Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 14, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | SQN Asset Income Fund V, L.P. | |
Entity Central Index Key | 1,672,773 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 1,837,078.93 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,018 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 3,258,438 | $ 2,036,337 |
Investments in finance leases, net | 7,236,617 | 2,032,092 |
Investments in equipment subject to operating leases, net | 151,410 | 223,102 |
Collateralized loans receivable, including accrued interest of $973 and $28,997 | 2,053,057 | 3,880,331 |
Other assets | 42,777 | 28,061 |
Total Assets | 12,742,299 | 8,199,923 |
Liabilities: | ||
Accounts payable and accrued liabilities | 248,586 | 103,158 |
Distributions payable to Limited Partners | 321,871 | 181,062 |
Distributions payable to General Partner | 12,880 | 5,102 |
Deferred revenue | 137,161 | 49,619 |
Total Liabilities | 720,498 | 338,941 |
Partners' Equity (Deficit): | ||
Limited Partners | 12,050,413 | 7,880,248 |
General Partner | (28,612) | (19,266) |
Total Equity | 12,021,801 | 7,860,982 |
Total Liabilities and Partners' Equity | $ 12,742,299 | $ 8,199,923 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accrued interest | $ 973 | $ 28,997 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue | ||||
Rental income | $ 27,256 | $ 27,256 | $ 81,768 | $ 81,768 |
Finance income | 278,168 | 16,475 | 629,057 | 55,186 |
Interest income | 88,820 | 20,233 | 165,830 | 21,055 |
Other income | 16,618 | 21,633 | 17,448 | 22,033 |
Total Revenue | 410,862 | 85,597 | 894,103 | 180,042 |
Expenses | ||||
Management fees - Investment Manager | 187,500 | 187,500 | 562,500 | 562,500 |
Depreciation | 23,912 | 23,911 | 71,692 | 71,690 |
Professional fees | 111,867 | 33,076 | 248,912 | 165,852 |
Administration expense | 72,914 | 33,175 | 157,375 | 128,254 |
Other expenses | 14,514 | 10,414 | 15,114 | |
Total Expenses | 396,193 | 292,176 | 1,050,893 | 943,410 |
Net income (loss) | 14,669 | (206,579) | (156,790) | (763,368) |
Net income (loss) attributable to the Partnership | ||||
Limited Partners | 14,522 | (204,513) | (155,222) | (755,734) |
General Partner | 147 | (2,066) | (1,568) | (7,634) |
Net income (loss) attributable to the Partnership | $ 14,669 | $ (206,579) | $ (156,790) | $ (763,368) |
Weighted average number of limited partnership interests outstanding | 1,593,859.92 | 867,061.69 | 849,621.19 | 352,244.14 |
Net income (loss) attributable to Limited Partners per weighted average number of limited partnership interests outstanding | $ 0.01 | $ (0.24) | $ (0.18) | $ (2.15) |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Changes in Partners' Equity (Deficit) (Unaudited) - 9 months ended Sep. 30, 2018 - USD ($) | Total | General Partner [Member] | Limited Partner [Member] |
Balance at Dec. 31, 2017 | $ 7,860,982 | $ (19,266) | $ 7,880,248 |
Balance, shares at Dec. 31, 2017 | 1,137,300.24 | ||
Partners' capital contributions | 5,620,687 | $ 5,620,687 | |
Partners' capital contributions, shares | 562,068.69 | ||
Offering expenses | (121,237) | $ (121,237) | |
Underwriting fees | (391,384) | (391,384) | |
Net loss | (156,790) | (1,568) | (155,222) |
Distributions to partners | (785,572) | (7,778) | (777,794) |
Redemptions to partners | (4,885) | $ (4,885) | |
Redemptions to partners, share | (536.84) | ||
Balance at Sep. 30, 2018 | $ 12,021,801 | $ (28,612) | $ (12,050,413) |
Balance, shares at Sep. 30, 2018 | 1,698,832.09 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (156,790) | $ (763,368) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Finance income | (629,057) | (55,186) |
Accrued interest income | (165,785) | (20,979) |
Depreciation | 71,692 | 71,690 |
Change in operating assets and liabilities: | ||
Minimum rents receivable | 1,462,482 | 261,440 |
Accrued interest income | 202,106 | 20,979 |
Other assets | (14,716) | (22,013) |
Accounts payable and accrued liabilities | 145,428 | (47,866) |
Deferred revenue | 87,542 | 24,153 |
Net cash provided by (used in) operating activities | 1,002,902 | (531,150) |
Cash flows from investing activities: | ||
Purchase of finance leases | (6,037,950) | |
Cash paid for collateralized loans receivable | (5,537,538) | (1,361,156) |
Cash received from collateralized loans receivable | 3,328,491 | 238,392 |
Proceeds from sale of collateralized loans receivable | 4,000,000 | |
Net cash used in investing activities | (4,246,997) | (1,122,764) |
Cash flows from financing activities: | ||
Repayments of loan payable | (1,000) | |
Cash received from Limited Partner capital contributions | 5,537,450 | 6,966,299 |
Cash paid for Limited Partner distributions | (636,985) | (186,508) |
Cash paid for Limited Partner redemptions | (4,885) | (1,000) |
Cash paid for underwriting fees | (308,147) | (280,864) |
Cash paid for offering costs | (121,237) | (369,506) |
Net cash provided by financing activities | 4,466,196 | 6,127,421 |
Net increase in cash and cash equivalents | 1,222,101 | 4,473,507 |
Cash and cash equivalents, beginning of period | 2,036,337 | 1,180,918 |
Cash and cash equivalents, end of period | 3,258,438 | 5,654,425 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Offering expenses paid by Investment Manager | 121,237 | 369,506 |
Units issued as underwriting fee discount | 83,237 | 217,459 |
Distributions payable to General Partner | 7,778 | 2,890 |
Distributions payable to Limited Partners | 140,809 | 102,550 |
Restricted cash release | $ 70,200 |
Organization and Nature of Oper
Organization and Nature of Operations | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Operations | 1. Organization and Nature of Operations. Organization Nature of Operations – The General Partner of the Partnership is SQN AIF V GP, LLC (the “General Partner”), a wholly-owned subsidiary of the Partnership’s Investment Manager. Both the Partnership’s General Partner and its Investment Manager are Delaware limited liability companies. The General Partner manages and controls the day to day activities and operations of the Partnership, pursuant to the terms of the Limited Partnership Agreement. The General Partner paid an aggregate capital contribution of $100 for a 1% interest in the Partnership’s income, losses and distributions. The Investment Manager makes all investment decisions and manages the investment portfolio of the Partnership. The Partnership’s income, losses and distributions are allocated 99% to the Limited Partners and 1% to the General Partner until the Limited Partners have received total distributions equal to their capital contributions plus an 8% per year, compounded annually, cumulative return on their capital contributions. After such time, all income, losses and distributable cash will be allocated 80% to the Limited Partners and 20% to the General Partner. The Partnership expects to conduct its activities for at least six years and divide the Partnership’s life into three distinct stages: (i) the Offering Period, (ii) the Operating Period and (iii) the Liquidation Period. The Offering Period began on August 11, 2016, will terminate no later than two years after that date, unless extended by the General Partner, from time to time, in its sole discretion, by up to an additional 12 months. On August 3, 2018, the General Partner extended the Offering Period by an additional 12 months to August 11, 2019. The Operating Period commenced on October 3, 2016, the date of the Partnership’s initial closing, and will last for four years unless extended at the sole discretion of the General Partner. During the Operating Period, the Partnership will invest most of the net proceeds from its offering in business-essential, revenue-producing (or cost-saving) equipment, other physical assets with substantial economic lives and, in many cases, associated revenue streams and project financings. The Liquidation Period, which follows the conclusion of the Operating Period, is the period in which the Partnership will sell its assets in the ordinary course of business and will last two years, unless it is extended, at the sole discretion of the General Partner. SQN Securities, LLC (“Securities”), a Delaware limited liability company, is affiliated with the General Partner. Securities will act initially as the selling agent for the offering of the units. The units are offered on a “best efforts,” “minimum-maximum” basis. During the Operating Period, the Partnership plans to make quarterly distributions of cash to the Limited Partners, if, in the opinion of the Partnership’s Investment Manager, such distributions are in the Partnership’s best interests. Therefore, the amount and rate of cash distributions could vary and are not guaranteed. The targeted distribution rate is 6.0% annually, paid quarterly as 1.5%, of each Limited Partner’s capital contribution (pro-rated to the date of admission for each Limited Partner). Since June 30, 2017, the Partnership’s distribution rate has been 6.5% annually, paid quarterly at 1.625%, of capital contributions. On March 31, 2018, the distribution rate increased to 7.0% annually, paid quarterly at 1.75%, of capital contributions. On June 30, 2018, the distribution rate increased to 7.5% annually, paid quarterly at 1.88%, of capital contributions. On September 30, 2018, the distribution rate increased to 8.0% annually, paid quarterly at 2.00%, of capital contributions. During the nine months ended September 30, 2018, the Partnership declared and accrued quarterly distribution to its Limited Partners totaling $777,794 which resulted in a distributions payable to Limited Partners of $321,871 at September 30, 2018. At September 30, 2018, the Partnership declared and accrued a distribution of $7,778, for distributions due to the General Partner which resulted in distributions payable to the General Partner of $12,880 at September 30, 2018. On September 11, 2018, the Partnership formed a special purpose entity SQN Lifestyle Leasing, LLC (“Lifestyle Leasing”), a limited liability company registered in the state of Delaware which is wholly owned by the Partnership. From August 11, 2016 through September 30, 2018, the Partnership admitted 391 Limited Partners with total capital contributions of $17,003,304 resulting in the sale of 1,700,330.47 Units. The Partnership received cash contributions of $16,447,048 and applied $556,256 which would have otherwise been paid as sales commission to the purchase of 55,626 additional Units. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies. Basis of Presentation Principles of Consolidation Variable interests are investments or other interests that absorb portions of a variable interest entity’s (“VIE”) expected losses or receive portions of the Partnership’s expected residual returns and are contractual, ownership, or other pecuniary interests in a VIE that change with changes in the fair value of the VIE. An entity is considered to be a VIE if any of the following conditions exist. (1) The total equity investment at risk is insufficient to permit the legal entity to finance its activities without additional subordinated financial support; or (2) As a group, the holders of equity investments at risk lack any of the three characteristics of a controlling financial interest: (a) The direct or indirect ability through voting or similar rights to make decisions that have a significant effect on the success of the legal entity. The equity holders at risk are deemed to lack this characteristic if: i. the voting rights of some investors are not proportional to their obligation to absorb the expected losses of the legal entity or rights to receive expected residual returns; and ii. substantially all of the legal entity’s activities are either involved with or are conducted on behalf of an investor that has disproportionately few voting rights (b) The obligation to absorb the expected losses of the legal entity or (c) The right to receive the expected residual returns of the legal entity. An entity that is determined to be a VIE is required to be condensed consolidated by its primary beneficiary. The primary beneficiary of a VIE is determined to be the party that has both the power to direct the activities that most significantly affect the VIE’s economic performance (“Power”) and the obligation to absorb losses of, or the right to receive benefits from the VIE, that could potentially be significant to the VIE (“Benefits”). The determination of whether a reporting entity is the primary beneficiary involves complex and subjective analyses. Use of Estimates Cash and Cash Equivalents The Partnership’s cash and cash equivalents are held principally at one financial institution and at times may exceed federally insured limits. The Partnership has placed these funds in a full service commercial financial institution in order to minimize risk relating to exceeding insured limits. Credit Risk Asset Impairments Lease Classification and Revenue Recognition The Partnership leases equipment to third parties and each such lease may be classified as either a finance lease or an operating lease. Initial direct costs are capitalized and amortized over the term of the related lease for a finance lease. For an operating lease, initial direct costs are included as a component of the cost of the equipment and depreciated. For finance leases, the Partnership records, at lease inception, the total minimum lease payments receivable from the lessee, the estimated unguaranteed residual value of the equipment upon lease termination, the initial direct costs, if any, related to the lease and the related unearned income. Unearned income represents the difference between the sum of the minimum lease payments receivable plus the estimated unguaranteed residual value, minus the cost of the leased equipment. Unearned income is recognized as finance income over the term of the lease using the effective interest rate method. For operating leases, rental income is recognized on the straight line basis over the lease term. Billed and uncollected operating lease receivables will be included in accounts receivable. Accounts receivable are stated at their estimated net realizable value. Rental income received in advance is the difference between the timing of the cash payments and the income recognized on the straight line basis. The investment committee of the Investment Manager approves each new equipment lease, financing transaction, and lease acquisition. As part of this process it determines the unguaranteed residual value, if any, to be used once the acquisition has been approved. The factors considered in determining the unguaranteed residual value include, but are not limited to, the creditworthiness of the potential lessee, the type of equipment being considered, how the equipment is integrated into the potential lessees’ business, the length of the lease the industry in which the potential lessee operates and the secondary market value of the equipment. Unguaranteed residual values are reviewed for impairment in accordance with the Partnership’s policy relating to impairment review. The residual value assumes, among other things, that the asset will be utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded, and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. The residual value is calculated using information from various external sources, such as trade publications, auction data, equipment dealers, wholesalers and industry experts, as well as inspection of the physical asset and other economic indicators. Finance Lease Receivables and Allowance for Doubtful Lease, Notes and Loan Accounts Equipment Notes and Loans Receivable Income Taxes The Partnership has adopted the provisions of Financial Accounting Standards Board’s (“FASB”) Topic 740, Accounting for Uncertainty in Income Taxes. Per Share Data Foreign Currency Transactions Depreciation Recent Accounting Pronouncements In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In February 2016, the FASB issued new guidance to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements, ASU 2016-02, Leases (Topic 842): Amendments to the FASB Accounting Standards Codification In May 2014, the FASB issued ASU No. 2014-09 , Revenue from Contracts with Customers (Topic 606) , Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the condensed interim consolidated financial statements. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 3. Related Party Transactions. The General Partner is responsible for the operations of the Partnership and the Investment Manager makes all investment decisions and manages the investment portfolio of the Partnership. The Partnership reimburses the General Partner for actual incurred organizational and offering costs not to exceed 1.5% of all capital contributions received by the Partnership. Because organizational and offering expenses will be paid, as and to the extent they are incurred, organizational and offering expenses may be drawn disproportionately to the gross proceeds of each closing. The General Partner also has a promotional interest in the Partnership equal to 20% of all distributed distributable cash, after the Partnership has provided an 8% cumulative return, compounded annually, to the Limited Partners on their capital contributions. The General Partner has a 1% interest in the profits, losses and distributions of the Partnership. The General Partner will receive 1% of all distributed distributable cash, which was accrued at September 30, 2018 and 2017. The Partnership pays the Investment Manager during the Offering Period, Operating Period and the Liquidation Period a management fee equal to the greater of, (i) 2.5% per annum of the aggregate offering proceeds, payable monthly in advance or (ii) $62,500 per month. For the three months ended September 30, 2018 and 2017, the Partnership paid $187,500 in management fee expense to the Investment Manager. For the nine months ended September 30, 2018 and 2017, the Partnership paid $562,500 in management fee expense to the Investment Manager. The Partnership pays the Investment Manager during the Operating Period a structuring fee in an amount equal to 1.5% of each cash investment made, including reinvestments, payable on the date each such investment is made. For the nine months ended September 30, 2018 and 2017, the Partnership paid $109,976 and $20,022, respectively, of structuring fees to the Investment Manager. On December 15, 2017, the Partnership entered into two assignment and purchase agreements with Arboretum Core Asset Finance Fund, L.P., a Delaware limited partnership, a fund managed by the Investment Manager, to purchase two seasoned and performing promissory notes for total cash of $130,559. The funds from the promissory notes with the borrower were used to acquire point-of-sale systems for multiple restaurants. The two promissory notes will be paid in 13 monthly installments of principal and interest of $7,943 and $2,870, respectively. The notes accrue interest at a rate of 18% per annum and mature on January 1, 2019. The promissory notes are secured by a first priority lien with respect to the equipment. For the three and nine months ended September 30, 2018, the promissory notes earned interest income of $1,808 and $8,480, respectively. Securities is a Delaware limited liability company and is a subsidiary of an affiliate of the Partnership’s Investment Manager. Securities in its capacity as the Partnership’s selling agent receives an underwriting fee of 2% of the gross proceeds from Limited Partners’ capital contributions (excluding proceeds, if any, the Partnership receives from the sale of the Partnership’s Units to the General Partner or its affiliates). While Securities is initially acting as the Partnership’s exclusive selling agent, the Partnership may engage additional selling agents in the future. For the nine months ended September 30, 2018 and the year ended December 31, 2017, the Partnership incurred the following transactions with Securities: September 30, 2018 December 31, 2017 (unaudited) Balance - beginning of period $ — $ — Underwriting fees earned by Securities 110,349 154,917 Payments by the Partnership to Securities (110,349 ) (154,917 ) Balance - end of period $ — $ — For the nine months ended September 30, 2018 and 2017, the Partnership incurred the following underwriting fee transactions: September 30, 2018 September 30, 2017 (unaudited) (unaudited) Underwriting discount incurred by the Partnership $ 83,237 $ 217,459 Underwriting fees earned by Securities 110,349 137,922 Fees paid to outside brokers 197,798 142,942 Total underwriting fees $ 391,384 $ 498,323 |
