Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 08, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ICON Equipment & Corporate Infrastructure Fund Fourteen, L.P. | |
Entity Central Index Key | 1,446,806 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 258,761 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 20,411,636 | $ 19,452,937 |
Restricted cash | 1,360,712 | 1,500,000 |
Leased equipment at cost (less accumulated depreciation of $629,110 and $416,254, respectively) | 20,370,890 | 20,583,746 |
Net investment in notes receivable | 9,901,376 | 11,571,378 |
Note receivable from joint venture | 1,329,483 | 1,329,483 |
Investment in joint ventures | 9,225,447 | 9,441,801 |
Due from General Partner and affiliates, net | 49,864 | 0 |
Other assets | 3,662,979 | 3,228,015 |
Total assets | 112,810,264 | 114,131,272 |
Liabilities: | ||
Non-recourse long-term debt | 34,396,514 | 35,185,385 |
Deferred revenue | 2,337,105 | 1,467,325 |
Due to General Partner and affiliates, net | 0 | 204,430 |
Accrued expenses and other liabilities | 1,055,397 | 1,216,834 |
Total liabilities | 37,789,016 | 38,073,974 |
Commitments and contingencies (Note 10) | ||
Partners' equity: | ||
Limited partners | 76,563,045 | 77,588,121 |
General Partner | (1,549,455) | (1,539,101) |
Total partners' equity | 75,013,590 | 76,049,020 |
Noncontrolling interests | 7,658 | 8,278 |
Total equity | 75,021,248 | 76,057,298 |
Total liabilities and equity | 112,810,264 | 114,131,272 |
Vessels | ||
Assets | ||
Vessel (less accumulated depreciation of $1,502,123 and $976,088, respectively) | $ 46,497,877 | $ 47,023,912 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Vessel - accumulated depreciation | $ 1,502,123 | $ 976,088 |
Leased equipment - accumulated depreciation | $ 629,110 | $ 416,254 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenue and other income: | ||
Finance income | $ 358,343 | $ 347,661 |
Rental income | 277,556 | 4,920,447 |
Pool revenue | 1,253,248 | 0 |
Income from investment in joint ventures | 235,976 | 605,364 |
Other income | 11,087 | 8,000 |
Total revenue and other income | 2,136,210 | 5,881,472 |
Expenses: | ||
Management fees | 191,210 | 325,534 |
Administrative expense reimbursements | 318,342 | 320,975 |
General and administrative | 638,776 | 482,159 |
Credit loss, net | 0 | 9,842,317 |
Depreciation | 738,891 | 2,288,930 |
Interest | 452,838 | 1,401,057 |
Vessel operating expenses | 832,203 | 0 |
Loss on derivative financial instruments | 0 | 1,166,083 |
Total expenses | 3,172,260 | 15,827,055 |
Net loss | (1,036,050) | (9,945,583) |
Less: net (loss) income attributable to noncontrolling interests | (620) | 158,146 |
Net loss attributable to Fund Fourteen | (1,035,430) | (10,103,729) |
Net loss attributable to Fund Fourteen allocable to: | ||
Limited partners | (1,025,076) | (10,002,692) |
General Partner | (10,354) | (101,037) |
Net loss attributable to Fund Fourteen | $ (1,035,430) | $ (10,103,729) |
Weighted average number of limited partnership interests outstanding (in shares) | 258,761 | 258,761 |
Net loss attributable to Fund Fourteen per weighted average limited partnership interest outstanding (in dollars per share) | $ (3.96) | $ (38.66) |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - 3 months ended Mar. 31, 2017 - USD ($) | Total | Noncontrolling Interests | Limited Partners | General Partner | Partners' Equity |
Balance (in shares) at Dec. 31, 2016 | 258,761 | ||||
Balance at Dec. 31, 2016 | $ 76,057,298 | $ 8,278 | $ 77,588,121 | $ (1,539,101) | $ 76,049,020 |
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||
Net loss | (1,036,050) | (620) | (1,025,076) | (10,354) | $ (1,035,430) |
Balance (in shares) at Mar. 31, 2017 | 258,761 | ||||
Balance at Mar. 31, 2017 | $ 75,021,248 | $ 7,658 | $ 76,563,045 | $ (1,549,455) | $ 75,013,590 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Cash Flows [Abstract] | ||
Non cash gain loss on non designated derivatives | $ 0 | $ (596,801) |
Cash flows from operating activities: | ||
Net loss | (1,036,050) | (9,945,583) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Finance income, net of costs and fees | 42,002 | 23,356 |
Income from investment in joint ventures | (235,976) | (605,364) |
Depreciation | 738,891 | 2,288,930 |
Credit loss, net | 0 | 9,842,317 |
Interest expense from amortization of debt financing costs | 48,629 | 160,919 |
Changes in operating assets and liabilities: | ||
Restricted cash | 139,288 | 388,017 |
Other assets | (434,964) | 7,018 |
Accrued expenses and other liabilities | (161,437) | (290,324) |
Deferred revenue | 869,780 | (28,299) |
Due to/from General Partner and affiliates, net | (254,294) | (545,850) |
Distributions from joint ventures | 71,508 | 523,900 |
Net cash (used in) provided by operating activities | (212,623) | 2,415,838 |
Cash flows from investing activities: | ||
Principal received on finance leases | 0 | 1,680,000 |
Distributions received from joint ventures in excess of profits | 380,822 | 202,999 |
Principal received on notes receivable | 1,628,000 | 44,000 |
Net cash provided by investing activities | 2,008,822 | 1,926,999 |
Cash flows from financing activities: | ||
Repayment of non-recourse long-term debt | (837,500) | (6,342,121) |
Proceeds from revolving line of credit, recourse | 0 | 1,500,000 |
Distributions to partners | 0 | (5,227,505) |
Net cash used in financing activities | (837,500) | (10,069,626) |
Net increase (decrease) in cash and cash equivalents | 958,699 | (5,726,789) |
Cash and cash equivalents, beginning of period | 19,452,937 | 9,281,044 |
Cash and cash equivalents, end of period | 20,411,636 | 3,554,255 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | $ 404,843 | $ 2,087,724 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P. (the “Partnership”) was formed on August 20, 2008 as a Delaware limited partnership. When used in these notes to consolidated financial statements, the terms “we,” “us,” “our” or similar terms refer to the Partnership and its consolidated subsidiaries. We engaged in one business segment, the business of investing in business-essential equipment and corporate infrastructure (collectively, “Capital Assets”), including, but not limited to, Capital Assets that were already subject to lease, Capital Assets that we purchased and leased to domestic and international businesses, loans secured by Capital Assets and ownership rights to leased Capital Assets at lease expiration. Our general partner is ICON GP 14, LLC, a Delaware limited liability company (the “General Partner”), which is a wholly-owned subsidiary of ICON Capital, LLC, a Delaware limited liability company (“ICON Capital”). Our General Partner manages and controls our business affairs, including, but not limited to, our investments in Capital Assets. Our General Partner has engaged ICON Capital as our investment manager (the “Investment Manager”) to, among other things, facilitate the acquisition and servicing of our investments. Our operating period commenced on May 19, 2011 and ended on May 18, 2016. On May 19, 2016, we commenced our liquidation period, during which we have sold and will continue to sell our assets and/or let our investments mature in the ordinary course of business. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Consolidation Our accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for Quarterly Reports on Form 10-Q. In the opinion of our General Partner, all adjustments, which are of a normal recurring nature, considered necessary for a fair presentation have been included. These consolidated financial statements should be read together with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2016. The results for the interim period are not necessarily indicative of the results for the full year. Restricted Cash Cash that is restricted from use in operations is generally classified as restricted cash. Classification of changes in restricted cash within the consolidated statements of cash flows depends on the predominant source of the related cash flows. For the three months ended March 31, 2017 and 2016, the predominant cash generated from restricted cash was related to the release of restricted cash sourced from rental receipts associated with our leasing operations that was previously restricted pursuant to certain provisions in the applicable non-recourse long-term debt agreements. As a result, these changes in restricted cash were classified within cash flows from operating activities for both periods. Credit Quality of Notes Receivable and Finance Leases and Credit Loss Reserve Our Investment Manager monitors the ongoing credit quality of our financing receivables by (i) reviewing and analyzing a borrower’s financial performance on a regular basis, including review of financial statements received on a monthly, quarterly or annual basis as prescribed in the loan or lease agreement, (ii) tracking the relevant credit metrics of each financing receivable and a borrower’s compliance with financial and non-financial covenants, (iii) monitoring a borrower’s payment history and public credit rating, if available, and (iv) assessing our exposure based on the current investment mix. As part of the monitoring process, our Investment Manager may physically inspect the collateral or a borrower’s facility and meet with a borrower’s management to better understand such borrower’s financial performance and its future plans on an as-needed basis. As our financing receivables, generally notes receivable and finance leases, are limited in number, our Investment Manager is able to estimate the credit loss reserve based on a detailed analysis of each financing receivable as opposed to using portfolio-based metrics. Our Investment Manager does not use a system of assigning internal risk ratings to each of our financing receivables. Rather, each financing receivable is analyzed quarterly and categorized as either performing or non-performing based on certain factors including, but not limited to, financial results, satisfying scheduled payments and compliance with financial covenants. A financing receivable is usually categorized as non-performing only when a borrower experiences financial difficulties and has failed to make scheduled payments. Our Investment Manager then analyzes whether the financing receivable should be placed on a non-accrual status, a credit loss reserve should be established or the financing receivable should be restructured. As part of the assessment, updated collateral value is usually considered and such collateral value can be based on a third party industry expert appraisal or, depending on the type of collateral and accessibility to relevant published guides or market sales data, internally derived fair value. Material events would be specifically disclosed in the discussion of each financing receivable held. Financing receivables are generally placed on a non-accrual status when payments are more than 90 days past due. Additionally, our Investment Manager periodically reviews the creditworthiness of companies with payments outstanding less than 90 days and based upon our Investment Manager’s judgment, these accounts may be placed on a non-accrual status. In accordance with the cost recovery method, payments received on non-accrual financing receivables are applied to principal if there is doubt regarding the ultimate collectability of principal. If collection of the principal of non-accrual financing receivables is not in doubt, interest income is recognized on a cash basis. Financing receivables on non-accrual status may not be restored to accrual status until all delinquent payments have been received, and we believe recovery of the remaining unpaid receivable is probable. When our Investment Manager deems it is probable that we will not be able to collect all contractual principal and interest on a non-performing financing receivable, we perform an analysis to determine if a credit loss reserve is necessary. This analysis considers the estimated cash flows from the financing receivable, and/or the collateral value of the asset underlying the financing receivable when financing receivable repayment is collateral dependent. If it is determined that the impaired value of the non-performing financing receivable is less than the net carrying value, we will recognize a credit loss reserve or adjust the existing credit loss reserve with a corresponding charge to earnings. We then charge off a financing receivable in the period that it is deemed uncollectible by reducing the credit loss reserve and the balance of the financing receivable. Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-05, Derivatives and Hedging: Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships (“ASU 2016-05”), which clarifies that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument does not, in and of itself, require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. We adopted ASU 2016-05 on January 1, 2017, which did not have an effect on our consolidated financial statements. In March 2016, FASB issued ASU No. 2016-07, Investments – Equity Method and Joint Ventures: Simplifying the Transition to the Equity Method of Accounting (“ASU 2016-07”), which eliminates the retroactive adjustments to an investment upon it qualifying for the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence by the investor. ASU 2016-07 requires that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment qualifies for equity method accounting. We adopted ASU 2016-07 on January 1, 2017, which did not have an effect on our consolidated financial statements. In October 2016, FASB issued ASU No. 2016-17, Consolidation (“ASU 2016-17”), which amends the consolidation guidance on how a reporting entity that is the single decision maker of a variable interest entity should treat indirect interests in such entity held by related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that variable interest entity. Under ASU 2016-17, a single decision maker is not required to consider indirect interests held by related parties that are under common control with the single decision maker to be the equivalent of direct interests in their entirety. We adopted ASU 2016-17 on January 1, 2017, which did not have an effect on our consolidated financial statements. Other Recent Accounting Pronouncements In May 2014, FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), requiring revenue to be recognized in an amount that reflects the consideration expected to be received in exchange for goods and services. This new revenue standard may be applied retrospectively to each prior period presented, or retrospectively with the cumulative effect recognized as of the date of adoption. In August 2015, FASB issued ASU No. 2015-14, Revenue from Contracts with Customers – Deferral of the Effective Date (“ASU 2015-14”), which defers implementation of ASU 2014-09 by one year. Under such deferral, the adoption of ASU 2014-09 becomes effective for us on January 1, 2018, including interim periods within that reporting period. Early adoption is permitted, but not before our original effective date of January 1, 2017. Our evaluation of the impact of the adoption of ASU 2014-09 on our consolidated financial statements is ongoing and our implementation efforts have included the identification of revenue within the scope of the guidance and the evaluation of applicable revenue contracts. We continue to evaluate the timing of recognition of various revenue; however, since a substantial portion of our revenue is recognized from our leasing contracts, which is subject to ASU 2016-02 (as defined below), such revenue is excluded from our evaluation of ASU 2014-09. In January 2016, FASB issued ASU No. 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which provides guidance related to accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The adoption of ASU 2016-01 becomes effective for us on January 1, 2018, including interim periods within that reporting period. We are currently in the process of evaluating the impact of the adoption of ASU 2016-01 on our consolidated financial statements. In February 2016, FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”), which requires lessees to recognize assets and liabilities for leases with lease terms greater than twelve months on the balance sheet and disclose key information about leasing arrangements. ASU 2016-02 implements changes to lessor accounting focused on conforming with certain changes made to lessee accounting and the recently released revenue recognition guidance. The adoption of ASU 2016-02 becomes effective for us on January 1, 2019. Early adoption is permitted. Based on our preliminary assessment, most, if not all, of our leases are subject to lessor accounting and the accounting applied by a lessor is largely unchanged from that applied under current U.S. GAAP. We continue to evaluate the impact of the adoption of ASU 2016-02 on our consolidated financial statements. In June 2016, FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (“ASU 2016-13”), which modifies the measurement of credit losses by eliminating the probable initial recognition threshold set forth in current guidance, and instead reflects an entity’s current estimate of all expected credit losses. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity will apply the amendments within ASU 2016-13 through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The adoption of ASU 2016-13 becomes effective for us on January 1, 2020, including interim periods within that reporting period. Early adoption is permitted. We are currently in the process of evaluating the impact of the adoption of ASU 2016-13 on our consolidated financial statements. In August 2016, FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows. The adoption of ASU 2016-15 becomes effective for us on January 1, 2018, including interim periods within that reporting period. Early adoption is permitted. An entity will apply the amendments within ASU 2016-15 using a retrospective transition method to each period presented. We are currently in the process of evaluating the impact of the adoption of ASU 2016-15 on our consolidated financial statements. In November 2016, FASB issued ASU No. 2016-18, Statement of Cash Flows (“ASU 2016-18”), which provides guidance on the presentation of restricted cash or restricted cash equivalents in the statement of cash flows. The adoption of ASU 2016-18 becomes effective for us on January 1, 2018, including interim periods within that reporting period. Early adoption is permitted. An entity will apply the amendments within ASU 2016-18 using a retrospective transition method to each period presented. We are currently in the process of evaluating the impact of the adoption of ASU 2016-18 on our consolidated financial statements. In January 2017, FASB issued ASU No. 2017-01, Business Combinations (“ASU 2017-01”), which clarifies the definition of a business. ASU 2017-01 sets forth requirements to be met for a set to be deemed a business and establishes a practical way to determine when a set is not a business. To be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create an output, and removes the evaluation of whether a market participant could replace missing elements. In addition, ASU 2017-01 narrows the definition of outputs and aligns such definition with how outputs are described within the revenue guidance. The adoption of ASU 2017-01 becomes effective for us on January 1, 2018, including interim periods within that reporting period. Early adoption is permitted for transactions that occur before the issuance date or effective date of ASU 2017-01 to the extent that such transactions have not been reported in financial statements that have been issued or made available for issuance. We are currently in the process of evaluating the impact of the adoption of ASU 2017-01 on our consolidated financial statements. |
Net Investment in Notes Receiva
Net Investment in Notes Receivable | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Net Investment in Notes Receivable | Net Investment in Notes Receivable As of March 31, 2017 and December 31, 2016 , we had net investment in notes receivable on non-accrual status of $33,393,546 , which had been fully reserved. As of March 31, 2017 and December 31, 2016, our note receivable related to Jurong Aromatics Corporation Pte. Ltd. (“JAC”) totaled $33,393,546 , which had been fully reserved. On December 22, 2011, a joint venture owned 75% by us and 25% by ICON Leasing Fund Twelve Liquidating Trust (formerly, ICON Leasing Fund Twelve, LLC) (“Fund Twelve”), an entity also managed by our Investment Manager, made a $20,124,000 subordinated term loan to JAC as part of a $171,050,000 term loan facility. The loan initially bore interest at rates ranging between 12.5% and 15% per year and matures in January 2021 . As a result of JAC’s failure to make an expected payment that was due to the joint venture during the three months ended March 31, 2015, the interest rate payable by JAC under the loan increased from 12.5% to 15.5% . The loan is secured by a second priority security interest in all of JAC’s assets, which include, among other things, all equipment, plant and machinery associated with a condensate splitter and aromatics complex. During 2015, JAC experienced liquidity constraints as a result of a general economic slow-down in China and India, which led to lower demand from such countries, as well as the price decline of energy and other commodities. As a result, JAC’s manufacturing facility ceased operations and JAC was not able to service interest payments under the loan. During the three months ended June 30, 2015, an expected tolling arrangement with JAC’s suppliers that would have allowed JAC’s manufacturing facility to resume operations did not commence as originally anticipated. Accordingly, our Investment Manager determined that there was doubt regarding our ultimate collectability of the loan. Commencing with the three months ended June 30, 2015, our Investment Manager placed the loan on non-accrual status, ceased recognizing finance income and began recording credit losses. Subsequently, discussions among the senior lenders and certain other stakeholders of JAC regarding a restructuring plan ended as the senior lenders did not agree to amendments to their credit facilities as part of the broader restructuring that was being contemplated. As a result, JAC entered receivership on September 28, 2015. In July 2016, the tolling arrangement was implemented and the manufacturing facility resumed operations. Although JAC's manufacturing facility has resumed operations, no debt payments have been made or are expected to be made by JAC to us while operating under the tolling arrangement. As part of the tolling arrangement and the receivership process, JAC incurred additional senior debt, which could be up to $55,000,000 , to fund its operations as well as any receivership-related costs. As a result, as of June 30, 2016, our Investment Manager determined that we should fully reserve the outstanding balance of the loan due from JAC. During the fourth quarter of 2016, the Receiver formally commenced the process of marketing JAC's manufacturing facility for sale. Our Investment Manager continues to closely monitor the operations of JAC, the receivership process and the marketing process for sale of the manufacturing facility through regular communications with the Receiver and certain other stakeholders. We did not recognize any finance income for the three months ended March 31, 2017 and 2016. As of March 31, 2017 and December 31, 2016 , our net investment in note receivable related to JAC was $0 . As of March 31, 2017 , our net investment in note receivable and accrued interest related to four affiliates of Técnicas Maritimas Avanzadas, S.A. de C.V. (collectively, “TMA”) totaled $ 3,500,490 and $ 1,064,668 , respectively, of which an aggregate of $ 1,595,867 was over 90 days past due. As of December 31, 2016 , our net investment in note receivable and accrued interest related to TMA totaled $ 3,500,490 and $ 953,389 , respectively, of which an aggregate of $ 1,380,312 was over 90 days past due. TMA has been in technical default due to its failure to cause all four platform supply vessels to be under contract by March 31, 2015 and in payment default while available cash has been swept by the senior lender and applied to the senior tranche of the facility (the "Senior Loan") in accordance with the secured term loan credit facility agreement. As a result, the principal balance of the Senior Loan was paid down at a faster rate. In January 2016, the remaining two previously unchartered vessels had commenced employment. Based on, among other things, TMA’s payment history and estimated collateral value as of March 31, 2017 , our Investment Manager continues to believe that all contractual interest and outstanding principal payments under our tranche of the facility (the "ICON Loan") are collectible. As a result, we