Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended | |
Dec. 31, 2014 | Mar. 31, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | SQN AIF IV, L.P. | |
Entity Central Index Key | 1560046 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Document Type | 10-K | |
Document Period End Date | 31-Dec-14 | |
Document Fiscal Year Focus | 2014 | |
Document Fiscal Period Focus | FY | |
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 | 31,550.89 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Assets | ||
Cash and cash equivalents | $4,035,214 | $146,340 |
Investments in finance leases, net | 1,492,778 | |
Investments in equipment subject to operating leases, net | 14,265,326 | 11,165,590 |
Equipment notes receivable, including accrued interest of $22,488 and $4,102 | 4,341,220 | 2,692,900 |
Equipment loan receivable, including accrued interest of $30,448 and $19,682 | 11,429,927 | 6,550,448 |
Residual value investment in equipment on lease | 2,192,362 | |
Initial direct costs, net of accumulated amortization of $199,396 and $16,052 | 313,688 | 316,448 |
Collateralized loan receivable, including accrued interest of $0 and $2,519 | 324,519 | |
Investment in Informage SQN Technologies LLC | 1,231,792 | |
Other assets | 4,237,124 | 127,500 |
Total Assets | 43,539,431 | 21,323,745 |
Liabilities and Partner's Equity | ||
Equipment notes payable, non-recourse | 10,380,386 | 8,541,339 |
Loans payable, including accrued interest of $0 and $25,755 | 11,304,675 | 6,825,755 |
Accounts payable and accrued liabilities | 178,713 | 217,404 |
Unearned income | 82,024 | |
Distributions payable to Limited Partners | 429,140 | |
Distributions payable to General Partner | 13,005 | 537 |
Due to SQN Securities, LLC | 10,797 | |
Security deposits payable | 12,324 | |
Total liabilities | 22,318,243 | 15,677,856 |
Commitments and contingencies | ||
Partners' Equity (Deficit): | ||
Limited Partner | 20,083,196 | 5,099,313 |
General Partner | -23,339 | -9,119 |
Total Partners' Equity attributable to the Partnership | 20,059,857 | 5,090,194 |
Non-controlling interests in consolidated entities | 1,161,331 | 555,695 |
Total Equity | 21,221,188 | 5,645,889 |
Total Liabilities and Partner's Equity | $43,539,431 | $21,323,745 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Accumulated amortization of initial direct costs | $199,396 | $16,052 |
Accrued interest payable | 0 | 25,755 |
Equipment Notes Receivable [Member] | ||
Accrued interest receivable | 22,488 | 4,102 |
Equipment Loan Receivable [Member] | ||
Accrued interest receivable | 30,448 | 19,682 |
Collateralized Loans Receivable [Member] | ||
Accrued interest receivable | $0 | $2,519 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue: | ||
Rental income | $4,619,188 | $127,501 |
Finance income | 192,438 | |
Interest income | 2,409,283 | 170,263 |
Investment income from equity method investment | 12,701 | |
Gain on sale of assets | 160,000 | |
Other income | 6,300 | 1,000 |
Total Revenue | 7,399,910 | 298,764 |
Expenses: | ||
Management fees - Investment Manager | 1,500,000 | 875,000 |
Depreciation and amortization | 3,193,750 | 77,951 |
Professional fees | 270,676 | 147,556 |
Organizational expenses | 20,000 | |
Acquisition costs | 57,381 | 4,260 |
Administration expense | 45,535 | 10,421 |
Interest expense | 2,268,414 | 25,755 |
Other expenses | 45,648 | 283 |
Foreign currency transaction losses | 58,088 | |
Total Expenses | 7,439,492 | 1,161,226 |
Net loss | -39,582 | -862,462 |
Net income attributable to non-controlling interest in consolidated entities | 135,636 | 5,695 |
Net loss attributable to the Partnership | -175,218 | -868,157 |
Net loss attributable to the Partnership: | ||
Limited Partners | -173,466 | -859,475 |
General Partner | -1,752 | -8,682 |
Net loss attributable to the Partnership | ($175,218) | ($868,157) |
Weighted average number of limited partnership interests outstanding (in units) | 16,301.74 | 3,940.39 |
