words such as “ anticipate , ” “ estimate , ” “ plan , ” “ continuing , ” “ ongoing , ” “ expect , ” “ believe , ” “ intend , ” “ may , ” “ will , ” “ should , ” “ could , ” and similar expressions are used to identify forward-looking statements . we caution you that these statements are not guarantees of future performance or events and are subject to a number of uncertainties , risks and other influences , many of which are beyond our control , which may influence the accuracy of the statements and the projections upon which the statements are based . see “ special note - forward-looking statements . ” our actual results could differ materially from those anticipated in the forward-looking statements as a result of certain factors discussed in “ risk factors ” and elsewhere in this prospectus . any one or more of these uncertainties , risks and other influences could materially affect our results of operations and whether forward-looking statements made by us ultimately prove to be accurate . our actual results , performance and achievements could differ materially from those expressed or implied in these forward-looking statements . we undertake no obligation to publicly update or revise any forward-looking statements , whether from new information , future events or otherwise . a 15:1 reverse stock split of the company 's common stock was effected on february 16 , 2021 ( the “ reverse stock split ” ) . all share and per share information has been retroactively adjusted to give effect to the reverse stock split for all periods presented , unless otherwise indicated . special note regarding emerging growth company status and smaller reporting company status currently we qualify as both an “ emerging growth company ” and as a “ smaller reporting company ” ( as defined in rule 12b-2 of the exchange act ) . we are allowed and have elected to comply with the smaller reporting company rules which allows us to omit certain information , including three years of year-to-year comparisons and tabular disclosure of contractual obligations , from this management 's discussion and analysis of financial condition and results of operations . however , we have provided all information for the periods presented that we believe to be appropriate and necessary . overview gaucho group holdings , inc. ( “ ggh ” or the “ company ” ) positions its e-commerce leather goods , accessories , and fashion brand , gaucho – buenos aires , as one of luxury , creating a platform for the global consumer to access their piece of argentine style and high-end products . with a concentration on leather goods , ready-to-wear and accessories , this is the luxury brand in which argentina finds its contemporary expression . by the end of the first quarter of 2021 , the company anticipates launching gaucho casa , a home & living line of luxury textiles and home accessories , which will be marketed and sold on the gaucho – buenos aires e-commerce platform . gaucho casa challenges traditional lifestyle collections with its luxury textiles and home accessories rooted in the singular spirit of the gaucho aesthetic . ggh seeks to grow its direct-to-consumer online products to global markets in the united states , asia , the united kingdom , europe , and argentina . we intend to focus on e-commerce and scalability of the gaucho – buenos aires and gaucho casa brands , as real estate in argentina is politically sensitive . ggh 's goal is to become recognized as the lvmh ( “ louis vuitton moët hennessy ” ) of south america 's leading luxury brands . through one of its wholly owned subsidiaries , ggh also owns and operates legacy investments in the boutique hotel , hospitality and luxury vineyard property markets . this includes a golf , tennis and wellness resort , as well as an award winning , wine production company concentrating on malbecs and malbec blends . utilizing these wines as its ambassador , ggh seeks to further develop its legacy real estate , which includes developing residential vineyard lots located within its resort . until may 31 , 2020 , the company 's senior management was based at its corporate office in new york city . due to covid-19 , we have terminated the corporate office lease and senior management works remotely . ggh 's local operations are managed by professional staff with substantial hotel , hospitality and resort experience in buenos aires and san rafael , argentina . 49 recent developments and trends we temporarily closed our hotel , restaurant , winery operations , and golf and tennis operations . recently , we have been able to reopen the algodon mansion as of november 11 , 2020 with covid-19 measures implemented . we have also been able to reopen our winery and golf and tennis facilities recently with covid-19 measures implemented . also due to covid-19 , construction on homes was temporarily halted from march to september but has resumed . however , as of december 21 , 2020 , international tourism by foreign residents , except those foreign residents of neighboring countries , is prohibited through january 31 , 2021. additionally , on december 24 , 2020 , argentina removed the exception for foreign residents of neighboring countries through january 9 , 2021. we reduced expenses by negotiating an early termination of our office lease at 135 fifth avenue in new york city , and all employees and contractors are currently working from home . in addition , we are reviewing our labor needs to run the administrative side of the company in new york . story_separator_special_tag the decrease is primarily the result of ( i ) decrease in the average balance of debt outstanding during the year ended december 31 , 2020 as compared to the year ended december 31 , 2019 , and ( ii ) the decrease in interest expenses to the federal administration of public revenues in argentine due to renegotiating the payment plan . 