Gaucho Group Holdings, Inc. Announces Fiscal 2021 Financial Results


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Algodon Wine Estates lot sales boost revenue to $4.9 million from $636,000 a year earlier

MIAMI, FL/ACCESSWIRE/April 14, 2022/ Gaucho Group Holdings, Inc. (NASDAQ: VINO), a company that includes a growing collection of e-commerce platforms with a focus on fine wines, luxury real estate, leather goods and accessories (the “Company” or “Gaucho Holdings”), announced today today’s financial results for the fourth quarter and audited years ending December 31, 2021. Investors are encouraged to read the Company’s Annual Report, Form 10-K, as filed with the Securities and Exchange Commission (“SEC”) , which contains additional information and will be posted at https://ir.gauchoholdings.com/sec-filings/all-sec-filings

Financial Highlights

  • Fourth quarter revenue was $1.7 million, compared to $162,000 in the same period last year. Full year revenue was $4.9 million, compared to $636,000 the previous year. The increase in income during both periods is mainly explained by an increase in the sale of real estate lots.
  • Gross profit for the fourth quarter was $1.1 million, compared to $6,000 in the same period last year. Profit for the full year was $3.7 million, compared to a gross loss of $91,000 the previous year
  • Net loss narrowed to $2.3 million from a loss of $5.7 million in 2021.
  • As of December 31, 2021, the Company had $3.6 million in cash and cash equivalents.

Commenting on the results, Scott Mathis, Managing Director of Gaucho Holdings, said: “We are delighted to end 2021 on a high note, particularly with respect to growing investor interest in our luxury Algodon wineries in Mendoza, in Argentina. For many other businesses around the world, the COVID-19 pandemic has had a profound impact on our operations, including our operations in Argentina, which have been particularly affected due to restrictions on international travel that lasted until november. revenue from the sale of lots to Algodon Wine Estates in Mendoza, Argentina. We expect to be able to recognize revenue from additional lot sales in 2022, and as the world continues to recover from the pandemic, we are optimistic that we could continue to see significant growth there.

“We continue to build on many of the fundamentals we have announced throughout 2021. In December, we unveiled the newly revised Master Plan for Algodon Wine Estates. This new plan includes the development of 200 additional lots (in addition to the 350 existing lots of the estate). lots), which could ultimately contribute to more than $100 million in revenue. As we have already noted, the centerpiece of the new master plan is expected to be an ultra-luxury 80-room hotel, which will also include 40-60 residence halls. , for which Algodon Wine Estates is seeking to co-develop with a world-class luxury hospitality brand. Additionally, we have made significant investments in our Las Vegas project to further expand opportunities in lodging, hospitality, retail and gaming, and we look forward to further announcements We also continue to progress towards the opening of the American flagship store of our brand of fashion accessories and leather in the Design District of Miami.

“Since the start of the new year, Gaucho – Buenos Aires” has launched new signature pieces and leather accessories, launched our home and living room collection, Gaucho Casa, welcomed a new design director, Lautaro Garcia de la Pea, and launched its Fall Collection 2022 collection during New York Fashion Week. We continue to move forward on each of these fronts, and more, and look forward to an exciting 2022 and beyond.”

About Gaucho Group Holdings, Inc.

For more than ten years, Gaucho Group Holdings, Inc. (gauchoholdings.com) has a mission to seek out and develop opportunities in the undervalued luxury and consumer real estate market in Argentina. Our company has positioned itself to take advantage of the continued and rapid growth of global e-commerce across multiple market sectors, with the goal of becoming a leader in diversified luxury goods and experiences across lifestyle industries and sought-after retail landscapes. With a focus on great wines (algodonfinewines.com & algodonwines.com.ar), hospitality (algodonhotels.com) and luxury real estate (algodonwineestates.com) associated with our proprietary brand Algodon, as well as leather goods, ready-to-wear and accessories from the fashion brand Gaucho – Buenos Aires” (gaucho.com), these are the luxury brands in which Argentina finds its contemporary expression.

Caution Regarding Forward-Looking Statements

The information in this press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact , included herein with respect to, among other things, planned capital expenditures, future cash flows and borrowings, the search for potential acquisition opportunities, our financial condition, our business strategy and other plans and objectives for future transactions, are forward-looking statements. Although we believe that the expectations reflected in these forward-looking statements are reasonable, they involve certain assumptions, risks and uncertainties and are not (and should not be taken as) guarantees of future performance. Refer to our risk factors set out in our reports filed with Edgar. The Company disclaims any obligation to update any forward-looking statements made herein.

