Risk Factors Update Summary

• The company celebrated the opening of a flagship store in Miami Design District and launched luxury home goods. They anticipate Gaucho - Buenos Aires brand sales to grow, with vineyard home rental program launched. This change might result in increased brand visibility and revenue diversification.
• Fiscal Year 2023 High Low values were added: First Quarter $54.00 $9.30, Second Quarter $11.50 $5.50, Third Quarter $6.60 $1.85, Fourth Quarter $2.21 $0.47. These values provide insight into expected performance.
• RevPAR increased from $94 to $103 in USD, but only by 10% in ARS.
• Adoption of a Clawback Policy for the recovery of erroneously awarded compensation effective December 1, 2023.
• The Company entered into a Securities Purchase Agreement for the sale of shares and warrants.
• The flagship store is still operating at a loss, indicating financial challenges. This change might result in continued financial strain.
• The Company approved a reverse stock split from 1:20 to 1:10 to maintain Nasdaq listing.
• Added prepaid taxes and expenses to the list of financial instruments, increasing transparency.
• The company may be involved in litigation and arbitrations, with ongoing legal matters as of December 31, 2023.
• The company recorded stock-based compensation expense of $10,354 in 2023, down from $134,228 in 2022.
• Sales decreased by approximately $3,271,000, primarily due to a decrease in lot sales by $1,972,000. Hotel and restaurant revenues increased due to increased guest traffic and menu prices. Wine sales increased by approximately $338,000 due to new initiatives and increased prices. This change might result in a shift in revenue streams and profitability.
• Hollywood Burger Holdings, Inc. ownership increased from 10 to 26 shares, a significant change.
• Algodon Fine Wines partnered with 3Js Importing, replacing Seaview Imports as primary distributor in the U.S.
• The Company adopted a Clawback Policy for recovery of erroneously awarded incentive-based compensation.
• The Company executed a Letter Agreement to suspend operations, distribute cash, and release obligations.
• Accrued expenses increased significantly, with accrued compensation and payroll taxes rising from $803,869 to $1,943.
• The loss before income taxes decreased by $5,627,288 from 2022 to 2023.
• Definition of "Clawback Eligible Incentive Compensation" expanded to include specific criteria post-October 2, 2023.
• Added $7,000,000 impairment of investment. This change might result in a significant decrease in asset value.
• The company may not pay dividends on its common stock, impacting investor returns. This change might result in reduced shareholder income.
• Number of securities under Equity Compensation Plans changed: 2018 Plan reduced from 34 to 2, 2016 Plan reduced from 5,806 to 138.60. Significant reduction in available securities.
• Loans payable increased from $256,321 to $278,541, with the non-current portion rising from $91,665 to $90,372.
• General and administrative expenses increased by approximately $2,038,000, attributed to increased credit loss expenses and employee compensation. This change might result in higher operating costs impacting profitability.
• Recent Sales of Unregistered Securities section updated to reflect transactions since January 1, 2023. This indicates ongoing financial activities.
• GGI operates as a standalone segment, with a 11.9% equity interest in LVH.
• Added $505,731 loss on extinguishment of debt. This change might impact financial liabilities.
• The income tax provision decreased by $4,762,927 from 2022 to 2023.
• The Company issued shares of common stock for gross proceeds upon warrant exercises.
• Introduction of a "Clawback Period" defined as the three completed fiscal years preceding the Restatement Date.
• Ownership by Mr. Mathis decreased from 952 to 696 shares, a notable decrease.
• The Company held a Special Meeting of Stockholders approving issuance of shares pursuant to the 2023 SPA.
• The company raised $405,000 through a private placement, affecting capital structure. This change might result in improved liquidity.
• Lease expenses decreased to $221,241 in 2023 from $331,862 in 2022.
• The Company's deferred tax assets decreased by $403,637 from 2022 to 2023.
• Ownership by Mr. Lawrence decreased from 213 to 758 shares, a substantial increase.
• The Company issued common stock for gross proceeds of up to $7.2 million.
• Deferred revenue increased from $1,373,906 to $1,721,813, mainly due to real estate lot sales deposits.
• The IMF forecasted a 2.8% GDP contraction for Argentina in 2024.
• Weighted average remaining lease term decreased to 4.3 years in 2023 from 5 years in 2022.
• The company executed a Fourth Amendment to extend a ground lease, impacting operations. This change might result in delayed development timelines.
• Added $18,405 decrease in assets: Employee advances. This change might affect liquidity.
• The company recognized an increase in fair value of derivative liability of approximately $2,506,000 due to an event of default on the 2023 Note. This change might result in financial implications and impact the company's financial position.
• Convertible Promissory Note details added: On February 3, 2022, the Company purchased a note for $34,000 in cash and 1,000 shares of common stock. This shows a new financial agreement.
• Private Placement of Common Stock initiated on November 27, 2023, raised $405,104 through the sale of 591 shares at $4.50 per unit. This indicates a new financing activity.
• Lot sale obligations increased from $0 to $605,096, with a debt discount of $64,068, netting $541,027.
• Added $285,017 decrease in inventory. This change might impact cost of goods sold.
• The Company effected reverse stock splits of 1-for-15, 1-for-12, and 1-for-10.
• Ownership by Ms. Echevarria increased from 87 to 1,533 shares, a significant rise.
• Total future minimum lease payments decreased to $548,068 in 2023 from $1,851,219 in 2022.
• The company entered into an agreement to suspend business operations, affecting future plans. This change might result in operational disruptions.
• Net loss decreased by approximately $5,627,288, attributed to various factors including decreased impairment of investment and inducement expenses, offset by increased operating expenses. This change might indicate improved financial performance.
• Reverse Stock Splits executed: 1-for-10 on November 4, 2022, and another on September 25, 2023. These actions impact stock value and structure.
• Ownership by Mr. Dumont decreased from 627 to 50 shares, a substantial decrease.
• The Company filed a complaint against 3i, LP, and others for an unlawful securities transaction.
• Convertible debt obligations decreased from $1,997,595,909 to $1,997,320,459, with a debt discount of $6,450,795.
• Gross profit increased by $367,000, primarily due to increased hotel and restaurant revenues and decreased agriculture costs. Gross margin increased from 10% to 25%. This change might indicate improved operational efficiency and profitability.
• Added $336 decrease in prepaid expenses and other current assets. This change might affect short-term liquidity.
• Lot Deposit Agreements established: Six investors agreed to purchase real estate lots at $50,000 each, with rescission rights. This indicates new real estate transactions.
• The Company's common stock bid price on Nasdaq was $0.586 per share.
• Interest expense on convertible debt obligations increased from $1,683,815 to $3,281,676, reflecting higher financial costs.
• Interest expense increased by approximately $1,319,794, primarily due to increased amortization of debt discount and interest on convertible notes. This change might result in higher financial costs impacting profitability.
• Added $1,474,877 increase in liabilities: Accounts payable and accrued expenses. This change might impact working capital.
• Added $10,122,594 total adjustments. This change might impact overall financial performance.