53 story_separator_special_tag style= `` font-family : times new roman , times , serif ; font-size : 10pt `` > the preparation of financial statements and related disclosures in conformity with u.s. gaap . these accounting principles require us to make estimates and judgments that can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenue and expense during the periods presented . we believe that the estimates and judgments upon which it relies are reasonably based upon information available to us at the time that it makes these estimates and judgments . to the extent that there are material differences between these estimates and actual results , our financial results will be affected . the accounting policies that reflect our more significant estimates and judgments and which we believe are the most critical to aid in fully understanding and evaluating our reported financial results are described below . the following is not intended to be a comprehensive list of all of our accounting policies or estimates . our accounting policies are more fully described in note 3 – summary of significant accounting policies , in our financial statements included elsewhere in this annual report . revenue recognition we earn revenues from the sale of real estate lots and sales of food and wine as well as hospitality , food & beverage , other related services , and from the sale of clothing and accessories . revenue from the sale of food , wine , agricultural products , clothes and accessories is recorded when the customer obtains control of the goods purchased . revenues from hospitality and other services are recognized as earned at the point in time that the related service is rendered , and the performance obligation has been satisfied . revenues from gift card sales are recognized when the card is redeemed by the customer . we do not recognize revenue for the portion of gift card values that is not expected to be redeemed ( “ breakage ” ) due to the lack of historical data . revenue from real estate lot sales is recorded when the lot is deeded , and legal ownership of the lot is transferred to the customer . the timing of our revenue recognition may differ from the timing of payment by our customers . a receivable is recorded when revenue is recognized prior to payment and we have an unconditional right to payment . alternatively , when payment precedes the provision of the related services , we record deferred revenue until the performance obligations are satisfied . deferred revenues associated with real estate lot sale deposits are recognized as revenues ( along with any outstanding balance ) when the lot sale closes , and the deed is provided to the purchaser . other deferred revenues primarily consist of deposits accepted by us in connection with agreements to sell barrels of wine , advance deposits received for grapes and other agricultural products , and hotel deposits . wine barrel and agricultural product advance deposits are recognized as revenues ( along with any outstanding balance ) when the product is shipped to the purchaser . hotel deposits are recognized as revenue upon occupancy of rooms , or the provision of services . stock-based compensation we measure the cost of services received in exchange for an award of equity instruments based on the fair value of the award on the date of grant . the fair value amount of the shares expected to ultimately vest is then recognized over the period for which services are required to be provided in exchange for the award , usually the vesting period . the estimation of stock-based awards that will ultimately vest requires judgment , and to the extent actual results or updated estimates differ from original estimates , such amounts are recorded as a cumulative adjustment in the period that the estimates are revised . we account for forfeitures as they occur . long-lived assets when circumstances , such as adverse market conditions , indicate that the carrying value of a long-lived asset may be impaired , we perform an analysis to review the recoverability of the asset 's carrying value , which includes estimating the undiscounted cash flows ( excluding interest charges ) from the expected future operations of the asset . these estimates consider factors such as expected future operating income , operating trends and prospects , as well as the effects of demand , competition and other factors . if the analysis indicates that the carrying value is not