continue to account for our net investment in note receivable related to TMA on an accrual basis despite a portion of the outstanding balance being over 90 days past due. As of March 31, 2017 and December 31, 2016 , our share of the collateral value, net of the balance of the Senior Loan, was estimated to be approximately $ 1,200,000 and $ 800,000 , respectively. Interest on the ICON Loan is currently being accrued. Net investment in notes receivable consisted of the following: March 31, 2017 December 31, 2016 Principal outstanding (1) $ 42,071,502 $ 43,699,502 Initial direct costs 2,319,746 2,414,038 Deferred fees (1,096,326 ) (1,148,616 ) Credit loss reserve (2) (33,393,546 ) (33,393,546 ) Net investment in notes receivable (3) $ 9,901,376 $ 11,571,378 (1) As of March 31, 2017 and December 31, 2016 , total principal outstanding related to our impaired loan of $31,788,011 was related to JAC. (2) As of March 31, 2017 and December 31, 2016 , the credit loss reserve of $33,393,546 was related to JAC. (3) As of March 31, 2017 and December 31, 2016 , net investment in note receivable related to our impaired loan was $0 . On January 24, 2017 , Asphalt Carrier Shipping Company Limited ("Asphalt") satisfied its obligations in connection with a secured term loan scheduled to mature on December 31, 2018 by making a prepayment of $1,731,830 , comprised of all outstanding principal, accrued interest and a prepayment fee of $81,400 . The prepayment fee was recognized as additional finance income. Credit loss allowance activities for the three months ended March 31, 2017 were as follows: Credit Loss Allowance Allowance for credit loss as of December 31, 2016 $ 33,393,546 Provisions — Write-offs, net of recoveries — Allowance for credit loss as of March 31, 2017 $ 33,393,546 Credit loss allowance activities for the three months ended March 31, 2016 were as follows: Credit Loss Allowance Allowance for credit loss as of December 31, 2015 $ 28,621,458 Provisions — Write-offs, net of recoveries — Allowance for credit loss as of March 31, 2016 $ 28,621,458 |
Leased Equipment at Cost
Leased Equipment at Cost | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Leased Equipment at Cost | Leased Equipment at Cost Leased equipment at cost consisted of the following: March 31, 2017 December 31, 2016 Marine - dry bulk vessels $ 21,000,000 $ 21,000,000 Leased equipment at cost 21,000,000 21,000,000 Less: accumulated depreciation 629,110 416,254 Leased equipment at cost, less accumulated depreciation $ 20,370,890 $ 20,583,746 Depreciation expense was $212,856 and $2,288,930 for the three months ended March 31, 2017 and 2016 , respectively. Vessel On July 14, 2016, we entered the Shamrock (f/k/a the Center) into a pooling arrangement, Stena Sonangol Suezmax Pool LLC (the "Stena Pooling Arrangement"), with other crude oil tankers owned by unaffiliated third parties. The term of the pooling arrangement is for at least 12 months , after which the time charter and participation of the vessel in the pool may be terminated by either party at any time. As part of the Stena Pooling Arrangement, we are entitled to receive a monthly distribution, calculated on a time charter equivalent basis, whereby net pool earnings are allocated to each pool participant according to an agreed upon formula based on, among other things, the number of days a vessel operates in the pool and other technical characteristics, such as speed and fuel consumption. The Stena Pooling Arrangement also includes a shortfall provision that will require us to pay back a portion of the monthly distribution received upon certain criteria being met if we remove the vessel from the pool. The shortfall provision expires on July 14, 2018. At March 31, 2017 and December 31, 2016, the total amount subject to the shortfall provision of $ 2,337,105 and $ 1,467,325 , respectively, was recognized as deferred revenue on our consolidated balance sheets. Monthly distributions, net of the amount subject to the shortfall provision, are recognized as pool revenue on our consolidated statements of operations. Depreciation expense was $526,035 and $0 for the three months ended March 31, 2017 and 2016, respectively. |
Vessels
Vessels | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Vessels | Leased Equipment at Cost Leased equipment at cost consisted of the following: March 31, 2017 December 31, 2016 Marine - dry bulk vessels $ 21,000,000 $ 21,000,000 Leased equipment at cost 21,000,000 21,000,000 Less: accumulated depreciation 629,110 416,254 Leased equipment at cost, less accumulated depreciation $ 20,370,890 $ 20,583,746 Depreciation expense was $212,856 and $2,288,930 for the three months ended March 31, 2017 and 2016 , respectively. Vessel On July 14, 2016, we entered the Shamrock (f/k/a the Center) into a pooling arrangement, Stena Sonangol Suezmax Pool LLC (the "Stena Pooling Arrangement"), with other crude oil tankers owned by unaffiliated third parties. The term of the pooling arrangement is for at least 12 months , after which the time charter and participation of the vessel in the pool may be terminated by either party at any time. As part of the Stena Pooling Arrangement, we are entitled to receive a monthly distribution, calculated on a time charter equivalent basis, whereby net pool earnings are allocated to each pool participant according to an agreed upon formula based on, among other things, the number of days a vessel operates in the pool and other technical characteristics, such as speed and fuel consumption. The Stena Pooling Arrangement also includes a shortfall provision that will require us to pay back a portion of the monthly distribution received upon certain criteria being met if we remove the vessel from the pool. The shortfall provision expires on July 14, 2018. At March 31, 2017 and December 31, 2016, the total amount subject to the shortfall provision of $ 2,337,105 and $ 1,467,325 , respectively, was recognized as deferred revenue on our consolidated balance sheets. Monthly distributions, net of the amount subject to the shortfall provision, are recognized as pool revenue on our consolidated statements of operations. Depreciation expense was $526,035 and $0 for the three months ended March 31, 2017 and 2016, respectively. |
Investment in Joint Ventures
Investment in Joint Ventures | 3 Months Ended |
Mar. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Joint Ventures | Investment in Joint Ventures On December 19, 2011, a joint venture owned 40% by us and 60% by ICON ECI Fund Fifteen, L.P., an entity also managed by our Investment Manager, agreed to purchase an offshore support vessel, the AMC Ambassador (f/k/a the Lewek Ambassador), from Ezram LLC, a wholly-owned subsidiary of Ezra Holdings Limited ("Ezra"). The joint venture entered into a bareboat charter with Gallatin Marine Management, LLC ("Gallatin") for a period of nine years to commence on the delivery date of the vessel. Gallatin's obligations under the bareboat charter are guaranteed by Ezra. The vessel was delivered on June 4, 2012 and the purchase price was set at $24,869,000 . The joint venture financed the purchase price through a combination of related party notes payable, non-recourse long-term debt and equity. In May 2016, Gallatin began paying its monthly charter payments late and all charter payments ceased since the payment due in December 2016. In December 2016, Ezra hired a restructuring advisor. In January 2017, our Investment Manager was informed that, following a deterioration of Ezra’s and its affiliated companies’ financial condition during the fourth quarter of 2016, payments under the bareboat charter could no longer be reasonably expected to be made. On February 6, 2017, EMAS Chiyoda Subsea Limited (“EMAS”), the time charterer of the vessel, filed a petition in Singapore to wind up and liquidate the company. In addition, Ezra may become subject to a winding up order in Singapore. On February 27, 2017, both Gallatin and EMAS commenced voluntary Chapter 11 proceedings in the Bankruptcy Court in the Southern District of Texas. On March 7, 2017, Gallatin and EMAS filed a motion with the bankruptcy court to reject the bareboat and time charters. On March 18, 2017, Ezra commenced a voluntary Chapter 11 proceeding in the Bankruptcy Court in the Southern District of New York. Consequently, as of December 