UNITED STATES
TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934SEPTEMBERJUNE 30, 20062007TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 L.P.Pennsylvania Pennsylvania
65-1189593
incorporation or organization)65-1189593
(I.R.S. Employer Identification Number) NO £Act.Act (Check one):Accelerated filer £Non-accelerated filer T
PART I | |||
3 | |||
PART II | |||
| 17 | ||
17 | |||
17 | |||
17 | |||
17 | |||
17 | |||
17 | |||
18 | |||
Certifications | |||
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2
Commonwealth Income & Growth Fund V | ||||||||
Condensed Balance Sheet | ||||||||
June 30, | December 31, | |||||||
2007 | 2006 | |||||||
(unaudited) | ||||||||
Assets | ||||||||
Cash and cash equivalents | $ | 3,923,760 | $ | 7,071,792 | ||||
Lease income receivable, net of reserves of $0 as of June 30, 2007 and December 31, 2006 | 109,025 | 202,493 | ||||||
Other receivable – Affiliates | 136,816 | 58,578 | ||||||
Prepaid Fees | 10,868 | 4,670 | ||||||
4,180,469 | 7,337,533 | |||||||
Computer equipment, at cost | 20,978,068 | 15,195,877 | ||||||
Accumulated depreciation | (5,289,126 | ) | (2,949,031 | ) | ||||
15,688,942 | 12,246,846 | |||||||
Equipment acquisition costs and deferred expenses, net | 594,844 | 474,586 | ||||||
Prepaid acquisition fees | 247,936 | 376,996 | ||||||
842,780 | 851,582 | |||||||
Total Assets | $ | 20, 712,191 | $ | 20,435,961 | ||||
Liabilities and Partners' Capital | ||||||||
Liabilities | ||||||||
Accounts payable | $ | 341,570 | $ | 177,550 | ||||
Accounts payable - General Partner | 63,462 | 56,762 | ||||||
Other accrued expenses | - | 38,446 | ||||||
Unearned lease income | 237,960 | 151,248 | ||||||
Notes Payable | 3,744,165 | 2,320,496 | ||||||
Total liabilities | 4,387,157 | 2,744,502 | ||||||
Partners' Capital | ||||||||
General partner | 1,000 | 1,000 | ||||||
Limited partners | 16,324,034 | 17,690,459 | ||||||
Total Partners' Capital | 16,325,034 | 17,691,459 | ||||||
Total Liabilities and Partners' Capital | $ | 20,712,191 | $ | 20,435,961 |
|
| September 30, |
| December 31, |
| ||
|
|
|
| ||||
|
| (unaudited) |
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|
| ||
Assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
| $ | 8,559,522 |
| $ | 10,722,300 |
|
Lease income receivable, net of reserves of $0 as of September 30, 2006 and December 31, 2005 |
|
| 246,167 |
|
| 91,047 |
|
Other receivable – Affiliates |
|
| 120,531 |
|
| 71,259 |
|
Other receivables - CCC |
|
| 3,572 |
|
| 94,293 |
|
Prepaid fees |
|
| 7,761 |
|
| — |
|
|
|
|
| ||||
|
| 8,937,553 |
|
| 10,978,899 |
| |
|
|
|
| ||||
Computer equipment, at cost |
|
| 12,853,266 |
|
| 5,480,291 |
|
Accumulated depreciation |
|
| (2,062,875 | ) |
| (289,811 | ) |
|
|
|
| ||||
|
| 10,790,391 |
|
| 5,190,480 |
| |
|
|
|
| ||||
Equipment acquisition costs and deferred expenses, net |
|
| 422,457 |
|
| 211,190 |
|
Prepaid acquisition fees |
|
| 444,231 |
|
| 483,504 |
|
|
|
|
| ||||
|
| 866,688 |
|
| 694,694 |
| |
|
|
|
| ||||
Total Assets |
| $ | 20,594,632 |
| $ | 16,864,073 |
|
|
|
|
| ||||
Liabilities and Partners’ Capital |
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
Accounts payable |
| $ | 195,205 |
| $ | 138,832 |
|
Accounts payable - General Partner |
|
| 48,475 |
|
| 61,224 |
|
Accounts payable – Commonwealth Capital Corp. |
|
| — |
|
| 39,258 |
|
Unearned lease income |
|
| 79,729 |
|
| 45,867 |
|
Notes payable |
|
| 1,926,998 |
|
| 785,157 |
|
|
|
|
| ||||
Total liabilities |
|
| 2,250,407 |
|
| 1,070,338 |
|
|
|
|
| ||||
Partners’ Capital |
|
|
|
|
|
|
|
General partner |
|
| 1,000 |
|
| 1,000 |
|
Limited partners |
|
| 18,343,225 |
|
| 15,792,735 |
|
|
|
|
| ||||
Total Partners’ Capital |
|
| 18,344,225 |
|
| 15,793,735 |
|
|
|
|
| ||||
Total Liabilities and Partners’ Capital |
| $ | 20,594,632 |
| $ | 16,864,073 |
|
|
|
|
|
see accompanying notes to condensed financial statements
Commonwealth Income & Growth Fund V | ||||||||||||||||
Condensed Statement of Operations | ||||||||||||||||
Three months Ended June 30, | Six months Ended June 30, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Income | ||||||||||||||||
Lease | $ | 1,737,452 | $ | 762,116 | $ | 3,115,734 | $ | 1,366,704 | ||||||||
Interest and other | 46,808 | 118,198 | 121,289 | 167,623 | ||||||||||||
Total income | 1,784,260 | 880,314 | 3,237,023 | 1,534,327 | ||||||||||||
Expenses | ||||||||||||||||
