Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 07, 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-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Common Stock, Shares Outstanding | ' | 23,816.69 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Assets | ' | ' |
Cash and cash equivalents | $6,843,521 | $146,340 |
Investments in finance leases, net | 1,632,252 | ' |
Investments in equipment subject to operating leases, net | 13,975,346 | 11,165,590 |
Equipment notes receivable, including accrued interest of $153,198 and $4,102 | 3,406,780 | 2,692,900 |
Equipment loan receivable, including accrued interest of $28,967 and $19,682 | 16,944,380 | 6,550,448 |
Residual value investment in equipment on lease | 402,976 | ' |
Initial direct costs, net of accumulated amortization of $145,709 and $16,052 | 329,074 | 316,448 |
Collateralized loan receivable, including accrued interest of $31,672 and $2,519 | 894,642 | 324,519 |
Investment in Informage SQN Technologies LLC | 192,500 | ' |
Other assets | 394,973 | 127,500 |
Total Assets | 45,016,444 | 21,323,745 |
Liabilities and Partner's Equity | ' | ' |
Equipment notes payable, non-recourse | 14,352,763 | 8,541,339 |
Loan payable, including accrued interest of $25,755 and $25,755 | 12,611,583 | 6,825,755 |
Accounts payable and accrued liabilities | 264,656 | 217,404 |
Unearned income | ' | 82,024 |
Distributions payable to General Partner | 8,714 | 537 |
Due to SQN Securities, LLC | ' | 10,797 |
Total liabilities | 27,237,716 | 15,677,856 |
Commitments and contingencies | ' | ' |
Partners' Equity (Deficit): | ' | ' |
Limited Partner | 16,598,990 | 5,099,313 |
General Partner | -17,584 | -9,119 |
Total Partners' Equity attributable to the Partnership | 16,581,406 | 5,090,194 |
Non-controlling interests in consolidated entities | 1,197,322 | 555,695 |
Total Equity | 17,778,728 | 5,645,889 |
Total Liabilities and Partner's Equity | $45,016,444 | $21,323,745 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Accumulated amortization of initial direct costs | $145,709 | $16,052 |
Accrued interest payable | 25,755 | 25,755 |
Equipment Notes Receivable [Member] | ' | ' |
Accrued interest receivable | 153,198 | 4,102 |
Equipment Loan Receivable [Member] | ' | ' |
Accrued interest receivable | 28,967 | 19,682 |
Collateralized Loans Receivable [Member] | ' | ' |
Accrued interest receivable | $31,672 | $2,519 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Revenue: | ' | ' | ' | ' |
Rental income | $1,294,742 | ' | $3,427,328 | ' |
Finance income | 61,870 | ' | 140,057 | ' |
Interest income | 736,770 | 9,784 | 1,636,898 | 9,913 |
Gain on sale of assets | 466,482 | ' | 469,595 | ' |
Other income | ' | ' | ' | 1,000 |
Total Revenue | 2,559,864 | 9,784 | 5,673,878 | 10,913 |
Expenses: | ' | ' | ' | ' |
Management fees - Investment Manager | 375,000 | 375,000 | 1,125,000 | 500,000 |
Depreciation and amortization | 891,621 | ' | 2,397,984 | ' |
Professional fees | 51,508 | 17,409 | 241,242 | 33,909 |
Organizational expenses | ' | ' | ' | 20,000 |
Acquisition costs | ' | 7,958 | 28,532 | 7,958 |
Administration expense | 21,619 | 2,960 | 36,409 | ' |
Interest expense | 674,407 | ' | 1,649,063 | 3,610 |
Other expenses | 8,493 | 184 | 27,550 | 184 |
Foreign currency transaction (gain) loss | 40,324 | ' | 25,223 | ' |
Total Expenses | 2,062,972 | 403,511 | 5,531,003 | 565,661 |
Net income (loss) | 496,892 | -393,727 | 142,875 | -554,748 |
Net income attributable to non-controlling interest in consolidated entities | 120,757 | ' | 171,627 | ' |
Net income (loss) attributable to the Partnership | 376,135 | -393,727 | -28,752 | -554,748 |
Net income (loss) attributable to the Partnership: | ' | ' | ' | ' |
Limited Partners | 372,374 | -389,790 | -28,464 | -549,201 |
General Partner | 3,761 | -3,937 | -288 | -5,547 |
Net income (loss) attributable to the Partnership | $376,135 | ($393,727) | ($28,752) | ($554,748) |
Weighted average number of limited partnership interests outstanding (in units) | 19,314.82 | 2,589.39 | 13,713.41 | 2,356.66 |
Net income (loss) attributable to Limited Partners per weighted average number of limited partnership interests outstanding (in dollars per unit) | $19.28 | $150.53 | ($2.08) | ($233.04) |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Partners' Equity (Unaudited) (USD $) | Limited Partnership Interests [Member] | Total | General Partner [Member] | Limited Partner [Member] | Noncontrolling Interest [Member] |
USD ($) | USD ($) | USD ($) | USD ($) | ||
Balance, beginning at Dec. 31, 2013 | ' | $5,645,889 | ($9,119) | $5,009,313 | $555,695 |
Balance, beginning (in units) at Dec. 31, 2013 | 7,587.65 | ' | ' | ' | ' |
Limited Partner capital contributions | ' | ' | ' | 14,271,451 | ' |
Limited Partner capital contributions (in units) | 14,271.45 | ' | ' | ' | ' |
Non-controlling interest contribution to consolidated entities | ' | ' | ' | ' | 470,000 |
Offering expenses | ' | ' | ' | -419,731 | ' |
Underwriting fees | ' | ' | ' | -1,408,690 | ' |
Net income (loss) | ' | 142,875 | -288 | -28,464 | 171,627 |
Distributions to partners | ' | -825,883 | -8,177 | -817,706 | ' |
Redemption of initial Limited Partners' contribution | ' | -97,183 | ' | -97,183 | ' |
Balance, ending at Sep. 30, 2014 | ' | $17,778,728 | ($17,584) | $16,598,990 | $1,197,322 |
Balance, ending (in units) at Sep. 30, 2014 | 21,859.10 | ' | ' | ' | ' |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Cash flows from operating activities: | ' | ' |
Net income (loss) | $142,875 | ($554,748) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' |
Finance income | -140,057 | ' |
Accrued interest income | -1,344,045 | -1,823 |
Depreciation and amortization | 2,397,984 | ' |
Gain on sale of assets | -469,595 | ' |
Foreign currency transaction (gains) losses | -4,317 | ' |
Change in operating assets and liabilities: | ' | ' |
Minimum rents receivable | 419,594 | ' |
Accrued interest income received | 1,156,511 | ' |
Other assets | -72,305 | ' |
Accounts payable and accrued liabilities | 47,252 | 33,264 |
Unearned interest income | -82,024 | 203,983 |
Due to SQN Securities, LLC | -10,797 | 55,000 |
Accrued interest on note payable | 554,194 | ' |
Net cash provided by (used in) operating activities | 2,595,270 | -264,324 |
Cash flows from investing activities: | ' | ' |
Cash paid for purchase of equipment subject to operating leases | -2,929,174 | ' |
Purchase of finance leases | -2,582,377 | ' |
Purchase in residual value investments of equipment on lease | -402,976 | ' |
Cash paid for initial direct costs | -142,283 | ' |
Cash paid for collateralized loan receivable | -2,686,056 | ' |
Cash received from collateralized loan receivable | 2,145,086 | ' |
Cash paid for equipment notes receivable | -5,836,265 | -2,650,000 |
Cash received from equipment loan receivable | 1,985,352 | ' |
Proceeds from sale of leased assets | 2,494,487 | ' |
Investment in Informaage SQN Technologies | -192,500 | ' |
Cash paid for equipment notes receivable | -803,638 | ' |
Repayment of equipment notes receivable | 238,854 | 221,031 |
Net cash used in investing activities | -8,711,490 | -2,428,969 |
Cash flows from financing activities: | ' | ' |
Cash received from loan payable | 9,500,000 | ' |
Repayments of loan payable | -3,714,172 | ' |
Cash paid to financial institutions for equipment notes payable | -4,970,568 | ' |
Cash received from non-controlling interest contribution | 470,000 | ' |
Cash received from Limited Partner capital contributions | 14,271,451 | 4,334,460 |
Cash paid for Limited Partner distributions | -817,706 | ' |
Cash paid for Limited Partner contribution redemption | -97,183 | -1,000 |
Cash paid for partner advances | ' | -1,000 |
Cash paid for underwriting fees | -1,408,690 | -105,271 |
Cash paid for organizational and offering costs | -419,731 | -701,955 |
Net cash provided by financing activities | 12,813,401 | 3,525,234 |
Net increase in cash and cash equivalents | 6,697,181 | 831,941 |
Cash and cash equivalents, beginning of period | 146,340 | 1,600 |
Cash and cash equivalents, end of period | 6,843,521 | 833,541 |
Cash paid for interest | 856,168 | ' |
Supplemental disclosure of non-cash investing activities: | ' | ' |
Offering expenses paid by SQN Capital Management, LLC | ' | 225,468 |
Debt assumed in lease purchase agreement | 11,447,351 | ' |
Debt forgiven on sale of assets | -1,219,553 | ' |
Increase in other assets | ($195,168) | ' |
Nature_of_Operations_and_Organ
Nature of Operations and Organization | 9 Months Ended | |
Sep. 30, 2014 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
Nature of Operations and Organization | ' | |
1 | Nature of Operations and Organization | |
Organization – 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. | ||
The Offering period commenced on April 2, 2013 and will last until the earlier of (i) April 2, 2015, which is two years from the commencement of the Offering Period, or (ii) the date that the Partnership has raised $200,000,000. The Partnership is currently in negotiations with additional Selling Dealers to offer its Units for sale. During the Offering Period it is anticipated that the majority of the Partnership’s cash in-flows will be derived from financing activities and be the direct result of capital contributions from investors. | ||
During the Operating Period, which began on May 29, 2013, the date of the initial closing, the Partnership will use the net offering proceeds from Limited Partner capital contributions to acquire its initial investments. As the investments mature, the Partnership anticipates reinvesting the cash proceeds in additional investments in leased equipment and project financing transactions, to the extent that the cash will not be used for expenses, reserves and distributions to the Limited Partners. During this time-frame the Partnership expects both rental income and finance income to increase substantially as well as related expenses such as depreciation and amortization. During the Operating Period the Partnership believes the majority of cash out-flows will be from investing activities as the Partnership acquires additional investments and to a lesser extend from financing activities from paying quarterly distributions to the Limited Partners. Cash flow from operations is expected to increase, primarily from the collection of rental payments and finance income. | ||
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. | ||
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. The Partnership originally contributed $2,200,000 to purchase the 80% share of Echo. Fund III contributed $550,000 to purchase a 20% share of Echo which is presented as non-controlling interest on the accompanying condensed consolidated financial statements. In February 2014, the Partnership funded an additional $480,000 into Echo (at the same time, an additional $120,000 was funded by Fund III) to decrease the principal of the debt originally obtained to finance the acquisition and reduce the interest rate. 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 condensed consolidated financial statements. Echo paid approximately $9,300,000 in cash and assumed approximately $8,500,000 in non-recourse equipment notes payable. | ||
