DEFERRED REVENUE |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DEFERRED REVENUE |
7. DEFERRED REVENUE
Deferred revenue is comprised of the following:
The Company accepts deposits in conjunction with agreements to sell real estate building lots at Algodon Wine Estates in the Mendoza wine region of Argentina. These lot sale deposits are generally denominated in U.S. dollars. Revenue is recorded when the sale closes, and the deeds are issued. The issuance of deeds is dependent on completion of infrastructure for each specific lot. See Footnote 2, Summary of Significant Accounting Policies: Going Concern and Management’s Liquidity Plans, for additional discussion of the impact of the Company’s liquidity on the real estate lot sales. The Company expects to recognize revenue in the aggregate amount of approximately $2.9 million upon the closing of the sale of lots for which deposits of been received as of September 30, 2024.
The Company entered into contracts for the sale of four lots and received deposits in the aggregate amount of $19,343 during the three and nine months ended September 30, 2024. The Company recorded revenue upon the closing of the sale of real estate lots in the amount of $0 and $104,143 during the three and nine months ended September 30, 2024, and recorded the sale of one lot and recorded revenue in the amount of $0 and $154,959 during the three and nine months ended September 30, 2023.
Deferred revenue, related party represents $250,000 received from a greater than 10% holder of the Company’s common stock, for the purchase of five real estate lots. The Company recorded interest expense of $5,291 and $15,814 during the three and nine months ended September 30, 2024, respectively, in connection with the deferred revenue received from the related party. As of September 30, 2024 and December 31, 2023, there is accrued interest of $19,485 and $3,605, respectively, related to the deferred revenue received from the related party.
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