Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 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 | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 20,060,629 | $ 7,547,311 |
Restricted cash | 2,024,810 | 1,500,000 |
Leased equipment at cost (less accumulated depreciation of $1,267,681) | 0 | 19,732,319 |
Asset held for sale | 28,900,000 | 0 |
Net investment in notes receivable | 6,758,779 | 8,256,062 |
Investment in joint ventures | 8,129 | 4,871,247 |
Investment in cost-method investees | 412,649 | 0 |
Other assets | 2,393,387 | 2,856,731 |
Total assets | 60,558,383 | 80,362,566 |
Liabilities: | ||
Non-recourse long-term debt | 20,636,097 | 32,030,638 |
Deferred revenue | 0 | 2,470,065 |
Due to General Partner and affiliates, net | 32,076 | 75,587 |
Accrued expenses and other liabilities | 1,375,944 | 835,984 |
Total liabilities | 22,044,117 | 35,412,274 |
Commitments and contingencies (Note 11) | ||
Partners' equity: | ||
Limited partners | 40,424,734 | 46,794,811 |
General Partner | (1,914,488) | (1,850,144) |
Total partners' equity | 38,510,246 | 44,944,667 |
Noncontrolling interests | 4,020 | 5,625 |
Total equity | 38,514,266 | 44,950,292 |
Total liabilities and equity | 60,558,383 | 80,362,566 |
Vessels | ||
Assets | ||
Vessel (less accumulated depreciation of $2,955,297) | $ 0 | $ 35,598,896 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Vessel - accumulated depreciation | $ 0 | $ 2,955,297 |
Property Subject to or Available for Operating Lease, Accumulated Depreciation | $ 0 | $ 1,267,681 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue and other income: | ||||
Finance income | $ 113,075 | $ 220,052 | $ 779,509 | $ 796,963 |
Rental income | 375,212 | 480,333 | 1,793,820 | 1,125,736 |
Pool revenue | 4,266,506 | 656,113 | 5,300,203 | 3,097,667 |
Income (loss) from investment in joint ventures and equity-method investees | 33,061 | 202,348 | 201,506 | (1,163,891) |
Gain on sale of investment in joint venture | 225,377 | 0 | 225,377 | 0 |
Gain on sale of assets | 1,460,924 | 0 | 1,460,924 | 0 |
Other income | 2,612 | 4,934 | 10,194 | 23,078 |
Total revenue and other income | 6,476,767 | 1,563,780 | 9,771,533 | 3,879,553 |
Expenses: | ||||
Management fees | 0 | 0 | 0 | 216,979 |
Administrative expense reimbursements | 182,076 | 259,327 | 598,693 | 859,040 |
General and administrative | 581,087 | 306,896 | 2,032,572 | 1,431,792 |
Credit loss, net | 2,287,243 | 1,750,000 | 2,287,243 | 2,584,553 |
Depreciation | 401,104 | 738,892 | 1,629,026 | 2,216,675 |
Interest | 731,623 | 467,339 | 1,705,713 | 1,380,606 |
Impairment loss | 5,495,584 | 10,299,807 | 5,495,584 | 10,299,807 |
Vessel operating | 865,624 | 1,058,917 | 2,458,728 | 3,104,345 |
Total expenses | 10,544,341 | 14,881,178 | 16,207,559 | 22,093,797 |
Net loss | (4,067,574) | (13,317,398) | (6,436,026) | (18,214,244) |
Less: net income (loss) attributable to noncontrolling interests | 0 | 1,348 | (1,605) | (1,978) |
Net loss attributable to Fund Fourteen | (4,067,574) | (13,318,746) | (6,434,421) | (18,212,266) |
Net loss attributable to Fund Fourteen allocable to: | ||||
Limited partners | (4,026,898) | (13,185,558) | (6,370,077) | (18,030,143) |
General Partner | (40,676) | (133,188) | (64,344) | (182,123) |
Net loss attributable to Fund Fourteen | $ (4,067,574) | $ (13,318,746) | $ (6,434,421) | $ (18,212,266) |
Weighted average number of limited partnership interests outstanding (in shares) | 258,761 | 258,761 | 258,761 | 258,761 |
Net loss attributable to Fund Fourteen per weighted average limited partnership interest outstanding (in dollars per share) | $ (15.56) | $ (50.96) | $ (24.62) | $ (69.68) |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - 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 |
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 | (6,436,026) | ||||
Balance (in shares) at Sep. 30, 2018 | 258,761 | ||||
Balance at Sep. 30, 2018 | 38,514,266 | 4,020 | 40,424,734 | (1,914,488) | $ 38,510,246 |
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 |
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||
Net loss | (1,479,691) | 0 | (1,464,895) | (14,796) | $ (1,479,691) |
Balance (in shares) at Jun. 30, 2018 | 258,761 | ||||
Balance at Jun. 30, 2018 | 42,581,840 | 4,020 | 44,451,632 | (1,873,812) | $ 42,577,820 |
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||
Net loss | (4,067,574) | 0 | (4,026,898) | (40,676) | $ (4,067,574) |
Balance (in shares) at Sep. 30, 2018 | 258,761 | ||||
Balance at Sep. 30, 2018 | $ 38,514,266 | $ 4,020 | $ 40,424,734 | $ (1,914,488) | $ 38,510,246 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||||
Net loss | $ (4,067,574) | $ (13,317,398) | $ (6,436,026) | $ (18,214,244) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Finance income, net of costs and fees | (53,257) | (12,967) | ||
(Income) loss from investment in joint ventures and equity-method investees | (201,506) | 1,163,891 | ||
Depreciation | 401,104 | 738,892 | 1,629,026 | 2,216,675 |
Credit loss, net | 2,287,243 | 2,584,553 | ||
Impairment loss | 5,495,584 | 10,299,807 | 5,495,584 | 10,299,807 |
Interest expense from amortization of debt financing costs | 221,045 | 49,346 | 317,959 | 147,283 |
Paid-in-kind interest | (131,667) | 0 | ||
Gain on sale of assets | (1,460,924) | 0 | (1,460,924) | 0 |
Gain on sale of investment in joint venture | (225,377) | 0 | (225,377) | 0 |
Changes in operating assets and liabilities: | ||||
Other assets | 254,897 | (164,028) | ||
Accrued expenses and other liabilities | 539,960 | (353,486) | ||
Deferred revenue | (2,470,065) | 1,479,846 | ||
Due to/from General Partner and affiliates, net | (43,511) | (135,927) | ||
Distributions from joint ventures | 0 | 329,943 | ||
Net cash used in operating activities | (497,664) | (658,654) | ||
Cash flows from investing activities: | ||||
Investment in joint ventures and equity-method investees | (450,000) | 0 | ||
Investment in notes receivable | (550,000) | 0 | ||
Proceeds received from sale of investment in joint venture | 4,020,572 | 0 | ||
Proceeds received from sale of assets | 20,767,529 | 0 | ||
Distributions received from joint ventures in excess of profits | 1,306,780 | 2,015,431 | ||
Principal and sale proceeds received on notes receivable | 153,411 | 1,732,495 | ||
Net cash provided by investing activities | 25,248,292 | 3,747,926 | ||
Cash flows from financing activities: | ||||
Repayment of non-recourse long-term debt | (11,712,500) | (2,512,500) | ||
Investment by noncontrolling interests | 0 | 2,697 | ||
Distributions to partners | 0 | (12,121,215) | ||
Net cash used in financing activities | (11,712,500) | (14,631,018) | ||
Net increase (decrease) in cash, cash equivalents and restricted cash | 13,038,128 | (11,541,746) | ||
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) | 22,085,439 | 9,411,191 | 22,085,439 | 9,411,191 |
Supplemental disclosure of cash flow information: | ||||
Cash paid for interest | 1,392,701 | 1,226,463 | ||
(a) The following table presents a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the consolidated balance sheets: | ||||
Cash and cash equivalents | 20,060,629 | 8,044,263 | 20,060,629 | 8,044,263 |
Restricted cash | 2,024,810 | 1,366,928 | 2,024,810 | 1,366,928 |
Cash, cash equivalents and restricted cash, end of period (a) | $ 22,085,439 | $ 9,411,191 | $ 22,085,439 | $ 9,411,191 |
Organization
Organization | 9 Months Ended |
Sep. 30, 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 included within our investment portfolio. As a result of such identification and evaluation, on September 7, 2018, an unaffiliated third-party purchased 100% of the limited liability company interests of ICON Fugro (as defined and discussed in further detail in Note 6). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies Basis of Presentation 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 and Cost 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. We account for our interests in entities where we have virtually no influence over operating and financial policies under the cost method of accounting. In such cases, our original investments are recorded at cost and any distributions received are recorded as revenue. All investments are subject to our impairment review policy. We have one investment that is accounted for under the cost method that does not have readily determinable fair values. We measure this investment at cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. At each reporting period, our Investment Manager reassesses the appropriateness of this methodology for this investment and performs a qualitative assessment by considering any impairment indicators. If the qualitative assessment indicates that the investment is impaired and its fair value is less than its net carrying value, we will write down the investment to such fair value. 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. We adopted ASU 2016-01 on January 1, 2018. 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 nine months ended September 30, 2017 were as follows: Nine Months Ended September 30, 2017 As Reported Adoption of ASU 2016-18 As Adjusted Net cash used in operating activities $ (525,582 ) $ (133,072 ) $ (658,654 ) Cash, cash equivalents and restricted cash, beginning of period 19,452,937 1,500,000 20,952,937 Net decrease in cash, cash equivalents and restricted cash (11,408,674 ) (133,072 ) (11,541,746 ) Cash, cash equivalents and restricted cash, end of period $ 8,044,263 $ 1,366,928 $ 9,411,191 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. In July 2018, FASB issued ASU No. 2018-11, Leases (“ASU 2018-11”), which provides an additional transition method by allowing companies to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. In addition, ASU 2018-11 provides lessors a practical expedient to not separate non-lease components from the associated lease component under certain circumstances. The adoption of ASU 2016-02 and ASU 2018-11 becomes effective for us on January 1, 2019. Early adoption is permitted. Based on our 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 we will apply certain practical expedients as provided by the guidance, the adoption of ASU 2016-02 and ASU 2018-11 will not have an effect 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 2018, FASB issued ASU No. 2018-13, Fair Value Measurement (“ASU 2018-13”), which modifies the disclosure requirements for fair value measurements. The adoption of ASU 2018-13 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 2018-13 on our consolidated financial statements. |