recoverable from future cash flows , an impairment loss is recognized to the extent that the carrying value exceeds the estimated fair value . any impairment losses are recorded as operating expenses , which reduce net income . income taxes we account for income taxes pursuant to the asset and liability method of accounting for income taxes pursuant to fasb asc 740 , “ income taxes . ” deferred tax assets and liabilities are recognized for taxable temporary differences and operating loss carry forwards . temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases . deferred tax assets are reduced by a valuation allowance when , in the opinion of management , it is more likely than not that some portion or all of the deferred tax assets will not be realized . deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment . 56 operating leases in

loss on extinguishment of debt loss on extinguishment of debt of approximately $ 356,000 during the year ended december 31 , 2020 represents the loss realized from the debt extinguishment due to the modification of convertible debt . gain on debt restructuring gain on debt restructuring of approximately $ 130,000 during the year ended december 31 , 2020 represents the gain realized from the restructuring of debt during the period . gain on settlement of payables gain on settlement of payables of approximately $ 2,000 during the year ended december 31 , 2020 represents the gain realized from the settlement of accounts payable during the period . liquidity and capital resources we measure our liquidity in variety of ways , including the following : replace_table_token_8_th during the years ended december 31 , 2020 and 2019 , we financed our activities from proceeds derived from debt and equity financings occurring in prior periods . a significant portion of the funds have been used to cover working capital needs and personnel , office expenses and various consulting and professional fees . during the years ended december 31 , 2020 and 2019 , we have relied primarily on debt and equity offerings to third party independent , accredited investors , related parties , and the government to sustain operations . during the year ended december 31 , 2020 , we received proceeds of approximately $ 3,222,000 from the issuance of convertible debt , proceeds of approximately $ 1,572,000 from proceeds from common stock offering , proceeds from related party loans payable and non-related party loans payable of approximately $ 574,000 and $ 28,000 , respectively , and proceeds from the ppp loan of approximately $ 242,000 , and proceeds from the eidl of $ 94,000. as of december 31 , 2020 , we had cash , working capital deficiency , and an accumulated deficit of $ 134,536 , $ 2,574,361 and $ 93,534,828 , respectively . during the years ended december 31 , 2020 and 2019 , we incurred a net loss of $ 5,781,683 and $ 6,956,815 , respectively , and used cash in operating activities of $ 4,943,758 and $ 6,080,411 , respectively .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```loss on extinguishment of debt loss on extinguishment of debt of approximately $ 356,000 during the year ended december 31 , 2020 represents the loss realized from the debt extinguishment due to the modification of convertible debt . gain on debt restructuring gain on debt restructuring of approximately $ 130,000 during the year ended december 31 , 2020 represents the gain realized from the restructuring of debt during the period . gain on settlement of payables gain on settlement of payables of approximately $ 2,000 during the year ended december 31 , 2020 represents the gain realized from the settlement of accounts payable during the period . liquidity and capital resources we measure our liquidity in variety of ways , including the following : replace_table_token_8_th during the years ended december 31 , 2020 and 2019 , we financed our activities from proceeds derived from debt and equity financings occurring in prior periods . a significant portion of the funds have been used to cover working capital needs and personnel , office expenses and various consulting and professional fees . during the years ended december 31 , 2020 and 2019 , we have relied primarily on debt and equity offerings to third party independent , accredited investors , related parties , and the government to sustain operations . during the year ended december 31 , 2020 , we received proceeds of approximately $ 3,222,000 from the issuance of convertible debt , proceeds of approximately $ 1,572,000 from proceeds from common stock offering , proceeds from related party loans payable and non-related party loans payable of approximately $ 574,000 and $ 28,000 , respectively , and proceeds from the ppp loan of approximately $ 242,000 , and proceeds from the eidl of $ 94,000. as of december 31 , 2020 , we had cash , working capital deficiency , and an accumulated deficit of $ 134,536 , $ 2,574,361 and $ 93,534,828 , respectively . during the years ended december 31 , 2020 and 2019 , we incurred a net loss of $ 5,781,683 and $ 6,956,815 , respectively , and used cash in operating activities of $ 4,943,758 and $ 6,080,411 , respectively .