31, 2016, our Investment Manager assessed the joint venture’s collectability of the finance lease based on the estimated fair market value of the vessel provided by an independent third party appraiser. As a result, the joint venture recorded a credit loss of $7,271,958 to write down its net investment in finance lease related to the vessel to $ 8,000,000 . We were only allocated $1,306,625 of such credit loss as our investment in the joint venture was written down to zero . During the three months ended December 31, 2016, the joint venture placed the lease on non-accrual status and ceased to recognize finance income. For the three months ended March 31, 2017 and 2016, the joint venture recognized finance income of $0 and $499,406 , respectively, of which no amount was recognized on a cash basis, prior to the finance lease being considered impaired. As of March 31, 2017 and December 31, 2016, our total net investment in joint venture related to the AMC Ambassador was $0 . In April 2017, the bankruptcy court approved the motion filed by Gallatin and EMAS to reject the bareboat and time charters with an effective date of March 12, 2017. As a result, the bareboat and time charters were deemed terminated as of such date. Our Investment Manager is currently in the process of taking physical possession of the vessel and seeking new charter proposals to re-employ the vessel. |
Non-Recourse Long-Term Debt
Non-Recourse Long-Term Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Non-Recourse Long-Term Debt | Non-Recourse Long-Term Debt As of March 31, 2017 and December 31, 2016 , we had the following non-recourse long-term debt: Counterparty March 31, 2017 December 31, 2016 Maturity Rate DVB Bank SE $ 35,025,000 $ 35,862,500 2021 LIBOR + 3.50% and LIBOR + 3.85% Less: debt issuance costs 628,486 677,115 Total non-recourse long-term debt $ 34,396,514 $ 35,185,385 As of March 31, 2017 and December 31, 2016 , our non-recourse long-term debt obligations were $34,396,514 and $ 35,185,385 , respectively. All of our non-recourse long-term debt obligations consist of notes payable in which the lender has a security interest in the underlying assets. If the borrower was to default on the underlying lease or loan, resulting in our default on the non-recourse long-term debt, the assets could be foreclosed upon and the proceeds would be remitted to the lender in extinguishment of that debt. As of March 31, 2017 and December 31, 2016 , the total carrying value of assets subject to non-recourse long-term debt was $66,868,767 and $67,607,658 , respectively. As of March 31, 2017 , we were in compliance with the covenants related to our non-recourse long-term debt. For the three months ended March 31, 2017 and 2016 , we recognized additional interest expense of $48,629 and $155,438 , respectively, related to the amortization of debt financing costs. |
Transactions with Related Parti
Transactions with Related Parties | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | Transactions with Related Parties We paid distributions to our General Partner of $0 and $52,275 for the three months ended March 31, 2017 and 2016 , respectively. Our General Partner’s interest in the net loss attributable to us was $10,354 and $101,037 for the three months ended March 31, 2017 and 2016 , respectively. Effective May 1, 2017, our Investment Manager has waived all future management fees. Fees and other expenses incurred by us to our General Partner or its affiliates were as follows: Three Months Ended March 31, Entity Capacity Description 2017 2016 ICON Capital, LLC Investment Manager Management fees (1) $ 191,210 $ 325,534 ICON Capital, LLC Investment Manager Administrative expense reimbursements (1) 318,342 320,975 $ 509,552 $ 646,509 (1) Amount charged directly to operations. At March 31, 2017 , we had a net receivable of $49,864 due from our General Partner and affiliates, which primarily consisted of administrative expense reimbursements due from our Investment Manager. At December 31, 2016 , we had a net payable of $204,430 due to our General Partner and affiliates, which primarily consisted of administrative expense reimbursements due to our Investment Manager. At March 31, 2017 and December 31, 2016, we had a note receivable from a joint venture of $1,329,483 , after netting a credit loss reserve of $ 1,514,498 . During the three months ended December 31, 2016, the joint venture wrote down its net investment in finance lease (see Note 6). As a result, our Investment Manager assessed the collectability of the note receivable due from the joint venture by considering the fair market value of the vessel and the balance of the joint venture’s non-recourse long-term debt associated with the vessel, which has priority over our related party note receivable. A credit loss reserve of $ 1,514,498 was recorded based on such assessment and the related party note receivable was placed on non-accrual status during the three months ended December 31, 2016 . We did no t recognize any interest income for the three months ended March 31, 2017 . For the three months ended March 31, 2016 , we recognized interest income of $ 102,369 , of which no amount was recognized on a cash basis. The interest income is included in finance income on our consolidated statements of operations. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: · Level 1: Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. · Level 2: Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. · Level 3: Pricing inputs that are generally unobservable and are supported by little or no market data. Assets for which Fair Value is Disclosed Our fixed-rate notes receivable, for which fair value is required to be disclosed, were valued using inputs that are generally unobservable and are supported by little or no market data and are therefore classified within Level 3. Under U.S. GAAP, we use projected cash flows for fair value measurements of these financial assets. Fair value information with respect to certain of our other assets and liabilities is not separately provided since (i) U.S. GAAP does not require fair value disclosures of lease arrangements and (ii) the carrying value of financial assets and liabilities, other than lease-related investments, approximates fair value due to their short-term maturities and/or variable interest rates. The estimated fair value of our fixed-rate notes receivable was based on the discounted value of future cash flows related to the loans at inception, adjusted for changes in certain variables, including, but not limited to, credit quality, industry, financial markets and other recent comparables. The fair value of the principal outstanding on fixed-rate notes receivable was derived using discount rates ranging between 8.0% and 25.9% as of March 31, 2017 . March 31, 2017 Carrying Fair Value Value (Level 3) Principal outstanding on fixed-rate notes receivable $ 11,612,974 $ 11,113,749 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies At the time we acquire or divest our interest in Capital Assets, we may, under very limited circumstances, agree to indemnify the seller or buyer for specific contingent liabilities. Our General Partner believes that any liability of ours that may arise as a result of any such indemnification obligations may or may not have a material adverse effect on our consolidated financial condition or results of operations taken as a whole. In addition, at times we may seek to enforce our rights under a personal guaranty in order to collect amounts from the guarantor that are owed to us by a defaulting borrower or lessee. Gain contingencies may arise from enforcement of such guaranty, but are not recognized until realizable. We are currently seeking to recover a judgment issued in our favor against a guarantor covering amounts owed to us related to a secured term loan to Kanza Construction, Inc. (“Kanza”). On September 27, 2016, we commenced a legal proceeding against Center Navigation Ltd. (“Center Navigation”) and Geden Holdings Ltd. (“Geden”) seeking monetary damages incurred as a result of their failure to meet their payment and performance obligations under the charter and guaranty, respectively, related to the Center. In connection with certain debt obligations, we are required to maintain restricted cash balances with certain banks. At March 31, 2017 , we had restricted cash of $1,360,712 . |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation Our accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for Quarterly Reports on Form 10-Q. In the opinion of our General Partner, all adjustments, which are of a normal recurring nature, considered necessary for a fair presentation have been included. These consolidated financial statements should be read together with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2016. The results for the interim period are not necessarily indicative of the results for the full year. |
