Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Mar. 28, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'SQN AIF IV, L.P. | ' |
Entity Central Index Key | '0001560046 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Document Type | '10-K | ' |
Document Period End Date | 31-Dec-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'FY | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Common Stock, Shares Outstanding | ' | 10,528.77 |
Entity Public Float | $0 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Assets | ' | ' |
Cash and cash equivalents | $146,340 | $1,600 |
Investments in equipment subject to operating leases, net | 11,165,590 | ' |
Equipment notes receivable, including accrued interest of $4,102 and $0 | 2,692,900 | ' |
Equipment loan receivable, including accrued interest of $19,682 and $0 | 6,550,448 | ' |
Initial direct costs, net of accumulated amortization of $16,052 and $0 | 316,448 | ' |
Collateralized loan receivable, including accrued interest of $2,519 and $0 | 324,519 | ' |
Other assets | 127,500 | 500 |
Total Assets | 21,323,745 | 2,100 |
Liabilities and Partner's Equity | ' | ' |
Accounts payable and accrued liabilities | 217,404 | ' |
Unearned interest income | 82,024 | ' |
Equipment notes payable, non-recourse | 8,541,339 | ' |
Distributions payable to General Partner | 537 | ' |
Loan payable, including accrued interest of $25,755 and $0 | 6,825,755 | ' |
Total liabilities | 15,677,856 | 1,000 |
Commitments and contingencies | ' | ' |
Partners' Equity (Deficit): | ' | ' |
Limited Partners | 5,099,313 | 1,000 |
General Partner | -9,119 | 100 |
Total Partners' Equity attributable to the Partnership | 5,645,889 | 1,100 |
Non-controlling interest in consolidated entity | 555,695 | ' |
Total Partners' Equity | 5,645,889 | 1,100 |
Total Liabilities and Partner's Equity | 21,323,745 | 2,100 |
SQN AIF IV GP, LLC | ' | ' |
Liabilities and Partner's Equity | ' | ' |
Due to Related Parties | ' | 1,000 |
SQN Securities, LLC | ' | ' |
Liabilities and Partner's Equity | ' | ' |
Due to Related Parties | $10,797 | ' |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Paranthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Interest receivable on equipment notes receivable | $4,102 | $0 |
Interest receivable on loans receivable | 19,682 | 0 |
Accumulated amortization | 16,052 | 0 |
Interest receivable on collateralized loan receivable | 2,519 | 0 |
Interest payable on loan payable | $25,755 | $0 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Revenue: | ' |
Rental income | $127,501 |
Interest income | 170,263 |
Other income | 1,000 |
Total Revenue | 298,764 |
Expenses: | ' |
Management fees - Investment Manager | 875,000 |
Depreciation and amortization | 77,951 |
Professional fees | 147,556 |
Organizational expenses | 20,000 |
Acquisition costs | 4,260 |
Administration expense | 10,421 |
Interest expense | 25,755 |
Other expenses | 283 |
Total Expenses | 1,161,226 |
Net loss | -862,462 |
Net income attributable to non-controlling interest in consolidated entity | 5,695 |
Net loss attributable to the Partnership | -868,157 |
Net loss attributable to the Partnership: | ' |
Limited Partners | -859,475 |
General Partner | -8,682 |
Net loss attributable to the Partnership | ($868,157) |
Weighted average number of limited partnership interests outstanding | 3,940.39 |
Net loss attributable to Limited Partners per weighted average number of limited partnership interests outstanding | ($218.12) |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Partners' Equity (USD $) | Total | Limited Partnership Interests | General Partner | Limited Partners | Non-controlling Interest |
USD ($) | USD ($) | USD ($) | USD ($) | ||
Beginning balance at Dec. 31, 2012 | $1,100 | ' | $100 | $1,000 | ' |
Beginning balance, Shares at Dec. 31, 2012 | ' | 1 | ' | ' | ' |
Limited Partner capital contributions | 7,586,650 | ' | ' | 7,586,650 | ' |
Limited Partner capital contributions, Shares | ' | 7,586.65 | ' | ' | ' |
Non-controlling interest contribution to consolidated entity | 550,000 | ' | ' | ' | 550,000 |
Offering expenses | -830,391 | ' | ' | -830,391 | ' |
Underwriting fees | -743,765 | ' | ' | -743,765 | ' |
Net income (loss) | -862,462 | ' | -8,682 | -859,475 | 5,695 |
Distributions | -53,706 | ' | ' | -53,706 | ' |
Distributions payable to General Partner | -537 | ' | -537 | ' | ' |
Redemption of initial Limited Partner contribution | -1,000 | ' | ' | -1,000 | ' |
Ending balance at Dec. 31, 2013 | $5,645,889 | ' | ($9,119) | $5,099,313 | $555,695 |
Ending balance, Shares at Dec. 31, 2013 | ' | 7,587.65 | ' | ' | ' |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flows (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Cash flows from operating activities: | ' |
Net loss | ($862,462) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' |
Accrued interest income | -26,344 |
Depreciation and amortization | 77,951 |
Change in operating assets and liabilities: | ' |
Other assets | -127,000 |
Accounts payable and accrued liabilites | 217,405 |
Unearned interest income | 82,024 |
Accrued interest | 25,755 |
Net cash used in operating activities | -612,671 |
Cash flows from investing activities: | ' |
Cash paid for purchase of equipment subject to operating leases | -6,276,754 |
Cash paid for initial direct costs | -332,500 |
Cash paid for collateralized loan receivable | -322,000 |
Cash paid for equipment notes receivable | -5,890,162 |
Repayment of equipment notes receivable | 261,243 |
Net cash used in investing activities | -12,560,173 |
Cash flows from financing activities: | ' |
Cash received from loan payable | 6,800,000 |
Cash received from non-controlling interest contribution in consolidated entity | 550,000 |
Cash received from Limited Partner capital contributions | 7,046,490 |
Cash paid for Limited Partner distributions | -53,706 |
Initial Limited Partner contribution redemption | -1,000 |
Cash paid for partner advances | -1,000 |
Cash paid for underwriting fees | -192,827 |
Cash paid for organizational and offering costs | -830,373 |
Net cash provided by financing activities | 13,317,584 |
Net increase in cash and cash equivalents | 144,740 |
Cash and cash equivalents, beginning of period | 1,600 |
Cash and cash equivalents, end of period | 146,340 |
Supplemental disclosure of non-cash investing activities: | ' |
Offering expenses paid by SQN Capital Management, LLC | 92,678 |
Debt assumed in lease purchase agreement | 8,541,339 |
Units issued as underwriting fee discount | 540,160 |
Dividend payable to General Partner | $537 |
Nature_of_Operations_and_Organ
Nature of Operations and Organization | 12 Months Ended | ||
Dec. 31, 2013 | |||
Nature of Operations and Organization [Abstract] | ' | ||
Nature of Operations and Organization | ' | ||
1 | Nature of Operations and Organization | ||
Organization — The SQN AIF IV, L.P. (the “Partnership”) was formed on August 10, 2012, as a Delaware limited partnership and is engaged in a single business segment, the ownership and investment in leased equipment and related financings which includes: (i) purchasing equipment and leasing it to third-party end users; (ii) providing equipment and other asset financing; (iii) acquiring equipment subject to lease and (iv) acquiring ownership rights (residual value interests) in leased equipment at lease expiration. The Partnership will terminate no later than December 31, 2036. | |||
During December 2013, the Partnership formed a special purpose entity SQN Echo LLC (“Echo”), a Limited Liability Company registered in the state of Delaware which is 80% owned by the Partnership and 20% by SQN Alternate Investment Fund III (“Fund III”), an affiliate. Fund III contributed $550,000 to purchase a 20% share of Echo which is presented as non-controlling interest on the accompanying consolidated financial statements. On December 20, 2013, Echo entered into an agreement with an unrelated third party for the purchase of two portfolios of leases for $17,800,000. The first portfolio consists of various types of equipment including material handling, semiconductor test and manufacturing equipment, computer, medical, and telecommunications equipment. The second portfolio consists of lease financings, which have been accounted for as loans receivable in the accompanying consolidated financial statements. Echo paid approximately $9,300,000 in cash and assumed approximately $8,500,000 in non-recourse equipment notes payable. | |||
The principal investment strategy of the Partnership is to invest in business-essential, revenue-producing (or cost-savings) equipment or other physical assets with high in-place value and long, relative to the investment term, economic life and project financings. The Partnership expects to achieve its investment strategy by making investments in equipment already subject to lease or originating equipment leases in such equipment, which will include: (i) purchasing equipment and leasing it to third-party end users; (ii) providing equipment and other asset and project financings; (iii) acquiring equipment subject to lease and (iv) acquiring ownership rights (residual value interests) in leased equipment at lease expiration. From time to time, the Partnership may also purchase equipment and sell it directly to its leasing customers. The Partnership may use other investment structures that its Investment Manager believes will provide the Partnership with an appropriate level of security, collateralization, and flexibility to optimize its return on its investment while protecting against downside risk. In many cases, the structure will include the Partnership holding title to or a priority or controlling position in the equipment or other asset. | |||
The General Partner of the Partnership is SQN AIF IV GP, LLC (the “General Partner”), a wholly-owned subsidiary of the Partnership’s Investment Manager, SQN Capital Management, LLC (the “Investment Manager”). Both the Partnership’s General Partner and its Investment Manager are Delaware limited liability companies. The General Partner manages and controls the day to day activities and operations of the Partnership, pursuant to the terms of the Partnership Agreement. The General Partner paid an aggregate capital contribution of $100 for a 1% interest in the Partnership’s income, losses and distributions. The Investment Manager makes all investment decisions and manages the investment portfolio of the Partnership. | |||
The Partnership’s Investment Manager made a cash payment to the Partnership of $1,000 for an initial Limited Partnership interest. The Partnership refunded the initial Limited Partner’s interest of $1,000 during early July 2013. | |||