Net Investment in Notes Receiva
Net Investment in Notes Receivable | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Net Investment in Notes Receivable | 3) Net Investment in Notes Receivable As of September 30, 2018 , we had net investment in notes receivable on non-accrual status of $3,060,000 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 Lubricating Specialties Company (“LSC”). 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: September 30, 2018 December 31, 2017 Principal outstanding (1) $ 9,097,438 $ 10,119,672 Deferred fees (259,863 ) (313,120 ) Credit loss reserve (2) (2,078,796 ) (1,550,490 ) Net investment in notes receivable (3) $ 6,758,779 $ 8,256,062 (1) As of September 30, 2018 and December 31, 2017 , total principal outstanding related to our impaired loans was $7,980,347 and $3,500,490 , respectively. (2) As of September 30, 2018 , we had a credit loss reserve of $2,287,243 related to LSC, of which $208,447 was reserved against the accrued interest receivable included in other assets and $2,078,796 was reserved against net investment in notes receivable. 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 September 30, 2018 and December 31, 2017 , net investment in notes receivable related to our impaired loans was $5,653,472 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 had 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 had 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 would amortize at a faster rate, at which time ICON would 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 7) 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 . The amended TMA Facility is secured by substantially the same collateral that secured the TMA Facility prior to the restructuring. On June 12, 2018, all of TMA’s obligations to the Senior Lender and all amounts payable under the Senior Loan were satisfied in full. As a result, ICON became the agent and senior lender and has a first priority security interest in the four vessels and TMA’s right to the earnings generated by the vessels. Interest was accrued as paid-in-kind (“PIK”) interest until the Senior Loan was satisfied in full. Upon satisfaction of the Senior Loan, (i) $131,667 of PIK interest was reclassified to principal; and (ii) the ICON Loan is being amortized at 25% per year and together with interest, is payable quarterly in arrears. On July 5, 2018, we extended the due date of certain payments from TMA for an additional 15 days for a fee of $3,750 . Such payments were thereafter timely received from TMA. On October 4, 2018, we extended the due date of the quarterly interest and principal payments from TMA for an additional 20 days for a fee of $ 5,000 . The fee was timely received, but the quarterly interest and principal payments were not received from TMA until November 9, 2018. As of September 30, 2018 and December 31, 2017, our net investment in notes receivable related to TMA was $2,593,472 and $1,950,000 , respectively. In addition, as of December 31, 2017, we had an accrued interest receivable related to TMA of $1,064,668 , which had been fully reserved, resulting in a net carrying value of $0 . During the three and nine months ended September 30, 2018 , we recognized finance income of $83,334 and $232,109 , respectively, of which no amount was recognized on a cash basis. During the three and nine months ended September 30, 2017, we recognized finance income of $0 and $111,279 , respectively, of which no amount was recognized on a cash basis. On December 30, 2016, we, Fund Fifteen and ICON ECI Fund Sixteen (“Fund Sixteen”), an entity also managed by our Investment Manager, entered into a secured term loan agreement with LSC to provide a loan in the aggregate amount of $32,500,000 , of which our commitment of $5,525,000 was funded on such date. The loan bears interest at LIBOR, subject to a 1% floor, plus 11% per year, and is for a period of four years maturing on December 30, 2020. The loan is secured by a second priority security interest in LSC’s accounts receivable and inventory and a first priority security interest in all of LSC’s other assets. LSC has been experiencing financial difficulties and has failed to make its quarterly in-arrears payments since July 1, 2018. As a result, principal and interest due from LSC are currently more than 90 days past due. During the three months ended September 30, 2018, LSC engaged a chief restructuring officer and we are currently working with LSC and its stakeholders to assess LSC’s financial condition for purposes of formulating a restructuring plan. As part of these discussions, on October 19, 2018, we, LSC and each of its other lenders entered into forbearance agreements under which we agreed to forbear from exercising our rights as a result of LSC’s various defaults under the loan agreement until no later than January 15, 2019 while we, LSC and each of its other stakeholders continue negotiating a restructuring plan. In light of these developments, our Investment Manager determined that there was doubt regarding the collectability of the note receivable. Our Investment Manager assessed the collectability of the note receivable by using a weighted-average of the concluded values from a market approach and an income approach utilizing (i) an enterprise value derived from adjusted EBITDA multiples of certain comparable public companies and of certain targeted/acquired companies and (ii) the value derived from discounted cash flows using company-specific projections and discount rates for companies of similar size and/or risk profiles. Based on such assessment, our Investment Manager believed that we may potentially not be able to recover approximately $ 1,700,000 to $ 2,600,000 of the outstanding balance due from LSC as of September 30, 2018. During the three months ended September 30, 2018, we recorded a credit loss of $2,287,243 based on this assessment, which our Investment Manager believed was the best estimate considering information that was then currently available. As we continue our discussions with LSC and its stakeholders regarding a restructuring plan, which may or may not come to fruition, going forward we will adjust the credit loss reserve accordingly based on new developments. On December 20, 2016, we, Fund Fifteen and Fund Sixteen entered into a secured term loan credit facility agreement with CFL Momentum Beheer B.V. and C.V. CFL Momentum (collectively, “CFL”) to provide a credit facility of up to $7,400,000 , of which our commitment of $1,258,000 was funded on December 21, 2016. The loan bears interest at 8% per year and we are entitled to an equity participation fee based partly on the fair market value of the vessel upon repayment of the loan. The loan is scheduled to mature on December 21, 2020. The loan is secured by, among other things, a first priority security interest in and earnings from a motor cargo vessel. CFL and Industrial Maritime Carriers (Bermuda), Ltd. (“IMC”), the sub-charterer of the vessel, are in default of their respective obligations under the loan documents and the sub-charter, respectively, due to, among other things (i) CFL frequently incurs shortfalls on its quarterly payments to us under the loan agreement resulting in a past due balance of $70,037 as of September 30, 2018; (ii) CFL’s failure to ensure the payment of, and IMC’s failure to pay, all sub-charter payments related to the vessel directly into a designated earnings account since September 2017; (iii) CFL’s failure to maintain a minimum liquidity amount in such designated earnings account; and (iv) CFL’s failure to satisfy its financial reporting requirements under the loan agreement. As a result, on October 5, 2018, we advised CFL that we were accelerating the repayment of all amounts payable under the loan and demanded that CFL and/or its guarantors immediately repay such amounts to us. CFL and/or its guarantors failed to make such payments. On October 22, 2018, we exercised our rights under the loan documents to assume CFL’s obligations under the sub-charter with IMC and to substitute CFL with our designee as the owner of the vessel solely for purposes of the sub-charter. As a result, all sub-charter payments will be paid directly to us going forward to satisfy amounts payable under the loan. Our Investment Manager continues to evaluate additional remedies that are available to us in order to enforce our rights under the loan documents and the sub-charter. Credit loss allowance activities for the three months ended September 30, 2018 were as follows: Credit Loss Allowance Allowance for credit loss as of June 30, 2018 $ — Provisions 2,287,243 Write-offs, net of recoveries — Allowance for credit loss as of September 30, 2018 $ 2,287,243 Credit loss allowance activities for the three months ended September 30, 2017 were as follows: Credit Loss Allowance Allowance for credit loss as of June 30, 2017 $ 33,393,546 Provisions 1,750,000 Write-offs, net of recoveries (33,393,546 ) Allowance for credit loss as of September 30, 2017 $ 1,750,000 Credit loss allowance activities for the nine months ended September 30, 2018 were as follows: Credit Loss Allowance Allowance for credit loss as of December 31, 2017 $ 2,615,158 Provisions 2,287,243 Write-offs, net of recoveries (2,615,158 ) Allowance for credit loss as of September 30, 2018 $ 2,287,243 Credit loss allowance activities for the nine months ended September 30, 2017 were as follows: Credit Loss Allowance Allowance for credit loss as of December 31, 2016 $ 33,393,546 Provisions 1,750,000 Write-offs, net of recoveries (33,393,546 ) Allowance for credit loss as of September 30, 2017 $ 1,750,000 |