Investments in Finance Leases
Investments in Finance Leases | 9 Months Ended |
Sep. 30, 2018 | |
Leases, Capital [Abstract] | |
Investments in Finance Leases | 4. Investments in Finance Leases. At September 30, 2018 and December 31, 2017, net investments in finance leases consisted of the following: September 30, 2018 December 31, 2017 (unaudited) Minimum rents receivable $ 7,990,286 $ 2,422,090 Estimated unguaranteed residual value 662,066 128,970 Unearned income (1,415,735 ) (518,968 ) Total $ 7,236,617 $ 2,032,092 Computer Equipment On October 6, 2016, the Partnership funded a lease facility for $680,020 of Apple computers with a private school in New York City. The finance lease requires 36 monthly payments of $17,402. The lessee made a down payment of $102,002 and the remainder amount was funded by the Partnership. The lease is secured by ownership of the equipment. At September 30, 2018, there were no significant changes to this lease. Furniture and Kitchen Equipment On October 21, 2016, the Partnership funded a finance lease for $357,020 of an assortment of school furniture and kitchen equipment with a public charter school in New Jersey. The finance lease requires 36 monthly payments of $11,647 with the first and last payments due in advance. The lease is secured by a first priority lien against the equipment. At September 30, 2018, there were no significant changes to this lease. Agricultural Equipment On November 9, 2017, the Partnership funded a lease facility for $406,456 of agricultural equipment and supplies with a company based in Illinois. The finance lease requires 36 monthly payments of $13,819 with the first and last payments due in advance. On February 9, 2018, the Partnership funded a second lease facility for $48,850 of agricultural equipment and supplies with the company based in Illinois. The finance lease requires 36 monthly payments of $1,661 with the first and last payments due in advance. On April 17, 2018, the Partnership funded a third lease facility for $44,380 of agricultural equipment and supplies with the company based in Illinois. The finance lease requires 36 monthly payments of $1,509 with the first and last payments due in advance. The leases are secured by a first priority lien against the agricultural equipment and supplies and a personal guarantee from the company’s CEO. At September 30, 2018, there were no significant changes to these leases. Infrastructure Equipment On December 4, 2017, the Partnership entered into a lease facility for $940,000 of railcar movers with a company based in Missouri. The finance lease requires 60 monthly payments of $16,468 with the first and last payments due in advance, and an additional final payment of $350,709. The lease is secured by a first priority lien against the railcar movers. At September 30, 2018, there were no significant changes to this lease. On June 29, 2018, the Partnership entered into a lease facility for $1,199,520 for water pumps based in North Dakota. The finance lease requires 48 monthly payments of $31,902 with the first and last payments due in advance. The lease is secured by a first priority lien against the water pumps. At September 30, 2018, there were no significant changes to this lease. Fabrication Equipment On January 18, 2018, the Partnership entered into a lease facility for $2,188,377 of fabrication equipment with a company based in Texas. The lease requires 42 monthly payments of $57,199 with the first and last payments due in advance. The lease is secured by a first priority lien against the fabrication equipment. The lease was expected to commence on the first day of the calendar quarter following final funding, and the company has been paying pre-commencement rents to the Partnership. On January 30, 2018, February 14, 2018 and on March 16, 2018, the Partnership advanced $1,079,895, $647,122 and $349,428, respectively, under this lease facility. On September 21, 2018, the Partnership issued a Notice of Default letter to the company and on October 18, 2018, the Partnership issued a Commencement of Lease and Demand for Payment letter to the company. In November 2018, the Partnership entered into a forbearance agreement with the company, whereby the company will pay the outstanding October and November interim rent payments and then beginning in December 2018, they will pay a forbearance fee of $25,000 per month for three months while the company undergoes an internal restructuring. The Investment Manager is currently evaluating several options with regards to the outstanding balance of this lease. Virtual Office Software Equipment On February 5, 2018, the Partnership entered into a lease facility for $245,219 of virtual office software and equipment with a company based in Florida. The lease requires 24 monthly payments of $12,020 with the first and last payments due in advance. The lease is secured by a first priority lien against the virtual office software and equipment. On February 5, 2018, the Partnership advanced $245,219 under this lease facility. At September 30, 2018, there were no significant changes to this lease. Education and Tourism Equipment On February 12, 2018, the Partnership entered into a lease facility for up to $1,500,000 of educational multimedia content equipment with a global company. The lease is secured by a first priority lien against the educational multimedia content equipment. On February 14, 2018, the Partnership advanced $1,015,720 as equipment lease schedule 1 (“Schedule 1”) under this lease facility. The Schedule 1 lease requires 36 monthly payments of $33,402 with the first payment due in advance, commencing on March 1, 2018. On June 29, 2018, the Partnership amended and restated the above lease facility and Schedule 1 to $1,175,720 and advanced an additional $160,000 under the amended and restated lease facility. The amended and restated Schedule 1 lease requires 32 monthly payments of $39,212 and commenced on July 1, 2018. Kitchen Equipment On March 9, 2018, the Partnership entered into a lease facility for $88,233 of restaurant kitchen equipment with a company based in Pennsylvania. The lease required 42 monthly payments of $2,669 with the first and last payments due in advance. The lease was secured by a first priority lien against the restaurant kitchen equipment and a corporate guarantee of an affiliated company. On March 13, 2018, the Partnership advanced $88,233 under this lease facility. On May 11, 2018, the Partnership received cash of $99,162 as total payoff of the finance lease. The finance lease had a net book value of $82,674 resulting in an increase in finance income of $16,488. Information Technology Equipment On April 3, 2018, the Partnership funded a lease facility for $390,573 of IT server equipment with a company based in California. The finance lease requires 36 monthly payments of $13,444 with the first payment due in advance. The lease is secured by a first priority lien against the IT server equipment. At September 30, 2018, there were no significant changes to this lease. Medical Equipment On June 26, 2018, the Partnership entered into a lease facility for $673,706 of electrosurgical fiber, manufacturing, and testing equipment with a company based in Massachusetts. The lease is secured by a first priority lien against the equipment and a corporate guarantee of the parent company of the lessee. On June 26, 2018, the Partnership advanced a total of $455,749 as equipment lease schedule 1 and schedule 2 under this lease facility. On August 2, 2018 and September 26, 2018, the Partnership advanced a total of $71,361 and $35,680 as additional funding under equipment lease schedule 1. The lease schedule 1 requires 42 monthly payments of $10,711 with the first and last payment due upon commencement, commencing on October 1, 2018. As of September 30, 2018, the lease schedule 1 is fully funded. The lease schedule 2 requires 42 monthly payments of $9,513 with the first and last payment due upon commencement, commencing no later than January 1, 2019. The company has been paying pre-commencement rents to the Partnership. |
Investment in Equipment Subject
Investment in Equipment Subject to Operating Leases | 9 Months Ended |
Sep. 30, 2018 | |
Leases [Abstract] | |
Investment in Equipment Subject to Operating Leases | 5. Investment in Equipment Subject to Operating Leases. On October 18, 2016, the Partnership funded a lease facility for $318,882 for 16 pizza ovens to five separate lessees. Each lease has a 36 month term with various monthly payments. The lease is secured by ownership of the equipment and by a corporate guarantee of the parent of the lessees. The composition of the equipment subject to operating leases of the Partnership as of September 30, 2018 is as follows: Description Cost Basis Accumulated Depreciation Net Book Value (unaudited) (unaudited) (unaudited) Food equipment $ 334,826 $ 183,416 $ 151,410 $ 334,826 $ 183,416 $ 151,410 The composition of the equipment subject to operating leases of the Partnership as of December 31, 2017 is as follows: Description Cost Basis Accumulated Depreciation Net Book Value Food equipment $ 334,826 $ 111,724 $ 223,102 $ 334,826 $ 111,724 $ 223,102 Depreciation expense for the three and nine months ended September 30, 2018 was $23,912 and $71,692, respectively. |