The Partnership’s income, losses and distributions are allocated 99% to the Limited Partners and 1% to the General Partner until the Limited Partners have received total distributions equal to their capital contributions plus an 8% per year, compounded annually, cumulative return on their capital contributions. After such time, all income, losses and distributable cash will be allocated 80% to the Limited Partners and 20% to the General Partner. The Partnership is currently in the Offering and Operating Period. The Offering Period expires the earlier of raising $200,000,000 in limited partner contributions (200,000 units at $1,000 per unit) or April 2, 2015, which is two years from the date the Partnership was declared effective by the Securities and Exchange Commission (“SEC”). During the Operating Period the Partnership will invest most of the net proceeds from its offering in business-essential, revenue-producing (or cost-saving) equipment, other physical assets with substantial economic lives and, in many cases, associated revenue streams and project financings. The Operating Period begins on the date of the partnership’s initial closing, which occurred on May 29, 2013 and will last for three years unless extended at the sole discretion of the General Partner. The Liquidation Period, which tentatively begins three years after the start of the Operating Period, is the period in which the Partnership will sell its assets in the ordinary course of business and will last two years, unless it is extended, at the sole discretion of the General Partner. | |||
SQN Securities, LLC (“Securities”), a majority-owned subsidiary of the Investment Manager, is currently acting as the Partnership’s exclusive selling agent. The Partnership may engage additional selling agents in the future. The Partnership pays 3% of the gross proceeds of the offering (excluding proceeds, if any, the Partnership receives from the sale of its Units to the General Partner or its affiliates) to its selling agent or selling agents as an underwriting fee. In addition, the Partnership will pay a 7% sales commission to broker-dealers unaffiliated with our General Partner who will be selling our Units, on a best efforts basis. When Units are not sold by unaffiliated broker-dealers the 7% sales commission is not required to be paid. The Partnership applies the proceeds that would otherwise be payable as Sales Commission toward the purchase of additional fractional Units at $1,000 per Unit. The Partnership records an underwriting fee discount for the difference between the Unit price and cash selling price for these sales. On May 29, 2013, one investor paid $1,500,000 for Partnership Units and received 1,630.43 Units. The Partnership recorded the difference between the cash purchase price and the Unit price as an underwriting fee discount. | |||
During the Operating Period, the Partnership plans to make quarterly distributions of cash to the Limited Partners, if, in the opinion of the Partnership’s Investment Manager’s such distributions are in the Partnership’s best interests. Therefore, the amount and rate of cash distributions could vary and are not guaranteed. The targeted distribution rate is 6.5% annually, paid quarterly as 1.625%, of each Limited Partners’ capital contribution (pro-rated to the date of admission for each Limited Partner). On October 1, 2013, the Partnership made its first quarterly distribution to its limited partners totaling approximately $53,700. | |||
From May 29, 2013 through December 31, 2013, the Partnership admitted 84 Limited Partners with total capital contributions of $7,586,650 resulting in the sale of 7,586.65 Units. The Partnership received cash of $7,046,490 and applied $540,160 which would have otherwise been paid as sales commission to the purchase of an additional 540.16 Units. The Partnership paid or accrued an underwriting fee to Securities totaling $196,395. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||
Dec. 31, 2013 | |||
Summary of Significant Accounting Policies [Abstract] | ' | ||
Summary of Significant Accounting Policies | ' | ||
2 | Summary of Significant Accounting Policies | ||
Principles of Consolidation — The accompanying consolidated financial statements include the accounts of the Partnership and its subsidiaries, where the Partnership has the primary economic benefits of ownership. The Partnership’s consolidation policy requires the consolidation of entities where a controlling financial interest is held as well as the consolidation of variable interest entities in which the Partnership has the primary economic benefits. All material intercompany balances and transactions are eliminated in consolidation. | |||
Non-controlling interest represents the minority equity investment in SQN Echo, plus the minorities’ share of the net operating result and other components of equity relating to the non-controlling interest. | |||
Basis of presentation — The accompanying consolidated financial statements of the Partnership at December 31, 2013 and 2012 have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Since operations did not commence until 2013, the statement of operations for the year ended December 31, 2012 is not presented on the accompanying consolidated financial statements. | |||
Cash and cash equivalents — The Partnership considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents consist of funds maintained in checking and money market accounts maintained at financial institutions. | |||
The Partnership’s cash and cash equivalents are held principally at one financial institution and at times may exceed federally insured limits. The Partnership has placed these funds in high quality institution in order to minimize risk relating to exceeding insured limits. | |||
Credit risk — In the normal course of business, the Partnership is exposed to credit risk. Credit risk is the risk that the Partnerships’ counterparty to an agreement, at some point, either has an inability or unwillingness to make contractually required payments. The Partnership expects concentrations of credit risk with respect to lessees to be dispersed across different industry segments and different regions of the world. | |||
Asset impairments — The significant assets in the Partnership’s investment portfolio are periodically reviewed, no less frequently than annually or when indicators of impairment exist, to determine whether events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss is recognized only if the carrying amount of a long-lived asset is not recoverable and exceeds its fair value. If there is an indication of impairment, the Partnership estimates the future cash flows (undiscounted and without interest charges) expected from the use of the asset and its eventual disposition. Future cash flows are the future cash in-flows expected to be generated by an asset less the future out-flows expected to be necessary to obtain those in-flows. If an impairment is determined to exist, the impairment loss is measured as the amount by which the carrying value of a long-lived asset exceeds its fair value and is recorded in the statement of operations in the period the determination is made. The events or changes in circumstances that generally indicate that an asset may be impaired are, (i) the estimated fair value of the underlying equipment is less than its carrying value, (ii) the lessee is experiencing financial difficulties and (iii) it does not appear likely that the estimated proceeds from the disposition of the asset will be sufficient to satisfy the residual value in the asset. The preparation of the undiscounted cash flows requires the use of assumptions and estimates, including the level of future rents or receipts from the sale of the residual value investment, estimated downtime between re-leasing events, and the amount of re-leasing costs. The Investment Manager’s review for impairment will include a consideration of the existence of impairment indicators, including third party appraisals, published values for similar assets, recent transactions for similar assets, adverse changes in market conditions for specific asset types, and the occurrence of significant adverse changes in general industry and market conditions that could affect the fair value of the asset. | |||
Equipment Notes Receivable — Equipment notes receivable are reported in the Partnership’s balance sheets as the outstanding principal balance net of any unamortized deferred fees, premiums or discounts on purchased loans. Costs to originate loans, if any, are reported as other assets in the Partnership’s balance sheets. Income is recognized over the life of the note agreement. On certain equipment notes receivable, specific payment terms were reached requiring prepayments which resulted in the recognition of unearned interest income. Unearned income, discounts and premiums, if any, are amortized to interest income in the statements of operations using the effective interest rate method. Equipment notes receivable are generally placed in a non-accrual status when payments are more than 90 days past due. Additionally, the Investment Manager periodically reviews the creditworthiness of companies with payments outstanding less than 90 days. Based upon the Investment Manager’s judgment, accounts may be placed in a non-accrual status. Accounts on a non-accrual status are only returned to an accrual status when the account has been brought current and the Partnership believes recovery of the remaining unpaid receivable is probable. Revenue on non-accrual accounts is recognized only when cash has been received. | |||
Initial direct costs — The Partnership capitalizes initial direct costs associated with the origination and funding of lease assets. Initial direct costs include both internal costs (e.g., labor and overhead) and external fees incurred with the origination. These costs are amortized on a lease by lease basis based over the actual contract term of each lease using the effective interest rate method for finance leases and the straight-line method for operating leases. Upon disposal of the underlying lease assets, both the initial direct costs and the associated accumulated amortization are relieved. Costs related to leases that are not consummated are not eligible for capitalization as initial direct costs and are expensed as incurred as acquisition expense. | |||
Revenue recognition — The Partnership records revenue based upon the lease classification determined at the inception of the transaction and based upon the terms of the lease or when there are significant changes to the lease terms. | |||
The Partnership leases equipment to third parties and each such lease may be classified as either a finance lease or an operating lease. Initial direct costs are capitalized and amortized over the term of the related lease for a finance lease. For an operating lease, initial direct costs are included as a component of the cost of the equipment and depreciated. | |||
For finance leases, the Partnership records, at lease inception, the total minimum lease payments receivable from the lessee, the estimated unguaranteed residual value of the equipment upon lease termination, the initial direct costs, if any, related to the lease and the related unearned income. Unearned income represents the difference between the sum of the minimum lease payments receivable plus the estimated unguaranteed residual value, minus the cost of the leased equipment. Unearned income is recognized as finance income over the term of the lease using the effective interest rate method. | |||
For operating leases, rental income is recognized on the straight line basis over the lease term. Billed and uncollected operating lease receivables will be included in accounts receivable. Accounts receivable are stated at their estimated net realizable value. Rental income received in advance is the difference between the timing of the cash payments and the income recognized on the straight line basis. | |||
The Investment Manager has an investment committee that approves each new equipment lease, financing transaction, and lease acquisition. As part this process it determines the unguaranteed residual value, if any, to be used once the acquisition has been approved. The factors considered in determining the unguaranteed residual value include, but are not limited to, the creditworthiness of the potential lessee, the type of equipment being considered, how the equipment is integrated into the potential lessees’ business, the length of the lease and the industry in which the potential lessee operates. Unguaranteed residual values are reviewed for impairment in accordance with the Partnership’s policy relating to impairment review. | |||
Acquisition expense — Acquisition expense represents costs which include, but are not limited to, legal fees and expenses, travel and communication expenses, cost of appraisals, accounting fees and expenses, and miscellaneous expenses related to the selection and acquisition of leased equipment which are incurred by the Partnership under the terms of the Partnership Agreement, as amended. As these costs are not eligible for capitalization as initial direct costs, such amounts are expensed as incurred. | |||
Income taxes — As a partnership, no provision for income taxes is recorded since the liability for such taxes is that of each of the Partners rather than the Partnership. The Partnership’s income tax returns are subject to examination by the federal and state taxing authorities, and changes, if any, could adjust the individual income tax of the Partners. | |||
Uncertain tax positions — The Partnership has adopted the provisions of Accounting for Uncertainty in Income Taxes (“Uncertain Tax Position”). Uncertain Tax Position prescribes recognition thresholds that must be met before a tax position is recognized in the financial statements and provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. Under Uncertain Tax Position, an entity may only recognize or continue to recognize tax positions that meet a “more likely than not” threshold. The Partnership has evaluated its entity level tax position for the years ended December 31, 2013 and 2012, and does not expect any material adjustments to be made. The tax years 2013 and 2012 remains open to examination by the major taxing jurisdictions to which the Partnership is subject. | |||
Per Share Data — Net income or loss attributable to Limited Partners per weighted average number of limited partnership interests outstanding is calculated as follows; the net income or loss allocable to the Limited Partners divided by the weighted average number of limited partnership interests outstanding during the period. | |||
Foreign currency transactions — The Partnership has designated the United States of America dollar as the functional currency for the Partnership’s investments denominated in foreign currencies. Accordingly, certain assets and liabilities are translated at either the reporting period exchange rates or the historical exchange rates, revenues and expenses are translated at the average rate of exchange for the period, and all transaction gains or losses are reflected in the period’s results of operations. | |||
Use of estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the General Partner and Investment Manager to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates primarily include the determination of allowances for doubtful accounts, depreciation and amortization, impairment losses, estimated useful lives, and residual values. Actual results could differ from those estimates. | |||
Recent Accounting Pronouncements | |||
In March 2013, the FASB issued ASU 2013-07, “Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting.” The amendments require an entity to prepare its financial statements using the liquidation basis of accounting when liquidation is imminent. Liquidation is imminent when the likelihood is remote that the entity will return from liquidation and either (a) a plan for liquidation is approved by the person or persons with the authority to make such a plan effective and the likelihood is remote that the execution of the plan will be blocked by other parties or (b) a plan for liquidation is being imposed by other forces (for example, involuntary bankruptcy). If a plan for liquidation was specified in the entity’s governing documents from the entity’s inception (for example, limited-life entities), the entity should apply the liquidation basis of accounting only if the approved plan for liquidation differs from the plan for liquidation that was specified at the entity’s inception. The amendments require financial statements prepared using the liquidation basis of accounting to present relevant information about an entity’s expected resources in liquidation by measuring and presenting assets at the amount of the expected cash proceeds from liquidation. The entity should include in its presentation of assets any items it had not previously recognized under U.S. GAAP but that it expects to either sell in liquidation or use in settling liabilities (for example, trademarks). The amendments are effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. Entities should apply the requirements prospectively from the day that liquidation becomes imminent. Early adoption is permitted. The Partnership does not expect the adoption of ASU 2013-07 to have a material effect on its financial position or its results of operations. | |||
Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying consolidated financial statements. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Related Party Transactions [Abstract] | ' | ||||||
Related Party Transactions | ' | ||||||
3 | Related Party Transactions | ||||||
The General Partner is responsible for the day-to-day operations of the Partnership and the Investment Manager makes all investment decisions and manages the investment portfolio of the Partnership. The Partnership pays the General Partner an allowance for organizational and offering costs not to exceed 2% of all capital contributions received by the Partnership. Because organizational and offering expenses will be paid as and to the extent they are incurred, organizational and offering expenses may be drawn disproportionately to the gross proceeds of each closing. The General Partner also has a promotional interest in the Partnership equal to 20% of all distributed distributable cash, after the Partnership has provided an 8% cumulative return, compounded annually, to the Limited Partners on their capital contributions. The General Partner has a 1% interest in the profits, losses and distributions of the Partnership. The General Partner will initially receive 1% of all distributed distributable cash which was accrued for at December 31, 2013. | |||||||
During 2012, the General Partner made a $1,000 cash advance to the Partnership to pay for incidental costs. At December 31, 2012, this amount is shown as due to SQN AIF IV GP, LLC in the accompanying balance sheets. This amount was repaid during July 2013 and therefore has a $0 balance due as of December 31, 2013. | |||||||
The Partnership pays the Investment Manager during the Offering Period, Operating Period and the Liquidation Period a management fee equal to or the greater of, (i) 2.5% per annum of the aggregate offering proceeds, or (ii) $125,000, payable monthly, until such time as an amount equal to at least 15% of the Partnership’s Limited Partners’ capital contributions have been returned to the Limited Partners, after which the monthly management fee will equal 100% of the management fee as initially calculated above, less 1% for each additional 1% of the Partnership’s Limited Partners’ capital contributions returned to them, such amounts are measured on the last day of each month. The management fee is paid regardless of the performance of the fund and will be adjusted in the future to reflect the equity raised. For the year ended December 31, 2013, the Partnership paid $875,000 in management fee expense which is recorded in management fee — Investment Manager in the accompanying statements of operations. | |||||||
Prior to the Partnership admitting Limited Partners on May 29, 2013, any monies paid by the Investment Manager for offering expenses incurred on behalf of the Partnership, were not the responsibility of the Partnership due to the possibility that the Partnership may not admit Limited Partners. Until such time, these expenses were the responsibility of the General Partner. On May 29, 2013, the Partnership recorded a payable to the Investment Manager for offering expenses previously paid totaling $225,468 which was paid in 2013. | |||||||
Securities is a Delaware limited liability company and is majority-owned subsidiary of the Partnership’s Investment Manager. Securities in its capacity as the Partnership’s selling agent receives an underwriting fee of 3% of the gross proceeds from Limited Partners’ capital contributions (excluding proceeds, if any, the Partnership receives from the sale of the Partnership’s Units to the General Partner or its affiliates). While Securities is initially acting as the Partnership’s exclusive selling agent, the Partnership may engage additional selling agents in the future. | |||||||
For the year ended December 31, 2013, the Partnership incurred the following transactions with Securities: | |||||||
Year Ended | |||||||
31-Dec-13 | |||||||
Underwriting fees earned by Securities | $ | 196,395 | |||||
Payments by the Partnership to Securities | (185,598 | ) | |||||
Balance due to Securities | $ | 10,797 | |||||
For the year ended December 31, 2013, the Partnership incurred the following underwriting fee transactions: | |||||||
Year Ended | |||||||
31-Dec-13 | |||||||
Underwriting discount incurred by the Partnership | $ | 540,160 | |||||
Underwriting fees earned by Securities | 196,395 | ||||||
Fees paid to outside brokers | 7,210 | ||||||
Total underwriting fees | $ | 743,765 | |||||
Investment_in_Equipment_Subjec
Investment in Equipment Subject to Operating Leases | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Investment in Equipment Subject to Operating Leases [Abstract] | ' | ||||||||||||||
Investment in Equipment Subject to Operating Leases | ' | ||||||||||||||
5 | Investment in Equipment Subject to Operating Leases | ||||||||||||||
On December 20, 2013, Echo entered into a participation agreement with an unrelated third party for the purchase of two portfolios of leases with a combined total of $17,800,000 of assets. One of the portfolios consisted of approximately $11,200,000 of assets subject to operating leases. | |||||||||||||||
The composition of the equipment subject to operating leases in the Echo transaction as of December 31, 2013 is as follows: | |||||||||||||||
Description | Cost Basis | Accumulated | Net Book Value | ||||||||||||
Depreciation | |||||||||||||||
Agricultural equipment | $ | 653,458 | $ | 2,382 | $ | 651,076 | |||||||||
Computer equipment | 1,529,807 | 17,505 | 1,512,302 | ||||||||||||
Forklifts and fuels cells | 5,473,816 | 26,569 | 5,447,247 | ||||||||||||
Heavy equipment | 2,514,627 | 10,244 | 2,504,383 | ||||||||||||
Industrial | 466,618 | 2,135 | 464,483 | ||||||||||||
Machine tools | 556,686 | 2,943 | 553,743 | ||||||||||||
Medical | 32,476 | 120 | 32,356 | ||||||||||||
$ | 11,227,488 | $ | 61,898 | $ | 11,165,590 | ||||||||||
The Partnership records depreciation expense on equipment when the lease is classified as an operating lease. In order to calculate depreciation, the Partnership first determines the depreciable equipment cost, which is the cost less the estimated residual value. The estimated residual value is the estimate of the value of the equipment at lease termination. Depreciation expense is recorded by applying the straight-line method of depreciation to the depreciable equipment cost over the lease term. Depreciation expense for the year ended December 31, 2013 was $61,899. |
Equipment_Notes_Receivable
Equipment Notes Receivable | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Equipment Notes Receivable [Abstract] | ' | ||||||
Equipment Notes Receivable | ' | ||||||
6 | Equipment Notes Receivable | ||||||
Medical Equipment | |||||||
On June 28, 2013, the Partnership entered into a $150,000 Promissory Note to finance the purchase of medical equipment located in the Tennessee. The Promissory Note will be paid through 36 monthly installments of principal and interest of $5,100. The Promissory Note is secured by the medical equipment and other personal property located at the borrowers principal place of business. The Promissory Note is guaranteed personally by the officer of the borrower who will make all required note payments if the borrower is unable to perform under the Promissory Note. For the year ended December 31, 2013, the medical equipment note earned $9,988 of interest income. | |||||||
Mining Equipment | |||||||
On September 27, 2013, the Partnership entered into a loan facility with Andes Construction & Mining, Inc. (“Andes”) to provide financing in an amount up to $3,000,000. Andes is a Florida based company that builds, refurbishes and services mineral refining and mining equipment in the United States, Central and South America. The loan facility is secured by equipment that refines precious metals and other minerals. The Partnership advanced $2,500,000 to Andes during September 2013. The loan facility requires 48 monthly payments of principal and interest of $69,577 and a balloon payment of $500,000 in September 2017 which equates to an effective interest rate of 23.25%. For the year ended December 31, 2013, the mining equipment note earned $126,292 of interest income. The loan facility is scheduled to mature in September 2017. Andes’ obligations under the loan facility are also personally guaranteed by two majority shareholders of Andes. | |||||||
Manufacturing Equipment | |||||||
On October 15, 2013, the Partnership entered into a $300,000 loan facility with Pride Products, Inc. (“Pride”) secured by manufacturing equipment owned by Pride. Pride is a New Jersey based manufacturer and assembler of various consumer products. The loan facility is scheduled to be repaid in 29 equal monthly installments of $12,834. For the year ended December 31, 2013, the manufacturing equipment note earned $10,807 of interest income. Pride’s obligations under the loan facility are also personally guaranteed by a majority shareholder of Pride. | |||||||
The future maturities of the Partnership’s notes receivable at December 31, 2013 are as follows: | |||||||
Years ending December 31, | |||||||
2014 | $ | 478,271 | |||||
2015 | 645,590 | ||||||
2016 | 622,434 | ||||||
2017 | 946,605 | ||||||
$ | 2,692,900 |
Equipment_loan_receivable
Equipment loan receivable | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Equipment loan receivable [Abstract] | ' | |||||||||||
Equipment loan receivable | ' | |||||||||||
7 | Equipment loan receivable | |||||||||||
On December 20, 2013, Echo entered into an agreement with an unrelated third party for the purchase of two portfolios of leases for a combined total purchase price of $17,800,000. One of the portfolios consists of approximately $6,600,000 of equipment loans receivable. The loans accrue interest at rates ranging from 10%. The notes mature on various dates through October 2017. For the year ended December 31, 2013, the loans receivable earned $19,682 of interest income. | ||||||||||||
The composition of the equipment loans receivable in the Echo transaction as of December 31, 2013 is as follows: | ||||||||||||
Description | Maturity | Balance | ||||||||||
Date | ||||||||||||
Furniture and fixtures | 6/30/16 | $ | 36,860 | |||||||||
Fitness | 6/30/14 | 34,209 | ||||||||||
Computers | 6/30/14 | 104,008 | ||||||||||
Forklifts and fuels cells | 03/31/14 – 10/31/17 | 5,510,245 | ||||||||||
Industrial | 9/30/14 | 57,060 | ||||||||||
Machine tools | 9/1/14 | 42,221 | ||||||||||
Medical | 3/31/16 | 746,163 | ||||||||||
$ | 6,530,766 | |||||||||||
The future maturities of the Partnership’s loans receivable at December 31, 2013 are as follows: | ||||||||||||
Years ending December 31, | ||||||||||||
2014 | $ | 1,731,048 | ||||||||||
2015 | 1,511,118 | |||||||||||
2016 | 1,422,178 | |||||||||||
2017 | 1,060,421 | |||||||||||
2018 | 736,459 | |||||||||||
2019 | 69,542 | |||||||||||
$ | 6,530,766 |
Collateralized_Loan_Receivable
Collateralized Loan Receivable | 12 Months Ended | ||
Dec. 31, 2013 | |||
Collateralized Loan Receivable [Abstract] | ' | ||
Collateralized Loan Receivable | ' | ||
8 | Collateralized Loan Receivable | ||
On November 27, 2013, the Partnership entered into a loan agreement with an unrelated third party that allows for the borrower to receive a total of $500,000 in advances from the Partnership. The maximum outstanding amount on any date is the lesser of $500,000 and 50% of the borrower’s eligible receivables due within 90 days of the advance date. The loan accrues interest at 15% per annum and is collateralized by all of the assets of the borrower. As of December 31, 2013, the Partnership had advanced the borrower a total of $322,000, all of which remained outstanding at year end. Subsequent to December 31, 2013, the Partnership received approximately $641,000 from the borrower and also advanced an additional $756,000 to the borrower. |
Equipment_Notes_Payable
Equipment Notes Payable | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Equipment Notes Payable [Abstract] | ' | ||||||
Equipment Notes Payable | ' | ||||||
9 | Equipment Notes Payable | ||||||
In connection with the Echo transaction, Echo assumed approximately $8,500,000 in non-recourse debt in connection with the acquisition of a portfolio of assets subject to lease. The debt is held by multiple lenders with interest rates ranging from 2.75% to 6.75% and maturity dates through 2018. The loan is secured by the underlying assets of each lease. | |||||||
The future maturities of the Partnership’s equipment notes payable at December 31, 2013 are as follows: | |||||||
Years ending December 31, | |||||||
2014 | $ | 3,549,741 | |||||
2015 | 2,668,240 | ||||||
2016 | 1,675,292 | ||||||
2017 | 608,524 | ||||||
2018 | 39,542 | ||||||
$ | 8,541,339 | ||||||
Loan_Payable
Loan Payable | 12 Months Ended | ||
Dec. 31, 2013 | |||
Loan Payable [Abstract] | ' | ||
Loan Payable | ' | ||
10 | Loan Payable | ||
In connection with the Echo transaction, the Partnership borrowed $6,800,000 with interest accruing at 10% per annum through February 28, 2014 then at 8.9% per annum when the Partnership made a one-time $600,000 payment which was applied to principal. The lender, as collateral, has a first priority security interest in all of the leased assets acquired by Echo. The lender has the right to receive 100% of the cash proceeds from the leased assets until the loan is repaid in full. Beginning January 1, 2014 and monthly thereafter, all of the cash received from these leased assets are applied first against interest with any excess applied against the outstanding principal balance. There is no stated repayment term for the principal. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Fair Value Measurements [Abstract] | ' | |||||||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||||||
11 | Fair Value Measurements | |||||||||||||||||||||||
The Partnership follows the fair value guidance in ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”) for items that are required to be measured at fair value. ASC 820’s valuation techniques are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect the Partnership’s market assumptions. ASC 820 classifies these inputs into the following hierarchy: | ||||||||||||||||||||||||
Level 1 Inputs — Quoted prices for identical instruments in active markets. | ||||||||||||||||||||||||
Level 2 Inputs — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. | ||||||||||||||||||||||||
Level 3 Inputs — Instruments with primarily unobservable value drivers. | ||||||||||||||||||||||||
Fair value information with respect to the Partnership’s leased assets and liabilities are not separately provided for since ASC 820 does not require fair value disclosures of leasing arrangements. | ||||||||||||||||||||||||
The Partnership’s carrying value of cash and cash equivalents, accounts payable and accrued liabilities, due to SQN AIF GP, LLC, due to SQN Securities, LLC and due to SQN Capital Management LLC, approximate fair value due to their short term until maturity. | ||||||||||||||||||||||||
The following is a reconciliation of the beginning and ending balances of the fair value of financial instruments calculated on a recurring basis using significant unobservable inputs (Level 3) during the year ended December 31: | ||||||||||||||||||||||||
Equipment Notes | Equipment Loan | Collateralized Loan | Equipment | Loan | ||||||||||||||||||||
Receivable | Receivable | Receivable | Notes | Payable | ||||||||||||||||||||
Payable | ||||||||||||||||||||||||
Beginning balance, January 1, 2013 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Issuance of additional notes | 2,950,000 | 6,530,766 | 322,000 | 8,541,339 | 6,800,000 | |||||||||||||||||||
Total gains (losses) included in earnings: | ||||||||||||||||||||||||
Interest income | 4,142 | 19,682 | 2,519 | — | — | |||||||||||||||||||
Interest expense | — | — | — | — | 25,755 | |||||||||||||||||||
Repayment of notes and accrued interest | (261,242 | ) | — | — | — | — | ||||||||||||||||||
Unrealized appreciation (depreciation) | 55,072 | — | 8,968 | — | — | |||||||||||||||||||
Estimated fair value, December 31, 2013 | $ | 2,747,972 | $ | 6,550,448 | $ | 333,487 | $ | 8,541,339 | $ | 6,825,755 | ||||||||||||||
Income_Tax_Reconciliation_unau
Income Tax Reconciliation (unaudited) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Income Tax Reconciliation [Abstract] | ' | ||||
Income Tax Reconciliation | ' | ||||
12 | Income Tax Reconciliation (unaudited) | ||||
As of December 31, 2013 and 2012, total Partners’ equity attributable to the Partnership included in the consolidated financial statements was $5,090,192 and $1,100, respectively. As of December 31, 2013 and 2012, total Partners’ equity for federal income tax purposes was $5,067,949 and $0. The primary difference was organizational and offering expenses and distribution expenses which is a reduction in Limited Partners’ capital accounts for financial reporting purposes but not for federal income tax reporting purposes and differences in depreciation and amortization for financial reporting purposes and federal income tax purposes. | |||||
The following table reconciles the net loss for financial statement reporting purposes to the net income for federal income purposes for the year ended December 31, 2013: | |||||
For the Year Ended | |||||
31-Dec-13 | |||||
Net loss per consolidated financial statements | $ | (868,157 | ) | ||
Net income from non-includable U.S. entities | (28,478 | ) | |||
Income attributable to non-controlling interest | 5,696 | ||||