On March 26, 2014, the Partnership formed a special purpose entity SQN Echo II, LLC (“Echo II”), a Limited Liability Company registered in the state of Delaware which is 80% owned by the Partnership and 20% by Fund III, an affiliate. The Partnership originally contributed $800,000 to purchase the 80% share of Echo II. Fund III contributed $200,000 to purchase a 20% share of Echo II which is presented as non-controlling interest on the accompanying condensed consolidated financial statements. In June 2014, the Partnership funded an additional $600,000 into Echo II (at the same time, an additional $150,000 was funded by Fund III) to decrease the principal of the debt originally obtained to finance the acquisition and reduce the interest rate. On March 28, 2014, Echo II entered into an agreement with an unrelated third party for the purchase of three portfolios of leases for approximately $21,863,000. 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 condensed consolidated financial statements. The third portfolio consists of direct finance leases in medical equipment. Echo II paid approximately $10,415,000 in cash and assumed approximately $11,447,000 in non-recourse equipment notes payable. | ||
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, 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. On July 1, 2014, the Partnership paid a quarterly distribution to its limited partners at a rate of 7.00% per annum. This distribution rate reflects an increase of 0.5% per annum above the targeted distribution rate of 6.5% per annum. During the nine months ended September 30, 2014, the Partnership made distributions to its Limited Partners totaling approximately $817,706. As of September 30, 2014, the Partnership has accrued $8,714 for distributions payable to General Partner. | ||
From May 29, 2013 through September 30, 2014, the Partnership has admitted 351 Limited Partners with total capital contributions of $21,858,101 resulting in the sale of 21,858.10 Units. The Partnership received cash of $20,702,801 and applied $1,155,300 which would have otherwise been paid as sales commission to the purchase of 1,155.30 additional Units. | ||
The 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. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | |
Sep. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
Summary of Significant Accounting Policies | ' | |
2 | Summary of Significant Accounting Policies | |
Basis of Presentation – The accompanying condensed consolidated financial statements of SQN AIF IV, L.P. at September 30, 2014 and for the three and nine months ended September 30, 2014 and 2013 are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) with respect to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim condensed consolidated financial statements furnished reflect all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. The results reported in these condensed consolidated financial statements should not necessarily be taken as indicative of results that may be expected for the entire year. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Partnership for the year ended December 31, 2013 and notes thereto contained in the Partnership’s annual report on Form 10-K for the year ended December 31, 2013, as filed with the SEC March 31, 2014. | ||
Principles of Consolidation - The accompanying condensed 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. | ||
Use of estimates - The preparation of financial statements in conformity with U.S. GAAP 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. | ||
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. | ||
Lease Classification and Revenue Recognition - Each equipment lease that the Partnership enters into is classified as either a finance lease or an operating lease, which is determined at lease inception, based upon the terms of each lease, or when there are significant changes to the lease terms. 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), if any, and external broker fees incurred with the lease origination. 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. For a finance lease, initial direct costs are capitalized and amortized over the lease term using the effective interest rate method. For an operating lease, the initial direct costs are included as a component of the cost of the equipment and depreciated over the lease term. | ||
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 at lease termination, the initial direct costs related to the lease, if any, 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 operating lease receivables are included in accounts receivable until collected. Accounts receivable is stated at its estimated net realizable value. Deferred revenue is the difference between the timing of the receivables billed and the income recognized on the straight-line basis. | ||
The Investment Manager has an investment committee that approves each new equipment lease and other project financing transaction. As part of this process, the investment committee determines the residual value, if any, to be used once the investment has been approved. The factors considered in determining the residual value include, but are not limited to, the creditworthiness of the potential lessee, the type of equipment considered, how the equipment is integrated into the potential lessee’s business, the length of the lease and the industry in which the potential lessee operates. Residual values are reviewed for impairment in accordance with our impairment review policy. | ||
The residual value assumes, among other things, that the asset will be utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. The residual value is calculated using information from various external sources, such as trade publications, auction data, equipment dealers, wholesalers and industry experts, as well as inspection of the physical asset and other economic indicators. | ||
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. | ||
Asset Impairments - The significant assets in the Partnership’s 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 will be recognized only if the carrying value of a long-lived asset is not recoverable and exceeds its fair value. If there is an indication of impairment, the Partnership will estimate 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 will be measured as the amount by which the carrying value of a long-lived asset exceeds its fair value and recorded in the statement of operations in the period the determination is made. | ||
Depreciation – 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 Partnership’s 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. | ||
Recent Accounting Pronouncements | ||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), requiring revenue to be recognized in an amount that reflects the consideration expected to be received in exchange for goods and services. The adoption of ASU 2014-09 becomes effective for the Partnership on January 1, 2017, including interim periods within that reporting period. Early adoption is not permitted. The Partnership is currently in the process of evaluating the impact of the adoption of ASU 2014-09 on its consolidated financial statements. | ||
In August 2014, FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”), which provides guidance about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The adoption of ASU 2014-15 becomes effective for the Partnership on its fiscal year ending December 31, 2016, and all subsequent annual and interim periods. Early adoption is permitted. The adoption of ASU 2014-15 is not expected to have a material effect on the Partnership’s consolidated financial statements. | ||
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 condensed consolidated financial statements. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
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 September 30, 2014 and December 31, 2013. | |||||||||
The Partnership pays the Investment Manager during the Offering Period, Operating Period and the Liquidation Period a management fee equal to 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 Partnership and will be adjusted in the future to reflect the equity raised. For the three and nine months ended September 30, 2014, the Partnership paid $375,000 and $1,125,000, respectively, in management fee expense which is recorded in management fee — Investment Manager in the accompanying condensed consolidated statements of operations. | |||||||||
SQN Securities LLC (“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 nine months ended September 30, 2014, the Partnership recorded the following transactions with Securities: | |||||||||
30-Sep-14 | 31-Dec-13 | ||||||||
(unaudited) | |||||||||
Balance - beginning of period | $ | 10,797 | $ | — | |||||
Underwriting fees earned by Securities | 409,689 | 196,395 | |||||||
Payments by the Partnership to Securities | (420,486 | ) | (185,598 | ) | |||||
Balance - end of period | $ | — | $ | 10,797 | |||||
For the nine months ended September 30, 2014, the Partnership recorded the following underwriting fee transactions: | |||||||||
Nine Months Ended September 30, 2014 | |||||||||
Underwriting discount incurred by the Partnership | $ | 615,140 | |||||||
Underwriting fees earned by Securities | 409,689 | ||||||||
Fees paid to outside brokers | 383,861 | ||||||||
Total underwriting fees | $ | 1,408,690 |
Investments_in_Finance_Leases
Investments in Finance Leases | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Leases, Capital [Abstract] | ' | ||||
Investments in Finance Leases | ' | ||||
4 | Investments in Finance Leases | ||||
At September 30, 2014, net investment in finance leases consisted of the following: | |||||
Minimum rents receivable | $ | 1,581,576 | |||
Estimated unguaranteed residual value | 360,000 | ||||
Unearned income | (309,324 | ) | |||
$ | 1,632,252 | ||||
Medical Equipment | |||||
On March 28, 2014, Echo II purchased three finance leases for medical equipment. One of the leases had a remaining term of 37 months and monthly payments of $4,846. The second lease also has a remaining term of 37 months and monthly payments of $32,416 for the first 13 payments and $22,606 for the last 24 payments. The third lease had a remaining term of 32 months and monthly payments of $14,456. | |||||
Wind Turbine | |||||
On March 28, 2014, the Partnership entered into a new finance lease transaction for a wind turbine in Northern Ireland for £409,377 ($683,455 applying exchange rates at March 28, 2014). The finance lease requires 25 quarterly payments of £23,150 ($38,647 applying exchange rates at March 28, 2014). On July 31, 2014, the Partnership sold this lease to Summit Asset Management Limited for total cash proceeds of £438,366 ($742,110 applying exchange rates at July 31, 2014). The net book value of the lease at the time of sale was $685,688 and the Partnership recognized a gain of $56,422. | |||||