Cash and Cash Equivalents | Restricted Cash Cash that is restricted from use in operations is generally classified as restricted cash. Classification of changes in restricted cash within the consolidated statements of cash flows depends on the predominant source of the related cash flows. For the three months ended March 31, 2017 and 2016, the predominant cash generated from restricted cash was related to the release of restricted cash sourced from rental receipts associated with our leasing operations that was previously restricted pursuant to certain provisions in the applicable non-recourse long-term debt agreements. As a result, these changes in restricted cash were classified within cash flows from operating activities for both periods. |
Credit Quality of Notes Receivable and Finance Leases and Credit Loss Reserve | Credit Quality of Notes Receivable and Finance Leases and Credit Loss Reserve Our Investment Manager monitors the ongoing credit quality of our financing receivables by (i) reviewing and analyzing a borrower’s financial performance on a regular basis, including review of financial statements received on a monthly, quarterly or annual basis as prescribed in the loan or lease agreement, (ii) tracking the relevant credit metrics of each financing receivable and a borrower’s compliance with financial and non-financial covenants, (iii) monitoring a borrower’s payment history and public credit rating, if available, and (iv) assessing our exposure based on the current investment mix. As part of the monitoring process, our Investment Manager may physically inspect the collateral or a borrower’s facility and meet with a borrower’s management to better understand such borrower’s financial performance and its future plans on an as-needed basis. As our financing receivables, generally notes receivable and finance leases, are limited in number, our Investment Manager is able to estimate the credit loss reserve based on a detailed analysis of each financing receivable as opposed to using portfolio-based metrics. Our Investment Manager does not use a system of assigning internal risk ratings to each of our financing receivables. Rather, each financing receivable is analyzed quarterly and categorized as either performing or non-performing based on certain factors including, but not limited to, financial results, satisfying scheduled payments and compliance with financial covenants. A financing receivable is usually categorized as non-performing only when a borrower experiences financial difficulties and has failed to make scheduled payments. Our Investment Manager then analyzes whether the financing receivable should be placed on a non-accrual status, a credit loss reserve should be established or the financing receivable should be restructured. As part of the assessment, updated collateral value is usually considered and such collateral value can be based on a third party industry expert appraisal or, depending on the type of collateral and accessibility to relevant published guides or market sales data, internally derived fair value. Material events would be specifically disclosed in the discussion of each financing receivable held. Financing receivables are generally placed on a non-accrual status when payments are more than 90 days past due. Additionally, our Investment Manager periodically reviews the creditworthiness of companies with payments outstanding less than 90 days and based upon our Investment Manager’s judgment, these accounts may be placed on a non-accrual status. In accordance with the cost recovery method, payments received on non-accrual financing receivables are applied to principal if there is doubt regarding the ultimate collectability of principal. If collection of the principal of non-accrual financing receivables is not in doubt, interest income is recognized on a cash basis. Financing receivables on non-accrual status may not be restored to accrual status until all delinquent payments have been received, and we believe recovery of the remaining unpaid receivable is probable. When our Investment Manager deems it is probable that we will not be able to collect all contractual principal and interest on a non-performing financing receivable, we perform an analysis to determine if a credit loss reserve is necessary. This analysis considers the estimated cash flows from the financing receivable, and/or the collateral value of the asset underlying the financing receivable when financing receivable repayment is collateral dependent. If it is determined that the impaired value of the non-performing financing receivable is less than the net carrying value, we will recognize a credit loss reserve or adjust the existing credit loss reserve with a corresponding charge to earnings. We then charge off a financing receivable in the period that it is deemed uncollectible by reducing the credit loss reserve and the balance of the financing receivable. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-05, Derivatives and Hedging: Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships (“ASU 2016-05”), which clarifies that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument does not, in and of itself, require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. We adopted ASU 2016-05 on January 1, 2017, which did not have an effect on our consolidated financial statements. In March 2016, FASB issued ASU No. 2016-07, Investments – Equity Method and Joint Ventures: Simplifying the Transition to the Equity Method of Accounting (“ASU 2016-07”), which eliminates the retroactive adjustments to an investment upon it qualifying for the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence by the investor. ASU 2016-07 requires that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment qualifies for equity method accounting. We adopted ASU 2016-07 on January 1, 2017, which did not have an effect on our consolidated financial statements. In October 2016, FASB issued ASU No. 2016-17, Consolidation (“ASU 2016-17”), which amends the consolidation guidance on how a reporting entity that is the single decision maker of a variable interest entity should treat indirect interests in such entity held by related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that variable interest entity. Under ASU 2016-17, a single decision maker is not required to consider indirect interests held by related parties that are under common control with the single decision maker to be the equivalent of direct interests in their entirety. We adopted ASU 2016-17 on January 1, 2017, which did not have an effect on our consolidated financial statements. Other Recent Accounting Pronouncements In May 2014, FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), requiring revenue to be recognized in an amount that reflects the consideration expected to be received in exchange for goods and services. This new revenue standard may be applied retrospectively to each prior period presented, or retrospectively with the cumulative effect recognized as of the date of adoption. In August 2015, FASB issued ASU No. 2015-14, Revenue from Contracts with Customers – Deferral of the Effective Date (“ASU 2015-14”), which defers implementation of ASU 2014-09 by one year. Under such deferral, the adoption of ASU 2014-09 becomes effective for us on January 1, 2018, including interim periods within that reporting period. Early adoption is permitted, but not before our original effective date of January 1, 2017. Our evaluation of the impact of the adoption of ASU 2014-09 on our consolidated financial statements is ongoing and our implementation efforts have included the identification of revenue within the scope of the guidance and the evaluation of applicable revenue contracts. We continue to evaluate the timing of recognition of various revenue; however, since a substantial portion of our revenue is recognized from our leasing contracts, which is subject to ASU 2016-02 (as defined below), such revenue is excluded from our evaluation of ASU 2014-09. In January 2016, FASB issued ASU No. 