Leased Equipment at Cost_Assets
Leased Equipment at Cost/Assets Held for Sale | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Leased Equipment at Cost | (4) Leased Equipment at Cost Leased equipment at cost consisted of the following: September 30, 2018 December 31, 2017 Marine - dry bulk vessels $ — $ 21,000,000 Less: accumulated depreciation — 1,267,681 Leased equipment at cost, less accumulated depreciation $ — $ 19,732,319 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 remainder of 2018, with Americas Bulk continuing to pay charter hire in accordance with the charters until the sale of the vessels. As of June 30, 2018, the vessels met the criteria to be classified as assets held for sale and since then, no further depreciation was recorded on the vessels. Depreciation expense was $0 and $212,857 for the three months ended September 30, 2018 and 2017 , respectively. Depreciation expense was $425,714 and $638,570 for the nine months ended September 30, 2018 and 2017 , respectively. On August 22, 2018 and September 17, 2018, the Bulk Progress and the Bulk Power, respectively, were sold to unaffiliated third parties, each for a gross purchase price of $11,500,000 . As a result, we recorded an aggregate gain on sale of $1,460,924 during the three months ended September 30, 2018. For the three and nine months ended September 30, 2018, pre-tax income associated with the vessels was $1,174,516 and $1,831,183 , respectively. For the three and nine months ended September 30, 2017, pre-tax income (loss) associated with the vessels was $109,395 and $( 38,899 ), respectively. |
Vessels
Vessels | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment | |
Vessels | (4) Leased Equipment at Cost Leased equipment at cost consisted of the following: September 30, 2018 December 31, 2017 Marine - dry bulk vessels $ — $ 21,000,000 Less: accumulated depreciation — 1,267,681 Leased equipment at cost, less accumulated depreciation $ — $ 19,732,319 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 remainder of 2018, with Americas Bulk continuing to pay charter hire in accordance with the charters until the sale of the vessels. As of June 30, 2018, the vessels met the criteria to be classified as assets held for sale and since then, no further depreciation was recorded on the vessels. Depreciation expense was $0 and $212,857 for the three months ended September 30, 2018 and 2017 , respectively. Depreciation expense was $425,714 and $638,570 for the nine months ended September 30, 2018 and 2017 , respectively. On August 22, 2018 and September 17, 2018, the Bulk Progress and the Bulk Power, respectively, were sold to unaffiliated third parties, each for a gross purchase price of $11,500,000 . As a result, we recorded an aggregate gain on sale of $1,460,924 during the three months ended September 30, 2018. For the three and nine months ended September 30, 2018, pre-tax income associated with the vessels was $1,174,516 and $1,831,183 , respectively. For the three and nine months ended September 30, 2017, pre-tax income (loss) associated with the vessels was $109,395 and $( 38,899 ), respectively. |
Stena pooling arrangement | |
Property, Plant and Equipment | |
Vessels | (5) Vessel/Asset Held for Sale 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 required us to pay back a portion of the monthly distribution received upon certain criteria being met if we removed the vessel from the pool. As of December 31, 2017 , deferred revenue included on our consolidated balance sheets due to this shortfall provision was $2,470,065 . The shortfall provision expired on July 14, 2018. As a result, during the three months ended September 30, 2018, we recognized revenue of $3,013,554 that was previously deferred through June 30, 2018 due to this shortfall provision. Monthly distributions, net of any 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 September 30, 2018 and 2017 , respectively. Depreciation expense was $1,203,312 and $1,578,105 for the nine months ended September 30, 2018 and 2017 , respectively. During the three months ended September 30, 2018, we were in discussions with a broker for the potential sale of the Shamrock. On October 12, 2018, we signed a memorandum of agreement with a potential buyer to sell the Shamrock for an agreed-upon sale price of approximately $30,000,000 . Our Investment Manager determined that the vessel met the criteria to be classified as asset held for sale resulting in (i) a reclassification of the Shamrock from vessel to asset held for sale on our consolidated balance sheet as of September 30, 2018 and (ii) no further deprecation will be recorded related to the Shamrock going forward. As part of this assessment, we recorded an impairment loss of $5,495,584 during the three months ended September 30, 2018 to write down the Shamrock to its estimated fair value less cost to sell in accordance with U.S. GAAP. For the three and nine months ended September 30, 2018, pre-tax loss associated with the vessel was $2,673,850 and $4,797,709 , respectively. For the three and nine months ended September 30, 2017, pre-tax loss associated with the vessel was $10,746,861 and $12,138,095 , respectively. |
Investment in Joint Ventures
Investment in Joint Ventures | 9 Months Ended |
Sep. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Joint Ventures | (6) Investment in Joint Ventures 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 recorded on the joint venture’s books prior to the sale, and (ii) the write-off of the remaining unamortized indirect costs. On December 23, 2015, ICON Fugro Holdings, LLC (“ICON Fugro”), a joint venture owned 15% by us, 75% by Fund Fifteen and 10% by Fund Sixteen, 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 could have been terminated by the indirect subsidiaries after year five. Our contribution to ICON Fugro 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. As part of the amendment, ICON Fugro received a fee of $55,000 , of which our share was $8,250 . 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. On September 7, 2018, an unaffiliated third-party purchased 100% of the limited liability company interests of ICON Fugro for net sales proceeds of $27,727,846 . As a result, we recorded a gain on sale of investment in joint venture of $225,377 during the three months ended September 30, 2018. On June 12, 2014, a joint venture owned 12.5% by us, 75% by Fund Twelve and 12.5% by Fund Fifteen purchased an offshore supply vessel from Pacific Crest Pte. Ltd. (“Pacific Crest”) for $ 40,000,000 . Simultaneously, the vessel was bareboat chartered to Pacific Crest for ten years. The vessel was acquired for approximately $ 12,000,000 in cash, $ 26,000,000 of financing through a senior secured loan from DVB Asia and $ 2,000,000 of financing through a subordinated, non-interest-bearing seller’s credit. Since July 2017, Pacific Crest failed to make its monthly charter payments and our Investment Manager was advised in July 2017 that Pacific Crest was engaged in discussions with its lenders regarding a potential restructuring of its outstanding debt obligations. As a result, the joint venture performed an impairment test on the vessel. For the year ended December 31, 2017, the joint venture recorded an aggregate impairment loss of $19,295,230 based on our impairment tests, of which we were only allocated $1,758,641 as our investment in the joint venture was written down to zero. On April 20, 2018, the joint venture and DVB Asia entered into an agreement (the “DVB Asia Agreement”) under which the parties agreed to (i) cooperate to market and sell the offshore supply vessel, (ii) the application of any future payments that may be received by the joint venture from Pacific Crest and/or Pacific Radiance Ltd. (“Pacific Radiance”), the guarantor of Pacific Crest’s obligations under the bareboat charter related to the vessel, in settlement of all obligations and liabilities of Pacific Crest and Pacific Radiance under the bareboat charter and the guaranty, respectively, and (iii) the application of the sale proceeds from any future sale of the vessel. On May 14, 2018, the joint venture entered into a settlement agreement with Pacific Crest, Pacific Radiance and DVB Asia under which, among other things, (i) the parties agreed to terminate the bareboat charter and the joint venture would release Pacific Crest and Pacific Radiance from all obligations and liabilities under the bareboat charter and the guaranty, respectively, in each case upon the joint venture’s 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) the parties agreed to cooperate to market and sell the offshore supply vessel; and (iii) Pacific Crest released the joint venture from its obligation to repay the seller's credit and 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. On May 18, 2018, the joint venture received the $1,000,000 payment from Pacific Crest, of which the joint venture is entitled to $566,667 and the remaining $433,333 will be applied toward the repayment of the joint venture’s outstanding non-recourse long-term debt to DVB Asia in accordance with the DVB Asia Agreement. As a result, the joint venture recognized $1,000,000 of income as part of this arrangement, of which our share was $ 125,000 . On May 16, 2018, Pacific Radiance and its subsidiaries (including Pacific Crest) made applications to the Singapore High Court seeking interim protection against legal proceedings and other claims as they seek to restructure their outstanding debt obligations with stakeholders. On June 11, 2018, the Court granted such protection to Pacific Radiance and its subsidiaries (including Pacific Crest) until December 2018. On June 4, 2018, the joint venture entered into an exclusivity agreement with a potential purchaser of the offshore supply vessel under which the joint venture agreed to exclusively negotiate with such potential purchaser for the sale of the vessel to permit the potential purchaser to bid on a bareboat charter that if accepted, would have employed the offshore supply vessel. In exchange for exclusivity, the potential purchaser paid a $25,000 nonrefundable fee to the joint venture. The exclusivity agreement expired and the joint venture was informed by the potential purchaser that it would not proceed with the purchase of the vessel. During the three months ended June 30, 2018, the joint venture continued to work with DVB Asia, Pacific Crest and Pacific Radiance to market the vessel for sale and was in negotiations with another potential purchaser. Based on the purchase offers received, our Investment Manager concluded that there was an indication that the then net carrying value of the vessel may not be recoverable. As a result, our Investment Manager performed an impairment test on the vessel and concluded that the joint venture should record an additional impairment loss of $7,345,225 during the three months ended June 30, 2018, of which no loss was allocated to us as our investment in the joint venture was previously written down to zero. The joint venture continues to work with DVB Asia, Pacific Crest and Pacific Radiance to identify sale opportunities and based on recent negotiations with potential purchasers and the most recent purchase offer received, our Investment Manager concluded that there was an indication that the net carrying value of the vessel may not be recoverable. As a result, our Investment Manager performed an impairment test using consistent methodology and concluded that the joint venture should record an additional impairment loss of $ 2,458,845 for the three months ended September 30, 2018, of which no loss was allocated to us. The joint venture and DVB Asia are motivated to sell the vessel as the vessel is the primary collateral securing the non-recourse long-term debt with DVB Asia. Determining the fair value of the vessel involves significant judgment due to the lack of sales activity in the market that the vessel operates. An additional impairment loss or loss on sale may be recorded by the joint venture in future periods to the extent the fair value of the vessel decreases or the final purchase price for the vessel is below the net carrying value as of September 30, 2018. However, a gain on extinguishment of debt may also be recognized by the joint venture in a future period as a result of applying the sale proceeds to settle the related non-recourse long-term debt. As our investment in this joint venture was previously written down to zero, no further net loss will be allocated to us. To the extent the joint venture reports net income in the future, we will resume applying the equity method only after our share of such net income equals or exceeds our share of net losses previously not recognized. Information as to the results of operations of this joint venture is summarized as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Revenue $ 433,333 $ 137,958 $ 1,000,000 $ 2,466,746 Net loss $ (2,304,050 ) $ (338,832 ) $ (8,416,455 ) $ (14,530,337 ) Our share of net loss $ — $ — $ — $ (1,698,951 ) On June 27, 2018, a joint venture owned 40% by us and 60% by Fund Fifteen sold the AMC Ambassador (f/k/a the Lewek Ambassador) to a third-party purchaser for $1,500,000 . A portion of the sale proceeds was used to satisfy in full certain third-party claims against the vessel of $555,456 , with the remaining portion used to settle the joint venture’s non-recourse long-term debt obligations related to the vessel. As a result, the joint venture recognized a loss on sale of vessel of $2,045,055 and recognized a gain on extinguishment of debt of $4,764,270 , of which we were allocated $0 as our investment in the joint venture was previously written down to zero. |
Investment in Cost-Method Inves
Investment in Cost-Method Investees (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Equity Method Investments and Cost Method Investments [Abstract] | |
Cost and Equity Method Investments Disclosure [Text Block] | (7) Investment in Cost-Method Investees 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 were 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. On June 29, 2018, ICON’s appointee to the board of directors of the two affiliates of TMA resigned as a board member and as a result, no longer participates in voting on any matter associated with the business operations of these two entities. As a result, we are no longer deemed to be able to exercise significant influence over the operating and financial policies of these two entities. We recorded our share of loss of $ 37,351 from these two equity-method investees through June 29, 2018 and reclassified the amount related to these two affiliates of TMA from investment in equity-method investees to investment in cost-method investees as of June 30, 2018. |
Non-Recourse Long-Term Debt
Non-Recourse Long-Term Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Non-Recourse Long-Term Debt | (8) Non-Recourse Long-Term Debt As of September 30, 2018 and December 31, 2017 , we had the following non-recourse long-term debt: Counterparty September 30, 2018 December 31, 2017 Maturity Rate DVB Bank SE $ 20,800,000 $ 32,512,500 2021 LIBOR + 3.50% and LIBOR + 3.85% Less: debt issuance costs 163,903 481,862 Total non-recourse long-term debt $ 20,636,097 $ 32,030,638 As of September 30, 2018 and December 31, 2017 , our non-recourse long-term debt obligations were $20,636,097 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 September 30, 2018 and December 31, 2017 , the total carrying value of assets subject to non-recourse long-term debt was $28,900,000 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. We used a portion of the proceeds from the sale of the Bulk Progress and the Bulk Power on August 22, 2018 and September 17, 2018, respectively, to satisfy in full our related non-recourse long-term debt obligations to DVB Bank SE totaling $ 9,416,426 . As of September 30, 2018 , we were in compliance with all covenants related to our non-recourse long-term debt. For the three months ended September 30, 2018 and 2017 , we recognized interest expense of $221,045 and $49,346 , respectively, related to the amortization of debt financing costs. For the nine months ended September 30, 2018 and 2017 , we recognized interest expense of $317,959 and $147,283 , respectively, related to the amortization of debt financing costs. |
Transactions with Related Parti
Transactions with Related Parties | 9 Months Ended |
Sep. 30, 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 or nine months ended September 30, 2018 . We paid distributions to our General Partner of $ 121,212 for the three and nine months ended September 30, 2017. Our General Partner’s interest in the net loss attributable to us was $40,676 and $64,344 for the three and nine months ended September 30, 2018 , respectively. Our General Partner’s interest in the net loss attributable to us was $133,188 and $182,123 for the three and nine months ended September 30, 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 September 30, Nine Months Ended September 30, Entity Capacity Description 2018 2017 2018 2017 ICON Capital, LLC Investment Manager Management fees (1) $ — $ — $ — $ 216,979 ICON Capital, LLC Investment Manager Administrative expense reimbursements (1) 182,076 259,327 598,693 859,040 $ 182,076 $ 259,327 $ 598,693 $ 1,076,019 (1) Amount charged directly to operations. At September 30, 2018 , we had a net payable of $32,076 due to our General Partner and affiliates, which consisted of administrative expense reimbursements due to our Investment Manager. At December 31, 2017 , we had a net payable of $75,587 due to our General Partner and affiliates, which consisted of administrative expense reimbursements due to our Investment Manager. We had a note receivable from a joint venture related to the AMC Ambassador. As of December 31, 2017, the outstanding balance of the note receivable was $ 0 , net of an aggregate credit loss reserve of $2,843,981 . As a result of the sale of the AMC Ambassador by our joint venture (see Note 6), we wrote off the aggregate credit loss reserve and corresponding balance related to the note receivable of $ 2,843,981 during the three months ended June 30, 2018. No interest income was recognized for the three or nine months ended September 30, 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 | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (10) 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 Measured at Fair Value on a Nonrecurring Basis We are required, on a nonrecurring basis, to adjust the carrying value or provide valuation allowances for certain assets using fair value measurements. Our non-financial assets, such as leased equipment at cost, are measured at fair value when there is an indicator of impairment and recorded at fair value only when an impairment charge is recognized. Assets classified as held for sale are required to be recorded at the lower of carrying value or fair value less any costs to sell such assets. To determine the fair value when impairment indicators exist, we utilize different valuation approaches based on transaction-specific facts and circumstances to determine fair value, including, but not limited to, discounted cash flow models and the use of comparable transactions. The valuation of our financial assets, such as notes receivable, is included below only when fair value has been measured and recorded based on the fair value of the underlying collateral. The following table summarizes the valuation of our material non-financial asset measured at fair value on a nonrecurring basis, which is presented as of the date the impairment loss was recorded, while the carrying value of the asset is presented as of September 30, 2018. Carrying Value at Fair Value at Impairment Date Impairment Loss for the September 30, 2018 Level 1 Level 2 Level 3 Nine Months Ended September 30, 2018 Asset held for sale $ 28,900,000 $ — $ — $ 30,000,000 $ 5,495,584 During the three months ended September 30, 2018, the Shamrock met the criteria to be classified as asset held for sale resulting in a reclassification from vessel to asset held for sale on our consolidated balance sheet as of September 30, 2018. As of September 30, 2018, the carrying value of such asset held for sale was $28,900,000 , which represents the estimated fair value of the Shamrock of approximately $30,000,000 less cost to sell. As of September 30, 2018, the estimated fair value of the Shamrock was derived from the agreed-upon sale price with a potential buyer. The estimated fair value of the Shamrock and cost to sell were based on inputs that are generally unobservable and are supported by little or no market data and were classified within Level 3. 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. September 30, 2018 Carrying Fair Value Value (Level 3) Principal outstanding on fixed-rate notes receivable $ 3,710,563 $ 3,662,274 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (11) Commitments and Contingencies At the time we acquire or divest of 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. On June 11, 2018, we commenced legal proceedings against (i) Amazing Shipping Ltd. (“Amazing Shipping”) and Geden; and (ii) Fantastic Shipping Ltd. (“Fantastic Shipping”) and Geden, each seeking monetary damages incurred as a result of their failure to meet their payment and performance obligations under the charters and guarantees, respectively, related to the Amazing and the Fantastic, respectively. Amazing Shipping, Fantastic Shipping and Geden have each failed to respond to our claims filed in the relevant proceeding. On August 31, 2018, we arrested the Advantage Sky, a vessel owned by Advantage Sky Shipping LLC (“Advantage Shipping”), in the territorial waters of South Africa as security for all amounts owed to us by Geden and its affiliates related to the Amazing, the Fantastic and the Center. This arrest was part of our underlying claims that assets were transferred by Geden to Advantage Shipping in bad faith. A hearing on the arrest is tentatively scheduled for January 2019. In connection with certain debt obligations, we are required to maintain restricted cash balances with certain banks. At September 30, 2018 , we had restricted cash of $2,024,810 . |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | (12) Subsequent Event On October 30, 2018, we paid distributions to our General Partner and our limited partners of $ 109,091 and $ 10,799,999 , respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 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 nine months ended September 30, 2017 were as follows: Nine Months Ended September 30, 2017 As Reported Adoption of ASU 2016-18 As Adjusted Net cash used in operating activities $ (525,582 ) $ (133,072 ) $ (658,654 ) Cash, cash equivalents and restricted cash, beginning of period 19,452,937 1,500,000 20,952,937 Net decrease in cash, cash equivalents and restricted cash (11,408,674 ) (133,072 ) (11,541,746 ) Cash, cash equivalents and restricted cash, end of period $ 8,044,263 $ 1,366,928 $ 9,411,191 |
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. |
Revenue from contract with customer | 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. |
Financial Instruments, Recognition and measurement of financial assets and financial liabilities | 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. We adopted ASU 2016-01 on January 1, 2018. 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. |
Equity and cost method investments | Investments - Equity Method and Cost 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. We account for our interests in entities where we have virtually no influence over operating and financial policies under the cost method of accounting. In such cases, our original investments are recorded at cost and any distributions received are recorded as revenue. All investments are subject to our impairment review policy. We have one investment that is accounted for under the cost method that does not have readily determinable fair values. We measure this investment at cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. At each reporting period, our Investment Manager reassesses the appropriateness of this methodology for this investment and performs a qualitative assessment by considering any impairment indicators. If the qualitative assessment indicates that the investment is impaired and its fair value is less than its net carrying value, we will write down the investment to such fair value. |
Business combination | 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. |
Recently Adopted Accounting Pronouncements | 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. In July 2018, FASB issued ASU No. 2018-11, Leases (“ASU 2018-11”), which provides an additional transition method by allowing companies to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. In addition, ASU 2018-11 provides lessors a practical expedient to not separate non-lease components from the associated lease component under certain circumstances. The adoption of ASU 2016-02 and ASU 2018-11 becomes effective for us on January 1, 2019. Early adoption is permitted. Based on our 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 we will apply certain practical expedients as provided by the guidance, the adoption of ASU 2016-02 and ASU 2018-11 will not have an effect 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 2018, FASB issued ASU No. 2018-13, Fair Value Measurement (“ASU 2018-13”), which modifies the disclosure requirements for fair value measurements. The adoption of ASU 2018-13 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 2018-13 on our consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
ASU 2016-18 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | As a result, the effects of adopting ASU 2016-18 on our consolidated statements of cash flows for the nine months ended September 30, 2017 were as follows: Nine Months Ended September 30, 2017 As Reported Adoption of ASU 2016-18 As Adjusted Net cash used in operating activities $ (525,582 ) $ (133,072 ) $ (658,654 ) Cash, cash equivalents and restricted cash, beginning of period 19,452,937 1,500,000 20,952,937 Net decrease in cash, cash equivalents and restricted cash (11,408,674 ) (133,072 ) (11,541,746 ) Cash, cash equivalents and restricted cash, end of period $ 8,044,263 $ 1,366,928 $ 9,411,191 |
Net Investment in Notes Recei_2
Net Investment in Notes Receivable (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
Net investment in notes receivable | Net investment in notes receivable consisted of the following: September 30, 2018 December 31, 2017 Principal outstanding (1) $ 9,097,438 $ 10,119,672 Deferred fees (259,863 ) (313,120 ) Credit loss reserve (2) (2,078,796 ) (1,550,490 ) Net investment in notes receivable (3) $ 6,758,779 $ 8,256,062 (1) As of September 30, 2018 and December 31, 2017 , total principal outstanding related to our impaired loans was $7,980,347 and $3,500,490 , respectively. (2) As of September 30, 2018 , we had a credit loss reserve of $2,287,243 related to LSC, of which $208,447 was reserved against the accrued interest receivable included in other assets and $2,078,796 was reserved against net investment in notes receivable. 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 September 30, 2018 and December 31, 2017 , net investment in notes receivable related to our impaired loans was $5,653,472 and $1,950,000 , respectively. |
Credit Loss Allowance Activities | Credit loss allowance activities for the three months ended September 30, 2018 were as follows: Credit Loss Allowance Allowance for credit loss as of June 30, 2018 $ — Provisions 2,287,243 Write-offs, net of recoveries — Allowance for credit loss as of September 30, 2018 $ 2,287,243 Credit loss allowance activities for the three months ended September 30, 2017 were as follows: Credit Loss Allowance Allowance for credit loss as of June 30, 2017 $ 33,393,546 Provisions 1,750,000 Write-offs, net of recoveries (33,393,546 ) Allowance for credit loss as of September 30, 2017 $ 1,750,000 Credit loss allowance activities for the nine months ended September 30, 2018 were as follows: Credit Loss Allowance Allowance for credit loss as of December 31, 2017 $ 2,615,158 Provisions 2,287,243 Write-offs, net of recoveries (2,615,158 ) Allowance for credit loss as of September 30, 2018 $ 2,287,243 Credit loss allowance activities for the nine months ended September 30, 2017 were as follows: Credit Loss Allowance Allowance for credit loss as of December 31, 2016 $ 33,393,546 Provisions 1,750,000 Write-offs, net of recoveries (33,393,546 ) Allowance for credit loss as of September 30, 2017 $ 1,750,000 |
