Gaucho Group Holdings, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Plant and Equipment, Useful Life

These assets are depreciated using the straight-line method over their estimated useful lives as follows:

Buildings		10 - 30 years
Furniture and fixtures		3 - 10 years
Vineyards		7 - 20 years
Machinery and equipment		3 - 20 years
Leasehold improvements		3 - 5 years
Computer hardware and software		3 - 5 years

Schedule of Long-lived Assets by Geographic Areas

The following summarizes key financial metrics associated with the Company’s continuing operations (these financial metrics are immaterial for the Company’s operations in the United Kingdom):

	As of
	December 31,
	2017		2016
Assets - Argentina	$	6,781,285	$	5,456,317
Assets - U.S.		1,563,521		1,285,338
Assets of continuing operations	$	8,344,806	$	6,741,655

Liabilities - Argentina	$	3,743,164	$	2,883,656
Liabilities - U.S.		595,138		1,595,588
Liabilities of continuing operations	$	4,338,302	$	4,479,244

Schedule of Revenue from External Customers by Geographic Areas

	For the Years Ended
	December 31,
	2017			2016
Revenues - Argentina	$	1,665,568		$	1,478,946
Revenues - U.S.		151,734			47,129
Revenues from continuing operations	$	1,817,302		$	1,526,075

Net loss - Argentina	$	(2,212,286	)	$	1,693,684
Net loss - U.S.		(5,594,475	)		6,106,179
Net loss from continuing operations	$	(7,806,761	)	$	7,799,863

Schedule of Revenue Recognized Multiple-Deliverable Arrangements

The Company operates within a single operating segment, because all of its operations are in support of the Company’s branding strategy and its associated real estate development initiatives. However, the Company does track revenues from continuing operations associated with its different products and services, as follows:

	For the Years Ended
	December 31,
	2017		2016
Hotel rooms and events	$	850,645	$	846,245
Restaurants		314,822		317,258
Winemaking		471,374		246,918
Agriculture		78,795		25,647
Golf, tennis and other		101,665		90,007
Total revenues	$	1,817,302	$	1,526,075

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following securities are excluded from the calculation of weighted average dilutive common shares because their inclusion would have been anti-dilutive:

	For the Years Ended
	December 31,
	2017		2016
Options		9,234,265		8,024,265
Warrants		1,465,296		1,901,480
Series B convertible preferred stock		9,026,700		-
Total potentially dilutive shares ⁽¹⁾		19,726,261		9,925,745

⁽¹⁾In addition, $20,000 of convertible debt is convertible into common stock at a 10% discount to the price used for the sale of the of the Company’s common stock in a future private placement offering.