Organizational costs | 14,500 | ||||
SQN Echo LLC | (32,603 | ) | |||
Unearned interest income | 82,024 | ||||
Net income for federal income tax purposes | $ | (827,018 | ) | ||
Indemnifications
Indemnifications | 12 Months Ended | ||
Dec. 31, 2013 | |||
Indemnifications [Abstract] | ' | ||
Indemnifications | ' | ||
13 | Indemnifications | ||
The Partnership enters into contracts that contain a variety of indemnifications. The Partnership’s maximum exposure under these arrangements is not known. | |||
In the normal course of business, the Partnership enters into contracts of various types, including lease contracts, contracts for the sale or purchase of lease assets, and management contracts. It is prevalent industry practice for most contracts of any significant value to include provisions that each of the contracting parties, in addition to assuming liability for breaches of the representations, warranties, and covenants that are part of the underlying contractual obligations, to also assume an obligation to indemnify and hold the other contractual party harmless for such breaches, and for harm caused by such party’s gross negligence and willful misconduct, including, in certain instances, certain costs and expenses arising from the contract. Generally, to the extent these contracts are performed in the ordinary course of business under the reasonable business judgment of the General Partner and the Investment Manager, no liability will arise as a result of these provisions. The General Partner and Investment Manager knows of no facts or circumstances that would make the Partnership’s contractual commitments outside standard mutual covenants applicable to commercial transactions between businesses. Accordingly, the Partnership believes that these indemnification obligations are made in the ordinary course of business as part of standard commercial and industry practice, and that any potential liability under the Partnership’s similar commitments is remote. Should any such indemnification obligation become payable, the Partnership would separately record and/or disclose such liability in accordance with accounting principles generally accepted in the United States of America. |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data (unaudited) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Selected Quarterly Financial Information [Abstract] | ' | |||||||||||||||||||||||
Selected Quarterly Financial Data (unaudited) | ' | |||||||||||||||||||||||
14 | Selected Quarterly Financial Data (unaudited) | |||||||||||||||||||||||
The following table is a summary of selected financial data, by quarter: | ||||||||||||||||||||||||
Quarterly Information (unaudited) | Year Ended | |||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | 2013 | ||||||||||||||||||||
Total revenue | $ | — | $ | 1,129 | $ | 9,784 | $ | 287,851 | $ | 298,764 | ||||||||||||||
Net loss allocable to | $ | — | $ | (159,411 | ) | $ | (389,790 | ) | $ | (310,276 | ) | $ | (859,477 | ) | ||||||||||
Limited Partners | ||||||||||||||||||||||||
Weighted average number of | — | 1,687.56 | 2,589.39 | 6,075.97 | 3,940.39 | |||||||||||||||||||
limited partnership interests | ||||||||||||||||||||||||
outstanding | ||||||||||||||||||||||||
Net loss attributable to | $ | — | $ | (94.46 | ) | $ | (150.53 | ) | $ | (51.07 | ) | $ | (218.12 | ) | ||||||||||
Limited Partners per weighted | ||||||||||||||||||||||||
average number of limited | ||||||||||||||||||||||||
partnership | ||||||||||||||||||||||||
Business_Concentrations
Business Concentrations | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Business Concentrations [Abstract] | ' | ||||||||||||
Business Concentrations | ' | ||||||||||||
15 | Business Concentrations | ||||||||||||
Significant concentrations in regards to the number of the Partnership’s types of investments at December 31, 2013 were as follows: | |||||||||||||
2013 | |||||||||||||
# | % | ||||||||||||
Operating leases | A | 33 | % | ||||||||||
B | 16 | % | |||||||||||
Equipment notes receivable | C | 85 | % | ||||||||||
D | 10 | % | |||||||||||
Investment in SQN Echo LLC | E | 10 | % | ||||||||||
F | 11 | % | |||||||||||
G | 14 | % | |||||||||||
H | 27 | % | |||||||||||
Significant concentrations in regards to the number of the Partnership’s investments and related revenue streams for the year ended December 31, 2013 were as follows: | |||||||||||||
2013 | |||||||||||||
# | % | ||||||||||||
Rental | — | — | |||||||||||
Interest | 1 | 80 | % |
Commitments_and_contingencies
Commitments and contingencies | 12 Months Ended | ||
Dec. 31, 2013 | |||
Indemnifications [Abstract] | ' | ||
Commitments and contingencies | ' | ||
16 | Commitments and contingencies | ||
On December 18, 2013 the Partnership entered into a forward purchase agreement with an unrelated lender. According to the agreement, the Partnership is obligated to purchase a promissory note secured by the brake manufacturing equipment with an aggregate principal amount of $432,000 prior to April 15, 2014. The promissory note accrues interest at 12.5% per annum and matures in January 2018. |
Subsequent_Events
Subsequent Events | 12 Months Ended | ||
Dec. 31, 2013 | |||
Subsequent Events [Abstract] | ' | ||
Subsequent Events | ' | ||
17 | Subsequent Events | ||
Distribution | |||
In January 2014, the Partnership paid a distribution of $100,566 to its Limited Partners. | |||
Contributions | |||
Subsequent to December 31, 2013, the Partnership admitted 45 partners and issued 2,941.12 units for total capital contribution of $2,768,080. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Summary of Significant Accounting Policies [Abstract] | ' |
Principles of Consolidation | ' |
Principles of Consolidation — The accompanying consolidated financial statements include the accounts of the Partnership and its subsidiaries, where the Partnership has the primary economic benefits of ownership. The Partnership’s consolidation policy requires the consolidation of entities where a controlling financial interest is held as well as the consolidation of variable interest entities in which the Partnership has the primary economic benefits. All material intercompany balances and transactions are eliminated in consolidation. | |
Non-controlling interest represents the minority equity investment in SQN Echo, plus the minorities’ share of the net operating result and other components of equity relating to the non-controlling interest. | |
Basis of presentation | ' |
Basis of presentation — The accompanying consolidated financial statements of the Partnership at December 31, 2013 and 2012 have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Since operations did not commence until 2013, the statement of operations for the year ended December 31, 2012 is not presented on the accompanying consolidated financial statements. | |
Cash and cash equivalents | ' |
Cash and cash equivalents — The Partnership considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents consist of funds maintained in checking and money market accounts maintained at financial institutions. | |
The Partnership’s cash and cash equivalents are held principally at one financial institution and at times may exceed federally insured limits.The Partnership has placed these funds in high quality institution in order to minimize risk relating to exceeding insured limits. | |
Credit risk | ' |
Credit risk — In the normal course of business, the Partnership is exposed to credit risk. Credit risk is the risk that the Partnerships’ counterparty to an agreement, at some point, either has an inability or unwillingness to make contractually required payments. The Partnership expects concentrations of credit risk with respect to lessees to be dispersed across different industry segments and different regions of the world. | |
Asset impairments | ' |
Asset impairments — The significant assets in the Partnership’s investment portfolio are periodically reviewed, no less frequently than annually or when indicators of impairment exist, to determine whether events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss is recognized only if the carrying amount of a long-lived asset is not recoverable and exceeds its fair value. If there is an indication of impairment, the Partnership estimates the future cash flows (undiscounted and without interest charges) expected from the use of the asset and its eventual disposition. Future cash flows are the future cash in-flows expected to be generated by an asset less the future out-flows expected to be necessary to obtain those in-flows. If an impairment is determined to exist, the impairment loss is measured as the amount by which the carrying value of a long-lived asset exceeds its fair value and is recorded in the statement of operations in the period the determination is made. The events or changes in circumstances that generally indicate that an asset may be impaired are, (i) the estimated fair value of the underlying equipment is less than its carrying value, (ii) the lessee is experiencing financial difficulties and (iii) it does not appear likely that the estimated proceeds from the disposition of the asset will be sufficient to satisfy the residual value in the asset. The preparation of the undiscounted cash flows requires the use of assumptions and estimates, including the level of future rents or receipts from the sale of the residual value investment, estimated downtime between re-leasing events, and the amount of re-leasing costs. The Investment Manager’s review for impairment will include a consideration of the existence of impairment indicators, including third party appraisals, published values for similar assets, recent transactions for similar assets, adverse changes in market conditions for specific asset types, and the occurrence of significant adverse changes in general industry and market conditions that could affect the fair value of the asset. | |
Equipment Note Receivable | ' |
Equipment Notes Receivable — Equipment notes receivable are reported in the Partnership’s balance sheets as the outstanding principal balance net of any unamortized deferred fees, premiums or discounts on purchased loans. Costs to originate loans, if any, are reported as other assets in the Partnership’s balance sheets. Income is recognized over the life of the note agreement. On certain equipment notes receivable, specific payment terms were reached requiring prepayments which resulted in the recognition of unearned interest income. Unearned income, discounts and premiums, if any, are amortized to interest income in the statements of operations using the effective interest rate method. Equipment notes receivable are generally placed in a non-accrual status when payments are more than 90 days past due. Additionally, the Investment Manager periodically reviews the creditworthiness of companies with payments outstanding less than 90 days. Based upon the Investment Manager’s judgment, accounts may be placed in a non-accrual status. Accounts on a non-accrual status are only returned to an accrual status when the account has been brought current and the Partnership believes recovery of the remaining unpaid receivable is probable. Revenue on non-accrual accounts is recognized only when cash has been received. | |
Initial direct costs | ' |