Leased Equipment at Cost_Asse_2
Leased Equipment at Cost/Assets Held for Sale (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Leased equipment at cost | Leased equipment at cost consisted of the following: September 30, 2018 December 31, 2017 Marine - dry bulk vessels $ — $ 21,000,000 Less: accumulated depreciation — 1,267,681 Leased equipment at cost, less accumulated depreciation $ — $ 19,732,319 |
Investment in Joint Ventures (T
Investment in Joint Ventures (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Revenue $ 433,333 $ 137,958 $ 1,000,000 $ 2,466,746 Net loss $ (2,304,050 ) $ (338,832 ) $ (8,416,455 ) $ (14,530,337 ) Our share of net loss $ — $ — $ — $ (1,698,951 ) |
Non-Recourse Long-Term Debt (Ta
Non-Recourse Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | As of September 30, 2018 and December 31, 2017 , we had the following non-recourse long-term debt: Counterparty September 30, 2018 December 31, 2017 Maturity Rate DVB Bank SE $ 20,800,000 $ 32,512,500 2021 LIBOR + 3.50% and LIBOR + 3.85% Less: debt issuance costs 163,903 481,862 Total non-recourse long-term debt $ 20,636,097 $ 32,030,638 |
Transactions with Related Par_2
Transactions with Related Parties (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, Entity Capacity Description 2018 2017 2018 2017 ICON Capital, LLC Investment Manager Management fees (1) $ — $ — $ — $ 216,979 ICON Capital, LLC Investment Manager Administrative expense reimbursements (1) 182,076 259,327 598,693 859,040 $ 182,076 $ 259,327 $ 598,693 $ 1,076,019 (1) Amount charged directly to operations. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Carrying values and estimated fair values of debt instruments | The following table summarizes the valuation of our material non-financial asset measured at fair value on a nonrecurring basis, which is presented as of the date the impairment loss was recorded, while the carrying value of the asset is presented as of September 30, 2018. Carrying Value at Fair Value at Impairment Date Impairment Loss for the September 30, 2018 Level 1 Level 2 Level 3 Nine Months Ended September 30, 2018 Asset held for sale $ 28,900,000 $ — $ — $ 30,000,000 $ 5,495,584 September 30, 2018 Carrying Fair Value Value (Level 3) Principal outstanding on fixed-rate notes receivable $ 3,710,563 $ 3,662,274 |
Organization (Details)
Organization (Details) - segment | Sep. 07, 2018 | Jun. 30, 2018 |
Net Investment Income | ||
Number of reportable segments | 1 | |
Fugro Vessels | ||
Net Investment Income | ||
Ownership equity percentage sold | 100.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Eeffects of adopting ASU2016-18) (Details) - USD ($) | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net cash used in operating activities | $ (497,664) | $ (658,654) | ||
Cash, cash equivalents and restricted cash, beginning of period | 9,047,311 | 20,952,937 | ||
Net decrease in cash, cash equivalents and restricted cash | 13,038,128 | (11,541,746) | ||
Cash, cash equivalents and restricted cash, end of period (a) | $ 9,047,311 | 20,952,937 | $ 22,085,439 | $ 9,411,191 |
As Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net cash used in operating activities | (525,582) | |||
Cash, cash equivalents and restricted cash, beginning of period | 19,452,937 | |||
Net decrease in cash, cash equivalents and restricted cash | (11,408,674) | |||
Cash, cash equivalents and restricted cash, end of period (a) | 19,452,937 | 8,044,263 | ||
ASU 2016-18 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net cash used in operating activities | (133,072) | |||
Cash, cash equivalents and restricted cash, beginning of period | 1,500,000 | |||
Net decrease in cash, cash equivalents and restricted cash | (133,072) | |||
Cash, cash equivalents and restricted cash, end of period (a) | $ 1,500,000 | $ 1,366,928 |
Net Investment in Notes Recei_3
Net Investment in Notes Receivable (Narrative) (Details) | Oct. 04, 2018USD ($) | Jul. 05, 2018USD ($) | Jun. 12, 2018USD ($) | Jan. 05, 2018USD ($)affiliate | Dec. 30, 2016USD ($) | Mar. 31, 2015vessel | Nov. 24, 2014USD ($)vessel | Dec. 20, 2016USD ($) | Sep. 30, 2018USD ($)affiliate | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)affiliate | Sep. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 21, 2016USD ($) | Sep. 19, 2014 | Aug. 27, 2014USD ($) | Jul. 14, 2014USD ($)vessel |
Accounts, Notes, Loans and Financing Receivable | |||||||||||||||||||||
Notes receivable on non-accrual status | $ 3,060,000 | $ 3,060,000 | |||||||||||||||||||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | $ 0 | 0 | ||||||||||||||||||
Credit loss reserve | $ 0 | ||||||||||||||||||||
Investment in joint venture and equity method investment | 8,129 | 4,871,247 | 8,129 | ||||||||||||||||||
Impaired financing receivable, unpaid principal balance | 7,980,347 | 3,500,490 | 7,980,347 | ||||||||||||||||||
Credit loss, net | 2,287,243 | $ 1,750,000 | 2,287,243 | $ 2,584,553 | |||||||||||||||||
Paid-in-kind interest | (131,667) | 0 | |||||||||||||||||||
Finance income | 113,075 | 220,052 | 779,509 | 796,963 | |||||||||||||||||
Notes Receivable | |||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable | |||||||||||||||||||||
Credit loss reserve | (2,078,796) | (1,550,490) | (2,078,796) | ||||||||||||||||||
Financing Receivable, Gross | 9,097,438 | 10,119,672 | 9,097,438 | ||||||||||||||||||
CFL | |||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable | |||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 7,400,000 | ||||||||||||||||||||
Financing receivable, recorded investment, past due | 70,037 | 70,037 | |||||||||||||||||||
Investment Maturity Date | Dec. 21, 2020 | ||||||||||||||||||||
LSC | |||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable | |||||||||||||||||||||
Credit loss reserve | (2,287,243) | (2,287,243) | |||||||||||||||||||
Credit loss, net | 2,287,243 | ||||||||||||||||||||
LSC | Minimum | |||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable | |||||||||||||||||||||
Impaired financing receivable, unpaid principal balance | 1,700,000 | 1,700,000 | |||||||||||||||||||
LSC | Maximum | |||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable | |||||||||||||||||||||
Impaired financing receivable, unpaid principal balance | 2,600,000 | 2,600,000 | |||||||||||||||||||
LSC | ICON Loans | |||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable | |||||||||||||||||||||
Loan Receivable Face Amount | $ 32,500,000 | ||||||||||||||||||||
LSC | Other Assets | |||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable | |||||||||||||||||||||
Credit loss reserve | $ (208,447) | $ (208,447) | |||||||||||||||||||
TMA | |||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable | |||||||||||||||||||||
Credit loss reserve | (2,615,158) | (1,750,000) | (1,750,000) | $ (33,393,546) | $ (33,393,546) | ||||||||||||||||
Equity method investment, ownership percentage | 12.50% | ||||||||||||||||||||
Number of affiliates | affiliate | 4 | 4 | |||||||||||||||||||
Credit loss, net | $ 2,615,158 | ||||||||||||||||||||
Paid-in-kind interest | $ 131,667 | ||||||||||||||||||||
Additional extension terms | 15 days | ||||||||||||||||||||
Proceeds from Fees Received | $ 3,750 | ||||||||||||||||||||
Loan Amortized Percent Per Year | 25.00% | ||||||||||||||||||||
Financing Income, Cash Basis | $ 0 | $ 0 | |||||||||||||||||||
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 | ||||||||||||||||||||
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% | |||||||||||||||||||
TMA | Other Assets | |||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable | |||||||||||||||||||||
Credit loss reserve | (1,064,668) | ||||||||||||||||||||
TMA | Notes Receivable | |||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable | |||||||||||||||||||||
Credit loss reserve | (1,550,490) | ||||||||||||||||||||
ICON Fund Fourteen | CFL | |||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable | |||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,258,000 | ||||||||||||||||||||
ICON Fund Fourteen | LSC | ICON Loans | |||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable | |||||||||||||||||||||
Face amount of loans funded | $ 5,525,000 | ||||||||||||||||||||
Debt Instrument, Term | 4 years | ||||||||||||||||||||
Debt Instrument, Maturity Date | Dec. 30, 2020 | ||||||||||||||||||||
ICON Fund Fourteen | LSC | LIBOR | ICON Loans | |||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable | |||||||||||||||||||||
Derivative, Floor Interest Rate | 1.00% | ||||||||||||||||||||
Loans Receivable, Basis Spread on Variable Rate | 11.00% | ||||||||||||||||||||
ICON Fund Fourteen | TMA | |||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable | |||||||||||||||||||||
Notes receivable on non-accrual status | 1,950,000 | ||||||||||||||||||||
Credit loss, net | 865,158 | 1,750,000 | |||||||||||||||||||
Accrued investment income receivable | 0 | ||||||||||||||||||||
Finance income | $ 83,334 | $ 0 | $ 232,109 | $ 111,279 | |||||||||||||||||
ICON Fund Fourteen | TMA | Senior loans | |||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable | |||||||||||||||||||||
Investment maturity year month | 2018-10 | ||||||||||||||||||||
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 | |||||||||||||||||||||
Equity method investment, ownership percentage | 12.50% | ||||||||||||||||||||
