad a cash balance of $282,492 and $238,160 and $139,203 at December 31,September 30th, 2014.  Total assets decreasedincreased by 23%37.9% from $396,713 at September 2014 to $304,426$547,126 at DecemberMarch 31, 2014.2015.

As of DecemberMarch 31, 20142015 we had current liabilities of $47,233$627, 590 and $51,564 at September 30, 2014.2014, mainly due to the $600,000 convertible promissory note. Accounts Payable decreased by approximately 1253 % to $38,381$20,548 as of December 31, 2014 from $43,384 at September 30, 2014. Other Current Liabilities increaseddecreased by approximately 8%13% to $8,852$7,132 as of December 31, 2014 from $8,180 at September 30, 2014 mainly due to legal fees accrual and deferred product costs.2014.

Our current ratio decreased from 705% in September 30, 2014 to 577%81% as of DecemberMarch 31, 2014.2015.

Our auditor has indicated that there is substantial doubt about our ability to continue as a going concern as a result of our lack of significant revenues, and if we are unable to generate significant revenue or secure financing, we may be required to cease or curtail our operations.  Our financial statements do not include adjustments that might result from the outcome of this uncertainty.

Ourcurrent cash balance as of December 31March 31th, 2014 2015is not sufficient to fund our operations for the next twelve months.   Therefore, the Company intends to engage in additional financing through the sale of equitysecurities. 

Item4.   Controls and Procedures 

Asof the end of the period covered by this Report,the Company’s President,and principal financial officer (the “Certifying Officer”), evaluatedthe 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. 

TheCertifying 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 affectsuch controls subsequent to the date of their evaluation and there were no corrective actions with regard to significant deficiencies and material weaknesses. 

Ourmanagement, 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,canprovide only reasonable,not absolute, assurance that the objectives of the control system are met.   Inaddition, the design of a control systemmust reflect the fact that there are resource constraints,and the benefits of controls must be Consideredrelative to their costs.   Because of the inherent limitations in all control systems,no evaluation of controls canprovide 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 canbe faulty, and that breakdowns can occur because of simple error or mistake.   Additionally, controls canbe 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 canbe no assurance that any design will succeedin achieving its stated goals under all potential future conditions.   Because of these inherent limitations in a cost-effective control system,misstatements Dueto error or fraud may occur and not be detected. 

PARTII. 

Item1.   Legal Proceedings None. 

Item1A.   Risk Factors 

PARTII.