RELATED PARTY TRANSACTIONS |
3 Months Ended |
|---|---|
Mar. 31, 2024 | |
| Related Party Transactions [Abstract] | |
| RELATED PARTY TRANSACTIONS |
12. RELATED PARTY TRANSACTIONS
Accounts Receivable – Related Parties
The Company had accounts receivable – related parties of $0 as of March 31, 2024 and December 31, 2023 net of allowances for expected credit losses of $1,645,554 and $1,517,836, respectively, representing the net realizable value of advances made to, and expense sharing obligations receivable from, separate entities under common management.
The Company recorded an allowance of $111,582 for related party credit losses upon the adoption of ASU 2016-13 on January 1, 2023. The Company recorded additional credit losses related to accounts receivable, related parties of $127,718 and $19,431 during the three months ended March 31, 2024 and 2023, respectively, which is reflected within general and administrative expenses on the accompanying condensed consolidated statements of operations.
Expense Sharing
On April 1, 2010, the Company entered into an agreement with a Related Party to share expenses such as office space, support staff, professional services, and other operating expenses (the “Related Party ESA”). During the three months ended March 31, 2024 and 2023, the Company made advances in the amount of $105,540 and $85,644, respectively, to the related entities, and paid expenses on behalf of the related entities (pursuant to the expense sharing agreements discussed below) in the amount of $107,172 and $175,426, respectively. The Company received repayments from the related parties in the amount of $84,993 and $130,000 during the three months ended March 31, 2024 and 2023, respectively.
Management Fee Income
During the three months ended March 31, 2024 and 2023, the Company recorded income of $0 and $75,000 respectively, representing management fees received from LVH pursuant to a June 2021 agreement with LVH.
GAUCHO GROUP HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
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