Collateralized Loans Receivable
Collateralized Loans Receivable | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Collateralized Loans Receivable | 6. Collateralized Loans Receivable. On June 26, 2017, the Partnership entered into a Commercial Finance Agreement (“CFA”) with a borrower to provide secured financing for $1,184,850 of warehouse racking equipment. The CFA is secured by the racking equipment, and accrues interest at a rate of 9% per annum and matures on June 26, 2020. The borrower will make 36 monthly payments as follows: one payment of $39,083, 11 monthly payments of $69,498 and 24 monthly payments of $20,222. In connection with the CFA, on June 26, 2017, the Partnership advanced $689,552 to the vendor as a progress payment for the equipment. On July 31, 2017, the Partnership advanced $495,298 to the vendor as the final payment for the equipment. For the three and nine months ended September 30, 2018, the CFA earned interest income of $7,362 and $28,889, respectively. On June 26, 2017, the Partnership entered into a loan agreement with a borrower to refinance the borrower’s debt. In connection with the refinancing, the Partnership received a promissory note from the borrower in the amount of $150,000. The note accrues interest at a rate of 12% per annum and matures on June 26, 2021. The promissory note will be paid through 48 monthly installments of principal and interest of $3,931. The promissory note is secured by a first priority security interest in all of the borrower’s assets and personal guarantees of the borrower’s principals as well as a corporate guarantee of an affiliate of the borrower. For the three and nine months ended September 30, 2018, the promissory note earned interest income of $2,657 and $8,535, respectively. On November 7, 2017, the Partnership entered into a loan agreement with a borrower to provide short term bridge financing, which funds were used to acquire the rights, title, and interest in an asset backed equipment loan (the “Underlying Loan”). In connection with the loan agreement, the Partnership received a promissory note from the borrower in the amount of $2,800,000. The note accrued interest at a rate of 1.5% per month for the first 30 days and 1.25% per month thereafter, and matured on February 7, 2018. The promissory note was paid in one monthly installment of interest of $42,000 for the first 30 days and two monthly installments of $35,000 thereafter. The promissory note was secured by (i) a first priority security interest in all the borrower’s right, title and interest in the Underlying Loan and the proceeds thereof; (ii) a first priority security interest in all of borrower’s right, title and interest in an unrelated, performing asset backed loan and the equipment related thereto; and (iii) a first priority security interest in borrower’s 100% membership interests in the special purpose entity that holds the Underlying Loan. For the three months ended March 31, 2018, the promissory note earned interest income of $42,903. During the year ended December 31, 2017, the Partnership received a payment of $42,000. On January 5, 2018, the Partnership received a payment of $42,000. On February 6, 2018, the Partnership received cash proceeds of $2,828,000 as payment in full of the asset backed equipment loan. On June 29, 2018, the Partnership entered into a loan agreement with a borrower to provide financing in an amount up to $7,500,000 to finance a food production facility in Georgia. The loan facility is structured as two tranches: Tranche I: $5,500,000 was funded on July 5, 2018. Tranche II: Up to $2,000,000 is available at lender’s discretion subject to the borrower achieving certain milestones. The loan facility is secured by a first priority security interest in all of the borrower’s assets. In connection with the Tranche I loan, the Partnership received three promissory notes from the borrower in the amount of $1,500,000, $2,000,000 and $2,000,000 respectively. On July 5, 2018, the Partnership funded $5,500,000 for the Tranche I loan. The Tranche I loan accrues interest at a rate of 12.75% plus 3 month LIBOR with a floor of 1.5% and matures on June 30, 2021. The Tranche I loan requires 18 monthly interest only payments upon commencement (first 12 monthly interest payments to be paid in cash at 11% and the remainder to be paid in kind (“PIK”) by adding such PIK interest to the principal balance and 6 monthly interest payments to be paid in cash) and 18 monthly payment of principal and interest payment with monthly principal paydowns of $150,000. Upon maturity of the Tranche I loan, the borrower will make a final balloon payment of approximately $3,029,000 ($2,900,000 principal plus accrued PIK interest). On June 29, 2018, the Partnership entered into an assignment agreement with a third party and sold $3,000,000 of the Tranche I loan, effective July 5, 2018, and sold $1,000,000 of the Tranche I loan, effective on or about September 1, 2018. On July 5, 2018, the Partnership returned two promissory notes to the borrower in the amount of $2,000,000 and $2,000,000 respectively and the borrower reissued one promissory note to the Partnership in the amount of $1,000,000 and one promissory note to the third party in the amount of $3,000,000. On July 5, 2018 and August 31, 2018, the Partnership received cash of $3,000,000 and $1,000,000, respectively, from the third party for the sale of those promissory notes. For the three and nine months ended September 30, 2018, the $1,500,000 promissory note earned interest income of $54,812. The future principal maturities of the Partnership’s collateralized loans receivable at September 30, 2018 are as follows: Periods ending September 30, (unaudited) 2019 $ 303,385 2020 567,918 2021 1,180,781 2022 — 2023 — Thereafter — Total $ 2,052,084 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Investments, All Other Investments [Abstract] | |
Fair Value of Financial Instruments | 7. Fair Value of Financial Instruments The Partnership’s carrying value of cash and cash equivalents, accounts payable and accrued liabilities, and other liabilities, approximate fair value due to their short term until maturities. As of September 30, 2018, the Partnership evaluated the carrying values of its financial instruments and they approximate fair value. |
Indemnifications
Indemnifications | 9 Months Ended |
Sep. 30, 2018 | |
Indemnifications | |
Indemnifications | 8. Indemnifications The Partnership enters into contracts that contain a variety of indemnifications. The Partnership’s maximum exposure under these arrangements is not known. In the normal course of business, the Partnership enters into contracts of various types, including lease contracts, contracts for the sale or purchase of lease assets, loan agreements and management contracts. It is prevalent industry practice for most contracts of any significant value to include provisions that each of the contracting parties, in addition to assuming liability for breaches of the representations, warranties, and covenants that are part of the underlying contractual obligations, to also assume an obligation to indemnify and hold the other contractual party harmless for such breaches, and for harm caused by such party’s gross negligence and willful misconduct, including, in certain instances, certain costs and expenses arising from the contract. Generally, to the extent these contracts are performed in the ordinary course of business under the reasonable business judgment of the General Partner and the Investment Manager, no liability will arise as a result of these provisions. The General Partner and Investment Manager knows of no facts or circumstances that would make the Partnership’s contractual commitments outside standard mutual covenants applicable to commercial transactions between businesses. Accordingly, the Partnership believes that these indemnification obligations are made in the ordinary course of business as part of standard commercial and industry practice, and that any potential liability under the Partnership’s similar commitments is remote. Should any such indemnification obligation become payable, the Partnership would separately record and/or disclose such liability in accordance with U.S. GAAP. |
Business Concentrations
Business Concentrations | 9 Months Ended |
Sep. 30, 2018 | |
Risks and Uncertainties [Abstract] | |
Business Concentrations | 9. Business Concentrations For the nine months ended September 30, 2018 and 2017, the Partnership had one lessee which accounted for approximately 100% of the Partnership’s rental income derived from operating leases. For the nine months ended September 30, 2018, the Partnership had three lessees which accounted for approximately 43%, 12%, and 12% of the Partnership’s income derived from finance leases. For the nine months ended September 30, 2017, the Partnership had two leases which accounted for approximately 61% and 39% of the Partnership’s income derived from finance leases. For the nine months ended September 30, 2018, the Partnership had three promissory notes which accounted for approximately 46%, 26% and 17% of the Partnership’s interest income derived from collateralized loans receivable. For the nine months ended September 30, 2017, the Partnership had two loans which accounted for approximately 83% and 17% of the Partnership’s interest income derived from collateralized loans receivable. At September 30, 2018 and 2017, the Partnership had one lessee which accounted for approximately 100% of the Partnership’s investment in operating leases. At September 30, 2018, the Partnership had four lessees which accounted for approximately 31%, 16%, 14% and 12% of the Partnership’s investment in finance leases. At September 30, 2017, the Partnership had two lessees which accounted for approximately 63% and 37% of the Partnership’s investment in finance leases. At September 30, 2018, the Partnership had two borrowers which accounted for approximately 74% and 19% of the Partnership’s investment in collateralized loans receivable. At September 30, 2017, the Partnership had two borrowers which accounted for approximately 87% and 13% of the Partnership’s investment in collateralized loans receivable. |
