Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 08, 2018 | |
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 | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 6,884,182 | $ 7,547,311 |
Restricted cash | 1,675,230 | 1,500,000 |
Leased equipment at cost (less accumulated depreciation of $1,480,538 and $1,267,681 respectively) | 19,519,462 | 19,732,319 |
Net investment in notes receivable | 8,756,275 | 8,256,062 |
Investment in joint ventures and equity-method investees | 4,041,938 | 4,871,247 |
Other assets | 2,863,823 | 2,856,731 |
Total assets | 78,938,702 | 80,362,566 |
Liabilities: | ||
Non-recourse long-term debt | 31,241,037 | 32,030,638 |
Deferred revenue | 2,177,338 | 2,470,065 |
Accrued expenses and other liabilities | 1,357,754 | 835,984 |
Total liabilities | 34,877,171 | 35,412,274 |
Commitments and contingencies (Note 10) | ||
Partners' equity: | ||
Limited partners | 45,916,527 | 46,794,811 |
General Partner | (1,859,016) | (1,850,144) |
Total partners' equity | 44,057,511 | 44,944,667 |
Noncontrolling interests | 4,020 | 5,625 |
Total equity | 44,061,531 | 44,950,292 |
Total liabilities and equity | 78,938,702 | 80,362,566 |
Vessels | ||
Assets | ||
Vessel (less accumulated depreciation of $3,356,401 and $2,955,297, respectively) | 35,197,792 | 35,598,896 |
General Partner | ||
Liabilities: | ||
Due to General Partner and affiliates, net | 101,042 | 75,587 |
Partners' equity: | ||
Total equity | $ (1,859,016) | $ (1,850,144) |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Vessel - accumulated depreciation | $ 3,356,401 | $ 2,955,297 |
Property Subject to or Available for Operating Lease, Accumulated Depreciation | $ 1,480,538 | $ 1,267,681 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue and other income: | ||
Finance income | $ 323,281 | $ 358,343 |
Rental income | 646,347 | 277,556 |
Pool revenue | 1,059,393 | 1,253,248 |
(Loss) income from investment in joint ventures and equity-method investees | 25,089 | 235,976 |
Other income | 5,031 | 11,087 |
Total revenue and other income | 2,059,141 | 2,136,210 |
Expenses: | ||
Management fees | 0 | 191,210 |
Administrative expense reimbursements | 201,042 | 318,342 |
General and administrative | 870,196 | 638,776 |
Depreciation | 613,961 | 738,891 |
Interest | 466,840 | 452,838 |
Vessel operating expenses | 795,863 | 832,203 |
Total expenses | 2,947,902 | 3,172,260 |
Net loss | (888,761) | (1,036,050) |
Less: net loss attributable to noncontrolling interests | (1,605) | (620) |
Net loss attributable to Fund Fourteen | (887,156) | (1,035,430) |
Net loss attributable to Fund Fourteen allocable to: | ||
Limited partners | (878,284) | (1,025,076) |
General Partner | (8,872) | (10,354) |
Net loss attributable to Fund Fourteen | $ (887,156) | $ (1,035,430) |
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) | $ (3.39) | $ (3.96) |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - 3 months ended Mar. 31, 2018 - USD ($) | Total | Noncontrolling Interests | Limited Partners | General Partner | Partners' Equity |
Balance (in shares) at Dec. 31, 2017 | 258,761 | ||||
Balance at Dec. 31, 2017 | $ 44,950,292 | $ 5,625 | $ 46,794,811 | $ (1,850,144) | $ 44,944,667 |
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||
Net loss | (888,761) | (1,605) | (878,284) | (8,872) | $ (887,156) |
Balance (in shares) at Mar. 31, 2018 | 258,761 | ||||
Balance at Mar. 31, 2018 | $ 44,061,531 | $ 4,020 | $ 45,916,527 | $ (1,859,016) | $ 44,057,511 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net loss | $ (888,761) | $ (1,036,050) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Finance income, net of costs and fees | (23,545) | 42,002 |
Loss (income) from investment in joint ventures | (25,089) | (235,976) |
Depreciation | 613,961 | 738,891 |
Interest expense from amortization of debt financing costs | 47,899 | 48,629 |
Changes in operating assets and liabilities: | ||
Other assets | (7,092) | (434,964) |
Accrued expenses and other liabilities | 521,770 | (161,437) |
Deferred revenue | (292,727) | 869,780 |
Due to General Partner and affiliates, net | 25,455 | (254,294) |
Distributions from joint ventures | 0 | 71,508 |
Net cash used in operating activities | (28,129) | (351,911) |
Cash flows from investing activities: | ||
Investment in joint ventures and equity-method investees | (450,000) | 0 |
Investment in notes receivable | (550,000) | 0 |
Distributions received from joint ventures in excess of profits | 1,304,398 | 380,822 |
Principal received on notes receivable | 73,332 | 1,628,000 |
Net cash provided by investing activities | 377,730 | 2,008,822 |
Cash flows from financing activities: | ||
Repayment of non-recourse long-term debt | (837,500) | (837,500) |
Net cash used in financing activities | (837,500) | (837,500) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (487,899) | 819,411 |
Cash, cash equivalents and restricted cash, beginning of period | 9,047,311 | 20,952,937 |
Cash, cash equivalents and restricted cash, end of period (a) | 8,559,412 | 21,772,348 |
Supplemental disclosure of cash flow information: | ||
Restricted cash | 1,675,230 | 1,360,712 |
Cash and cash equivalents | 6,884,182 | 20,411,636 |
Cash paid for interest | 414,668 | 404,843 |
Cash, cash equivalents and restricted cash, end of period (a) | $ 8,559,412 | $ 21,772,348 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | (1) 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. On May 30, 2017, our Investment Manager retained ABN AMRO Securities (USA) LLC (“ABN AMRO Securities”) as its financial advisor to assist our Investment Manager and us in identifying, evaluating and executing a potential sale of certain shipping and offshore energy assets currently included within our investment portfolio. We, however, cannot assure that the identification or evaluation to be performed will result in any specific sale transaction or series of transactions. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (2) 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, 2017 . The results for the interim period are not necessarily indicative of the results for the full year. 