Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020USD ($)shares | |
Cover [Abstract] | |
Entity Registrant Name | COMMONWEALTH INCOME & GROWTH FUND V |
Document Type | 10-K |
Document Period End Date | Dec. 31, 2020 |
Amendment Flag | false |
Entity Central Index Key | 0001253347 |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | shares | 0 |
Entity Public Float | $ | $ 0 |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | false |
Entity Small Business | true |
Entity Shell Company | false |
Entity Interactive Data Current | Yes |
Entity Incorporation State Country Code | PA |
Entity File Number | 333-108057 |
Entity Current Reporting Status | No |
Entity Voluntary Filers | No |
Entity Well-known Seasoned Issuer | No |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Balance Sheets
Balance Sheets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 33,920 | $ 5,211 |
Lease income receivable, net of reserve of approximately $10,000 and $76,000 at December 31, 2020 and December 31, 2019, respectively | 21,710 | 160,346 |
Accounts receivable, Commonwealth Capital Corp | 0 | 19,053 |
Other receivables | 333 | 1,054 |
Prepaid expenses | 3,247 | 1,323 |
Current assets | 59,210 | 186,987 |
Net investment in finance leases | 0 | 8,262 |
Equipment, at cost | 3,871,354 | 4,480,679 |
Accumulated depreciation | (3,683,178) | (4,214,492) |
Technology equipment, net | 188,176 | 266,187 |
Total Assets | 247,386 | 461,436 |
Liabilities | ||
Accounts payable | 131,056 | 134,153 |
Accounts payable, CIGF, Inc. net | 84,411 | 52,893 |
Accounts payable, Commonwealth Capital Corp, net of accounts receivable of approximately $46,000 and $28,000 at December 31, 2020 and December 31, 2019, respectively | 98,872 | 115,504 |
Other accrued expenses | 0 | 2,977 |
Unearned lease income | 1,499 | 19,730 |
Notes payable | 26,522 | 87,215 |
Total Liabilities | 342,360 | 412,472 |
Commitments and contingencies | ||
PARTNERS' (DEFICIT) CAPITAL | ||
General Partner | 1,000 | 1,000 |
Limited Partners | (95,974) | 47,964 |
Total Partners' (deficit) capital | (94,974) | 48,964 |
Total liabilities and Partners' capital | $ 247,386 | $ 461,436 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Reserve for doubtful lease income receivable | $ 10,000 | $ 76,000 |
Accounts receivable | $ 46,000 | $ 28,000 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue | ||
Lease | $ 299,070 | $ 487,538 |
Interest and other | 5,344 | 30,421 |
Sales and property taxes | 25,470 | 28,513 |
Gain on sale of equipment | 19,519 | 4,172 |
Total revenue and gain on sale of equipment | 349,403 | 550,644 |
Expenses | ||
Operating, excluding depreciation and amortization | 287,670 | 88,936 |
Interest | 2,385 | 10,968 |
Depreciation | 174,568 | 277,704 |
Sales and property taxes | 25,470 | 28,513 |
Bad debt expense | 3,248 | 82,380 |
Total expenses | 493,341 | 488,501 |
Net (loss) income | (143,938) | 62,143 |
Net (loss) income allocated to Limited Partners | $ (143,938) | $ 62,143 |
Net (loss) income per equivalent Limited Partnership unit | $ (0.12) | $ 0.05 |
Weighted average number of equivalent Limited Partnership units outstanding during the period | 1,235,581 | 1,236,148 |
Statements of Partners' Capital
Statements of Partners' Capital - USD ($) | General Partners | Limited Partners | Total |
Partners' capital account, units at Dec. 31, 2018 | 50 | 1,236,148 | |
Partners' capital at Dec. 31, 2018 | $ 1,000 | $ (14,179) | $ (13,179) |
Net income (loss) | $ 62,143 | 62,143 | |
Partners' capital account, units at Dec. 31, 2019 | 50 | 1,236,148 | |
Partners' capital at Dec. 31, 2019 | $ 1,000 | $ 47,964 | 48,964 |
Net income (loss) | $ (143,938) | (143,938) | |
Redemptions, units | (567) | ||
Partners' capital account, units at Dec. 31, 2020 | 50 | 1,235,581 | |
Partners' capital at Dec. 31, 2020 | $ 1,000 | $ (95,974) | $ (94,974) |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | ||
Net (loss) income | $ (143,938) | $ 62,143 |
Adjustments to reconcile net income to net cash (used in) provided by provided by operating activities | ||
Depreciation | 174,568 | 277,704 |
Bad debt expense | 3,248 | 82,380 |
Gain on sale of equipment | (19,519) | (4,172) |
Other noncash activities | ||
Lease revenue net of interest expense, on notes payable, realized as a result of direct payment of principal to bank by lessee | (80,325) | (216,427) |
Earned interest on finance leases | (298) | (826) |
Changes in assets and liabilities | ||
Payments from finance leases | 5,706 | 9,215 |
Lease income receivable | 135,388 | (128,351) |
Other receivables | 0 | 3,079 |
Receivables - other LP's | 721 | (19,053) |
Prepaid expenses | (1,924) | (158) |
Accounts payable | (3,097) | (39,845) |
Accounts payable, Commonwealth Capital Corp., net | 2,421 | (86,642) |
Accounts payable, CIGF, Inc., net | 31,518 | 30,161 |
Other accrued expenses | (2,982) | (2) |
Unearned lease income | (18,224) | (164) |
Net cash provided by (used in) by operating activities | 83,263 | (30,958) |
Net cash used in investing activities | ||
Capital expenditures | (116,380) | 0 |
Net proceeds from the sale of equipment | 61,826 | 16,474 |
Net cash (used in) provided by investing activities | (54,554) | 16,474 |
Net increase (decrease) in cash and cash equivalents | 28,709 | (14,484) |
Cash and cash equivalents beginning of year | 5,211 | 19,695 |
Cash and cash equivalents end of year | $ 33,920 | $ 5,211 |
Business
Business | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business | Commonwealth Income & Growth Fund V (the “Partnership”) is a limited partnership organized in the Commonwealth of Pennsylvania in May 2003. The Partnership offered for sale up to 1,250,000 units of the limited partnership at the purchase price of $20 per unit (the “offering”). The Partnership reached the minimum amount in escrow and commenced operations on March 14, 2005. As of February 24, 2006, the Partnership was fully subscribed. During the year ended December 31, 2020, limited partners redeemed 567 units for a total redemption price of approximately $0 due to surrender of shares in accordance with the terms of the limited partnership agreement. For the year ended December 31, 2019, limited partners did not redeem any units of the partnership. The Partnership used the proceeds of the offering to acquire, own and lease various types of information technology, medical technology, telecommunications technology, inventory management equipment and other similar capital equipment, which is leased primarily to U.S. corporations and institutions. Commonwealth Capital Corp. (“CCC”), on behalf of the Partnership and other affiliated partnerships, acquires equipment subject to associated debt obligations and lease agreements and allocates a participation in the cost, debt and lease revenue to the various partnerships that it manages based on certain risk factors. The Partnership’s investment objective is to acquire primarily high technology equipment. Information technology has developed rapidly in recent years and is expected to continue to do so. Technological advances have permitted reductions in the cost of information technology processing capacity, speed, and utility. In the future, the rate and nature of equipment development may cause equipment to become obsolete more rapidly. The Partnership also acquires high technology medical, telecommunications and inventory management equipment. The Partnership’s general partner will seek to maintain an appropriate balance and diversity in the types of equipment acquired. The market for high technology medical equipment is growing each year. Generally, this type of equipment will have a longer useful life than other types of technology equipment. This allows for increased re-marketability, if it is returned before its economic or announcement cycle is depleted. The Partnership’s General Partner is Commonwealth Income & Growth Fund, Inc. (the “General Partner”), a Pennsylvania corporation which is an indirect wholly owned subsidiary of CCC. Approximately ten years after the commencement of operations (the “operational phase”), the Partnership intended to sell or otherwise dispose of all of its equipment; make final distributions to partners, and to dissolve. The Partnership was originally scheduled to end its operational phase on February 4, 2017. During the year ended December 31, 2015, the operational phase was officially extended