9. LOANS PAYABLE

The Company’s loans payable are summarized below:

  SCHEDULE OF LOANS PAYABLE

GAUCHO GROUP HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

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, and originally matured in May 2050. As of September 30, 2024, the balance on the EIDL Loan is $94,000. The Company is currently in default on the EIDL Loan; as a result, the loan is payable upon demand.

2023 Loan

On January 9, 2023, the Company received $185,000 in proceeds upon 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 currently in default on the 2023 Loan, and the loan is payable upon demand. The Company is currently renegotiating the payment terms on the 2023 Loan.

2024 Loan

On September 5, 2024, the Company received $100,000 in proceeds upon the issuance of a one-year, non-convertible promissory note (the “2024 Loan”). The 2024 Loan bears interest at a rate of 8% per annum and matured on October 15, 2024. The Company is currently in default on the 2024 Loan is renegotiating payment terms with the holder.

Loans Payable, related party

On June 24, 2024, the Company issued promissory notes in the aggregate amount of $420,000 to a greater than 10% holder of the Company’s common stock (the “Investor”), which mature on June 23, 2025. During September 2024, the Company issued promissory notes in the aggregate amount of $600,000 to the Investor, which matured on October 31, 2024 (together with promissory notes issued to the Investor on June 24, 2024, the “Investor Loans”). Of the Investor Loans issued, Investor Loans in the aggregate amount of $900,000 were issued for cash and one 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. In addition, on August 16, 2024, accrued interest of $20,153 was capitalized as principal on the Investor Loans. The Investor Loans bear interest at 8.0% per annum. The Company is currently in default on $600,000 principal owed in connection with Investor Loans that matured on October 31, 2024, and is renegotiating payment terms with the Investor.

Interest Expense on Loans Payable

The Company incurred interest expense related to the loans payable in the amount of $14,298 and $23,823 during the three and nine months ended September 30, 2024, respectively, and incurred interest expense related to the loans payable in the amount of $20,475 and $56,989 during the three and nine months ended September 30, 2023, respectively. As of September 30, 2024 and December 31, 2023, there is accrued interest of $32,833 and $26,129, respectively, related to the Company’s loans payable.

GAUCHO GROUP HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)