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. Investments - Equity Method We account for our interests in entities in which we are able to exercise significant influence over operating and financial policies, generally 50% or less ownership interest, under the equity method of accounting. In such cases, our original investments are recorded at cost and adjusted for our share of earnings, losses and distributions. Such investments are subject to our impairment review policy. Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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. We adopted ASU 2014-09 on January 1, 2018. Since substantially all of our revenue is recognized from our leasing and lending contracts, which are not subject to ASU 2014-09, the adoption of ASU 2014-09 did not have an effect on our consolidated financial statements. 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. As a result of the adoption of ASU 2016-01, we are no longer required to make certain disclosures related to the methods and significant assumptions used to estimate fair value for financial instruments measured at amortized cost. 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. We adopted ASU 2016-15 on January 1, 2018, which did not have an effect on our consolidated financial statements. We utilize the cumulative earnings approach under ASU 2016-15 to present distributions received from equity-method investees, which is consistent with our previous policy. 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. As a result of the adoption of ASU 2016-18 on January 1, 2018, we commenced presenting restricted cash with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts presented on our consolidated statements of cash flows. We adopted ASU 2016-18 using the retrospective method. As a result, the effects of adopting ASU 2016-18 on our consolidated statements of cash flows for the three months ended March 31, 2017 were as follows: Three Months Ended March 31, 2017 As Reported Adoption of ASU 2016-18 As Adjusted Net cash used in operating activities $ (212,623 ) $ (139,288 ) $ (351,911 ) Cash, cash equivalents and restricted cash, beginning of period 19,452,937 1,500,000 20,952,937 Net increase (decrease) in cash, cash equivalents and restricted cash 958,699 (139,288 ) 819,411 Cash, cash equivalents and restricted cash, end of period $ 20,411,636 $ 1,360,712 $ 21,772,348 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. We adopted ASU 2017-01 on January 1, 2018, which did not have an effect on our consolidated financial statements. Other Recent Accounting Pronouncements 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, 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. In addition, since we are in our liquidation period and not expecting to enter into any new leases in the future and it is expected that we will apply the practical expedients as provided by the guidance, the adoption of ASU 2016-02 may not have a material effect on our consolidated financial statements. 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. |
Net Investment in Notes Receiva
Net Investment in Notes Receivable | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Net Investment in Notes Receivable | (3) Net Investment in Notes Receivable As of March 31, 2018 , we had no net investment in notes receivable on non-accrual status and no net investment in notes receivable that was past due 90 days or more and still accruing. As of December 31, 2017, we had net investment in notes receivable on non-accrual status of $1,950,000 and no net investment in notes receivable that was past due 90 days or more and still accruing. See below for further details regarding our note receivable related to four affiliates of Técnicas Maritimas Avanzadas, S.A. de C.V. (collectively, “TMA”). Net investment in notes receivable consisted of the following: March 31, 2018 December 31, 2017 Principal outstanding (1) $ 9,045,850 $ 10,119,672 Deferred fees (289,575 ) (313,120 ) Credit loss reserve (2) — (1,550,490 ) Net investment in notes receivable (3) $ 8,756,275 $ 8,256,062 (1) As of March 31, 2018 and December 31, 2017 , total principal outstanding related to our impaired loan was $2,500,000 and $3,500,490 , respectively. (2) As of December 31, 2017 , we had a credit loss reserve of $2,615,158 related to TMA, of which $1,064,668 was reserved against the accrued interest receivable included in other assets and $1,550,490 was reserved against net investment in notes receivable. (3) As of March 31, 2018 and December 31, 2017 , net investment in notes receivable related to our impaired loan was $2,500,000 and $1,950,000 , respectively. On July 14, 2014, we, ICON Leasing Fund Twelve Liquidating Trust (formerly, ICON Leasing Fund Twelve, LLC) (“Fund Twelve”) and ICON ECI Fund Fifteen, L.P. (“Fund Fifteen”), each an entity also managed by our Investment Manager (collectively, “ICON”), entered into a secured term loan credit facility agreement with TMA to provide a credit facility of up to $29,000,000 (the “ICON Loan”), of which our commitment of $ 3,625,000 was funded on August 27, 2014 (the “TMA Initial Closing Date”). The facility was used by TMA to acquire and refinance two platform supply vessels. At inception, the loan bore interest at the London Interbank Offered Rate (“LIBOR”), subject to a 1% floor, plus a margin of 17% . Upon the acceptance of both vessels by TMA’s sub-charterer on September 19, 2014, the margin was reduced to 13% . On November 24, 2014, ICON entered into an amended and restated senior secured term loan credit facility agreement with TMA pursuant to which an unaffiliated third-party (the “Senior Lender”) agreed to provide a senior secured term loan in the amount of up to $89,000,000 (the “Senior Loan,” and collectively with the ICON Loan, the “TMA Facility”) to acquire two additional vessels. The TMA Facility has a term of five years from the TMA Initial Closing Date. As a result of the amendment, the margin for the ICON Loan increased to 15% and repayment of the ICON Loan became subordinated to the repayment of the Senior Loan. The TMA Facility is secured by, among other things, a first priority security interest in the four vessels and TMA’s right to the collection of hire with respect to earnings from the sub-charterer related to the four vessels. As a condition to the amendment and increased size of the TMA Facility, TMA was required to cause all four platform supply vessels to be under contract by March 31, 2015. Due to TMA’s