to December 31, 2020 through an investor proxy vote. The Partnership is expected to terminate on December 31, 2022. Allocations of income and distributions of cash are based on the Agreement. The various allocations under the Agreement prevent any limited partner’s capital account from being reduced below zero and ensure the capital accounts reflect the anticipated sharing ratios of cash distributions, as defined in the Agreement. For Liquidity and Going Concern For the year ended December 31, 2020, the Partnership incurred positive cash flow. However, historically the Partnership has reported recurring negative cash flows. At December 31, 2020, the Partnership has a working capital deficit of approximately $282,000. Such factors raise substantial doubt about the Partnership’s ability to continue as a going concern. The General Partner agreed to forgo distributions and allocations of net income owed to it, and suspended limited partner distributions. The General Partner will continue to waive certain fees and may defer certain related party payables owed to the Partnership in an effort to further increase the Partnership’s cash flow. Additionally, the Partnership will seek to enhance portfolio returns and maximize cash flow through the use of leveraged lease transactions: the acquisition of lease equipment through financing. The Partnership may also attempt to obtain additional funds by disposing of or refinancing equipment, or by borrowing within its permissible limits. However, at this time, it is uncertain as to whether the General Partner’s plans will be successful. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Use of Estimates The preparation of financial statements is in conformity with accounting principles generally accepted in the United States of America which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and these differences could be material. Such estimates relate primarily to the determination of residual values at the end of the lease term, the expected future cash flows, and fair value used for impairment analysis purposes and determination of the allowance for doubtful accounts. Disclosure of Fair Value of Financial Instruments Fair Value Measurements The Partnership applies the provisions included in the Fair Value Measurements and Disclosures Topic to all financial and non-financial assets and liabilities. This Topic emphasizes that fair value is a market-based measurement, not an entity-specific measurement. It clarifies that fair value is an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The Topic requires the use of valuation techniques to measure fair value that maximize the use of observable inputs and minimize use of unobservable inputs. These inputs are prioritized as follows: ● Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities. ● Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. ● Level 3: Unobservable inputs for which there is little or no market data and which require internal development of assumptions about how market participants price the asset or liability. There were no assets or liabilities measured at fair value on a recurring basis at December 31, 2020 and 2019. There were no assets or liabilities measured on a non-recurring basis at December 31, 2020 and 2019. Fair Value disclosures of financial instruments Estimated fair value was determined by management using available market information and appropriate valuation methodologies. However, judgment was necessary to interpret market data and develop estimated fair value. Cash, other receivables, accounts payable and other accrued expenses are carried at amounts which reasonably approximate their fair values as of December 31, 2020 and 2019 due to the immediate or short-term nature of these financial instruments. The Partnership’s long-term debt consists of notes payable, which are secured by specific equipment and are nonrecourse liabilities of the Partnership. The estimated fair value of this debt at December 31, 2020 and 2019 approximates the carrying value of these instruments, due to the interest rates on this debt approximating current market interest rates. The Partnership classifies the fair value of its notes payable within Level 2 of the valuation hierarchy based on the observable inputs used to estimate fair value. Revenue Recognition The Partnership is principally engaged in business of leasing equipment. Ancillary to the Partnership’s principal equipment leasing business, the Partnership also sells certain equipment and may offer certain services to support its customers. The Partnership’s lease transactions are principally accounted for under Topic 842 on January 1, 2019. Prior to Topic 842, the Partnership accounted for these transactions under Topic 840, Leases (“Topic 840”). Lease revenue includes revenue generated from leasing equipment to customers, including re-rent revenue, and is recognized as either on a straight line basis or using the effective interest method over the length of the lease contract, if such lease is either an operating lease or finance lease, respectively. The Partnership’s sale of equipment along with certain services provided to customers is recognized under ASC Topic 606, Revenue from Contracts with Customers, (“Topic 606”), which was adopted on January 1, 2018. Prior to adoption of Topic 606, the Partnership recognized these transactions under ASC Topic 605, Revenue Recognized, and (“Topic 605”). The Partnership recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. The amount of revenue recognized reflects the consideration the Partnership expects to be entitled to in exchange for such products or services. For the years ended December 31, 2020 and 2019, the Partnership’s lease portfolio consisted of operating leases and finance leases. For operating leases, lease revenue is recognized on a straight-line basis in accordance with the terms of the lease agreement. Finance lease interest income is recorded over the term of the lease using the effective interest method. Upon the end of the lease term, if the lessee has not met the return conditions as set out in the lease, the Partnership is entitled in certain cases to additional compensation from the lessee. The Partnership’s accounting policy for recording such payments is to treat them as revenue. Gains or losses from sales of leased and off-lease equipment are recorded on a net basis in the Partnership’s Statement of Operations. Gains from the termination of leases are recognized when the lease is modified and terminated concurrently. Our leases do not contain any step-rent provisions or escalation clauses nor are lease revenues adjusted based on any index. Partnership’s accounting policy for sales and property taxes collected from the lessees are recorded in the current period as gross revenues and expenses. Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). This standard establishes an impairment model (known as the current expected credit loss (“CECL”) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which is intended to result in a timelier recognition of losses. Under the CECL model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments, but not expected extensions or modifications) from the date of initial recognition of the financial instrument. Measurement of expected credit losses are to be based on relevant forecasts that affect collectability. The scope of financial assets within the CECL methodology is broad and includes trade receivables from certain revenue transactions and certain off-balance sheet credit exposures. Different components of the guidance require modified retrospective or prospective adoption. In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses. ASU 2018-19 clarifies that receivables arising from operating leases are not within the scope of the credit losses standard. Instead, entities would need to apply other U.S. GAAP, namely Topic 842 (Leases), to account for changes in the collectability assessment for operating leases. Other than operating lease receivables, Partnership trade receivables include receivables from finance leases and equipment sales. Under Topic 606 (Revenue from Contracts with Customers), revenue is recognized when, among other criteria, it is probable that the entity will collect the consideration to which it is entitled for goods or services transferred to a customer. At the point that finance lease receivables are recorded, they become subject to the CECL model and estimates of expected credit losses over their contractual life will be required to be recorded at inception based on historical information, current conditions, and reasonable and supportable forecasts. Trade receivables derived from equipment sales are of short duration and there is not a material difference between incurred losses and expected losses. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which amends and clarifies several provisions of Topic 326. In May 2019, the FASB issued ASU 2019-05, Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief, which amends Topic 326 to allow the fair value option to be elected for certain financial instruments upon adoption. ASU 2019-10 extended the effective date of ASU 2016-13 for the Partnership until December 15, 2022. While we continue to evaluate the new guidance, including the subsequent updates to Topic 326, we do not anticipate that adoption will have a material impact on the Partnership financial statements and related disclosures. For both the years ended December 31, 2020 and 2019, Partnership finance lease revenue subject to CECL represented less than 1% of total lease revenue. Other Assets Equipment acquisition costs and deferred expenses are amortized on a straight-line basis over two-to-four year lives based on the original term of the lease and the loan, respectively. Unamortized acquisition costs and deferred expenses are charged to amortization expense when the associated leased equipment is sold. Long-Lived Assets Depreciation on equipment for financial statement purposes is based on the straight-line method estimated generally over useful lives of two to five years. Once an asset comes off lease or is released, the Partnership reassesses the useful life of an asset. 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 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 then impairment exists. The amount of the impairment is determined based on the difference between the carrying value and the fair value. Fair value is determined based on estimated discounted cash flows to be generated by the asset, third party appraisals or comparable sales of similar assets, as applicable, based on asset type. Residual values are determined by management and are calculated using information from both internal and external sources, as well as other economic indicators. Reimbursable Expenses Reimbursable expenses are comprised of both ongoing operational expenses and fees associated with the allocation of salaries and benefits, referred to as other LP (“other LP”) expenses. For the year ended December 31, 2020, the General Partner waived certain reimbursable expenses charged to the Partnership by CCC in connection with the administration and operation of the Partnership. CCC is not reimbursed for salary and benefit costs of control persons. Reimbursable expenses, which are charged to us by CCC in connection with our administration and operation, are allocated to us based upon several factors including, but not limited to, the number of investors, leasing volume and stage of the program. For example, if one partnership has more investors than another program sponsored by CCC, then higher amounts of expenses related to investor services, mailing and printing costs will be allocated to that partnership. Also, while a partnership is in its offering stage, higher compliance costs are allocated to it than to a program not in its offering stage, as compliance resources are utilized to review incoming investor suitability and proper documentation. Finally, lease related expenses, such as due diligence, correspondence, collection efforts and analysis staff costs, increase as programs purchase more leases, and decrease as leases terminate and equipment is sold. All of these factors contribute to CCC’s determination as to the amount of expenses to allocate to us or to other sponsored programs. CCC is not reimbursed for salary and benefit costs of control persons. For the Partnership, all reimbursable items are expensed as they are incurred. Forgiveness of Related Party Payables In accordance with ASC Topic 470-50 Debt Modifications and Extinguishments Lease Income Receivable Lease income receivable includes current lease income receivable net of allowances for uncollectible accounts, if any. The Partnership monitors lease income receivable to ensure timely and accurate payment by lessees. Its Lease Relations department is responsible for monitoring lease income receivable and, as necessary, resolving outstanding invoices. Lease revenue is recognized on a monthly straight-line basis which is in accordance with the terms of the lease agreement. The Partnership reviews a customer’s credit history before extending credit. When the analysis indicates that the probability of full collection is unlikely, the Partnership may establish an allowance for uncollectible lease income receivable based upon the credit risk of specific customers, historical trends and other information. The Partnership writes off its lease income receivable when it determines that it is uncollectible and all economically sensible means of recovery have been exhausted. Cash and cash equivalents We consider cash and cash equivalents to be cash on hand and highly liquid investments with the original maturity dates of 90 days or less. At December 31, 2020, cash was held in a bank account maintained at one financial institution with a balance of approximately $35,000. Bank accounts are federally insured up to $250,000 by the FDIC. At December 31, 2020 and 2019, the total cash bank balance was approximately as follows: Balance at December 31 2020 2019 Total bank balance $ 35,000 $ 7,000 FDIC insured (35,000 ) (7,000 ) Uninsured amount $ - $ - The Partnership’s bank balances are fully insured by the FDIC. The Partnership deposits its funds with a Moody's AAA-Rated banking institution which is one of only three AAA-Rated banks listed on the New York Stock Exchange. The Partnership has not experienced any losses in such accounts, and believes it is not exposed to any significant credit risk. The amount in such accounts will fluctuate throughout 2021 due to many factors, including cash receipts, equipment acquisitions, interest rates, and distribution to limited partners. Income Taxes Pursuant to the provisions of Section 701 of the Internal Revenue Code, the Partnership is not subject to federal or state income taxes. All income and losses of the Partnership are the liability of the individual partners and are allocated to the partners for inclusion in their individual tax returns. The Partnership does not have any entity-level uncertain tax positions. In addition, the Partnership believes its tax status as a pass-through entity would be sustained under U.S. Federal, state or local tax examination. The Partnership files U.S. federal and various state income tax returns and is generally subject to examination by federal, state and local income tax authorities for three years from the filing of a tax return. Taxable income differs from financial statement net income as a result of reporting certain income and expense items for tax purposes in periods other than those used for financial statement purposes, principally relating to depreciation, amortization, and lease revenue. Net Loss Per Equivalent Limited Partnership Unit The net loss per equivalent limited partnership unit is computed based upon net income allocated to the limited partners and the weighted average number of equivalent units outstanding during the period. |
Information Technology, Medical
Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment ('Equipment') | 12 Months Ended |
Dec. 31, 2020 | |
Communications and Information Technology [Abstract] | |
Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment ('Equipment') | The Partnership is the lessor of equipment under operating leases with periods that generally will range from 12 to 48 months. In general, associated costs such as repairs and maintenance, insurance and property taxes are paid by the lessee. Gains from the termination of leases are recognized when the lease is modified and terminated concurrently. There were no gains from lease terminations included in lease revenue for the years ended December 31, 2020 and 2019. CCC, on behalf of the Partnership and on behalf of other affiliated companies and partnerships (“partnerships”), acquires equipment subject to associated debt obligations and lease agreements and allocates a participation in the cost, debt and lease revenue to the various companies based on certain risk factors. The Partnership’s share of the cost of the equipment in which it participates with other partnerships at December 31, 2020 was approximately $2,069,000 and is included in the Partnership’s equipment on its balance sheet. The total cost of the equipment shared by the Partnership with other partnerships at December 31, 2020 was approximately $8,586,000. The Partnership’s share of the outstanding debt associated with this equipment at December 31, 2020 was approximately $5,000 and is included in the Partnership’s notes payable on its balance sheet. The total outstanding debt related to the equipment shared by the Partnership at December 31, 2020 was approximately $152,000. The Partnership’s share of the cost of the equipment in which it participates with other partnerships at December 31, 2019 was approximately $2,213,000 and is included in the Partnership’s equipment on its balance sheet. The total cost of the equipment shared by the Partnership with other partnerships at December 31, 2019 was approximately $8,873,000. The Partnership’s share of the outstanding debt associated with this equipment at December 31, 2019 was approximately $51,000 and is included in the Partnership’s notes payable on its balance sheet. The total outstanding debt related to the equipment shared by the Partnership at December 31, 2019 was approximately $798,000. As the Partnership and the other programs managed by the General Partner continue to acquire new equipment for the portfolio, opportunities for shared participation are expected to continue. Sharing in the acquisition of a lease portfolio gives the fund an opportunity to acquire additional assets and revenue streams, while allowing the fund to remain diversified and reducing its overall risk with respect to one portfolio. The following is a schedule of approximate future minimum rentals on operating leases: Years Ended December 31, Amount Year ending December 31, 2021 $ 90,500 Year ending December 31, 2022 25,000 Year ending December 31, 2023 23,500 Year ending December 31, 2024 21,000 Year ending December 31, 2025 9,000 $ 169,000 Finance Leases The following lists the approximate components of the net investment in finance leases: At December 31, 2020 2019 Carrying value of lease receivable $ - $ 6,000 Estimated residual value of leased equipment (unguaranteed) - 2,000 Net investment in finance leases $ - $ 8,000 We assess credit risk for all of our customers, including those that lease under finance leases. This credit risk is assessed using an internally developed model which incorporates credit scores from third party providers and our own customer risk ratings and is periodically reviewed. Our internal ratings are weighted based on the industry that the customer operates in. Factors taken into consideration when assessing risk includes both general and industry specific qualitative and quantitative metrics. We separately take in to consideration payment history, open lawsuits, liens and judgments. Typically, we will not extend credit to a company that has been in business for less than 5 years or that has filed for bankruptcy within the same period. Our internally based model may classify a company as high risk based on our analysis of their audited financial statements. Additional considerations of high risk may include history of late payments, open lawsuits and liens or judgments. In an effort to mitigate risk, we typically require deposits from those in this category. A reserve for credit losses is deemed necessary when payment has not been received for one or more months of receivables due on the equipment held under finance leases. At the end of each period, management evaluates the open receivables due on this equipment and determines the need for a reserve based on payment history and any current factors that would have an impact on payments. The following table presents the credit risk profile, by creditworthiness category, of our finance lease receivables at December 31, 2020: Percent of Total Risk Level 2020 2019 Low -% -% Moderate-Low -% -% Moderate -% -% Moderate-High -% 100% High -% -% Net Finance lease receivable -% 100% As of the year ended December 31, 2020 we determined that we did not have a need for an allowance for uncollectible accounts associated with any of our finance leases, as the customer payment histories with us, associated with these leases, has been positive. |
Significant Customers
Significant Customers | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Significant Customers | Lessees equal to or exceeding 10% of lease revenue: Years Ended December 31, 2020 2019 Alliant Techsystems, Inc. 32% 21% Automatic Data Processing 21% 12% L-3 Communications 18% 10% Vista Outdoor Inc. 12% ** Cummins, Inc. 12% 42% ** Lessees equal to or exceeding 10% of net lease income receivable: At December 31, 2020 2019 Automatic Data Processing. 46% **% Alliant Techsystems, Inc. 31% ** Cummins, Inc. **% 96% ** |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Receivables/Payables As of December 31, 2020, and 2019, the Company’s related party receivables and payables are short term, unsecured and non-interest bearing. Effective April 2, 2020, CCC agreed to convert approximately $169,000 of the December 31, 2019 related party payables from due on demand to long term. Such payables won't be due until sometime after April 15, 2021. The purpose of this was to help the Partnership with preserving liquidity. ENTITY RECEIVING COMPENSATION TYPE OF COMPENSATION AMOUNT INCURRED DURING 2020 AMOUNT INCURRED DURING 2019 OPERATIONAL AND SALE OR LIQUIDATION STAGES The General Partner and its Affiliates Reimbursable Expenses $ 272,000 $ 100,000 The General Partner Equipment Acquisition Fee. $ - $ - The General Partner Debt Placement Fee $ - $ - The General Partner Equipment Management Fee $ - $ - The General Partner Equipment Liquidation Fee $ - $ - The General Partner Partnership Interest $ - $ - |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2020 | |
Notes Payable [Abstract] | |
Notes Payable | Notes payable consisted of the following approximate amounts: At December 31, 2020 2019 Installment note payable to bank; interest at 4.87% due in quarterly installments of $11,897, including interest, with final payment in January 2020 - 12,000 Installment note payable to bank; interest at 5.56% due in monthly installments of $2,925, including interest, with final payment in June 2020 - 17,000 Installment note payable to bank; interest at 4.87% due in monthly installments of $1,902, including interest, with final payment in July 2020 - 6,000 Installment note payable to bank; interest at 6.28% due in quarterly installments of $722, including interest, with final payment in September 2020 - 3,000 Installment note payable to bank; interest at 5.75% due in monthly installments of $857, including interest, with final payment in November 2020 - 9,000 Installment note payable to bank; interest at 5.31% due in quarterly installments of $4,618, including interest, with final payment in January 2021 5,000 22,000 Installment note payable to bank; interest at 4.70% due in monthly installments of $1,360, including interest, with final payment in February 2021 3,000 18,000 Installment note payable to bank; interest at 5.00% due in monthly installments of $452, including interest, with final payment in November 2024 19,000 - $ 27,000 $ 87,000 The notes are secured by specific technology equipment with a carrying value of approximately $49,000 and are nonrecourse liabilities of the Partnership. As such, the notes do not contain any financial debt covenants with which we must comply on either an annual or quarterly basis. Aggregate approximate payments of notes payable for each of the periods subsequent to December 31, 2020 are as follows: Years Ended December 31, Amount 2021 $ 12,000 2022 5,000 2023 5,000 2024 5,000 $ 27,000 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | No interest or principal on notes payable was paid by the Partnership during 2020 and 2019 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. During the years ended December 