Medical Equipment | |||||
On March 31, 2014, the Partnership entered into entered into a new finance lease transaction for a medical equipment for $247,920. The finance lease requires 48 monthly payments of $7,415. |
Investments_in_Equipment_Subje
Investments in Equipment Subject to Operating Leases | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Leases, Operating [Abstract] | ' | ||||||||||||
Investments in Equipment Subject to Operating Leases | ' | ||||||||||||
5 | Investments in Equipment Subject to Operating Leases | ||||||||||||
On March 28, 2014, Echo II entered into an agreement with an unrelated third party for the purchase of two portfolios of leases with a combined total of approximately $21,863,000 of assets. One of the portfolios consisted of approximately $7,800,000 of assets subject to operating leases. | |||||||||||||
During the nine months ended September 30, 2014, Echo II sold two operating lease schedules to unrelated third parties for total cash proceeds of $281,405 and elimination of related outstanding debt of $399,827. The net book value of these leases at the time of sale was $644,184 which resulted in the Partnership recognizing a gain of $37,048. | |||||||||||||
On December 20, 2013, Echo entered into an 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. | |||||||||||||
During the nine months ended September 30, 2014, Echo sold nine operating lease schedules to unrelated third parties for total cash proceeds of $1,444,694, a receivable of $37,060 and elimination of related outstanding debt of $819,726. The net book value of these leases at the time of sale was $1,925,158 which resulted in the Partnership recognizing a gain of $376,322. Included in these sales were four leases that had come to the residual realization phase and the proceeds received from these sales were sufficient to return the projected yield on investment. | |||||||||||||
The composition of the equipment subject to operating leases in the Echo and Echo II transactions as of September 30, 2014 is as follows: | |||||||||||||
Accumulated | |||||||||||||
Description | Cost | Depreciation | Net Book Value | ||||||||||
Agricultural equipment | $ | 807,235 | $ | 89,418 | $ | 717,817 | |||||||
Aircraft equipment | 2,138,681 | 138,568 | 2,000,113 | ||||||||||
Computer equipment | 1,040,036 | 268,164 | 771,872 | ||||||||||
Forklifts and fuels cells | 7,237,869 | 855,843 | 6,382,026 | ||||||||||
Heavy equipment | 3,047,443 | 323,229 | 2,724,214 | ||||||||||
Industrial | 518,399 | 71,962 | 446,437 | ||||||||||
Machine tools | 556,686 | 52,077 | 504,609 | ||||||||||
Medical | 518,591 | 90,333 | 428,258 | ||||||||||
$ | 15,864,940 | $ | 1,889,594 | $ | 13,975,346 | ||||||||
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 three and nine months ended September 30, 2014 was $846,586 and $2,268,327, respectively. |
Equipment_Notes_Receivable
Equipment Notes Receivable | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Receivables [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 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 three and nine months ended September 30, 2014, the medical equipment note earned $3,548 and $11,874 of interest income, respectively. | |||||
Mineral Processing Equipment | |||||
On September 27, 2013, the Partnership entered into a loan facility to provide financing in an amount up to $3,000,000. The borrower 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 the lessee during September 2013. The loan facility requires 48 monthly payments of principal and interest of $68,718 (revised from original payment of $69,577 upon second funding discussed below) and a balloon payment of $500,000 in September 2017 which equates to an effective interest rate of 23.25%. The loan facility is scheduled to mature in September 2017. On May 9, 2014, the Partnership made a second funding of $500,000 to the lessee under the above agreement. Upon settlement of the transaction, the lessee made principal and interest payments totaling $156,898. Net proceeds transferred to the lessee were $343,102. The loan facility requires 41 monthly payments of principal and interest of $15,764 and matures in September 2017. The lessee’s obligations under the loan facility are also personally guaranteed by its two majority shareholders. For the three and nine months ended September 30, 2014, the mineral processing equipment note earned $128,846 and $289,429 of interest income, respectively. | |||||
Manufacturing Equipment | |||||
On October 15, 2013, the Partnership entered into a $300,000 loan facility with a lessee secured by manufacturing equipment owned by the lessee. The lessee 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 three and nine months ended September 30, 2014, the manufacturing equipment note earned $9,341 and $31,663 of interest income, respectively. The lessee’s obligations under the loan facility are also personally guaranteed by its majority shareholder. | |||||
Brake Manufacturing Equipment | |||||
On December 18, 2013, the Partnership entered into a forward purchase agreement with an unrelated lender. According to the agreement, the Partnership was obligated to purchase a promissory note secured by brake manufacturing equipment with an aggregate principal amount of $432,000. The purchase of the promissory note was finalized on May 2, 2014. The promissory note requires quarterly payments of $34,786, accrues interest at 12.5% per annum and matures in January 2018. For the three and nine months ended September 30, 2014, the equipment note earned $12,624 and $23,470 of interest income, respectively. As of September 30, 2014, the outstanding balance of the promissory note receivable was $397,530. | |||||
The future maturities of the Partnership’s equipment notes receivable at September 30, 2014 are as follows: | |||||
Years ending September 30, | |||||
2015 | $ | 1,167,764 | |||
2016 | 1,035,378 | ||||
2017 | 976,114 | ||||
2018 | 74,326 | ||||
$ | 3,253,582 | ||||
Equipment_Loan_Receivable
Equipment Loan Receivable | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Equipment Loan Receivable | ' | ||||||
Equipment loan Receivable | ' | ||||||
7 | Equipment Loans 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 a rate of 10%. The notes mature on various dates through October 2017. For the three and nine months ended September 30, 2014, the Partnership earned $136,909 and $415,372 of interest income, respectively. | |||||||
On March 28, 2014, Echo II entered into an agreement with the same unrelated third party as the Echo transaction for the purchase of two portfolios of leases for a combined total purchase price of $21,863,000. One of the portfolios consists of approximately $12,400,000 of equipment loans receivable. The loans accrue interest at a rate of 10%. The notes mature on various dates through October 2017. For the three and nine months ended September 30, 2014, the Partnership earned $298,317 and $627,555 of interest income, respectively. | |||||||
The composition of the equipment loans receivable in the Echo and Echo II transactions as of September 30, 2014 is as follows: | |||||||
Maturity | |||||||
Description | Date | Balance | |||||
Furniture and fixtures | 6/30/2016 - 04/30/18 | $ | 1,254,710 | ||||
Fitness | 12/31/14 | 16,617 | |||||
Computers | 10/31/2014 - 9/30/17 | 671,951 | |||||
Forklifts and fuels cells | 10/31/14 - 10/31/17 | 4,890,305 | |||||
Aircraft services equipment | 09/30/15 - 12/31/17 | 1,944,346 | |||||
Industrial | 12/31/14 - 10/31/20 | 5,534,133 | |||||
Medical and research equipment | 01/31/15 - 12/31/17 | 2,603,351 | |||||
$ | 16,915,413 | ||||||
The future maturities of the Partnership’s equipment loans receivable at September 30, 2014 are as follows: | |||||||
Years ending September 30, | |||||||
2015 | $ | 4,017,537 | |||||
2016 | 3,290,023 | ||||||
2017 | 3,047,449 | ||||||
2018 | 2,272,347 | ||||||
2019 | 681,815 | ||||||
Thereafter | 3,606,242 | ||||||
$ | 16,915,413 |
Residual_Value_Investment_in_E
Residual Value Investment in Equipment on Lease | 9 Months Ended | |
Sep. 30, 2014 | ||
Residual Value Investment In Equipment On Lease | ' | |
Residual Value Investment in Equipment on Lease | ' | |
8 | Residual Value Investment in Equipment on Lease | |
On September 15, 2014, the Partnership entered into a Residual Interest Purchase Agreement with a leasing company to purchase up to $3 million of residual value interest in equipment. This leasing company has entered into a Master Lease Agreement with another third party to lease cash handling machines or smart safes under one or more lease schedules with original equipment cost of $20 million (“OEC”). In connection with the Master Lease Agreement, the leasing company has entered into a finance arrangement with another third party to finance 85% of the OEC up to an aggregate facility of $17 million (85% of $20 million) and the Partnership has agreed to finance the remaining 15% of the OEC up to an aggregate facility of $3 million (15% of $20 million). The Partnership appointed the leasing company to remarket the equipment after the base term. As of September 30, 2014, the Partnership had advanced a total of $402,976. |
Collateralized_Loan_Receivable
Collateralized Loan Receivable | 9 Months Ended | |
Sep. 30, 2014 | ||
Collateralized Loan Receivable [Abstract] | ' | |
Collateralized Loan Receivable | ' | |
9 | 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. On July 15, 2014, the Partnership amended the loan agreement to increase the maximum outstanding amount on any date to $1,000,000. As of September 30, 2014, and December 31, 2013, the outstanding principal balance of the loan was $862,970 and $322,000, respectively. |
Investment_in_Informage_SQN_Te
Investment in Informage SQN Technologies LLC | 9 Months Ended | |
Sep. 30, 2014 | ||
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | ' | |
Investment in Informage SQN Technologies LLC | ' | |
10 | Investment in Informage SQN Technologies LLC | |
On August 1, 2014, the Partnership, SQN Portfolio Acquisition Company, LLC (“SQN Portfolio”), an entity managed by the Partnership’s Investment Manager, and an unrelated entity formed a special purpose entity Informage SQN Technologies LLC (“Informage SQN”), a Limited Liability Company registered in the state of Texas. Informage SQN was formed to finance cellular communications field measurement and testing and other related services to telecom clients on a contractual basis. The Partnership and SQN Portfolio each own 24.5% of Informage SQN, while the unrelated entity owns 51%. The Partnership accounts for its investment in Informage SQN using the equity method. The Partnership will make additional contributions up to $3,850,000 total aggregate outstanding capital contributions. |