failure to meet such condition, TMA was in technical default and in payment default while available cash was swept by the Senior Lender and applied to the Senior Loan in accordance with the loan agreement. As a result, the principal balance of the Senior Loan amortized at a faster rate. In January 2016, the remaining two previously unchartered vessels had commenced employment. Our Investment Manager continued to assess the collectability of the note receivable at each reporting date as TMA’s credit quality slowly deteriorated and the fair market value of the collateral continued to decrease. During the three months ended June 30, 2017, our Investment Manager believed it was prudent to place the note receivable on non-accrual status. In September 2017, our Investment Manager met with certain restructuring advisors engaged by TMA to discuss a potential restructuring of the company. In light of these developments and a decrease in the fair market value of the collateral, in which we have a second priority security interest, our Investment Manager determined to record a credit loss of $1,750,000 during the three months ended September 30, 2017. On December 26, 2017, ICON, the Senior Lender and TMA entered into a restructuring support and lock-up agreement to commit to a restructuring of TMA’s outstanding debt obligations and to provide additional funding to TMA, subject to execution of definitive agreements. As a result of this restructuring (as further described below), our Investment Manager assessed the collectability of the note receivable as of December 31, 2017 and recorded an additional credit loss of $865,158 for the three months ended December 31, 2017. On January 5, 2018, ICON, the Senior Lender and TMA executed all definitive agreements including, without limitation, the second amended and restated term loan credit facility agreement in connection with the restructuring of the TMA Facility (the “Second Amendment”). Under the Second Amendment, ICON funded a total of $8,000,000 in exchange for (i) all amounts payable under the Senior Loan will amortize at a faster rate, at which time ICON will become the senior lender and have a first priority security interest in the four vessels and TMA’s right to the earnings generated by the vessels; and (ii) a 12.5% equity interest in two affiliates of TMA. Also as part of the Second Amendment, ICON agreed to reduce its aggregate notes and interest receivables to $20,000,000 in connection with the overall restructuring plan. As a result of the Second Amendment, on January 5, 2018, we funded our additional commitment of $1,000,000 , which represented our share of the total additional commitment to TMA, and our note and interest receivables due from TMA were reduced to $2,500,000 . As of January 5, 2018, our share of the fair value of the 12.5% equity interest in two affiliates of TMA was estimated to be $450,000 , which was based on an independent third-party valuation. Of our $1,000,000 additional commitment to TMA, we recorded $450,000 as an investment accounted for under the equity method of accounting (see Note 6) and the remaining $550,000 as an additional loan to TMA. As a result of this restructuring, during the three months ended March 31, 2018, we wrote off the allowance for credit loss of $2,615,158 related to TMA, of which $1,064,668 was previously reserved against the accrued interest receivable and $1,550,490 was previously reserved against our net investment in notes receivable. In addition, we also wrote off the corresponding $1,064,668 accrued interest receivable. In accordance with the Second Amendment, our restructured loan of $ 2,500,000 bears interest at a rate of 12% per year and is scheduled to mature on January 5, 2021 . Interest will accrue as paid-in-kind interest until such time as the Senior Loan is satisfied in full, which we expect to occur during 2018 . Upon satisfaction of the Senior Loan, our loan will amortize at 25% per year and interest will be paid in cash, both payable quarterly in arrears. The amended TMA Facility is secured by substantially the same collateral that secured the TMA Facility prior to the restructuring. As of March 31, 2018 and December 31, 2017, our share of the collateral value, net of the balance of the Senior Loan, was estimated to be approximately $3,750,000 and $2,250,000 , respectively. As of March 31, 2018 and December 31, 2017, our net investment in notes receivable related to TMA was $2,500,000 and $1,950,000 , respectively. In addition, as of December 31, 2017, we have an accrued interest receivable related to TMA of $1,064,668 , which has been fully reserved, resulting in a net carrying value of $0 . During the three months ended March 31, 2018 and 2017, we recognized finance income of $70,833 and $111,279 , respectively, of which no amount was recognized on a cash basis. Credit loss allowance activities for the three months ended March 31, 2018 were as follows: Credit Loss Allowance Allowance for credit loss as of December 31, 2017 $ 2,615,158 Provisions — Write-offs, net of recoveries (2,615,158 ) Allowance for credit loss as of March 31, 2018 $ — 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 |
Leased Equipment at Cost
Leased Equipment at Cost | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Leased Equipment at Cost | (4) Leased Equipment at Cost Leased equipment at cost consisted of the following: March 31, 2018 December 31, 2017 Marine - dry bulk vessels $ 21,000,000 $ 21,000,000 Less: accumulated depreciation 1,480,538 1,267,681 Leased equipment at cost, less accumulated depreciation $ 19,519,462 $ 19,732,319 Depreciation expense was $212,857 and $212,856 for the three months ended March 31, 2018 and 2017 , respectively. |
Vessels
Vessels | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment | |
Vessels | (4) Leased Equipment at Cost Leased equipment at cost consisted of the following: March 31, 2018 December 31, 2017 Marine - dry bulk vessels $ 21,000,000 $ 21,000,000 Less: accumulated depreciation 1,480,538 1,267,681 Leased equipment at cost, less accumulated depreciation $ 19,519,462 $ 19,732,319 Depreciation expense was $212,857 and $212,856 for the three months ended March 31, 2018 and 2017 , respectively. |
Stena pooling arrangement | |
Property, Plant and Equipment | |