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which provides guidance related to accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The adoption of ASU 2016-01 becomes effective for us on January 1, 2018, including interim periods within that reporting period. We are currently in the process of evaluating the impact of the adoption of ASU 2016-01 on our consolidated financial statements. In February 2016, FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”), which requires lessees to recognize assets and liabilities for leases with lease terms greater than twelve months on the balance sheet and disclose key information about leasing arrangements. ASU 2016-02 implements changes to lessor accounting focused on conforming with certain changes made to lessee accounting and the recently released revenue recognition guidance. The adoption of ASU 2016-02 becomes effective for us on January 1, 2019. Early adoption is permitted. Based on our preliminary assessment, most, if not all, of our leases are subject to lessor accounting and the accounting applied by a lessor is largely unchanged from that applied under current U.S. GAAP. We continue to evaluate the impact of the adoption of ASU 2016-02 on our consolidated financial statements. In June 2016, FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (“ASU 2016-13”), which modifies the measurement of credit losses by eliminating the probable initial recognition threshold set forth in current guidance, and instead reflects an entity’s current estimate of all expected credit losses. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity will apply the amendments within ASU 2016-13 through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The adoption of ASU 2016-13 becomes effective for us on January 1, 2020, including interim periods within that reporting period. Early adoption is permitted. We are currently in the process of evaluating the impact of the adoption of ASU 2016-13 on our consolidated financial statements. In August 2016, FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows. The adoption of ASU 2016-15 becomes effective for us on January 1, 2018, including interim periods within that reporting period. Early adoption is permitted. An entity will apply the amendments within ASU 2016-15 using a retrospective transition method to each period presented. We are currently in the process of evaluating the impact of the adoption of ASU 2016-15 on our consolidated financial statements. In November 2016, FASB issued ASU No. 2016-18, Statement of Cash Flows (“ASU 2016-18”), which provides guidance on the presentation of restricted cash or restricted cash equivalents in the statement of cash flows. The adoption of ASU 2016-18 becomes effective for us on January 1, 2018, including interim periods within that reporting period. Early adoption is permitted. An entity will apply the amendments within ASU 2016-18 using a retrospective transition method to each period presented. We are currently in the process of evaluating the impact of the adoption of ASU 2016-18 on our consolidated financial statements. In January 2017, FASB issued ASU No. 2017-01, Business Combinations (“ASU 2017-01”), which clarifies the definition of a business. ASU 2017-01 sets forth requirements to be met for a set to be deemed a business and establishes a practical way to determine when a set is not a business. To be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create an output, and removes the evaluation of whether a market participant could replace missing elements. In addition, ASU 2017-01 narrows the definition of outputs and aligns such definition with how outputs are described within the revenue guidance. The adoption of ASU 2017-01 becomes effective for us on January 1, 2018, including interim periods within that reporting period. Early adoption is permitted for transactions that occur before the issuance date or effective date of ASU 2017-01 to the extent that such transactions have not been reported in financial statements that have been issued or made available for issuance. We are currently in the process of evaluating the impact of the adoption of ASU 2017-01 on our consolidated financial statements. |
Net Investment in Notes Recei18
Net Investment in Notes Receivable (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Net investment in notes receivable | Net investment in notes receivable consisted of the following: March 31, 2017 December 31, 2016 Principal outstanding (1) $ 42,071,502 $ 43,699,502 Initial direct costs 2,319,746 2,414,038 Deferred fees (1,096,326 ) (1,148,616 ) Credit loss reserve (2) (33,393,546 ) (33,393,546 ) Net investment in notes receivable (3) $ 9,901,376 $ 11,571,378 (1) As of March 31, 2017 and December 31, 2016 , total principal outstanding related to our impaired loan of $31,788,011 was related to JAC. (2) As of March 31, 2017 and December 31, 2016 , the credit loss reserve of $33,393,546 was related to JAC. (3) As of March 31, 2017 and December 31, 2016 , net investment in note receivable related to our impaired loan was $0 . |
Credit Loss Allowance Activities | Credit loss allowance activities for the three months ended March 31, 2017 were as follows: Credit Loss Allowance Allowance for credit loss as of December 31, 2016 $ 33,393,546 Provisions — Write-offs, net of recoveries — Allowance for credit loss as of March 31, 2017 $ 33,393,546 Credit loss allowance activities for the three months ended March 31, 2016 were as follows: Credit Loss Allowance Allowance for credit loss as of December 31, 2015 $ 28,621,458 Provisions — Write-offs, net of recoveries — Allowance for credit loss as of March 31, 2016 $ 28,621,458 |
Leased Equipment at Cost (Table
Leased Equipment at Cost (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Leased equipment at cost | Leased equipment at cost consisted of the following: March 31, 2017 December 31, 2016 Marine - dry bulk vessels $ 21,000,000 $ 21,000,000 Leased equipment at cost 21,000,000 21,000,000 Less: accumulated depreciation 629,110 416,254 Leased equipment at cost, less accumulated depreciation $ 20,370,890 $ 20,583,746 |
Non-Recourse Long-Term Debt (Ta
Non-Recourse Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | As of March 31, 2017 and December 31, 2016 , we had the following non-recourse long-term debt: Counterparty March 31, 2017 December 31, 2016 Maturity Rate DVB Bank SE $ 35,025,000 $ 35,862,500 2021 LIBOR + 3.50% and LIBOR + 3.85% Less: debt issuance costs 628,486 677,115 Total non-recourse long-term debt $ 34,396,514 $ 35,185,385 |
Transactions with Related Par21
Transactions with Related Parties (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Fees and expenses paid or accrued | Fees and other expenses incurred by us to our General Partner or its affiliates were as follows: Three Months Ended March 31, Entity Capacity Description 2017 2016 ICON Capital, LLC Investment Manager Management fees (1) $ 191,210 $ 325,534 ICON Capital, LLC Investment Manager Administrative expense reimbursements (1) 318,342 320,975 $ 509,552 $ 646,509 (1) Amount charged directly to operations. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Carrying values and estimated fair values of debt instruments | March 31, 2017 Carrying Fair Value Value (Level 3) Principal outstanding on fixed-rate notes receivable $ 11,612,974 $ 11,113,749 |
Organization (Details)
Organization (Details) | 3 Months Ended |
Mar. 31, 2017segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
Net Investment in Notes Recei24
Net Investment in Notes Receivable (Narrative) (Details) | Jan. 24, 2017USD ($) | Jan. 31, 2016vessel | Mar. 31, 2015vessel | Mar. 31, 2017USD ($)affiliate | Dec. 31, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 22, 2011USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Credit loss reserve | $ 33,393,546 | $ 33,393,546 | $ 28,621,458 | $ 28,621,458 | ||||
Net investment in notes receivable | 9,901,376 | 11,571,378 | ||||||
Number of unchartered vessels | vessel | 2 | |||||||