Financing Receivable, Gross | $ 2,500,000 | ||||||||||||||||||||
Investment Owned, at Fair Value | 450,000 | ||||||||||||||||||||
Investment in joint venture and equity method investment | 450,000 | ||||||||||||||||||||
Loans and Leases Receivable, Related Parties, Additions | $ 550,000 | ||||||||||||||||||||
Stated interest rate | 12.00% | ||||||||||||||||||||
Number of affiliates | affiliate | 2 | ||||||||||||||||||||
Loan Receivable Face Amount | $ 2,500,000 | ||||||||||||||||||||
Loans and Equity Fund | $ 1,000,000 | ||||||||||||||||||||
Investment Maturity Date | Jan. 5, 2021 | ||||||||||||||||||||
ICON Fund Fourteen | TMA | Other Assets | |||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable | |||||||||||||||||||||
Accrued investment income receivable | $ 1,064,668 | ||||||||||||||||||||
Subsequent Event | TMA | |||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable | |||||||||||||||||||||
Additional extension terms | 20 days | ||||||||||||||||||||
Proceeds from Fees Received | $ 5,000 |
Net Investment in Notes Recei_4
Net Investment in Notes Receivable (Reconciliation) (Details) - USD ($) | Sep. 30, 2018 | Jun. 30, 2018 | Jan. 05, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable | |||||||
Credit loss reserve | $ 0 | ||||||
Net investment in notes receivable | $ 6,758,779 | $ 8,256,062 | |||||
Impaired financing receivable, unpaid principal balance | 7,980,347 | 3,500,490 | |||||
TMA | |||||||
Accounts, Notes, Loans and Financing Receivable | |||||||
Credit loss reserve | (2,615,158) | $ (1,750,000) | $ (33,393,546) | $ (33,393,546) | |||
Revised Credit Facility | TMA | |||||||
Accounts, Notes, Loans and Financing Receivable | |||||||
Principal outstanding | $ 20,000,000 | ||||||
Other Assets | TMA | |||||||
Accounts, Notes, Loans and Financing Receivable | |||||||
Credit loss reserve | (1,064,668) | ||||||
Notes Receivable | |||||||
Accounts, Notes, Loans and Financing Receivable | |||||||
Principal outstanding | 9,097,438 | 10,119,672 | |||||
Deferred fees | (259,863) | (313,120) | |||||
Credit loss reserve | (2,078,796) | (1,550,490) | |||||
Net investment in notes receivable | 6,758,779 | 8,256,062 | |||||
Impaired financing receivable, recorded investment | 5,653,472 | 1,950,000 | |||||
Notes Receivable | TMA | |||||||
Accounts, Notes, Loans and Financing Receivable | |||||||
Credit loss reserve | (1,550,490) | ||||||
ICON Fund Fourteen | TMA | |||||||
Accounts, Notes, Loans and Financing Receivable | |||||||
Financing Receivable, Recorded Investment, Current | $ 2,593,472 | ||||||
Accrued investment income receivable | 0 | ||||||
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 |
Net Investment in Notes Recei_5
Net Investment in Notes Receivable (Credit Loss Allowance Activity) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | $ 0 | |||
Write-offs, net of recoveries | 0 | |||
LSC | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Provisions | 2,287,243 | $ 2,287,243 | ||
Ending balance | $ 2,287,243 | 2,287,243 | ||
TMA | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | $ 33,393,546 | 2,615,158 | $ 33,393,546 | |
Provisions | 1,750,000 | 1,750,000 | ||
Write-offs, net of recoveries | (33,393,546) | $ (2,615,158) | (33,393,546) | |
Ending balance | $ 1,750,000 | $ 1,750,000 |
Leased Equipment At Cost_Asse_3
Leased Equipment At Cost/Assets Held for Sale (Lease Equipment Reconciliation) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Property, Plant and Equipment, Net, by Type [Abstract] | |||||
Less: accumulated depreciation | $ 0 | $ 0 | $ 1,267,681 | ||
Leased equipment at cost, less accumulated depreciation | 0 | 0 | 19,732,319 | ||
Depreciation | 401,104 | $ 738,892 | 1,629,026 | $ 2,216,675 | |
Rental income | 375,212 | 480,333 | 1,793,820 | 1,125,736 | |
Marine - dry bulk vessels | |||||
Property, Plant and Equipment, Net, by Type [Abstract] | |||||
Property Subject to or Available for Operating Lease, Gross | 0 | 0 | 21,000,000 | ||
Less: accumulated depreciation | 0 | 0 | 1,267,681 | ||
Leased equipment at cost, less accumulated depreciation | $ 19,732,319 | ||||
Depreciation | $ 0 | $ 212,857 | $ 425,714 | $ 638,570 |
Leased Equipment At Cost (Narra
Leased Equipment At Cost (Narrative) (Details) - USD ($) | Aug. 22, 2018 | Sep. 17, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Property, Plant and Equipment | ||||||||
Depreciation | $ 401,104 | $ 738,892 | $ 1,629,026 | $ 2,216,675 | ||||
Gain on sale of assets | 1,460,924 | 0 | 1,460,924 | 0 | ||||
Net loss | (4,067,574) | $ (1,479,691) | $ (888,761) | (13,317,398) | (6,436,026) | (18,214,244) | ||
Income (loss) from investment in joint ventures and equity-method investees | 33,061 | 202,348 | 201,506 | (1,163,891) | ||||
Bulk Progress | ||||||||
Property, Plant and Equipment | ||||||||
Proceeds from sale of equipment | $ 11,500,000 | |||||||
Marine - dry bulk vessels | ||||||||
Property, Plant and Equipment | ||||||||
Depreciation | 0 | 212,857 | 425,714 | 638,570 | ||||
Leased equipment at cost | ||||||||
Property, Plant and Equipment | ||||||||
Gain on sale of assets | 1,460,924 | |||||||
Net loss | $ 1,174,516 | $ 109,395 | $ 1,831,183 | $ 38,899 | ||||
Bulk Power | ||||||||
Property, Plant and Equipment | ||||||||
Proceeds from sale of equipment | $ 11,500,000 |
Vessels (Details)
Vessels (Details) - USD ($) | Jul. 14, 2016 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Oct. 12, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment | |||||||||
Deferred revenue | $ 0 | $ 3,013,554 | $ 0 | $ 2,470,065 | |||||
Depreciation | 401,104 | $ 738,892 | 1,629,026 | $ 2,216,675 | |||||
Impairment loss | 5,495,584 | 10,299,807 | 5,495,584 | 10,299,807 | |||||
Net loss | (4,067,574) | $ (1,479,691) | $ (888,761) | (13,317,398) | (6,436,026) | (18,214,244) | |||
Stena pooling arrangement | |||||||||
Property, Plant and Equipment | |||||||||
Pooling arrangement term (at least) | 12 months | ||||||||
Depreciation | 401,104 | 526,035 | 1,203,312 | 1,578,105 | |||||
Net loss | $ 2,673,850 | $ 10,746,861 | $ 4,797,709 | $ 12,138,095 | |||||
Subsequent Event | Stena pooling arrangement | |||||||||
Property, Plant and Equipment | |||||||||
Agreed Upon Sales Price | $ 30,000,000 |
Investment in Joint Ventures (N
Investment in Joint Ventures (Narrative) (Details) | Oct. 04, 2018USD ($) | Sep. 07, 2018USD ($) | Jul. 05, 2018USD ($) | Feb. 14, 2018USD ($) | Dec. 29, 2017USD ($) | Dec. 23, 2015USD ($)affiliate | Jun. 12, 2014USD ($) | Mar. 21, 2014USD ($)affiliate | Jun. 27, 2018USD ($) | May 18, 2018USD ($) | Sep. 30, 2018USD ($)affiliate | Jun. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)affiliate | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Jun. 04, 2018USD ($) | Jan. 05, 2018 |
Schedule of Equity Method Investments | ||||||||||||||||||
Repayments of Long-term Debt | $ 11,712,500 | $ 2,512,500 | ||||||||||||||||
Asset Impairment Charges | 5,495,584 | |||||||||||||||||
Finance income | $ 113,075 | $ 220,052 | 779,509 | 796,963 | ||||||||||||||
Credit loss | 2,287,243 | 2,584,553 | ||||||||||||||||
Investment in joint ventures | 8,129 | 8,129 | $ 4,871,247 | |||||||||||||||
Income from investment in joint venture | (33,061) | (202,348) | (201,506) | 1,163,891 | ||||||||||||||
Gain on sale of investment in joint venture | 225,377 | 0 | 225,377 | 0 | ||||||||||||||
Gain on sale of assets | $ 1,460,924 | 0 | $ 1,460,924 | 0 | ||||||||||||||
TMA | ||||||||||||||||||
Schedule of Equity Method Investments | ||||||||||||||||||
Equity method investment, ownership percentage | 12.50% | |||||||||||||||||
Number of affiliates | affiliate | 4 | 4 | ||||||||||||||||
Proceeds from Fees Received | $ 3,750 | |||||||||||||||||
Fugro Vessels | ||||||||||||||||||
Schedule of Equity Method Investments | ||||||||||||||||||
Proceeds from Sales of Assets, Investing Activities | $ 27,727,846 | |||||||||||||||||
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 | |||||||||||||||||
Charter Of Vessels Term Period | 12 years | |||||||||||||||||
Charter Contract Eligible for Termination, Period | 5 years | |||||||||||||||||
Proceeds from Fees Received | $ 55,000 | |||||||||||||||||
Percent Of Ownership To Be Sold | 100.00% | |||||||||||||||||
Fugro Vessels | Fund Fourteen | ||||||||||||||||||
Schedule of Equity Method Investments | ||||||||||||||||||
Equity method investment, ownership percentage | 15.00% | |||||||||||||||||
Proceeds from Fees Received | $ 8,250 | |||||||||||||||||
Fugro Vessels | ICON Fund Fifteen | ||||||||||||||||||
Schedule of Equity Method Investments | ||||||||||||||||||
Equity method investment, ownership percentage | 75.00% | |||||||||||||||||
Fugro Vessels | Icon Eci Fund Sixteen Lp [Member] | ||||||||||||||||||
Schedule of Equity Method Investments | ||||||||||||||||||
Equity method investment, ownership percentage | 10.00% | |||||||||||||||||
Epic Vessels | ||||||||||||||||||
Schedule of Equity Method Investments | ||||||||||||||||||
Number of affiliates | affiliate | 2 | |||||||||||||||||
Payments to Acquire Other Property, Plant, and Equipment | $ 41,600,000 | |||||||||||||||||
Lease term period | 8 years | |||||||||||||||||
Payments to Acquire Machinery and Equipment | $ 3,550,000 | |||||||||||||||||
Subordinated Debt | 4,750,000 | |||||||||||||||||
Payments to Acquire Equity Method Investments | $ 1,022,225 | |||||||||||||||||
Proceeds from sale of equipment | $ 32,412,488 | |||||||||||||||||
Income from investment in joint venture | 3,018,839 | |||||||||||||||||
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% | |||||||||||||||||
Payments to Acquire Equity Method Investments | $ 1,022,225 | |||||||||||||||||
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% | |||||||||||||||||
