LOANS PAYABLE |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans Payable | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LOANS PAYABLE |
9. LOANS PAYABLE
The Company’s loans payable are summarized below:
EIDL Loan
On May 22, 2020, the Company received a loan in the principal amount of $94,000 (the “EIDL Loan”) pursuant to the Economic Injury Disaster Loan (“EIDL”) assistance program offered by the SBA in response to the impact of the COVID-19 pandemic on the Company’s business, which bears interest at 3.75% per annum. As of June 30, 2024, the balance on the EIDL Loan is $89,613. The Company is currently in default on the EIDL Loan, and the loan is payable upon demand.
2023 Loan
On January 9, 2023, the Company received $185,000 in proceeds on the issuance of a one-year, non-convertible promissory note with a January 9, 2024 maturity date. The note bears interest at a rate of 8% per annum. On February 22, 2024, the Company repaid principal and interest on the 2023 Loan in the amount of $83,540 and $16,460, respectively. The lender has agreed to receive repayment of the remaining balance in August 2024.
Loans Payable, related party
On June 24, 2024, the Company issued 120-day promissory notes (“Investor Loans”) in the aggregate amount of $420,000 to a greater than 10% holder of the Company’s common stock, of which an Investor Loan in the amount of $300,000 was issued for cash and an Investor Loan in the amount of $120,000 was issued in satisfaction of a deposit for the purchase of equity, in lieu of issuance of shares. The Investor Loans bear interest at 8.5% per annum.
Interest Expense on Loans Payable
The Company incurred interest expense related to the loans payable in the amount of $7,627 and $9,525 during the three and six months ended June 30, 2024, respectively, and incurred interest expense related to the loans payable in the amount of $33,248 and $36,514 during the three and six months ended June 30, 2023, respectively. As of June 30, 2024 and December 31, 2023, there is accrued interest of $33,967 and $26,129, respectively, related to the Company’s loans payable.
GAUCHO GROUP HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||