Commonwealth Income & Growth Fund VI (CIGF6) 10-Q 14 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Sep. 30, 2017shares
Document and Entity Information:
Entity Registrant Name	Commonwealth Income & Growth Fund VI
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Trading Symbol	cigf6
Amendment Flag	false
Entity Central Index Key	1,351,901
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding	0
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Entity Incorporation, State Country Name	Commonwealth of Pennsylvania

Condensed Balance Sheets

Condensed Balance Sheets - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Current Assets
Cash and cash equivalents	$ 13,490	$ 332,742
Lease income receivable, net of reserve of approximately $33,000 at September 30, 2017 and December 31, 2016	111,769	173,415
Accounts receivable, Commonwealth Capital Corp., net	306,706	131,445
Other receivables, net of reserve of approximately $8,000 and $7,000 at September 30, 2017 and December 31, 2016, respectively	30,539	20,853
Prepaid expenses	5,409	2,505
Current Assets	467,913	660,960
Net investment in finance leases	28,156	61,634
Equipment, at cost	9,023,124	8,405,780
Accumulated depreciation	(7,638,791)	(7,322,869)
Technology equipment, net	1,384,333	1,082,911
Equipment acquisition costs and deferred expenses, net of accumulated amortization of approximately $32,000 and $42,000 at September 30, 2017 and December 31, 2016, respectively	50,940	39,987
Total Assets	1,931,342	1,845,492
LIABILITIES
Accounts payable	161,551	175,294
Accounts payable, CIGF, Inc., net	110,568	97,590
Other accrued expenses	128,824	94,182
Unearned lease income	73,655	38,843
Notes payable	904,222	605,372
Total Liabilities	1,378,820	1,011,281
COMMITMENTS AND CONTINGENCIES
PARTNERS' CAPITAL
General Partner	1,000	1,000
Limited Partners	551,522	833,211
Total Partners' Capital	552,522	834,211
Total Liabilities and Partners' Capital	$ 1,931,342	$ 1,845,492

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Reserve for doubtful lease income receivable	$ 32,000	$ 32,000
Other receivables reserve, net	$ 8,000	$ 7,000

Condensed Statements of Operati

Condensed Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue
Lease	$ 258,522	$ 239,243	$ 757,776	$ 686,973
Interest and other	480	1,623	2,065	4,540
Gain on sale of equipment	454	11,086	1,204	31,244
Total revenue and gain on sale of equipment	259,456	251,952	761,045	722,757
Expenses
Operating, excluding depreciation	113,272	108,637	330,974	403,168
Equipment management fee, General Partner	13,147	12,190	38,564	35,030
Interest	10,404	1,836	30,309	7,828
Depreciation	185,374	191,914	546,314	593,599
Amortization of equipment acquisition costs and deferred expenses	7,677	8,213	27,089	21,114
Bad debt expense	1,046	0	1,616	1,649
Loss on sale of computer equipment	0	0	14,329	0
Total expenses	330,920	322,790	989,195	1,062,388
Other income (loss)
Gain from insurance recovery	0	0	24,135	0
Total other income	0	0	24,135	0
Net loss	(71,464)	(70,838)	(204,015)	(339,631)
Net loss allocated to Limited Partners	$ (71,464)	$ (71,722)	$ (204,411)	$ (341,408)
Net loss per equivalent Limited Partnership unit	$ (0.04)	$ (0.04)	$ (0.12)	$ (0.19)
Weighted average number of equivalent Limited Partnership units outstanding during the period	1,756,361	1,775,409	1,761,362	1,785,243

Condensed Statement of Partners

Condensed Statement of Partners' Capital - 9 months ended Sep. 30, 2017 - USD ($)	General Partners	Limited Partners {1}	Total
Partners' Capital at Dec. 31, 2016	$ 1,000	$ 833,211	$ 834,211
Partners' Capital Account, Units at Dec. 31, 2016	50	1,767,326
Net loss		$ (39,565)	(39,565)
Partners' Capital Account, Redemptions		$ (39,565)	(39,565)
Partners' Capital Account, Units, Redeemed		(9,930)
Distributions	$ (396)	$ (37,713)	(38,109)
Partners' Capital at Sep. 30, 2017	$ 1,000	$ 551,522	$ 552,522
Partners' Capital Account, Units at Sep. 30, 2017	50	1,757,396

Condensed Statements of Cash Fl

Condensed Statements of Cash Flow - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities
Net cash provided by operating activities	$ 21,492	$ 584,730
Cash flows from investing activities
Capital expenditures	(186,711)	(95,194)
Payments received from finance leases	33,745	34,051
Equipment acquisition fees paid to General Partner	(31,945)	(28,805)
Net proceeds from the sale of equipment	16,304	49,427
Net cash used in investing activities	(168,607)	(40,521)
Cash flows from financing activities
Redemptions	(39,565)	(97,574)
Debt placement fee	(6,097)	(5,710)
Distributions to partners	(126,475)	(177,705)
Net cash used in financing activities	(172,137)	(280,989)
Net (decrease) increase in cash and cash equivalents	(319,252)	263,220
Cash and cash equivalents beginning of period	332,742	20,855
Cash and cash equivalents end of period	$ 13,490	$ 284,075