Initial direct costs — The Partnership capitalizes initial direct costs associated with the origination and funding of lease assets. Initial direct costs include both internal costs (e.g., labor and overhead) and external fees incurred with the origination. These costs are amortized on a lease by lease basis based over the actual contract term of each lease using the effective interest rate method for finance leases and the straight-line method for operating leases. Upon disposal of the underlying lease assets, both the initial direct costs and the associated accumulated amortization are relieved. Costs related to leases that are not consummated are not eligible for capitalization as initial direct costs and are expensed as incurred as acquisition expense. | |
Revenue recognition | ' |
Revenue recognition — The Partnership records revenue based upon the lease classification determined at the inception of the transaction and based upon the terms of the lease or when there are significant changes to the lease terms. | |
The Partnership leases equipment to third parties and each such lease may be classified as either a finance lease or an operating lease. Initial direct costs are capitalized and amortized over the term of the related lease for a finance lease. For an operating lease, initial direct costs are included as a component of the cost of the equipment and depreciated. | |
For finance leases, the Partnership records, at lease inception, the total minimum lease payments receivable from the lessee, the estimated unguaranteed residual value of the equipment upon lease termination, the initial direct costs, if any, related to the lease and the related unearned income. Unearned income represents the difference between the sum of the minimum lease payments receivable plus the estimated unguaranteed residual value, minus the cost of the leased equipment. Unearned income is recognized as finance income over the term of the lease using the effective interest rate method. | |
For operating leases, rental income is recognized on the straight line basis over the lease term. Billed and uncollected operating lease receivables will be included in accounts receivable. Accounts receivable are stated at their estimated net realizable value. Rental income received in advance is the difference between the timing of the cash payments and the income recognized on the straight line basis. | |
The Investment Manager has an investment committee that approves each new equipment lease, financing transaction, and lease acquisition. As part this process it determines the unguaranteed residual value, if any, to be used once the acquisition has been approved. The factors considered in determining the unguaranteed residual value include, but are not limited to, the creditworthiness of the potential lessee, the type of equipment being considered, how the equipment is integrated into the potential lessees’ business, the length of the lease and the industry in which the potential lessee operates. Unguaranteed residual values are reviewed for impairment in accordance with the Partnership’s policy relating to impairment review. | |
Acquisition expense | ' |
Acquisition expense — Acquisition expense represents costs which include, but are not limited to, legal fees and expenses, travel and communication expenses, cost of appraisals, accounting fees and expenses, and miscellaneous expenses related to the selection and acquisition of leased equipment which are incurred by the Partnership under the terms of the Partnership Agreement, as amended. As these costs are not eligible for capitalization as initial direct costs, such amounts are expensed as incurred. | |
Income taxes | ' |
Income taxes — As a partnership, no provision for income taxes is recorded since the liability for such taxes is that of each of the Partners rather than the Partnership. The Partnership’s income tax returns are subject to examination by the federal and state taxing authorities, and changes, if any, could adjust the individual income tax of the Partners. | |
Uncertain tax positions | ' |
Uncertain tax positions — The Partnership has adopted the provisions of Accounting for Uncertainty in Income Taxes (“Uncertain Tax Position”). Uncertain Tax Position prescribes recognition thresholds that must be met before a tax position is recognized in the financial statements and provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. Under Uncertain Tax Position, an entity may only recognize or continue to recognize tax positions that meet a “more likely than not” threshold. The Partnership has evaluated its entity level tax position for the years ended December 31, 2013 and 2012, and does not expect any material adjustments to be made. The tax years 2013 and 2012 remains open to examination by the major taxing jurisdictions to which the Partnership is subject. | |
Per Share Data | ' |
Per Share Data — Net income or loss attributable to Limited Partners per weighted average number of limited partnership interests outstanding is calculated as follows; the net income or loss allocable to the Limited Partners divided by the weighted average number of limited partnership interests outstanding during the period. | |
Foreign currency transactions | ' |
Foreign currency transactions — The Partnership has designated the United States of America dollar as the functional currency for the Partnership’s investments denominated in foreign currencies. Accordingly, certain assets and liabilities are translated at either the reporting period exchange rates or the historical exchange rates, revenues and expenses are translated at the average rate of exchange for the period, and all transaction gains or losses are reflected in the period’s results of operations. | |
Use of estimates | ' |
Use of estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the General Partner and Investment Manager to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates primarily include the determination of allowances for doubtful accounts, depreciation and amortization, impairment losses, estimated useful lives, and residual values. Actual results could differ from those estimates. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In March 2013, the FASB issued ASU 2013-07, “Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting.” The amendments require an entity to prepare its financial statements using the liquidation basis of accounting when liquidation is imminent. Liquidation is imminent when the likelihood is remote that the entity will return from liquidation and either (a) a plan for liquidation is approved by the person or persons with the authority to make such a plan effective and the likelihood is remote that the execution of the plan will be blocked by other parties or (b) a plan for liquidation is being imposed by other forces (for example, involuntary bankruptcy). If a plan for liquidation was specified in the entity’s governing documents from the entity’s inception (for example, limited-life entities), the entity should apply the liquidation basis of accounting only if the approved plan for liquidation differs from the plan for liquidation that was specified at the entity’s inception. The amendments require financial statements prepared using the liquidation basis of accounting to present relevant information about an entity’s expected resources in liquidation by measuring and presenting assets at the amount of the expected cash proceeds from liquidation. The entity should include in its presentation of assets any items it had not previously recognized under U.S. GAAP but that it expects to either sell in liquidation or use in settling liabilities (for example, trademarks). The amendments are effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. Entities should apply the requirements prospectively from the day that liquidation becomes imminent. Early adoption is permitted. The Partnership does not expect the adoption of ASU 2013-07 to have a material effect on its financial position or its results of operations. | |
Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying consolidated financial statements. |
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Related Party Transactions [Abstract] | ' | ||||||
Schedule of related party transactions incurred partnership with securities | ' | ||||||
Year Ended | |||||||
31-Dec-13 | |||||||
Underwriting fees earned by Securities | $ | 196,395 | |||||
Payments by the Partnership to Securities | (185,598 | ) | |||||
Balance due to Securities | $ | 10,797 | |||||
Schedule of related party transactions incurred partnership with underwriting fees | ' | ||||||
Year Ended | |||||||
31-Dec-13 | |||||||
Underwriting discount incurred by the Partnership | $ | 540,160 | |||||
Underwriting fees earned by Securities | 196,395 | ||||||
Fees paid to outside brokers | 7,210 | ||||||
Total underwriting fees | $ | 743,765 | |||||
Investment_in_Equipment_Subjec1
Investment in Equipment Subject to Operating Leases (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Investment in Equipment Subject to Operating Leases [Abstract] | ' | ||||||||||||||
Leases subject to operating leases | ' | ||||||||||||||
Description | Cost Basis | Accumulated | Net Book Value | ||||||||||||
Depreciation | |||||||||||||||
Agricultural equipment | $ | 653,458 | $ | 2,382 | $ | 651,076 | |||||||||
Computer equipment | 1,529,807 | 17,505 | 1,512,302 | ||||||||||||
Forklifts and fuels cells | 5,473,816 | 26,569 | 5,447,247 | ||||||||||||
Heavy equipment | 2,514,627 | 10,244 | 2,504,383 | ||||||||||||
Industrial | 466,618 | 2,135 | 464,483 | ||||||||||||
Machine tools | 556,686 | 2,943 | 553,743 | ||||||||||||
Medical | 32,476 | 120 | 32,356 | ||||||||||||
$ | 11,227,488 | $ | 61,898 | $ | 11,165,590 | ||||||||||
Equipment_Notes_Receivable_Tab
Equipment Notes Receivable (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Equipment Notes Receivable [Abstract] | ' | ||||||
Schedule of future maturities of the Promissory Note | ' | ||||||
Years ending December 31, | |||||||
2014 | $ | 478,271 | |||||
2015 | 645,590 | ||||||
2016 | 622,434 | ||||||
2017 | 946,605 | ||||||
$ | 2,692,900 | ||||||
Equipment_loan_receivable_Tabl
Equipment loan receivable (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Equipment loan receivable [Abstract] | ' | |||||||||||
Schedule of Loan Receivable | ' | |||||||||||
Description | Maturity | Balance | ||||||||||
Date | ||||||||||||
Furniture and fixtures | 6/30/16 | $ | 36,860 | |||||||||
Fitness | 6/30/14 | 34,209 | ||||||||||
Computers | 6/30/14 | 104,008 | ||||||||||
Forklifts and fuels cells | 03/31/14 – 10/31/17 | 5,510,245 | ||||||||||
Industrial | 9/30/14 | 57,060 | ||||||||||
Machine tools | 9/1/14 | 42,221 | ||||||||||
Medical | 3/31/16 | 746,163 | ||||||||||
$ | 6,530,766 | |||||||||||
Future maturities of loans receivable | ' | |||||||||||
Years ending December 31, | ||||||||||||
2014 | $ | 1,731,048 | ||||||||||
2015 | 1,511,118 | |||||||||||
2016 | 1,422,178 | |||||||||||
2017 | 1,060,421 | |||||||||||
2018 | 736,459 | |||||||||||
2019 | 69,542 | |||||||||||
$ | 6,530,766 |
Equipment_Notes_Payable_Tables
Equipment Notes Payable (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Equipment Notes Payable [Abstract] | ' | ||||||
Schedule of maturities of partnership's equipment notes payable | ' | ||||||
Years ending December 31, | |||||||
2014 | $ | 3,549,741 | |||||
2015 | 2,668,240 | ||||||
2016 | 1,675,292 | ||||||
2017 | 608,524 | ||||||
2018 | 39,542 | ||||||