Geographic Information
Geographic Information | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Geographic Information | 10. Geographic Information Geographic information for revenue for the three months ended September 30, 2018 and 2017 was as follows: Three Months Ended September 30, 2018 United States Total (unaudited) (unaudited) Revenue: Rental income $ 27,256 $ 27,256 Finance income $ 278,168 $ 278,168 Interest income $ 88,820 $ 88,820 Other income $ 16,618 $ 16,618 Three Months Ended September 30, 2017 United States Total (unaudited) (unaudited) Revenue: Rental income $ 27,256 $ 27,256 Finance income $ 16,475 $ 16,475 Interest income $ 20,233 $ 20,233 Other income $ 21,633 $ 21,633 Geographic information for revenue for the nine months ended September 30, 2018 and 2017 was as follows: Nine Months Ended September 30, 2018 United States Total (unaudited) (unaudited) Revenue: Rental income $ 81,768 $ 81,768 Finance income $ 629,057 $ 629,057 Interest income $ 165,830 $ 165,830 Other income $ 17,448 $ 17,448 Nine Months Ended September 30, 2017 United States Total (unaudited) (unaudited) Revenue: Rental income $ 81,768 $ 81,768 Finance income $ 55,186 $ 55,186 Interest income $ 21,055 $ 21,055 Other income $ 22,033 $ 22,033 Geographic information for long-lived assets at September 30, 2018 and December 31, 2017 was as follows: September 30, 2018 United States Total (unaudited) (unaudited) Long-lived assets: Investment in finance leases, net $ 7,236,617 $ 7,236,617 Investments in equipment subject to operating leases, net $ 151,410 $ 151,410 Collateralized loan receivable, including accrued interest $ 2,053,057 $ 2,053,057 December 31, 2017 United States Total Long-lived assets: Investment in finance leases, net $ 2,032,092 $ 2,032,092 Investments in equipment subject to operating leases, net $ 223,102 $ 223,102 Collateralized loan receivable, including accrued interest $ 3,880,331 $ 3,880,331 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies On May 1, 2018, the Partnership, as co-borrower, entered into a loan agreement with a bank for a $5,000,000 revolving line of credit. This short term line is intended to be utilized to warehouse transactions to be invested in by the Partnership as investor proceeds are received. In connection with the loan agreement, the Partnership issued a promissory note to the bank in the amount of $5,000,000 that matures on May 1, 2020. To date, the Partnership has not drawn any funds under the revolving line of credit. In the event the Partnership draws funds, interest shall accrue at a rate of Prime Rate plus 1% per annum. As of September 30, 2018, the Partnership has one unfunded commitment totaling $110,915 for the finance lease of electrosurgical fiber, manufacturing, and testing equipment. Except for this investment, the Partnership does not have any unfunded commitments for any investments. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 12. Subsequent Events On October 1, 2018, the Partnership, on behalf of Lifestyle Leasing, funded $600,000 into an escrow account. On November 9, 2018, the funds were released from escrow and used to fund a helicopter lease. The lessee provided $450,000 of the $1,050,000 purchase price of the helicopter. The finance lease requires 36 monthly payments of $13,423, payable in arrears, and a final payment of $284,435 on November 1, 2021. On funding, the lessee paid the November 1, 2018 rent payment and a four month security deposit of $53,692. The lease is secured by a first priority lien against the leased helicopter and against an additional helicopter. On October 18, 2018, the Partnership issued a Commencement of Lease and Demand for Payment letter to the company based in Texas in regards to a finance lease of fabrication equipment. In November 2018, the Partnership entered into a forbearance agreement with the company, whereby the company will pay the outstanding October and November interim rent payments and then beginning in December 2018, they will pay a forbearance fee of $25,000 per month for three months while the company undergoes an internal restructuring. On October 31, 2018, the Partnership entered into a lease facility for $529,239 for water pumps and other equipment, to a company based in North Dakota. The finance lease requires 36 monthly payments of $17,888 with the first and last payments due in advance. The lease is secured by a first priority lien against the equipment. From October 1, 2018 through November 14, 2018, the Partnership admitted an additional 28 Limited Partners with total capital contributions of $1,382,468 resulting in the sale of 138,246.84 Units. The Partnership received cash contributions of $1,377,600 and applied $4,868 which would have otherwise been paid as sales commissions to the purchase of 486.84 additional Units. The Partnership paid or accrued an underwriting fee to Securities and outside brokers totaling $27,552 and $64,255, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
Principles of Consolidation | Principles of Consolidation Variable interests are investments or other interests that absorb portions of a variable interest entity’s (“VIE”) expected losses or receive portions of the Partnership’s expected residual returns and are contractual, ownership, or other pecuniary interests in a VIE that change with changes in the fair value of the VIE. An entity is considered to be a VIE if any of the following conditions exist. (1) The total equity investment at risk is insufficient to permit the legal entity to finance its activities without additional subordinated financial support; or (2) As a group, the holders of equity investments at risk lack any of the three characteristics of a controlling financial interest: (a) The direct or indirect ability through voting or similar rights to make decisions that have a significant effect on the success of the legal entity. The equity holders at risk are deemed to lack this characteristic if: i. the voting rights of some investors are not proportional to their obligation to absorb the expected losses of the legal entity or rights to receive expected residual returns; and ii. substantially all of the legal entity’s activities are either involved with or are conducted on behalf of an investor that has disproportionately few voting rights (b) The obligation to absorb the expected losses of the legal entity or (c) The right to receive the expected residual returns of the legal entity. An entity that is determined to be a VIE is required to be condensed consolidated by its primary beneficiary. The primary beneficiary of a VIE is determined to be the party that has both the power to direct the activities that most significantly affect the VIE’s economic performance (“Power”) and the obligation to absorb losses of, or the right to receive benefits from the VIE, that could potentially be significant to the VIE (“Benefits”). The determination of whether a reporting entity is the primary beneficiary involves complex and subjective analyses. |
Use of Estimates | Use of Estimates |
Cash and Cash Equivalents | Cash and Cash Equivalents The Partnership’s cash and cash equivalents are held principally at one financial institution and at times may exceed federally insured limits. The Partnership has placed these funds in a full service commercial financial institution in order to minimize risk relating to exceeding insured limits. |
Credit Risk | Credit Risk |
Asset Impairments | Asset Impairments |
Lease Classification and Revenue Recognition | Lease Classification and Revenue Recognition The Partnership leases equipment to third parties and each such lease may be classified as either a finance lease or an operating lease. Initial direct costs are capitalized and amortized over the term of the related lease for a finance lease. For an operating lease, initial direct costs are included as a component of the cost of the equipment and depreciated. For finance leases, the Partnership records, at lease inception, the total minimum lease payments receivable from the lessee, the estimated unguaranteed residual value of the equipment upon lease termination, the initial direct costs, if any, related to the lease and the related unearned income. Unearned income represents the difference between the sum of the minimum lease payments receivable plus the estimated unguaranteed residual value, minus the cost of the leased equipment. Unearned income is recognized as finance income over the term of the lease using the effective interest rate method. For operating leases, rental income is recognized on the straight line basis over the lease term. Billed and uncollected operating lease receivables will be included in accounts receivable. Accounts receivable are stated at their estimated net realizable value. Rental income received in advance is the difference between the timing of the cash payments and the income recognized on the straight line basis. The investment committee of the Investment Manager approves each new equipment lease, financing transaction, and lease acquisition. As part of this process it determines the unguaranteed residual value, if any, to be used once the acquisition has been approved. The factors considered in determining the unguaranteed residual value include, but are not limited to, the creditworthiness of the potential lessee, the type of equipment being considered, how the equipment is integrated into the potential lessees’ business, the length of the lease the industry in which the potential lessee operates and the secondary market value of the equipment. Unguaranteed residual values are reviewed for impairment in accordance with the Partnership’s policy relating to impairment review. The residual value assumes, among other things, that the asset will be utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded, and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. The residual value is calculated using information from various external sources, such as trade publications, auction data, equipment dealers, wholesalers and industry experts, as well as inspection of the physical asset and other economic indicators. |