Notes Receivable | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Notes receivable on non-accrual status | 33,393,546 | 33,393,546 | ||||||
ICON Fund Fourteen | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Equity method investment, ownership percentage | 75.00% | |||||||
Icon Fund Twelve | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Equity method investment, ownership percentage | 25.00% | |||||||
JAC | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Credit loss reserve | 33,393,546 | 33,393,546 | ||||||
Face amount of loans funded | $ 171,050,000 | |||||||
Stated interest rate | 15.50% | |||||||
Senior notes | 55,000,000 | |||||||
JAC | Notes Receivable | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Face amount of loans funded | $ 20,124,000 | |||||||
Net investment in notes receivable | $ 0 | 0 | ||||||
JAC | Minimum | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Stated interest rate | 12.50% | |||||||
JAC | Maximum | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Stated interest rate | 15.00% | |||||||
TMA | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Number of affiliates | affiliate | 4 | |||||||
Financing receivable, recorded investment, past due | 3,500,490 | |||||||
Accrued investment income receivable | 953,389 | |||||||
Due past 90 days net investments in notes receivable | 1,380,312 | |||||||
Number of under contract supply vessels | vessel | 4 | |||||||
TMA | Notes Receivable | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Financing receivable, recorded investment, past due | $ 3,500,490 | |||||||
Accrued investment income receivable | 1,064,668 | |||||||
Due past 90 days net investments in notes receivable | 1,595,867 | |||||||
TMA | ICON Fund Fourteen | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Senior notes | $ 1,200,000 | $ 800,000 | ||||||
Asphalt Carrier Shipping Company | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Proceeds from loan receivable | $ 1,731,830 | |||||||
Prepayment fee | $ 81,400 |
Net Investment in Notes Recei25
Net Investment in Notes Receivable (Reconciliation) (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Principal outstanding | $ 42,071,502 | $ 43,699,502 | ||
Initial direct costs | 2,319,746 | 2,414,038 | ||
Deferred fees | (1,096,326) | (1,148,616) | ||
Credit loss reserve | (33,393,546) | (33,393,546) | $ (28,621,458) | $ (28,621,458) |
Net investment in notes receivable | 9,901,376 | 11,571,378 | ||
JAC | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Credit loss reserve | (33,393,546) | (33,393,546) | ||
Notes Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Impaired financing receivable, recorded investment | 0 | |||
Notes Receivable | JAC | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Net investment in notes receivable | 0 | 0 | ||
Impaired financing receivable, unpaid principal balance | $ 31,788,011 | $ 31,788,011 |
Net Investment in Notes Recei26
Net Investment in Notes Receivable (Credit Loss Allowance Activity) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | $ 33,393,546 | $ 28,621,458 |
Provisions | 0 | 0 |
Write-offs, net of recoveries | 0 | 0 |
Ending balance | $ 33,393,546 | $ 28,621,458 |
Leased Equipment At Cost (Lease
Leased Equipment At Cost (Lease Equipment Reconciliation) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Leased equipment at cost | $ 21,000,000 | $ 21,000,000 | |
Less: accumulated depreciation | 629,110 | 416,254 | |
Leased equipment at cost, less accumulated depreciation | 20,370,890 | 20,583,746 | |
Depreciation | 738,891 | $ 2,288,930 | |
Marine - dry bulk vessels | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Leased equipment at cost | 21,000,000 | $ 21,000,000 | |
Leased equipment at cost | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Depreciation | $ 212,856 | $ 2,288,930 |
Vessels (Details)
Vessels (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Pooling arrangement term (at least) | 12 months | ||
Deferred revenue | $ 2,337,105 | $ 1,467,325 | |
Depreciation | 738,891 | $ 2,288,930 | |
Vessels | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 526,035 | $ 0 |
Investment in Joint Ventures (N
Investment in Joint Ventures (Narrative) (Details) - USD ($) | Jun. 04, 2012 | Dec. 20, 2011 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 19, 2011 |
Schedule of Equity Method Investments [Line Items] | ||||||
Credit loss | $ 1,514,498 | $ 1,514,498 | ||||
Investment in joint ventures | 9,225,447 | $ 9,441,801 | ||||
Gallatin Maritime Management | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Lease term period | 9 years | |||||
Property, Plant and Equipment, Additions | $ 24,869,000 | |||||
Fund Fourteen | Gallatin Maritime Management | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 40.00% | |||||
Fund Fifteen | Gallatin Maritime Management | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 60.00% | |||||
Joint Venture - Ezra | Vessels | Gallatin Maritime Management | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Note receivable from joint venture | $ 8,000,000 | |||||
Investment in joint ventures | 0 | |||||
Joint Venture - Ezra | Vessels | Fund Fourteen | Gallatin Maritime Management | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Note receivable from joint venture | 1,306,625 | |||||
Joint Venture - Ezra | Minimum | Vessels | Gallatin Maritime Management | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Credit loss | $ 7,271,958 | |||||
AMC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investment in joint ventures | 0 | |||||
Revenue | $ 0 | $ 499,406 |
Non-Recourse Long-Term Debt (Sc
Non-Recourse Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Less: debt issuance costs | $ 628,486 | $ 677,115 |
Total non-recourse long-term debt | 34,396,514 | 35,185,385 |
DVB Bank SE | ||
Debt Instrument [Line Items] | ||
Long term debt | $ 35,025,000 | $ 35,862,500 |
Minimum | DVB Bank SE | ||
Debt Instrument [Line Items] | ||
Basis spread rate | 3.50% | |
Maximum | DVB Bank SE | ||
Debt Instrument [Line Items] | ||
Basis spread rate | 3.85% |
Non-Recourse Long-Term Debt (Na
Non-Recourse Long-Term Debt (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |||
Non-recourse long-term debt | $ 34,396,514 | $ 35,185,385 | |
Carrying value of underlying assets securing non-recourse debt | 66,868,767 | $ 67,607,658 | |
Interest expense, debt | $ 48,629 | $ 155,438 |
Transactions with Related Par32
Transactions with Related Parties (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Net income (loss) allocated to General Partners | $ (10,354) | $ (101,037) | |
Fees and other expenses paid or accrued [Abstract] | |||
Management fees | 191,210 | 325,534 | |
Administrative expense reimbursements | 318,342 | 320,975 | |
Due from General Partner and affiliates, net | 49,864 | $ 0 | |
Due to General Partner and affiliates, net | 0 | 204,430 | |
Note receivable from joint venture | 1,329,483 | 1,329,483 | |
Credit loss | 1,514,498 | $ 1,514,498 | |
Interest income on note receivable | 0 | 102,369 | |
Interest income, cash basis | 0 | ||
ICON Capital, LLC | |||
Related Party Transaction [Line Items] | |||
Distributions paid to General Partner | (52,275) | ||
Fees and other expenses paid or accrued [Abstract] | |||
Management fees | 191,210 | 325,534 | |
Administrative expense reimbursements | 318,342 | 320,975 | |
Total | 509,552 | $ 646,509 | |
General Partner | ICON Capital, LLC | |||
Related Party Transaction [Line Items] | |||
Distributions paid to General Partner | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - Fixed Rate Notes Receivable | 3 Months Ended |
Mar. 31, 2017 | |
Minimum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value inputs, discount rate | 8.00% |
Maximum | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value inputs, discount rate | 25.86% |
Fair Value Measurements (FV Of
Fair Value Measurements (FV Of Assets And Liabilities) (Details) | Mar. 31, 2017USD ($) |
Carrying Value | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Principal outstanding on fixed-rate notes receivable | $ 11,612,974 |
Fair Value | Level 3 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Principal outstanding on fixed-rate notes receivable | $ 11,113,749 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Commitments and Contingencies Disclosure [Abstract] | ||
Restricted cash | $ 1,360,712 | $ 1,500,000 |