Annual report pursuant to Section 13 and 15(d)

LEASES

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LEASES
 12 Months Ended
Dec. 31, 2023
Leases  
LEASES

21. LEASES

 

On April 8, 2021, GGI entered into a lease agreement to lease a retail space in Miami, Florida for 7 years, which expires May 1, 2028. As of December 31, 2023, the lease had a remaining term of approximately 4.3 years. Lease payments begin at $26,758 per month and escalate 3% every year over the duration of the lease. The Company was granted rent abatements of 15% for the first year of the lease term, and 10% for the second and third year of the lease term. The Company was required to pay a $56,130 security deposit.

 

As of December 31, 2023, the Company had no leases that were classified as a financing lease.

 

Total operating lease expense was $331,862 during each of the years ended December 31, 2023 and 2022. Lease expenses are recorded in general and administrative expenses on the accompanying consolidated statements of operations.

 

 

GAUCHO GROUP HOLDINGS, INC. AND SUBSIDIARIES

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

Supplemental cash flow information related to the lease is as follows:

 

    For the Year Ended December 31,  
    2023     2022  
             
Cash paid for amounts included in the measurement of lease liabilities:                
Operating cash flows from operating leases   $ 202,775     $ 175,316  
                 
Right-of-use assets obtained in exchange for lease obligations:                
Operating leases   $ -     $ -  
                 
Weighted Average Remaining Lease Term:                
Operating leases     4.3       5.3  
                 
Weighted Average Discount Rate:                
Operating leases     N/A       N/A  

 

Future minimum lease commitments are as follows:

 SCHEDULE OF FUTURE MINIMUM LEASE COMMITMENT

For the Years Ending December 31,   Amount  
2024     336,102  
2025     357,881  
2026     368,617  
2027     365,004  
2028     120,464  
Total future minimum lease payments     1,548,068  
Less: imputed interest     (219,660 )
Net future minimum lease payments     1,328,408  
Less: operating lease liabilities, current portion     250,711  
Operating lease liabilities, non-current portion   $ 1,077,697  

 

The Company is the lessor of a building and land that it purchased in connection with acquisition of GDS, pursuant to an operating lease which expires on August 31, 2031. At the end of the lease, the lessee may enter into a new lease or return the asset, which would be available to the Company for re-leasing. The Company recorded lease revenue of $40,324 and $36,005 during the years ended December 31, 2023 and 2022, respectively, related to this lease agreement.

 

 

GAUCHO GROUP HOLDINGS, INC. AND SUBSIDIARIES

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS