Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Sep. 18, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | COMMONWEALTH INCOME & GROWTH FUND VII, LP | |
Entity Central Index Key | 0001450335 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | true | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Jun. 30, 2021 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2021 | |
Entity Ex Transition Period | false | |
Entity Common Stock Shares Outstanding | 0 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 333-156357 | |
Entity Incorporation State Country Code | PA | |
Entity Tax Identification Number | 26-3733264 | |
Entity Address Address Line 1 | 4532 US Highway 19 North | |
Entity Address Address Line 2 | Suite 200 | |
Entity Address City Or Town | New Port Richey | |
Entity Address State Or Province | FL | |
Entity Address Postal Zip Code | 34652 | |
City Area Code | 877 | |
Local Phone Number | 654-1500 | |
Entity Interactive Data Current | Yes |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 67,462 | $ 495,494 |
Lease income receivable, net of reserve of approximately $67,000 at both June 30, 2021 and December 31, 2020 | 209,813 | 128,580 |
Accounts receivable, Commonwealth Capital Corp, net of accounts payable of approximately $29,994 and $46,000 at June 30, 2021 and December 31, 2020, respectively | 866,249 | 449,627 |
Other receivables, net of reserve of approximately $305,000 at both June 30,2021, and December 2020, respectively | 3,245 | 18,436 |
Prepaid expenses | 4,566 | 10,282 |
Total current assets | 1,151,335 | 1,102,419 |
Net investment in finance leases | 41,165 | 46,459 |
Investment in COF2 | 581,597 | 616,771 |
Equipment, at cost | 13,995,592 | 14,912,479 |
Accumulated depreciation | (13,214,656) | (13,596,631) |
Equipment, net | 780,936 | 1,315,848 |
Equipment acquisition costs and deferred expenses, net of accumulated amortization of approximately $95,198 and $147,000 at June 30, 2021 and December 31, 2020, respectively | 16,923 | 33,472 |
Equipment gross | 16,923 | 33,472 |
Total assets | 2,571,956 | 3,114,969 |
LIABILITIES | ||
Accounts payable | 135,394 | 123,089 |
Accounts payable, CIGF, Inc. | 255,248 | 176,251 |
Other accrued expenses | 12 | 12 |
Unearned lease income | 34,035 | 79,063 |
Notes payable | 196,608 | 472,425 |
Total liabilities | 621,297 | 850,840 |
PARTNERS' CAPITAL | ||
General Partner | 1,050 | 1,050 |
Limited Partners | 1,949,610 | 2,263,079 |
Total Partners' capital | 1,950,660 | 2,264,129 |
Total liabilities and Partners' capital | $ 2,571,956 | $ 3,114,969 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Condensed Balance Sheets | ||
Lease income receivable, reserve | $ 67,000 | $ 67,000 |
Accounts payable | 29,994 | 46,000 |
Other receivables, reserve | 305,000 | 305,000 |
Equipment, accumulated amortization | $ 95,198 | $ 147,000 |
Condensed Statements of Operati
Condensed Statements of Operations (unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue | ||||
Lease | $ 305,641 | $ 528,672 | $ 654,530 | $ 1,026,268 |
Interest and other | 387 | 973 | 7,695 | 1,549 |
Sales and property taxe | 13,733 | 21,493 | 30,554 | 42,398 |
Gain on sale of equipment | 54,193 | 0 | 63,466 | 57,853 |
Total revenue and gain on sale of equipment | 373,953 | 551,138 | 756,245 | 1,128,068 |
Expenses | ||||
Operating, excluding depreciation and amortization | 156,023 | 201,758 | 334,237 | 438,094 |
Equipment management fee, General Partner | 15,343 | 22,952 | 32,848 | 47,832 |
Interest | 2,894 | 13,604 | 8,533 | 31,226 |
Depreciation | 287,918 | 333,075 | 574,352 | 678,727 |
Amortization of equipment acquisition costs and deferred expenses | 4,875 | 18,488 | 16,549 | 36,860 |
Sales and property taxes | 13,733 | 21,493 | 30,554 | 42,398 |
Bad debt expense | 0 | 9,969 | 0 | 25,925 |
Loss on sale of equipment | 0 | 25,280 | 0 | 25,280 |
Total expenses | 480,786 | 646,619 | 997,073 | 1,326,342 |
Other (loss) gain | ||||
(Loss) Gain in investment from COF 2 | (22,321) | (61,667) | (35,174) | 56,408 |
Total other (loss) gain | (22,321) | (61,667) | (35,174) | 56,408 |
Net Loss | (129,154) | (157,148) | (276,002) | (141,866) |
Net Loss income allocated to Limited Partners | $ (129,154) | $ (157,148) | $ (276,002) | $ (141,866) |
Net Loss per equivalent Limited Partnership unit | $ (0.08) | $ (0.10) | $ (0.18) | $ (0.09) |
Weighted average number of equivalent limited partnership units outstanding during the year | 1,533,035 | 1,538,235 | 1,533,035 | 1,538,235 |
Condensed Statement of Partners
Condensed Statement of Partners' Capital (unaudited) - USD ($) | Total | General Partner [Member] | Limited Partner [Member] |
Balance, shares at Dec. 31, 2019 | 50 | 1,542,106 | |
Balance, amount at Dec. 31, 2019 | $ 2,808,394 | $ 1,050 | $ 2,807,344 |
Net income | 15,282 | 0 | $ 15,282 |
Redemptions, shares | (3,871) | ||
Redemptions, amount | (28,740) | $ 0 | $ (28,740) |
Balance, shares at Mar. 31, 2020 | 50 | 1,538,235 | |
Balance, amount at Mar. 31, 2020 | 2,794,936 | $ 1,050 | $ 2,793,886 |
Net income | (157,148) | $ 0 | $ (157,148) |
Balance, shares at Jun. 30, 2020 | 50 | 1,538,235 | |
Balance, amount at Jun. 30, 2020 | 2,637,788 | $ 1,050 | $ 2,636,738 |
Balance, shares at Dec. 31, 2020 | 50 | 1,537,535 | |
Balance, amount at Dec. 31, 2020 | 2,264,129 | $ 1,050 | $ 2,263,079 |
Net income | (146,849) | 0 | $ (146,849) |
Redemptions, shares | (4,500) | ||
Redemptions, amount | (37,467) | $ 0 | $ (37,467) |
Balance, shares at Mar. 31, 2021 | 50 | 1,533,035 | |
Balance, amount at Mar. 31, 2021 | 2,079,813 | $ 1,050 | $ 2,078,763 |
Net income | (129,154) | $ 0 | $ (129,154) |
Balance, shares at Jun. 30, 2021 | 50 | 1,533,035 | |
Balance, amount at Jun. 30, 2021 | $ 1,950,660 | $ 1,050 | $ 1,949,610 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flow (unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Condensed Statements of Cash Flow (unaudited) | ||
Net cash used in operating activities | $ (414,592) | $ (251,227) |
Cash flows from investing activities | ||
Capital Expenditures | (39,439) | (52,424) |
Equipment acquisition fees paid to General Partner | 0 | (8,609) |
Net proceeds from the sale of equipment | 63,466 | 143,168 |
Distributions from Investment in COF2 | 0 | 12,239 |
Net cash provided by investing activities | 24,027 | 86,215 |
Cash flows from financing activities | ||
Redemptions | (37,467) | (28,740) |
Debt placement fee paid to the General Partner | 0 | (1,628) |
Net cash used in financing activities | (37,467) | (30,368) |
Net decrease in cash and cash equivalents | (428,032) | (195,380) |
Cash and cash equivalents beginning of period | 495,494 | 540,798 |
Cash and cash equivalents end of period | $ 67,462 | $ 345,418 |
Business
Business | 6 Months Ended |
Jun. 30, 2021 | |
Business | |
Note- 1 Business | 1. Business Commonwealth Income & Growth Fund VII, LP (the “Partnership”) is a limited partnership organized in the Commonwealth of Pennsylvania on November 14, 2008. The Partnership offered for sale up to 2,500,000 units of limited partnership interest at the purchase price of $20 per unit (the “offering”). The Partnership reached the minimum amount in escrow and commenced operations on March 31, 2010. The offering terminated on November 22, 2011 with 1,572,900 units sold for a total of approximately $31,432,000 in limited partner contributions. The Partnership uses the proceeds of the offering to acquire, own and lease various types of computer information technology equipment and other similar capital equipment, which is leased primarily to U.S. corporations and institutions. Commonwealth Capital Corp. (“CCC”), on behalf of the Partnership and other affiliated partnerships, acquires computer equipment subject to associated debt obligations and lease agreements and allocates a participation in the cost, debt and lease revenue to the various partnerships based on certain risk factors. The Partnership’s general partner is Commonwealth Income & Growth Fund, Inc. (the “General Partner”), a Pennsylvania corporation which is an indirect wholly-owned subsidiary of CCC. CCC is a member of the Institute for Portfolio Alternatives (“IPA”) and the Equipment Leasing and Finance Association (“ELFA”). Approximately ten years after the commencement of operations, the Partnership intends to sell or otherwise dispose of all of its equipment, make final distributions to partners, and to dissolve. Unless sooner terminated or extended pursuant to the terms of its Limited Partnership Agreement (the “Agreement”), the Partnership is scheduled to terminate on December 31, 2021. The General Partner intends to initiate a proxy vote to investors to extend the operational phase to December 31, 2024, in an effort to increase overall return to investors. Upon completion of its operational phase, it is anticipated that the Partnership will begin its liquidation phase. Assuming the proxy vote is passed, the General Partner intends to fully liquidate or otherwise dispose of all of its equipment, make final distribution to partners, and dissolve on or before December 31, 2026. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Summary of Significant Accounting Policies | |
Note- 2 Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Financial information as of December 31, 2020 has been derived from the audited financial statements of the Partnership, but does not include all disclosures required by generally accepted accounting principles to be included in audited financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the financial information for the periods indicated, have been included. Operating results for the three and six months June 30, 2021 are not necessarily indicative of financial results that may be expected for the full year ended December 31, 2021. Equity Method Investment The Partnership accounts for its investment in COF2 under the equity method in accordance with Accounting Standards Codification (“ASC”) 323. Under the equity method, the Partnership records its proportionate share of the Fund’s net income (loss). Capital contributions, distributions and net income (loss) of such entities are recorded in accordance with the terms of the governing documents. An allocation of net income (loss) may differ from the stated ownership percentage interest in such entity as a result of distributions and allocation formulas, if any, as described in such governing documents. Disclosure of Fair Value of Financial Instruments Estimated fair value was determined by management using available market information and appropriate valuation methodologies. However, judgment was necessary to interpret market data and develop estimated fair value. Receivables, accounts payable and accrued expenses and other liabilities are carried at amounts which reasonably approximate their fair values as of June 30, 2021 and December 31, 2020 due to the short-term nature of these financial instruments. The Partnership’s long-term debt consists of notes payable, which are secured by specific equipment and are nonrecourse liabilities of the Partnership. The estimated fair value of this debt at June 30, 2021 and December 31, 2020 approximates the carrying value of these instruments, due to the interest rates on the debt approximating current market interest rates. The Partnership classifies the fair value of its notes payable within Level 2 of the valuation hierarchy based on the observable inputs used to estimate fair value. Cash and cash equivalents We consider cash equivalents to be highly liquid investments with the original maturity of 90 days or less. At June 30, 2021, cash and cash equivalents was held in one bank account maintained at one financial institution with an aggregate balance of approximately $73,000. Bank accounts are federally insured up to $250,000 by the FDIC. At June 30, 2021, the total cash bank balance was as follows: At June 30, 2021 Balance Total bank balance $ 73,000 FDIC insured (73,000 ) Uninsured amount $ - The Partnership believes it mitigates the risk of holding uninsured deposits by only depositing funds with major financial institutions. The Partnership has not experienced any losses in our accounts, and believes it is not exposed to any significant credit risk. The amount in its accounts will fluctuate throughout 2021 due to many factors, including cash receipts, equipment acquisitions, interest rates and distributions to limited partners. Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). This standard establishes an impairment model (known as the current expected credit loss (“CECL”) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which is intended to result in a timelier recognition of losses. Under the CECL model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments, but not expected extensions or modifications) from the date of initial recognition of the financial instrument. Measurement of expected credit losses are to be based on relevant forecasts that affect collectability. The scope of financial assets within the CECL methodology is broad and includes trade receivables from certain revenue transactions and certain off-balance sheet credit exposures. Different components of the guidance require modified retrospective or prospective adoption. In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses. ASU 2018-19 clarifies that receivables arising from operating leases are not within the scope of the credit losses standard. Instead, entities would need to apply other U.S. GAAP, namely Topic 842 (Leases), to account for changes in the collectability assessment for operating leases. Other than operating lease receivables, Partnership trade receivables include receivables from finance leases and equipment sales. Under Topic 606 (Revenue from Contracts with Customers), revenue is recognized when, among other criteria, it is probable that the entity will collect the consideration to which it is entitled for goods or services transferred to a customer. At the point that finance lease receivables are recorded, they become subject to the CECL model and estimates of expected credit losses over their contractual life will be required to be recorded at inception based on historical information, current conditions, and reasonable and supportable forecasts. Trade receivables derived from equipment sales are of short duration and there is not a material difference between incurred losses and expected losses. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which amends and clarifies several provisions of Topic 326. In May 2019, the FASB issued ASU 2019-05, Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief, which amends Topic 326 to allow the fair value option to be elected for certain financial instruments upon adoption. ASU 2019-10 extended the effective date of ASU 2016-13 for the Partnership until December 15, 2022. While we continue to evaluate the new guidance, including the subsequent updates to Topic 326, we do not anticipate that adoption will have a material impact on the Partnership financial statements and related disclosures. For the three and six months ended June 30, 2021 and 2020, Partnership finance lease revenue subject to CECL represented less than 1% of total lease revenue. |
Information Technology, Medical
Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment ('Equipment') | 6 Months Ended |
Jun. 30, 2021 | |
Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment ('Equipment') | |
Note- 3 Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment ('Equipment') | 3. Information Technology, Medical Technology, Telecommunications Technology, Inventory Management and Other Business-Essential Capital Equipment (“Equipment”) The Partnership is the lessor of equipment under leases with periods that generally will range from 12 to 48 months. In general, associated costs such as repairs and maintenance, insurance and property taxes are paid by the lessee. Gains or losses from the sale of equipment are recognized when the lease is modified and terminated concurrently. Gain from sale of equipment included in lease revenue for the three months ended June 30, 2021 was approximately $9,000. Loss from sale of equipment included in lease revenue for the three months ended June 30, 2020 was approximately $25,000. Gain from sale of equipment included in lease revenue for the six months ended June 30, 2021 and 2020 was $63,000 and $33,000, respectively. CCC, on behalf of the Partnership and on behalf of other affiliated companies and partnerships (“partnerships”), acquires equipment subject to associated debt obligations and lease agreements and allocates a participation in the cost, debt and lease revenue to the various companies based on certain risk factors. The Partnership’s share of the cost of the equipment in which it participates with other partnerships at June 30, 2021 was approximately $10,226,000 and is included in the Partnership’s equipment on its balance sheet. The Partnership’s share of the outstanding debt associated with this equipment at June 30, 2021 was approximately $136,000 and is included in the Partnership’s notes payable on its balance sheet. The total cost of the equipment shared by the Partnership with other partnerships at June 30, 2021 was approximately $23,869,000. The total outstanding debt related to the equipment shared by the Partnership at June 30, 2021 was approximately $474,000. The Partnership’s share of the cost of the equipment in which it participates with other partnerships at December 31, 2020 was approximately $10,226,000 and is included in the Partnership’s equipment on its balance sheet. The Partnership’s share of the outstanding debt associated with this equipment at December 31, 2020 was approximately $380,000 and is included in the Partnership’s notes payable on its balance sheet. The total cost of the equipment shared by the Partnership with other partnerships at December 31, 2020 was approximately $23,869,000. The total outstanding debt related to the equipment shared by the Partnership at December 31, 2020 was approximately $1,020,000. As the Partnership and the other programs managed by the General Partner increase their overall portfolio size, opportunities for shared participation are expected to continue. Sharing in the acquisition of a lease portfolio gives the fund an opportunity to acquire additional assets and revenue streams, while allowing the fund to remain diversified and reducing its overall risk with respect to one portfolio. As additional investment opportunities arise during 2021, the Partnership expects total shared equipment and related debt to trend higher as the Partnership builds its portfolio. The following is a schedule of approximate future minimum rentals on operating leases: Periods Ended December 31, Amount Six months ended December 31, 2021 167,000 Year Ended December 31, 2022 128,500 Year Ended December 31, 2023 77,000 Year Ended December 31, 2024 60,000 Year Ended December 31, 2025 3,500 $ 436,000 Finance Leases: The following lists the components of the net investment in finance leases: June 30, 2021 December 31, 2020 Carrying value of lease receivable $ 38,000 $ 43,000 Estimated residual value of leased equipment (unguaranteed) 2,000 2,000 Initial direct costs finance leases 1,000 1,000 Net investment in finance leases $ 41,000 $ 46,000 We assess credit risk for all of our customers, including those that lease under finance leases. This credit risk is assessed using an internally developed model which incorporates credit scores from third party providers and our own customer risk ratings and is periodically reviewed. Our internal ratings are weighted based on the industry that the customer operates in. When assessing risk, factors taken into consideration include both general and industry specific qualitative and quantitative metrics. We separately take in to consideration payment history, open lawsuits, liens and judgments. Typically, we will not extend credit to a company that has been in business for less than 5 years or that has filed for bankruptcy within the same period. Our internally based model may classify a company as high risk based on our analysis of their audited financial statements and their payment history. Additional considerations of high risk may include history of late payments, open lawsuits and liens or judgments. In an effort to mitigate risk, we typically require deposits from those in this category. A reserve for credit losses is deemed necessary when payment has not been received for one or more months of receivables due on the equipment held under finance leases. At the end of each period, management evaluates the open receivables due on this equipment and determines the need for a reserve based on payment history and any current factors that would have an impact on payments. The following table presents the credit risk profile, by creditworthiness category, of our finance lease receivables at June 30, 2021: Risk Level Percent of Total Low -% Moderate-Low -% Moderate -% Moderate-High 100 % High -% Net finance lease receivable 100 % As of June 30, 2021, and December 31, 2020, we determined that we did not have a need for an allowance for uncollectible accounts associated with any of our finance leases, as the customer payment histories with us, associated with these leases, has been positive. CCC, on behalf of the Partnership and on behalf of other affiliated companies and partnerships (“partnerships”), acquires equipment subject to associated debt obligations and lease agreements and allocates a participation in the cost, debt and lease revenue to the various companies based on certain risk factors. The following is a schedule of future minimum rentals on non-cancelable finance leases at June 30, 2021: Amount Six months ended December 31, 2021 $ 6,000 2022 12,000 2023 12,000 2024 11,000 Total $ 41,000 |
Investment in COF 2
Investment in COF 2 | 6 Months Ended |
Jun. 30, 2021 | |
Investment in COF 2 | |
Note- 4 Investment in COF 2 | 4. Investment in COF 2 On August 13, 2015, the Partnership purchased 1,648 units for $1,500,000, of Commonwealth Opportunity Fund 2 (“COF 2”), an affiliate fund of the General Partner. In accordance with the Partnership Agreement, the Partnership is permitted to invest in equipment Programs formed by the General Partner or its affiliates. COF 2 is an affiliate program that broke escrow on August 13, 2015. The General Partner believes this action is in the best interests of all the Programs. The Partnership accounts for its investment in COF 2 under the equity method in accordance with ASC 323. The Partnership’s net investment in COF 2 at June 30, 2021 and December 31, 2020 was approximately $582,000 and $617,000, respectively (see COF 2 Financial Summary below). During the six months ended June 30, 2021, COF 2 did not declare any distribution to the Partnership. June 30, December 31, COF 2 Summarized Financial Information 2021 2020 Assets $ 1,906,000 $ 1,993,000 Liabilities $ 275,000 $ 296,000 Partners' capital $ 1,631,000 $ 1,697,000 Revenue $ 239,500 $ 794,000 Expenses $ 304,500 $ 703,000 Net income (loss) $ (65,000 ) $ 91,000 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions | |
Note- 5 Related Party Transactions | 5. Related Party Transactions Receivables/Payables As of June 30, 2021, and December 31, 2020, the Partnership’s related party receivables and payables are short term, unsecured, and non-interest bearing. For the six months ended June 30, 2021 2020 Reimbursable Expenses The General Partner and its affiliates are entitled to reimbursement by the Partnership for the cost of goods, supplies or services obtained and used by the General Partner in connection with the administration and operation of the Partnership from third parties unaffiliated with the General Partner. In addition, the General Partner and its affiliates are entitled to reimbursement of certain expenses incurred by the General Partner and its affiliates in connection with the administration and operation of the Partnership. For the six months ended June 30, 2021 and 2020, the Partnership was charged approximately $179,000 and $206,000 in Other LP expense, respectively. $ 312,000 $ 409,000 Equipment acquisition fee The General Partner earned an equipment acquisition fee of 4% of the purchase price of each item of equipment purchased as compensation for the negotiation of the acquisition of the equipment and lease thereof or sale under a conditional sales contract. For the six months ended June 30, 2021, the General Partner earned acquisition fees from operating and finance leases of approximately $2,000 and $9,000, respectively. $ 2,000 $ 9,000 Debt placement fee As compensation for arranging term debt to finance our acquisition of equipment, we will pay the general partner a fee equal to one percent of such indebtedness; provided, however, that such fee shall be reduced to the extent we incur such fees to third parties unaffiliated with the general partner or the lender with respect to such indebtedness. No such fee will be paid with respect to borrowings from the general partner or its affiliates. We intend to initially acquire leases on an all cash basis with the proceeds of this offering, but may borrow funds after the offering proceeds have been invested. The amount we borrow, and therefore the amount of the fee, will depend upon interest rates at the time of a loan, and the amount of leverage we determine is appropriate at the time. Fees will increase as the amount of leverage we use increases, and as turnover in the portfolio increases and additional equipment is purchased using leverage. $ - $ 2,000 Equipment management fee We pay our general partner a monthly fee equal to the lesser of (a) the fees which would be charged by an independent third party in the same geographic market for similar services and equipment or (b) the sum of (i) two percent of gross lease revenues attributable to equipment subject to full payout net leases which contain net lease provisions and (ii) five percent of the gross lease revenues attributable to equipment subject to operating leases. Our general partner, based on its experience in the equipment leasing industry and current dealings with others in the industry, will use its business judgment to determine if a given fee is competitive, reasonable and customary. The amount of the fee will depend upon the amount of equipment we manage, which in turn will depend upon the amount we raise in this offering. Reductions in market rates for similar services would also reduce the amount of this fee we will receive. $ 33,000 $ 48,000 Equipment liquidation fee Also referred to as a "resale fee." With respect to each item of equipment sold by the general partner, we will pay a fee equal to the lesser of (i) 50% of the competitive equipment sale commission or (ii) three percent of the sales price of the equipment. The payment of this fee is subordinated to the receipt by the limited partners of (i) a return of their capital contributions and a 10% per annum cumulative return, compounded daily, on adjusted capital contributions and (ii) the net disposition proceeds from such sale in accordance with the partnership agreement. Our general partner, based on its experience in the equipment leasing industry and current dealings with others in the industry, uses its business judgment to determine if a given sales commission is competitive, reasonable and customary. Such fee will be reduced to the extent any liquidation or resale fees are paid to unaffiliated parties. The amount of such fees will depend upon the sale price of equipment sold. Sale prices will vary depending upon the type, age and condition of equipment sold. The shorter the terms of our leases, the more often we may sell equipment, which will increase liquidation fees we receive. $ 2,000 $ 5,000 |
Notes Payable
Notes Payable | 6 Months Ended |
Jun. 30, 2021 | |
Notes Payable | |
Note- 6 Notes Payable | 6. Notes Payable Notes payable consisted of the following approximate amounts: June 30, 2021 December 31, 2020 Installment note payable to bank; interest at 5.31% due in monthly installments of $52,336, including interest, with final payment in January 2021 - 51,500 Installment note payable to bank; interest at 6.00% due in quarterly installments of $74,533, including interest, with final payment in January 2021 - 73,000 Installment notes payable to bank; interest at 5.33% due in monthly installments ranging from $4,312 to $15,329, including interest, with final payment in August 2021 39,000 154,000 Installment note payable to bank; interest at 4.10% due in monthly installments of $5,229, including interest, with final payment in March 2023 106,000 134,500 Installment note payable to bank; interest at 5.00% due in monthly installments of $1,377, including interest, with final payment in November 2024 52,000 59,000 $ 197,000 $ 472,000 The notes are secured by specific equipment with a carrying value of approximately $471,000 and are nonrecourse liabilities of the Partnership. As such, the notes do not contain any financial debt covenants with which we must comply on either an annual or quarterly basis. Aggregate approximate maturities of notes payable for each of the periods subsequent to June 30, 2021 are as follows: Amount Six months ended December 31, 2021 76,000 Year ended December 31, 2022 75,000 Year ended December 31, 2022 31,000 Year ended December 31, 2024 15,000 $ 197,000 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2021 | |
Supplemental Cash Flow Information | |
Note- 7 Supplemental Cash Flow Information | 7. Supplemental Cash Flow Information No interest or principal on notes payable was paid by the Partnership during 2021 and 2020 because direct payment was made by lessee to the bank in lieu of collection of lease income and payment of interest and principal by the Partnership. Other noncash activities included in the determination of net loss are as follows: Six months ended June 30, 2021 2020 Lease revenue net of interest expense on notes payable realized as a result of direct payment of principal by lessee to bank $ 276,000 $ 605,000 Noncash investing and financing activities include the following: Six months ended June 30, 2021 2020 Debt assumed in connection with purchase of equipment $ - $ 163,000 During the six months ended June 30, 2021 and 2020, the Partnership wrote-off fully amortized acquisition and finance fees of approximately $117,000 and $22,000, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies | |
Note- 8 Commitments and Contingencies | 8. Commitments and Contingencies COVID-19 Pandemic The amount of revenue recognized and the pattern of revenue recognition may be impacted by COVID-19. Some of the business sectors that we service such as education centers, medical facilities, payroll administrators, manufacturing and transportation, we may need to account for returns and refund liabilities. The pattern of revenue recognition may change for delays in rendering services. In periods ended subsequent to the outbreak of COVID-19, the impact on expected credit losses and future cash flow projections used in impairment testing will need to be considered. The Company continues to evaluate whether adjustments to the financial statements are required or whether additional disclosures are necessary. In our leasing business, the Company is always subject to credit losses as it relates to a customer’s ability to make timely rental payments. The impact of COVID-19 may contribute to risk of non-performance, where a customer may experience financial difficulty and may delay in making timely payments. The Company recognizes impairment of receivables and loans when losses are incurred, which is when it is probable that an entity will be unable to collect all amounts due according to the contractual terms of the arrangement. Impairment is measured based on the present value of expected future cash flows discounted at the receivable’s or loans effective interest rate, except that, as a practical expedient, impairment can be measured based on a receivable’s or loans’ observable market price or the fair value of the underlying collateral. The Company believes its estimate of expected losses have been recognized based on historical experience, current conditions, and reasonable forecasts. The impacts of COVID-19 may necessitate additional adjustments in future forecasts of expected losses. Although the Partnership cannot estimate the length or gravity of the impact of the COVID-19 outbreak at this time, if the pandemic continues, it may have a material adverse effect on the Partnership results of future operations, financial position, and liquidity in fiscal year 2021 and beyond. FINRA On May 3, 2013, the FINRA Department of Enforcement filed a complaint naming Commonwealth Capital Securities Corp. (“CCSC”) and the owner of the firm, Kimberly Springsteen-Abbott, as respondents; however, on October 22, 2013, FINRA filed an amended complaint that dropped the allegations against CCSC and reduced the scope of the allegations against Ms. Springsteen-Abbott. The sole remaining charge was that Ms. Springsteen-Abbott had approved the misallocation of some expenses to certain Funds. Management believes that the expenses at issue include amounts that were proper and that were properly allocated to Funds, and also identified a smaller number of expenses that had been allocated in error, but were adjusted and repaid to the affected Funds when they were identified in 2012. During the period in question, Commonwealth Capital Corp. (“CCC”) and Ms. Springsteen-Abbott provided important financial support to the Funds, voluntarily absorbed expenses and voluntarily waived fees in amounts aggregating in excess of any questioned allocations. A Hearing Panel ruled on March 30, 2015, that Ms. Springsteen-Abbott should be barred from the securities industry because the Panel concluded that she allegedly misallocated approximately $208,000 of expenses involving certain Funds over the course of three years. As such, management had already at that time reallocated back approximately $151,225 of the $208,000 (in allegedly misallocated expenses) to the affected funds, which was fully documented, as good faith payments for the benefit of those Income Funds. The decision of the Hearing Panel was stayed when it was appealed to FINRA's National Adjudicatory Council (the “NAC”) pursuant to FINRA Rule 9311. The NAC issued a decision that upheld the lower panel’s ruling and the bar took effect on August 23, 2016. Ms. Springsteen-Abbott appealed the NAC’s decision to the U.S. Securities and Exchange Commission (the “SEC”). On March 31, 2017, the SEC criticized that decision as so flawed that the SEC could not even review it, and remanded the matter back to FINRA for further consideration consistent with the SEC’s remand, but did not suggest any view as to a particular outcome. On July 21, 2017, FINRA reduced the list of 1,840 items totaling $208,000 to a remaining list of 87 items totaling $36,226 (which includes approximately $30,000 of continuing education expenses for personnel providing services to the Funds), and reduced the proposed fine from $100,000 to $50,000, but reaffirmed its position on the bar from the securities industry. Respondents promptly appealed FINRA’s revised ruling to the SEC. All the requested or allowed briefs have been filed with the SEC. Despite offering no additional evidence or legal reasoning from when SEC originally remanded this matter (for FINRA’s opinion being an unreviewably flawed opinion), the SEC upheld FINRA’s new order on February 7, 2020 to bar, but eliminated FINRA’s proposed fine. Ms. Springsteen-Abbott has filed a Petition for Review in the United States Court of Appeals for the District of Columbia Circuit to review a final order entered against her by the U.S. Securities and Exchange Commission. On February 26, 2021, the United States Court of Appeals for the District of Columbia Circuit, made their ruling. They dismissed in part and denied in part Ms. Springsteen-Abbott’s petition. This was regardless of CCC’s good faith reimbursements made many years ago of the questioned expense items of $208,000 (due to improper documentation), initially claimed misallocations by FINRA, even prior to FINRA’s reducing its final claim to $36,226. Prior to the original appeal to the SEC, Ms. Springsteen-Abbott discovered CCC’s required documentation of these items for FINRA review, which FINRA refused to consider, despite such efforts the District Court upheld the bar, despite admittingly not addressing her “due process” rights, for legal administrative procedural reasons. However, given the SEC’s prior removal of FINRA’s fine and the District Court upholding that removal, the General Partner anticipates that this ruling will not result in any material financial impact to the Funds. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Summary of Significant Accounting Policies (Policies) | |
Basis of Presentation | The unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Financial information as of December 31, 2020 has been derived from the audited financial statements of the Partnership, but does not include all disclosures required by generally accepted accounting principles to be included in audited financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the financial information for the periods indicated, have been included. Operating results for the three and six months June 30, 2021 are not necessarily indicative of financial results that may be expected for the full year ended December 31, 2021. |
Equity Method Investment | The Partnership accounts for its investment in COF2 under the equity method in accordance with Accounting Standards Codification (“ASC”) 323. Under the equity method, the Partnership records its proportionate share of the Fund’s net income (loss). Capital contributions, distributions and net income (loss) of such entities are recorded in accordance with the terms of the governing documents. An allocation of net income (loss) may differ from the stated ownership percentage interest in such entity as a result of distributions and allocation formulas, if any, as described in such governing documents. |
Disclosure of Fair Value of Financial Instruments | Estimated fair value was determined by management using available market information and appropriate valuation methodologies. However, judgment was necessary to interpret market data and develop estimated fair value. Receivables, accounts payable and accrued expenses and other liabilities are carried at amounts which reasonably approximate their fair values as of June 30, 2021 and December 31, 2020 due to the short-term nature of these financial instruments. The Partnership’s long-term debt consists of notes payable, which are secured by specific equipment and are nonrecourse liabilities of the Partnership. The estimated fair value of this debt at June 30, 2021 and December 31, 2020 approximates the carrying value of these instruments, due to the interest rates on the debt approximating current market interest rates. The Partnership classifies the fair value of its notes payable within Level 2 of the valuation hierarchy based on the observable inputs used to estimate fair value. |
Cash and Cash Equivalents | We consider cash equivalents to be highly liquid investments with the original maturity of 90 days or less. At June 30, 2021, cash and cash equivalents was held in one bank account maintained at one financial institution with an aggregate balance of approximately $73,000. Bank accounts are federally insured up to $250,000 by the FDIC. At June 30, 2021, the total cash bank balance was as follows: At June 30, 2021 Balance Total bank balance $ 73,000 FDIC insured (73,000 ) Uninsured amount $ - The Partnership believes it mitigates the risk of holding uninsured deposits by only depositing funds with major financial institutions. The Partnership has not experienced any losses in our accounts, and believes it is not exposed to any significant credit risk. The amount in its accounts will fluctuate throughout 2021 due to many factors, including cash receipts, equipment acquisitions, interest rates and distributions to limited partners. |
Recent Accounting Pronouncements Not Yet Adopted | In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). This standard establishes an impairment model (known as the current expected credit loss (“CECL”) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which is intended to result in a timelier recognition of losses. Under the CECL model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments, but not expected extensions or modifications) from the date of initial recognition of the financial instrument. Measurement of expected credit losses are to be based on relevant forecasts that affect collectability. The scope of financial assets within the CECL methodology is broad and includes trade receivables from certain revenue transactions and certain off-balance sheet credit exposures. Different components of the guidance require modified retrospective or prospective adoption. In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses. ASU 2018-19 clarifies that receivables arising from operating leases are not within the scope of the credit losses standard. Instead, entities would need to apply other U.S. GAAP, namely Topic 842 (Leases), to account for changes in the collectability assessment for operating leases. Other than operating lease receivables, Partnership trade receivables include receivables from finance leases and equipment sales. Under Topic 606 (Revenue from Contracts with Customers), revenue is recognized when, among other criteria, it is probable that the entity will collect the consideration to which it is entitled for goods or services transferred to a customer. At the point that finance lease receivables are recorded, they become subject to the CECL model and estimates of expected credit losses over their contractual life will be required to be recorded at inception based on historical information, current conditions, and reasonable and supportable forecasts. Trade receivables derived from equipment sales are of short duration and there is not a material difference between incurred losses and expected losses. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which amends and clarifies several provisions of Topic 326. In May 2019, the FASB issued ASU 2019-05, Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief, which amends Topic 326 to allow the fair value option to be elected for certain financial instruments upon adoption. ASU 2019-10 extended the effective date of ASU 2016-13 for the Partnership until December 15, 2022. While we continue to evaluate the new guidance, including the subsequent updates to Topic 326, we do not anticipate that adoption will have a material impact on the Partnership financial statements and related disclosures. For the three and six months ended June 30, 2021 and 2020, Partnership finance lease revenue subject to CECL represented less than 1% of total lease revenue. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Summary of Significant Accounting Policies (Tables) | |
Cash and cash equivalents | At June 30, 2021 Balance Total bank balance $ 73,000 FDIC insured (73,000 ) Uninsured amount $ - |
Information Technology, Medic_2
Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Information Technology, Medical Technology, Telecommunications Technology, Inventory Management Equipment ('Equipment') | |
Future minimum rentals on operating leases | Periods Ended December 31, Amount Six months ended December 31, 2021 167,000 Year Ended December 31, 2022 128,500 Year Ended December 31, 2023 77,000 Year Ended December 31, 2024 60,000 Year Ended December 31, 2025 3,500 $ 436,000 |
