Annual report pursuant to Section 13 and 15(d)

DEBT OBLIGATIONS

v3.22.1
DEBT OBLIGATIONS
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
DEBT OBLIGATIONS

10. DEBT OBLIGATIONS

 

The Company’s debt obligations as of December 31, 2021 and 2020 are summarized below:

 

    December 31, 2021     December 31, 2020  
    Principal     Interest [1]     Total     Principal     Interest [1]     Total  
                                     
2010 Debt Obligations   $ -     $ 13,416     $ 13,416     $ -     $ 330,528     $ 330,528  
2017 Notes     7,000       4,547       11,547       1,170,354       261,085       1,431,439  
Gaucho Notes     -       -       -       100,000       13,270       113,270  
Total Debt Obligations   $ 7,000     $ 17,963     $ 24,963     $ 1,270,354     $ 604,883     $ 1,875,237  

 

[1] Accrued interest is included as a component of accrued expenses on the accompanying consolidated balance sheets (see Note 7 – Accrued Expenses).

 

2010 Debt Obligations

 

During an offering that ended on September 30, 2010, IPG issued convertible notes with an interest rate of 8% and an amended maturity date of March 31, 2011 (the “2010 Debt Obligations”). During 2017, the Company repaid the remaining principal balance of $162,500, such that as of December 31, 2017, there is no principal balance owed on the 2010 Debt Obligations. Accrued interest of $13,416 and $330,528 owed on the 2010 Debt Obligations remained outstanding as of December 31, 2021 and 2020, respectively. The Company incurred interest expense of $0 and $25,234 during the years ended December 31, 2021 and 2020, respectively, on the 2010 Debt Obligations. Accrued interest on the 2010 Debt Obligations is not convertible.

 

 

GAUCHO GROUP HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

2017 Notes

 

During 2017 and 2018, the Company sold convertible promissory notes in the aggregate principal amount of $2,046,730 (the “2017 Notes”). The 2017 Notes, matured 90 days from the date of issuance, bore interest at 8% per annum and were convertible into the Company’s common stock at $0.63 per share. On January 8, 2021, $1,163,354 in principal and $258,714 in interest owed in connection with the 2017 Notes were exchanged for 237,012 Units. Each Unit consists of one share of common stock and a one-year warrant exercisable at a price equal to the purchase of the Unit (“Unit”). The remaining principal balance of $7,000 outstanding on the 2017 Notes at December 31, 2021 is no longer convertible, since the notes are past their maturity date. The Company incurred total interest expense of $0 and $93,744 related to this debt during the years ended December 31, 2021 and 2020, respectively.

 

Gaucho Notes

 

During 2018 and 2019, the Company’s subsidiary, Gaucho Group, Inc., sold convertible promissory notes in the aggregate principal amount of $2,266,800 to accredited investors (the “Gaucho Notes”). The Gaucho Notes, as amended, bore interest at 7% per annum and matured on March 31, 2019. The Gaucho Notes and related accrued interest were convertible into GGI common stock at the option of the holder, at a price representing a 20% discount to the share price in a future offering of GGI common stock. During 2019, the Company repaid $65,500 and $3,256 of principal and interest due, respectively, issued 9,659 shares of its common stock in satisfaction for a note in the principal and accrued interest amount of $50,000 and $709, respectively, and issued 5,226,520 shares of GGI common stock (representing a 21% non-controlling interest in GGI) upon the conversion of $2,051,300 and $55,308 of principal and interest, respectively. During the year ended December 31, 2021, the Company repaid the remaining principal and interest outstanding under the Gaucho Notes of $100,000 and $14,993, respectively, such that no amounts remain outstanding under the Gaucho Notes as of December 31, 2021. The Company incurred interest expense of $1,724 and $7,010 related to the Gaucho Notes during the years ended December 31, 2021 and 2020, respectively.