Operating | 369,762 | 257,596 | 655,984 | 612,086 | ||||||||||||
Organizational costs | - | - | - | 36,751 | ||||||||||||
Equipment management fee - General Partner | 86,873 | 41,848 | 155,787 | 72,077 | ||||||||||||
Interest | 40,676 | 20.885 | 68,739 | 37,057 | ||||||||||||
Depreciation | 1,300,867 | 587,678 | 2,340,095 | 1,027,417 | ||||||||||||
Amortization of equipment acquisition costs and deferred expenses | 74,345 | 33,041 | 133,260 | 57,436 | ||||||||||||
Loss on sale of equipment | 38 | - | 38 | - | ||||||||||||
Miscellaneous | - | 230 | - | 230 | ||||||||||||
Total expenses | 1,872,561 | 941,278 | 3,353,903 | 1,843,054 | ||||||||||||
Net (loss) | $ | (88,301 | ) | $ | (60,963 | ) | $ | (116,880 | ) | $ | (308,729 | ) | ||||
Net (loss) allocated to limited partners | $ | (94,547 | ) | $ | (65,730 | ) | $ | (129,376 | ) | $ | (319,974 | ) | ||||
Net (loss) per equivalent limited partnership unit | $ | (0.08 | ) | $ | (0.05 | ) | $ | (0.10 | ) | $ | (0.26 | ) | ||||
Weighted average number of equivalent limited partnership units outstanding during the period | 1,249,951 | 1,249,951 | 1,249,951 | 1,249,951 |
Condensed Statements of Operations
Nine Months Ended | For the period of | ||||||||||||
Three Months Ended | |||||||||||||
September 30, | September 30, | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||
Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease |
| $ | 1,022,145 |
| $ | 84,282 |
| $ | 2,388,849 |
| $ | 101,759 |
|
Interest and other |
|
| 106,215 |
|
| 14,481 |
|
| 273,838 |
|
| 14,483 |
|
|
|
|
|
|
| ||||||||
Total income |
|
| 1,128,360 |
|
| 98,763 |
|
| 2,662,687 |
|
| 116,242 |
|
|
|
|
|
|
| ||||||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating |
|
| 248,219 |
|
| 253,543 |
|
| 860,535 |
|
| 481,203 |
|
Organizational costs |
|
| — |
|
| 44,568 |
|
| 36,751 |
|
| 124,368 |
|
Equipment management fee - General Partner |
|
| 48,013 |
|
| 4,214 |
|
| 120,091 |
|
| 5,088 |
|
Interest | �� |
| 28,506 |
|
| — |
|
| 65,564 |
|
| — |
|
Depreciation |
|
| 745,646 |
|
| 63,580 |
|
| 1,773,063 |
|
| 77,055 |
|
Amortization of equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition costs and deferred expenses |
|
| 41,739 |
|
| 3,735 |
|
| 99,175 |
|
| 4,454 |
|
|
|
|
|
|
| ||||||||
Total expenses |
|
| 1,112,123 |
|
| 369,640 |
|
| 2,955,179 |
|
| 692,168 |
|
|
|
|
|
|
| ||||||||
Net income (loss) |
| $ | 16,237 |
| $ | (270,877 | ) | $ | (292,492 | ) | $ | (575,926 | ) |
|
|
|
|
|
| ||||||||
Net income (loss) allocated to limited partners |
| $ | 9,339 |
| $ | (274,483 | ) | $ | (310,635 | ) | $ | (580,551 | ) |
|
|
|
|
|
| ||||||||
Net income (loss) per equivalent limited partnership unit |
| $ | 0.01 |
| $ | (0.51 | ) | $ | (0.25 | ) | $ | (1.56 | ) |
|
|
|
|
|
| ||||||||
Weighted average number of equivalent limited partnership units outstanding during the period |
|
| 1,249,950 |
|
| 535,174 |
|
| 1,212,899 |
|
| 371,096 |
|
|
|
|
|
|
|
see accompanying notes to condensed financial statements
Commonwealth income & Growth Fund V | ||||||||||||||||||||
Condensed Statements of Partners’ Capital | ||||||||||||||||||||
For the Six Months ended June 30, 2007 | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
General | Limited | |||||||||||||||||||
Partner | Partner | General | Limited | |||||||||||||||||
Units | Units | Partner | Partners | Total | ||||||||||||||||
Balance, January 1, 2007 | 50 | 1,249,951 | $ | 1,000 | $ | 17,690,459 | $ | 17,691,459 | ||||||||||||
Net income (loss) | - | - | 12,496 | (129,376 | ) | (116,880 | ) | |||||||||||||
Distributions | - | - | (12,496 | ) | (1,237,049 | ) | (1,249,545 | ) | ||||||||||||
Balance, June 30, 2007 | 50 | 1,249,951 | $ | 1,000 | $ | 16,324,034 | $ | 16,325,034 |
Condensed Statements of Partners’ Capital
For the nine months ended September 30, 2006
(unaudited)
|
| General |
| Limited |
| General |
| Limited |
| Total |
| |||
|
|
|
|
|
|
| ||||||||
Balance, December 31, 2005 |
| 50 |
| 985,494 |
| $ | 1,000 |
| $ | 15,792,735 |
| $ | 15,793,735 |
|
Contributions |
|
|
| 264,456 |
|
|
|
|
| 5,254,658 |
|
| 5,254,658 |
|
Offering costs |
|
|
|
|
|
|
|
|
| (593,264 | ) |
| (593,264 | ) |
Net income (loss) |
|
|
|
|
|
| 18,143 |
|
| (310,635 | ) |
| (292,492 | ) |
Distributions |
|
|
|
|
|
| (18,143 | ) |
| (1,800,269 | ) |
| (1,818,412 | ) |
|
|
|
|
|
|
| ||||||||
Balance, September 30, 2006 |
| 50 |
| 1,249,950 |
| $ | 1,000 |
| $ | 18,343,225 |
| $ | 18,344,225 |
|
|
|
|
|
|
|
|
see accompanying notes to condensed financial statements
5
Commonwealth Income & Growth Fund V | ||||||||
Condensed Statements of Cash Flow | ||||||||
Six months Ended | ||||||||
June 30, | ||||||||
2007 | 2006 | |||||||
(unaudited) | ||||||||
Net cash provided by operating activities | $ | 1,788,248 | $ | 727,396 | ||||
Capital expenditures | (3,563,021 | ) | (3,589,483 | ) | ||||
Prepaid acquisition fees | 129,060 | (47,459 | ) | |||||
Net proceeds from sale of computer equipment | 744 | - | ||||||
Equipment acquisition fees paid to General Partner | (231,319 | ) | (194,550 | ) | ||||
Net cash (used in) investing activities | (3,664,536 | ) | (3,831,492 | ) | ||||
Contributions | - | 5,254,658 | ||||||
Distributions | (1,249,545 | ) | (1,130,556 | ) | ||||
Offering costs | - | (593,264 | ) | |||||
Debt Placement fees paid to General Partner | (22,200 | ) | (12,743 | ) | ||||
Net cash (used in) provided by financing activities | (1,271,745 | ) | 3,518,095 | |||||
Net (decrease) increase in cash and cash equivalents | (3,148,032 | ) | 413,999 | |||||
Cash and cash equivalents, beginning of period | 7,071,792 | 10,722,300 | ||||||
Cash and cash equivalents, end of period | $ | 3,923,760 | $ | 11,136,299 |
Condensed Statements of Cash Flow
For the nine months ended September 30, 2006 and the period of March 14, 2005 (Commencement ofOperations) through September 30, 2005
|
| 2006 |
| 2005 |
| ||
|
|
|
| ||||
Net cash provided by (used in) operating activities |
| $ | 1,086,121 |
| $ | (402,619 | ) |
|
|
| |||||
Capital expenditures |
|
| (5,820,712 | ) |
| (1,287,558 | ) |
Prepaid acquisition fees |
|
| 39,273 |
|
| (379,949 | ) |
Equipment acquisition fees paid to General Partner |
|
| (294,919 | ) |
| (66,651 | ) |
|
|
|
| ||||
Net cash (used in) investing activities |
|
| (6,076,358 | ) |
| (1,734,158 | ) |
|
|
|
| ||||
Contributions |
|
| 5,254,658 |
|
| 12,766,790 |
|
Distributions |
|
| (1,818,412 | ) |
| (341,296 | ) |
Offering costs |
|
| (593,264 | ) |
| (1,524,839 | ) |
Debt Placement fees paid to General Partner |
|
| (15,523 | ) |
| (3,787 | ) |
|
|
|
| ||||
Net cash provided by financing activities |
|
| 2,827,459 |
|
| 10,896,868 |
|
|
|
|
| ||||
Net (decrease) increase in cash and cash equivalents |
|
| (2,162,778 | ) |
| 8,760,091 |
|
Cash and cash equivalents, beginning of period |
|
| 10,722,300 |
|
| 1,067 |
|
|
|
|
| ||||
Cash and cash equivalents, end of period |
| $ | 8,559,522 |
| $ | 8,761,158 |
|
|
|
|
|
see accompanying notes to condensed financial statements
6
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3. Computer Equipment The Partnership is the lessor of equipment under operating leases with periods ranging from 10 to 36 months. In general, associated costs such as repairs and maintenance, insurance and property taxes are paid by the lessee. Through June 30, 2007, the Partnership has only entered into operating leases. Lease revenue is recognized on the monthly straight-line basis which is generally in accordance with the terms of the operating lease agreements. The company’s leases do not contain any step-rent provisions or escalation clauses nor are lease revenues adjusted based on any index. Remarketing fees are paid to the leasing companies from which the Partnership purchases leases. These are fees that are earned by the leasing companies when the initial terms of the lease have been met and the equipment is re-leased or sold. The General Partner believes that this strategy adds value since it entices the leasing company to "stay with the lease" for potential extensions, remarketing or sale of equipment. This strategy potentially minimizes any conflicts the leasing company may have with a potential new lease and will potentially assist in maximizing overall portfolio performance. The remarketing fee is tied into lease performance thresholds and is factored in the negotiation of the fee. Remarketing fees incurred in connection with lease extensions are accounted for as operating costs. Remarketing fees incurred in connection with the sale of computer equipment are included in our gain or loss calculations. No remarketing fees were paid for the six months ended June 30, 2007. The Partnership’s share of the computer equipment in which it participates with other partnerships at June 30, 2007 and December 31, 2006 was approximately $7,977,000 and $3,923,000 respectively, which is included in the Partnership’s fixed assets on its balance sheet. The total cost of the equipment shared by the Partnership with other partnerships at June 30, 2007 and December 31, 2006 was approximately $15,750,000 and $8,188,000, respectively. The Partnership’s share of the outstanding debt associated with this equipment at June 30, 2007 and December 31, 2006 was $2,138,000 and $526,000, respectively. The total outstanding debt at June 30, 2007 and December 31, 2006 was $4,074,500 and $1,148,000, respectively. The following is a schedule of future minimum rentals on noncancellable operating leases at June 30, 2007:
4. Related Party Transactions Receivables/Payables As of June 30, 2007, the Partnership’s related party receivables and payables are short term, unsecured, and non-interest bearing. Reimbursable Expenses The General Partner and its affiliates are entitled to reimbursement by the Partnership for the cost of supplies and services obtained and used by the General Partner in connection with the administration and operation of the Partnership from third parties unaffiliated with the General Partner. In addition, the General Partner and its affiliates are entitled to reimbursement for certain expenses incurred by the General Partner and its affiliates in connection with the administration and operation of the Partnership. During the six months ended June 30, 2007, the Partnership recorded $663,569 for reimbursement of expenses to the General Partner. During the six months ended June 30, 2006, the Partnership recorded $379,613 for reimbursement of expenses to the General Partner. Offering Costs Offering costs are payments for selling commissions, dealer manager fees, professional fees and other offering expenses relating to the syndication of the Partnership’s units. Selling commissions are 8% of the partners’ contributed capital and dealer manager fees are 2% of the partners’ contributed capital. These costs have been deducted from partnership capital in the accompanying financial statements. Equipment Acquisition Fee The General Partner is entitled to be paid an equipment acquisition fee of 4% of the purchase price of each item of equipment purchased as compensation for the negotiation of the acquisition of the equipment and lease thereof or sale under a conditional sales contract. For the six months ended June 30, 2007 and 2006, equipment acquisition fees of approximately $231,300 and $195,000, respectively, were earned bythe General Partner. Debt Placement Fee As compensation for arranging term debt to finance the acquisition of equipment by the Partnership, the General Partner is paid a fee equal to 1% of such indebtedness; provided, however, that such fee shall be reduced to the extent the Partnership incurs such fees to third parties, unaffiliated with the General Partner or the lender, with respect to such indebtedness and no such fee will be paid with respect to borrowings from the General Partner or its affiliates. For the six months ended June 30, 2007 and 2006, debt placement fees of approximately $22,200 and $13,000, respectively, were earned by the General Partner. Equipment Management Fee The General Partner is entitled to be paid a monthly fee equal to the lesser of (i) the fees which would be charged by an independent third party for similar services for similar equipment or (ii) the sum of (a) two percent of (1) the gross lease revenues attributable to equipment which is subject to full payout net leases which contain net lease provisions plus (2) the purchase price paid on conditional sales contracts as received by the Partnership and (b) 5% of the gross lease revenues attributable to equipment which is subject to operating and capital leases. For the six months ended June 30, 2007, and 2006 equipment management fees of approximately $156,000, and $72,000, respectively, were earned by the General Partner. Equipment Liquidation Fee With respect to each item of equipment sold by the General Partner (other than in connection with a conditional sales contract), a fee equal to the lesser of (i) 50% of the competitive equipment sale commission or (ii) three percent of the sales price for such equipment is payable to the General Partner. The payment of such fee is subordinated to the receipt by the limited partners of the net disposition proceeds from such sale in accordance with the Partnership Agreement. Such fee will be reduced to the extent any liquidation or resale fees are paid to unaffiliated parties. For the six months ended June 30, 2007, equipment liquidation fees of approximately $23 were earned by the General Partner. For the six months ended June 30, 2006 there were no equipment liquidation fees earned by the General Partner. 5. Notes Payable Notes payable consisted of the following:
These notes are secured by specific computer equipment and are nonrecourse liabilities of the Partnership. Aggregate maturities of notes payable for each of the periods subsequent to June 30, 2007 are as follows:
5. Supplemental Cash Flow Information Other noncash activities included in the determination of net loss are as follows:
No interest or principal on notes payable was paid by the Partnership because direct payment was made by lessee to the bank in lieu of collection of lease income and payment of interest and principal by the Partnership. Noncash investing and financing activities include the following:
Item
FORWARD LOOKING STATEMENTS Certain statements within this Quarterly Report on Form 10-Q may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). These statements are being made pursuant to the PSLRA, with the intention of obtaining the benefits of the “safe harbor” provisions of the PSLRA, and, other than as required by law, we assume no obligation to update or supplement such statements. Forward-looking statements are those that do not relate solely to historical fact. They include, but are not limited to, any statement that may predict, forecast, indicate or imply future results, performance, achievements or events. You can identify these statements by the use of words such as “may,” “will,” “could,” “anticipate,” “believe,” “estimate,” “expects,” “intend,” “predict” or “project” and variations of these words or comparable words or phrases of similar meaning. These forward-looking statements reflect our current beliefs and expectations with respect to future events and are based on assumptions and are subject to risks and uncertainties and other factors outside our control that may cause actual results to differ materially from those projected. CRITICAL ACCOUNTING POLICIES The Partnership's discussion and analysis of its financial condition and results of operations are based upon its financial statements which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires the Partnership to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. The Partnership bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. The Partnership believes that its critical accounting policies affect its more significant judgments and estimates used in the preparation of its financial statements. COMPUTER EQUIPMENT
Commonwealth Capital Corp., on behalf of the Partnership and other affiliated partnerships, acquires computer equipment subject to associated debt obligations and lease revenue and allocates a participation in the cost, debt and lease revenue to the various partnerships based on certain risk factors. Depreciation on computer equipment for financial statement purposes is based on the straight-line method over estimated useful lives of four years. REVENUE RECOGNITION Through The company’s leases do not contain any step-rent provisions or escalation clauses nor are lease revenues adjusted based on any index. The Partnership reviews a customer’s credit history before extending credit and establishes a provision for uncollectible accounts receivable based upon the credit risk of specific customers, historical trends and other information. LONG-LIVED ASSETS The Partnership evaluates its long-lived assets when events or circumstances indicate that the value of the asset may not be recoverable. The Partnership determines whether an impairment exists by estimating the undiscounted cash flows to be generated by each asset. If the estimated undiscounted cash flows are less than the carrying value of the asset, The Partnership’s primary source of capital for the