Business

Business	9 Months Ended
	Sep. 30, 2017
Disclosure Text Block [Abstract]
Business	Commonwealth Income & Growth Fund VI (“CIGF7” or the “Partnership” or the “Fund”) is a limited partnership organized in the Commonwealth of Pennsylvania on January 6, 2006. The Partnership offered for sale up to 2,500,000 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 May 10, 2007. The offering terminated on March 6, 2009 with 1,810,311 units sold for a total of approximately $36,000,000 in limited partner contributions. The Partnership uses the proceeds of the offering to acquire, own and lease various types of information technology equipment and other similar capital equipment, which will be 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 General Partner is Commonwealth Income & Growth Fund, Inc. (the “General Partner”), a Pennsylvania corporation which is an indirect wholly owned subsidiary of CCC. CCC is a member of the Investment Program Association (IPA), REISA, Financial Planning Association (FPA), and the Equipment Leasing and Finance Association (ELFA). Approximately ten years after the commencement of operations, the Partnership intends to sell or otherwise dispose of all of its equipment, make final distributions to partners, and to dissolve. Unless sooner terminated or extended pursuant to the terms of its Limited Partnership Agreement, the Partnership will continue until December 31, 2018. Liquidity and Going Concern The General Partner and CCC have committed to fund, either through cash contributions and/or forgiveness of indebtedness, any necessary operational cash shortfalls of the Partnership through September 30, 2018. The General Partner will continue to reassess the funding of limited partner distributions throughout 2017 and will continue to waive certain fees. The General Partner and CCC will also determine if related party payables owed to the Partnership may be deferred (if deemed necessary in an effort to further increase the Partnership’s cash flow. If available cash flow or net disposition proceeds are insufficient to cover the Partnership expenses and liabilities on a short and long term basis, the Partnership may attempt to obtain additional funds by disposing of or refinancing equipment, or by borrowing within its permissible limits. The Partnership has incurred recurring losses and has a working capital deficit at September 30, 2017. The Partnership believes it has alleviated these conditions as discussed above. 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.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
Disclosure Text Block [Abstract]
Summary of Significant Accounting Policies	Basis of Presentation The financial information presented as of any date other than December 31, 2016 has been prepared from the books and records without audit. The following unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Financial information as of December 31, 2016 has been derived from the audited financial statements of the Partnership, but does not include all disclosures required by generally accepted accounting principles to be included in audited financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the financial information for the periods indicated, have been included. Operating results for the nine months ended September 30, 2017 are not necessarily indicative of financial results that may be expected for the full year ended December 31, 2017. Disclosure of Fair Value 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 and cash equivalents, receivables, accounts payable and accrued expenses and other liabilities are carried at amounts which reasonably approximate their fair values as of September 30, 2017 and December 31, 2016 due to the 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 September 30, 2017 and December 31, 2016 approximates the carrying value of these instruments, due to the interest rates on the 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. Cash and cash equivalents We consider cash equivalents to be highly liquid investments with an original maturity of 90 days or less. At September 30, 2017, cash and cash equivalents was held in two accounts maintained at one financial institution with an aggregate balance of approximately $16,000. Bank accounts are federally insured up to $250,000 by the FDIC. At September 30, 2017, the total cash balance was as follows: At September 30, 2017 Balance Total bank balance $ 16,000 FDIC insured (16,000 ) Uninsured amount $ - The Partnership believes it mitigates the risk of holding uninsured deposits by only depositing funds with major financial institutions. The Partnership has not experienced any losses in our accounts, and believes it is not exposed to any significant credit risk. The amounts in such accounts will fluctuate throughout 2017 due to many factors, including cash receipts, equipment acquisitions, interest rates and distributions to limited partners. Recent Accounting Pronouncements In October 2016, the FASB issued Accounting Standards Update 2016-17 — Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control. Recent Accounting Pronouncements Not Yet Adopted In August 2016, the FASB issued Accounting Standards Update 2016-15— Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) Section A—Leases: Amendments to the FASB Accounting Standards Codification® Section B—Conforming Amendments Related to Leases: Amendments to the FASB Accounting Standards Codification® Section C—Background Information and Basis for Conclusions In January 2016, the FASB issued Accounting Standards Update No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities

Information Technology, Medical

Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment (''Equipment'')	9 Months Ended
	Sep. 30, 2017
Disclosure Text Block [Abstract]
Information and other Technology, Inventory Management Equipment and other Capital Equipment	The Partnership is the lessor of equipment under 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. Remarketing fees will be paid to the leasing companies from which the Partnership purchases leases. These are fees that are earned by the leasing companies when the initial terms of the lease have been met. The General Partner believes that this strategy adds value since it entices the leasing company to remain actively involved with the lessees for potential extensions, remarketing or sale of equipment. This strategy is designed to minimize any conflicts the leasing company may have with a new lessee and may assist in maximizing overall portfolio performance. The remarketing fee is tied into lease performance thresholds and is a factor in the negotiation of the fee. Remarketing fees incurred in connection with lease extensions are accounted for as operating costs. Remarketing fees incurred in connection with the sale of equipment are included in the gain or loss calculations. Remarketing fees of approximately $0 and $4,000 were incurred for each of the nine month periods ended September 30, 2017 and 2016, respectively. For the nine months ended September 30, 2017 and 2016, there were no remarketing fees paid with cash or netted against receivables due from such parties. Gains from the termination of leases are recognized when the lease is modified and terminated concurrently. Gains from lease termination included in lease revenue for the nine months ended September 30, 2017 and 2016, was approximately $1,000 and $4,000, respectively. 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 September 30, 2017 was approximately $4,922,000 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 September 30, 2017 was approximately $13,697,000. The Partnership’s share of the outstanding debt associated with this equipment at September 30, 2017 was approximately $362,000 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 September 30, 2017 was approximately $2,859,000. The Partnership’s share of the cost of the equipment in which it participates with other partnerships at December 31, 2016 was approximately $4,517,000 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, 2016 was approximately $10,060,000. The Partnership’s share of the outstanding debt associated with this equipment at December 31, 2016 was approximately $33,000 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, 2016 was approximately $96,000. As the Partnership and the other programs managed by the General Partner increase their overall portfolio size, 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. As additional investment opportunities arise during the remainder of 2017, the Partnership expects total shared equipment and related debt to trend higher as the Partnership builds its portfolio. The following is a schedule of approximate future minimum rentals on non-cancellable operating leases at September 30, 2017: For the period ended December Amount Three months ended December 31, 2017 $ 268,000 Year Ended December 31, 2018 734,000 Year Ended December 31, 2019 545,000 Year Ended December 31, 2020 255,000 Year Ended December 31, 2021 52,000 $ 1,854,000 Finance Leases: The following lists the components of the net investment in direct finance leases: September 30, 2017 December 31, Total minimum lease payments to be received $ 10,000 $ 44,000 Estimated residual value of leased equipment (unguaranteed) 20,000 20,000 Less: unearned income (2,000 ) (3,000 ) Initial direct costs finance leases - 1,000 Net investment in finance leases $ 28,000 $ 62,000 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 credits 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 include both general and industry specific qualitative and quantitative metrics. We separately take into 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 and their payment history. 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. Risk Level Percent of Total Low -% Moderate-Low -% Moderate -% Moderate-High 100% High -% Net finance lease receivable 100% As of September 30, 2017 and December 31, 2016, 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. The following is a schedule of approximate future minimum rentals on non-cancelable direct financing leases at September 30, 2017: Amount Three months ended December 31, 2017 $ 5,000 2018 5,000 Total $ 10,000

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2017
Disclosure Text Block [Abstract]
Related Party Transactions	Receivables/Payables As of September 30, 2017 and December 31, 2016, the Company’s related party receivables and payables are short term, unsecured and non-interest bearing. Nine months ended September 30, 2017 2016 Reimbursable expenses The General Partner and its affiliates are entitled to reimbursement by the Partnership for the cost of goods, supplies or services obtained and used by the General Partner in connection with the administration and operation of the Partnership from third parties unaffiliated with the General Partner. In addition, the General Partner and its affiliates are entitled to reimbursement of certain expenses incurred by the General Partner and its affiliates in connection with the administration and operation of the Partnership. For the nine months ended September 30, 2017 and 2016, the Partnership was charged approximately $110,000 and $158,000 in Other LP expense, respectively. $ 287,000 $ 384,000 Equipment acquisition fee The General Partner earned an equipment acquisition fee of 4% of the purchase price of each item of equipment purchased as compensation for the negotiation of the acquisition of the equipment and lease thereof or sale under a conditional sales contract. $ 35,000 $ 29,000 Equipment management fee The General Partner is entitled to be paid a monthly fee equal to the lesser of (a) the fees which would be charged by an independent third party in the same geographic market for similar services and equipment or (b) the sum of (i) two percent of gross lease revenues attributable to equipment subject to full payout net leases which contain net lease provisions and (ii) five percent of the gross lease revenues attributable to equipment subject to operating leases. Our general partner, based on its experience in the equipment leasing industry and current dealings with others in the industry, will use its business judgment to determine if a given fee is competitive, reasonable and customary. The amount of the fee will depend upon the amount of equipment we manage, which in turn will depend upon the amount we raise in this offering. Reductions in market rates for similar services would also reduce the amount of the fee we will receive. $ 39,000 $ 35,000 Debt placement fee As compensation for arranging term debt to finance our acquisition of equipment, we will pay the general partner a fee equal to one percent of such indebtedness; provided, however, that such fee shall be reduced to the extent we incur such fees to third parties unaffiliated with the general partner or the lender with respect to such indebtedness. No such fee will be paid with respect to borrowings from the general partner or its affiliates. We intend to initially acquire leases on an all cash basis with the proceeds of this offering, but may borrow funds after the offering proceeds have been invested. The amount we borrow, and therefore the amount of the fee, will depend upon interest rates at the time of a loan, and the amount of leverage we determine is appropriate at the time. We do not intend to use more than 30% leverage overall in our portfolio. Fees will increase as the amount of leverage we use increases, and as turnover in the portfolio increases and additional equipment is purchased using leverage. $ 7,000 $ 6,000