Vessels | (5) 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 Stena 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, 2018 and December 31, 2017 , deferred revenue included on our consolidated balance sheets due to this shortfall provision was $ 2,177,338 and $ 2,470,065 , respectively. 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 $401,104 and $526,035 for the three months ended March 31, 2018 and 2017 , respectively. |
Investment in Joint Ventures an
Investment in Joint Ventures and equity investees | 3 Months Ended |
Mar. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Joint Ventures | (6) Investment in Joint Ventures and Equity-Method Investees On March 21, 2014, a joint venture owned 12.5% by us, 75% by Fund Twelve and 12.5% by Fund Fifteen, through two indirect subsidiaries, entered into memoranda of agreement to purchase two LPG tanker vessels, the EPIC Bali and the EPIC Borneo (f/k/a the SIVA Coral and the SIVA Pearl, respectively) (collectively, the “EPIC Vessels”), from Foreguard Shipping I Global Ships Ltd. (f/k/a Siva Global Ships Limited) (“Foreguard Shipping”) for an aggregate purchase price of $41,600,000 . The EPIC Bali and the EPIC Borneo were delivered on March 28, 2014 and April 8, 2014, respectively. The EPIC Vessels were bareboat chartered to an affiliate of Foreguard Shipping for a period of eight years upon the delivery of each respective vessel. The EPIC Vessels were each acquired for approximately $3,550,000 in cash, $12,400,000 of financing through a senior secured loan from DVB Group Merchant Bank (Asia) Ltd. (“DVB Asia”) and $4,750,000 of financing through a subordinated, non-interest-bearing seller’s credit. Our contribution to the joint venture was $1,022,225 . On February 14, 2018, Foreguard Shipping purchased the EPIC Vessels from the indirect subsidiaries for an aggregate purchase price of $32,412,488 . As a result, the bareboat charters were terminated. A portion of the proceeds from the sale of the EPIC Vessels was used to satisfy in full the seller's credit to Foreguard Shipping and the related outstanding non-recourse long-term debt obligations to DVB Asia. As a result, the joint venture recorded a loss of $3,018,839 , of which our share was $377,355 . The loss was primarily due to (i) the seller’s credit, which was satisfied in full at its maturity amount of $9,500,000 rather than its then-present value of $7,355,183 prior to the sale, and (ii) the write-off of the remaining unamortized indirect costs. Information as to the results of operations of this joint venture is summarized as follows: Three Months Ended March 31, 2018 2017 (Loss) revenue $ (2,331,180 ) $ 720,217 Net (loss) income $ (2,631,785 ) $ 302,493 Our share of net (loss) income $ (134,798 ) $ 38,426 On December 23, 2015, a joint venture owned 15% by us, 75% by Fund Fifteen and 10% by ICON ECI Fund Sixteen, an entity also managed by our Investment Manager, through two indirect subsidiaries, entered into memoranda of agreement to purchase two geotechnical drilling vessels, the Fugro Scout and the Fugro Voyager (collectively, the “Fugro Vessels”), from affiliates of Fugro N.V. (“Fugro”) for an aggregate purchase price of $130,000,000. The aggregate purchase price was funded by the indirect subsidiaries through (i) $16,500,000 in cash; (ii) $91,000,000 in financing through a senior secured loan from ABN AMRO Bank N.V. (“ABN AMRO”), Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. (“Rabobank”) and NIBC Bank N.V. (“NIBC”); and (iii) seller’s credits of $22,500,000. The Fugro Scout and the Fugro Voyager were delivered on December 24, 2015 and January 8, 2016, respectively. The Fugro Vessels were bareboat chartered to affiliates of Fugro for a period of 12 years upon the delivery of each respective vessel, although such charters can be terminated by the indirect subsidiaries after year five. Our contribution to the joint venture was $3,565,875 . In anticipation of a potential breach of a financial covenant by Fugro on December 31, 2017, effective December 29, 2017, the indirect subsidiaries and the affiliates of Fugro amended the bareboat charters on April 6, 2018 to, among other things, amend certain financial covenants, increase the daily charter rate and provide for additional security deposits. Effective December 29, 2017, the indirect subsidiaries also amended the facility agreement with ABN AMRO, Rabobank and NIBC on April 6, 2018 to, among other things, increase the interest rate on the senior secured loans to share the economic benefits of the amended bareboat charters. Information as to the results of operations of this joint venture is summarized as follows: Three Months Ended March 31, 2018 2017 Revenue $ 3,424,652 $ 3,343,483 Net income $ 1,239,601 $ 623,791 Our share of net income $ 185,940 $ 93,569 As part of the restructuring of our note receivable with TMA, ICON acquired a 12.5% equity interest in two affiliates of TMA. In proportion to our share of the ICON Loan, our share of such equity interest in these two entities is 1.56% . Due to our ownership interest and that we are able to exercise significant influence over the operating and financial policies of these two affiliates of TMA, we accounted for our investment in such equity interest under the equity method of accounting. |
Non-Recourse Long-Term Debt
Non-Recourse Long-Term Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Non-Recourse Long-Term Debt | (7) Non-Recourse Long-Term Debt As of March 31, 2018 and December 31, 2017 , we had the following non-recourse long-term debt: Counterparty March 31, 2018 December 31, 2017 Maturity Rate DVB Bank SE $ 31,675,000 $ 32,512,500 2021 LIBOR + 3.50% and LIBOR + 3.85% Less: debt issuance costs 433,963 481,862 Total non-recourse long-term debt $ 31,241,037 $ 32,030,638 As of March 31, 2018 and December 31, 2017 , our non-recourse long-term debt obligations were $31,241,037 and $ 32,030,638 , 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 lessee was to default on the underlying lease, 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, 2018 and December 31, 2017 , the total carrying value of assets subject to non-recourse long-term debt was $54,717,254 and $55,331,215 , respectively. On November 7, 2017, we were notified of an event of default for not making certain payments into a reserve account pursuant to the loan agreement in connection with the senior debt associated with the Shamrock. On January 16, 2018, we entered into an agreement (the “Letter Agreement”) with the senior lender to waive the event of default provided we fund the required amounts to the reserve account in accordance with the terms and conditions of the Letter Agreement. We are currently in compliance with all our obligations under the Letter Agreement. As of March 31, 2018 , we were in compliance with all covenants related to our non-recourse long-term debt. For the three months ended March 31, 2018 and 2017 , we recognized additional interest expense of $47,899 and $48,629 , respectively, related to the amortization of debt financing costs. |