The Partnership intends to invest approximately $6,192,000 in additional equipment for the remainder of 2007. The acquisition of this equipment will be funded by debt financing from cash flows from lease rental payments. For the six months ended June 30, 2007, the Partnership generated cash flows from operating activities in the amount of $1,790,000, which includes a net loss of $796,000. For the $1,085,000. Other non-cash activities included in the determination of net income include direct payments of lease income by lessees to banks of approximately $222,000. The As of June 30, 2007, the outstanding debt was approximately $3,744,000 with interest rates ranging from 4.61% to 6.3%, and will be payable through January 2010. The Partnership’s cash from operations is expected to continue to be adequate to cover all operating expenses, liabilities, and preferred distributions to Partners during the next 12-month period. If available Cash Flow or Net Disposition Proceeds are insufficient to cover the Partnership expenses and liabilities on a short and long term basis, the Partnership will attempt to obtain additional funds by disposing of or refinancing Equipment, or by borrowing within its permissible limits. The Partnership may, from time to time, reduce the distributions to its Partners if it deems necessary. Since the Partnership’s leases are on a “triple-net” basis, no reserve for maintenance and repairs The Partnership’s share of the computer equipment in which it participates with other partnerships at June 30, 2007 and December 31, 2006 was approximately $7,977,000 and $3,923,000 respectively, which is included in the Partnership’s fixed assets on its balance sheet. The total cost of the equipment shared by the Partnership with other partnerships at June 30, 2007 and December 31, 2006 was approximately $15,750,000 and $8,188,000, respectively. The Partnership’s share of the outstanding debt associated with this equipment at June 30, 2007 and December 31, 2006 was $2,138,000 and $526,000, respectively. The total outstanding debt at June 30, 2007 and December 31, 2006 was $4,074,500 and $1,148,000, respectively. Results of Operations Three months ended For the three months ended
$61,000. Lease income increased by 128% to approximately 2007. Operating expenses, excluding depreciation, primarily consist of accounting, legal, outside service fees and reimbursement of expenses to CCC 2006. This increase is primarily attributable to an increase in Partnership taxes, LP expenses and employee bonuses. The equipment management fee is approximately 5% of the gross lease revenue attributable to equipment that is subject to operating leases. The equipment management fee increased 108% to approximately Depreciation and amortization expenses consist of depreciation on computer equipment and amortization of equipment acquisition fees. Six months ended June 30, 2007 compared to Six months ended June 30, 2006 For the six months ended June 30, 2007, the Partnership
$309,000. Lease income increased to 2006. Operating expenses, excluding depreciation, primarily consist of accounting, legal, outside service fees and reimbursement of expenses to CCC, a related party, for administration and operation of the Partnership. The expenses increased to approximately printing expenses. The equipment management fee is approximately 5% of the gross lease revenue attributable to equipment that is subject to operating leases. The equipment management fee increased to approximately
Depreciation and amortization expenses consist of depreciation on computer equipment and amortization of equipment acquisition fees. Item 3. Quantitative and Qualitative Disclosures About Market Risk The Partnership believes its exposure to market risk is not material due to the fixed interest rate of its long-term Item 4. Controls and Procedures The Chief Executive Officer and Principal Financial Officer of the 2007. The Based upon this review, the within the time periods specified in the Securities and Exchange Commission rules and forms and (ii) is accumulated and communicated to the Partnership's management, including its Chief Executive Officer and Principal Financial Officer, to allow timely decisions regarding required disclosure and to ensure that such information is recorded, processed, summarized and reported within the required time periods. There have been no changes in the General Partner’s internal controls or in other factors that could materially affect our disclosure controls and procedures in the Part II: OTHER INFORMATION Commonwealth Income & Growth Fund V N/A
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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