Notes Payable

Notes Payable	9 Months Ended
	Sep. 30, 2017
Disclosure Text Block [Abstract]
Notes Payable	Notes payable consisted of the following approximate amounts: September 30, 2017 December 31, 2016 Installment note payable to bank; interest rate of 1.60%, due in monthly installments of $2,775, including interest, with final payment in March 2017 $ - $ 8,000 Installment note payable to bank; interest rate of 1.60%, due in monthly installments of $5,138, including interest, with final payment in April 2017 - 21,000 Installment note payable to bank; interest rate of 4.85%, due in quarterly installments of $7,699, including interest, with final payment in July 2017 - 23,000 Installment note payable to bank; interest rate of 4.23%, due in quarterly installments of $420, including interest, with final payment in August 2017 1,000 1,000 Installment note payable to bank; interest rate of 4.88%, due in monthly installments of $1,058, including interest, with final payment in October 2017 1,000 10,000 Installment note payable to bank; interest rate of 4.23%, due in quarterly installments ranging from $1,370, to $1,927, including interest, with final payment in February 2018 6,000 16,000 Installment note payable to bank; interest rate of 4.23%, due in quarterly installments of $141 including interest, with final payment in October 2018 2,000 3,000 Installment note payable to bank; interest rate of 1.80%, due in monthly installments of $456, including interest, with final payment in February 2019 8,000 12,000 Installment note payable to bank; interest rate of 4.23%, due in monthly installments of $1,339, including interest, with final payment in August 2019 30,000 40,000 Installment note payable to bank; interest rate of 4.37%, due in monthly installments of $42,121, including interest, with final payment in October 2019 359,000 471,000 Installment note payable to bank; interest rate of 4.23%, due in monthly installments of $9,935, including interest, with final payment in January 2019 154,000 - Installment note payable to bank; interest rate of 5.46%, due in monthly installments of $904, including interest, with final payment in December 2019 23,000 - Installment note payable to bank; interest rate of 5.46%, due in monthly installments of $4,364, including interest, with final payment in January 2020 114,000 - Installment note payable to bank; interest rate of 5.93%, due in monthly installments of $1,425, including interest, with final payment in February 2020 38,000 - Installment note payable to bank; interest rate of 5.56%, due in monthly installments of $2,925, including interest, with final payment in June 2020 89,000 - Installment note payable to bank; interest rate of 5.31%, due in quarterly installments of $327, including interest, with final payment in January 2021 79,000 - $ 904,000 $ 605,000 The notes are secured by specific equipment with a carrying value of approximately $1,152,000 as of September 30, 2017 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 maturities of notes payable for each of the periods subsequent to September 30, 2017 are as follows: Amount Three months ended December 31, 2017 $ 44,000 Year ended December 31, 2018 451,000 Year ended December 31, 2019 336,000 Year ended December 31, 2020 67,000 Year ended December 31, 2021 6,000 $ 904,000

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	9 Months Ended
	Sep. 30, 2017
Disclosure Text Block [Abstract]
Supplemental Cash Flow Information	No interest or principal on notes payable was paid by the Partnership because direct payment was made by lessee to the bank in lieu of collection of lease income and payment of interest and principal by the Partnership. Other noncash activities included in the determination of net loss are as follows: Nine months ended September 30, 2017 2016 Lease revenue net of interest expense on notes payable realized as a result of direct payment of principal by lessee to bank $ 390,000 $ 250,000 Noncash investing and financing activities include the following: Nine months ended September 30, 2017 2016 Debt assumed in connection with purchase of equipment $ 626,000 $ 571,000 Accrued expenses incurred in connection with purchase of technology equipment $ 73,000 $ 54,000 During the nine months ended September 30, 2017 and 2016, the Partnership wrote-off fully amortized acquisition and finance fees of approximately $37,000 and $25,000, respectively. During the nine months ended September 30, 2017 and 2016, the Partnership wrote-off fully depreciated equipment of approximately $147,000 and $0, respectively.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
Disclosure Text Block [Abstract]
Commitments and Contingencies	Medshare In January 2015, CCC, on behalf of the Funds, entered into a Purchase Agreement (“Purchase Agreement”) for the sale of the equipment to Medshare Technologies (“Medshare”) for approximately $3,400,000. The Partnership’s share of the sale proceeds was approximately $77,000. As of November 7, 2017, the Partnership has received approximately $53,000 of the approximate $77,000 sale proceeds and has recorded a reserve against the outstanding receivable of approximately $8,000. On April 3, 2015 Medshare was obligated to make payment in full and failed to do so. As a result, Medshare defaulted on its purchase agreement with CCC and was issued a demand letter for full payment of the equipment. On June 25, 2015, Medshare filed a lawsuit in Texas state court for breach of contract (“State Suit”). On June 26, 2015, Commonwealth filed a lawsuit in the Northern District of Texas against Medshare seeking payment in full and/or return of the Equipment and damages. In July 2016, CCC, on behalf of the Funds, entered into a $1,400,000 binding Settlement Agreement (“Settlement Agreement”) with Medshare and its principal owner, Chris Cleary (collectively referred to as “Defendants”), who are held jointly and severally liable for the entire settlement. On August 2, 2016, the Defendants made payment to CCC of an initial $200,000 to be followed by 24 structured monthly payments of approximately $50,000 per month to begin no later than September 15, 2016. The Partnership’s share of the Settlement Agreement is approximately $23,000 and is to be applied against the net Medshare receivable of approximately $18,000 as of the settlement date. The remaining $5,000 will be applied against the $7,000 reserve and recorded as a bad debt recovery. As of August 2, 2017, the Partnership received approximately $7,000 of the approximate $23,000 settlement agreement which was applied against the net Medshare receivable of approximately $18,000 as of the settlement date. As Defendant defaulted on settlement agreement, CCC sought and obtained consent judgement from U.S. District Court for Northern District of Texas, Dallas Division on July 27, 2017 in the amount of $1.5 million, less $450,000 previously paid plus $6,757 in attorney fees, both Defendant and Cleary being jointly and severally liable for judgement amount. The court also vacated the September 21, 2016 settlement dismissal. On July 27, 2017 Defendant filed Chapter 11 in Northern District of Texas Dallas Division, an initial meeting of creditors is set for August 25, 2017. On July 26, 2017 Legacy Texas Bank, a secured creditor of Defendant filed for a TRO from U.S. District Court for Northern District of Texas, Dallas Division on July 27, 2017 with request for appointment of trustee for operation of Defendant, the hearing was held August 7, 2017. The Partnership’s share of the judgment would be approximately $486,000. Based on discussions with counsel, management believes that the likelihood of loss is remote and recovery may be pursued directly against Cleary. As such, management believes that the foregoing may not result in any adverse financial impact on the Funds, but no assurance can be provided until the proceedings are resolved. 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. That 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 has allocated approximately $87,000 of the $208,000 in allegedly misallocated expenses back to the affected funds as a contingency accrual in CCC’s financial statements and a good faith payment for the benefit of those Income Funds. Decisions issued by FINRA's Office of Hearing Officers may be appealed to FINRA's National Adjudicatory Council (NAC) pursuant to FINRA Rule 9311. The NAC Decision upheld the Panel’s ruling. The bar took effect on August 23, 2016. Ms. Springsteen-Abbott appealed the NAC Decision to the SEC. On March 31, 2017, the SEC 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 reaffirmed its position on the bar from the securities industry, but reduced the list of 1,840 items totaling $208,000 to a remaining list of 84 items totaling $36,226, and reduced the proposed fine from $100,000 to $50,000. On August 14, 2017 respondents appealed FINRA’s revised ruling. As of September 14, 2017, management believes that final resolution will not result in any material adverse financial impact on the Funds, but no assurance can be provided until the legal matter is resolved. Ms. Springsteen-Abbott has filed a Notice of Appeal and Preliminary Statement with the SEC.

Summary of Significant Accoun14

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
Policy Text Block [Abstract]
Basis of Presentation	The financial information presented as of any date other than December 31, 2016 has been prepared from the books and records without audit. The following unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Financial information as of December 31, 2016 has been derived from the audited financial statements of the Partnership, but does not include all disclosures required by generally accepted accounting principles to be included in audited financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the financial information for the periods indicated, have been included. Operating results for the nine months ended September 30, 2017 are not necessarily indicative of financial results that may be expected for the full year ended December 31, 2017.
Disclosure of Fair Value 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 and cash equivalents, receivables, accounts payable and accrued expenses and other liabilities are carried at amounts which reasonably approximate their fair values as of September 30, 2017 and December 31, 2016 due to the 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 September 30, 2017 and December 31, 2016 approximates the carrying value of these instruments, due to the interest rates on the 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.
Cash and cash equivalents	We consider cash equivalents to be highly liquid investments with an original maturity of 90 days or less. At September 30, 2017, cash and cash equivalents was held in two accounts maintained at one financial institution with an aggregate balance of approximately $16,000. Bank accounts are federally insured up to $250,000 by the FDIC. At September 30, 2017, the total cash balance was as follows: At September 30, 2017 Balance Total bank balance $ 16,000 FDIC insured (16,000 ) Uninsured amount $ - The Partnership believes it mitigates the risk of holding uninsured deposits by only depositing funds with major financial institutions. The Partnership has not experienced any losses in our accounts, and believes it is not exposed to any significant credit risk. The amounts in such accounts will fluctuate throughout 2017 due to many factors, including cash receipts, equipment acquisitions, interest rates and distributions to limited partners.
Recent Accounting Pronouncements	In October 2016, the FASB issued Accounting Standards Update 2016-17 — Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control.
Recent Accounting Pronouncements Not Yet Adopted	In August 2016, the FASB issued Accounting Standards Update 2016-15— Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) Section A—Leases: Amendments to the FASB Accounting Standards Codification® Section B—Conforming Amendments Related to Leases: Amendments to the FASB Accounting Standards Codification® Section C—Background Information and Basis for Conclusions In January 2016, the FASB issued Accounting Standards Update No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities

Summary of Significant Accoun15

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2017
Table Text Block Supplement [Abstract]
Schedule of Cash and Cash Equivalents	At September 30, 2017 Balance Total bank balance $ 16,000 FDIC insured (16,000 ) Uninsured amount $ -

Information Technology, Medic16

Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment (Tables)	9 Months Ended
	Sep. 30, 2017
Table Text Block Supplement [Abstract]
Schedule of future minimum rentals on non-cancellable operating leases	For the period ended December Amount Three months ended December 31, 2017 $ 268,000 Year Ended December 31, 2018 734,000 Year Ended December 31, 2019 545,000 Year Ended December 31, 2020 255,000 Year Ended December 31, 2021 52,000 $ 1,854,000
Net investment in direct financing leases	September 30, 2017 December 31, Total minimum lease payments to be received $ 10,000 $ 44,000 Estimated residual value of leased equipment (unguaranteed) 20,000 20,000 Less: unearned income (2,000 ) (3,000 ) Initial direct costs finance leases - 1,000 Net investment in finance leases $ 28,000 $ 62,000
Finance lease risk level	Risk Level Percent of Total Low -% Moderate-Low -% Moderate -% Moderate-High 100% High -% Net finance lease receivable 100%
Schedule of future minimum rentals on non-cancelable direct financing leases	Amount Three months ended December 31, 2017 $ 5,000 2018 5,000 Total $ 10,000

Related Party Transactions (Tab

Related Party Transactions (Tables)	9 Months Ended
	Sep. 30, 2017
Table Text Block Supplement [Abstract]
Schedule of Related Party Transactions	Nine months ended September 30, 2017 2016 Reimbursable expenses The General Partner and its affiliates are entitled to reimbursement by the Partnership for the cost of goods, supplies or services obtained and used by the General Partner in connection with the administration and operation of the Partnership from third parties unaffiliated with the General Partner. In addition, the General Partner and its affiliates are entitled to reimbursement of certain expenses incurred by the General Partner and its affiliates in connection with the administration and operation of the Partnership. For the nine months ended September 30, 2017 and 2016, the Partnership was charged approximately $110,000 and $158,000 in Other LP expense, respectively. $ 287,000 $ 384,000 Equipment acquisition fee The General Partner earned an equipment acquisition fee of 4% of the purchase price of each item of equipment purchased as compensation for the negotiation of the acquisition of the equipment and lease thereof or sale under a conditional sales contract. $ 35,000 $ 29,000 Equipment management fee The General Partner is entitled to be paid a monthly fee equal to the lesser of (a) the fees which would be charged by an independent third party in the same geographic market for similar services and equipment or (b) the sum of (i) two percent of gross lease revenues attributable to equipment subject to full payout net leases which contain net lease provisions and (ii) five percent of the gross lease revenues attributable to equipment subject to operating leases. Our general partner, based on its experience in the equipment leasing industry and current dealings with others in the industry, will use its business judgment to determine if a given fee is competitive, reasonable and customary. The amount of the fee will depend upon the amount of equipment we manage, which in turn will depend upon the amount we raise in this offering. Reductions in market rates for similar services would also reduce the amount of the fee we will receive. $ 39,000 $ 35,000 Debt placement fee As compensation for arranging term debt to finance our acquisition of equipment, we will pay the general partner a fee equal to one percent of such indebtedness; provided, however, that such fee shall be reduced to the extent we incur such fees to third parties unaffiliated with the general partner or the lender with respect to such indebtedness. No such fee will be paid with respect to borrowings from the general partner or its affiliates. We intend to initially acquire leases on an all cash basis with the proceeds of this offering, but may borrow funds after the offering proceeds have been invested. The amount we borrow, and therefore the amount of the fee, will depend upon interest rates at the time of a loan, and the amount of leverage we determine is appropriate at the time. We do not intend to use more than 30% leverage overall in our portfolio. Fees will increase as the amount of leverage we use increases, and as turnover in the portfolio increases and additional equipment is purchased using leverage. $ 7,000 $ 6,000

Notes Payable (Tables)