Finance Lease Receivables and Allowance for Doubtful Lease, Notes and Loan Accounts | Finance Lease Receivables and Allowance for Doubtful Lease, Notes and Loan Accounts |
Equipment Notes and Loans Receivable | Equipment Notes and Loans Receivable |
Income Taxes | Income Taxes The Partnership has adopted the provisions of Financial Accounting Standards Board’s (“FASB”) Topic 740, Accounting for Uncertainty in Income Taxes. |
Per Share Data | Per Share Data |
Foreign Currency Transactions | Foreign Currency Transactions |
Depreciation | Depreciation |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In February 2016, the FASB issued new guidance to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements, ASU 2016-02, Leases (Topic 842): Amendments to the FASB Accounting Standards Codification In May 2014, the FASB issued ASU No. 2014-09 , Revenue from Contracts with Customers (Topic 606) , Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the condensed interim consolidated financial statements. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Partnership Incurred Transactions with Securities | For the nine months ended September 30, 2018 and the year ended December 31, 2017, the Partnership incurred the following transactions with Securities: September 30, 2018 December 31, 2017 (unaudited) Balance - beginning of period $ — $ — Underwriting fees earned by Securities 110,349 154,917 Payments by the Partnership to Securities (110,349 ) (154,917 ) Balance - end of period $ — $ — |
Schedule of Partnership Underwriting Fee Transactions | For the nine months ended September 30, 2018 and 2017, the Partnership incurred the following underwriting fee transactions: September 30, 2018 September 30, 2017 (unaudited) (unaudited) Underwriting discount incurred by the Partnership $ 83,237 $ 217,459 Underwriting fees earned by Securities 110,349 137,922 Fees paid to outside brokers 197,798 142,942 Total underwriting fees $ 391,384 $ 498,323 |
Investments in Finance Leases (
Investments in Finance Leases (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Leases, Capital [Abstract] | |
Schedule of Net Investments in Finance Leases | At September 30, 2018 and December 31, 2017, net investments in finance leases consisted of the following: September 30, 2018 December 31, 2017 (unaudited) Minimum rents receivable $ 7,990,286 $ 2,422,090 Estimated unguaranteed residual value 662,066 128,970 Unearned income (1,415,735 ) (518,968 ) Total $ 7,236,617 $ 2,032,092 |
Investment in Equipment Subje_2
Investment in Equipment Subject to Operating Leases (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Leases [Abstract] | |
Schedule of Composition of Equipment Subject to Operating Leases of Partnership | The composition of the equipment subject to operating leases of the Partnership as of September 30, 2018 is as follows: Description Cost Basis Accumulated Depreciation Net Book Value (unaudited) (unaudited) (unaudited) Food equipment $ 334,826 $ 183,416 $ 151,410 $ 334,826 $ 183,416 $ 151,410 The composition of the equipment subject to operating leases of the Partnership as of December 31, 2017 is as follows: Description Cost Basis Accumulated Depreciation Net Book Value Food equipment $ 334,826 $ 111,724 $ 223,102 $ 334,826 $ 111,724 $ 223,102 |
Collateralized Loans Receivab_2
Collateralized Loans Receivable (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Schedule of Future Principal Maturities | The future principal maturities of the Partnership’s collateralized loans receivable at September 30, 2018 are as follows: Periods ending September 30, (unaudited) 2019 $ 303,385 2020 567,918 2021 1,180,781 2022 — 2023 — Thereafter — Total $ 2,052,084 |
Geographic Information (Tables)
Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Geographic Information for Revenue | Geographic information for revenue for the three months ended September 30, 2018 and 2017 was as follows: Three Months Ended September 30, 2018 United States Total (unaudited) (unaudited) Revenue: Rental income $ 27,256 $ 27,256 Finance income $ 278,168 $ 278,168 Interest income $ 88,820 $ 88,820 Other income $ 16,618 $ 16,618 Three Months Ended September 30, 2017 United States Total (unaudited) (unaudited) Revenue: Rental income $ 27,256 $ 27,256 Finance income $ 16,475 $ 16,475 Interest income $ 20,233 $ 20,233 Other income $ 21,633 $ 21,633 Geographic information for revenue for the nine months ended September 30, 2018 and 2017 was as follows: Nine Months Ended September 30, 2018 United States Total (unaudited) (unaudited) Revenue: Rental income $ 81,768 $ 81,768 Finance income $ 629,057 $ 629,057 Interest income $ 165,830 $ 165,830 Other income $ 17,448 $ 17,448 Nine Months Ended September 30, 2017 United States Total (unaudited) (unaudited) Revenue: Rental income $ 81,768 $ 81,768 Finance income $ 55,186 $ 55,186 Interest income $ 21,055 $ 21,055 Other income $ 22,033 $ 22,033 |
Schedule of Geographic Information for Long-lived Assets | Geographic information for long-lived assets at September 30, 2018 and December 31, 2017 was as follows: September 30, 2018 United States Total (unaudited) (unaudited) Long-lived assets: Investment in finance leases, net $ 7,236,617 $ 7,236,617 Investments in equipment subject to operating leases, net $ 151,410 $ 151,410 Collateralized loan receivable, including accrued interest $ 2,053,057 $ 2,053,057 December 31, 2017 United States Total Long-lived assets: Investment in finance leases, net $ 2,032,092 $ 2,032,092 Investments in equipment subject to operating leases, net $ 223,102 $ 223,102 Collateralized loan receivable, including accrued interest $ 3,880,331 $ 3,880,331 |
Organization and Nature of Op_2
Organization and Nature of Operations (Details Narrative) | Sep. 30, 2018USD ($) | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | Sep. 30, 2018USD ($)Integershares | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)Integershares | Dec. 31, 2017USD ($) |
Number of business segment | Integer | 1 | |||||||
Accrued for distributions due to partners | $ 785,572 | |||||||
Distributions payable to limited partners | $ 321,871 | 321,871 | $ 321,871 | $ 181,062 | ||||
Distributions payable to general partner | $ 12,880 | 12,880 | 12,880 | $ 5,102 | ||||
Partners' capital contributions | 5,620,687 | |||||||
Partners received cash contributions | 5,537,450 | $ 6,966,299 | ||||||
Units issued as underwriting fee discount | $ 83,237 | $ 217,459 | ||||||
Limited Partner [Member] | ||||||||
Targeted distribution, description | The distribution rate increased to 8.0% annually, paid quarterly at 2.00%, of capital contributions. | The distribution rate increased to 7.5% annually, paid quarterly at 1.88%, of capital contributions. | The distribution rate increased to 7.0% annually, paid quarterly at 1.75%, of capital contributions. | Since June 30, 2017, the Partnership's distribution rate has been 6.5% annually, paid quarterly at 1.625%, of capital contributions, | The targeted distribution rate is 6.0% annually, paid quarterly as 1.5%, of each Limited Partner's capital contribution (pro-rated to the date of admission for each Limited Partner). | |||
Targeted distribution rate, annually | 8.00% | 7.50% | 7.00% | 6.50% | 6.00% | |||
Targeted distribution rate, quarterly | 2.00% | 1.88% | 1.75% | 1.625% | 1.50% | |||
Accrued for distributions due to partners | $ 777,794 | |||||||
Distributions payable to limited partners | $ 321,871 | 321,871 | $ 321,871 | |||||
Number of partners | Integer | 391 | |||||||
Partners' capital contributions | $ 5,620,687 | $ 17,003,304 | ||||||
Partners' capital contributions, shares | shares | 562,068.69 | 1,700,330.47 | ||||||
Partners received cash contributions | $ 16,447,048 | |||||||
Units issued as underwriting fee discount | $ 556,256 | |||||||
Additional units purchased during the period | shares | 55,626 | |||||||
General Partner [Member] | ||||||||
Accrued for distributions due to partners | $ 7,778 | |||||||
Distributions payable to general partner | 12,880 | 12,880 | $ 12,880 | |||||
Partners' capital contributions | ||||||||
SQN AIF V GP, LLC [Member] | ||||||||
Partnership contribution | $ 100 | $ 100 | $ 100 | |||||
Percentage of ownership | 1.00% | 1.00% | 1.00% | |||||
SQN AIF V GP, LLC [Member] | Limited Partner [Member] | ||||||||
Partnership interest | 99.00% | 99.00% | 99.00% | |||||
Percentage of cumulative return on capital contributions | 8.00% | 8.00% | 8.00% | |||||
Percentage of distributable cash allocated | 80.00% | 80.00% | 80.00% | |||||
SQN AIF V GP, LLC [Member] | General Partner [Member] | ||||||||
Partnership interest | 1.00% | 1.00% | 1.00% | |||||
Percentage of distributable cash allocated | 20.00% | 20.00% | 20.00% |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) | Aug. 31, 2018USD ($) | Jul. 05, 2018USD ($) | Dec. 15, 2017USD ($)Integer | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) |
Percentage of organizational and offering cost | 1.50% | 1.50% | |||||
Percentage of distributed cash | 20.00% | 20.00% | |||||
Percentage of capital contributions | 8.00% | 8.00% | |||||