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 Suspicious Activity Report : words such as “ anticipate , ” “ estimate , ” “ plan , ” “ continuing , ” “ ongoing , ” “ expect , ” “ believe , ” “ intend , ” “ may , ” “ will , ” “ should , ” “ could , ” and similar expressions are used to identify forward-looking statements . we caution you that these statements are not guarantees of future performance or events and are subject to a number of uncertainties , risks and other influences , many of which are beyond our control , which may influence the accuracy of the statements and the projections upon which the statements are based . see “ special note - forward-looking statements . ” our actual results could differ materially from those anticipated in the forward-looking statements as a result of certain factors discussed in “ risk factors ” and elsewhere in this prospectus . any one or more of these uncertainties , risks and other influences could materially affect our results of operations and whether forward-looking statements made by us ultimately prove to be accurate . our actual results , performance and achievements could differ materially from those expressed or implied in these forward-looking statements . we undertake no obligation to publicly update or revise any forward-looking statements , whether from new information , future events or otherwise . a 15:1 reverse stock split of the company 's common stock was effected on february 16 , 2021 ( the “ reverse stock split ” ) . all share and per share information has been retroactively adjusted to give effect to the reverse stock split for all periods presented , unless otherwise indicated . special note regarding emerging growth company status and smaller reporting company status currently we qualify as both an “ emerging growth company ” and as a “ smaller reporting company ” ( as defined in rule 12b-2 of the exchange act ) . we are allowed and have elected to comply with the smaller reporting company rules which allows us to omit certain information , including three years of year-to-year comparisons and tabular disclosure of contractual obligations , from this management 's discussion and analysis of financial condition and results of operations . however , we have provided all information for the periods presented that we believe to be appropriate and necessary . overview gaucho group holdings , inc. ( “ ggh ” or the “ company ” ) positions its e-commerce leather goods , accessories , and fashion brand , gaucho – buenos aires , as one of luxury , creating a platform for the global consumer to access their piece of argentine style and high-end products . with a concentration on leather goods , ready-to-wear and accessories , this is the luxury brand in which argentina finds its contemporary expression . by the end of the first quarter of 2021 , the company anticipates launching gaucho casa , a home & living line of luxury textiles and home accessories , which will be marketed and sold on the gaucho – buenos aires e-commerce platform . gaucho casa challenges traditional lifestyle collections with its luxury textiles and home accessories rooted in the singular spirit of the gaucho aesthetic . ggh seeks to grow its direct-to-consumer online products to global markets in the united states , asia , the united kingdom , europe , and argentina . we intend to focus on e-commerce and scalability of the gaucho – buenos aires and gaucho casa brands , as real estate in argentina is politically sensitive . ggh 's goal is to become recognized as the lvmh ( “ louis vuitton moët hennessy ” ) of south america 's leading luxury brands . through one of its wholly owned subsidiaries , ggh also owns and operates legacy investments in the boutique hotel , hospitality and luxury vineyard property markets . this includes a golf , tennis and wellness resort , as well as an award winning , wine production company concentrating on malbecs and malbec blends . utilizing these wines as its ambassador , ggh seeks to further develop its legacy real estate , which includes developing residential vineyard lots located within its resort . until may 31 , 2020 , the company 's senior management was based at its corporate office in new york city . due to covid-19 , we have terminated the corporate office lease and senior management works remotely . ggh 's local operations are managed by professional staff with substantial hotel , hospitality and resort experience in buenos aires and san rafael , argentina . 49 recent developments and trends we temporarily closed our hotel , restaurant , winery operations , and golf and tennis operations . recently , we have been able to reopen the algodon mansion as of november 11 , 2020 with covid-19 measures implemented . we have also been able to reopen our winery and golf and tennis facilities recently with covid-19 measures implemented . also due to covid-19 , construction on homes was temporarily halted from march to september but has resumed . however , as of december 21 , 2020 , international tourism by foreign residents , except those foreign residents of neighboring countries , is prohibited through january 31 , 2021. additionally , on december 24 , 2020 , argentina removed the exception for foreign residents of neighboring countries through january 9 , 2021. we reduced expenses by negotiating an early termination of our office lease at 135 fifth avenue in new york city , and all employees and contractors are currently working from home . in addition , we are reviewing our labor needs to run the administrative side of the company in new york . story_separator_special_tag the decrease is primarily the result of ( i ) decrease in the average balance of debt outstanding during the year ended december 31 , 2020 as compared to the year ended december 31 , 2019 , and ( ii ) the decrease in interest expenses to the federal administration of public revenues in argentine due to renegotiating the payment plan . 