Notes Payable (Tables)	9 Months Ended
	Sep. 30, 2017
Table Text Block Supplement [Abstract]
Notes Payable	September 30, 2017 December 31, 2016 Installment note payable to bank; interest rate of 1.60%, due in monthly installments of $2,775, including interest, with final payment in March 2017 $ - $ 8,000 Installment note payable to bank; interest rate of 1.60%, due in monthly installments of $5,138, including interest, with final payment in April 2017 - 21,000 Installment note payable to bank; interest rate of 4.85%, due in quarterly installments of $7,699, including interest, with final payment in July 2017 - 23,000 Installment note payable to bank; interest rate of 4.23%, due in quarterly installments of $420, including interest, with final payment in August 2017 1,000 1,000 Installment note payable to bank; interest rate of 4.88%, due in monthly installments of $1,058, including interest, with final payment in October 2017 1,000 10,000 Installment note payable to bank; interest rate of 4.23%, due in quarterly installments ranging from $1,370, to $1,927, including interest, with final payment in February 2018 6,000 16,000 Installment note payable to bank; interest rate of 4.23%, due in quarterly installments of $141 including interest, with final payment in October 2018 2,000 3,000 Installment note payable to bank; interest rate of 1.80%, due in monthly installments of $456, including interest, with final payment in February 2019 8,000 12,000 Installment note payable to bank; interest rate of 4.23%, due in monthly installments of $1,339, including interest, with final payment in August 2019 30,000 40,000 Installment note payable to bank; interest rate of 4.37%, due in monthly installments of $42,121, including interest, with final payment in October 2019 359,000 471,000 Installment note payable to bank; interest rate of 4.23%, due in monthly installments of $9,935, including interest, with final payment in January 2019 154,000 - Installment note payable to bank; interest rate of 5.46%, due in monthly installments of $904, including interest, with final payment in December 2019 23,000 - Installment note payable to bank; interest rate of 5.46%, due in monthly installments of $4,364, including interest, with final payment in January 2020 114,000 - Installment note payable to bank; interest rate of 5.93%, due in monthly installments of $1,425, including interest, with final payment in February 2020 38,000 - Installment note payable to bank; interest rate of 5.56%, due in monthly installments of $2,925, including interest, with final payment in June 2020 89,000 - Installment note payable to bank; interest rate of 5.31%, due in quarterly installments of $327, including interest, with final payment in January 2021 79,000 - $ 904,000 $ 605,000
Aggregate maturities of notes payable	Amount Three months ended December 31, 2017 $ 44,000 Year ended December 31, 2018 451,000 Year ended December 31, 2019 336,000 Year ended December 31, 2020 67,000 Year ended December 31, 2021 6,000 $ 904,000

Supplemental Cash Flow Inform19

Supplemental Cash Flow Information (Tables)	9 Months Ended
	Sep. 30, 2017
Table Text Block Supplement [Abstract]
Other noncash activities	Nine months ended September 30, 2017 2016 Lease revenue net of interest expense on notes payable realized as a result of direct payment of principal by lessee to bank $ 390,000 $ 250,000
Noncash investing and financing activities	Nine months ended September 30, 2017 2016 Debt assumed in connection with purchase of equipment $ 626,000 $ 571,000 Accrued expenses incurred in connection with purchase of technology equipment $ 73,000 $ 54,000

Business (Details)

Business (Details)	9 Months Ended
	Sep. 30, 2017
Text Block [Abstract]
Entity Incorporation, State Country Name	Commonwealth of Pennsylvania

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Details)	Sep. 30, 2017USD ($)
Text Block [Abstract]
Total bank balance	$ 16,000
FDIC insured	(16,000)
Uninsured amount	$ 0

Information Technology, Medic22

Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment (Details)	Sep. 30, 2017USD ($)
Text Block [Abstract]
Three months ended December 31, 2017	$ 268,000
Year Ended December 31, 2018	734,000
Year Ended December 31, 2019	545,000
Year Ended December 31, 2020	255,000
Year Ended December 31, 2021	52,000
Total	$ 1,854,000

Information Technology, Medic23

Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment (Details 1) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Text Block [Abstract]
Total minimum lease payments to be received	$ 1,000	$ 44,000
Estimated residual value of leased equipment (unguaranteed)	20,000	20,000
Initial direct costs finance leases	(2,000)	1,000
Less: unearned income	0	(3,000)
Net investment in finance leases	$ 28,000	$ 62,000

Information Technology, Medic24

Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment (Details 2)	Sep. 30, 2017
Text Block [Abstract]
Low	0.00%
Moderate-Low	0.00%
Moderate	0.00%
Moderate-High	100.00%
High	0.00%
Net finance lease receivable	100.00%

Information Technology, Medic25

Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment (Details 3)	Sep. 30, 2017USD ($)
Text Block [Abstract]
Three months ended December 31, 2017	$ 5,000
2,018	5,000
Total	$ 10,000

Information Technology, Medic26

Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Text Block [Abstract]
Remarketing Fees Incurred	$ 0	$ 4,000
Equipment Shared	4,922,000		$ 4,517,000
Total Shared Equipment	13,697,000		10,060,000
Debt Shared	362,000		33,000
Outstanding Debt Total	$ 2,859,000		$ 96,000

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Text Block [Abstract]
Other LP Expense	$ 110,000	$ 158,000
Reimbursable Expenses	287,000	384,000
Equipment Acquisition Fees	35,000	29,000
Equipment Management Fee	39,000	35,000
Debt placement fees	$ 7,000	$ 6,000