Percentage of interest in profit, losses and distributions of partnership | 1.00% | 1.00% | |||||
Percentage of all distributed distributable cash | 1.00% | 1.00% | 1.00% | 1.00% | |||
Description of management fee | The Partnership pays the Investment Manager during the Offering Period, Operating Period and the Liquidation Period a management fee equal to the greater of, (i) 2.5% per annum of the aggregate offering proceeds, payable monthly in advance or (ii) $62,500 per month. | ||||||
Management fee | $ 187,500 | $ 187,500 | $ 562,500 | $ 562,500 | |||
Cash paid for collateralized loans receivable | 5,537,538 | 1,361,156 | |||||
Promissory notes, principal amount | $ 1,000,000 | $ 3,000,000 | |||||
Interest income | $ 1,808 | $ 8,480 | |||||
Underwriting fee percentage | 2.00% | ||||||
Two Assignment and Purchase Agreement [Member] | Arboretum Core Asset Finance Fund, L.P [Member] | |||||||
Cash paid for collateralized loans receivable | $ 130,559 | ||||||
Number of monthly payments | Integer | 13 | ||||||
Promissory notes, principal amount | $ 7,943 | ||||||
Promissory notes, interest | $ 2,870 | ||||||
Debt accrued interest rate | 18.00% | ||||||
Debt maturity date | Jan. 1, 2019 | ||||||
Investment Manager [Member] | |||||||
Structuring fee amount percentage | 1.50% | ||||||
Structuring fee | $ 109,976 | $ 20,022 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Partnership Incurred Transactions with Securities (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |||
Balance - beginning of period | |||
Underwriting fees earned by Securities | 110,349 | $ 137,922 | 154,917 |
Payments by the Partnership to Securities | (110,349) | (154,917) | |
Balance - end of period |
Related Party Transactions - _2
Related Party Transactions - Schedule of Partnership Underwriting Fee Transactions (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |||
Underwriting discount incurred by the Partnership | $ 83,237 | $ 217,459 | |
Underwriting fees earned by Securities | 110,349 | 137,922 | $ 154,917 |
Fees paid to outside brokers | 197,798 | 142,942 | |
Total underwriting fees | $ 391,384 | $ 498,323 |
Investments in Finance Leases_2
Investments in Finance Leases (Details Narrative) | Sep. 26, 2018USD ($) | Aug. 02, 2018USD ($) | Jun. 29, 2018USD ($)Integer | Jun. 26, 2018USD ($)Integer | May 11, 2018USD ($) | Apr. 17, 2018USD ($)Integer | Apr. 03, 2018USD ($)Integer | Mar. 16, 2018USD ($) | Mar. 13, 2018USD ($) | Mar. 09, 2018USD ($)Integer | Mar. 01, 2018USD ($)Integer | Feb. 14, 2018USD ($) | Feb. 12, 2018USD ($) | Feb. 09, 2018USD ($)Integer | Feb. 05, 2018USD ($)Integer | Jan. 30, 2018USD ($) | Jan. 18, 2018USD ($)Integer | Dec. 04, 2017USD ($)Integer | Nov. 09, 2017USD ($)Integer | Oct. 21, 2016USD ($)Integer | Oct. 06, 2016USD ($)Integer | Sep. 30, 2018USD ($)Integer |
Forbearance Agreement [Member] | ||||||||||||||||||||||
Forbearance fee per month | $ 25,000 | |||||||||||||||||||||
Forbearance fee, description | In November 2018, the Partnership entered into a forbearance agreement with the company, whereby the company will pay the outstanding October and November interim rent payments and then beginning in December 2018, they will pay a forbearance fee of $25,000 per month. | |||||||||||||||||||||
Apple Computers [Member] | ||||||||||||||||||||||
Finance lease facility | $ 680,020 | |||||||||||||||||||||
Number of monthly payments | Integer | 36 | |||||||||||||||||||||
Monthly lease payments | $ 17,402 | |||||||||||||||||||||
Payment of equipment lease receivables | $ 102,002 | |||||||||||||||||||||
Assortment of School Furniture and Kitchen Equipment [Member] | ||||||||||||||||||||||
Finance lease facility | $ 357,020 | |||||||||||||||||||||
Number of monthly payments | Integer | 36 | |||||||||||||||||||||
Monthly lease payments | $ 11,647 | |||||||||||||||||||||
Agricultural Equipment and Supplies [Member] | ||||||||||||||||||||||
Finance lease facility | $ 44,380 | $ 48,850 | $ 406,456 | |||||||||||||||||||
Number of monthly payments | Integer | 36 | 36 | 36 | |||||||||||||||||||
Monthly lease payments | $ 1,509 | $ 1,661 | $ 13,819 | |||||||||||||||||||
Railcar Movers [Member] | ||||||||||||||||||||||
Finance lease facility | $ 940,000 | |||||||||||||||||||||
Number of monthly payments | Integer | 60 | |||||||||||||||||||||
Monthly lease payments | $ 16,468 | |||||||||||||||||||||
Payment of equipment lease receivables | $ 350,709 | |||||||||||||||||||||
Water Pumps [Member] | ||||||||||||||||||||||
Finance lease facility | $ 1,199,520 | |||||||||||||||||||||
Number of monthly payments | Integer | 48 | |||||||||||||||||||||
Monthly lease payments | $ 31,902 | |||||||||||||||||||||
Fabrication Equipment [Member] | ||||||||||||||||||||||
Finance lease facility | $ 2,188,377 | |||||||||||||||||||||
Number of monthly payments | Integer | 42 | |||||||||||||||||||||
Monthly lease payments | $ 57,199 | |||||||||||||||||||||
Payment of equipment lease receivables | $ 349,428 | $ 647,122 | $ 1,079,895 | |||||||||||||||||||
Virtual Office Software and Equipment [Member] | ||||||||||||||||||||||
Finance lease facility | $ 245,219 | |||||||||||||||||||||
Number of monthly payments | Integer | 24 | |||||||||||||||||||||
Monthly lease payments | $ 12,020 | |||||||||||||||||||||
Payment of equipment lease receivables | $ 245,219 | |||||||||||||||||||||
Educational Multimedia Content Equipment [Member] | ||||||||||||||||||||||
Finance lease facility | $ 1,175,720 | |||||||||||||||||||||
Number of monthly payments | Integer | 32 | 36 | ||||||||||||||||||||
Monthly lease payments | $ 39,212 | $ 33,402 | ||||||||||||||||||||
Payment of equipment lease receivables | $ 160,000 | $ 1,015,720 | ||||||||||||||||||||
Educational Multimedia Content Equipment [Member] | Maximum [Member] | ||||||||||||||||||||||
Finance lease facility | $ 1,500,000 | |||||||||||||||||||||
Restaurant Kitchen Equipment [Member] | ||||||||||||||||||||||
Finance lease facility | $ 99,162 | $ 88,233 | ||||||||||||||||||||
Number of monthly payments | Integer | 42 | |||||||||||||||||||||
Monthly lease payments | 16,488 | $ 2,669 | ||||||||||||||||||||
Payment of equipment lease receivables | $ 88,233 | |||||||||||||||||||||
Fair value of finance lease | $ 82,674 | |||||||||||||||||||||
Medical Equipment [Member] | ||||||||||||||||||||||
Finance lease facility | $ 673,706 | $ 390,573 | ||||||||||||||||||||
Number of monthly payments | Integer | 42 | 36 | 42 | |||||||||||||||||||
Monthly lease payments | $ 10,711 | $ 13,444 | $ 9,513 | |||||||||||||||||||
Payment of equipment lease receivables | $ 35,680 | $ 71,361 | ||||||||||||||||||||
Fair value of finance lease | $ 455,749 |
Investments in Finance Leases -
Investments in Finance Leases - Schedule of Net Investments in Finance Leases (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Leases, Capital [Abstract] | ||
Minimum rents receivable | $ 7,990,286 | $ 2,422,090 |
Estimated unguaranteed residual value | 662,066 | 128,970 |
Unearned income | (1,415,735) | (518,968) |
Total | $ 7,236,617 | $ 2,032,092 |
Investment in Equipment Subje_3
Investment in Equipment Subject to Operating Leases (Details Narrative) | Oct. 18, 2016USD ($)Integer | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) |
Depreciation expense | $ | $ 23,912 | $ 23,911 | $ 71,692 | $ 71,690 | |
16 Pizza Ovens [Member] | |||||
Finance lease facility | $ | $ 318,882 | ||||
Number of lessees | Integer | 5 | ||||
Number of monthly payments | Integer | 36 |
Investment in Equipment Subje_4
Investment in Equipment Subject to Operating Leases - Schedule of Composition of Equipment Subject to Operating Leases of Partnership (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Cost Basis | $ 334,826 | $ 334,826 |
Accumulated Depreciation | 183,416 | 111,724 |
Net Book Value | 151,410 | 223,102 |
Food Equipment [Member] | ||
Cost Basis | 334,826 | 334,826 |
Accumulated Depreciation | 183,416 | 111,724 |
Net Book Value | $ 151,410 | $ 223,102 |
Collateralized Loans Receivab_3
Collateralized Loans Receivable (Details Narrative) | Aug. 31, 2018USD ($) | Jul. 05, 2018USD ($)Integer | Jun. 29, 2018USD ($) | Jun. 28, 2018USD ($) | May 02, 2018USD ($) | Feb. 06, 2018USD ($) | Jan. 05, 2018USD ($) | Nov. 07, 2017USD ($) | Jul. 31, 2017USD ($) | Jun. 26, 2017USD ($)Integer | Sep. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) |
Interest income | $ 1,808 | $ 8,480 | |||||||||||||
Cash paid for collateralized loans receivable | 5,537,538 | $ 1,361,156 | |||||||||||||
Promissory notes, principal amount | $ 1,000,000 | $ 3,000,000 | |||||||||||||
Promissory Notes [Member] | |||||||||||||||
Interest income | 54,812 | 54,812 | |||||||||||||
Promissory notes, principal amount | 1,500,000 | 1,500,000 | |||||||||||||
Asset Backed Equipment Loan [Member] | |||||||||||||||
Proceeds from lease payment | $ 2,828,000 | ||||||||||||||
Commercial Finance Agreement [Member] | |||||||||||||||
Interest income | 7,362 | 28,889 | |||||||||||||
Commercial Finance Agreement [Member] | Warehouse Racking Equipment [Member] | |||||||||||||||
Secured financing | $ 1,184,850 | ||||||||||||||
Debt accrued interest rate | 9.00% | ||||||||||||||
Debt maturity date | Jun. 26, 2020 | ||||||||||||||
Number of monthly payments | Integer | 36 | ||||||||||||||
Advanced to vendor amount | $ 495,298 | $ 689,552 | |||||||||||||
Commercial Finance Agreement [Member] | Warehouse Racking Equipment [Member] | 1 Month Payment [Member] | |||||||||||||||
Number of monthly payments | Integer | 1 | ||||||||||||||
Debt periodic payments | $ 39,083 | ||||||||||||||
Commercial Finance Agreement [Member] | Warehouse Racking Equipment [Member] | 11 Monthly Payments [Member] | |||||||||||||||
Number of monthly payments | Integer | 11 | ||||||||||||||
Debt periodic payments | $ 69,498 | ||||||||||||||
Commercial Finance Agreement [Member] | Warehouse Racking Equipment [Member] | 24 Monthly Payments [Member] | |||||||||||||||
Number of monthly payments | Integer | 24 | ||||||||||||||