$ | 8,541,339 | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Fair Value Measurements [Abstract] | ' | |||||||||||||||||||||||
Schedule of assets measured at fair value on a recurring basis | ' | |||||||||||||||||||||||
Equipment Notes | Equipment Loan | Collateralized Loan | Equipment | Loan | ||||||||||||||||||||
Receivable | Receivable | Receivable | Notes | Payable | ||||||||||||||||||||
Payable | ||||||||||||||||||||||||
Beginning balance, January 1, 2013 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Issuance of additional notes | 2,950,000 | 6,530,766 | 322,000 | 8,541,339 | 6,800,000 | |||||||||||||||||||
Total gains (losses) included in earnings: | ||||||||||||||||||||||||
Interest income | 4,142 | 19,682 | 2,519 | — | — | |||||||||||||||||||
Interest expense | — | — | — | — | 25,755 | |||||||||||||||||||
Repayment of notes and accrued interest | (261,242 | ) | — | — | — | — | ||||||||||||||||||
Unrealized appreciation (depreciation) | 55,072 | — | 8,968 | — | — | |||||||||||||||||||
Estimated fair value, December 31, 2013 | $ | 2,747,972 | $ | 6,550,448 | $ | 333,487 | $ | 8,541,339 | $ | 6,825,755 | ||||||||||||||
Income_Tax_Reconciliation_unau1
Income Tax Reconciliation (unaudited) (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Income Tax Reconciliation [Abstract] | ' | ||||
Schedule of net loss for financial statement reporting purposes to the net loss for federal income purposes | ' | ||||
For the Year Ended | |||||
31-Dec-13 | |||||
Net loss per consolidated financial statements | $ | (868,157 | ) | ||
Net income from non-includable U.S. entities | (28,478 | ) | |||
Income attributable to non-controlling interest | 5,696 | ||||
Organizational costs | 14,500 | ||||
SQN Echo LLC | (32,603 | ) | |||
Unearned interest income | 82,024 | ||||
Net income for federal income tax purposes | $ | (827,018 | ) | ||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Selected Quarterly Financial Information [Abstract] | ' | |||||||||||||||||||||||
Schedule of Quarterly Financial Data | ' | |||||||||||||||||||||||
Quarterly Information (unaudited) | Year Ended | |||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | 2013 | ||||||||||||||||||||
Total revenue | $ | — | $ | 1,129 | $ | 9,784 | $ | 287,851 | $ | 298,764 | ||||||||||||||
Net loss allocable to | $ | — | $ | (159,411 | ) | $ | (389,790 | ) | $ | (310,276 | ) | $ | (859,477 | ) | ||||||||||
Limited Partners | ||||||||||||||||||||||||
Weighted average number of | — | 1,687.56 | 2,589.39 | 6,075.97 | 3,940.39 | |||||||||||||||||||
limited partnership interests | ||||||||||||||||||||||||
outstanding | ||||||||||||||||||||||||
Net loss attributable to | $ | — | $ | (94.46 | ) | $ | (150.53 | ) | $ | (51.07 | ) | $ | (218.12 | ) | ||||||||||
Limited Partners per weighted | ||||||||||||||||||||||||
average number of limited | ||||||||||||||||||||||||
partnership | ||||||||||||||||||||||||
Business_Concentrations_Tables
Business Concentrations (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Business Concentrations [Abstract] | ' | ||||||||||||
Schedule significant concentrations in regards to the number of the Partnership's types of investments | ' | ||||||||||||
2013 | |||||||||||||
# | % | ||||||||||||
Operating leases | A | 33 | % | ||||||||||
B | 16 | % | |||||||||||
Equipment notes receivable | C | 85 | % | ||||||||||
D | 10 | % | |||||||||||
Investment in SQN Echo LLC | E | 10 | % | ||||||||||
F | 11 | % | |||||||||||
G | 14 | % | |||||||||||
H | 27 | % | |||||||||||
Schedule of partnership investments and related revenue in significant concentrations | ' | ||||||||||||
2013 | |||||||||||||
# | % | ||||||||||||
Rental | — | — | |||||||||||
Interest | 1 | 80 | % |
Nature_of_Operations_and_Organ1
Nature of Operations and Organization (Details) (USD $) | 0 Months Ended | 12 Months Ended | |
29-May-13 | Dec. 31, 2013 | Dec. 31, 2012 | |
Partnerships | LimitedPartners | ||
Portfolio | |||
Partnerships | |||
Nature of Operations and Organization (Textual) | ' | ' | ' |
Number of portfolios | ' | 2 | ' |
Non-recourse debt for lease | ' | $8,541,339 | ' |
Percentage represents the general partner's interest in income, losses and distributions | ' | 1.00% | ' |
Capital contribution of general partners | ' | 100 | ' |
Initial partnership interest refunded during early July 2013 | ' | 1,000 | ' |
Maximum Limited Partner Contributions | ' | 200,000,000 | ' |
Initial Limited Partner Cash Capital Capitalization | ' | 1,000 | ' |
Percentage represents Limited Partners cumulative return compounded annually on capital contributions | ' | 8.00% | ' |
Description of limited partnership interests | ' | 'The Partnership is currently in the Offering and Operating Period, which expires the earlier of raising $200,000,000 in limited partner contributions (200,000 units at $1,000 per unit) or April 2, 2015, which is two years from the date the Partnership was declared effective by the Securities and Exchange Commission ("SEC") | ' |
Minimum period of partnership activities | ' | '7 years | ' |
Underwriting fee percentage of gross proceeds of offering | ' | 3.00% | ' |
Targeted distribution rate of cash distribution, annual basis | ' | 6.50% | ' |
Targeted distribution rate of cash distribution, quarterly basis | ' | 1.63% | ' |
Targeted distribution of cash distribution | ' | 53,700 | ' |
Number of limited partners | ' | 84 | ' |
Cash received | 7,046,490 | 100 | ' |
Underwriting fee discount | ' | 540,160 | ' |
Total capital contribution | ' | 7,586,650 | ' |
Cash selling price for units | ' | 1,000 | ' |
Amount paid by investor for partnership units | 1,500,000 | ' | ' |
Number of units received | 1,631 | 541 | ' |
Percentage of commissions payable to broker dealers | ' | 7.00% | ' |
Limited Liability Company [Member] | ' | ' | ' |
Nature of Operations and Organization (Textual) | ' | ' | ' |
Number of portfolios | ' | 2 | ' |
Lease payment | ' | 17,800,000 | ' |
Cash payment for lease | ' | 9,300,000 | ' |
Non-recourse debt for lease | ' | 8,500,000 | ' |
General Partner [Member] | ' | ' | ' |
Nature of Operations and Organization (Textual) | ' | ' | ' |
Ownership Percentage | ' | 20.00% | ' |
Purchase consideration | ' | $550,000 | ' |
Purchase of share pecentage | ' | 20.00% | ' |
Percentage of partnership income losses and distributions allocation to partners | ' | 1.00% | ' |
Percentage of income and loss distributable cash allocation to partner | ' | 20.00% | ' |
Limited Partner [Member] | ' | ' | ' |
Nature of Operations and Organization (Textual) | ' | ' | ' |
Ownership Percentage | ' | 80.00% | ' |
Percentage of partnership income losses and distributions allocation to partners | ' | 99.00% | ' |
Percentage of income and loss distributable cash allocation to partner | ' | 80.00% | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Subsidiaries [Member] | Subsidiaries [Member] | ||
Underwriting fees earned by Securities | $196,395 | ' | ' |
Payments by the Partnership to Securities | -185,598 | ' | ' |
Balance due to Securities | ' | $10,797 | ' |
Related_Party_Transactions_Det1
Related Party Transactions (Details 1) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Units issued as underwriting fee discount | $540,160 |
Underwriting fees earned by Securities | 196,395 |
Fees paid to outside brokers | 7,210 |
Underwriting Fees | ($743,765) |
Related_Party_Transactions_Det2
Related Party Transactions (Details Textual) (USD $) | 12 Months Ended | |||||
Dec. 31, 2013 | 29-May-13 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
SQN AIF IV, L.P. [Member] | SQN AIF IV, L.P. [Member] | SQN AIF IV GP, LLC [Member] | SQN AIF IV GP, LLC [Member] | |||
Related Party Transactions (Textual) | ' | ' | ' | ' | ' | ' |
Percentage represents the general partner's interest in income, losses and distributions | 1.00% | ' | ' | ' | ' | ' |
Percentage represents the promotional interest of general partner of all distributable cash available for distribution after eight percent annual cumulative return to investors | 20.00% | ' | ' | ' | ' | ' |
Percentage represents Limited Partners cumulative return compounded annually on capital contributions | 8.00% | ' | ' | ' | ' | ' |
Description of management fee | 'Equal to or the greater of, (i) 2.5% per annum of the aggregate offering proceeds, or (ii) $125,000, payable monthly, until such time as an amount equal to at least 15% of the Partnership's Limited Partners' capital contributions have been returned to the Limited Partners, after which the monthly management fee will equal 100% of the management fee as initially calculated above, less 1% for each additional 1% of the Partnership's Limited Partners' capital contributions returned to them, such amounts are measured on the last day of each month. The management fee is paid regardless of the performance of the fund and will be adjusted in the future to reflect the equity raised. For the year ended December 31, 2013, the Partnership paid $875,000 in management fee expense which is recorded in management fee Investment Manager in the accompanying statements of operations. | ' | ' | ' | ' | ' |
Underwriting fee percentage of gross proceeds of offering | 3.00% | ' | ' | ' | ' | ' |
Due to Related Parties | ' | ' | ' | $1,000 | $10,797 | ' |
Maximum percentage of capital contribution paid as allowance for organizational and offering cost | 2.00% | ' | ' | ' | ' | ' |
Percentage of distributed distributable cash received by general partner | 1.00% | ' | ' | ' | ' | ' |
Offering expenses | ' | $225,468 | ' | ' | ' | ' |
Investment_in_Equipment_Subjec2
Investment in Equipment Subject to Operating Leases (Details) (USD $) | Dec. 31, 2013 |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Cost Basis | $11,227,488 |
Accumulated Depreciation | 61,898 |
Net Book Value | 11,165,590 |
Agricultural Equipment [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Cost Basis | 653,458 |
Accumulated Depreciation | 2,382 |
Net Book Value | 651,076 |
Computer Equipment [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Cost Basis | 1,529,807 |
Accumulated Depreciation | 17,505 |
Net Book Value | 1,512,302 |
Forklifts And Fuels Cells [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Cost Basis | 5,473,816 |
Accumulated Depreciation | 26,569 |
Net Book Value | 5,447,247 |
Heavy Equipment [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Cost Basis | 2,514,627 |
Accumulated Depreciation | 10,244 |
Net Book Value | 2,504,383 |
Industrial [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Cost Basis | 466,618 |
Accumulated Depreciation | 2,135 |
Net Book Value | 464,483 |
Machine tools [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Cost Basis | 556,686 |
Accumulated Depreciation | 2,943 |
Net Book Value | 553,743 |
Medical [Member] | ' |
Property Subject to or Available for Operating Lease [Line Items] | ' |
Cost Basis | 32,476 |
Accumulated Depreciation | 120 |
Net Book Value | $32,356 |
Investment_in_Equipment_Subjec3
Investment in Equipment Subject to Operating Leases (Details Textual) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Portfolio | |
Investment In Equipment Subject To Operating Leases (Textual) | ' |
Number Of Portfolios | 2 |
Combined total of assets | $17,800,000 |
Total assets of portfolio 1 | 11,200,000 |
Depreciation expenses | $61,899 |
Equipment_Notes_Receivable_Det
Equipment Notes Receivable (Details) (USD $) | Dec. 31, 2013 |
Schedule of future maturities of Promissory Note | ' |
2014 | $478,271 |
2015 | 645,590 |
2016 | 622,434 |
2017 | 946,605 |