31, 2020 and 2019, the Partnership wrote-off fully depreciated equipment of approximately $0 and $0, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | FINRA On May 3, 2013, the FINRA Department of Enforcement filed a complaint naming Commonwealth Capital Securities Corp. (“CCSC”) and the owner of the firm, Kimberly Springsteen-Abbott, as respondents; however, on October 22, 2013, FINRA filed an amended complaint that dropped the allegations against CCSC and reduced the scope of the allegations against Ms. Springsteen-Abbott. The sole remaining charge was that Ms. Springsteen-Abbott had approved the misallocation of some expenses to certain Funds. Management believes that the expenses at issue include amounts that were proper and that were properly allocated to Funds, and also identified a smaller number of expenses that had been allocated in error, but were adjusted and repaid to the affected Funds when they were identified in 2012. During the period in question, Commonwealth Capital Corp. (“CCC”) and Ms. Springsteen-Abbott provided important financial support to the Funds, voluntarily absorbed expenses and voluntarily waived fees in amounts aggregating in excess of any questioned allocations. A Hearing Panel ruled on March 30, 2015, that Ms. Springsteen-Abbott should be barred from the securities industry because the Panel concluded that she allegedly misallocated approximately $208,000 of expenses involving certain Funds over the course of three years. As such, management had already reallocated back approximately $151,225 of the $208,000 (in allegedly misallocated expenses) to the affected funds, which was fully documented, as good faith payments for the benefit of those Income Funds. The decision of the Hearing Panel was stayed when it was appealed to FINRA's National Adjudicatory Council (the “NAC”) pursuant to FINRA Rule 9311. The NAC issued a decision that upheld the lower panel’s ruling and the bar took effect on August 23, 2016. Ms. Springsteen-Abbott appealed the NAC’s decision to the U.S. Securities and Exchange Commission (the “SEC”). On March 31, 2017, the SEC criticized that decision as so flawed that the SEC could not even review it, and remanded the matter back to FINRA for further consideration consistent with the SEC’s remand, but did not suggest any view as to a particular outcome. On July 21, 2017, FINRA reduced the list of 1,840 items totaling $208,000 to a remaining list of 87 items totaling $36,226 (which includes approximately $30,000 of continuing education expenses for personnel providing services to the Funds), and reduced the proposed fine from $100,000 to $50,000, but reaffirmed its position on the bar from the securities industry. Respondents promptly appealed FINRA’s revised ruling to the SEC. All the requested or allowed briefs have been filed with the SEC. The SEC upheld FINRA’s order on February 7, 2020 to bar, but eliminated FINRA’s proposed fine. Ms. Springsteen-Abbott has filed a Petition for Review in the United States Court of Appeals for the District of Columbia Circuit to review a final order entered against her by the U.S. Securities and Exchange Commission. On February 26, 2021 the United States Court of Appeals for the District of Columbia Circuit dismissed in part and denied in part Ms. Springsteen-Abbott’s petition; however, given the SEC’s prior removal FINRA’s fine Management anticipates the ruling will not result in any material adverse financial impact to the Funds. |
Reconciliation of Amounts Repor
Reconciliation of Amounts Reported For Financial Reporting Purposes To Amounts On The Federal Partnership Return (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Reconciliation Of Amounts Reported For Financial Reporting Purposes To Amounts On Federal Partnership Return | |
Reconciliation of Amounts Reported For Financial Reporting Purposes To Amounts On The Federal Partnership Return (Unaudited) | The tax basis of the Partnership’s net assets and liabilities vary from the amounts presented in these financial statements at December 31, 2020 and 2019 as follows: Years Ended December 31, 2020 2019 Tax basis of net assets (unaudited) $ 310,522 $ 520,398 Financial statement basis of net assets (57,900 ) 48,964 Difference (unaudited) $ 368,422 $ 471,434 The primary differences between the tax basis of net assets and the amounts recorded in the financial statements are the result of differences in accounting for impairment losses, syndication costs and differences between the depreciation methods used in the financial statements and the Partnership’s tax returns (unaudited). Years Ended December 31, 2020 2019 Net (loss) income for financial reporting purposes to taxable (loss) income $ (143,938 ) $ 62,143 (Loss) gain on sale of equipment (16,301 ) 7,113 Depreciation (15,194 ) 166,940 Unearned lease income (4,117 ) (14,270 ) Penalties 300 1,410 Bad (recovery) expense (66,232 ) 65,538 *Other 40,296 2,919 Taxable (loss) income on the Federal Partnership return (unaudited) $ (205,186 ) $ 291,793 *Other- includes financial statement adjustments that will be reflected on the tax return in the subsequent year. Adjustment or loss on sale of equipment is due to longer useful lives for tax reporting purposes. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | COVID-19 Pandemic The amount of revenue recognized and the pattern of revenue recognition may be impacted by COVID-19. Some of the business sectors that we service such as education centers, medical facilities, payroll administrators, manufacturing and transportation, we may need to account for returns and refund liabilities. The pattern of revenue recognition may change for delays in rendering services. In periods ended subsequent to the outbreak of COVID-19, the impact on expected credit losses and future cash flow projections used in impairment testing will need to be considered. The Company continues to evaluate whether adjustments to the financial statements are required or whether additional disclosures are necessary. In our leasing business, the Company is always subject to credit losses as it relates to a customer’s ability to make timely rental payments. The impact of COVID-19 may contribute to risk of non-performance, where a customer may experience financial difficulty and may delay in making timely payments. The Company recognizes impairment of receivables and loans when losses are incurred, which is when it is probable that an entity will be unable to collect all amounts due according to the contractual terms of the arrangement. Impairment is measured based on the present value of expected future cash flows discounted at the receivable’s or loans effective interest rate, except that, as a practical expedient, impairment can be measured based on a receivable’s or loans’ observable market price or the fair value of the underlying collateral. The Company believes its estimate of expected losses have been recognized based on historical experience, current conditions, and reasonable forecasts. The impacts of COVID-19 may necessitate additional adjustments in future forecasts of expected losses. Although the Partnership cannot estimate the length or gravity of the impact of the COVID-19 outbreak at this time, if the pandemic continues, it may have a material adverse effect on the Partnership results of future operations, financial position, and liquidity in fiscal year 2021 and beyond. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Use of Estimates | The preparation of financial statements is in conformity with accounting principles generally accepted in the United States of America which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and these differences could be material. Such estimates relate primarily to the determination of residual values at the end of the lease term, the expected future cash flows, and fair value used for impairment analysis purposes and determination of the allowance for doubtful accounts. |