Pacific Crest Pte Ltd | Offshore Supply Vessel | ||||||||||||||||||
Schedule of Equity Method Investments | ||||||||||||||||||
Payments for (Proceeds from) Investments | $ 1,000,000 | |||||||||||||||||
Equity Method Investment, Realized Gain (Loss) on Disposal | 1,000,000 | |||||||||||||||||
Customer Non-refundable Fee | $ 25,000 | |||||||||||||||||
Asset Impairment Charges | $ 2,458,845 | $ 7,345,225 | 19,295,230 | |||||||||||||||
Payments to Acquire Other Property, Plant, and Equipment | $ 40,000,000 | |||||||||||||||||
Payments to Acquire Machinery and Equipment | 12,000,000 | |||||||||||||||||
Senior notes | 26,000,000 | |||||||||||||||||
Subordinated Debt | $ 2,000,000 | |||||||||||||||||
Income from investment in joint venture | (2,304,050) | $ (338,832) | $ (8,416,455) | $ (14,530,337) | ||||||||||||||
Pacific Crest Pte Ltd | Offshore Supply Vessel | Fund Fourteen | ||||||||||||||||||
Schedule of Equity Method Investments | ||||||||||||||||||
Equity Method Investment, Realized Gain (Loss) on Disposal | 125,000 | |||||||||||||||||
Asset Impairment Charges | $ 1,758,641 | |||||||||||||||||
Equity method investment, ownership percentage | 12.50% | |||||||||||||||||
Principal Investment Gain (Loss) | 0 | |||||||||||||||||
Equity Method Investment, Aggregate Cost | $ 0 | 0 | ||||||||||||||||
Pacific Crest Pte Ltd | Offshore Supply Vessel | ICON Fund Twelve | ||||||||||||||||||
Schedule of Equity Method Investments | ||||||||||||||||||
Equity method investment, ownership percentage | 75.00% | |||||||||||||||||
Pacific Crest Pte Ltd | Offshore Supply Vessel | ICON Fund Fifteen | ||||||||||||||||||
Schedule of Equity Method Investments | ||||||||||||||||||
Equity method investment, ownership percentage | 12.50% | |||||||||||||||||
AMC | ||||||||||||||||||
Schedule of Equity Method Investments | ||||||||||||||||||
Proceeds from Sales of Assets, Investing Activities | $ 1,500,000 | |||||||||||||||||
Litigation Settlement, Amount Awarded to Other Party | $ 555,456 | |||||||||||||||||
Gain (Loss) on Extinguishment of Debt | 4,764,270 | |||||||||||||||||
Gain on sale of assets | (2,045,055) | |||||||||||||||||
AMC | Fund Fourteen | ||||||||||||||||||
Schedule of Equity Method Investments | ||||||||||||||||||
Equity method investment, ownership percentage | 40.00% | |||||||||||||||||
Gain (Loss) on Extinguishment of Debt | $ 0 | |||||||||||||||||
AMC | ICON Fund Fifteen | ||||||||||||||||||
Schedule of Equity Method Investments | ||||||||||||||||||
Equity method investment, ownership percentage | 60.00% | |||||||||||||||||
DVB | Epic Vessels | ||||||||||||||||||
Schedule of Equity Method Investments | ||||||||||||||||||
Senior notes | $ 12,400,000 | |||||||||||||||||
DVB | Pacific Crest Pte Ltd | Offshore Supply Vessel | ||||||||||||||||||
Schedule of Equity Method Investments | ||||||||||||||||||
Repayments of Long-term Debt | 433,333 | |||||||||||||||||
Affiliated Entity [Member] | Pacific Crest Pte Ltd | Offshore Supply Vessel | ||||||||||||||||||
Schedule of Equity Method Investments | ||||||||||||||||||
Payments for (Proceeds from) Investments | $ 566,667 | |||||||||||||||||
Subsequent Event | TMA | ||||||||||||||||||
Schedule of Equity Method Investments | ||||||||||||||||||
Proceeds from Fees Received | $ 5,000 |
Investment in Joint Ventures (S
Investment in Joint Ventures (Schedule of Equity Investments) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Schedule of Equity Method Investments | ||||
Net (loss) income | $ (33,061) | $ (202,348) | $ (201,506) | $ 1,163,891 |
Offshore Supply Vessel | Pacific Crest Pte Ltd | ||||
Schedule of Equity Method Investments | ||||
Revenue | 433,333 | 137,958 | 1,000,000 | 2,466,746 |
Net (loss) income | (2,304,050) | (338,832) | (8,416,455) | (14,530,337) |
Our share of net (loss) income | $ 0 | $ 0 | $ 0 | $ (1,698,951) |
Investment in Cost-Method Inv_2
Investment in Cost-Method Investees (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jun. 29, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jan. 05, 2018 | |
Schedule of Equity Method Investments | ||||||
Income from investment in joint venture | $ (33,061) | $ (202,348) | $ (201,506) | $ 1,163,891 | ||
TMA | ||||||
Schedule of Equity Method Investments | ||||||
Equity method investment, ownership percentage | 12.50% | |||||
Icon Fund Fourteen | TMA | ||||||
Schedule of Equity Method Investments | ||||||
Equity method investment, ownership percentage | 1.56% | |||||
Equity Method Investee | Icon Fund Fourteen | TMA | ||||||
Schedule of Equity Method Investments | ||||||
Income from investment in joint venture | $ 37,351 |
Non-Recourse Long-Term Debt (Sc
Non-Recourse Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Less: debt issuance costs | $ 163,903 | $ 481,862 |
Total non-recourse long-term debt | 20,636,097 | 32,030,638 |
DVB Bank SE | ||
Debt Instrument [Line Items] | ||
Long term debt | $ 20,800,000 | $ 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 | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||||
Non-recourse long-term debt | $ 20,636,097 | $ 20,636,097 | $ 32,030,638 | ||
Repayments of Long-term Debt | 11,712,500 | $ 2,512,500 | |||
Carrying Value Of Underlying Assets Securing Non Recourse Debt | $ 55,331,215 | ||||
Interest expense from Amortization of Debt Financing Costs | $ 221,045 | $ 49,346 | 317,959 | $ 147,283 | |
Bulk Progress and Bulk Power | |||||
Debt Instrument [Line Items] | |||||
Repayments of Long-term Debt | $ 9,416,426 |
Transactions with Related Par_3
Transactions with Related Parties (Details) - USD ($) | Oct. 30, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | |||||||
Due to Related Parties | $ 32,076 | $ 32,076 | $ 75,587 | ||||
Net income (loss) allocated to General Partners | 40,676 | $ 133,188 | 64,344 | $ 182,123 | |||
Fees and other expenses paid or accrued [Abstract] | |||||||
Management fees | 0 | 0 | 0 | 216,979 | |||
Administrative expense reimbursements | 182,076 | 259,327 | 598,693 | 859,040 | |||
General Partner Distributions | 0 | 121,212 | 0 | ||||
ICON Capital, LLC | |||||||
Fees and other expenses paid or accrued [Abstract] | |||||||
Management fees | 0 | 0 | |||||
Administrative expense reimbursements | 182,076 | 259,327 | |||||
Total | 182,076 | 259,327 | 598,693 | 1,076,019 | |||
General Partner | ICON Capital, LLC | |||||||
Related Party Transaction [Line Items] | |||||||
Due to Related Parties | 32,076 | 32,076 | 75,587 | ||||
AMC | |||||||
Fees and other expenses paid or accrued [Abstract] | |||||||
Note receivable from joint venture | 0 | ||||||
Credit loss | $ 2,843,981 | ||||||
Interest income on note receivable | $ 0 | $ 0 | $ 0 | $ 0 | |||
Allowance for Loan and Lease Losses, Write-offs | $ 2,843,981 | ||||||
Subsequent Event | |||||||
Fees and other expenses paid or accrued [Abstract] | |||||||
General Partner Distributions | $ 109,091 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying Value Of Underlying Assets Securing Non Recourse Debt | $ 55,331,215 | ||
Asset held for sale | $ 28,900,000 | $ 0 | |
Nonrecurring | Fair Value | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, Plant, and Equipment, Fair Value Disclosure | $ 30,000,000 | ||
Shipping and Offshore Energy Assets | Nonrecurring | Fair Value | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, Plant, and Equipment, Fair Value Disclosure | $ 0 | ||
Shipping and Offshore Energy Assets | Nonrecurring | Fair Value | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, Plant, and Equipment, Fair Value Disclosure | 0 | ||
Shipping and Offshore Energy Assets | Nonrecurring | Fair Value | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Property, Plant, and Equipment, Fair Value Disclosure | $ 30,000,000 |
Fair Value Measurements (FV Of
Fair Value Measurements (FV Of Assets And Liabilities) (Details) | Sep. 30, 2018USD ($) |
Carrying Value | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Principal outstanding on fixed-rate notes receivable | $ 3,710,563 |
Fair Value | Level 3 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Principal outstanding on fixed-rate notes receivable | $ 3,662,274 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value on Non Recurring Basis) (Details) - USD ($) | 9 Months Ended | |||
Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Carrying Value Of Underlying Assets Securing Non Recourse Debt | $ 55,331,215 | |||
Asset held for sale | $ 28,900,000 | $ 0 | ||
Credit loss | $ 0 | |||
Asset Impairment Charges | 5,495,584 | |||
Nonrecurring | Fair Value | Level 3 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Property, Plant, and Equipment, Fair Value Disclosure | $ 30,000,000 | |||
Shipping and Offshore Energy Assets | Nonrecurring | Fair Value | Level 1 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Property, Plant, and Equipment, Fair Value Disclosure | $ 0 | |||
Shipping and Offshore Energy Assets | Nonrecurring | Fair Value | Level 2 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Property, Plant, and Equipment, Fair Value Disclosure | 0 | |||
Shipping and Offshore Energy Assets | Nonrecurring | Fair Value | Level 3 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Property, Plant, and Equipment, Fair Value Disclosure | $ 30,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Commitments and Contingencies Disclosure [Abstract] | |||
Restricted cash | $ 2,024,810 | $ 1,500,000 | $ 1,366,928 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) | Oct. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 |
Subsequent Event | ||||
General Partner Distributions | $ 0 | $ 121,212 | $ 0 | |
Subsequent Event | ||||
Subsequent Event | ||||
General Partner Distributions | $ 109,091 | |||
Distribution Made to Limited Partner, Cash Distributions Paid | $ 10,799,999 |