Equipment_Notes_Payable
Equipment Notes Payable | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Disclosure Text Block Supplement [Abstract] | ' | ||||
Equipment Notes Payable | ' | ||||
11 | Equipment Notes Payable | ||||
In connection with the Echo and Echo II transactions, Echo and Echo II assumed approximately $8,500,000 and $11,400,000, respectively, in non-recourse debt in connection with the acquisition of portfolios of assets subject to lease. The debt is held by multiple lenders with interest rates ranging from 2.75% to 9.25% and maturity dates through 2020. The loan is secured by the underlying assets of each lease. | |||||
The future maturities of the Partnership’s equipment notes payable at September 30, 2014 are as follows: | |||||
Years ending September 30, | |||||
2015 | $ | 5,262,753 | |||
2016 | 4,111,768 | ||||
2017 | 2,551,221 | ||||
2018 | 1,537,598 | ||||
2019 | 889,423 | ||||
2020 | — | ||||
$ | 14,352,763 |
Loan_Payable
Loan Payable | 9 Months Ended | |
Sep. 30, 2014 | ||
Debt Disclosure [Abstract] | ' | |
Loan Payable | ' | |
12 | Loans Payable | |
In connection with the Echo transaction, the Partnership borrowed $6,800,000 in the form of a senior participation 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 senior participant, as collateral, has a first priority security interest in all of the leased assets acquired by Echo as well as a senior participation interest in the proceeds from the leased assets, while the Partnership and Fund III have a junior participation interest until the loan is repaid in full. Beginning January 1, 2014 and monthly thereafter, all of the cash received from these leased assets is applied first against accrued and unpaid interest of the senior participant, second, against any cumulative interest shortfall of the senior participant, third, against accrued and unpaid interest of the Partnership and Fund III, fourth, against the outstanding principal balance of the senior participation with any excess distributed to the Partnership and Fund III. There is no stated repayment term for the principal. The outstanding principal balance of the loan as of September 30, 2014 was $4,344,233. | ||
In connection with the Echo II transaction, the Partnership borrowed $9,500,000 in the form of a senior participation with interest accruing at 10% per annum through July 1, 2014 then at 9% per annum when the Partnership made a one-time $817,525 payment which was applied to principal. The senior participant, as collateral, has a first priority security interest in all of the leased assets acquired by Echo II as well as a senior participation interest in the proceeds from the leased assets, while the Partnership and Fund III have a junior participation interest until the loan is repaid in full. Beginning May 1, 2014 and monthly thereafter, all of the cash received from these leased assets is applied first against accrued and unpaid interest of the senior participant, second, against any cumulative interest shortfall of the senior participant, third, against accrued and unpaid interest of the Partnership and Fund III, fourth, against the outstanding principal balance of the senior participation with any excess distributed to the Partnership and Fund III. There is no stated repayment term for the principal. On September 29, 2014, all rights, title and interest in this senior participation was assigned from the unrelated third party to SQN Asset Finance Income Fund Limited, a Guernsey incorporated closed ended investment company, a fund managed by the Partnership’s Investment Manager. The outstanding principal balance of the loan as of September 30, 2014 was $8,241,595. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||
13 | 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, and other liabilities, approximate fair value due to their short term until maturities. | |||||||||||||||||||||
The Partnership’s carrying values and approximate fair values of its financial instruments all classified as Level 3 were as follows: | |||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||
Assets: | |||||||||||||||||||||
Equipment notes receivable, including accrued interest | $ | 3,406,780 | $ | 3,403,737 | $ | 2,692,900 | $ | 2,747,972 | |||||||||||||
Equipment loan receivable, including accrued interest | $ | 16,944,380 | $ | 16,944,380 | $ | 6,550,448 | $ | 6,550,448 | |||||||||||||
Collateralized loan receivable, including accrued interest | $ | 894,642 | $ | 867,585 | $ | 324,519 | $ | 333,487 | |||||||||||||
Liabilities: | |||||||||||||||||||||
Equipment notes payable, including accrued interest | $ | 14,352,763 | $ | 14,352,763 | $ | 8,541,339 | $ | 8,541,339 | |||||||||||||
Loans payable, including accrued Interest | $ | 12,611,583 | $ | 12,483,728 | $ | 6,825,755 | $ | 6,825,755 | |||||||||||||
The following is a reconciliation of the beginning and ending balances for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended September 30, 2014: | |||||||||||||||||||||
Equipment Notes Receivable | Equipment Loan Receivable | Collateralized Loan Receivable | Equipment Notes Payable | Loans Payable | |||||||||||||||||
Estimated fair value, January 1, 2014 | $ | 2,747,972 | $ | 6,550,448 | $ | 333,487 | $ | 8,541,339 | $ | 6,825,755 | |||||||||||
Issuance of additional notes | 803,638 | 12,369,999 | 2,686,056 | 11,447,351 | 9,500,000 | ||||||||||||||||
Total gains (losses) included in earnings: | |||||||||||||||||||||
Interest income | 356,578 | 1,042,928 | 52,802 | — | — | ||||||||||||||||
Interest expense | — | — | — | (554,194 | ) | (856,168 | ) | ||||||||||||||
Repayment of notes and accrued interest | (446,336 | ) | (3,018,995 | ) | (2,168,735 | ) | (5,081,733 | ) | (4,570,340 | ) | |||||||||||
Unrealized appreciation (depreciation) | (58,115 | ) | — | (36,025 | ) | — | 1,584,481 | ||||||||||||||
Estimated fair value, September 30, 2014 | $ | 3,403,737 | $ | 16,944,380 | $ | 867,585 | $ | 14,352,763 | $ | 12,483,728 |
Business_Concentrations
Business Concentrations | 9 Months Ended | |
Sep. 30, 2014 | ||
Risks and Uncertainties [Abstract] | ' | |
Business Concentrations | ' | |
14 | Business Concentrations | |
For the nine months ended September 30, 2014, the Partnership had two lessees which accounted for approximately 25% and 11% of the Partnership’s income derived from operating leases. For the nine months ended September 30, 2014, the Partnership had three lessees which accounted for approximately 17%, 16% and 11% of the Partnership’s interest income. | ||
At September 30, 2014, the Partnership had three lessees which accounted for approximately 47%, 25%, and 19% of the Partnership’s investment in finance leases. At September 30, 2014, the Partnership had two lessees which accounted for approximately 21% and 16% of the Partnership’s investment in operating leases. At September 30, 2013, the Partnership had one lessee which accounted for 100% of the Partnership’s investment in operating leases. At September 30, 2014, the Partnership had two lessees which accounted for approximately 78% and 12% of the Partnership’s investment in equipment notes receivable. At September 30, 2013, the Partnership had one lessee which accounted for approximately 86% of the Partnership’s investment in equipment notes receivable. |
Geographic_Information
Geographic Information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Geographic Information | ' | ||||||||||||||||
15 | Geographic Information | ||||||||||||||||
Geographic information for revenue for the three months ended September 30, 2014 and 2013 was as follows: | |||||||||||||||||
Three Months Ended September 30, 2014 | |||||||||||||||||
Revenue: | United States | Europe | Mexico | Total | |||||||||||||
Rental income | $ | 1,294,742 | $ | — | $ | — | $ | 1,294,742 | |||||||||
Finance income | $ | 38,343 | $ | 23,527 | $ | — | $ | 61,870 | |||||||||
Interest income | $ | 607,924 | $ | — | $ | 128,846 | $ | 736,770 | |||||||||
Gain on sale of assets | $ | 466,482 | $ | — | $ | — | $ | 466,482 | |||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||
Revenue: | United States | Europe | Mexico | Total | |||||||||||||
Rental income | $ | — | $ | — | $ | — | $ | — | |||||||||
Finance income | $ | — | $ | — | $ | — | $ | — | |||||||||
Interest income | $ | 9,784 | $ | — | $ | — | $ | 9,784 | |||||||||
Other income | $ | — | $ | — | $ | — | $ | — | |||||||||
Geographic information for revenue for the nine months ended September 30, 2014 and 2013 was as follows: | |||||||||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||||||
Revenue: | United States | Europe | Mexico | Total | |||||||||||||
Rental income | $ | 3,427,328 | $ | — | $ | — | $ | 3,427,328 | |||||||||
Finance income | $ | 79,175 | $ | 60,882 | $ | — | $ | 140,057 | |||||||||
Interest income | $ | 1,371,661 | $ | — | $ | 265,237 | $ | 1,636,898 | |||||||||
Gain on sale of assets | $ | 469,595 | $ | — | $ | — | $ | 469,595 | |||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||
Revenue: | United States | Europe | Mexico | Total | |||||||||||||
Interest income | $ | 9,913 | $ | — | $ | — | $ | 9,913 | |||||||||
Other income | $ | 1,000 | $ | — | $ | — | $ | 1,000 | |||||||||
Geographic information for long-lived assets at September 30, 2014 and December 31, 2013 was as follows: | |||||||||||||||||
30-Sep-14 | |||||||||||||||||
Long-lived assets: | United States | Europe | Mexico | Total | |||||||||||||
Investment in finance leases, net | $ | 1,401,906 | $ | 230,346 | $ | — | $ | 1,632,252 | |||||||||
Investments in equipment subject to operating leases, net | $ | 13,975,346 | $ | — | $ | — | $ | 13,975,346 | |||||||||
Equipment notes receivable, including accrued interest | $ | 743,966 | $ | — | $ | 2,662,814 | $ | 3,406,780 | |||||||||
Equipment loans receivable, including accrued interest | $ | 16,944,380 | $ | — | $ | — | $ | 16,944,380 | |||||||||
Collateralized loan receivable, including accrued interest | $ | 894,642 | $ | — | $ | — | $ | 894,642 | |||||||||
31-Dec-13 | |||||||||||||||||
Long-lived assets: | United States | Europe | Mexico | Total | |||||||||||||
Investment in finance leases, net | $ | — | $ | — | $ | — | $ | — | |||||||||
Investments in equipment subject to operating leases, net | $ | 11,165,590 | $ | — | $ | — | $ | 11,165,590 | |||||||||
Equipment notes receivable, including accrued interest | $ | 402,088 | $ | — | $ | 2,290,812 | $ | 2,692,900 | |||||||||
Equipment loans receivable, including accrued interest | $ | 6,550,448 | $ | — | $ | — | $ | 6,550,448 | |||||||||
Collateralized loan receivable, including accrued interest | $ | 324,519 | $ | — | $ | — | $ | 324,519 |
Subsequent_Events
Subsequent Events | 9 Months Ended | |
Sep. 30, 2014 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Events | ' | |
16 | Subsequent Events | |
Subsequent to September 30, 2014, the note receivable relating to mineral processing equipment was placed in technical default in order to facilitate a restructuring which the Partnership believes to be in its best interest. The Investment Manager does not believe an asset impairment is warranted based on the collateral value of the equipment, the value of the plant as a going concern, and the personal and corporate guarantees behind the transaction. The Investment Manager believes that the restructure transaction will result in better economics for the Partnership and improved asset security. | ||
On October 1, 2014, the Partnership paid a quarterly distribution to its limited partners at a rate of 7.1% per annum. This distribution rate reflects an increase of 0.6% per annum above the targeted distribution rate of 6.5% per annum. | ||
On October 27, 2014, the Partnership advanced a total of $1,162,511 for its residual value investment in equipment on lease. | ||
From October 1, 2014 through November 7, 2014, the Partnership admitted an additional 51 Limited Partners with total cash contributions of $1,888,770, total capital contributions of $1,958,587 and 1,958.59 Units. The Partnership paid or accrued an underwriting fee to Securities and outside brokers totaling $56,663 and $67,284, respectively. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation – The accompanying condensed consolidated financial statements of SQN AIF IV, L.P. at September 30, 2014 and for the three and nine months ended September 30, 2014 and 2013 are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) with respect to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim condensed consolidated financial statements furnished reflect all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. The results reported in these condensed consolidated financial statements should not necessarily be taken as indicative of results that may be expected for the entire year. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Partnership for the year ended December 31, 2013 and notes thereto contained in the Partnership’s annual report on Form 10-K for the year ended December 31, 2013, as filed with the SEC March 31, 2014. | |
Principles of Consolidation | ' |
Principles of Consolidation - The accompanying condensed 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. | |
Use of estimates | ' |
Use of estimates - The preparation of financial statements in conformity with U.S. GAAP 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. | |
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. | |
Lease Classification and Revenue Recognition | ' |
Lease Classification and Revenue Recognition - Each equipment lease that the Partnership enters into is classified as either a finance lease or an operating lease, which is determined at lease inception, based upon the terms of each lease, or when there are significant changes to the lease terms. 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), if any, and external broker fees incurred with the lease origination. 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. For a finance lease, initial direct costs are capitalized and amortized over the lease term using the effective interest rate method. For an operating lease, the initial direct costs are included as a component of the cost of the equipment and depreciated over the lease term. | |
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 at lease termination, the initial direct costs related to the lease, if any, 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 operating lease receivables are included in accounts receivable until collected. Accounts receivable is stated at its estimated net realizable value. Deferred revenue is the difference between the timing of the receivables billed and the income recognized on the straight-line basis. | |
The Investment Manager has an investment committee that approves each new equipment lease and other project financing transaction. As part of this process, the investment committee determines the residual value, if any, to be used once the investment has been approved. The factors considered in determining the residual value include, but are not limited to, the creditworthiness of the potential lessee, the type of equipment considered, how the equipment is integrated into the potential lessee’s business, the length of the lease and the industry in which the potential lessee operates. Residual values are reviewed for impairment in accordance with our impairment review policy. | |
The residual value assumes, among other things, that the asset will be utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. The residual value is calculated using information from various external sources, such as trade publications, auction data, equipment dealers, wholesalers and industry experts, as well as inspection of the physical asset and other economic indicators. | |
Equipment Notes 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. | |
Asset Impairments | ' |
Asset Impairments - The significant assets in the Partnership’s 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 will be recognized only if the carrying value of a long-lived asset is not recoverable and exceeds its fair value. If there is an indication of impairment, the Partnership will estimate 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 will be measured as the amount by which the carrying value of a long-lived asset exceeds its fair value and recorded in the statement of operations in the period the determination is made. | |
Depreciation | ' |
Depreciation – 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 Partnership’s 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. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), requiring revenue to be recognized in an amount that reflects the consideration expected to be received in exchange for goods and services. The adoption of ASU 2014-09 becomes effective for the Partnership on January 1, 2017, including interim periods within that reporting period. Early adoption is not permitted. The Partnership is currently in the process of evaluating the impact of the adoption of ASU 2014-09 on its consolidated financial statements. | |
In August 2014, FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”), which provides guidance about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The adoption of ASU 2014-15 becomes effective for the Partnership on its fiscal year ending December 31, 2016, and all subsequent annual and interim periods. Early adoption is permitted. The adoption of ASU 2014-15 is not expected to have a material effect on the Partnership’s consolidated financial statements. | |
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 condensed consolidated financial statements. |
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Related Party Transactions [Abstract] | ' | ||||||||
Schedule of related party transactions | ' | ||||||||
For the nine months ended September 30, 2014, the Partnership recorded the following transactions with Securities: | |||||||||
30-Sep-14 | 31-Dec-13 | ||||||||
(unaudited) | |||||||||
Balance - beginning of period | $ | 10,797 | $ | — | |||||
Underwriting fees earned by Securities | 409,689 | 196,395 | |||||||
Payments by the Partnership to Securities | (420,486 | ) | (185,598 | ) | |||||
Balance - end of period | $ | — | $ | 10,797 | |||||
For the nine months ended September 30, 2014, the Partnership recorded the following underwriting fee transactions: | |||||||||
Nine Months Ended September 30, 2014 | |||||||||
Underwriting discount incurred by the Partnership | $ | 615,140 | |||||||
Underwriting fees earned by Securities | 409,689 | ||||||||
Fees paid to outside brokers | 383,861 | ||||||||
Total underwriting fees | $ | 1,408,690 |
Investments_in_Finance_Leases_
Investments in Finance Leases (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Leases, Capital [Abstract] | ' | ||||
Schedule of investment in finance leases | ' | ||||
At September 30, 2014, net investment in finance leases consisted of the following: | |||||
Minimum rents receivable | $ | 1,581,576 | |||
Estimated unguaranteed residual value | 360,000 | ||||
Unearned income | (309,324 | ) | |||
$ | 1,632,252 |
Investments_in_Equipment_Subje1
Investments in Equipment Subject to Operating Leases (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Leases, Operating [Abstract] | ' | ||||||||||||
Summary of investments in equipment subject to operating leases | ' | ||||||||||||
The composition of the equipment subject to operating leases in the Echo and Echo II transactions as of September 30, 2014 is as follows: | |||||||||||||
Accumulated | |||||||||||||
Description | Cost | Depreciation | Net Book Value | ||||||||||
Agricultural equipment | $ | 807,235 | $ | 89,418 | $ | 717,817 | |||||||
Aircraft equipment | 2,138,681 | 138,568 | 2,000,113 | ||||||||||
Computer equipment | 1,040,036 | 268,164 | 771,872 | ||||||||||
Forklifts and fuels cells | 7,237,869 | 855,843 | 6,382,026 | ||||||||||
Heavy equipment | 3,047,443 | 323,229 | 2,724,214 | ||||||||||
Industrial | 518,399 | 71,962 | 446,437 | ||||||||||
Machine tools | 556,686 | 52,077 | 504,609 | ||||||||||
Medical | 518,591 | 90,333 | 428,258 | ||||||||||
$ | 15,864,940 | $ | 1,889,594 | $ | 13,975,346 |
Equipment_Notes_Receivable_Tab
Equipment Notes Receivable (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Receivables [Abstract] | ' | ||||
Schedule of future maturity of notes receivable | ' | ||||
The future maturities of the Partnership’s equipment notes receivable at September 30, 2014 are as follows: | |||||
Years ending September 30, | |||||
2015 | $ | 1,167,764 | |||
2016 | 1,035,378 | ||||
2017 | 976,114 | ||||
2018 | 74,326 | ||||
$ | 3,253,582 |
Equipment_Loan_Receivable_Tabl
Equipment Loan Receivable (Tables) | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Equipment Loan Receivable | ' | ||||||
Schedule of equipment loans receivable | ' | ||||||
The composition of the equipment loans receivable in the Echo and Echo II transactions as of September 30, 2014 is as follows: | |||||||
Maturity | |||||||
Description | Date | Balance | |||||
Furniture and fixtures | 6/30/2016 - 04/30/18 | $ | 1,254,710 | ||||
Fitness | 12/31/14 | 16,617 | |||||
Computers | 10/31/2014 - 9/30/17 | 671,951 | |||||
Forklifts and fuels cells | 10/31/14 - 10/31/17 | 4,890,305 | |||||
Aircraft services equipment | 09/30/15 - 12/31/17 | 1,944,346 | |||||
Industrial | 12/31/14 - 10/31/20 | 5,534,133 | |||||
Medical and research equipment | 01/31/15 - 12/31/17 | 2,603,351 | |||||
$ | 16,915,413 | ||||||
Schedule of future maturities of loans receivable | ' | ||||||
The future maturities of the Partnership’s equipment loans receivable at September 30, 2014 are as follows: | |||||||
Years ending September 30, | |||||||
2015 | $ | 4,017,537 | |||||
2016 | 3,290,023 | ||||||
2017 | 3,047,449 | ||||||
2018 | 2,272,347 | ||||||
2019 | 681,815 | ||||||