Transactions with Related Parti
Transactions with Related Parties | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | Transactions with Related Parties We did not pay distributions to our General Partner for the three months ended March 31, 2018 or 2017 . Our General Partner’s interest in the net loss attributable to us was $8,872 and $10,354 for the three months ended March 31, 2018 and 2017 , respectively. Effective May 1, 2017, our Investment Manager 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 2018 2017 ICON Capital, LLC Investment Manager Management fees (1) $ — $ 191,210 ICON Capital, LLC Investment Manager Administrative expense reimbursements (1) 201,042 318,342 $ 201,042 $ 509,552 (1) Amount charged directly to operations. At March 31, 2018 and December 31, 2017 , we had a net payable of $101,042 and $75,587 , respectively, due to our General Partner and affiliates, which primarily consisted of administrative expense reimbursements due to our Investment Manager. We have a note receivable from a joint venture related to the AMC Ambassador. As of March 31, 2018 and December 31, 2017, the outstanding balance of the note receivable was $ 0 , net of an aggregate credit loss reserve of $ 2,843,981 . No interest income was recognized for the three months ended March 31, 2018 or 2017 as the note receivable was placed on non-accrual status during the three months ended December 31, 2016. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (9) 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. 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. March 31, 2018 Carrying Fair Value Value (Level 3) Principal outstanding on fixed-rate notes receivable $ 3,631,350 $ 3,611,426 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (10) 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. 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. This legal proceeding is currently in the discovery phase. In connection with certain debt obligations, we are required to maintain restricted cash balances with certain banks. At March 31, 2018 , we had restricted cash of $1,675,230 . |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | (11) Subsequent Events On May 8, 2018, we and Americas Bulk Transport (BVI) Limited (“Americas Bulk”), the bareboat charterer of our two supramax bulk carrier vessels, the Bulk Progress and the Bulk Power, entered into an agreement in which both parties agreed to jointly market and sell the two vessels during the remaining period of 2018. Americas Bulk will continue to pay charter hire in accordance with the bareboat charter until the sale of the vessels. In May 2018, a joint venture owned 12.5% by us, 75% by Fund Twelve and 12.5% by Fund Fifteen agreed with DVB Asia, Pacific Crest and Pacific Radiance Ltd. (“Pacific Radiance”), the guarantor of Pacific Crest’s obligations under the bareboat charter related to the offshore supply vessel, to, among other things, (i) terminate the bareboat charter upon our receipt of a $ 1,000,000 payment from Pacific Crest, a portion of which will be used to make a partial repayment on the outstanding debt to DVB Asia; (ii) cooperate to market and sell the offshore supply vessel; and (iii) Pacific Crest will continue to maintain the vessel in its current condition until the earlier of the sale of the vessel or December 15, 2018 . |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2017 . The results for the interim period are not necessarily indicative of the results for the full year. |
Cash and Cash Equivalents | 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. We adopted ASU 2016-15 on January 1, 2018, which did not have an effect on our consolidated financial statements. We utilize the cumulative earnings approach under ASU 2016-15 to present distributions received from equity-method investees, which is consistent with our previous policy. 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. As a result of the adoption of ASU 2016-18 on January 1, 2018, we commenced presenting restricted cash with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts presented on our consolidated statements of cash flows. We adopted ASU 2016-18 using the retrospective method. As a result, the effects of adopting ASU 2016-18 on our consolidated statements of cash flows for the three months ended March 31, 2017 were as follows: Three Months Ended March 31, 2017 As Reported Adoption of ASU 2016-18 As Adjusted Net cash used in operating activities $ (212,623 ) $ (139,288 ) $ (351,911 ) Cash, cash equivalents and restricted cash, beginning of period 19,452,937 1,500,000 20,952,937 Net increase (decrease) in cash, cash equivalents and restricted cash 958,699 (139,288 ) 819,411 Cash, cash equivalents and restricted cash, end of period $ 20,411,636 $ 1,360,712 $ 21,772,348 |
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. |
Equity Method Investments | Investments - Equity Method We account for our interests in entities in which we are able to exercise significant influence over operating and financial policies, generally 50% or less ownership interest, under the equity method of accounting. In such cases, our original investments are recorded at cost and adjusted for our share of earnings, losses and distributions. Such investments are subject to our impairment review policy. |
