Quarterly report pursuant to Section 13 or 15(d)

STOCKHOLDERS??? EQUITY

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STOCKHOLDERS’ EQUITY
 6 Months Ended
Jun. 30, 2023
Equity [Abstract]  
STOCKHOLDERS’ EQUITY

14. STOCKHOLDERS’ EQUITY

 

Common Stock

 

On February 2, 2023, the Company issued 51,305 shares of common stock upon the cashless exercise of 134,730 warrants at exercise prices ranging from $2.40 and $3.82.

 

On February 10, 2023, the Company sold 591,000 shares of common stock and warrants to purchase 147,750 shares at an exercise price of $1.00 for aggregate proceeds of $591,000. The warrants are immediately exercisable and expire two years from the date of issuance.

 

During the six months ended June 30, 2023, the Company sold an aggregate of 823,198 shares of the Company’s common stock for gross proceeds of $797,623 less placement agent fees of $64,617 pursuant to a Common Stock Purchase Agreement (the “New ELOC”).

 

See Note 10 – Convertible Debt Obligations for additional details regarding common shares issued during the three and six months ended June 30, 2023.

 

Accumulated Other Comprehensive Loss

 

For the three and six months ended June 30, 2023, the Company recorded a loss of $37,993 and $77,792, respectively, and for the three and six months ended June 30, 2022, the Company recorded a gain of $358,056 and $621,462, respectively, related to foreign currency translation adjustments as accumulated other comprehensive income, primarily related to fluctuations in the Argentine peso to United States dollar exchange rates (see Note 2 – Summary of Significant Accounting Policies, Highly Inflationary Status in Argentina).

 

 

GAUCHO GROUP HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

Warrants

 

A summary of warrant activity during the six months ended June 30, 2023 is presented below:

 

      Number of Warrants     Weighted Average Exercise Price     Weighted Average Remaining Life in Years    

Intrinsic

Value

  
                           
Outstanding, January 1, 2023       1,299,135     $ 5.77                           
Issued       3,674,849       1.31                  
Exercised       (134,730 )     3.36                  
Expired       -       -                  
Canceled       -       -                  
Outstanding, June 30, 2023       4,839,254     $ 2.15       2.1     $ -  
                                   
Exercisable, June 30, 2023       4,839,254     $ 2.15       2.1     $ -  

 

 

See Common Stock, above, and Note 10 – Convertible Debt Obligations for additional details regarding warrants issued during the six months ended June 30, 2023.

 

A summary of outstanding and exercisable warrants as of June 30, 2023 is presented below:

 

Warrants Outstanding     Warrants Exercisable  
Exercise Price     Exercisable Into   Outstanding Number of Warrants    

Weighted

Average

Remaining

Life in Years

    

Exercisable

Number of

Warrants

  
                                 
$ 1.00     Common Stock     404,064       1.6       404,064  
$ 1.34     Common Stock     3,377,099       2.7       3,377,099  
$ 3.82     Common Stock     454,588       0.2       454,588  
$ 6.00     Common Stock     602,225       0.5       602,225  
$ 90.00     Common Stock     1,278       2.6       1,278  
        Total     4,839,254       2.1       4,839,254  

 

 

GAUCHO GROUP HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

Restricted Stock Units

 

A summary of RSU activity during the six months ended June 30, 2023 is presented below:

 

            Weighted Average  
      Number of     Grant Date Value  
      RSUs     Per Share  
RSUs non-vested January 1, 2023       511,500     $ 1.16  
Granted       10,000       1.31  
Vested       (3,890 )     1.31  
Forfeited       (1,333 )     1.16  
RSUs non-vested June 30, 2023       516,277     $ 1.16  

 

On January 23, 2023, the Company granted 10,000 restricted stock units (“RSUs”) to certain employees and advisors for their service, of which 3,890 RSUs vested on the grant date and 3,055 RSUs will vest on each of the next two anniversaries of the date of the grant.

 

During the three and six months ended June 30, 2023, the Company recorded stock-based compensation expense of $74,978 and $154,400 respectively, related to the amortization of RSUs. No expense related to the amortization of RSUs was recorded for the three or six months ended June 30, 2022.

 

Stock Options

 

No stock options were granted during the six months ended June 30, 2023 or the six months ended June 30, 2022. The following table presents information related to GGH stock options outstanding as of June 30, 2023:

 

          Weighted     Weighted        
          Average     Average        
    Number of     Exercise     Remaining     Intrinsic  
    Options     Price     Term (Years)     Value  
                         
Outstanding, January 1, 2023     40,612       85.35                       
Granted     -       -                  
Exercised     -       -                  
Expired     (5,806 )     138.60                  
Forfeited     -       -                  
Outstanding, June 30, 2023     34,806     $ 76.47       1.1     $ -  
                                 
Exercisable, June 30, 2023     29,698     $ 75.78       1.0     $ -  

 

 

GAUCHO GROUP HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

 

During the three and six months ended June 30, 2023, the Company recorded stock-based compensation expense of $38,834 and $77,668, respectively, and during the three and six months ended June 30, 2022, the Company recorded stock-based compensation expense of $57,403 and $130,103, respectively, related to the amortization of options for the purchase of GGH common stock.

 

The Company recorded no stock-based compensation expense related to options for the purchase of GGI common stock for the three and six months ended June 30, 2023 as all of the GGI options were exchanged and cancelled as of June 22, 2022. For the three and six months ended June 30, 2022, the Company recorded stock-based compensation expense of $29,731 and $40,085, respectively, related to the options for the purchase of GGI common stock.

 

Stock-based compensation expense is reflected in general and administrative expenses (classified in the same manner as the grantees’ wage compensation) in the accompanying condensed consolidated statements of operations. As of June 30, 2023, there was $91,921 of unrecognized stock-based compensation expense related to stock option grants that will be amortized over a weighted average period of 1.1 years.