Thereafter | 3,606,242 | ||||||
$ | 16,915,413 |
Equipment_Notes_Payable_Tables
Equipment Notes Payable (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Disclosure Text Block Supplement [Abstract] | ' | ||||
Schedule of maturities of equipment notes payable | ' | ||||
The future maturities of the Partnership’s equipment notes payable at September 30, 2014 are as follows: | |||||
Years ending September 30, | |||||
2015 | $ | 5,262,753 | |||
2016 | 4,111,768 | ||||
2017 | 2,551,221 | ||||
2018 | 1,537,598 | ||||
2019 | 889,423 | ||||
2020 | — | ||||
$ | 14,352,763 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Schedule of assets measured on a recurring bassis using significant unobservable inputs | ' | ||||||||||||||||||||
The Partnership’s carrying values and approximate fair values of its financial instruments all classified as Level 3 were as follows: | |||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | ||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||
Assets: | |||||||||||||||||||||
Equipment notes receivable, including accrued interest | $ | 3,406,780 | $ | 3,403,737 | $ | 2,692,900 | $ | 2,747,972 | |||||||||||||
Equipment loan receivable, including accrued interest | $ | 16,944,380 | $ | 16,944,380 | $ | 6,550,448 | $ | 6,550,448 | |||||||||||||
Collateralized loan receivable, including accrued interest | $ | 894,642 | $ | 867,585 | $ | 324,519 | $ | 333,487 | |||||||||||||
Liabilities: | |||||||||||||||||||||
Equipment notes payable, including accrued interest | $ | 14,352,763 | $ | 14,352,763 | $ | 8,541,339 | $ | 8,541,339 | |||||||||||||
Loans payable, including accrued Interest | $ | 12,611,583 | $ | 12,483,728 | $ | 6,825,755 | $ | 6,825,755 | |||||||||||||
The following is a reconciliation of the beginning and ending balances for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended September 30, 2014: | |||||||||||||||||||||
Equipment Notes Receivable | Equipment Loan Receivable | Collateralized Loan Receivable | Equipment Notes Payable | Loans Payable | |||||||||||||||||
Estimated fair value, January 1, 2014 | $ | 2,747,972 | $ | 6,550,448 | $ | 333,487 | $ | 8,541,339 | $ | 6,825,755 | |||||||||||
Issuance of additional notes | 803,638 | 12,369,999 | 2,686,056 | 11,447,351 | 9,500,000 | ||||||||||||||||
Total gains (losses) included in earnings: | |||||||||||||||||||||
Interest income | 356,578 | 1,042,928 | 52,802 | — | — | ||||||||||||||||
Interest expense | — | — | — | (554,194 | ) | (856,168 | ) | ||||||||||||||
Repayment of notes and accrued interest | (446,336 | ) | (3,018,995 | ) | (2,168,735 | ) | (5,081,733 | ) | (4,570,340 | ) | |||||||||||
Unrealized appreciation (depreciation) | (58,115 | ) | — | (36,025 | ) | — | 1,584,481 | ||||||||||||||
Estimated fair value, September 30, 2014 | $ | 3,403,737 | $ | 16,944,380 | $ | 867,585 | $ | 14,352,763 | $ | 12,483,728 |
Geographic_Information_Tables
Geographic Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Schedule of geographic information for revenue | ' | ||||||||||||||||
Geographic information for revenue for the three months ended September 30, 2014 and 2013 was as follows: | |||||||||||||||||
Three Months Ended September 30, 2014 | |||||||||||||||||
Revenue: | United States | Europe | Mexico | Total | |||||||||||||
Rental income | $ | 1,294,742 | $ | — | $ | — | $ | 1,294,742 | |||||||||
Finance income | $ | 38,343 | $ | 23,527 | $ | — | $ | 61,870 | |||||||||
Interest income | $ | 607,924 | $ | — | $ | 128,846 | $ | 736,770 | |||||||||
Gain on sale of assets | $ | 466,482 | $ | — | $ | — | $ | 466,482 | |||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||
Revenue: | United States | Europe | Mexico | Total | |||||||||||||
Rental income | $ | — | $ | — | $ | — | $ | — | |||||||||
Finance income | $ | — | $ | — | $ | — | $ | — | |||||||||
Interest income | $ | 9,784 | $ | — | $ | — | $ | 9,784 | |||||||||
Other income | $ | — | $ | — | $ | — | $ | — | |||||||||
Geographic information for revenue for the nine months ended September 30, 2014 and 2013 was as follows: | |||||||||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||||||
Revenue: | United States | Europe | Mexico | Total | |||||||||||||
Rental income | $ | 3,427,328 | $ | — | $ | — | $ | 3,427,328 | |||||||||
Finance income | $ | 79,175 | $ | 60,882 | $ | — | $ | 140,057 | |||||||||
Interest income | $ | 1,371,661 | $ | — | $ | 265,237 | $ | 1,636,898 | |||||||||
Gain on sale of assets | $ | 469,595 | $ | — | $ | — | $ | 469,595 | |||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||
Revenue: | United States | Europe | Mexico | Total | |||||||||||||
Interest income | $ | 9,913 | $ | — | $ | — | $ | 9,913 | |||||||||
Other income | $ | 1,000 | $ | — | $ | — | $ | 1,000 | |||||||||
Schedule of geographic information for long-lived assets | ' | ||||||||||||||||
Geographic information for long-lived assets at September 30, 2014 and December 31, 2013 was as follows: | |||||||||||||||||
30-Sep-14 | |||||||||||||||||
Long-lived assets: | United States | Europe | Mexico | Total | |||||||||||||
Investment in finance leases, net | $ | 1,401,906 | $ | 230,346 | $ | — | $ | 1,632,252 | |||||||||
Investments in equipment subject to operating leases, net | $ | 13,975,346 | $ | — | $ | — | $ | 13,975,346 | |||||||||
Equipment notes receivable, including accrued interest | $ | 743,966 | $ | — | $ | 2,662,814 | $ | 3,406,780 | |||||||||
Equipment loans receivable, including accrued interest | $ | 16,944,380 | $ | — | $ | — | $ | 16,944,380 | |||||||||
Collateralized loan receivable, including accrued interest | $ | 894,642 | $ | — | $ | — | $ | 894,642 | |||||||||
31-Dec-13 | |||||||||||||||||
Long-lived assets: | United States | Europe | Mexico | Total | |||||||||||||
Investment in finance leases, net | $ | — | $ | — | $ | — | $ | — | |||||||||
Investments in equipment subject to operating leases, net | $ | 11,165,590 | $ | — | $ | — | $ | 11,165,590 | |||||||||
Equipment notes receivable, including accrued interest | $ | 402,088 | $ | — | $ | 2,290,812 | $ | 2,692,900 | |||||||||
Equipment loans receivable, including accrued interest | $ | 6,550,448 | $ | — | $ | — | $ | 6,550,448 | |||||||||
Collateralized loan receivable, including accrued interest | $ | 324,519 | $ | — | $ | — | $ | 324,519 |
Nature_of_Operations_and_Organ1
Nature of Operations and Organization (Details Narrative) (USD $) | 9 Months Ended | 0 Months Ended | 9 Months Ended | 16 Months Ended | 1 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | |||||||
Sep. 30, 2014 | Dec. 31, 2013 | Oct. 01, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Feb. 28, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 20, 2013 | Feb. 28, 2014 | Dec. 31, 2013 | Mar. 26, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Mar. 28, 2014 | Mar. 26, 2014 | Jun. 30, 2014 | |
Limited Partner [Member] | Limited Partner [Member] | Limited Partner [Member] | SQN Echo LLC [Member] | SQN Echo LLC [Member] | SQN Echo LLC [Member] | SQN Echo LLC [Member] | SQN Echo LLC [Member] | SQN Echo LLC [Member] | SQN Echo II [Member] | SQN Echo II [Member] | SQN Echo II [Member] | SQN Echo II [Member] | SQN Echo II [Member] | SQN Echo II [Member] | |||
N | Informage SQN Technologies LLC [Member] | Informage SQN Technologies LLC [Member] | N | Informage SQN Technologies LLC [Member] | Informage SQN Technologies LLC [Member] | ||||||||||||
Maximum amount to be raised in offering | $200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pecentage of ownership | ' | ' | ' | ' | ' | ' | 80.00% | ' | ' | ' | 20.00% | 80.00% | ' | ' | ' | 20.00% | ' |
Partnership contribution made | ' | ' | ' | ' | ' | 480,000 | 2,200,000 | ' | ' | 120,000 | 550,000 | 800,000 | 600,000 | ' | ' | 200,000 | 150,000 |
Number of portfolios purchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' |
Purchase of leases portfolio - unrelated third party | ' | ' | ' | ' | ' | ' | ' | ' | 17,800,000 | ' | ' | ' | ' | ' | 21,863,000 | ' | ' |
Cash payment for lease | ' | ' | ' | ' | ' | ' | ' | ' | 9,300,000 | ' | ' | ' | ' | ' | 10,415,000 | ' | ' |
Non-recourse debt for lease | ' | ' | ' | ' | ' | ' | ' | 8,500,000 | 8,500,000 | ' | ' | ' | ' | 11,400,000 | 11,447,000 | ' | ' |
Percentage of targeted cash distribution | ' | ' | ' | 6.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of targeted cash distribution, quarterly percentage | ' | ' | ' | 1.63% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash distribution paid, percentage | ' | ' | ' | 7.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital distribution | -825,883 | ' | 53,700 | 817,706 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distributions payable to General Partner | 8,714 | 537 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of partners units | ' | ' | ' | ' | 20,702,801 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of partners | ' | ' | ' | ' | 351 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total capital contributions | ' | ' | ' | 21,858,101 | 21,858,101 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of capital units outstanding | ' | ' | ' | 21,858.10 | 21,858.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Portion capital contributions for sales commission | ' | ' | ' | $1,155,300 | $1,155,300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Portion sale of units for sales commission (in units) | ' | ' | ' | 1,155.30 | 1,155.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details Narrative) (USD $) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2014 | Sep. 30, 2014 | |
Maximum percentage of average management fee | 2.00% | 2.00% |
SQN Capital Management, LLC [Member] | ' | ' |
Description of management fee | ' | '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. |
Offering expenses paid | $375,000 | $1,125,000 |
Percentage of gross proceeds of offering - underwiting fees | ' | 3.00% |
SQN AIF IV GP, LLC [Member] | ' | ' |
Percentage of promotional interest | ' | 20.00% |
Percentage of cumulative return on capital contributions | ' | 8.00% |
Percentage interest in profits, losses and distributions of the partnership | ' | 1.00% |
Percentage of distributed distributable cash received by general partner | ' | 1.00% |
Related_Party_Transactions_Det1
Related Party Transactions (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
Underwriting fees earned by Securities | $409,689 | ' |
SQN Securities, LLC [Member] | ' | ' |
Balance, beginning | 10,797 | ' |
Underwriting fees earned by Securities | 409,689 | 196,395 |
Payments by the Partnership to Securities | -420,486 | -185,598 |
Balance, ending | ' | $10,797 |
Related_Party_Transactions_Det2
Related Party Transactions (Details 1) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Underwriting discount incurred by the Partnership | $615,140 |
Underwriting fees earned by Securities | 409,689 |
Fees paid to outside brokers | 383,861 |
Total underwriting fees | $1,408,690 |
Investments_in_Finance_Leases_1
Investments in Finance Leases (Details Narrative) | 9 Months Ended | 0 Months Ended | 0 Months Ended | |||||||
Sep. 30, 2014 | Jul. 31, 2014 | Mar. 28, 2014 | Jul. 31, 2014 | Mar. 28, 2014 | Mar. 31, 2014 | Sep. 30, 2014 | Mar. 28, 2014 | Mar. 28, 2014 | Mar. 28, 2014 | |
USD ($) | Wind Turbine Financing Lease [Member] | Wind Turbine Financing Lease [Member] | Wind Turbine Financing Lease [Member] | Wind Turbine Financing Lease [Member] | Medical Equipment Financing Lease 4 [Member] | Medical Equipment Financing Lease 4 [Member] | SQN Echo LLC [Member] | SQN Echo LLC [Member] | SQN Echo LLC [Member] | |
USD ($) | USD ($) | GBP [Member] | GBP [Member] | USD ($) | USD ($) | Medical Equipment Financing Lease 1 [Member] | Medical Equipment Financing Lease 2 [Member] | Medical Equipment Financing Lease 3 [Member] | ||
GBP (£) | GBP (£) | USD ($) | USD ($) | USD ($) | ||||||
Purchase price | ' | ' | $683,455 | ' | £ 409,377 | $247,920 | ' | ' | ' | ' |
Lease term | ' | ' | '25 quarters | ' | ' | '48 months | ' | '37 months | '37 months | '32 months |
Monthly lease payments | ' | ' | ' | ' | ' | ' | 7,415 | 4,846 | ' | 14,456 |
First tier monthly lease payments | ' | ' | ' | ' | ' | ' | ' | ' | 32,416 | ' |
Number of months for first tier payments | ' | ' | ' | ' | ' | ' | ' | ' | '13 months | ' |
Second tier monthly lease payments | ' | ' | ' | ' | ' | ' | ' | ' | 22,606 | ' |
Number of months for second tier payments | ' | ' | ' | ' | ' | ' | ' | ' | '24 months | ' |
Quarterly lease payments | ' | ' | 38,647 | ' | 23,150 | ' | ' | ' | ' | ' |
Proceeds from sale of leased assets | 2,494,487 | 742,110 | ' | 438,366 | ' | ' | ' | ' | ' | ' |
Net book value of lease at time of sale | ' | 685,688 | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on sale of investments in finance leases | ' | $56,422 | ' | ' | ' | ' | ' | ' | ' | ' |
Investments_in_Finance_Leases_2
Investments in Finance Leases (Details) (USD $) | Sep. 30, 2014 |
Investment, Finance Leases | ' |
Minimum rents receivable | $1,581,576 |
Estimated unguaranteed residual value | 360,000 |
Unearned income | -309,324 |
Total investment in finance leases | $1,632,252 |
Investments_in_Equipment_Subje2
Investments in Equipment Subject to Operating Leases (Details Narrative) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2014 | Mar. 28, 2014 | Dec. 20, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | |
Property Subject to Operating Lease [Member] | Property Subject to Operating Lease [Member] | Property Subject to Operating Lease [Member] | Property Subject to Operating Lease [Member] | |||
N | N | N | N | |||
Purchase price | ' | ' | $21,863,000 | $17,800,000 | ' | ' |
Assets subject to operating leases acquired | ' | ' | 7,800,000 | 11,200,000 | ' | ' |
Number of operating lease schedules sold | ' | ' | ' | ' | 9 | 2 |
Proceeds from sale of leased assets | ' | 2,494,487 | ' | ' | 1,444,694 | 281,405 |
Net book value of lease at time of sale | ' | ' | ' | ' | 1,925,158 | 644,184 |
Debt sold | ' | ' | ' | ' | 819,726 | 399,827 |
Gain (loss) on sale of assets | 466,482 | 469,595 | ' | ' | 376,322 | 37,048 |
Number of portfolios purchased | ' | ' | 2 | 2 | ' | ' |
Receivable due for sale of assets | ' | ' | ' | ' | 37,060 | ' |
Depreciation expense | $846,586 | $2,268,327 | ' | ' | ' | ' |
Investments_in_Equipment_Subje3
Investments in Equipment Subject to Operating Leases (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Net Book Value | $13,975,346 | $11,165,590 |
SQN Echo II And SQN Echo LLC [Member] | ' | ' |
Cost Basis | 15,864,940 | ' |
Accumulated Depreciation | 1,889,594 | ' |
Net Book Value | 13,975,346 | ' |
SQN Echo II And SQN Echo LLC [Member] | Agricultural Equipment [Member] | ' | ' |
Cost Basis | 807,235 | ' |
Accumulated Depreciation | 89,418 | ' |
Net Book Value | 717,817 | ' |
SQN Echo II And SQN Echo LLC [Member] | Aircraft Equipment [Member] | ' | ' |
Cost Basis | 2,138,681 | ' |
Accumulated Depreciation | 138,568 | ' |
Net Book Value | 2,000,113 | ' |
SQN Echo II And SQN Echo LLC [Member] | Computers [Member] | ' | ' |
Cost Basis | 1,040,036 | ' |
Accumulated Depreciation | 268,164 | ' |
Net Book Value | 771,872 | ' |
SQN Echo II And SQN Echo LLC [Member] | Forklifts And Fuels Cells [Member] | ' | ' |
Cost Basis | 7,237,869 | ' |
Accumulated Depreciation | 855,843 | ' |
Net Book Value | 6,382,026 | ' |
SQN Echo II And SQN Echo LLC [Member] | Heavy Equipment [Member] | ' | ' |
Cost Basis | 3,047,443 | ' |
Accumulated Depreciation | 323,229 | ' |
Net Book Value | 2,724,214 | ' |
SQN Echo II And SQN Echo LLC [Member] | Industrial [Member] | ' | ' |
Cost Basis | 518,399 | ' |
Accumulated Depreciation | 71,962 | ' |
Net Book Value | 446,437 | ' |
SQN Echo II And SQN Echo LLC [Member] | Machine tools [Member] | ' | ' |
Cost Basis | 556,686 | ' |
Accumulated Depreciation | 52,077 | ' |
Net Book Value | 504,609 | ' |
SQN Echo II And SQN Echo LLC [Member] | Medical [Member] | ' | ' |
Cost Basis | 518,591 | ' |
Accumulated Depreciation | 90,333 | ' |
Net Book Value | $428,258 | ' |
Equipment_Notes_Receivable_Det
Equipment Notes Receivable (Details Narrative) (USD $) | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended |
Sep. 30, 2014 | Jun. 28, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | 9-May-14 | Sep. 27, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Oct. 15, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | 2-May-14 | Sep. 30, 2014 | Sep. 30, 2014 | |
Medical Equipment Promissory Note [Member] | Medical Equipment Promissory Note [Member] | Medical Equipment Promissory Note [Member] | Mineral Equipment Loan Facility [Member] | Mineral Equipment Loan Facility [Member] | Mineral Equipment Loan Facility [Member] | Mineral Equipment Loan Facility [Member] | Manufacturing Equipment Loan Facility [Member] | Manufacturing Equipment Loan Facility [Member] | Manufacturing Equipment Loan Facility [Member] | Brake Manufacturing Equipment Notes Receivable [Member] | Brake Manufacturing Equipment Notes Receivable [Member] | Brake Manufacturing Equipment Notes Receivable [Member] | ||
Note receivable | ' | $150,000 | ' | ' | $500,000 | $3,000,000 | ' | ' | $300,000 | ' | ' | $432,000 | $397,530 | $397,530 |
Loan facility term | ' | '36 months | ' | ' | '41 months | '48 months | ' | ' | '29 months | ' | ' | ' | ' | ' |
Frequency of periodic payment | ' | 'Monthly | ' | ' | 'Monthly | 'Monthly | ' | ' | 'Monthly | ' | ' | 'Quarterly | ' | ' |
Loan facility periodic payment | ' | 5,100 | ' | ' | 15,764 | 68,718 | ' | ' | 12,834 | ' | ' | 34,786 | ' | ' |
Loan facility periodic payment, before additional fundings | ' | ' | ' | ' | ' | 69,577 | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income | ' | ' | 3,548 | 11,874 | ' | ' | 128,846 | 289,429 | ' | 9,341 | 31,663 | ' | 12,624 | 23,470 |
Advances to loan issuer | ' | ' | ' | ' | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Loan facility balloon payment | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity date | ' | ' | ' | ' | ' | 30-Sep-17 | ' | ' | ' | ' | ' | 31-Jan-18 | ' | ' |
Description of loan facility collateral | ' | 'Medical equipment and other personal property at borrowers principal place of business | ' | ' | 'Equipment that refines precious metals and other minerals; guaranteed by its two majority shareholders | 'Equipment that refines precious metals and other minerals | ' | ' | 'Manufacturing equipment | ' | ' | 'Brake manufacturing equipment | ' | ' |
Effective interest rate | ' | ' | ' | ' | ' | 23.25% | ' | ' | ' | ' | ' | ' | ' | ' |
Payments received for notes receivable | 1,985,352 | ' | ' | ' | 156,898 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds transferred to lessee | ' | ' | ' | ' | $343,102 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.50% | ' | ' |
Equipment_Notes_Receivable_Det1
Equipment Notes Receivable (Details) (USD $) | Sep. 30, 2014 |
Future payments due in year ending March 31, | ' |
2015 | $1,167,764 |
2016 | 1,035,378 |
2017 | 976,114 |
2018 | 74,326 |
Total | $3,253,582 |
Equipment_Loan_Receivable_Deta
Equipment Loan Receivable (Details Narrative) (USD $) | Sep. 30, 2014 | Dec. 20, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 20, 2013 | Sep. 30, 2014 | Mar. 28, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 28, 2014 |
SQN Echo LLC [Member] | SQN Echo LLC [Member] | SQN Echo LLC [Member] | SQN Echo LLC [Member] | SQN Echo LLC [Member] | SQN Echo II [Member] | SQN Echo II [Member] | SQN Echo II [Member] | SQN Echo II [Member] | SQN Echo II [Member] | |
Unrelated Third Party [Member] | Unrelated Third Party [Member] | Unrelated Third Party [Member] | Unrelated Third Party [Member] | Unrelated Third Party [Member] | Unrelated Third Party [Member] | Unrelated Third Party [Member] | Unrelated Third Party [Member] | |||
2nd Portfolios Operating Leases [Member] | 2nd Portfolios Operating Leases [Member] | |||||||||
Lease payment | ' | $17,800,000 | ' | ' | $6,600,000 | ' | $21,863,000 | ' | ' | $12,400,000 |
Maturity date | ' | 31-Oct-17 | ' | ' | ' | ' | 31-Oct-17 | ' | ' | ' |
Interest rate | 10.00% | 10.00% | ' | ' | 10.00% | 10.00% | 10.00% | ' | ' | ' |
Interest income | ' | ' | $136,909 | $415,372 | ' | ' | ' | $298,317 | $627,555 | ' |
Equipment_Loan_Receivable_Deta1
Equipment Loan Receivable (Details) (SQN Echo II And SQN Echo LLC [Member], USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Maturity Date | 31-Dec-20 |
Balance | $16,915,413 |
Furniture And Fixtures [Member] | ' |
Maturity Date, Lower Range | 30-Jun-16 |
Maturity Date, Upper Range | 30-Apr-18 |
Balance | 1,254,710 |
Fitness [Member] | ' |
Maturity Date | 31-Dec-14 |
Balance | 16,617 |
Computers [Member] | ' |
Maturity Date, Lower Range | 31-Oct-14 |
Maturity Date, Upper Range | 30-Sep-17 |
Balance | 671,951 |
Forklifts And Fuels Cells [Member] | ' |
Maturity Date, Lower Range | 31-Oct-14 |
Maturity Date, Upper Range | 31-Oct-17 |
Balance | 4,890,305 |
Aircraft Equipment [Member] | ' |
Maturity Date, Lower Range | 30-Sep-15 |
Maturity Date, Upper Range | 31-Dec-17 |
Balance | 1,944,346 |
Industrial [Member] | ' |
Maturity Date, Lower Range | 31-Dec-14 |
Maturity Date, Upper Range | 31-Oct-20 |
Balance | 5,534,133 |
Medical [Member] | ' |
Maturity Date, Lower Range | 31-Jan-15 |
Maturity Date, Upper Range | 31-Dec-17 |
Balance | $2,603,351 |
Equipment_Loan_Receivable_Deta2
Equipment Loan Receivable (Details 1) (SQN Echo II And SQN Echo LLC [Member], USD $) | Sep. 30, 2014 |
SQN Echo II And SQN Echo LLC [Member] | ' |
Maturities of equipment loans receivable | ' |
2015 | $4,017,537 |
2016 | 3,290,023 |
2017 | 3,047,449 |
2018 | 2,272,347 |
2019 | 681,815 |
2020 | 3,606,242 |
Total future maturities of partnership's loans receivable | $16,915,413 |
Residual_Value_Investment_in_E1
Residual Value Investment in Equipment on Lease (Details Narrative) (USD $) | Sep. 30, 2014 | Sep. 15, 2014 |
Purchased residual value interest | $402,976 | ' |
Original equipment cost | ' | 20,000,000 |
Percentage financing | ' | 15.00% |
Loan Agreement Unrelated Third Party [Member] | ' | ' |
Purchased residual value interest | ' | 17,000,000 |
Percentage financing | ' | 85.00% |
Maximum [Member] | ' | ' |
Purchased residual value interest | ' | $3,000,000 |
Collateralized_Loan_Receivable1
Collateralized Loan Receivable (Details Narrative) (USD $) | 9 Months Ended | 0 Months Ended | |||
Sep. 30, 2014 | Jul. 15, 2014 | Nov. 27, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | |
Loan Agreement Unrelated Third Party [Member] | Loan Agreement Unrelated Third Party [Member] | Loan Agreement Unrelated Third Party [Member] | Loan Agreement Unrelated Third Party [Member] | ||
Advances to loan issuer | ' | ' | $500,000 | ' | ' |
Description of maximum borrowing | ' | 'Any date to $1,000,000 | 'Lesser of $500,000 and 50% of the borrowerBs eligible receivables due within 90 days of the advance date | ' | ' |
Interest rate | ' | ' | 15.00% | ' | ' |
Cash received from collateralized loan receivable | 2,145,086 | ' | ' | ' | ' |
Outstanding advance | ' | ' | ' | $862,970 | $322,200 |
Investment_in_Informage_SQN_Te1
Investment in Informage SQN Technologies LLC (Details) (Informage SQN Technologies LLC [Member], USD $) | 0 Months Ended |
Aug. 01, 2014 | |
Pecentage of ownership | 24.50% |
Additional capital contributions | $3,850,000 |
Unrelated Third Party [Member] | ' |
Pecentage of ownership | 51.00% |
Equipment_Notes_Payable_Detail
Equipment Notes Payable (Details Narrative) (USD $) | Sep. 30, 2014 | Dec. 20, 2013 | Sep. 30, 2014 | Mar. 28, 2014 | Sep. 30, 2014 |
SQN Echo LLC [Member] | SQN Echo LLC [Member] | SQN Echo II [Member] | SQN Echo II [Member] | SQN Echo II And SQN Echo LLC [Member] | |
Non-recourse debt | $8,500,000 | $8,500,000 | $11,400,000 | $11,447,000 | ' |
Interest rate,minimum | ' | ' | ' | ' | 2.75% |
Interest rate,maximum | ' | ' | ' | ' | 9.25% |
Maturity Date | ' | ' | ' | ' | 31-Dec-20 |
Equipment_Notes_Payable_Detail1
Equipment Notes Payable (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Maturities on notes payable due in year ending March 31, | ' | ' |
2015 | $5,262,753 | ' |
2016 | 4,111,768 | ' |
2017 | 2,551,221 | ' |
2018 | 1,537,598 | ' |
2019 | 889,423 | ' |
Future maturities of equipment notes payable | $14,352,763 | $8,541,339 |
Loan_Payable_Details
Loan Payable (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 |
SQN Echo LLC [Member] | SQN Echo II [Member] | |||
Loan facility | ' | ' | $6,800,000 | $9,500,000 |
Stated interest rate | ' | ' | 10.00% | 10.00% |
Description of interest rate terms | ' | ' | 'Interest accruing at 10% per annum through July 1, 2014 then at 9% per annum. | 'Interest accruing at 10% per annum through February 28, 2014 then at 8.9% per annum. |
Loan facility balloon payment | ' | ' | 600,000 | 817,525 |
Loan payable | $12,611,583 | $6,825,755 | $4,344,233 | $8,241,595 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Assets | ' | ' |
Equipment notes receivable, including accrued interest | $3,406,780 | $2,692,900 |
Equipment loans receivable, including accrued interest | 16,944,380 | 6,550,448 |
Collateralized loan recievable, including accrued interest | 894,642 | 324,519 |
Liabilities: | ' | ' |
Equipment notes payable, non-recourse | 14,352,763 | 8,541,339 |
Loans payable, including accrued interest | 12,611,583 | 6,825,755 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Assets | ' | ' |
Equipment notes receivable, including accrued interest | 3,403,737 | 2,747,972 |
Equipment loans receivable, including accrued interest | 16,944,380 | 6,550,448 |
Collateralized loan recievable, including accrued interest | 867,585 | 333,487 |
Liabilities: | ' | ' |
Equipment notes payable, non-recourse | 14,352,763 | 8,541,339 |
Loans payable, including accrued interest | $12,483,728 | $6,825,755 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Total gains (losses) included in earnings: | ' | ' | ' | ' |
Interest income | $736,770 | $9,784 | $1,636,898 | $9,913 |
Interest expense | 674,407 | ' | 1,649,063 | 3,610 |
Fair Value, Inputs, Level 3 [Member] | Equipment Note Receivable [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Beginning balance | ' | ' | 2,747,972 | ' |
Issuance of additional note | ' | ' | 803,638 | ' |
Total gains (losses) included in earnings: | ' | ' | ' | ' |
Interest income | ' | ' | 356,578 | ' |
Repayment of notes and accrued interest | ' | ' | -446,336 | ' |
Unrealized appreciation (depreciation) | ' | ' | -58,115 | ' |
Ending balance | 3,403,737 | ' | 3,403,737 | ' |
Fair Value, Inputs, Level 3 [Member] | Equipment Loan Receivable [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Beginning balance | ' | ' | 6,550,448 | ' |
Issuance of additional note | ' | ' | 12,369,999 | ' |
Total gains (losses) included in earnings: | ' | ' | ' | ' |
Interest income | ' | ' | 1,042,928 | ' |
Repayment of notes and accrued interest | ' | ' | -3,018,995 | ' |
Ending balance | 16,499,380 | ' | 16,499,380 | ' |
Fair Value, Inputs, Level 3 [Member] | Collatralized Loan Receivable [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Beginning balance | ' | ' | 333,487 | ' |
Issuance of additional note | ' | ' | 2,686,056 | ' |
Total gains (losses) included in earnings: | ' | ' | ' | ' |
Interest income | ' | ' | 52,802 | ' |
Repayment of notes and accrued interest | ' | ' | -2,168,735 | ' |
Unrealized appreciation (depreciation) | ' | ' | -36,025 | ' |
Ending balance | 867,585 | ' | 867,585 | ' |
Fair Value, Inputs, Level 3 [Member] | Equipment Notes Payable [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Beginning balance | ' | ' | 8,541,339 | ' |
Issuance of additional note | ' | ' | 11,447,351 | ' |
Total gains (losses) included in earnings: | ' | ' | ' | ' |
Interest expense | ' | ' | -554,194 | ' |
Repayment of notes and accrued interest | ' | ' | -5,081,733 | ' |
Ending balance | 14,352,763 | ' | 14,352,763 | ' |
Fair Value, Inputs, Level 3 [Member] | Loans Payable [Member] | ' | ' | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Beginning balance | ' | ' | 6,825,755 | ' |
Issuance of additional note | ' | ' | 9,500,000 | ' |
Total gains (losses) included in earnings: | ' | ' | ' | ' |
Interest expense | ' | ' | -856,168 | ' |
Repayment of notes and accrued interest | ' | ' | -4,570,340 | ' |
Unrealized appreciation (depreciation) | ' | ' | 1,584,481 | ' |
Ending balance | $12,483,728 | ' | $12,483,728 | ' |
Business_Concentrations_Detail
Business Concentrations (Details Narrative) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Revenue [Member] | Operating leases - A [Member] | ' | ' |
Concentration risk | 25.00% | ' |
Revenue [Member] | Operating leases - B [Member] | ' | ' |
Concentration risk | 11.00% | ' |
Revenue [Member] | Finance Leases - A [Member] | ' | ' |
Concentration risk | 17.00% | ' |
Revenue [Member] | Finance Leases - B [Member] | ' | ' |
Concentration risk | 16.00% | ' |
Revenue [Member] | Finance Leases - C [Member] | ' | ' |
Concentration risk | 11.00% | ' |
Investments [Member] | Operating leases - A [Member] | ' | ' |
Concentration risk | 21.00% | 100.00% |
Investments [Member] | Operating leases - B [Member] | ' | ' |
Concentration risk | 16.00% | ' |
Investments [Member] | Finance Leases - A [Member] | ' | ' |
Concentration risk | 47.00% | ' |
Investments [Member] | Finance Leases - B [Member] | ' | ' |
Concentration risk | 25.00% | ' |
Investments [Member] | Finance Leases - C [Member] | ' | ' |
Concentration risk | 19.00% | ' |
Investments [Member] | Equipment Notes - A [Member] | ' | ' |
Concentration risk | 78.00% | 86.00% |
Investments [Member] | Equipment Notes - B [Member] | ' | ' |
Concentration risk | 12.00% | ' |
Geographic_Information_Details
Geographic Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Geographic information for revenue | ' | ' | ' | ' |
Rental income | $1,294,742 | ' | $3,427,328 | ' |
Finance income | 61,870 | ' | 140,057 | ' |
Interest income | 736,770 | 9,784 | 1,636,898 | 9,913 |
Gain on sale of assets | 466,482 | ' | 469,595 | ' |
Other income | ' | ' | ' | 1,000 |
United States [Member] | ' | ' | ' | ' |
Geographic information for revenue | ' | ' | ' | ' |
Rental income | 1,294,742 | ' | 3,427,328 | ' |
Finance income | 38,343 | ' | 79,175 | ' |
Interest income | 607,924 | 9,784 | 1,371,661 | 9,913 |
Gain on sale of assets | 466,482 | ' | 469,595 | ' |
Other income | ' | ' | ' | 1,000 |
Europe [Member] | ' | ' | ' | ' |
Geographic information for revenue | ' | ' | ' | ' |
Finance income | 23,527 | ' | 60,882 | ' |
Mexico [Member] | ' | ' | ' | ' |
Geographic information for revenue | ' | ' | ' | ' |
Interest income | 128,846 | ' | 265,237 | ' |
Gain on sale of assets | $128,846 | ' | ' | ' |
Geographic_Information_Details1
Geographic Information (Details 1) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Long-lived assets: | ' | ' |
Investments in finance leases, net | $1,632,252 | ' |
Investments in equipment subject to operating leases, net | 13,975,346 | 11,165,590 |
Equipment notes receivable, including accrued interest | 3,406,780 | 2,692,900 |
Equipment loans receivable, including accrued interest | 16,944,380 | 6,550,448 |
Collateralized loan receivable, including accrued interest | 894,642 | 324,519 |
United States [Member] | ' | ' |
Long-lived assets: | ' | ' |
Investments in finance leases, net | 1,401,906 | 230,246 |
Investments in equipment subject to operating leases, net | 13,975,346 | ' |
Equipment notes receivable, including accrued interest | 743,966 | ' |
Equipment loans receivable, including accrued interest | 16,944,380 | ' |
Collateralized loan receivable, including accrued interest | 894,642 | ' |
Europe [Member] | ' | ' |
Long-lived assets: | ' | ' |
Investments in equipment subject to operating leases, net | ' | 11,165,590 |
Equipment notes receivable, including accrued interest | 2,662,814 | 402,088 |
Equipment loans receivable, including accrued interest | ' | 6,550,448 |
Collateralized loan receivable, including accrued interest | ' | 324,519 |
Mexico [Member] | ' | ' |
Long-lived assets: | ' | ' |
Equipment notes receivable, including accrued interest | ' | $2,290,812 |
Subsequent_Events_Details_Narr
Subsequent Events (Details Narrative) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Purchase in residual value investments of equipment on lease | $402,976 | ' |
Cash received from Limited Partner capital contributions | 14,271,451 | 4,334,460 |
Cash paid for underwriting fees | -1,408,690 | -105,271 |
Subsequent Event [Member] | ' | ' |
Cash distribution paid, percentage | 7.10% | ' |
Purchase in residual value investments of equipment on lease | 1,162,511 | ' |
Number of partners | 51 | ' |
Cash received from Limited Partner capital contributions | 1,888,770 | ' |
Limited Partner capital contributions | 1,958,587 | ' |
Limited Partner capital contributions (in units) | 1,958.59 | ' |
Cash paid for underwriting fees | 56,663 | ' |
Portion capital contributions for sales commission | $67,284 | ' |