Fair Value Measurement | The Partnership applies the provisions included in the Fair Value Measurements and Disclosures Topic to all financial and non-financial assets and liabilities. This Topic emphasizes that fair value is a market-based measurement, not an entity-specific measurement. It clarifies that fair value is an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The Topic requires the use of valuation techniques to measure fair value that maximize the use of observable inputs and minimize use of unobservable inputs. These inputs are prioritized as follows: ● Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities. ● Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. ● Level 3: Unobservable inputs for which there is little or no market data and which require internal development of assumptions about how market participants price the asset or liability. There were no assets or liabilities measured at fair value on a recurring basis at December 31, 2020 and 2019. There were no assets or liabilities measured on a non-recurring basis at December 31, 2020 and 2019. |
Fair Value Disclosures of Financial Instruments | Estimated fair value was determined by management using available market information and appropriate valuation methodologies. However, judgment was necessary to interpret market data and develop estimated fair value. Cash, other receivables, accounts payable and other accrued expenses are carried at amounts which reasonably approximate their fair values as of December 31, 2020 and 2019 due to the immediate or short-term nature of these financial instruments. The Partnership’s long-term debt consists of notes payable, which are secured by specific equipment and are nonrecourse liabilities of the Partnership. The estimated fair value of this debt at December 31, 2020 and 2019 approximates the carrying value of these instruments, due to the interest rates on this debt approximating current market interest rates. The Partnership classifies the fair value of its notes payable within Level 2 of the valuation hierarchy based on the observable inputs used to estimate fair value. |
Revenue Recognition | The Partnership is principally engaged in business of leasing equipment. Ancillary to the Partnership’s principal equipment leasing business, the Partnership also sells certain equipment and may offer certain services to support its customers. The Partnership’s lease transactions are principally accounted for under Topic 842 on January 1, 2019. Prior to Topic 842, the Partnership accounted for these transactions under Topic 840, Leases (“Topic 840”). Lease revenue includes revenue generated from leasing equipment to customers, including re-rent revenue, and is recognized as either on a straight line basis or using the effective interest method over the length of the lease contract, if such lease is either an operating lease or finance lease, respectively. The Partnership’s sale of equipment along with certain services provided to customers is recognized under ASC Topic 606, Revenue from Contracts with Customers, (“Topic 606”), which was adopted on January 1, 2018. Prior to adoption of Topic 606, the Partnership recognized these transactions under ASC Topic 605, Revenue Recognized, and (“Topic 605”). The Partnership recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. The amount of revenue recognized reflects the consideration the Partnership expects to be entitled to in exchange for such products or services. For the years ended December 31, 2020 and 2019, the Partnership’s lease portfolio consisted of operating leases and finance leases. For operating leases, lease revenue is recognized on a straight-line basis in accordance with the terms of the lease agreement. Finance lease interest income is recorded over the term of the lease using the effective interest method. Upon the end of the lease term, if the lessee has not met the return conditions as set out in the lease, the Partnership is entitled in certain cases to additional compensation from the lessee. The Partnership’s accounting policy for recording such payments is to treat them as revenue. Gains or losses from sales of leased and off-lease equipment are recorded on a net basis in the Partnership’s Statement of Operations. Gains from the termination of leases are recognized when the lease is modified and terminated concurrently. Our leases do not contain any step-rent provisions or escalation clauses nor are lease revenues adjusted based on any index. Partnership’s accounting policy for sales and property taxes collected from the lessees are recorded in the current period as gross revenues and expenses. |
Recent Accounting Pronouncements Not Yet Adopted | In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). This standard establishes an impairment model (known as the current expected credit loss (“CECL”) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which is intended to result in a timelier recognition of losses. Under the CECL model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments, but not expected extensions or modifications) from the date of initial recognition of the financial instrument. Measurement of expected credit losses are to be based on relevant forecasts that affect collectability. The scope of financial assets within the CECL methodology is broad and includes trade receivables from certain revenue transactions and certain off-balance sheet credit exposures. Different components of the guidance require modified retrospective or prospective adoption. In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses. ASU 2018-19 clarifies that receivables arising from operating leases are not within the scope of the credit losses standard. Instead, entities would need to apply other U.S. GAAP, namely Topic 842 (Leases), to account for changes in the collectability assessment for operating leases. Other than operating lease receivables, Partnership trade receivables include receivables from finance leases and equipment sales. Under Topic 606 (Revenue from Contracts with Customers), revenue is recognized when, among other criteria, it is probable that the entity will collect the consideration to which it is entitled for goods or services transferred to a customer. At the point that finance lease receivables are recorded, they become subject to the CECL model and estimates of expected credit losses over their contractual life will be required to be recorded at inception based on historical information, current conditions, and reasonable and supportable forecasts. Trade receivables derived from equipment sales are of short duration and there is not a material difference between incurred losses and expected losses. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which amends and clarifies several provisions of Topic 326. In May 2019, the FASB issued ASU 2019-05, Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief, which amends Topic 326 to allow the fair value option to be elected for certain financial instruments upon adoption. ASU 2019-10 extended the effective date of ASU 2016-13 for the Partnership until December 15, 2022. While we continue to evaluate the new guidance, including the subsequent updates to Topic 326, we do not anticipate that adoption will have a material impact on the Partnership financial statements and related disclosures. For both the years ended December 31, 2020 and 2019, Partnership finance lease revenue subject to CECL represented less than 1% of total lease revenue. |
Other Assets | Equipment acquisition costs and deferred expenses are amortized on a straight-line basis over two-to-four year lives based on the original term of the lease and the loan, respectively. Unamortized acquisition costs and deferred expenses are charged to amortization expense when the associated leased equipment is sold. |
Long-Lived Assets | Depreciation on equipment for financial statement purposes is based on the straight-line method estimated generally over useful lives of two to five years. Once an asset comes off lease or is released, the Partnership reassesses the useful life of an asset. 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 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 then impairment exists. The amount of the impairment is determined based on the difference between the carrying value and the fair value. Fair value is determined based on estimated discounted cash flows to be generated by the asset, third party appraisals or comparable sales of similar assets, as applicable, based on asset type. Residual values are determined by management and are calculated using information from both internal and external sources, as well as other economic indicators. |
