9. LOANS PAYABLE

The Company’s loans payable are summarized below:

 SCHEDULE 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. 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 Company is in default with respect to the $101,460 principal that remains outstanding on the note.

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 March 31, 2024, the balance on the EIDL Loan is $89,612. The Company is currently in default on the EIDL Loan, and the loan is payable upon demand.

GAUCHO GROUP HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

Interest Expense on Loans Payable

The Company incurred interest expense related to the loans payable in the amount of $17,595 and $16,486 during the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024 and December 31, 2023, there is accrued interest of $43,851 and $38,787, respectively, related to the Company’s loans payable.