Media Relations:

Gaucho Group Holdings, Inc.
Rick Stear
Marketing Director
212.739.7669
rstear@gauchoholdings.com

Investor Relations:

John McNamara
917-658-2602
john@tradigitalir.com

GAUCHO GROUP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET

The 31st of December,
2021 2020

Assets

Current assets

Species

$ 3,649,407 $ 134,536

Accounts receivable, net of a provision of $229,768 and $180,941 as of December 31, 2021 and 2020, respectively

658,091 255,720

Accounts receivable – related parties, net of a provision of $339,503 and $332,130 as at December 31, 2021 and 2020, respectively

927 874 252 852

Advances to employees

290 915 282,508

Inventory

1,490,639 1,172,775

Real estate lots intended for sale

542,885 139,492

Investment

53,066

Deposits, current

35,854

Prepaid expenses and other current assets

422 129 196,539

Total current assets

7,981,940 2,523,342

Long-lived assets

Accounts receivable, non-current portion, net

3,027,247

Property and equipment, net

3,776,941 2,860,222

Operating lease right-of-use asset

1,667,209

Foreign taxes paid in advance, net

804 265 519 499

Investment – related parties

7,000,000 457

Deferred investment fees

67,016

Non-current deposits

56 130

Total assets

$ 24,313,732 $ 5,970,536

GAUCHO GROUP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET (CONTINUED)

The 31st of December,
2021 2020

Liabilities, temporary equity and equity (deficiency)

Current liabilities

Accounts payable

$ 507 734 $ 891 168

Accruals, current portion

965 411 1,401,402

Deferred revenue

713 616 933 941

Operating lease debt, current portion

175,316

Loans payable, current portion

223,356 437,731

Debt securities

7,000 1,270,354

Convertible debt securities, net

5,728,348

Investor deposits

29,950

Other current liabilities

160,578 131,895

Total current liabilities

8,481,359 5,096,441

Long-term liabilities

Accruals, non-current portion

115,346 169,678

Operating lease debt, non-current portion

1,531,183

Loans payable, non-current portion

94,000 310 591

Total responsibilities

10,221,888 5,576,710

Commitments and contingencies (note 17)

Series B Convertible Redeemable Preferred Shares, par value $0.01 per share; 902,670 shares authorized; 0 and 901,070 issued and outstanding as of December 31, 2021 and 2020, respectively

9,010,824

Equity (insufficiency)

Preference shares, 11,000,000 shares authorized:

Series A Convertible Preferred Shares, par value $0.01 per share; 10,097,330 shares authorized; no shares are available for issue

Value of preferred shares

Common shares, par value $0.01 per share; 150,000,000 shares authorized; 9,881,955 and 5,234,406 shares issued and 9,878,586 and 5,231,037 shares outstanding as of December 31, 2021 and 2020, respectively

98,820 52,344

Premium

121 543 241 96,951,440

Accumulated other comprehensive income

(11,607,446 ) (11,932,801 )

Accumulated deficit

(95,726,534 ) (93,534,828 )

Treasury shares, at cost, 3,369 shares as of December 31, 2021 and 2020

(46,355 ) (46,355 )

Total Gaucho Group Holdings, Inc. Equity (deficiency)

14,261,726 (8,510,200 )

Non-controlling interest

(169,882 ) (106,798 )

Total equity (deficiency)

14,091,844 (8,616,998 )

Total liabilities, temporary equity and equity (deficit)

$ 24,313,732 $ 5,970,536

GAUCHO GROUP HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS

For the years ended
The 31st of December,
2021 2020

Sales

$ 4,915,240 $ 635,789

Cost of sales

(1,211,799 ) (726,686 )

Gross profit (loss)

3,703,441 (90,897 )

Functionnary costs

Sales and marketing

580 850 320,768

general and administrative

5,389,716 4,814,312

Depreciation and amortization

145,653 170 189

Insurance settlement gain

(30,240 )

Total operating expenses

6,116,219 5,275,029

Operating loss

(2,412,778 ) (5,365,926 )

Other expenses (income)

Interest expense, net

348,098 245 174

PPP loan forgiveness

(242,486 )

Loss on extinguishment of debt

355,602

Gain on debt restructuring

(130,421 )

Other income

(162,500 ) (2,100 )

Losses (Gains) from foreign currency translation

33 128 (52,498 )

Total other (revenue) expenses

(23,760 ) 415,757

Net loss

(2,389,018 ) (5,781,683 )

Net loss attributable to non-controlling interests

197,312 133 162

Dividends on Series B Preferred Shares

(721,752 )

Net loss attributable to common shareholders

$ (2,191,706 ) $ (6,370,273 )

Net loss per common share

Basic and Diluted

$ (0.27 ) $ (1.48 )

Weighted average number of common shares outstanding

Basic and Diluted

8,019,206 4,310,440

THE SOURCE: Gaucho Group Holdings, Inc.

See the source version on accesswire.com:
https://www.accesswire.com/697556/Gaucho-Group-Holdings-Inc-Announces-2021-Fiscal-Year-Financial-Results