Reimbursable Expenses | Reimbursable expenses are comprised of both ongoing operational expenses and fees associated with the allocation of salaries and benefits, referred to as other LP (“other LP”) expenses. For the year ended December 31, 2020, the General Partner waived certain reimbursable expenses charged to the Partnership by CCC in connection with the administration and operation of the Partnership. CCC is not reimbursed for salary and benefit costs of control persons. Reimbursable expenses, which are charged to us by CCC in connection with our administration and operation, are allocated to us based upon several factors including, but not limited to, the number of investors, leasing volume and stage of the program. For example, if one partnership has more investors than another program sponsored by CCC, then higher amounts of expenses related to investor services, mailing and printing costs will be allocated to that partnership. Also, while a partnership is in its offering stage, higher compliance costs are allocated to it than to a program not in its offering stage, as compliance resources are utilized to review incoming investor suitability and proper documentation. Finally, lease related expenses, such as due diligence, correspondence, collection efforts and analysis staff costs, increase as programs purchase more leases, and decrease as leases terminate and equipment is sold. All of these factors contribute to CCC’s determination as to the amount of expenses to allocate to us or to other sponsored programs. CCC is not reimbursed for salary and benefit costs of control persons. For the Partnership, all reimbursable items are expensed as they are incurred. |
Forgiveness of Related Party Payables | In accordance with ASC Topic 470-50 Debt Modifications and Extinguishments |
Lease Income Receivable | Lease income receivable includes current lease income receivable net of allowances for uncollectible accounts, if any. The Partnership monitors lease income receivable to ensure timely and accurate payment by lessees. Its Lease Relations department is responsible for monitoring lease income receivable and, as necessary, resolving outstanding invoices. Lease revenue is recognized on a monthly straight-line basis which is in accordance with the terms of the lease agreement. The Partnership reviews a customer’s credit history before extending credit. When the analysis indicates that the probability of full collection is unlikely, the Partnership may establish an allowance for uncollectible lease income receivable based upon the credit risk of specific customers, historical trends and other information. The Partnership writes off its lease income receivable when it determines that it is uncollectible and all economically sensible means of recovery have been exhausted. |
Cash and Cash Equivalents | We consider cash and cash equivalents to be cash on hand and highly liquid investments with the original maturity dates of 90 days or less. At December 31, 2020, cash was held in a bank account maintained at one financial institution with a balance of approximately $35,000. Bank accounts are federally insured up to $250,000 by the FDIC. At December 31, 2020 and 2019, the total cash bank balance was approximately as follows: Balance at December 31 2020 2019 Total bank balance $ 35,000 $ 7,000 FDIC insured (35,000 ) (7,000 ) Uninsured amount $ - $ - The Partnership’s bank balances are fully insured by the FDIC. The Partnership deposits its funds with a Moody's AAA-Rated banking institution which is one of only three AAA-Rated banks listed on the New York Stock Exchange. The Partnership has not experienced any losses in such accounts, and believes it is not exposed to any significant credit risk. The amount in such accounts will fluctuate throughout 2021 due to many factors, including cash receipts, equipment acquisitions, interest rates, and distribution to limited partners. |
Income Taxes | Pursuant to the provisions of Section 701 of the Internal Revenue Code, the Partnership is not subject to federal or state income taxes. All income and losses of the Partnership are the liability of the individual partners and are allocated to the partners for inclusion in their individual tax returns. The Partnership does not have any entity-level uncertain tax positions. In addition, the Partnership believes its tax status as a pass-through entity would be sustained under U.S. Federal, state or local tax examination. The Partnership files U.S. federal and various state income tax returns and is generally subject to examination by federal, state and local income tax authorities for three years from the filing of a tax return. Taxable income differs from financial statement net income as a result of reporting certain income and expense items for tax purposes in periods other than those used for financial statement purposes, principally relating to depreciation, amortization, and lease revenue. |
Net Loss Per Equivalent Limited Partnership Unit | The net loss per equivalent limited partnership unit is computed based upon net income allocated to the limited partners and the weighted average number of equivalent units outstanding during the period. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Cash and cash equivalents | Balance at December 31 2020 2019 Total bank balance $ 35,000 $ 7,000 FDIC insured (35,000 ) (7,000 ) Uninsured amount $ - $ - |
Information Technology, Medic_2
Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Communications and Information Technology [Abstract] | |
Future minimum rentals on non-cancellable operating leases | Years Ended December 31, Amount Year ending December 31, 2021 $ 90,500 Year ending December 31, 2022 25,000 Year ending December 31, 2023 23,500 Year ending December 31, 2024 21,000 Year ending December 31, 2025 9,000 $ 169,000 |
Net investment in direct financing leases | At December 31, 2020 2019 Carrying value of lease receivable $ - $ 6,000 Estimated residual value of leased equipment (unguaranteed) - 2,000 Net investment in finance leases $ - $ 8,000 |
Finance lease risk level | Percent of Total Risk Level 2020 2019 Low -% -% Moderate-Low -% -% Moderate -% -% Moderate-High -% 100% High -% -% Net Finance lease receivable -% 100% |
Significant Customers (Tables)
Significant Customers (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Concentration | Lessees equal to or exceeding 10% of lease revenue: Years Ended December 31, 2020 2019 Alliant Techsystems, Inc. 32% 21% Automatic Data Processing 21% 12% L-3 Communications 18% 10% Vista Outdoor Inc. 12% ** Cummins, Inc. 12% 42% ** Lessees equal to or exceeding 10% of net lease income receivable: At December 31, 2020 2019 Automatic Data Processing. 46% **% Alliant Techsystems, Inc. 31% ** Cummins, Inc. **% 96% ** |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related party transactions | ENTITY RECEIVING COMPENSATION TYPE OF COMPENSATION AMOUNT INCURRED DURING 2020 AMOUNT INCURRED DURING 2019 OPERATIONAL AND SALE OR LIQUIDATION STAGES The General Partner and its Affiliates Reimbursable Expenses $ 272,000 $ 100,000 The General Partner Equipment Acquisition Fee. $ - $ - The General Partner Debt Placement Fee $ - $ - The General Partner Equipment Management Fee $ - $ - The General Partner Equipment Liquidation Fee $ - $ - The General Partner Partnership Interest $ - $ - |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Payable [Abstract] | |
Notes payable | At December 31, 2020 2019 Installment note payable to bank; interest at 4.87% due in quarterly installments of $11,897, including interest, with final payment in January 2020 - 12,000 Installment note payable to bank; interest at 5.56% due in monthly installments of $2,925, including interest, with final payment in June 2020 - 17,000 Installment note payable to bank; interest at 4.87% due in monthly installments of $1,902, including interest, with final payment in July 2020 - 6,000 Installment note payable to bank; interest at 6.28% due in quarterly installments of $722, including interest, with final payment in September 2020 - 3,000 Installment note payable to bank; interest at 5.75% due in monthly installments of $857, including interest, with final payment in November 2020 - 9,000 Installment note payable to bank; interest at 5.31% due in quarterly installments of $4,618, including interest, with final payment in January 2021 5,000 22,000 Installment note payable to bank; interest at 4.70% due in monthly installments of $1,360, including interest, with final payment in February 2021 3,000 18,000 Installment note payable to bank; interest at 5.00% due in monthly installments of $452, including interest, with final payment in November 2024 19,000 - $ 27,000 $ 87,000 |
