Temporary Equity and Stockholders' Deficiency
|6 Months Ended|
Jun. 30, 2020
|Temporary Equity and Stockholders' Deficiency||
12. TEMPORARY EQUITY AND STOCKHOLDERS’ DEFICIENCY
Series B Preferred Stock
On March 29, 2020, the Company’s Board of Directors as well as the holders of the Series B Convertible Preferred Stock approved an Amendment to the Certificate of Designation of the Series B Convertible Preferred Stock (the “Third Amendment”) which extends the period in which holders of the Series B Shares may voluntarily elect to convert such shares into shares of common stock of the Company to December 31, 2020. In addition, the Series B Amendment extends the date upon which the Company shall redeem all then-outstanding Series B Shares and all unpaid accrued and accumulated dividends to December 31, 2020.
On February 18, 2020, GGH repurchased 1,600 shares of the Series B Preferred Stock from a shareholder at $10 per share and paid accrued dividends of $2,451.
The Series B stockholders are entitled to cumulative cash dividends at an annual rate of 8% of the Series B liquidation value (equal to face value of $10 per share), as defined, payable when, as and if declared by the Board of Directors. Dividends earned by the Series B stockholders were $182,360 and $361,987 for the three and six months ended June 30, 2020, respectively, and were $179,770 and $357,565 for the three and six months ended June 30, 2019, respectively. Dividends payable of $82,772 are included in the current portion of other liabilities at June 30, 2020. Cumulative unpaid and undeclared dividends in arrears related to the Series B totaled $1,626,348 and $1,264,361 as of June 30, 2020 and December 31, 2019, respectively.
Accumulated Other Comprehensive Income
For three and six months ended June 30, 2020, the Company recorded $290,472 and $418,523, respectively, of foreign currency translation adjustments as accumulated other comprehensive income, and for the three and six months ended June 30, 2019, the Company recorded benefits of $357,078 and $365,417, respectively, primarily related to fluctuations in the Argentine peso to United States dollar exchange rates (see Note 3 – Summary of Significant Accounting Policies, Highly Inflationary Status in Argentina).
A summary of warrants activity during the six months ended June 30, 2020 is presented below:
A summary of outstanding and exercisable warrants as of June 30, 2020 is presented below:
During the three and six months ended June 30, 2020, the Company recorded stock-based compensation expense of $102,675 and $206,256, respectively, and during the three and six months ended June 30, 2019, the Company recorded stock-based compensation expense of $68,508 and $226,502, respectively related to the amortization of stock option grants, and which is reflected in general and administrative expenses in the accompanying condensed consolidated statements of operations. As of June 30, 2020, there was $861,664 of unrecognized stock-based compensation expense related to stock option grants that will be amortized over a weighted average period of 2.27 years.
A summary of GGH stock options activity during the six months ended June 30, 2020 is presented below:
The following table presents information related to GGH stock options at June 30, 2020:
Gaucho Group, Inc. Stock Options
As of June 30, 2020, options to purchase 6,570,000 shares of GGI common stock are outstanding under the 2018 Gaucho Plan.
The entire disclosure for shareholders' equity and share-based payment arrangement. Includes, but is not limited to, disclosure of policy and terms of share-based payment arrangement, deferred compensation arrangement, and employee stock purchase plan (ESPP).
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef