Quarterly report pursuant to Section 13 or 15(d)

ACQUISITION OF HOLLYWOOD BURGER ARGENTINA, S.R.L.

v3.22.2.2
ACQUISITION OF HOLLYWOOD BURGER ARGENTINA, S.R.L.
9 Months Ended
Sep. 30, 2022
Business Combination and Asset Acquisition [Abstract]  
ACQUISITION OF HOLLYWOOD BURGER ARGENTINA, S.R.L.

3. ACQUISITION OF HOLLYWOOD BURGER ARGENTINA, S.R.L.

 

On February 3, 2022, the Company, through its subsidiaries, acquired 100% of Hollywood Burger Argentina S.R.L., now Gaucho Development S.R.L., (“GDS”) in exchange for issuing 106,952 shares of its common stock, valued at $2,194,653 at date of issuance, to Hollywood Burger Holdings, Inc, a company with whom GGH shares common management and ownership.

 

The acquisition was accounted for as an asset acquisition because substantially all of the fair value of the gross assets acquired was represented by a group of similar assets. The total purchase consideration of $2,204,908 (including $10,255 of legal fees incurred in connection with the acquisition) was allocated to the assets and liabilities acquired as follows:

 

         
Land   $ 1,528,134  
Building     635,302  
Cash     2,694  
Prepaid expenses     674  
Deferred tax credits     63,282  
Accounts payable     (313 )
Taxes payable     (8,154 )
Related party payables     (10,686 )
Lease deposit payable     (6,025 )
Total   $ 2,204,908