Total of future maturities of the Promissory Note | $2,692,900 |
Equipment_Notes_Receivable_Det1
Equipment Notes Receivable (Details Textual) (USD $) | 1 Months Ended | 0 Months Ended | 12 Months Ended | |||
Dec. 18, 2013 | Oct. 15, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | |
Installment | Installment | Installment | ||||
Equipment Notes Receivable (Textual) | ' | ' | ' | ' | ' | ' |
Loan facility | $432,000 | $300,000 | $3,000,000 | $150,000 | ' | ' |
Effective interest rate | ' | ' | 23.25% | ' | ' | ' |
Periodic payment of principal and interest | ' | 12,834 | 69,577 | 5,100 | ' | ' |
Number of monthly installments | ' | 29 | 48 | 36 | ' | ' |
Loan facility maturity date | 31-Jan-18 | ' | ' | ' | 30-Sep-17 | ' |
Loan facility payments | ' | ' | 500,000 | ' | ' | ' |
Advances to Affiliate | ' | ' | ' | ' | ' | 2,500,000 |
Medical Equipment [Member] | ' | ' | ' | ' | ' | ' |
Equipment Notes Receivable (Textual) | ' | ' | ' | ' | ' | ' |
Interest Income, Other | ' | ' | ' | ' | 9,988 | ' |
Mining Equipment [Member] | ' | ' | ' | ' | ' | ' |
Equipment Notes Receivable (Textual) | ' | ' | ' | ' | ' | ' |
Interest Income, Other | ' | ' | ' | ' | 126,292 | ' |
Manufacturing Equipment [Member] | ' | ' | ' | ' | ' | ' |
Equipment Notes Receivable (Textual) | ' | ' | ' | ' | ' | ' |
Interest Income, Other | ' | ' | ' | ' | 10,807 | ' |
Equipment_loan_receivable_Deta
Equipment loan receivable (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ' |
Total | $6,530,766 |
Furniture and fixtures [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Maturity Date | 30-Jun-16 |
Total | 36,860 |
Fitness [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Maturity Date | 30-Jun-14 |
Total | 34,209 |
Computers [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Maturity Date | 30-Jun-14 |
Total | 104,008 |
Forklifts and fuels cells [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Total | 5,510,245 |
Forklifts and fuels cells [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Maturity Date | 31-Oct-17 |
Forklifts and fuels cells [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Maturity Date | 31-Mar-14 |
Industrial [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Maturity Date | 30-Sep-14 |
Total | 57,060 |
Machine tools [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Maturity Date | 1-Sep-14 |
Total | 42,221 |
Medical [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Maturity Date | 31-Mar-16 |
Total | $746,163 |
Equipment_loan_receivable_Deta1
Equipment loan receivable (Details 1) (USD $) | Dec. 31, 2013 |
Equipment loan receivable [Abstract] | ' |
2014 | $1,731,048 |
2015 | 1,511,118 |
2016 | 1,422,178 |
2017 | 1,060,421 |
2018 | 736,459 |
2019 | 69,542 |
Total | $6,530,766 |
Equipment_loan_receivable_Deta2
Equipment loan receivable (Details Textual) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 20, 2013 | Dec. 20, 2013 |
Portfolio Of Leases One [Member] | Portfolio Of Leases Two [Member] | |||
Equipment Loan Receivable [Textual] | ' | ' | ' | ' |
Purchase price | $6,530,766 | ' | $6,600,000 | $17,800,000 |
Loans accrued interest rate | 10.00% | ' | ' | ' |
Interest receivable on loans receivable | $19,682 | $0 | ' | ' |
Collateralized_Loan_Receivable1
Collateralized Loan Receivable (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2013 | Nov. 27, 2013 | Dec. 31, 2013 |
Subsequent Event [Member] | Collateralized Loan Receivable [Member] | Collateralized Loan Receivable [Member] | ||
Collateralized Loan Receivable [Textual] | ' | ' | ' | ' |
Advances to unrelated third party | ' | $756,000 | $500,000 | $322,000 |
Loans accrued interest rate | 10.00% | ' | 15.00% | ' |
Collateralized loans receivables due, description | ' | ' | 'The maximum outstanding amount on any date is the lesser of $500,000 and 50% of the borrower's eligible receivables due within 90 days of the advance date. | ' |
Collection of loans receivable | ' | $641,000 | ' | ' |
Equipment_and_Notes_Payable_De
Equipment and Notes Payable (Details) (USD $) | Dec. 31, 2013 |
Schedule of maturities of equipment notes payable | ' |
2014 | $3,549,741 |
2015 | 2,668,240 |
2016 | 1,675,292 |
2017 | 608,524 |
2018 | 39,542 |
Future maturities of equipment notes payable, Total | $8,541,339 |
Equipment_Notes_Payable_Detail
Equipment Notes Payable (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Equipment Notes Payable (Textual) | ' | ' |
Non-Recourse Debt | $8,541,339 | ' |
Maturity period of debt held by multiple lenders | ' | ' |
Maturity dates through 2018. | ||
Echo [Member] | ' | ' |
Equipment Notes Payable (Textual) | ' | ' |
Non-Recourse Debt | $8,500,000 | ' |
Minimum [Member] | ' | ' |
Equipment Notes Payable (Textual) | ' | ' |
Interest rate of debt held by multiple lenders | 2.75% | ' |
Maximum [Member] | ' | ' |
Equipment Notes Payable (Textual) | ' | ' |
Interest rate of debt held by multiple lenders | 6.75% | ' |
Loan_Payable_Details
Loan Payable (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 18, 2013 | Sep. 27, 2013 | |
Loan Payable (Textual) | ' | ' | ' |
Partnership borrowed amount | $6,800,000 | ' | ' |
Accrued interest | 10.00% | 12.50% | 23.25% |
Debt interest rate discount | 8.90% | ' | ' |
One time payament of principal amount | $600,000 | ' | ' |
Proceeds from lease assets | 100.00% | ' | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Total gains (losses) included in earnings: | ' |
Interest expense | $25,755 |
Fair values of Level 3 inputs | Equipment Notes Payable | ' |
Summary of reconciliation of the beginning and ending balances for assets measured at fair value on a recurring basis | ' |
Beginning balance | ' |
Issuance of additional note | 6,800,000 |
Total gains (losses) included in earnings: | ' |
Interest income | ' |
Interest expense | 25,755 |
Repayment of notes and accrued interest | ' |
Unrealized appreciation (depreciation) | ' |
Ending balance | 6,825,755 |
Fair values of Level 3 inputs | Note Payable (member) | ' |
Summary of reconciliation of the beginning and ending balances for assets measured at fair value on a recurring basis | ' |
Beginning balance | ' |
Issuance of additional note | 8,541,339 |
Total gains (losses) included in earnings: | ' |
Interest income | ' |
Interest expense | ' |
Repayment of notes and accrued interest | ' |
Unrealized appreciation (depreciation) | ' |
Ending balance | 8,541,339 |
Fair values of Level 3 inputs | Collateralized Loan Receivable [Member] | ' |
Summary of reconciliation of the beginning and ending balances for assets measured at fair value on a recurring basis | ' |
Beginning balance | ' |
Issuance of additional note | 322,000 |
Total gains (losses) included in earnings: | ' |
Interest income | 2,519 |
Interest expense | ' |
Repayment of notes and accrued interest | ' |
Unrealized appreciation (depreciation) | 8,968 |
Ending balance | 333,487 |
Fair values of Level 3 inputs | Equipment Note Receivable [Member] | ' |
Summary of reconciliation of the beginning and ending balances for assets measured at fair value on a recurring basis | ' |
Beginning balance | ' |
Issuance of additional note | 2,950,000 |
Total gains (losses) included in earnings: | ' |
Interest income | 4,142 |
Interest expense | ' |
Repayment of notes and accrued interest | -261,242 |
Unrealized appreciation (depreciation) | 55,072 |
Ending balance | 2,747,972 |
Fair values of Level 3 inputs | Equipment Loan Receivable [Member] | ' |
Summary of reconciliation of the beginning and ending balances for assets measured at fair value on a recurring basis | ' |
Beginning balance | ' |
Issuance of additional note | 6,530,766 |
Total gains (losses) included in earnings: | ' |
Interest income | 19,682 |
Interest expense | ' |
Repayment of notes and accrued interest | ' |
Unrealized appreciation (depreciation) | ' |
Ending balance | $6,550,448 |
Income_Tax_Reconciliation_unau2
Income Tax Reconciliation (unaudited) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Income Tax Reconciliation [Abstract] | ' |
Net loss per consolidated financial statements | ($868,157) |
Net income from non-includable U.S. entities | -28,478 |
Income attributable to non-controlling interest | 5,696 |
Organizational costs | 14,500 |
SQN Echo LLC | -32,603 |
Unearned interest income | 82,024 |
Net income for federal income tax purposes | ($827,018) |
Income_Tax_Reconciliation_unau3
Income Tax Reconciliation (unaudited) (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax (Textual) | ' | ' |
Partners' Capital | $5,645,889 | $1,100 |
Federal Income Tax Expense (Benefit), Continuing Operations | $0 | $5,067,949 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | |
Selected Quarterly Financial Data (Textual ) | ' | ' | ' | ' | ' |
Total revenue | $287,851 | $9,784 | $1,129 | ' | $298,764 |
Net loss allocable to Limited Partners | ($310,276) | ($389,790) | ($159,411) | ' | ($859,475) |
Weighted average number of limited partnership interests outstanding | 6,075.97 | 2,589.39 | 1,687.56 | ' | 3,940.39 |
Net loss attributable to Limited Partners per weighted average number of limited partnership | ($51.07) | ($150.53) | ($94.46) | ' | ($218.12) |
Business_Concentrations_Detail
Business Concentrations (Details) | 12 Months Ended |
Dec. 31, 2013 | |
A | Operating Leases [Member] | ' |
Concentration Risk [Line Items] | ' |
Concentration Risk, Percentage | 33.00% |
B | Operating Leases [Member] | ' |
Concentration Risk [Line Items] | ' |
Concentration Risk, Percentage | 16.00% |
C | Equipment Notes Receivable [Member] | ' |
Concentration Risk [Line Items] | ' |
Concentration Risk, Percentage | 85.00% |
D | Equipment Notes Receivable [Member] | ' |
Concentration Risk [Line Items] | ' |
Concentration Risk, Percentage | 10.00% |
E | Investment in SQN Echo LLC [Member] | ' |
Concentration Risk [Line Items] | ' |
Concentration Risk, Percentage | 10.00% |
F | Investment in SQN Echo LLC [Member] | ' |
Concentration Risk [Line Items] | ' |
Concentration Risk, Percentage | 11.00% |
G | Investment in SQN Echo LLC [Member] | ' |
Concentration Risk [Line Items] | ' |
Concentration Risk, Percentage | 14.00% |
H | Investment in SQN Echo LLC [Member] | ' |
Concentration Risk [Line Items] | ' |
Concentration Risk, Percentage | 27.00% |
Business_Concentrations_Detail1
Business Concentrations (Details 1) | 12 Months Ended |
Dec. 31, 2013 | |
Partnership Investment [Member] | Rental [Member] | ' |
Concentration Risk [Line Items] | ' |
Concentration Risk, Percentage | ' |
Partnership Investment One [Member] | Interest [Member] | ' |
Concentration Risk [Line Items] | ' |
Concentration Risk, Percentage | 80.00% |
Commitments_and_contingencies_
Commitments and contingencies (Details) (USD $) | 1 Months Ended | 12 Months Ended | |||
Dec. 18, 2013 | Dec. 31, 2013 | Oct. 15, 2013 | Sep. 27, 2013 | Jun. 28, 2013 | |
Commitments And Contingencies Textual [Abstract] | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | $432,000 | ' | $300,000 | $3,000,000 | $150,000 |
Accrued interest | 12.50% | 10.00% | ' | 23.25% | ' |
Debt Instrument, Maturity Date | 31-Jan-18 | 30-Sep-17 | ' | ' | ' |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 12 Months Ended | 1 Months Ended |
Dec. 31, 2013 | Jan. 31, 2014 | |
LimitedPartners | Subsequent Event [Member] | |
Subsequent Events (Textual) | ' | ' |
Number of partners admitted | 45 | ' |
Total capital contribution | $2,768,080 | ' |
Total capital contribution, Unit | 2,941.12 | ' |
Distribution paid to limited partners | ' | $100,566 |