Net investment in direct financing leases | June 30, 2021 December 31, 2020 Carrying value of lease receivable $ 38,000 $ 43,000 Estimated residual value of leased equipment (unguaranteed) 2,000 2,000 Initial direct costs finance leases 1,000 1,000 Net investment in finance leases $ 41,000 $ 46,000 |
Finance lease risk level | Risk Level Percent of Total Low -% Moderate-Low -% Moderate -% Moderate-High 100 % High -% Net finance lease receivable 100 % |
Future minimum rentals on non-cancelable direct financing leases | Amount Six months ended December 31, 2021 $ 6,000 2022 12,000 2023 12,000 2024 11,000 Total $ 41,000 |
Investment in COF 2 (Tables)
Investment in COF 2 (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investment in COF 2 | |
COF 2 summarized financial information | June 30, December 31, COF 2 Summarized Financial Information 2021 2020 Assets $ 1,906,000 $ 1,993,000 Liabilities $ 275,000 $ 296,000 Partners' capital $ 1,631,000 $ 1,697,000 Revenue $ 239,500 $ 794,000 Expenses $ 304,500 $ 703,000 Net income (loss) $ (65,000 ) $ 91,000 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions | |
Related party transactions | For the six months ended June 30, 2021 2020 Reimbursable Expenses The General Partner and its affiliates are entitled to reimbursement by the Partnership for the cost of goods, supplies or services obtained and used by the General Partner in connection with the administration and operation of the Partnership from third parties unaffiliated with the General Partner. In addition, the General Partner and its affiliates are entitled to reimbursement of certain expenses incurred by the General Partner and its affiliates in connection with the administration and operation of the Partnership. For the six months ended June 30, 2021 and 2020, the Partnership was charged approximately $179,000 and $206,000 in Other LP expense, respectively. $ 312,000 $ 409,000 Equipment acquisition fee The General Partner earned an equipment acquisition fee of 4% of the purchase price of each item of equipment purchased as compensation for the negotiation of the acquisition of the equipment and lease thereof or sale under a conditional sales contract. For the six months ended June 30, 2021, the General Partner earned acquisition fees from operating and finance leases of approximately $2,000 and $9,000, respectively. $ 2,000 $ 9,000 Debt placement fee As compensation for arranging term debt to finance our acquisition of equipment, we will pay the general partner a fee equal to one percent of such indebtedness; provided, however, that such fee shall be reduced to the extent we incur such fees to third parties unaffiliated with the general partner or the lender with respect to such indebtedness. No such fee will be paid with respect to borrowings from the general partner or its affiliates. We intend to initially acquire leases on an all cash basis with the proceeds of this offering, but may borrow funds after the offering proceeds have been invested. The amount we borrow, and therefore the amount of the fee, will depend upon interest rates at the time of a loan, and the amount of leverage we determine is appropriate at the time. Fees will increase as the amount of leverage we use increases, and as turnover in the portfolio increases and additional equipment is purchased using leverage. $ - $ 2,000 Equipment management fee We pay our general partner a monthly fee equal to the lesser of (a) the fees which would be charged by an independent third party in the same geographic market for similar services and equipment or (b) the sum of (i) two percent of gross lease revenues attributable to equipment subject to full payout net leases which contain net lease provisions and (ii) five percent of the gross lease revenues attributable to equipment subject to operating leases. Our general partner, based on its experience in the equipment leasing industry and current dealings with others in the industry, will use its business judgment to determine if a given fee is competitive, reasonable and customary. The amount of the fee will depend upon the amount of equipment we manage, which in turn will depend upon the amount we raise in this offering. Reductions in market rates for similar services would also reduce the amount of this fee we will receive. $ 33,000 $ 48,000 Equipment liquidation fee Also referred to as a "resale fee." With respect to each item of equipment sold by the general partner, we will pay a fee equal to the lesser of (i) 50% of the competitive equipment sale commission or (ii) three percent of the sales price of the equipment. The payment of this fee is subordinated to the receipt by the limited partners of (i) a return of their capital contributions and a 10% per annum cumulative return, compounded daily, on adjusted capital contributions and (ii) the net disposition proceeds from such sale in accordance with the partnership agreement. Our general partner, based on its experience in the equipment leasing industry and current dealings with others in the industry, uses its business judgment to determine if a given sales commission is competitive, reasonable and customary. Such fee will be reduced to the extent any liquidation or resale fees are paid to unaffiliated parties. The amount of such fees will depend upon the sale price of equipment sold. Sale prices will vary depending upon the type, age and condition of equipment sold. The shorter the terms of our leases, the more often we may sell equipment, which will increase liquidation fees we receive. $ 2,000 $ 5,000 |
Notes Payable (Tables)
Notes Payable (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Notes Payable | |
Notes payable | June 30, 2021 December 31, 2020 Installment note payable to bank; interest at 5.31% due in monthly installments of $52,336, including interest, with final payment in January 2021 - 51,500 Installment note payable to bank; interest at 6.00% due in quarterly installments of $74,533, including interest, with final payment in January 2021 - 73,000 Installment notes payable to bank; interest at 5.33% due in monthly installments ranging from $4,312 to $15,329, including interest, with final payment in August 2021 39,000 154,000 Installment note payable to bank; interest at 4.10% due in monthly installments of $5,229, including interest, with final payment in March 2023 106,000 134,500 Installment note payable to bank; interest at 5.00% due in monthly installments of $1,377, including interest, with final payment in November 2024 52,000 59,000 $ 197,000 $ 472,000 |
Future aggregate payments of notes payable | Amount Six months ended December 31, 2021 76,000 Year ended December 31, 2022 75,000 Year ended December 31, 2022 31,000 Year ended December 31, 2024 15,000 $ 197,000 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Supplemental Cash Flow Information (Tables) | |
Other noncash activities | Six months ended June 30, 2021 2020 Lease revenue net of interest expense on notes payable realized as a result of direct payment of principal by lessee to bank $ 276,000 $ 605,000 |
Non-cash investing and financing activities | Six months ended June 30, 2021 2020 Debt assumed in connection with purchase of equipment $ - $ 163,000 |
Business (Details Narrative)
Business (Details Narrative) - USD ($) | Nov. 14, 2008 | Nov. 22, 2011 |
Business (Details Narrative) | ||
Offered sale, shares | 2,500,000 | |
Purchase price | $ 20 | |
Unit sold | 1,572,900 | |
Total contributions amount | $ 31,432,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | Jun. 30, 2021USD ($) |
Summary of Significant Accounting Policies | |
Total bank balance | $ 73,000 |
FDIC insured | (73,000) |
Uninsured amount | $ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 6 Months Ended | |||
Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Original Maturity terms | 90 years | |||
Total lease revenue | 1.00% | |||
FDIC amount | $ 250,000 | |||
Cash and cash equivalents | 67,462 | $ 495,494 | $ 345,418 | $ 540,798 |
Cash and Cash Equivalent [Member] | ||||
Cash and cash equivalents | $ 73,000 |
Information Technology Medical
Information Technology Medical Technology Telecommunications Technology Inventory Management Equipment (Details) | Jun. 30, 2021USD ($) |
Information Technology Medical Technology Telecommunications Technology Inventory Management Equipment (Details) | |
Nine months ended December 31, 2021 | $ 167,500 |
Year ended December 31, 2022 | 128,500 |
Year Ended December 31, 2023 | 77,000 |
Year Ended December 31, 2024 | 60,000 |
Year Ended December 31, 2025 | 3,500 |
Total | $ 436,000 |
Information Technology Medica_2
Information Technology Medical Technology Telecommunications Technology Inventory Management Equipment (Details 1) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Information Technology Medical Technology Telecommunications Technology Inventory Management Equipment (Details) | ||
Carrying value of lease receivable | $ 38,000 | $ 43,000 |
Estimated residual value of leased equipment (unguaranteed) | 2,000 | 2,000 |
Initial direct costs - finance leases | 1,000 | 1,000 |
Net investment in finance leases | $ 41,000 | $ 46,000 |
Information Technology Medica_3
Information Technology Medical Technology Telecommunications Technology Inventory Management Equipment (Details 2) | Jun. 30, 2021 |
Information Technology Medical Technology Telecommunications Technology Inventory Management Equipment (Details) | |
Low | 0.00% |
Moderate-Low | 0.00% |
Moderate | 0.00% |
Moderate-High | 100.00% |
High | 0.00% |
Net finance lease receivable | 100.00% |
Information Technology Medica_4
Information Technology Medical Technology Telecommunications Technology Inventory Management Equipment (Details 3) | Jun. 30, 2021USD ($) |
Information Technology Medical Technology Telecommunications Technology Inventory Management Equipment (Details) | |
Six months ended December 31, 2021 | $ 6,000 |
Year ended December 31, 2022 | 12,000 |
Year ended December 31, 2023 | 12,000 |
Year ended December 31, 2024 | 11,000 |
Total | $ 41,000 |
Information Technology Medica_5
Information Technology Medical Technology Telecommunications Technology Inventory Management Equipment (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Information Technology Medical Technology Telecommunications Technology Inventory Management Equipment (Details) | |||||
Gain from sale of equipment | $ 9,000 | $ 25,000 | $ 63,000 | $ 33,000 | |
Equipment shared | 10,226,000 | 10,226,000 | $ 10,226,000 | ||
Debt shared | 136,000 | 136,000 | 380,000 | ||
Total shared equipment | 23,869,000 | 23,869,000 | 23,869,000 | ||
Total debt shared | $ 474,000 | $ 474,000 | $ 1,020,000 |
Investment in COF 2 (Details)
Investment in COF 2 (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Investment in COF 2 (Details) | ||
Assets | $ 1,906,000 | $ 1,993,000 |
Liabilities | 275,000 | 296,000 |
Partners' capital | 1,631,000 | 1,697,000 |
Revenue | 239,500 | 794,000 |
Expenses | 304,500 | 703,000 |
Net (loss) income | $ (65,000) | $ 91,000 |
Investment in COF 2 (Details Na
Investment in COF 2 (Details Narrative) - USD ($) | Aug. 13, 2015 | Nov. 14, 2008 | Jun. 30, 2021 | Dec. 31, 2020 |
Net investment | $ 582,000 | $ 617,000 | ||
Offered sale, shares | 2,500,000 | |||
Purchase price | $ 20 | |||
Fund 2 [Member] | ||||
Offered sale, shares | 1,500,000 | |||
Purchase price | $ 1,648 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Related Party Transactions | ||
Reimbursable expenses | $ 312,000 | $ 409,000 |
Equipment acquisition fee | 2,000 | 9,000 |
Debt placement fee | 0 | 2,000 |
Equipment management fee | 33,000 | 48,000 |
Equipment liquidation fee | $ 2,000 | $ 5,000 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Notes payable | $ 197,000 | $ 472,000 |
Note 1 | ||
Notes payable | $ 0 | 51,500 |
Note payable description | Installment note payable to bank; interest at 5.31% due in monthly installments of $52,336, including interest, with final payment in January 2021 | |
Note 2 | ||
Notes payable | $ 0 | 73,000 |
Note payable description | Installment note payable to bank; interest at 6.00% due in quarterly installments of $74,533, including interest, with final payment in January 2021 | |
Note 3 | ||
Notes payable | $ 39,000 | 154,000 |
Note payable description | Installment notes payable to bank; interest at 5.33% due in monthly installments ranging from $4,312 to $15,329, including interest, with final payment in August 2021 | |
Note 4 | ||
Notes payable | $ 106,000 | 134,500 |
Note payable description | Installment note payable to bank; interest at 4.10% due in monthly installments of $5,229, including interest, with final payment in March 2023 | |
Note 5 | ||
Notes payable | $ 52,000 | $ 59,000 |
Note payable description | Installment note payable to bank; interest at 5.00% due in monthly installments of $1,377, including interest, with final payment in November 2024 |
Notes Payable (Details 1)
Notes Payable (Details 1) | Jun. 30, 2021USD ($) |
Notes Payable (Details) | |
Nine months ended December 31, 2021 | $ 76,000 |
Year ended December 31, 2022 | 75,000 |
Year ended December 31, 2023 | 31,000 |
Year ended December 31, 2024 | 15,000 |
Total | $ 197,000 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) | Jun. 30, 2021USD ($) |
Notes Payable (Details) | |
Notes payable amount | $ 471,000 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Supplemental Cash Flow Information (Tables) | ||
Lease revenue net of interest expense on notes payable realized as a result of direct payment of principal by lessee to bank | $ 276,000 | $ 605,000 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information (Details 1) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Supplemental Cash Flow Information (Tables) | ||
Accrual for redemptions to partners paid in April 2021 (included in other accrued expenses) | $ 0 | $ 163,000 |
Supplemental Cash Flow Inform_5
Supplemental Cash Flow Information (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Supplemental Cash Flow Information (Tables) | ||
Fully amortized fees written off | $ 117,000 | $ 22,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | 1 Months Ended | ||
Feb. 26, 2021 | Jul. 21, 2017 | Mar. 30, 2015 | |
Reallocated charges | $ 151,225 | ||
Personal services description | from $100,000 to $50,000 | ||
FINRA [Member] | |||
Misallocated expenses | $ 208,000 | $ 208,000 | $ 208,000 |
Reducing amount | 1,840 | ||
Education expenses | 30,000 | ||
Total remaining amount | $ 36,226 | $ 36,226 |