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7. RELATED PARTY TRANSACTIONS | 12 Months Ended
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Sep. 30, 2018
Notes |
7. RELATED PARTY TRANSACTIONS | During March 2016, the Company borrowed the sum of $100,000 unsecured short-term loan from NuZee Co., Ltd to be repaid on or before March 31, 2017 at an interest rate of one percent (1%). The Company accrued interest of $230 for the years ended September 30, 2017. The Company had a balance of $45,000 at September 30, 2016 and paid back $45,000 of this short-term loan during the year ended September 30, During the year ended September 30, 2018, the Company borrowed the sum of $154,000 unsecured short-term loan from NuZee Co., Ltd to be repaid on or before October 31, 2018 at an interest rate of one percent (1%) and the sum of $185,000 unsecured short-term loan to be repaid on or before January 31, 2019 at an interest rate of one percent (1%). The Company fully paid these loans as of September 30, 2018. All convertible promissory note payable and short-term loans are related party transactions since Masateru Higashida is the Company's major shareholder and he holds 100% ownership of NuZee Co., Ltd. Travis Gorney is an officer of the Company and Takayuki Nagashima is the co-owner of the equity method affiliate. Katsuyoshi Eguchi is a director and the minority owner of NuZee JP. EHCL and ESCL are controlled by Katsuyoshi Eguchi. Masateru Higashida, NuZee Co., Ltd, Travis Gorney, Takyuki Nagashima, EHCL, ESCL and Katsuyoshi Eguchi are related parties of the Company. Sales, Purchases and Operating Expenses For the years ended September 30, 2018 and 2017, NuZee JP sold their products to EHCL, and the sales to them totaled approximately $3,420 and $49,703, respectively. The corresponding accounts receivable balance from EHCL was $222 and $6,100 as of September 30, 2018 and 2017 respectively. For the years ended September 30, 2018 and 2017, sales made by NuZee JP to NuZee Co., Ltd., totaled $0 and $488,670, respectively. The corresponding accounts receivable balance was $0 and $6,280 as of September 30, 2018 and 2017, respectively. For the years ended September 30, 2018 and 2017, sales made by NuZee JP to ESCL amounted to $0 and $932, respectively. The corresponding accounts receivable balance was both $0 as of September 30, 2018 and 2017. NuZee JP purchased goods from EHCL totaling to $0 and $15,535 as of September 30, 2018 and September 30, 2017 respectively. The corresponding accounts payable balance to them was $0 and $1,089 as of September 30, 2018 and 2017 respectively. EHCL leased an employee to NuZee JP with no fee during year ended September 30, 2018. NuZee JP had a professional expense of $39,544 to EHCL for the audit related fee paid by them on behalf of the Company. The Company fully paid off the liability as of September 30, 2017. NuZee JP leased an employee to NuZee Co., Ltd. for Contlus during October 2016 to January 2017 for $10,936 and sold greeting cards to NuZee Co., Ltd. for $7,418 during the year ended September 30, 2017. The related receivables outstanding was $437 and $14,020 as of September 30, 2018 and September 30, 2017 respectively. NuZee JP leased an employee to Contlus. During the years ended September 30, 2017 and 2018, NuZee JP billed $24,973 and $18,612 for this arrangement, respectively, and $15,361 remains outstanding as of September 30, 2017. Contlus is the Company’s related party as the Company holds 50% of their issued shares. Contlus has payable balance of $33,450 as of September 30, 2018. During the year ended September 30, 2018, Contlus ceased all operations. NuZee JP transferred outstanding receivable of $33,450 to NuZee INV during the year ended September 30, 2018. Rent During October 2016, NuZee JP entered into a rental agreement of an office space with NuZee Co., Ltd. The Company agrees to pay $1,169 per month for the office on the last day of each month. There is no set expiration date on the agreement. The company recognized rent expense of $13,999 during the year ended September 30, 2018 from this lease and had an outstanding payable to NuZee Co., Ltd of $1,446 as of September 30, 2018. During September 2016, the Company entered into a rental agreement of an office space and warehouse with EHCL. The Company agrees to pay $1,213 per month for the office and the warehouse on the last day of each month. There is no set expiration date on the agreement. EHCL charged total rent of $7,478 for the year ended September 30, 2018. NuZee JP has an outstanding payable to EHCL of $1,336 as of September 30, 2018. During February 2015, the Company entered into a rental agreement of a warehouse with ESCL. The Company agrees to pay $449 per month for the warehouse on the last day of each month. There is no set expiration date on the agreement.

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- Definition The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -URI http://asc.fasb.org/topic&trid=2122745 + Details
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