Gaucho Group Holdings, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Debt Obligations

Debt Obligations

9 Months Ended

Sep. 30, 2016

9.	DEBT OBLIGATIONS

On January 1, 2016, principal and interest of $50,000 and $25,433, respectively, related to the 12.5% Notes were exchanged for 37,700 shares of the Company’s common stock at $2.00 per share, in connection with a one-time offer that was not pursuant to the original terms of the note. An additional $9,180 of accrued interest related to the 12.5% Notes was derecognized during the period.

For the three and nine months ended September 30, 2016, the Company repaid $25,000 and $50,000, respectively, of principal related to the 8% Notes.

The Company accrued interest expense of $8,294 and $24,457 during the three and nine months ended September 30, 2016 and $9,943 and $31,317 during the three and nine months ended September 30, 2015, respectively, in connection with its convertible notes.

The Company’s debt obligations consist of the following:

	September 30, 2016						December 31, 2015
	Principal		Interest [1]		Total		Principal		Interest [1]		Total

8% Convertible Notes	$	187,500	$	245,341	$	432,841	$	237,500	$	220,884	$	458,384
12.5% Convertible Notes		-		-		-		50,000		34,613		84,613
Total	$	187,500	$	245,341	$	432,841	$	287,500	$	255,497	$	542,997

^[1]Accrued interest is included as a component of accrued expenses on the condensed consolidated balance sheets.