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

Quarterly report pursuant to Section 13 or 15(d)

LEASES

LEASES

9 Months Ended

Sep. 30, 2021

11. LEASES

On April 8, 2021, GGI entered into a lease agreement to lease a retail space in Miami, Florida for 7 years, which expires May 1, 2028. As of September 30, 2021, the lease had a remaining term of approximately 6.58 years. Over the duration of the lease, payments will escalate 3% every year. The Company was required to pay a $56,130 security deposit.

As of September 30, 2021, the Company had no leases that were classified as a financing lease. As of September 30, 2021, the Company did not have additional operating and financing leases that have not yet commenced.

Total operating lease expenses were $82,965 and $138,276, for the three and nine months ended September 30, 2021, respectively, and were $0 and $154,177, for the three and nine months ended September 30, 2020, respectively. Lease expenses are recorded in general and administrative expenses on the unaudited condensed consolidated statements of operations.

GAUCHO GROUP HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Supplemental cash flows information related to leases was as follows:

	For the Nine Months Ended
	September 30,
	2021			2020

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	139,874		$	78,827

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	1,843,043		$	-

Weighted Average Remaining Lease Term:
Operating leases		6.58 years			0.00 years

Weighted Average Discount Rate:
Operating leases		7.0	%		8.0	%