Debt periodic payments | $ 20,222 | ||||||||||||||
Loan Agreement [Member] | |||||||||||||||
Debt accrued interest rate | 1.50% | 12.00% | |||||||||||||
Debt maturity date | May 1, 2020 | Feb. 7, 2018 | Jun. 26, 2021 | ||||||||||||
Number of monthly payments | Integer | 48 | ||||||||||||||
Interest income | $ 42,903 | ||||||||||||||
Cash paid for collateralized loans receivable | $ 2,800,000 | $ 150,000 | |||||||||||||
Promissory notes, principal amount | $ 5,000,000 | $ 3,931 | |||||||||||||
Debt interest rate, thereafter | 1.25% | ||||||||||||||
Membership interest, percentage | 100.00% | ||||||||||||||
Proceeds from debt | $ 42,000 | $ 42,000 | |||||||||||||
Proceeds from notes borrowed | $ 7,500,000 | ||||||||||||||
Loan Agreement [Member] | Borrower One Promissory Note [Member] | |||||||||||||||
Proceeds from notes borrowed | 1,000,000 | ||||||||||||||
Loan Agreement [Member] | Third Party [Member] | |||||||||||||||
Proceeds from notes borrowed | 3,000,000 | ||||||||||||||
Loan Agreement [Member] | Promissory Notes One [Member] | |||||||||||||||
Proceeds from notes borrowed | 2,000,000 | ||||||||||||||
Loan Agreement [Member] | Promissory Notes Two [Member] | |||||||||||||||
Proceeds from notes borrowed | 2,000,000 | ||||||||||||||
Loan Agreement [Member] | Tranche One [Member] | |||||||||||||||
Secured financing | $ 5,500,000 | $ 2,000,000 | |||||||||||||
Debt accrued interest rate | 12.75% | ||||||||||||||
Debt maturity date | Jun. 30, 2021 | ||||||||||||||
Number of monthly payments | Integer | 12 | ||||||||||||||
Debt periodic payments | $ 150,000 | ||||||||||||||
Description on interest rate | The Tranche I loan requires 18 monthly interest only payments upon commencement (first 12 monthly interest payments to be paid in cash at 11% and the remainder to be paid in kind ("PIK") by adding such PIK interest to the principal balance and 6 monthly interest payments to be paid in cash) and 18 monthly payment of principal and interest payment with monthly principal paydowns of $150,000. | ||||||||||||||
Loan Agreement [Member] | Tranche One [Member] | Borrower [Member] | |||||||||||||||
Debt periodic payments | $ 2,900,000 | ||||||||||||||
Debt instrument, balloon payment | $ 3,029,000 | ||||||||||||||
Loan Agreement [Member] | Tranche One [Member] | LIBOR [Member] | |||||||||||||||
Variable interest rate | 1.50% | ||||||||||||||
Loan Agreement [Member] | Tranche One [Member] | Promissory Notes One [Member] | |||||||||||||||
Proceeds from notes borrowed | 1,500,000 | ||||||||||||||
Loan Agreement [Member] | Tranche One [Member] | Promissory Notes Two [Member] | |||||||||||||||
Proceeds from notes borrowed | 2,000,000 | ||||||||||||||
Loan Agreement [Member] | Tranche One [Member] | Promissory Notes Three [Member] | |||||||||||||||
Proceeds from notes borrowed | 2,000,000 | ||||||||||||||
Loan Agreement [Member] | Borrower [Member] | |||||||||||||||
Interest income | $ 2,657 | 8,535 | |||||||||||||
Loan Agreement [Member] | 1 Monthly Installment [Member] | |||||||||||||||
Interest income | 42,000 | ||||||||||||||
Loan Agreement [Member] | 2 Monthly Installment [Member] | |||||||||||||||
Interest income | $ 35,000 | ||||||||||||||
Assignment Agreement [Member] | Tranche I Loan [Member] | |||||||||||||||
Loan sold by third party | $ 1,000,000 | $ 3,000,000 |
Collateralized Loans Receivab_4
Collateralized Loans Receivable - Schedule of Future Principal Maturities (Details) | Sep. 30, 2018USD ($) |
Receivables [Abstract] | |
2,019 | $ 303,385 |
2,020 | 567,918 |
2,021 | 1,180,781 |
2,022 | |
2,023 | |
Thereafter | |
Total | $ 2,052,084 |
Business Concentrations (Detail
Business Concentrations (Details Narrative) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Interest Income [Member] | Promissory Note One [Member] | ||
Concentration credit risk percentage | 46.00% | |
Interest Income [Member] | Promissory Note Two [Member] | ||
Concentration credit risk percentage | 26.00% | |
Interest Income [Member] | Promissory Note Three [Member] | ||
Concentration credit risk percentage | 17.00% | |
Interest Income [Member] | Loan One [Member] | ||
Concentration credit risk percentage | 83.00% | |
Interest Income [Member] | Loan Two [Member] | ||
Concentration credit risk percentage | 17.00% | |
Investment in Collateralized Loans Receivable [Member] | Borrower One [Member] | ||
Concentration credit risk percentage | 74.00% | 87.00% |
Investment in Collateralized Loans Receivable [Member] | Borrower Two [Member] | ||
Concentration credit risk percentage | 19.00% | 13.00% |
Investment in Collateralized Loans Receivable [Member] | Lease One [Member] | ||
Concentration credit risk percentage | 31.00% | 63.00% |
Investment in Collateralized Loans Receivable [Member] | Lease Two [Member] | ||
Concentration credit risk percentage | 16.00% | 37.00% |
Investment in Collateralized Loans Receivable [Member] | Lease Three [Member] | ||
Concentration credit risk percentage | 14.00% | |
Investment in Collateralized Loans Receivable [Member] | Lease Four [Member] | ||
Concentration credit risk percentage | 12.00% | |
Lessee #1 [Member] | Rental Income Operating Leases [Member] | ||
Concentration credit risk percentage | 100.00% | 100.00% |
Lessee #1 [Member] | Finance Leases [Member] | ||
Concentration credit risk percentage | 43.00% | 61.00% |
Lessee #1 [Member] | Investment in Operating Leases [Member] | ||
Concentration credit risk percentage | 100.00% | 100.00% |
Lessee #2 [Member] | Finance Leases [Member] | ||
Concentration credit risk percentage | 12.00% | 39.00% |
Lessee #3 [Member] | Finance Leases [Member] | ||
Concentration credit risk percentage | 12.00% |
Geographic Information - Schedu
Geographic Information - Schedule of Geographic Information for Revenue (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Rental income | $ 27,256 | $ 27,256 | $ 81,768 | $ 81,768 |
Finance income | 278,168 | 16,475 | 629,057 | 55,186 |
Interest income | 88,820 | 20,233 | 165,830 | 21,055 |
Other income | 16,618 | 21,633 | 17,448 | 22,033 |
United States [Member] | ||||
Rental income | 27,256 | 27,256 | 81,768 | 81,768 |
Finance income | 278,168 | 16,475 | 629,057 | 55,186 |
Interest income | 88,820 | 20,233 | 165,830 | 21,055 |
Other income | $ 16,618 | $ 21,633 | $ 17,448 | $ 22,033 |
Geographic Information - Sche_2
Geographic Information - Schedule of Geographic Information for Long-lived Assets (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Investment in finance leases, net | $ 7,236,617 | $ 2,032,092 |
Investments in equipment subject to operating leases, net | 151,410 | 223,102 |
Collateralized loan receivable, including accrued interest | 2,053,057 | 3,880,331 |
United States [Member] | ||
Investment in finance leases, net | 7,236,617 | 2,032,092 |
Investments in equipment subject to operating leases, net | 151,410 | 223,102 |
Collateralized loan receivable, including accrued interest | $ 2,053,057 | $ 3,880,331 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | Aug. 31, 2018 | Jul. 05, 2018 | May 02, 2018 | Nov. 07, 2017 | Jun. 26, 2017 | Sep. 30, 2018 |
Promissory notes, principal amount | $ 1,000,000 | $ 3,000,000 | ||||
Electrosurgical Fiber, Manufacturing, and Testing Equipment [Member] | ||||||
Unfunded commitment | $ 110,915 | |||||
Loan Agreement [Member] | ||||||
Line of credit | $ 5,000,000 | |||||
Promissory notes, principal amount | $ 5,000,000 | $ 3,931 | ||||
Debt maturity date | May 1, 2020 | Feb. 7, 2018 | Jun. 26, 2021 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) | Nov. 09, 2018USD ($)Integer | Oct. 31, 2018USD ($)Integer | Oct. 18, 2018USD ($) | Nov. 14, 2018USD ($)Integershares | Sep. 30, 2018USD ($)shares | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)shares | Oct. 01, 2018USD ($) |
Partners' capital contributions | $ 5,620,687 | |||||||
Partners' cash contributions | 5,537,450 | $ 6,966,299 | ||||||
Limited Partner [Member] | ||||||||
Partners' capital contributions | $ 5,620,687 | $ 17,003,304 | ||||||
Partners' capital contributions, units | shares | 562,068.69 | 1,700,330.47 | ||||||
Partners' cash contributions | $ 16,447,048 | |||||||
Subsequent Event [Member] | ||||||||
Escrow amount | $ 600,000 | |||||||
Purchase price | $ 1,050,000 | |||||||
Operating lease payment | $ 13,423 | |||||||
Number of monthly payments | Integer | 36 | 36 | ||||||
Security deposit | $ 53,692 | |||||||
Forbearance fee per month | $ 25,000 | |||||||
Forbearance fee, description | In November 2018, the Partnership entered into a forbearance agreement with the company, whereby the company will pay the outstanding October and November interim rent payments and then beginning in December 2018, they will pay a forbearance fee of $25,000 per month. | |||||||
Monthly lease payments | $ 17,888 | |||||||
Lease payments description | The finance lease requires 36 monthly payments of $17,888 with the first and last payments due in advance. The lease is secured by a first priority lien against the water pumps. | |||||||
Subsequent Event [Member] | Limited Partner [Member] | ||||||||
Number of additional partners | Integer | 28 | |||||||
Partners' capital contributions | $ 1,382,468 | |||||||
Partners' capital contributions, units | shares | 138,246.84 | |||||||
Partners' cash contributions | $ 1,377,600 | |||||||
Sales commission | $ 4,868 | |||||||
Additional purchase units, shares | shares | 486.84 | |||||||
Subsequent Event [Member] | Limited Partner [Member] | Outside Brokers [Member] | ||||||||
Accrued underwriting fee | $ 64,255 | |||||||
Subsequent Event [Member] | Limited Partner [Member] | Securities [Member] | ||||||||
Accrued underwriting fee | $ 27,552 | |||||||
Subsequent Event [Member] | North Dakota [Member] | ||||||||
Finance lease facility | $ 529,239 | |||||||
Subsequent Event [Member] | November 1, 2021 [Member] | ||||||||
Operating lease payment | 284,435 | |||||||
Subsequent Event [Member] | Lessee [Member] | ||||||||
Purchase price | $ 450,000 |