Recently Adopted Accounting Pronouncements | 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. We adopted ASU 2017-01 on January 1, 2018, which did not have an effect on our consolidated financial statements. Other Recent Accounting Pronouncements 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, 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. In addition, since we are in our liquidation period and not expecting to enter into any new leases in the future and it is expected that we will apply the practical expedients as provided by the guidance, the adoption of ASU 2016-02 may not have a material effect on our consolidated financial statements. 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. Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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. We adopted ASU 2014-09 on January 1, 2018. Since substantially all of our revenue is recognized from our leasing and lending contracts, which are not subject to ASU 2014-09, the adoption of ASU 2014-09 did not have an effect on our consolidated financial statements. 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. As a result of the adoption of ASU 2016-01, we are no longer required to make certain disclosures related to the methods and significant assumptions used to estimate fair value for financial instruments measured at amortized cost. |
Net Investment in Notes Recei19
Net Investment in Notes Receivable (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Net investment in notes receivable | |
Credit Loss Allowance Activities | Credit loss allowance activities for the three months ended March 31, 2018 were as follows: Credit Loss Allowance Allowance for credit loss as of December 31, 2017 $ 2,615,158 Provisions — Write-offs, net of recoveries (2,615,158 ) Allowance for credit loss as of March 31, 2018 $ — 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 |
Leased Equipment at Cost (Table
Leased Equipment at Cost (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Leased equipment at cost | Leased equipment at cost consisted of the following: March 31, 2018 December 31, 2017 Marine - dry bulk vessels $ 21,000,000 $ 21,000,000 Less: accumulated depreciation 1,480,538 1,267,681 Leased equipment at cost, less accumulated depreciation $ 19,519,462 $ 19,732,319 |
Investment in Joint Ventures 21
Investment in Joint Ventures and equity investees (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Epic Vessels | |
Schedule of Equity Method Investments | |
Equity Method Investments | Information as to the results of operations of this joint venture is summarized as follows: Three Months Ended March 31, 2018 2017 (Loss) revenue $ (2,331,180 ) $ 720,217 Net (loss) income $ (2,631,785 ) $ 302,493 Our share of net (loss) income $ (134,798 ) $ 38,426 |
Fugro Vessels | |
Schedule of Equity Method Investments | |
Equity Method Investments | Information as to the results of operations of this joint venture is summarized as follows: Three Months Ended March 31, 2018 2017 Revenue $ 3,424,652 $ 3,343,483 Net income $ 1,239,601 $ 623,791 Our share of net income $ 185,940 $ 93,569 |
Non-Recourse Long-Term Debt (Ta
Non-Recourse Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | As of March 31, 2018 and December 31, 2017 , we had the following non-recourse long-term debt: Counterparty March 31, 2018 December 31, 2017 Maturity Rate DVB Bank SE $ 31,675,000 $ 32,512,500 2021 LIBOR + 3.50% and LIBOR + 3.85% Less: debt issuance costs 433,963 481,862 Total non-recourse long-term debt $ 31,241,037 $ 32,030,638 |
Transactions with Related Par23
Transactions with Related Parties (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 2018 2017 ICON Capital, LLC Investment Manager Management fees (1) $ — $ 191,210 ICON Capital, LLC Investment Manager Administrative expense reimbursements (1) 201,042 318,342 $ 201,042 $ 509,552 (1) Amount charged directly to operations. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Carrying values and estimated fair values of debt instruments | March 31, 2018 Carrying Fair Value Value (Level 3) Principal outstanding on fixed-rate notes receivable $ 3,631,350 $ 3,611,426 |
Organization (Details)
Organization (Details) | 3 Months Ended |
Mar. 31, 2018segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Eeffects of adopting ASU2016-18) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net cash used in by operating activities | $ (28,129) | $ (351,911) |
Cash, cash equivalents and restricted cash, beginning of period | 9,047,311 | 20,952,937 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (487,899) | 819,411 |
Cash, cash equivalents and restricted cash, end of period (a) | $ 8,559,412 | 21,772,348 |
As Reported | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net cash used in by operating activities | (212,623) | |
Cash, cash equivalents and restricted cash, beginning of period | 19,452,937 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 958,699 | |
Cash, cash equivalents and restricted cash, end of period (a) | 20,411,636 | |
ASU 2016-18 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net cash used in by operating activities | (139,288) | |
Cash, cash equivalents and restricted cash, beginning of period | 1,500,000 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | (139,288) | |
Cash, cash equivalents and restricted cash, end of period (a) | $ 1,360,712 |
Net Investment in Notes Recei27
Net Investment in Notes Receivable (Narrative) (Details) | Jan. 05, 2018USD ($)affiliate | Mar. 31, 2015vessel | Nov. 24, 2014USD ($)vessel | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 19, 2014 | Aug. 27, 2014USD ($) | Jul. 14, 2014USD ($)vessel |
Accounts, Notes, Loans and Financing Receivable | |||||||||||
Notes receivable on non-accrual status | $ 0 | $ 0 | |||||||||
Net investment in finance leases that was past due 90 days or more and still accruing | 0 | ||||||||||
Credit loss reserve | 0 | 1,550,490 | |||||||||
Financing Receivable, Gross | 9,045,850 | 10,119,672 | |||||||||
Investment in joint venture and equity method investment | 4,041,938 | 4,871,247 | |||||||||
Net investment in notes receivable | 8,756,275 | 8,256,062 | |||||||||
Finance income | 323,281 | $ 358,343 | |||||||||
TMA | |||||||||||
Accounts, Notes, Loans and Financing Receivable | |||||||||||
Net investment in finance leases that was past due 90 days or more and still accruing | 1,950,000 | ||||||||||
Credit loss reserve | 0 | 2,615,158 | 33,393,546 | $ 33,393,546 | |||||||
Financing Receivable, Allowance for Credit Losses, Recovery | 2,615,158 | 0 | |||||||||