53 story_separator_special_tag style= `` font-family : times new roman , times , serif ; font-size : 10pt `` > the preparation of financial statements and related disclosures in conformity with u.s. gaap . these accounting principles require us to make estimates and judgments that can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenue and expense during the periods presented . we believe that the estimates and judgments upon which it relies are reasonably based upon information available to us at the time that it makes these estimates and judgments . to the extent that there are material differences between these estimates and actual results , our financial results will be affected . the accounting policies that reflect our more significant estimates and judgments and which we believe are the most critical to aid in fully understanding and evaluating our reported financial results are described below . the following is not intended to be a comprehensive list of all of our accounting policies or estimates . our accounting policies are more fully described in note 3 – summary of significant accounting policies , in our financial statements included elsewhere in this annual report . revenue recognition we earn revenues from the sale of real estate lots and sales of food and wine as well as hospitality , food & beverage , other related services , and from the sale of clothing and accessories . revenue from the sale of food , wine , agricultural products , clothes and accessories is recorded when the customer obtains control of the goods purchased . revenues from hospitality and other services are recognized as earned at the point in time that the related service is rendered , and the performance obligation has been satisfied . revenues from gift card sales are recognized when the card is redeemed by the customer . we do not recognize revenue for the portion of gift card values that is not expected to be redeemed ( “ breakage ” ) due to the lack of historical data . revenue from real estate lot sales is recorded when the lot is deeded , and legal ownership of the lot is transferred to the customer . the timing of our revenue recognition may differ from the timing of payment by our customers . a receivable is recorded when revenue is recognized prior to payment and we have an unconditional right to payment . alternatively , when payment precedes the provision of the related services , we record deferred revenue until the performance obligations are satisfied . deferred revenues associated with real estate lot sale deposits are recognized as revenues ( along with any outstanding balance ) when the lot sale closes , and the deed is provided to the purchaser . other deferred revenues primarily consist of deposits accepted by us in connection with agreements to sell barrels of wine , advance deposits received for grapes and other agricultural products , and hotel deposits . wine barrel and agricultural product advance deposits are recognized as revenues ( along with any outstanding balance ) when the product is shipped to the purchaser . hotel deposits are recognized as revenue upon occupancy of rooms , or the provision of services . stock-based compensation we measure the cost of services received in exchange for an award of equity instruments based on the fair value of the award on the date of grant . the fair value amount of the shares expected to ultimately vest is then recognized over the period for which services are required to be provided in exchange for the award , usually the vesting period . the estimation of stock-based awards that will ultimately vest requires judgment , and to the extent actual results or updated estimates differ from original estimates , such amounts are recorded as a cumulative adjustment in the period that the estimates are revised . we account for forfeitures as they occur . long-lived assets when circumstances , such as adverse market conditions , indicate that the carrying value of a long-lived asset may be impaired , we perform an analysis to review the recoverability of the asset 's carrying value , which includes estimating the undiscounted cash flows ( excluding interest charges ) from the expected future operations of the asset . these estimates consider factors such as expected future operating income , operating trends and prospects , as well as the effects of demand , competition and other factors . if the analysis indicates that the carrying value is not recoverable from future cash flows , an impairment loss is recognized to the extent that the carrying value exceeds the estimated fair value . any impairment losses are recorded as operating expenses , which reduce net income . income taxes we account for income taxes pursuant to the asset and liability method of accounting for income taxes pursuant to fasb asc 740 , “ income taxes . ” deferred tax assets and liabilities are recognized for taxable temporary differences and operating loss carry forwards . temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases . deferred tax assets are reduced by a valuation allowance when , in the opinion of management , it is more likely than not that some portion or all of the deferred tax assets will not be realized . deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment . 56 operating leases in

