Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 11, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ICON ECI FUND FIFTEEN, L.P. | |
Entity Central Index Key | 1,502,519 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 197,385 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Cash | $ 45,499,725 | $ 46,375,576 |
Restricted Cash, Current | 4,656,137 | 3,513,940 |
Net investment in notes receivable | 38,672,332 | 40,131,151 |
Leased equipment at cost (less accumulated depreciation of $9,780,741 and $6,530,460, respectively) | 114,792,400 | 118,042,681 |
Vessel | 6,000,000 | 0 |
Net investment in finance leases | 0 | 10,320,550 |
Investment in joint ventures | 2,519,896 | 4,359,617 |
Derivative financial instruments | 1,343,477 | 1,583,000 |
Other assets | 2,178,527 | 1,664,154 |
Total assets | 215,662,494 | 225,990,669 |
Liabilities: | ||
Non-recourse long-term debt | 83,515,233 | 88,072,012 |
Due to General Partner and affiliates, net | 3,109,216 | 3,208,866 |
Seller's credits | 14,590,712 | 14,331,692 |
Accrued expenses and other liabilities | 3,266,695 | 4,403,106 |
Total liabilities | 104,481,856 | 110,015,676 |
Commitments and contingencies (Note 14) | ||
Partners' equity: | ||
Limited partners | 107,931,651 | 111,845,247 |
General Partner | (676,960) | (637,428) |
Total partners' equity | 107,254,691 | 111,207,819 |
Noncontrolling interests | 3,925,947 | 4,767,174 |
Total equity | 111,180,638 | 115,974,993 |
Total liabilities and equity | $ 215,662,494 | $ 225,990,669 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Accumulated depreciation | $ 9,780,741 | $ 6,530,460 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenue and other income: | ||||
Finance income | $ 1,497,393 | $ 1,552,870 | $ 2,883,938 | $ 3,828,801 |
Rental income | 3,326,653 | 11,739,716 | 6,670,136 | 23,969,220 |
Loss from investment in joint ventures | (1,657,378) | (1,928,771) | (1,551,562) | (1,263,873) |
Gain on sale of subsidiaries | 0 | 1,492,965 | 0 | 1,492,965 |
Gain on sale of investment in joint venture | 0 | 9,427 | 0 | 9,427 |
Other income (loss) | 46,228 | 14,701 | 55,884 | (93,117) |
Total revenue and other income | 3,212,896 | 12,880,908 | 8,058,396 | 27,943,423 |
Expenses: | ||||
Management fees | 77,183 | 446,853 | 166,292 | 732,775 |
Administrative expense reimbursements | 345,109 | 376,532 | 715,165 | 707,094 |
General and administrative | 492,473 | 550,073 | 930,289 | 977,647 |
Interest | 1,350,040 | 2,145,734 | 2,682,086 | 4,629,056 |
Depreciation | 1,623,423 | 8,309,405 | 3,250,281 | 16,886,050 |
Loss on derivative financial instruments | 339,787 | 715,991 | 275,123 | 998,885 |
Impairment loss | 2,000,000 | 0 | 2,000,000 | 0 |
Total expenses | 6,228,015 | 12,544,588 | 10,019,236 | 24,931,507 |
(Loss) income before income taxes | (3,015,119) | 336,320 | (1,960,840) | 3,011,916 |
Income tax expense | 9,289 | 260,512 | 507,214 | 260,512 |
Net (loss) income | (3,024,408) | 75,808 | (2,468,054) | 2,751,404 |
Less: net (loss) income attributable to noncontrolling interests | (850,945) | 418,588 | (840,184) | 847,620 |
Net (loss) income attributable to Fund Fifteen | (2,173,463) | (342,780) | (1,627,870) | 1,903,784 |
Net (loss) income attributable to Fund Fifteen allocable to: | ||||
Limited partners | (2,151,728) | (339,352) | (1,611,591) | 1,884,746 |
General Partner | (21,735) | (3,428) | (16,279) | 19,038 |
Net income (loss) attributable to Fund Fifteen | $ (2,173,463) | $ (342,780) | $ (1,627,870) | $ 1,903,784 |
Weighted average number of limited partnership interests outstanding (in shares) | 197,385 | 197,385 | 197,385 | 197,385 |
Net (loss) income attributable to Fund Fifteen per weighted average limited partnership interest outstanding (USD per share) | $ (10.90) | $ (1.72) | $ (8.16) | $ 9.55 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) | Total | Noncontrolling Interests | Limited Partners | General Partner | Partners' Equity |
Balance (in shares) at Dec. 31, 2016 | 197,385 | ||||
Balance at Dec. 31, 2016 | $ 115,974,993 | $ 4,767,174 | $ 111,845,247 | $ (637,428) | $ 111,207,819 |
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||
Net income (loss) (unaudited) | 556,354 | 10,761 | 540,137 | 5,456 | 545,593 |
Distributions (unaudited) | (1,320,100) | 0 | (1,306,899) | (13,201) | $ (1,320,100) |
Balance (in shares) at Mar. 31, 2017 | 197,385 | ||||
Balance at Mar. 31, 2017 | 115,211,247 | 4,777,935 | 111,078,485 | (645,173) | $ 110,433,312 |
Balance (in shares) at Dec. 31, 2016 | 197,385 | ||||
Balance at Dec. 31, 2016 | 115,974,993 | 4,767,174 | 111,845,247 | (637,428) | $ 111,207,819 |
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||
Net income (loss) (unaudited) | (2,468,054) | ||||
Balance (in shares) at Jun. 30, 2017 | 197,385 | ||||
Balance at Jun. 30, 2017 | 111,180,638 | 3,925,947 | 107,931,651 | (676,960) | $ 107,254,691 |
Balance (in shares) at Mar. 31, 2017 | 197,385 | ||||
Balance at Mar. 31, 2017 | 115,211,247 | 4,777,935 | 111,078,485 | (645,173) | $ 110,433,312 |
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||
Net income (loss) (unaudited) | (3,024,408) | (850,945) | (2,151,728) | (21,735) | (2,173,463) |
Distributions (unaudited) | (1,006,201) | (1,043) | (995,106) | (10,052) | $ (1,005,158) |
Balance (in shares) at Jun. 30, 2017 | 197,385 | ||||
Balance at Jun. 30, 2017 | $ 111,180,638 | $ 3,925,947 | $ 107,931,651 | $ (676,960) | $ 107,254,691 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (2,468,054) | $ 2,751,404 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Finance income | (254,456) | 473,250 |
Loss from investment in joint ventures | 1,551,562 | 1,263,873 |
Depreciation | 3,250,281 | 16,886,050 |
Impairment loss | 2,000,000 | 0 |
Interest expense from amortization of debt financing costs | 264,943 | 424,376 |
Interest expense from amortization of seller's credit | 299,020 | 377,623 |
Other financial loss | 239,523 | 862,492 |
Deferred income taxes | 0 | 260,512 |
Paid-in-kind interest | 202,041 | 3,128 |
Gain on sale of subsidiaries | 0 | (1,492,965) |
Gain on sale of investment in joint venture | 0 | (9,427) |
Changes in operating assets and liabilities: | ||
Restricted cash | (1,303,052) | 432,520 |
Other assets | (523,508) | 1,890,645 |
Deferred revenue | 209,457 | 983,519 |
Due from General Partner and affiliates, net | (301,691) | (2,751,425) |
Distributions from joint ventures | 89,410 | 810,427 |
Accrued expenses and other liabilities | (1,345,868) | (946,379) |
Net cash provided by operating activities | 1,909,608 | 22,219,623 |
Cash flows from investing activities: | ||
Purchase of equipment | 0 | (9,875,000) |
Proceeds from sale of leased equipment | 2,393,388 | 0 |
Investment in joint ventures | (16,745) | (7,434) |
Principal received on finance leases | 77,812 | 28,693,403 |
Distributions received from joint ventures in excess of profits | 215,494 | 2,128,320 |
Proceeds from sale of subsidiaries | 0 | 32,559,221 |
Proceeds from sale of investment in joint venture | 0 | 4,502,107 |
Change in restricted cash | 160,855 | 16,566 |
Principal received on notes receivable | 1,562,625 | 3,081,934 |
Net cash provided by investing activities | 4,393,429 | 61,099,117 |
Cash flows from financing activities: | ||
Repayment of non-recourse long-term debt | (4,729,169) | (37,675,789) |
Repayment of seller's credits | (40,000) | 0 |
Payment of debt financing costs | (83,418) | (1,706,250) |
Distributions to noncontrolling interests | (1,043) | (12,256,356) |
Distributions to partners | (2,325,258) | (7,978,906) |
Net cash used in financing activities | (7,178,888) | (59,617,301) |
Net (decrease) increase in cash | (875,851) | 23,701,439 |
Cash, beginning of period | 46,375,576 | 18,067,904 |
Cash, end of period | 45,499,725 | 41,769,343 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 1,866,478 | 3,967,297 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Vessel purchased with non-recourse long-term debt paid directly to seller | 0 | 45,500,000 |
Vessel purchased with subordinated non-recourse financing provided by seller | $ 0 | $ 6,917,883 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization ICON ECI Fund Fifteen, L.P. (the “Partnership”) was formed on September 23, 2010 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. Our offering period commenced on June 6, 2011 and ended on June 6, 2013, at which time we entered our operating period. We are a direct financing fund that primarily made investments in domestic and international companies, which investments were primarily structured as debt and debt-like financings (such as loans and leases) that are collateralized by business-essential equipment and corporate infrastructure (collectively, “Capital Assets”) utilized by such companies to operate their businesses, as well as other strategic investments in or collateralized by Capital Assets that ICON GP 15, LLC, a Delaware limited liability company and our general partner (the “General Partner”), believes will provide us with a satisfactory, risk-adjusted rate of return. Our General Partner makes investment decisions on our behalf and manages our business. On April 24, 2017, we commenced a consent solicitation of our limited partners to amend and restate our limited partnership agreement in order to amend the definition of “operating period” to provide for the ability of our General Partner to shorten our operating period in its sole and absolute discretion. The consent solicitation was completed on May 24, 2017 with the requisite consents received from our limited partners. As a result, our General Partner ended our operating period on May 31, 2017 and commenced our liquidation period on June 1, 2017. During our liquidation period, 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, ICON Capital, LLC, a Delaware limited liability company and our investment manager (the "Investment Manager"), retained ABN AMRO Securities (USA) LLC (“ABN AMRO”) as its financial advisor to assist our Investment Manager and us in identifying, evaluating and executing a potential sale of certain shipping and offshore energy assets currently included within our investment portfolio. We, however, cannot assure that the identification or evaluation to be performed will result in any specific sale transaction or series of transactions. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Consolidation Our accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for Quarterly Reports on Form 10-Q. In the opinion of our General Partner, all adjustments, which are of a normal recurring nature, considered necessary for a fair presentation have been included. These consolidated financial statements should be read together with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2016. The results for the interim period are not necessarily indicative of the results for the full year. Certain reclassifications have been made to the accompanying consolidated financial statements in the prior year to conform to the current presentation. Restricted Cash Cash that is restricted from use in operations is generally classified as restricted cash. Classification of changes in restricted cash within the consolidated statements of cash flows depends on the predominant source of the related cash flows. For the six months ended June 30, 2017 and 2016, the cash flows being restricted or released were sourced from rental receipts associated with our leasing operations. The use of this cash was restricted pursuant to a provision in the applicable non-recourse long-term debt agreement. As a result, this cash was classified within cash flows from operating activities on our consolidated statements of cash flows. Additionally, during the six months ended June 30, 2017 and 2016, there was a release of restricted cash originally contributed by us and the noncontrolling interests that was previously restricted for the purpose of maintaining certain minimum cash reserves pursuant to a provision in the non-recourse long-term debt agreement. As a result, these changes in restricted cash were classified within cash flows from investing activities for both periods. Credit Quality of Notes Receivable and Finance Leases and Credit Loss Reserve Our Investment Manager monitors the ongoing credit quality of our financing receivables by (i) reviewing and analyzing a borrower’s financial performance on a regular basis, including review of financial statements received on a monthly, quarterly or annual basis as prescribed in the loan or lease agreement, (ii) tracking the relevant credit metrics of each financing receivable and a borrower’s compliance with financial and non-financial covenants, (iii) monitoring a borrower’s payment history and public credit rating, if available, and (iv) assessing our exposure based on the current investment mix. As part of the monitoring process, our Investment Manager may physically inspect the collateral or a borrower’s facility and meet with a borrower’s management to better understand such borrower’s financial performance and its future plans on an as-needed basis. As our financing receivables, generally notes receivable and finance leases, are limited in number, our Investment Manager is able to estimate the credit loss reserve based on a detailed analysis of each financing receivable as opposed to using portfolio-based metrics. Our Investment Manager does not use a system of assigning internal risk ratings to each of our financing receivables. Rather, each financing receivable is analyzed quarterly and categorized as either performing or non-performing based on certain factors including, but not limited to, financial results, satisfying scheduled payments and compliance with financial covenants. A financing receivable is usually categorized as non-performing only when a borrower experiences financial difficulties and has failed to make scheduled payments. Our Investment Manager then analyzes whether the financing receivable should be placed on a non-accrual status, a credit loss reserve should be established or the financing receivable should be restructured. As part of the assessment, updated collateral value is usually considered and such collateral value can be based on a third party industry expert appraisal or, depending on the type of collateral and accessibility to relevant published guides or market sales data, internally derived fair value. Material events would be specifically disclosed in the discussion of each financing receivable held. Financing receivables are generally placed on a non-accrual status when payments are more than 90 days past due. Additionally, our Investment Manager periodically reviews the creditworthiness of companies with payments outstanding less than 90 days and based upon our Investment Manager’s judgment, these accounts may be placed on a non-accrual status. In accordance with the cost recovery method, payments received on non-accrual financing receivables are applied to principal if there is doubt regarding the ultimate collectability of principal. If collection of the principal of non-accrual financing receivables is not in doubt, interest income is recognized on a cash basis. Financing receivables on non-accrual status may not be restored to accrual status until all delinquent payments have been received, and we believe recovery of the remaining unpaid receivable is probable. When our Investment Manager deems it is probable that we will not be able to collect all contractual principal and interest on a non-performing financing receivable, we perform an analysis to determine if a credit loss reserve is necessary. This analysis considers the estimated cash flows from the financing receivable, and/or the collateral value of the asset underlying the financing receivable when financing receivable repayment is collateral dependent. If it is determined that the impaired value of the non-performing financing receivable is less than the net carrying value, we will recognize a credit loss reserve or adjust the existing credit loss reserve with a corresponding charge to earnings. We then charge off a financing receivable in the period that it is deemed uncollectible by reducing the credit loss reserve and the balance of the financing receivable. Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-05, Derivatives and Hedging: Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships (“ASU 2016-05”), which clarifies that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument does not, in and of itself, require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. We adopted ASU 2016-05 on January 1, 2017, which did not have an effect on our consolidated financial statements. In March 2016, FASB issued ASU No. 2016-07, Investments – Equity Method and Joint Ventures: Simplifying the Transition to the Equity Method of Accounting (“ASU 2016-07”), which eliminates the retroactive adjustments to an investment upon it qualifying for the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence by the investor. ASU 2016-07 requires that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment qualifies for equity method accounting. We adopted ASU 2016-07 on January 1, 2017, which did not have an effect on our consolidated financial statements. In October 2016, FASB issued ASU No. 2016-17, Consolidation (“ASU 2016-17”), which amends the consolidation guidance on how a reporting entity that is the single decision maker of a variable interest entity should treat indirect interests in such entity held by related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that variable interest entity. Under ASU 2016-17, a single decision maker is not required to consider indirect interests held by related parties that are under common control with the single decision maker to be the equivalent of direct interests in their entirety. We adopted ASU 2016-17 on January 1, 2017, which did not have an effect on our consolidated financial statements. Other Recent Accounting Pronouncements In May 2014, FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), requiring revenue to be recognized in an amount that reflects the consideration expected to be received in exchange for goods and services. This new revenue standard may be applied retrospectively to each prior period presented, or retrospectively with the cumulative effect recognized as of the date of adoption. In August 2015, FASB issued ASU No. 2015-14, Revenue from Contracts with Customers – Deferral of the Effective Date (“ASU 2015-14”), which defers implementation of ASU 2014-09 by one year. Under such deferral, the adoption of ASU 2014-09 becomes effective for us on January 1, 2018, including interim periods within that reporting period. Early adoption is permitted, but not before our original effective date of January 1, 2017. Our evaluation of the impact of the adoption of ASU 2014-09 on our consolidated financial statements is ongoing and our implementation efforts have included the identification of revenue within the scope of the guidance and the evaluation of applicable revenue contracts. We continue to evaluate the timing of recognition of various revenue; however, since a substantial portion of our revenue is recognized from our leasing contracts, which is subject to ASU 2016-02 (as defined below), such revenue is excluded from our evaluation of ASU 2014-09. In January 2016, FASB issued ASU No. 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which provides guidance related to accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The adoption of ASU 2016-01 becomes effective for us on January 1, 2018, including interim periods within that reporting period. We are currently in the process of evaluating the impact of the adoption of ASU 2016-01 on our consolidated financial statements. In February 2016, FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”), which requires lessees to recognize assets and liabilities for leases with lease terms greater than twelve months on the balance sheet and disclose key information about leasing arrangements. ASU 2016-02 implements changes to lessor accounting focused on conforming with certain changes made to lessee accounting and the recently released revenue recognition guidance. The adoption of ASU 2016-02 becomes effective for us on January 1, 2019. Early adoption is permitted. Based on our preliminary assessment, most, if not all, of our leases are subject to lessor accounting and the accounting applied by a lessor is largely unchanged from that applied under current U.S. GAAP. We continue to evaluate the impact of the adoption of ASU 2016-02 on our consolidated financial statements. In June 2016, FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (“ASU 2016-13”), which modifies the measurement of credit losses by eliminating the probable initial recognition threshold set forth in current guidance, and instead reflects an entity’s current estimate of all expected credit losses. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity will apply the amendments within ASU 2016-13 through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The adoption of ASU 2016-13 becomes effective for us on January 1, 2020, including interim periods within that reporting period. Early adoption is permitted. We are currently in the process of evaluating the impact of the adoption of ASU 2016-13 on our consolidated financial statements. In August 2016, FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows. The adoption of ASU 2016-15 becomes effective for us on January 1, 2018, including interim periods within that reporting period. Early adoption is permitted. An entity will apply the amendments within ASU 2016-15 using a retrospective transition method to each period presented. We are currently in the process of evaluating the impact of the adoption of ASU 2016-15 on our consolidated financial statements. In November 2016, FASB issued ASU No. 2016-18, Statement of Cash Flows (“ASU 2016-18”), which provides guidance on the presentation of restricted cash or restricted cash equivalents in the statement of cash flows. The adoption of ASU 2016-18 becomes effective for us on January 1, 2018, including interim periods within that reporting period. Early adoption is permitted. An entity will apply the amendments within ASU 2016-18 using a retrospective transition method to each period presented. We are currently in the process of evaluating the impact of the adoption of ASU 2016-18 on our consolidated financial statements. In January 2017, FASB issued ASU No. 2017-01, Business Combinations (“ASU 2017-01”), which clarifies the definition of a business. ASU 2017-01 sets forth requirements to be met for a set to be deemed a business and establishes a practical way to determine when a set is not a business. To be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create an output, and removes the evaluation of whether a market participant could replace missing elements. In addition, ASU 2017-01 narrows the definition of outputs and aligns such definition with how outputs are described within the revenue guidance. The adoption of ASU 2017-01 becomes effective for us on January 1, 2018, including interim periods within that reporting period. Early adoption is permitted for transactions that occur before the issuance date or effective date of ASU 2017-01 to the extent that such transactions have not been reported in financial statements that have been issued or made available for issuance. We are currently in the process of evaluating the impact of the adoption of ASU 2017-01 on our consolidated financial statements. |
Net Investment in Notes Receiva
Net Investment in Notes Receivable | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Net Investment in Notes Receivable | Net Investment in Notes Receivable As of June 30, 2017, we had net investment in notes receivable on non-accrual status of $8,898,403 , of which $5,397,913 had been reserved. As of December 31, 2016 , we had net investment in notes receivable on non-accrual status of $5,397,913 , which had been fully reserved. As of June 30, 2017 and December 31, 2016 , our note receivable related to Ensaimada S.A. (“Ensaimada”) totaled $5,397,913 , which had been fully reserved. On November 22, 2011, we made a secured term loan to Ensaimada in the amount of $5,298,947 . The loan bore interest at 17% per year. The loan matured in November 2016 and is currently past due. The loan is secured by a second priority security interest in a dry bulk carrier, its earnings and the equity interests of Ensaimada. All of Ensaimada’s obligations under the loan agreement are guaranteed by both N&P Shipping Co. ("N&P"), the parent company of Ensaimada, and by one of N&P’s shareholders. We have been engaged in discussions with Ensaimada and the guarantor regarding the unpaid balance of the loan. As a result of (i) a depressed market for dry bulk carriers that led to Ensaimada’s failure to make quarterly interest payments under the loan, (ii) the termination of discussions regarding a refinancing transaction that would have enabled Ensaimada to prepay the loan, (iii) a lack of additional discussions with Ensaimada regarding a potential restructuring of the loan and (iv) the fact that the then current fair market value of the collateral was less than Ensaimada’s senior debt obligations, which have priority over our loan, our Investment Manager determined that the loan was impaired and an aggregate credit loss of $5,397,913 was recorded during the year ended December 31, 2015. As a result, the loan was fully reserved as of December 31, 2015. For the three months ended June 30, 2017 and 2016 , we did no t recognize any finance income. As of June 30, 2017 and December 31, 2016 , our net investment in note receivable related to Ensaimada was $0 . As of June 30, 2017 , our net investment in note receivable and accrued interest related to four affiliates of Técnicas Maritimas Avanzadas, S.A. de C.V. (collectively, “TMA”) totaled $3,500,490 and $1,064,668 , respectively, of which an aggregate of $1,807,471 was over 90 days past due. As of December 31, 2016 , our net investment in note receivable and accrued interest related to TMA totaled $ 3,500,490 and $953,389 , respectively, of which an aggregate of $1,380,312 was over 90 days past due. TMA has been in technical default due to its failure to cause all four platform supply vessels to be under contract by March 31, 2015 and in payment default while available cash has been swept by the senior lender and applied to the senior tranche of the facility (the "Senior Loan") in accordance with the secured term loan credit facility agreement. As a result, the principal balance of the Senior Loan was paid down at a faster rate. In January 2016, the remaining two previously unchartered vessels had commenced employment. Based on, among other things, TMA’s payment history and estimated collateral value as of June 30, 2017 , our Investment Manager believes it is likely that all outstanding principal and accrued interest under our tranche of the facility (the "ICON Loan") as of June 30, 2017 are collectible. However, our Investment Manager believes it is prudent to place the note receivable on non-accrual status during the three months ended June 30, 2017. As of June 30, 2017 and December 31, 2016 , our share of the collateral value, net of the balance of the Senior Loan, was estimated to be approximately $1,900,000 and $ 800,000 , respectively. For the three and six months ended June 30, 2017, we recognized finance income of $0 and $111,279 , respectively, of which no amount was recognized on a cash basis. For the three and six months ended June 30, 2016, we recognized finance income of $124,296 and $252,673 , respectively, of which no amount was recognized on a cash basis. Net investment in notes receivable consisted of the following: June 30, December 31, 2017 2016 Principal outstanding (1) $ 45,373,642 $ 46,936,267 Initial direct costs 309,443 488,192 Deferred fees (1,612,840 ) (1,895,395 ) Credit loss reserve (2) (5,397,913 ) (5,397,913 ) Net investment in notes receivable (3) $ 38,672,332 $ 40,131,151 (1) As of June 30, 2017 and December 31, 2016 , total principal outstanding related to our impaired loan of $5,178,776 was related to Ensaimada. (2) As of June 30, 2017 and December 31, 2016 , the credit loss reserve of $5,397,913 was related to Ensaimada. (3) As of June 30, 2017 and December 31, 2016 , net investment in note receivable related to our impaired loan was $0 . On January 24, 2017, Asphalt Carrier Shipping Company Limited ("Asphalt") satisfied its obligations in connection with a secured term loan scheduled to mature on December 31, 2018 by making a prepayment of $ 1,416,952 , comprised of all outstanding principal, accrued interest and a prepayment fee of $66,600 . The prepayment fee was recognized as additional finance income. Credit loss allowance activities for the three months ended June 30, 2017 were as follows: Credit Loss Allowance Allowance for credit loss as of March 31, 2017 $ 5,397,913 Provisions — Write-offs, net of recoveries — Allowance for credit loss as of June 30, 2017 $ 5,397,913 Credit loss allowance activities for the three months ended June 30, 2016 were as follows: Credit Loss Allowance Allowance for credit loss as of March 31, 2016 $ 5,397,913 Provisions — Write-offs, net of recoveries — Allowance for credit loss as of June 30, 2016 $ 5,397,913 Credit loss allowance activities for the six months ended June 30, 2017 were as follows: Credit Loss Allowance Allowance for credit loss as of December 31, 2016 $ 5,397,913 Provisions — Write-offs, net of recoveries — Allowance for credit loss as of June 30, 2017 $ 5,397,913 Credit loss allowance activities for the six months ended June 30, 2016 were as follows: Credit Loss Allowance Allowance for credit loss as of December 31, 2015 $ 5,397,913 Provisions — Write-offs, net of recoveries — Allowance for credit loss as of June 30, 2016 $ 5,397,913 |
Leased Equipment at Cost
Leased Equipment at Cost | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Leased Equipment at Cost | Leased Equipment at Cost Leased equipment at cost consisted of the following: June 30, December 31, 2017 2016 Geotechnical drilling vessels $ 124,573,141 $ 124,573,141 Leased equipment at cost 124,573,141 124,573,141 Less: accumulated depreciation 9,780,741 6,530,460 Leased equipment at cost, less accumulated depreciation $ 114,792,400 $ 118,042,681 Depreciation expense was $1,623,423 and $8,309,405 for the three months ended June 30, 2017 and 2016 , respectively. Depreciation expense was $3,250,281 and $16,886,050 for the six months ended June 30, 2017 and 2016 , respectively. Upon termination of the bareboat and time charters with Gallatin and EMAS, respectively (see Note 5), we reclassified the AMC Ambassador from net investment in finance leases to vessel on our consolidated balance sheet as of March 31, 2017. Our Investment Manager is currently seeking new charter proposals to re-employ the vessel as well as exploring a potential sale of the vessel. As part of this process, we obtained an updated third-party appraisal for the vessel, which provided an estimated fair value for the vessel that was below its net book value. As a result, we recorded an additional impairment loss of $2,000,000 during the three months ended June 30, 2017. |
Net Investment in Finance Lease
Net Investment in Finance Lease | 6 Months Ended |
Jun. 30, 2017 | |
Leases, Capital [Abstract] | |
Net Investment in Finance Leases | Net Investment in Finance Leases As of June 30, 2017 , we had no net investment in finance leases on non-accrual status and no net investment in finance leases that was past due 90 days or more and still accruing. As of December 31, 2016 , we had net investment in finance leases on non-accrual status of $8,000,000 , and no net investment in finance leases that was past due 90 days or more and still accruing. On December 19, 2011, a joint venture owned 60% by us and 40% by ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P. (“Fund Fourteen”), an entity also managed by our Investment Manager, agreed to purchase an offshore support vessel, the AMC Ambassador (f/k/a the Lewek Ambassador), from Ezram LLC, a wholly-owned subsidiary of Ezra Holdings Limited ("Ezra"). The joint venture entered into a bareboat charter with Gallatin Marine Management, LLC ("Gallatin") for a period of nine years to commence on the delivery date of the vessel. Gallatin’s obligations under the bareboat charter are guaranteed by Ezra. The vessel was delivered on June 4, 2012 and the purchase price was set at $24,869,000 . The joint venture financed the purchase price through a combination of related party notes payable, non-recourse long-term debt and equity. In May 2016, Gallatin began paying its monthly charter payments late and all charter payments ceased since the payment due in December 2016. In December 2016, Ezra hired a restructuring advisor. In January 2017, our Investment Manager was informed that, following a deterioration of Ezra’s and its affiliated companies’ financial condition during the fourth quarter of 2016, payments under the bareboat charter could no longer be reasonably expected to be made. On February 6, 2017, EMAS Chiyoda Subsea Limited (“EMAS”), the time charterer of the vessel, filed a petition in Singapore to wind up and liquidate the company. In addition, Ezra may become subject to a winding up order in Singapore. On February 27, 2017, both Gallatin and EMAS commenced voluntary Chapter 11 proceedings in the Bankruptcy Court in the Southern District of Texas. On March 7, 2017, Gallatin and EMAS filed a motion with the bankruptcy court to reject the bareboat and time charters. On March 18, 2017, Ezra commenced a voluntary Chapter 11 proceeding in the Bankruptcy Court in the Southern District of New York. Consequently, as of December 31, 2016, our Investment Manager assessed the collectability of the finance lease based on the estimated fair market value of the vessel provided by an independent third party appraiser. As a result, we recorded a credit loss of $7,271,958 to write down our net investment in finance lease related to the vessel to $8,000,000 . During the three months ended December 31, 2016, we placed the lease on non-accrual status and ceased to recognize finance income. As of December 31, 2016, our total net investment in finance lease related to Gallatin was $8,000,000 . In April 2017, the bankruptcy court approved the motion filed by Gallatin and EMAS to reject the bareboat and time charters with an effective date of March 12, 2017. As a result, the bareboat and time charters were deemed terminated as of such date. Upon such termination, we reclassified the AMC Ambassador from net investment in finance leases to vessel on our consolidated balance sheet as of March 31, 2017 at the net carrying value of $8,000,000 , which approximated the then fair market value. During the three months ended June 30, 2017, we repossessed the AMC Ambassador (see Note 6). For the three and six months ended June 30, 2017, we recognized finance income of $156,975 , which was recognized on a cash basis. For the three and six months ended June 30, 2016, we recognized finance income of $481,964 and $981,369 , respectively, of which no amount was recognized on a cash basis. Net investment in finance leases consisted of the following: June 30, December 31, 2017 2016 Minimum rents receivable (1) $ — $ 22,526,705 Estimated unguaranteed residual values — 390,286 Initial direct costs — 255,720 Unearned income — (5,580,203 ) Credit loss reserve (2) — (7,271,958 ) Net investment in finance leases $ — $ 10,320,550 (1) As of December 31, 2016 , total minimum rents receivable related to our impaired finance lease of $ 19,875,450 was related to the AMC Ambassador. (2) As of December 31, 2016 , the credit loss reserve of $ 7,271,958 was related to the AMC Ambassador. On April 20, 2017, Challenge Mfg. Company, LLC (“Challenge Mfg.”) purchased all auxiliary support equipment and robots used in the production of certain automobiles that were subject to a lease with us for a purchase price of $ 2,393,388 . The equipment was leased to Challenge Mfg. and certain of its affiliates (collectively, “Challenge”), which was scheduled to expire on October 9, 2020. As a result of this sale, Challenge’s remaining lease obligations to us were fully satisfied and we recognized finance income of $136,726 . |
Vessel Vessel
Vessel Vessel | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Vessel | Leased Equipment at Cost Leased equipment at cost consisted of the following: June 30, December 31, 2017 2016 Geotechnical drilling vessels $ 124,573,141 $ 124,573,141 Leased equipment at cost 124,573,141 124,573,141 Less: accumulated depreciation 9,780,741 6,530,460 Leased equipment at cost, less accumulated depreciation $ 114,792,400 $ 118,042,681 Depreciation expense was $1,623,423 and $8,309,405 for the three months ended June 30, 2017 and 2016 , respectively. Depreciation expense was $3,250,281 and $16,886,050 for the six months ended June 30, 2017 and 2016 , respectively. Upon termination of the bareboat and time charters with Gallatin and EMAS, respectively (see Note 5), we reclassified the AMC Ambassador from net investment in finance leases to vessel on our consolidated balance sheet as of March 31, 2017. Our Investment Manager is currently seeking new charter proposals to re-employ the vessel as well as exploring a potential sale of the vessel. As part of this process, we obtained an updated third-party appraisal for the vessel, which provided an estimated fair value for the vessel that was below its net book value. As a result, we recorded an additional impairment loss of $2,000,000 during the three months ended June 30, 2017. |
Investment in Joint Ventures
Investment in Joint Ventures | 6 Months Ended |
Jun. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Joint Venture | Investment in Joint Ventures As of June 30, 2017 and December 31, 2016 , we had investments in two notes receivable, two finance leases and an operating lease held through four joint ventures. On June 12, 2014, a joint venture owned 12.5% by us, 75% by ICON Leasing Fund Twelve Liquidating Trust (f/k/a ICON Leasing Fund Twelve, LLC), an entity also managed by our Investment Manager, and 12.5% by Fund Fourteen 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 Group Merchant Bank (Asia) Ltd. (“DVB”) and $2,000,000 of financing through a subordinated, non-interest-bearing seller’s credit. In July 2017, Pacific Crest failed to make its monthly charter payment and our Investment Manager was advised that Pacific Crest is 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. Based on such test, the joint venture recorded an impairment loss of $14,661,525 , of which we were only allocated $1,758,641 of such impairment loss during the three months ended June 30, 2017 as our investment in the joint venture was written down to zero . Information as to the results of operations of this joint venture is summarized as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Revenue $ 1,164,394 $ 1,164,394 $ 2,328,788 $ 2,328,788 Net (loss) income $ (14,432,528 ) $ 212,810 $ (14,191,504 ) $ 423,146 Our share of net (loss) $ (1,729,548 ) $ 27,070 $ (1,698,951 ) $ 53,831 On May 15, 2013, a joint venture owned 40% by us, 39% by ICON Leasing Fund Eleven Liquidating Trust (formerly, ICON Leasing Fund Eleven, LLC), an entity also managed by our Investment Manager, and 21% by Fund Twelve purchased a portion of a $208,038,290 subordinated credit facility for Jurong Aromatics Corporation Pte. Ltd. ("JAC") from Standard Chartered Bank for $28,462,500 . The subordinated credit facility initially bore interest at rates ranging between 12.5% and 15% per year and matures in January 2021. As a result of JAC’s failure to make an expected payment that was due to the joint venture during the three months ended March 31, 2015, the interest rate payable by JAC under the facility increased from 12.5% to 15.5% . The subordinated credit facility is secured by a second priority security interest in all JAC’s assets, which include, among other things, all equipment, plant and machinery associated with a condensate splitter and aromatics complex. Our initial contribution to the joint venture was $12,296,208 . During 2015, JAC experienced liquidity constraints as a result of a general economic slow-down in China and India, which led to lower demand from such countries, as well as the price decline of energy and other commodities. As a result, JAC’s manufacturing facility ceased operations and JAC was not able to service interest payments under the facility. In addition, an expected tolling arrangement with JAC's suppliers that would have allowed JAC's manufacturing facility to resume operations did not commence in 2015 as originally anticipated. Discussions among the senior lenders and certain other stakeholders of JAC regarding a restructuring plan ended as the senior lenders did not agree to amendments to their credit facilities as part of the broader restructuring that was being contemplated. As a result, JAC entered receivership on September 28, 2015. As a result of these factors, during the three months ended June 30, 2015, our Investment Manager determined that there was doubt regarding the joint venture’s ultimate collectability of the facility and commenced recording credit losses. Commencing with the three months ended June 30, 2015 and on a quarterly basis thereafter, our Investment Manager has reassessed the collectability of the facility by considering the following factors, among others (i) what a potential buyer may be willing to pay to acquire JAC based on a comparable enterprise value derived from EBITDA multiples and (ii) the average trading price of unsecured distressed debt in comparable industries. During the year ended December 31, 2015, the joint venture recorded an aggregate credit loss of $31,637,426 related to JAC based on our Investment Manager’s quarterly collectability analyses, of which our share was $12,879,462 . Our Investment Manager also assessed impairment under the equity method of accounting for our investment in the joint venture and concluded that there was no impairment. In January 2016, our Investment Manager engaged in further discussions with JAC’s other subordinated lenders and the Receiver regarding a near term plan for JAC’s manufacturing facility. Based upon such discussions, our Investment Manager anticipated that a one -year tolling arrangement with JAC’s suppliers would be implemented to allow JAC’s facility to recommence operations. In July 2016, the tolling arrangement was implemented and the manufacturing facility resumed operations. Although JAC’s manufacturing facility has resumed operations, no debt payments have been made or are expected to be made by JAC to the joint venture while operating under the tolling arrangement. As part of the tolling arrangement and the receivership process, JAC incurred additional senior debt, that could be up to $55,000,000 , to fund its operations as well as any receivership-related costs. As a result, our Investment Manager determined that the joint venture’s ultimate collectability of the facility was further in doubt. As of June 30, 2016, our Investment Manager updated its quarterly assessment by considering (i) a comparable enterprise value derived from EBITDA multiples; (ii) the average trading price of unsecured distressed debt in comparable industries and (iii) the additional senior debt incurred by JAC, which has priority over the joint venture’s facility. Based upon this reassessment, our Investment Manager determined that the joint venture should fully reserve the outstanding balance of the facility due from JAC as of June 30, 2016. As a result, the joint venture recorded an additional credit loss of $5,365,776 for the three months ended June 30, 2016, of which our share was $2,146,310 . During the fourth quarter of 2016, the Receiver formally commenced the process of marketing JAC's facility for sale. Our Investment Manager continues to closely monitor the operations of JAC, the receivership process and the sale process of the manufacturing facility through regular communications with the Receiver and certain other stakeholders. The joint venture did no t recognize any finance income for the three and six months ended June 30, 2017 and 2016. As of June 30, 2017 and December 31, 2016, the total net investment in notes receivable held by the joint venture was $0 and our total investment in the joint venture was $0 . Information as to the results of operations of this joint venture is summarized as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Revenue $ — $ — $ — $ — Net loss $ 6,521 $ 5,399,546 $ 8,699 $ 5,399,546 Our share of net loss $ 2,608 $ 2,159,715 $ 3,479 $ 2,159,715 On January 14, 2016, D&T Holdings, LLC (“D&T”) satisfied its remaining lease obligations by making a prepayment of $8,000,000 . In addition, D&T exercised its option to repurchase all assets under the lease for $1 , upon which title was transferred. As a result of the prepayment, the joint venture owned 27.5% by us recognized finance income of approximately $1,400,000 , of which our share was approximately $385,000 . Information as to the results of operations of this joint venture is summarized as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Revenue $ 4,404 $ — $ 4,404 $ 1,491,704 Net income (loss) $ 4,404 $ (3,684 ) $ 2,721 $ 1,480,497 Our share of net income (loss) $ 1,992 $ (1,013 ) $ 1,992 $ 407,356 |
Non-Recourse Long-Term Debt
Non-Recourse Long-Term Debt | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Non-Recourse Long-Term Debt | Non-Recourse Long-Term Debt As of June 30, 2017 and December 31, 2016 , we had the following non-recourse long-term debt: Counterparty June 30, 2017 December 31, 2016 Maturity Rate ABN AMRO, Rabobank, NIBC $ 79,625,000 $ 83,416,666 2020 4.367% * DVB Bank SE 5,312,500 6,250,000 2019 4.997% 84,937,500 89,666,666 Less: debt issuance costs 1,422,267 1,594,654 Total non-recourse long-term debt $ 83,515,233 $ 88,072,012 * The interest rate was fixed at 4.117% after giving effect to the interest rate swaps entered into on February 8, 2016. Effective December 31, 2016, the interest rate of the variable rate senior loan increased by 0.25% pursuant to an amended facility agreement. 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 June 30, 2017 and December 31, 2016 , the total carrying value of assets subject to non-recourse long term debt was $120,792,400 and $126,042,681 , respectively. On June 4, 2012, a joint venture owned 60% by us and 40% by Fund Fourteen drew down on its loan facility with DVB Bank SE (“DVB SE”) in the amount of $17,500,000 at a fixed rate of 4.997% to partly finance the purchase of the AMC Ambassador. As of June 30, 2017 , the outstanding principal balance of the loan facility was $ 5,312,500 . As a result of, among other things, Gallatin’s payment default on the bareboat charter and Chapter 11 bankruptcy proceedings commenced by Gallatin and EMAS, we were notified of an event of default on our non-recourse long-term debt on March 29, 2017. DVB SE has reserved, but not exercised, its rights under the loan agreement. In addition, we only made a partial payment on our quarterly debt obligations to DVB SE during the three months ended June 30, 2017. For the three months ended June 30, 2017 and 2016, we recognized interest expense of $126,789 and $134,206 , respectively, related to the amortization of debt financing costs. For the six months ended June 30, 2017 and 2016, we recognized interest expense of $255,808 and $413,414 , respectively, related to the amortization of debt financing costs. At June 30, 2017 , we were in compliance with all covenants related to our non-recourse long-term debt, except as disclosed above. |
Revolving Line of Credit, Recou
Revolving Line of Credit, Recourse | 6 Months Ended |
Jun. 30, 2017 | |
Line of Credit Facility [Abstract] | |
Revolving Line of Credit, Recourse | Revolving Line of Credit, Recourse We had an agreement with California Bank & Trust (“CB&T”) for a revolving line of credit through May 30, 2017 of up to $12,500,000 (the “Facility”), which was secured by all of our assets not subject to a first priority lien. Amounts available under the Facility were subject to a borrowing base that was determined, subject to certain limitations, by the present value of the future receivables under certain loans and lease agreements in which we had a beneficial interest. The interest rate for general advances under the Facility was CB&T’s prime rate. We could have elected to designate up to five advances on the outstanding principal balance of the Facility to bear interest at the London Interbank Offered Rate ("LIBOR") plus 2.5% per year. In all instances, borrowings under the Facility were subject to an interest rate floor of 4.0% per year. In addition, we were obligated to pay an annualized 0.5% fee on unused commitments under the Facility. The Facility expired in accordance with its terms on May 30, 2017. There were no obligations outstanding under the Facility on the expiration date. As of December 31, 2016, we had capitalized net debt financing costs related to our Facility of $9,134 , which were included in other assets in our consolidated balance sheets. The debt financing costs were fully amortized upon expiration of the Facility. For the three months ended June 30, 2017 and 2016, we recognized interest expense of $3,654 and $5,481 , respectively, related to the amortization of debt financing costs. For the six months ended June 30, 2017 and 2016, we recognized interest expense of $9,135 and $10,962 , respectively, related to the amortization of debt financing costs. |
Transactions with Related Parti
Transactions with Related Parties | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | Transactions with Related Parties We paid distributions to our General Partner of $10,052 and $40,094 for the three months ended June 30, 2017 and 2016 , respectively. We paid distributions to our General Partner of $23,253 and $79,789 for the six months ended June 30, 2017 and 2016 , respectively. Our General Partner’s interest in our net loss was $21,735 and $3,428 for the three months ended June 30, 2017 and 2016 , respectively. Our General Partner’s interest in our net (loss) income was $(16,279) and $19,038 for the six months ended June 30, 2017 and 2016 , respectively. Effective July 1, 2016, our Investment Manager reduced its management fee by 50% (up to 1.75% of the gross periodic payments due and paid from our investments). Fees and other expenses incurred by us to our General Partner or its affiliates were as follows: Three Months Ended June 30, Six Months Ended June 30, Entity Capacity Description 2017 2016 2017 2016 ICON Capital, LLC Investment Manager Management fees (1) $ 77,183 $ 446,853 $ 166,292 $ 732,775 ICON Capital, LLC Investment Manager Administrative expense reimbursements (1) 345,109 376,532 715,165 707,094 Fund Fourteen Noncontrolling interest Interest expense (1) 101,021 102,221 202,041 204,590 $ 523,313 $ 925,606 $ 1,083,498 $ 1,644,459 (1) Amount charged directly to operations. At June 30, 2017 , we had a net payable of $3,109,216 due to our General Partner and affiliates that primarily consisted of a note payable of $3,119,840 and accrued interest of $26,643 due to Fund Fourteen related to its noncontrolling interest in a vessel, the AMC Ambassador. At December 31, 2016 , we had a net payable of $3,208,866 due to our General Partner and affiliates that primarily consisted of a note payable of $2,917,799 and accrued interest of $28,863 due to Fund Fourteen related to its noncontrolling interest in the AMC Ambassador, and administrative expense reimbursements of $113,475 and management fees of $ 176,427 due to our Investment Manager. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments We may enter into derivative financial instruments for purposes of hedging specific financial exposures, including movements in foreign currency exchange rates and changes in interest rates on our non-recourse long-term debt. We enter into these instruments only for hedging underlying exposures. We do not hold or issue derivative financial instruments for purposes other than hedging. Certain derivatives may not meet the established criteria to be designated as qualifying accounting hedges, even though we believe that these are effective economic hedges. We recognize all derivative financial instruments as either assets or liabilities on our consolidated balance sheets and measure those instruments at fair value. Changes in the fair value of such instruments are recognized immediately in earnings unless certain criteria are met. These criteria demonstrate that the derivative is expected to be highly effective at offsetting changes in the fair value or expected cash flows of the underlying exposure at both the inception of the hedging relationship and on an ongoing basis and include an evaluation of the counterparty risk and the impact, if any, on the effectiveness of the derivative. If these criteria are met, which we must document and assess at inception and on an ongoing basis, we recognize the changes in fair value of such instruments in accumulated other comprehensive income (loss), a component of equity on our consolidated balance sheets. Changes in the fair value of the ineffective portion of all derivatives are recognized immediately in earnings. U.S. GAAP and relevant International Swaps and Derivatives Association, Inc. agreements permit a reporting entity that is a party to a master netting agreement to offset fair value amounts recognized for derivative instruments that have been offset under the same master netting agreement. We elected to present the fair value of derivative contracts on a gross basis on our consolidated balance sheets. Interest Rate Risk Our objectives in using interest rate derivatives are to add stability to interest expense and to manage our exposure to interest rate movements on our variable non-recourse debt. Our strategy to accomplish these objectives is to match the projected future cash flows with the underlying debt service. Each interest rate swap involves the receipt of floating-rate interest payments from a counterparty in exchange for us making fixed-rate interest payments over the life of the agreement without exchange of the underlying notional amount. Counterparty Risk We manage exposure to possible defaults on derivative financial instruments by monitoring the concentration of risk that we have with any individual bank and through the use of minimum credit quality standards for all counterparties. We do not require collateral or other security in relation to derivative financial instruments. Since it is our policy to enter into derivative contracts only with banks of internationally acknowledged standing and the fair value of our derivatives is in a liability position, we consider the counterparty risk to be remote. Credit Risk Derivative contracts may contain credit-risk related contingent features that can trigger a termination event, such as maintaining specified financial ratios. In the event that we would be required to settle our obligations under the derivative contracts as of June 30, 2017 , the termination value would be a receivable of $ 1,356,465 . Non-designated Derivatives On February 8, 2016, we entered into two interest rate swaps with ABN AMRO that are not designated and not qualifying as cash flow hedges. As of June 30, 2017 , the aggregate notional amount of the two interest rate swaps was $79,625,000 . These interest rate swaps are not speculative and are used to meet our objectives in using interest rate derivatives to add stability to interest expense and to manage our exposure to interest rate movements. All changes in the fair value of the interest rate swaps not designated as hedges are recorded directly in earnings, which is included in loss on derivative financial instruments on our consolidated statements of operations. The table below presents the fair value of our derivative financial instruments as well as their classification within our consolidated balance sheets as of June 30, 2017 and December 31, 2016 . Asset Derivatives June 30, 2017 December 31, 2016 Balance Sheet Location Fair Value Fair Value Derivatives not designated as hedging instruments: Interest rate swaps Derivative financial instruments $ 1,343,477 $ 1,583,000 Our derivative financial instruments not designated as hedging instruments generated a loss on derivative financial instruments on our consolidated statements of operations for the three months ended June 30, 2017 and 2016 of $339,787 and $715,991 , respectively. Our derivative financial instruments not designated as hedging instruments generated a loss on derivative financial instruments on our consolidated statements of operations for the six months ended June 30, 2017 and 2016 of $ 275,123 and $ 998,885 , respectively. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: • Level 1: Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. • Level 2: Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. • Level 3: Pricing inputs that are generally unobservable and are supported by little or no market data. Financial Assets Measured on a Recurring Basis Financial assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our Investment Manager’s assessment, on our behalf, of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the assets being measured and their placement within the fair value hierarchy. The following table summarizes the valuation of our financial assets measured at fair value on a recurring basis as of June 30, 2017 : Level 1 Level 2 Level 3 Total Assets: Interest rate swaps $ — $ 1,343,477 $ — $ 1,343,477 Our interest rate swaps are valued using models based on readily observable market parameters for all substantial terms of such derivative financial instruments and are classified within Level 2. In accordance with U.S. GAAP, we use market prices and pricing models for fair value measurements of our derivative financial instruments. Interest Rate Swaps We utilize a model that incorporates common market pricing methods as well as underlying characteristics of the particular swap contract. Interest rate swaps are modeled by incorporating such inputs as the term to maturity, LIBOR swap curves, Overnight Index Swap curves and the payment rate on the fixed portion of the interest rate swap. Such inputs are classified within Level 2. Thereafter, we compare third party quotations received to our own estimate of fair value to evaluate for reasonableness. The fair value of the interest rate swaps was recorded in derivative financial instruments within our consolidated balance sheets. Asset 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. 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 following table summarizes the valuation of our material non-financial assets measured at fair value on a nonrecurring basis, which is presented as of the date the impairment or credit loss was recorded, while the carrying value of the asset is presented as of June 30, 2017: Carrying Value at Fair Value at Impairment Date Impairment Loss for the Six Months Ended June 30, 2017 Level 1 Level 2 Level 3 June 30, 2017 Vessel $ 6,000,000 $ — $ — $ 6,000,000 $ 2,000,000 Our collateral dependent finance lease related to Gallatin was valued based on the estimated fair value of the vessel provided by an independent third party appraiser using a market approach. The estimated fair value was based on inputs that are generally unobservable and are supported by little or no market data and were classified within Level 3 (see Note 6). Assets and Liabilities for which Fair Value is Disclosed Certain of our financial assets and liabilities, which include fixed-rate notes receivable, fixed-rate non-recourse long-term debt and seller’s credits, 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. In accordance with U.S. GAAP, we use projected cash flows for fair value measurements of these financial assets and liabilities. 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, including the recorded value of our Facility, approximates fair value due to their short-term maturities and/or variable interest rates. The estimated fair value of our fixed-rate notes receivable was based on the discounted value of future cash flows related to the loans at inception, adjusted for changes in certain variables, including, but not limited to, credit quality, industry, financial markets and other recent comparables. The estimated fair value of our fixed-rate non-recourse long-term debt and seller’s credits was based on the discounted value of future cash flows related to the debt and seller’s credit based on a discount rate derived from the margin at inception, adjusted for material changes in risk, plus the applicable fixed rate based on the current interest rate curve. The fair value of the principal outstanding on our fixed-rate notes receivable was derived using discount rates ranging between 8.0% and 25.9% as of June 30, 2017 . The fair value of the principal outstanding on our fixed-rate non-recourse long-term debt and seller’s credits was derived using discount rates ranging between 3.6% and 5.6% as of June 30, 2017 . June 30, 2017 Carrying Value Fair Value (Level 3) Principal outstanding on fixed-rate notes receivable $ 40,194,865 $ 38,312,306 Principal outstanding on fixed-rate non-recourse long-term debt $ 86,635,073 $ 86,339,634 Seller's credits $ 14,590,712 $ 14,218,811 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We are taxed as a partnership for federal and state income tax purposes. Therefore, no provision for federal and state income taxes has been recorded for the partnership since the liability for these taxes is the responsibility of each of the individual partners rather than us. However, the Taiwan branch of our direct wholly-owned subsidiary, ICON Taiwan Semiconductor, LLC (the “Inotera Taiwan Branch”), is taxed as a corporation under the laws of Taiwan, Republic of China. The Taiwan corporate income tax rate is 17.0% for 2017. For the three months ended June 30, 2017 and 2016, we recorded $ 9,289 and $ 260,512 , respectively, of current income tax expense. For the six months ended June 30, 2017 and 2016, we recorded $ 507,214 and $ 260,512 , respectively, of current income tax expense. Under the laws of Taiwan, Republic of China, the Inotera Taiwan Branch is subject to income tax examination for the 2014 tax year and subsequent tax years. We have not identified any material uncertain tax positions as of June 30, 2017 . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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. We are currently seeking to recover a judgment issued in our favor against a guarantor covering amounts owed to us related to a secured term loan to Kanza Construction, Inc. (“Kanza”). In connection with certain debt obligations, we are required to maintain restricted cash balances with certain banks. At June 30, 2017 , we had restricted cash of $4,656,137 , which is presented within other assets in our consolidated balance sheets. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On July 21, 2017, Blackhawk Mining, LLC and its affiliates (collectively, “Blackhawk”) satisfied their remaining lease obligations by making a prepayment of $7,753,666 . As a result, the joint venture recognized finance income of approximately $353,000 , of which our share was approximately $53,000 . |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation Our accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for Quarterly Reports on Form 10-Q. In the opinion of our General Partner, all adjustments, which are of a normal recurring nature, considered necessary for a fair presentation have been included. These consolidated financial statements should be read together with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2016. The results for the interim period are not necessarily indicative of the results for the full year. |
Restricted Cash | Restricted Cash Cash that is restricted from use in operations is generally classified as restricted cash. Classification of changes in restricted cash within the consolidated statements of cash flows depends on the predominant source of the related cash flows. For the six months ended June 30, 2017 |
Credit Quality of Notes Receivable and Finance Leases and Credit Loss Reserve | Credit Quality of Notes Receivable and Finance Leases and Credit Loss Reserve Our Investment Manager monitors the ongoing credit quality of our financing receivables by (i) reviewing and analyzing a borrower’s financial performance on a regular basis, including review of financial statements received on a monthly, quarterly or annual basis as prescribed in the loan or lease agreement, (ii) tracking the relevant credit metrics of each financing receivable and a borrower’s compliance with financial and non-financial covenants, (iii) monitoring a borrower’s payment history and public credit rating, if available, and (iv) assessing our exposure based on the current investment mix. As part of the monitoring process, our Investment Manager may physically inspect the collateral or a borrower’s facility and meet with a borrower’s management to better understand such borrower’s financial performance and its future plans on an as-needed basis. As our financing receivables, generally notes receivable and finance leases, are limited in number, our Investment Manager is able to estimate the credit loss reserve based on a detailed analysis of each financing receivable as opposed to using portfolio-based metrics. Our Investment Manager does not use a system of assigning internal risk ratings to each of our financing receivables. Rather, each financing receivable is analyzed quarterly and categorized as either performing or non-performing based on certain factors including, but not limited to, financial results, satisfying scheduled payments and compliance with financial covenants. A financing receivable is usually categorized as non-performing only when a borrower experiences financial difficulties and has failed to make scheduled payments. Our Investment Manager then analyzes whether the financing receivable should be placed on a non-accrual status, a credit loss reserve should be established or the financing receivable should be restructured. As part of the assessment, updated collateral value is usually considered and such collateral value can be based on a third party industry expert appraisal or, depending on the type of collateral and accessibility to relevant published guides or market sales data, internally derived fair value. Material events would be specifically disclosed in the discussion of each financing receivable held. Financing receivables are generally placed on a non-accrual status when payments are more than 90 days past due. Additionally, our Investment Manager periodically reviews the creditworthiness of companies with payments outstanding less than 90 days and based upon our Investment Manager’s judgment, these accounts may be placed on a non-accrual status. In accordance with the cost recovery method, payments received on non-accrual financing receivables are applied to principal if there is doubt regarding the ultimate collectability of principal. If collection of the principal of non-accrual financing receivables is not in doubt, interest income is recognized on a cash basis. Financing receivables on non-accrual status may not be restored to accrual status until all delinquent payments have been received, and we believe recovery of the remaining unpaid receivable is probable. When our Investment Manager deems it is probable that we will not be able to collect all contractual principal and interest on a non-performing financing receivable, we perform an analysis to determine if a credit loss reserve is necessary. This analysis considers the estimated cash flows from the financing receivable, and/or the collateral value of the asset underlying the financing receivable when financing receivable repayment is collateral dependent. If it is determined that the impaired value of the non-performing financing receivable is less than the net carrying value, we will recognize a credit loss reserve or adjust the existing credit loss reserve with a corresponding charge to earnings. We then charge off a financing receivable in the period that it is deemed uncollectible by reducing the credit loss reserve and the balance of the financing receivable. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-05, Derivatives and Hedging: Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships (“ASU 2016-05”), which clarifies that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument does not, in and of itself, require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. We adopted ASU 2016-05 on January 1, 2017, which did not have an effect on our consolidated financial statements. In March 2016, FASB issued ASU No. 2016-07, Investments – Equity Method and Joint Ventures: Simplifying the Transition to the Equity Method of Accounting (“ASU 2016-07”), which eliminates the retroactive adjustments to an investment upon it qualifying for the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence by the investor. ASU 2016-07 requires that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment qualifies for equity method accounting. We adopted ASU 2016-07 on January 1, 2017, which did not have an effect on our consolidated financial statements. In October 2016, FASB issued ASU No. 2016-17, Consolidation (“ASU 2016-17”), which amends the consolidation guidance on how a reporting entity that is the single decision maker of a variable interest entity should treat indirect interests in such entity held by related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that variable interest entity. Under ASU 2016-17, a single decision maker is not required to consider indirect interests held by related parties that are under common control with the single decision maker to be the equivalent of direct interests in their entirety. We adopted ASU 2016-17 on January 1, 2017, which did not have an effect on our consolidated financial statements. Other Recent Accounting Pronouncements In May 2014, FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), requiring revenue to be recognized in an amount that reflects the consideration expected to be received in exchange for goods and services. This new revenue standard may be applied retrospectively to each prior period presented, or retrospectively with the cumulative effect recognized as of the date of adoption. In August 2015, FASB issued ASU No. 2015-14, Revenue from Contracts with Customers – Deferral of the Effective Date (“ASU 2015-14”), which defers implementation of ASU 2014-09 by one year. Under such deferral, the adoption of ASU 2014-09 becomes effective for us on January 1, 2018, including interim periods within that reporting period. Early adoption is permitted, but not before our original effective date of January 1, 2017. Our evaluation of the impact of the adoption of ASU 2014-09 on our consolidated financial statements is ongoing and our implementation efforts have included the identification of revenue within the scope of the guidance and the evaluation of applicable revenue contracts. We continue to evaluate the timing of recognition of various revenue; however, since a substantial portion of our revenue is recognized from our leasing contracts, which is subject to ASU 2016-02 (as defined below), such revenue is excluded from our evaluation of ASU 2014-09. In January 2016, FASB issued ASU No. 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which provides guidance related to accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. The adoption of ASU 2016-01 becomes effective for us on January 1, 2018, including interim periods within that reporting period. We are currently in the process of evaluating the impact of the adoption of ASU 2016-01 on our consolidated financial statements. In February 2016, FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”), which requires lessees to recognize assets and liabilities for leases with lease terms greater than twelve months on the balance sheet and disclose key information about leasing arrangements. ASU 2016-02 implements changes to lessor accounting focused on conforming with certain changes made to lessee accounting and the recently released revenue recognition guidance. The adoption of ASU 2016-02 becomes effective for us on January 1, 2019. Early adoption is permitted. Based on our preliminary assessment, most, if not all, of our leases are subject to lessor accounting and the accounting applied by a lessor is largely unchanged from that applied under current U.S. GAAP. We continue to evaluate the impact of the adoption of ASU 2016-02 on our consolidated financial statements. In June 2016, FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (“ASU 2016-13”), which modifies the measurement of credit losses by eliminating the probable initial recognition threshold set forth in current guidance, and instead reflects an entity’s current estimate of all expected credit losses. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity will apply the amendments within ASU 2016-13 through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The adoption of ASU 2016-13 becomes effective for us on January 1, 2020, including interim periods within that reporting period. Early adoption is permitted. We are currently in the process of evaluating the impact of the adoption of ASU 2016-13 on our consolidated financial statements. In August 2016, FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows. The adoption of ASU 2016-15 becomes effective for us on January 1, 2018, including interim periods within that reporting period. Early adoption is permitted. An entity will apply the amendments within ASU 2016-15 using a retrospective transition method to each period presented. We are currently in the process of evaluating the impact of the adoption of ASU 2016-15 on our consolidated financial statements. In November 2016, FASB issued ASU No. 2016-18, Statement of Cash Flows (“ASU 2016-18”), which provides guidance on the presentation of restricted cash or restricted cash equivalents in the statement of cash flows. The adoption of ASU 2016-18 becomes effective for us on January 1, 2018, including interim periods within that reporting period. Early adoption is permitted. An entity will apply the amendments within ASU 2016-18 using a retrospective transition method to each period presented. We are currently in the process of evaluating the impact of the adoption of ASU 2016-18 on our consolidated financial statements. In January 2017, FASB issued ASU No. 2017-01, Business Combinations (“ASU 2017-01”), which clarifies the definition of a business. ASU 2017-01 sets forth requirements to be met for a set to be deemed a business and establishes a practical way to determine when a set is not a business. To be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create an output, and removes the evaluation of whether a market participant could replace missing elements. In addition, ASU 2017-01 narrows the definition of outputs and aligns such definition with how outputs are described within the revenue guidance. The adoption of ASU 2017-01 becomes effective for us on January 1, 2018, including interim periods within that reporting period. Early adoption is permitted for transactions that occur before the issuance date or effective date of ASU 2017-01 to the extent that such transactions have not been reported in financial statements that have been issued or made available for issuance. We are currently in the process of evaluating the impact of the adoption of ASU 2017-01 on our consolidated financial statements. |
Net Investment in Notes Recei23
Net Investment in Notes Receivable (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Net investment in notes receivable consisted of the following: June 30, December 31, 2017 2016 Principal outstanding (1) $ 45,373,642 $ 46,936,267 Initial direct costs 309,443 488,192 Deferred fees (1,612,840 ) (1,895,395 ) Credit loss reserve (2) (5,397,913 ) (5,397,913 ) Net investment in notes receivable (3) $ 38,672,332 $ 40,131,151 (1) As of June 30, 2017 and December 31, 2016 , total principal outstanding related to our impaired loan of $5,178,776 was related to Ensaimada. (2) As of June 30, 2017 and December 31, 2016 , the credit loss reserve of $5,397,913 was related to Ensaimada. (3) As of June 30, 2017 and December 31, 2016 , net investment in note receivable related to our impaired loan was $0 . |
Allowance for Credit Losses on Financing Receivables | Credit loss allowance activities for the three months ended June 30, 2017 were as follows: Credit Loss Allowance Allowance for credit loss as of March 31, 2017 $ 5,397,913 Provisions — Write-offs, net of recoveries — Allowance for credit loss as of June 30, 2017 $ 5,397,913 Credit loss allowance activities for the three months ended June 30, 2016 were as follows: Credit Loss Allowance Allowance for credit loss as of March 31, 2016 $ 5,397,913 Provisions — Write-offs, net of recoveries — Allowance for credit loss as of June 30, 2016 $ 5,397,913 Credit loss allowance activities for the six months ended June 30, 2017 were as follows: Credit Loss Allowance Allowance for credit loss as of December 31, 2016 $ 5,397,913 Provisions — Write-offs, net of recoveries — Allowance for credit loss as of June 30, 2017 $ 5,397,913 Credit loss allowance activities for the six months ended June 30, 2016 were as follows: Credit Loss Allowance Allowance for credit loss as of December 31, 2015 $ 5,397,913 Provisions — Write-offs, net of recoveries — Allowance for credit loss as of June 30, 2016 $ 5,397,913 |
Leased Equipment at Cost (Table
Leased Equipment at Cost (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Leased equipment at cost | Leased equipment at cost consisted of the following: June 30, December 31, 2017 2016 Geotechnical drilling vessels $ 124,573,141 $ 124,573,141 Leased equipment at cost 124,573,141 124,573,141 Less: accumulated depreciation 9,780,741 6,530,460 Leased equipment at cost, less accumulated depreciation $ 114,792,400 $ 118,042,681 |
Net Investment in Finance Lea25
Net Investment in Finance Lease (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Leases, Capital [Abstract] | |
Net investment in finance leases | Net investment in finance leases consisted of the following: June 30, December 31, 2017 2016 Minimum rents receivable (1) $ — $ 22,526,705 Estimated unguaranteed residual values — 390,286 Initial direct costs — 255,720 Unearned income — (5,580,203 ) Credit loss reserve (2) — (7,271,958 ) Net investment in finance leases $ — $ 10,320,550 (1) As of December 31, 2016 , total minimum rents receivable related to our impaired finance lease of $ 19,875,450 was related to the AMC Ambassador. (2) As of December 31, 2016 , the credit loss reserve of $ 7,271,958 was related to the AMC Ambassador. |
Investment in Joint Ventures (T
Investment in Joint Ventures (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Information as to the results of operations of this joint venture is summarized as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Revenue $ 1,164,394 $ 1,164,394 $ 2,328,788 $ 2,328,788 Net (loss) income $ (14,432,528 ) $ 212,810 $ (14,191,504 ) $ 423,146 Our share of net (loss) $ (1,729,548 ) $ 27,070 $ (1,698,951 ) $ 53,831 On May 15, 2013, a joint venture owned 40% by us, 39% by ICON Leasing Fund Eleven Liquidating Trust (formerly, ICON Leasing Fund Eleven, LLC), an entity also managed by our Investment Manager, and 21% by Fund Twelve purchased a portion of a $208,038,290 subordinated credit facility for Jurong Aromatics Corporation Pte. Ltd. ("JAC") from Standard Chartered Bank for $28,462,500 . The subordinated credit facility initially bore interest at rates ranging between 12.5% and 15% per year and matures in January 2021. As a result of JAC’s failure to make an expected payment that was due to the joint venture during the three months ended March 31, 2015, the interest rate payable by JAC under the facility increased from 12.5% to 15.5% . The subordinated credit facility is secured by a second priority security interest in all JAC’s assets, which include, among other things, all equipment, plant and machinery associated with a condensate splitter and aromatics complex. Our initial contribution to the joint venture was $12,296,208 . During 2015, JAC experienced liquidity constraints as a result of a general economic slow-down in China and India, which led to lower demand from such countries, as well as the price decline of energy and other commodities. As a result, JAC’s manufacturing facility ceased operations and JAC was not able to service interest payments under the facility. In addition, an expected tolling arrangement with JAC's suppliers that would have allowed JAC's manufacturing facility to resume operations did not commence in 2015 as originally anticipated. Discussions among the senior lenders and certain other stakeholders of JAC regarding a restructuring plan ended as the senior lenders did not agree to amendments to their credit facilities as part of the broader restructuring that was being contemplated. As a result, JAC entered receivership on September 28, 2015. As a result of these factors, during the three months ended June 30, 2015, our Investment Manager determined that there was doubt regarding the joint venture’s ultimate collectability of the facility and commenced recording credit losses. Commencing with the three months ended June 30, 2015 and on a quarterly basis thereafter, our Investment Manager has reassessed the collectability of the facility by considering the following factors, among others (i) what a potential buyer may be willing to pay to acquire JAC based on a comparable enterprise value derived from EBITDA multiples and (ii) the average trading price of unsecured distressed debt in comparable industries. During the year ended December 31, 2015, the joint venture recorded an aggregate credit loss of $31,637,426 related to JAC based on our Investment Manager’s quarterly collectability analyses, of which our share was $12,879,462 . Our Investment Manager also assessed impairment under the equity method of accounting for our investment in the joint venture and concluded that there was no impairment. In January 2016, our Investment Manager engaged in further discussions with JAC’s other subordinated lenders and the Receiver regarding a near term plan for JAC’s manufacturing facility. Based upon such discussions, our Investment Manager anticipated that a one -year tolling arrangement with JAC’s suppliers would be implemented to allow JAC’s facility to recommence operations. In July 2016, the tolling arrangement was implemented and the manufacturing facility resumed operations. Although JAC’s manufacturing facility has resumed operations, no debt payments have been made or are expected to be made by JAC to the joint venture while operating under the tolling arrangement. As part of the tolling arrangement and the receivership process, JAC incurred additional senior debt, that could be up to $55,000,000 , to fund its operations as well as any receivership-related costs. As a result, our Investment Manager determined that the joint venture’s ultimate collectability of the facility was further in doubt. As of June 30, 2016, our Investment Manager updated its quarterly assessment by considering (i) a comparable enterprise value derived from EBITDA multiples; (ii) the average trading price of unsecured distressed debt in comparable industries and (iii) the additional senior debt incurred by JAC, which has priority over the joint venture’s facility. Based upon this reassessment, our Investment Manager determined that the joint venture should fully reserve the outstanding balance of the facility due from JAC as of June 30, 2016. As a result, the joint venture recorded an additional credit loss of $5,365,776 for the three months ended June 30, 2016, of which our share was $2,146,310 . During the fourth quarter of 2016, the Receiver formally commenced the process of marketing JAC's facility for sale. Our Investment Manager continues to closely monitor the operations of JAC, the receivership process and the sale process of the manufacturing facility through regular communications with the Receiver and certain other stakeholders. The joint venture did no t recognize any finance income for the three and six months ended June 30, 2017 and 2016. As of June 30, 2017 and December 31, 2016, the total net investment in notes receivable held by the joint venture was $0 and our total investment in the joint venture was $0 . Information as to the results of operations of this joint venture is summarized as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Revenue $ — $ — $ — $ — Net loss $ 6,521 $ 5,399,546 $ 8,699 $ 5,399,546 Our share of net loss $ 2,608 $ 2,159,715 $ 3,479 $ 2,159,715 On January 14, 2016, D&T Holdings, LLC (“D&T”) satisfied its remaining lease obligations by making a prepayment of $8,000,000 . In addition, D&T exercised its option to repurchase all assets under the lease for $1 , upon which title was transferred. As a result of the prepayment, the joint venture owned 27.5% by us recognized finance income of approximately $1,400,000 , of which our share was approximately $385,000 . Information as to the results of operations of this joint venture is summarized as follows: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Revenue $ 4,404 $ — $ 4,404 $ 1,491,704 Net income (loss) $ 4,404 $ (3,684 ) $ 2,721 $ 1,480,497 Our share of net income (loss) $ 1,992 $ (1,013 ) $ 1,992 $ 407,356 |
Non-Recourse Long-Term Debt (Ta
Non-Recourse Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | As of June 30, 2017 and December 31, 2016 , we had the following non-recourse long-term debt: Counterparty June 30, 2017 December 31, 2016 Maturity Rate ABN AMRO, Rabobank, NIBC $ 79,625,000 $ 83,416,666 2020 4.367% * DVB Bank SE 5,312,500 6,250,000 2019 4.997% 84,937,500 89,666,666 Less: debt issuance costs 1,422,267 1,594,654 Total non-recourse long-term debt $ 83,515,233 $ 88,072,012 * The interest rate was fixed at 4.117% after giving effect to the interest rate swaps entered into on February 8, 2016. Effective December 31, 2016, the interest rate of the variable rate senior loan increased by 0.25% pursuant to an amended facility agreement. |
Transactions with Related Par28
Transactions with Related Parties (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Fees and expenses paid or accrued | Fees and other expenses incurred by us to our General Partner or its affiliates were as follows: Three Months Ended June 30, Six Months Ended June 30, Entity Capacity Description 2017 2016 2017 2016 ICON Capital, LLC Investment Manager Management fees (1) $ 77,183 $ 446,853 $ 166,292 $ 732,775 ICON Capital, LLC Investment Manager Administrative expense reimbursements (1) 345,109 376,532 715,165 707,094 Fund Fourteen Noncontrolling interest Interest expense (1) 101,021 102,221 202,041 204,590 $ 523,313 $ 925,606 $ 1,083,498 $ 1,644,459 (1) Amount charged directly to operations. |
Derivative Financial Instrume29
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative financial instruments in consolidated balance sheets | The table below presents the fair value of our derivative financial instruments as well as their classification within our consolidated balance sheets as of June 30, 2017 and December 31, 2016 . Asset Derivatives June 30, 2017 December 31, 2016 Balance Sheet Location Fair Value Fair Value Derivatives not designated as hedging instruments: Interest rate swaps Derivative financial instruments $ 1,343,477 $ 1,583,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Derivative Assets at Fair Value | The following table summarizes the valuation of our financial assets measured at fair value on a recurring basis as of June 30, 2017 : Level 1 Level 2 Level 3 Total Assets: Interest rate swaps $ — $ 1,343,477 $ — $ 1,343,477 |
Fair Value Measurements, Nonrecurring | The following table summarizes the valuation of our material non-financial assets measured at fair value on a nonrecurring basis, which is presented as of the date the impairment or credit loss was recorded, while the carrying value of the asset is presented as of June 30, 2017: Carrying Value at Fair Value at Impairment Date Impairment Loss for the Six Months Ended June 30, 2017 Level 1 Level 2 Level 3 June 30, 2017 Vessel $ 6,000,000 $ — $ — $ 6,000,000 $ 2,000,000 |
Fair Value, by Balance Sheet Grouping | June 30, 2017 Carrying Value Fair Value (Level 3) Principal outstanding on fixed-rate notes receivable $ 40,194,865 $ 38,312,306 Principal outstanding on fixed-rate non-recourse long-term debt $ 86,635,073 $ 86,339,634 Seller's credits $ 14,590,712 $ 14,218,811 |
Net Investment in Notes Recei31
Net Investment in Notes Receivable (Narrative) (Details) | Jan. 24, 2017USD ($) | Jun. 30, 2017USD ($)affiliate | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)affiliate | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Mar. 31, 2016USD ($) | Jan. 31, 2016vessel | Mar. 31, 2015vessel | Nov. 22, 2011USD ($)loan |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Net investments in notes receivable | $ 8,898,403 | $ 8,898,403 | $ 5,397,913 | |||||||||
Credit loss reserve | 5,397,913 | $ 5,397,913 | 5,397,913 | $ 5,397,913 | $ 5,397,913 | $ 5,397,913 | 5,397,913 | $ 5,397,913 | ||||
Finance income | 1,497,393 | 1,552,870 | 2,883,938 | 3,828,801 | ||||||||
Net investment in notes receivable | 38,672,332 | 38,672,332 | 40,131,151 | |||||||||
Net investment in finance leases past 90 days and still accruing | 0 | 0 | 0 | |||||||||
Ensaimada Sa | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Credit loss reserve | 5,397,913 | 5,397,913 | 5,397,913 | |||||||||
Face amount of loans funded | $ 5,298,947 | |||||||||||
Stated rate | 17.00% | |||||||||||
Number of loans guaranteed by shareholders | loan | 1 | |||||||||||
Credit loss | $ 5,397,913 | |||||||||||
Finance income | 0 | 0 | ||||||||||
Net investment in notes receivable | 0 | 0 | 0 | |||||||||
TMA | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Finance income | 0 | $ 124,296 | 111,279 | $ 252,673 | ||||||||
Net investment in notes receivable | $ 3,500,490 | $ 3,500,490 | 3,500,490 | |||||||||
Number of affiliates | affiliate | 4 | 4 | ||||||||||
Interest receivable | $ 1,064,668 | $ 1,064,668 | 953,389 | |||||||||
Net investment in finance leases past 90 days and still accruing | 1,807,471 | 1,807,471 | 1,380,312 | |||||||||
Number of contracts required to be under contract | vessel | 4 | |||||||||||
Number of vessels on charter | vessel | 2 | |||||||||||
Collateral value receivable | $ 1,900,000 | $ 1,900,000 | $ 800,000 | |||||||||
Asphalt Carrier Shipping Company | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Repayment of loan | $ 1,416,952 | |||||||||||
Prepayment fee | $ 66,600 |
Net Investment in Notes Recei32
Net Investment in Notes Receivable (Reconciliation) (Details) - USD ($) | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Principal outstanding | $ 45,373,642 | $ 46,936,267 | ||||
Initial direct costs | 309,443 | 488,192 | ||||
Deferred fees | (1,612,840) | (1,895,395) | ||||
Credit loss reserve | (5,397,913) | $ (5,397,913) | (5,397,913) | $ (5,397,913) | $ (5,397,913) | $ (5,397,913) |
Net investment in notes receivable | 38,672,332 | 40,131,151 | ||||
Ensaimada Sa | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Credit loss reserve | (5,397,913) | (5,397,913) | ||||
Net investment in notes receivable | 0 | 0 | ||||
Outstanding principal, impaired loans | 5,178,776 | 5,178,776 | ||||
Impaired receivable | $ 0 | $ 0 |
Net Investment in Notes Recei33
Net Investment in Notes Receivable (Credit Allowance Activity) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | $ 5,397,913 | $ 5,397,913 | $ 5,397,913 | $ 5,397,913 |
Provisions | 0 | 0 | 0 | 0 |
Write-offs, net of recoveries | 0 | 0 | 0 | 0 |
Ending balance | $ 5,397,913 | $ 5,397,913 | $ 5,397,913 | $ 5,397,913 |
Leased Equipment at Cost (Detai
Leased Equipment at Cost (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||||
Leased equipment at cost | $ 124,573,141 | $ 124,573,141 | $ 124,573,141 | ||
Less: accumulated depreciation | 9,780,741 | 9,780,741 | 6,530,460 | ||
Leased equipment at cost, less accumulated depreciation | 114,792,400 | 114,792,400 | 118,042,681 | ||
Depreciation | 1,623,423 | $ 8,309,405 | 3,250,281 | $ 16,886,050 | |
Geotechnical drilling vessels | |||||
Property, Plant and Equipment [Line Items] | |||||
Leased equipment at cost | 124,573,141 | 124,573,141 | $ 124,573,141 | ||
Leased Equipment at Cost | |||||
Property, Plant and Equipment [Line Items] | |||||
Depreciation | $ 1,623,423 | $ 8,309,405 | $ 3,250,281 | $ 16,886,050 |
Net Investment in Finance Lea35
Net Investment in Finance Lease (Details) - USD ($) | Apr. 20, 2017 | Jun. 04, 2012 | Dec. 19, 2011 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Mar. 31, 2017 | Dec. 31, 2016 |
Capital Leased Assets [Line Items] | ||||||||
Net investment in finance leases | $ 0 | $ 8,000,000 | ||||||
Net investment in finance leases past 90 days and still accruing | 0 | 0 | ||||||
Credit loss impairment | 0 | 7,271,958 | ||||||
Net investment in finance leases | 0 | 10,320,550 | ||||||
Vessel | 6,000,000 | 0 | ||||||
Proceeds from sale of leased equipment | 2,393,388 | $ 0 | ||||||
AMC | ||||||||
Capital Leased Assets [Line Items] | ||||||||
Vessel | $ 8,000,000 | |||||||
Finance income | $ 481,964 | $ 156,975 | $ 981,369 | |||||
Gallatin Maritime Management | ||||||||
Capital Leased Assets [Line Items] | ||||||||
Lease term | 9 years | |||||||
Equipment purchase value | $ 24,869,000 | |||||||
Credit loss impairment | 7,271,958 | |||||||
Gallatin Maritime Management | Vessel | ||||||||
Capital Leased Assets [Line Items] | ||||||||
Net investment in finance leases | 8,000,000 | |||||||
AMC | ||||||||
Capital Leased Assets [Line Items] | ||||||||
Credit loss impairment | $ 7,271,958 | |||||||
Challenge Mfg | ||||||||
Capital Leased Assets [Line Items] | ||||||||
Finance income | $ 136,726 | |||||||
Proceeds from sale of leased equipment | $ 2,393,388 | |||||||
ICON Fund Fifteen | Gallatin Maritime Management | ||||||||
Capital Leased Assets [Line Items] | ||||||||
Ownership percentage | 60.00% | |||||||
Fund Fourteen | AMC | ||||||||
Capital Leased Assets [Line Items] | ||||||||
Ownership percentage | 40.00% | |||||||
Fund Fourteen | Gallatin Maritime Management | ||||||||
Capital Leased Assets [Line Items] | ||||||||
Ownership percentage | 40.00% |
Net Investment in Finance Lea36
Net Investment in Finance Lease (Reconciliation) (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Minimum rents receivable | $ 0 | $ 22,526,705 |
Estimated unguaranteed residual values | 0 | 390,286 |
Initial direct costs | 0 | 255,720 |
Unearned income | 0 | (5,580,203) |
Credit loss reserve | 0 | (7,271,958) |
Net investment in finance leases | $ 0 | 10,320,550 |
AMC | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Minimum rents receivable | 19,875,450 | |
Credit loss reserve | $ (7,271,958) |
Vessel (Details)
Vessel (Details) | 3 Months Ended |
Jun. 30, 2017 | |
AMC | |
Property, Plant and Equipment [Line Items] | |
Impairment | 2,000,000 |
Investment in Joint Ventures -
Investment in Joint Ventures - Narrative (Details) | Jun. 12, 2014USD ($) | May 15, 2013USD ($) | Jan. 31, 2016 | Jun. 30, 2017USD ($)joint_venturenote_receivablelease | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)joint_venturenote_receivablelease | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($)joint_venturenote_receivablelease | Dec. 31, 2015USD ($) | Jul. 31, 2016USD ($) | Jan. 15, 2016USD ($) | Mar. 31, 2015 | Mar. 28, 2014 |
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Number of notes receivable | note_receivable | 2 | 2 | 2 | ||||||||||
Number of finance leases | lease | 2 | 2 | 2 | ||||||||||
Number of operating lease held through joint ventures. | joint_venture | 4 | 4 | 4 | ||||||||||
Investment in joint ventures | $ 2,519,896 | $ 2,519,896 | $ 4,359,617 | ||||||||||
Investment in joint ventures | 16,745 | $ 7,434 | |||||||||||
Finance income | 1,497,393 | $ 1,552,870 | 2,883,938 | 3,828,801 | |||||||||
Net investment in notes receivable | 38,672,332 | 38,672,332 | 40,131,151 | ||||||||||
Offshore Supply Vessel | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Equipment purchase value | $ 40,000,000 | ||||||||||||
Charter period | 10 years | ||||||||||||
Payments to acquire equipment | $ 12,000,000 | ||||||||||||
Offshore Supply Vessel | ICON ECI Fund Fifteen | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Ownership percentage | 12.50% | ||||||||||||
Offshore Supply Vessel | ICON Leasing Fund Twelve, LLC | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Ownership percentage | 75.00% | ||||||||||||
Offshore Supply Vessel | Fund Fourteen | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Ownership percentage | 12.50% | ||||||||||||
Senior Subordinated Loans | Offshore Supply Vessel | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Long term debt | $ 26,000,000 | ||||||||||||
Subordinated Debt | Offshore Supply Vessel | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Long term debt | $ 2,000,000 | ||||||||||||
Pacific Crest | ICON ECI Fund Fifteen | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Investment in joint ventures | 0 | 0 | |||||||||||
Pacific Crest | Offshore Supply Vessel | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Impairment | 14,661,525 | ||||||||||||
Pacific Crest | Offshore Supply Vessel | ICON ECI Fund Fifteen | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Impairment | 1,758,641 | ||||||||||||
Joint Venture - JAC | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Finance income | 0 | 0 | 0 | $ 0 | |||||||||
Jurong Aromatics Corp Pte. Ltd. | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Subordinated credit facility acquired | $ 208,038,290 | ||||||||||||
Subordinated credit facility purchase price | 28,462,500 | ||||||||||||
Investment in joint ventures | $ 12,296,208 | ||||||||||||
Credit loss | 5,365,776 | ||||||||||||
Tolling period | 1 year | ||||||||||||
Senior notes | $ 55,000,000 | ||||||||||||
Jurong Aromatics Corp Pte. Ltd. | ICON ECI Fund Fifteen | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Ownership percentage | 40.00% | ||||||||||||
Credit loss | $ 2,146,310 | ||||||||||||
Jurong Aromatics Corp Pte. Ltd. | ICON Leasing Fund Twelve, LLC | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Ownership percentage | 21.00% | ||||||||||||
Jurong Aromatics Corp Pte. Ltd. | Icon Leasing Fund Eleven LLC | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Ownership percentage | 39.00% | ||||||||||||
JAC | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Credit loss | $ 31,637,426 | ||||||||||||
Net investment in notes receivable | 0 | 0 | 0 | ||||||||||
JAC | ICON ECI Fund Fifteen | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Credit loss | $ 12,879,462 | ||||||||||||
JAC | ICON Fund Fifteen | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Investment in joint ventures | $ 0 | $ 0 | 0 | ||||||||||
DT Holdings | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Finance income | 1,400,000 | ||||||||||||
Prepayment of lease obligation | $ 8,000,000 | ||||||||||||
Option to repurchase all assets | 1 | ||||||||||||
DT Holdings | ICON ECI Fund Fifteen | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Ownership percentage | 27.50% | ||||||||||||
Finance income | $ 385,000 | ||||||||||||
Minimum | Jurong Aromatics Corp Pte. Ltd. | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Stated rate | 12.50% | 12.50% | |||||||||||
Maximum | Jurong Aromatics Corp Pte. Ltd. | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Stated rate | 15.00% | 15.50% |
Investment in Joint Ventures (D
Investment in Joint Ventures (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Schedule of Equity Method Investments [Line Items] | ||||
Income (loss) from investment in joint ventures | $ (1,657,378) | $ (1,928,771) | $ (1,551,562) | $ (1,263,873) |
Pacific Crest | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenue | 1,164,394 | 1,164,394 | 2,328,788 | 2,328,788 |
Net loss | (14,432,528) | 212,810 | (14,191,504) | 423,146 |
Joint Venture - JAC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Net loss | 6,521 | 5,399,546 | 8,699 | 5,399,546 |
Income (loss) from investment in joint ventures | 2,608 | 2,159,715 | 3,479 | 2,159,715 |
DT Holdings | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenue | 4,404 | 0 | 4,404 | 1,491,704 |
Net loss | 4,404 | (3,684) | 2,721 | 1,480,497 |
Income (loss) from investment in joint ventures | 1,992 | (1,013) | 1,992 | 407,356 |
ICON Fund Fifteen | Pacific Crest | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Income (loss) from investment in joint ventures | $ (1,729,548) | $ 27,070 | $ (1,698,951) | $ 53,831 |
Non-Recourse Long-Term Debt (No
Non-Recourse Long-Term Debt (Non-recourse long-term debt) (Details) - USD ($) | Dec. 31, 2016 | Jun. 30, 2017 | Feb. 08, 2016 |
Debt Instrument [Line Items] | |||
Non-recourse debt, gross | $ 89,666,666 | $ 84,937,500 | |
Less: debt issuance costs | 1,594,654 | 1,422,267 | |
Non-recourse long-term debt | 88,072,012 | 83,515,233 | |
ABN AMRO, Rabobank, NIBC | |||
Debt Instrument [Line Items] | |||
Non-recourse debt, gross | $ 83,416,666 | $ 79,625,000 | |
Effective rate | 4.367% | ||
Stated rate | 4.117% | ||
Increase in interest rate | 0.25% | ||
DVB Bank SE | |||
Debt Instrument [Line Items] | |||
Non-recourse debt, gross | $ 6,250,000 | $ 5,312,500 | |
Effective rate | 4.997% |
Non-Recourse Long-Term Debt (Na
Non-Recourse Long-Term Debt (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Jun. 04, 2012 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Carrying value of underlying assets securing non-recourse debt | $ 120,792,400 | $ 120,792,400 | $ 126,042,681 | |||
Non-recourse long-term debt | 83,515,233 | 83,515,233 | $ 88,072,012 | |||
Additional interest expense | 264,943 | $ 424,376 | ||||
Non-Recourse Long-Term Debt | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Additional interest expense | 126,789 | $ 134,206 | 255,808 | $ 413,414 | ||
AMC | DVB | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Non-recourse long-term debt | $ 5,312,500 | $ 5,312,500 | $ 17,500,000 | |||
Stated rate | 4.997% | |||||
AMC | ICON ECI Fund Fifteen | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 60.00% | |||||
AMC | Fund Fourteen | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 40.00% |
Revolving Line of Credit, Rec42
Revolving Line of Credit, Recourse (Narrative) (Details) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017USD ($)advance | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)advance | Jun. 30, 2016USD ($) | May 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 12,500,000 | |||||
Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Number of separate non-prime rate advances | advance | 5 | 5 | ||||
Spread basis rate | 2.50% | |||||
Stated rate | 4.00% | 4.00% | ||||
Commitment fee rate | 0.50% | |||||
Letters of credit outstanding, amount | $ 0 | |||||
Debt issuance costs | $ 9,134 | |||||
Interest expense | $ 3,654 | $ 5,481 | $ 9,135 | $ 10,962 |
Transactions with Related Par43
Transactions with Related Parties (Narratives) (Details) - USD ($) | Jul. 01, 2016 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | |||||||
Distributions to General Partners | $ 1,006,201 | $ 1,320,100 | |||||
General Partner's net income (loss) | (21,735) | $ (3,428) | $ (16,279) | $ 19,038 | |||
Decrease of management fee rate | 50.00% | ||||||
Management fee, gross periodic payments due and paid | 1.75% | ||||||
Due to related parties | 3,109,216 | 3,109,216 | $ 3,208,866 | ||||
Acquisition fees | 176,427 | ||||||
General Partner | |||||||
Related Party Transaction [Line Items] | |||||||
Distributions to General Partners | 10,052 | $ 40,094 | 23,253 | $ 79,789 | |||
Due to related parties | 3,109,216 | 3,109,216 | 3,208,866 | ||||
Note payable | 3,119,840 | 3,119,840 | 2,917,799 | ||||
Accrued interest | $ 26,643 | $ 26,643 | 28,863 | ||||
Administrative expense reimbursement payable | $ 113,475 |
Transactions with Related Par44
Transactions with Related Parties (Related Party Transactions Activity) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Fees And Expenses Paid Or Accrued [Abstract] | ||||
Management fees | $ 77,183 | $ 446,853 | $ 166,292 | $ 732,775 |
Administrative expense reimbursements | 345,109 | 376,532 | 715,165 | 707,094 |
Interest expense | 1,350,040 | 2,145,734 | 2,682,086 | 4,629,056 |
Total | 523,313 | 925,606 | 1,083,498 | 1,644,459 |
ICON Capital, LLC | ||||
Fees And Expenses Paid Or Accrued [Abstract] | ||||
Management fees | 77,183 | 446,853 | 166,292 | 732,775 |
Administrative expense reimbursements | 345,109 | 376,532 | 715,165 | 707,094 |
Fund Fourteen | ||||
Fees And Expenses Paid Or Accrued [Abstract] | ||||
Interest expense | $ 101,021 | $ 102,221 | $ 202,041 | $ 204,590 |
Derivative Financial Instrume45
Derivative Financial Instruments (Details) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017USD ($)swap | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)swap | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | Feb. 08, 2016swap | |
Derivative [Line Items] | ||||||
Termination value of derivatives in a liability position | $ 1,356,465 | $ 1,356,465 | ||||
Gain (loss) on derivative financial instruments | $ (339,787) | $ (715,991) | $ (275,123) | $ (998,885) | ||
Interest rate swaps | Derivatives not designated as hedging instruments: | ||||||
Derivative [Line Items] | ||||||
Number of derivative instruments held | swap | 2 | 2 | 2 | |||
Notional amount | $ 79,625,000 | $ 79,625,000 | ||||
Fair Value, Measurements, Recurring | Interest rate swaps | ||||||
Derivative [Line Items] | ||||||
Asset Derivatives | 1,343,477 | 1,343,477 | ||||
Fair Value, Measurements, Recurring | Interest rate swaps | Level 2 | Interest rate swaps | Derivatives not designated as hedging instruments: | Derivative financial instruments | Fair Value | ||||||
Derivative [Line Items] | ||||||
Asset Derivatives | $ 1,343,477 | $ 1,343,477 | $ 1,583,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017USD ($) | Jun. 30, 2017USD ($) | |
Fixed Rate Notes Receivable | Fair Value | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value discount rates | 8.00% | |
Fixed Rate Notes Receivable | Fair Value | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value discount rates | 25.90% | |
Fixed Rate Non Recourse Long Term Debt And Sellers Credit | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value discount rates | 3.60% | |
Fixed Rate Non Recourse Long Term Debt And Sellers Credit | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value discount rates | 5.60% | |
Vessel | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Vessel | $ 6,000,000 | $ 6,000,000 |
Impairment loss | 2,000,000 | |
Fair Value, Measurements, Recurring | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 1,343,477 | 1,343,477 |
Level 1 | Fair Value, Measurements, Recurring | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Level 1 | Fair Value, Measurements, Nonrecurring | Vessel | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value at Impairment Date | 0 | 0 |
Level 2 | Fair Value, Measurements, Nonrecurring | Vessel | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value at Impairment Date | 0 | 0 |
Level 3 | Fair Value, Measurements, Recurring | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Level 3 | Fair Value, Measurements, Nonrecurring | Vessel | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value at Impairment Date | $ 6,000,000 | $ 6,000,000 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying vs Fair) (Details) | Jun. 30, 2017USD ($) |
Carrying Value | |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | |
Principal outstanding on fixed-rate notes receivable | $ 40,194,865 |
Principal outstanding on fixed-rate non-recourse long-term debt | 86,635,073 |
Seller's credits | 14,590,712 |
Fair Value (Level 3) | Fair Value | |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | |
Principal outstanding on fixed-rate notes receivable | 38,312,306 |
Principal outstanding on fixed-rate non-recourse long-term debt | 86,339,634 |
Seller's credits | $ 14,218,811 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Operating Loss Carryforwards [Line Items] | ||||
Federal tax expense | $ 0 | |||
State and local tax expense | 0 | |||
Income tax expense | $ 9,289 | $ 260,512 | $ 507,214 | $ 260,512 |
Foreign Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Statutory tax rate | 17.00% | |||
Income tax expense | $ 9,289 | $ 260,512 | $ 507,214 | $ 260,512 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Jun. 30, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Restricted cash | $ 4,656,137 |
Subsequent Events (Details)
Subsequent Events (Details) - Blackhawk Mining - Subsequent Event | Jul. 21, 2017USD ($) |
Subsequent Event [Line Items] | |
Lease revenue | $ 7,753,666 |
Finance income | 353,000 |
ICON Fund Fifteen | |
Subsequent Event [Line Items] | |
Finance income | $ 53,000 |