Financing receivable, recorded investment, past due | 1,950,000 | ||||||||||
Accrued investment income receivable | 0 | ||||||||||
Finance income | 70,833 | $ 111,279 | |||||||||
TMA | TMA Facility | |||||||||||
Accounts, Notes, Loans and Financing Receivable | |||||||||||
Loans Receivable, Basis Spread on Variable Rate | 15.00% | ||||||||||
Number of under contract supply vessels | vessel | 4 | ||||||||||
Term of Credit Facility | 5 years | ||||||||||
Number of Vessels Used as Collateral | vessel | 4 | ||||||||||
TMA | Senior loans | |||||||||||
Accounts, Notes, Loans and Financing Receivable | |||||||||||
Number Of Vessels Acquired | vessel | 2 | ||||||||||
Loan Receivable Face Amount | $ 89,000,000 | ||||||||||
TMA | ICON Loans | |||||||||||
Accounts, Notes, Loans and Financing Receivable | |||||||||||
Number Of Vessels Acquired | vessel | 2 | ||||||||||
Loan Receivable Face Amount | $ 29,000,000 | ||||||||||
TMA | Revised Credit Facility | |||||||||||
Accounts, Notes, Loans and Financing Receivable | |||||||||||
Equity method investment, ownership percentage | 12.50% | ||||||||||
Financing Receivable, Gross | $ 20,000,000 | ||||||||||
Net investment in notes receivable | 1,550,490 | ||||||||||
Number of affiliates | affiliate | 2 | ||||||||||
Loans and Equity Fund | $ 8,000,000 | ||||||||||
TMA | LIBOR | ICON Loans | |||||||||||
Accounts, Notes, Loans and Financing Receivable | |||||||||||
Derivative, Floor Interest Rate | 1.00% | ||||||||||
Loans Receivable, Basis Spread on Variable Rate | 13.00% | 17.00% | |||||||||
ICON Fund Fourteen | TMA | |||||||||||
Accounts, Notes, Loans and Financing Receivable | |||||||||||
Credit loss reserve | 2,615,158 | ||||||||||
Loan Receivable Face Amount | $ 2,500,000 | ||||||||||
Credit loss, net | 865,158 | $ 1,750,000 | |||||||||
Investment Maturity Date | Jan. 5, 2021 | ||||||||||
ICON Fund Fourteen | TMA | Senior loans | |||||||||||
Accounts, Notes, Loans and Financing Receivable | |||||||||||
Investment maturity year month | 2018-10 | ||||||||||
Loan Amortized Percent Per Year | 25.00% | ||||||||||
Collateral Value Receivable | $ 3,750,000 | 2,250,000 | |||||||||
ICON Fund Fourteen | TMA | ICON Loans | |||||||||||
Accounts, Notes, Loans and Financing Receivable | |||||||||||
Face amount of loans funded | $ 3,625,000 | ||||||||||
ICON Fund Fourteen | TMA | Revised Credit Facility | |||||||||||
Accounts, Notes, Loans and Financing Receivable | |||||||||||
Financing Receivable, Gross | 2,500,000 | ||||||||||
Investment in joint venture and equity method investment | 450,000 | ||||||||||
Loans and Leases Receivable, Related Parties, Additions | 550,000 | ||||||||||
Stated interest rate | 12.00% | ||||||||||
Loans and Equity Fund | $ 1,000,000 | ||||||||||
ICON Fund Fourteen | TMA | Other Assets | |||||||||||
Accounts, Notes, Loans and Financing Receivable | |||||||||||
Accrued investment income receivable | $ 1,064,668 |
Net Investment in Notes Recei28
Net Investment in Notes Receivable (Reconciliation) (Details) - USD ($) | Mar. 31, 2018 | Jan. 05, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable | |||||
Principal outstanding | $ 9,045,850 | $ 10,119,672 | |||
Deferred fees | (289,575) | (313,120) | |||
Credit loss reserve | 0 | (1,550,490) | |||
Net investment in notes receivable | 8,756,275 | 8,256,062 | |||
TMA | |||||
Accounts, Notes, Loans and Financing Receivable | |||||
Credit loss reserve | 0 | (2,615,158) | $ (33,393,546) | $ (33,393,546) | |
Financing Receivable, Recorded Investment, Current | 2,500,000 | ||||
Financing receivable, recorded investment, past due | 1,950,000 | ||||
Impaired financing receivable, unpaid principal balance | 2,500,000 | 3,500,490 | |||
Accrued investment income receivable | 0 | ||||
Revised Credit Facility | TMA | |||||
Accounts, Notes, Loans and Financing Receivable | |||||
Principal outstanding | $ 20,000,000 | ||||
Net investment in notes receivable | $ 1,550,490 | ||||
ICON Fund Fourteen | TMA | |||||
Accounts, Notes, Loans and Financing Receivable | |||||
Credit loss reserve | (2,615,158) | ||||
ICON Fund Fourteen | Revised Credit Facility | TMA | |||||
Accounts, Notes, Loans and Financing Receivable | |||||
Principal outstanding | $ 2,500,000 | ||||
ICON Fund Fourteen | Other Assets | TMA | |||||
Accounts, Notes, Loans and Financing Receivable | |||||
Accrued investment income receivable | 1,064,668 | ||||
ICON Fund Fourteen | Notes Receivable | TMA | |||||
Accounts, Notes, Loans and Financing Receivable | |||||
Credit loss reserve | $ (1,550,490) |
Net Investment in Notes Recei29
Net Investment in Notes Receivable (Credit Loss Allowance Activity) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | $ 1,550,490 | |
Ending balance | 0 | |
TMA | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | 2,615,158 | $ 33,393,546 |
Provisions | 0 | 0 |
Write-offs, net of recoveries | (2,615,158) | 0 |
Ending balance | $ 0 | $ 33,393,546 |
Leased Equipment At Cost (Lease
Leased Equipment At Cost (Lease Equipment Reconciliation) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Less: accumulated depreciation | $ 1,480,538 | $ 1,267,681 | |
Leased equipment at cost, less accumulated depreciation | 19,519,462 | 19,732,319 | |
Depreciation | 613,961 | $ 738,891 | |
Marine - dry bulk vessels | |||
Property, Plant and Equipment | |||
Property Subject to or Available for Operating Lease, Gross | 21,000,000 | 21,000,000 | |
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Less: accumulated depreciation | 1,480,538 | 1,267,681 | |
Leased equipment at cost, less accumulated depreciation | 19,519,462 | $ 19,732,319 | |
Depreciation | $ 212,857 | $ 212,856 |
Vessels (Details)
Vessels (Details) - USD ($) | Jul. 14, 2016 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 |
Property, Plant and Equipment | ||||
Deferred revenue | $ 2,177,338 | $ 2,470,065 | ||
Depreciation | $ 613,961 | $ 738,891 | ||
Stena pooling arrangement | ||||
Property, Plant and Equipment | ||||
Shortfall provision expiration date | Jul. 14, 2018 | |||
Pooling arrangement term (at least) | 12 months | |||
Depreciation | $ 401,104 | $ 526,035 |
Investment in Joint Ventures 32
Investment in Joint Ventures and equity investees (Narrative) (Details) | Feb. 14, 2018USD ($) | Dec. 23, 2015USD ($) | Mar. 21, 2014USD ($)affiliate | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) |