Aggregate maturities of notes payable | Years Ended December 31, Amount 2021 $ 12,000 2022 5,000 2023 5,000 2024 5,000 $ 27,000 |
Reconciliation of Amounts Rep_2
Reconciliation of Amounts Reported For Financial Reporting Purposes To Amounts On The Federal Partnership Return (unaudited): Schedule of The tax bases of the Partnership's net assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Reconciliation Of Amounts Reported For Financial Reporting Purposes To Amounts On Federal Partnership Return | |
Tax basis of the Partnership's net assets and liabilities | Years Ended December 31, 2020 2019 Tax basis of net assets (unaudited) $ 310,522 $ 520,398 Financial statement basis of net assets (57,900 ) 48,964 Difference (unaudited) $ 368,422 $ 471,434 |
Taxable (loss) income on the Federal Partnership return (unaudited) | Years Ended December 31, 2020 2019 Net (loss) income for financial reporting purposes to taxable (loss) income $ (143,938 ) $ 62,143 (Loss) gain on sale of equipment (16,301 ) 7,113 Depreciation (15,194 ) 166,940 Unearned lease income (4,117 ) (14,270 ) Penalties 300 1,410 Bad (recovery) expense (66,232 ) 65,538 *Other 40,296 2,919 Taxable (loss) income on the Federal Partnership return (unaudited) $ (205,186 ) $ 291,793 *Other- includes financial statement adjustments that will be reflected on the tax return in the subsequent year. |
Business (Details Narrative)
Business (Details Narrative) | Dec. 31, 2020USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Working capital deficit | $ (282,000) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Total bank balance | $ 35,000 | $ 7,000 |
FDIC insured | (35,000) | (7,000) |
Uninsured amount | $ 0 | $ 0 |
Information Technology, Medic_3
Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment (Details) | Dec. 31, 2020USD ($) |
Communications and Information Technology [Abstract] | |
Year Ended December 31, 2021 | $ 90,500 |
Year Ended December 31, 2022 | 25,000 |
Year Ended December 31, 2023 | 23,500 |
Year Ended December 31, 2024 | 21,000 |
Year Ended December 31, 2025 | 9,000 |
Total | $ 169,000 |
Information Technology, Medic_4
Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment (Details 1) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Communications and Information Technology [Abstract] | ||
Carrying value of lease receivable | $ 0 | $ 6,000 |
Estimated residual value of leased equipment (unguaranteed) | 0 | 2,000 |
Net investment in finance leases | $ 0 | $ 8,000 |
Information Technology, Medic_5
Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment (Details 2) | Dec. 31, 2020 | Dec. 31, 2019 |
Communications and Information Technology [Abstract] | ||
Low | 0.00% | 0.00% |
Moderate-Low | 0.00% | 0.00% |
Moderate | 0.00% | 0.00% |
Moderate-High | 0.00% | 100.00% |
High | 0.00% | 0.00% |
Net finance lease receivable | 0.00% | 100.00% |
Information Technology, Medic_6
Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment (Details Narrative) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Communications and Information Technology [Abstract] | ||
Equipment shared | $ 2,069,000 | $ 2,213,000 |
Total shared equipment | 8,586,000 | 8,873,000 |
Debt shared | 5,000 | 51,000 |
Outstanding debt total | $ 152,000 | $ 798,000 |
Significant Customers (Details)
Significant Customers (Details) - Lease Revenue | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Alliant Techsystems, Inc. | |||
Percent lease revenue | 32.00% | 21.00% | |
Automatic Data Processing | |||
Percent lease revenue | 21.00% | 12.00% | |
L-3 Communications | |||
Percent lease revenue | 18.00% | 10.00% | |
Vista Outdoor Inc. | |||
Percent lease revenue | 12.00% | [1] | |
Cummins, Inc. | |||
Percent lease revenue | 12.00% | 42.00% | |
[1] | Represents less than 10% of lease revenue. |
Significant Customers (Details
Significant Customers (Details 1) - Lease Income Receivable | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | |||
Automatic Data Processing | ||||
Percent lease income receivable | 46.00% | [1] | ||
Alliant Techsystems, Inc. | ||||
Percent lease income receivable | 31.00% | [1] | ||
Cummins, Inc. | ||||
Percent lease income receivable | [1] | 96.00% | ||
[1] | Other- includes financial statement adjustments that will be reflected on the tax return in the subsequent year. |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transactions [Abstract] | ||
Reimbursable expenses | $ 272,000 | $ 100,000 |
Equipment acquisition fee | 0 | 0 |
Debt placement fee | 0 | 0 |
Equipment management fee | 0 | 0 |
Equipment liquidation fee | 0 | 0 |
Partnership interest | $ 0 | $ 0 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Notes payable | $ 27,000 | $ 87,000 |
Note 1 | ||
Notes payable description | Installment note payable to bank; interest at 4.87% due in quarterly installments of $11,897, including interest, with final payment in January 2020 | |
Notes payable | $ 0 | 12,000 |
Note 2 | ||
Notes payable description | Installment note payable to bank; interest at 5.56% due in monthly installments of $2,925, including interest, with final payment in June 2020 | |
Notes payable | $ 0 | 17,000 |
Note 3 | ||
Notes payable description | Installment note payable to bank; interest at 4.87% due in monthly installments of $1,902, including interest, with final payment in July 2020 | |
Notes payable | $ 0 | 6,000 |
Note 4 | ||
Notes payable description | Installment note payable to bank; interest at 6.28% due in quarterly installments of $722, including interest, with final payment in September 2020 | |
Notes payable | $ 0 | 3,000 |
Note 5 | ||
Notes payable description | Installment note payable to bank; interest at 5.75% due in monthly installments of $857, including interest, with final payment in November 2020 | |
Notes payable | $ 0 | 9,000 |
Note 6 | ||
Notes payable description | Installment note payable to bank; interest at 5.31% due in quarterly installments of $4,618, including interest, with final payment in January 2021 | |
Notes payable | $ 5,000 | 22,000 |
Note 7 | ||
Notes payable description | Installment note payable to bank; interest at 4.70% due in monthly installments of $1,360, including interest, with final payment in February 2021 | |
Notes payable | $ 3,000 | 18,000 |
Note 8 | ||
Notes payable description | Installment note payable to bank; interest at 5.00% due in monthly installments of $452, including interest, with final payment in November 2024 | |
Notes payable | $ 19,000 | $ 0 |
Notes Payable (Details 1)
Notes Payable (Details 1) | Dec. 31, 2020USD ($) |
Notes Payable [Abstract] | |
2021 | $ 12,000 |
2022 | 5,000 |
2023 | 5,000 |
2024 | 5,000 |
Long-term debt | $ 27,000 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | ||
Write-off of fully depreciated equipment | $ 0 | $ 0 |
Reconciliation of Amounts Rep_3
Reconciliation of Amounts Reported For Financial Reporting Purposes To Amounts On The Federal Partnership Return (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Reconciliation Of Amounts Reported For Financial Reporting Purposes To Amounts On Federal Partnership Return | ||
Tax basis of net assets (unaudited) | $ 310,522 | $ 520,398 |
Financial statement basis of net assets | (57,900) | 48,964 |
Difference (unaudited) | $ 368,422 | $ 471,434 |
Reconciliation of Amounts Rep_4
Reconciliation of Amounts Reported For Financial Reporting Purposes To Amounts On The Federal Partnership Return (Details 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Reconciliation Of Amounts Reported For Financial Reporting Purposes To Amounts On Federal Partnership Return | |||
Net (loss) income for financial reporting purposes to taxable (loss) income | $ (143,938) | $ 62,143 | |
(Loss) gain on sale of equipment | (16,301) | 7,113 | |
Depreciation | (15,194) | 166,940 | |
Unearned lease income | (4,117) | (14,270) | |
Penalties | 300 | 1,410 | |
Bad (recovery) expense | (66,232) | 65,538 | |
Other | [1] | 40,296 | 2,919 |
Taxable (loss) income on the Federal Partnership return (unaudited) | $ (205,186) | $ 291,793 | |
[1] | Other- includes financial statement adjustments that will be reflected on the tax return in the subsequent year. |