Notes Payable (Details)

Notes Payable (Details) - USD ($)	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Long-term Debt, Gross	$ 904,000	$ 605,000
Note 1
Debt Instrument, Description	Installment note payable to bank; interest rate of 1.60%, due in monthly installments of $2,775, including interest, with final payment in March 2017
Long-term Debt, Gross	$ 0	8,000
Note 2
Debt Instrument, Description	Installment note payable to bank; interest rate of 1.60%, due in monthly installments of $5,138, including interest, with final payment in April 2017
Long-term Debt, Gross	$ 0	21,000
Note 3
Debt Instrument, Description	Installment note payable to bank; interest rate of 4.85%, due in quarterly installments of $7,699, including interest, with final payment in July 2017
Long-term Debt, Gross	$ 0	23,000
Note 4
Debt Instrument, Description	Installment note payable to bank; interest rate of 4.23%, due in quarterly installments of $420, including interest, with final payment in August 2017
Long-term Debt, Gross	$ 1,000	1,000
Note 5
Debt Instrument, Description	Installment note payable to bank; interest rate of 4.88%, due in monthly installments of $1,058, including interest, with final payment in October 2017
Long-term Debt, Gross	$ 1,000	10,000
Note 6
Debt Instrument, Description	Installment note payable to bank; interest rate of 4.23%, due in quarterly installments ranging from $1,370, to $1,927, including interest, with final payment in February 2018
Long-term Debt, Gross	$ 6,000	16,000
Note 7
Debt Instrument, Description	Installment note payable to bank; interest rate of 4.23%, due in quarterly installments of $141 including interest, with final payment in October 2018
Long-term Debt, Gross	$ 2,000	3,000
Note 8
Debt Instrument, Description	Installment note payable to bank; interest rate of 1.80%, due in monthly installments of $456, including interest, with final payment in February 2019
Long-term Debt, Gross	$ 8,000	12,000
Note 9
Debt Instrument, Description	Installment note payable to bank; interest rate of 4.23%, due in monthly installments of $1,339, including interest, with final payment in August 2019
Long-term Debt, Gross	$ 30,000	40,000
Note 10
Debt Instrument, Description	Installment note payable to bank; interest rate of 4.37%, due in monthly installments of $42,121, including interest, with final payment in October 2019
Long-term Debt, Gross	$ 359,000	471,000
Note 11
Debt Instrument, Description	Installment note payable to bank; interest rate of 4.23%, due in monthly installments of $9,935, including interest, with final payment in January 2019
Long-term Debt, Gross	$ 154,000	0
Note 12
Debt Instrument, Description	Installment note payable to bank; interest rate of 5.46%, due in monthly installments of $904, including interest, with final payment in December 2019
Long-term Debt, Gross	$ 23,000	0
Note 13
Debt Instrument, Description	Installment note payable to bank; interest rate of 5.46%, due in monthly installments of $4,364, including interest, with final payment in January 2020
Long-term Debt, Gross	$ 114,000	0
Note 14
Debt Instrument, Description	Installment note payable to bank; interest rate of 5.93%, due in monthly installments of $1,425, including interest, with final payment in February 2020
Long-term Debt, Gross	$ 38,000	0
Note 15
Debt Instrument, Description	Installment note payable to bank; interest rate of 5.56%, due in monthly installments of $2,925, including interest, with final payment in June 2020
Long-term Debt, Gross	$ 89,000	0
Note 16
Debt Instrument, Description	Installment note payable to bank; interest rate of 5.31%, due in quarterly installments of $327, including interest, with final payment in January 2021
Long-term Debt, Gross	$ 79,000	$ 0

Notes Payable (Details 1)

Notes Payable (Details 1)	Sep. 30, 2017USD ($)
Text Block [Abstract]
Three months ended December 31, 2017	$ 44,000
Year ended December 31, 2018	451,000
Year ended December 31, 2019	336,000
Year ended December 31, 2020	67,000
Year ended December 31, 2021	6,000
Long-term Debt	$ 904,000

Notes Payable (Details Narrativ

Notes Payable (Details Narrative)	Sep. 30, 2017USD ($)
Text Block [Abstract]
Carrying Value - Equipment - Notes Payable	$ 1,152,000

Supplemental Cash Flow Inform31

Supplemental Cash Flow Information (Details) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Text Block [Abstract]
Lease revenue net of interest expense on notes payable realized as a result of direct payment of principal by lessee to bank	$ 390,000	$ 250,000

Supplemental Cash Flow Inform32

Supplemental Cash Flow Information (Details 1) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Text Block [Abstract]
Debt assumed in connection with purchase of equipment	$ 626,000	$ 571,000
Accrued expenses incurred in connection with the purchase of technology equipment	$ 73,000	$ 54,000

Supplemental Cash Flow Inform33

Supplemental Cash Flow Information (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Text Block [Abstract]
Fully Amortized Fees Written Off	$ 37,000	$ 25,000
Fully Depreciated Equipment Written Off	$ 147,000	$ 0