Schedule of Equity Method Investments | ||||||
Investment in joint ventures and equity-method investees | $ 4,041,938 | $ 4,871,247 | ||||
Income from investment in joint venture | (25,089) | $ (235,976) | ||||
Fugro Vessels | ||||||
Schedule of Equity Method Investments | ||||||
Number of affiliates | affiliate | 2 | |||||
Payments to Acquire Other Property, Plant, and Equipment | $ 130,000,000 | |||||
Payments to Acquire Machinery and Equipment | 16,500,000 | |||||
Senior notes | 91,000,000 | |||||
Subordinated Debt | 22,500,000 | |||||
Payments to Acquire Equity Method Investments | $ 3,565,875 | |||||
Revenue | 3,424,652 | 3,343,483 | ||||
Income from investment in joint venture | (185,940) | (93,569) | ||||
Charter Of Vessels Term Period | 12 years | |||||
Charter Contract Eligible for Termination, Period | 5 years | |||||
Fugro Vessels | Fund Fourteen | ||||||
Schedule of Equity Method Investments | ||||||
Equity method investment, ownership percentage | 15.00% | |||||
Fugro Vessels | ICON Fund Fifteen | ||||||
Schedule of Equity Method Investments | ||||||
Equity method investment, ownership percentage | 75.00% | |||||
Fugro Vessels | Icon Fund Sixteen | ||||||
Schedule of Equity Method Investments | ||||||
Equity method investment, ownership percentage | 10.00% | |||||
Epic Vessels | ||||||
Schedule of Equity Method Investments | ||||||
Number of affiliates | affiliate | 2 | |||||
Lease term period | 8 years | |||||
Subordinated Debt | $ 4,750,000 | |||||
Payments to Acquire Equity Method Investments | $ 1,022,225 | |||||
Revenue | (2,331,180) | 720,217 | ||||
Income from investment in joint venture | $ 3,018,839 | $ 134,798 | $ (38,426) | |||
Seller Credit At Maturity | 9,500,000 | |||||
present Value Of Seller Credit | 7,355,183 | |||||
Epic Vessels | Fund Fourteen | ||||||
Schedule of Equity Method Investments | ||||||
Equity method investment, ownership percentage | 12.50% | |||||
Income from investment in joint venture | $ (377,355) | |||||
Epic Vessels | ICON Fund Twelve | ||||||
Schedule of Equity Method Investments | ||||||
Equity method investment, ownership percentage | 75.00% | |||||
Epic Vessels | ICON Fund Fifteen | ||||||
Schedule of Equity Method Investments | ||||||
Equity method investment, ownership percentage | 12.50% | |||||
ICON Loans | TMA | ||||||
Schedule of Equity Method Investments | ||||||
equity method ownership interest | 12.50% | |||||
ICON Loans | Fund Fourteen | TMA | ||||||
Schedule of Equity Method Investments | ||||||
equity method ownership interest | 1.60% | |||||
DVB | Epic Vessels | ||||||
Schedule of Equity Method Investments | ||||||
Senior notes | $ 12,400,000 |
Investment in Joint Ventures 33
Investment in Joint Ventures and equity investees (Schedule of Equity Investments) (Details) - USD ($) | Feb. 14, 2018 | Mar. 31, 2018 | Mar. 31, 2017 |
Schedule of Equity Method Investments | |||
Net (loss) income | $ (25,089) | $ (235,976) | |
Epic Vessels | |||
Schedule of Equity Method Investments | |||
Revenue | (2,331,180) | 720,217 | |
Net (loss) income | $ 3,018,839 | 134,798 | (38,426) |
Our share of net (loss) income | (2,631,785) | 302,493 | |
Epic Vessels | Fund Fourteen | |||
Schedule of Equity Method Investments | |||
Net (loss) income | $ (377,355) | ||
Fugro Vessels | |||
Schedule of Equity Method Investments | |||
Revenue | 3,424,652 | 3,343,483 | |
Net (loss) income | (185,940) | (93,569) | |
Our share of net (loss) income | $ 1,239,601 | $ 623,791 |
Non-Recourse Long-Term Debt (Sc
Non-Recourse Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Debt Instrument [Line Items] | |||
Less: debt issuance costs | $ 433,963 | $ 481,862 | |
Total non-recourse long-term debt | 31,241,037 | 32,030,638 | $ 31,241,037 |
DVB Bank SE | |||
Debt Instrument [Line Items] | |||
Long term debt | $ 31,675,000 | $ 32,512,500 | |
debt maturity year | 2,021 | ||
LIBOR | Minimum | DVB Bank SE | |||
Debt Instrument [Line Items] | |||
Basis spread rate | 3.50% | ||
LIBOR | 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, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |||
Non-recourse long-term debt | $ 31,241,037 | $ 31,241,037 | $ 32,030,638 |
Carrying value of underlying assets securing non-recourse debt | 54,717,254 | $ 55,331,215 | |
Interest expense from Amortization of Debt Financing Costs | $ 47,899 | $ 48,629 |
Transactions with Related Par36
Transactions with Related Parties (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Net income (loss) allocated to General Partners | $ (8,872) | $ (10,354) | |
Fees and other expenses paid or accrued [Abstract] | |||
Management fees | 0 | 191,210 | |
Administrative expense reimbursements | 201,042 | 318,342 | |
ICON Capital, LLC | |||
Fees and other expenses paid or accrued [Abstract] | |||
Management fees | 0 | 191,210 | |
Administrative expense reimbursements | 201,042 | 318,342 | |
Total | 201,042 | 509,552 | |
General Partner | |||
Fees and other expenses paid or accrued [Abstract] | |||
Due to General Partner and affiliates, net | 101,042 | $ 75,587 | |
AMC | |||
Fees and other expenses paid or accrued [Abstract] | |||
Note receivable from joint venture | 0 | ||
Credit loss | 0 | $ 2,843,981 | |
Interest income on note receivable | $ 0 | $ 0 |
Fair Value Measurements (FV Of
Fair Value Measurements (FV Of Assets And Liabilities) (Details) | Mar. 31, 2018USD ($) |
Carrying Value | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Principal outstanding on fixed-rate notes receivable | $ 3,631,350 |
Fair Value | Level 3 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Principal outstanding on fixed-rate notes receivable | $ 3,611,426 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Commitments and Contingencies Disclosure [Abstract] | |||
Restricted cash | $ 1,675,230 | $ 1,500,000 | $ 1,360,712 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event | 1 Months Ended |
May 31, 2018USD ($) | |
Pacific Crest Pte Ltd | DVB | |
Subsequent Event | |
Direct Financing Lease, Lease Receivable | $ 1,000,000 |
Disposal Date | Dec. 15, 2018 |
ICON Fund Fifteen | |
Subsequent Event | |
Equity method investment, ownership percentage | 12.50% |
ICON Fund Twelve | |
Subsequent Event | |
Equity method investment, ownership percentage | 75.00% |
Icon Fund Fourteen | |
Subsequent Event | |
Equity method investment, ownership percentage | 12.50% |