13. LOANS PAYABLE

The Company’s loans payable are summarized below:

 SCHEDULE OF LOANS PAYABLE

GAUCHO GROUP HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Future minimum principal payments under the loans payable are as follows:

 SCHEDULE OF FUTURE MINIMUM PRINCIPAL PAYMENTS OF LOANS PAYABLE

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. The Company repaid principal on the 2023 Loan in the amount of $100,000 on February 22, 2024, and the lender has agreed to receive repayment of the remaining balance in August 2024.

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. The EIDL Loan bears interest at 3.75% per annum. Proceeds from the EIDL are being used for working capital purposes. The EIDL Loan is secured by a security interest in all of the Company’s assets.

On July 20, 2022, the federal government notified the Company that installment payments on the remainder of the balance of the EIDL Loan would be required starting 30 months from the date of the loan, which is October 19, 2022. The EIDL loan matures on May 22, 2050. On October 3, 2022 the Company made a payment of $459 on the EIDL loan. No additional payments have been made. The Company is currently in default on the EIDL Loan, and the loan is payable upon demand.

2018 Loan

On January 25, 2018 the Company received a bank loan in the amount of $525,000 (the “2018 Loan”), denominated in U.S. dollars. The 2018 Loan bears interest at 6.75% per annum and was due on January 25, 2023. The Central Bank of Argentina issued a rule instructing the deferral of loan payments for any loan outstanding in April of 2020 due to COVID. The deferral extended the maturity date to October 2023. Pursuant to the terms of the 2018 Loan, principal and interest is to be paid in 60 equal monthly installments of $10,311, beginning on February 23, 2018. During the year ended December 31, 2023, the Company paid $111,137 on the 2018 Loan. As of December 31, 2023, the 2018 Loan has been paid in full.

GAUCHO GROUP HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

2022 Loan

On December 23, 2022, the Company received a bank loan in the amount of $51,643 (the “2022 Loan”), denominated in 9,000,000 Argentine pesos. The loan is payable in twelve installments of principal and interest at a rate of 7.00% of outstanding principal per month. The first payment was due on January 23, 2023 and the last payment is due on December 25, 2023. During the year ended December 31, 2023, the Company paid $9,226 on the 2022 Loan. and recorded an additional decrease of $42,417 in the balance of the 2022 Loan as the result of changes in the exchange rate during the period, which is included in gains from foreign currency translation on the accompanying consolidated statement of operations. As of December 31, 2023, the 2022 Loan has been paid in full.

Interest Expense on Loans Payable

The Company incurred interest expense related to the loans payable in the amount of $30,651 and $10,642 during the years ended December 31, 2023 and 2022, respectively. As of December 31, 2023 and December 31, 2022, there is accrued interest of $38,787 and $9,437, respectively, related to the Company’s loans payable.