Net loss attributable to Limited Partners per weighted average number of limited partnership interests outstanding (in dollars per unit) | ($10.64) | ($218.12) |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Partners' Equity (USD $) | Limited Partnership Interests [Member] | Total | General Partner [Member] | Limited Partners [Member] | Noncontrolling Interest [Member] |
Balance, beginning at Dec. 31, 2012 | $1,100 | $100 | $1,000 | ||
Balance, beginning (in units) at Dec. 31, 2012 | 1 | ||||
Limited Partner capital contributions | 7,586,650 | 7,586,650 | |||
Limited Partner capital contributions (in units) | 7,586.65 | ||||
Non-controlling interest contribution to consolidated entities | 550,000 | 550,000 | |||
Offering expenses | -830,391 | -830,391 | |||
Underwriting fees | -743,765 | -743,765 | |||
Net income (loss) | -862,462 | -8,682 | -859,475 | 5,695 | |
Distributions to partners | -54,243 | -537 | -53,706 | ||
Redemption of initial Limited Partners' contribution | -1,000 | -1,000 | |||
Balance, ending at Dec. 31, 2013 | 5,645,889 | -9,119 | 5,099,313 | 555,695 | |
Balance, ending (in units) at Dec. 31, 2013 | 7,587.65 | ||||
Limited Partner capital contributions | 18,856,356 | 18,856,356 | |||
Limited Partner capital contributions (in units) | 18,856.36 | ||||
Non-controlling interest contribution to consolidated entities | 470,000 | 470,000 | |||
Offering expenses | -491,043 | -491,043 | |||
Underwriting fees | -1,863,935 | -1,863,935 | |||
Net income (loss) | -39,582 | -1,752 | -173,466 | 156,187 | |
Distributions to partners | -1,259,314 | -12,468 | -1,246,846 | ||
Redemption of initial Limited Partners' contribution | -97,183 | -97,183 | |||
Balance, ending at Dec. 31, 2014 | $21,221,188 | ($23,339) | $20,083,196 | $1,161,331 | |
Balance, ending (in units) at Dec. 31, 2014 | 26,444.01 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | ||
Net income (loss) | ($39,582) | ($862,462) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Finance income | -192,438 | |
Accrued interest income | -1,888,347 | -26,344 |
Investment income from equity method investment | -12,701 | |
Depreciation and amortization | 3,193,750 | 77,951 |
Gain on sale of assets | -160,000 | |
Foreign currency transaction (gains) losses | -4,317 | |
Change in operating assets and liabilities: | ||
Minimum rents receivable | 611,449 | |
Accrued interest income received | 1,516,233 | |
Other assets | -2,373,634 | -127,000 |
Accounts payable and accrued liabilities | -38,691 | 217,405 |
Unearned income | -82,024 | 82,024 |
Due to SQN Securities, LLC | -10,797 | |
Security deposits payable | 12,324 | |
Accrued interest on note payable | 742,449 | 25,755 |
Net cash provided by (used in) operating activities | 1,273,675 | -612,671 |
Cash flows from investing activities: | ||
Cash paid for purchase of equipment subject to operating leases | -4,336,148 | -6,276,754 |
Purchase of finance leases | -2,582,377 | |
Purchase in residual value investments of equipment on lease | -2,192,362 | |
Cash paid for initial direct costs | -180,584 | -332,500 |
Cash paid for collateralized loan receivable | -2,686,056 | -322,000 |
Cash received from collateralized loan receivable | 3,008,056 | |
Cash paid for equipment notes receivable | -5,836,265 | |
Cash received from equipment loan receivable | 2,851,286 | |
Proceeds from sale of leased assets | 3,080,994 | |
Investment in Informaage SQN Technologies | -1,219,091 | |
Cash paid for equipment notes receivable | -1,562,375 | -5,890,162 |
Repayment of equipment notes receivable | 277,922 | 261,243 |
Net cash used in investing activities | -11,377,001 | -12,560,173 |
Cash flows from financing activities: | ||
Cash received from loan payable | 9,500,000 | 6,800,000 |
Repayments of loan payable | -4,995,324 | |
Cash paid to financial institutions for equipment notes payable | -6,568,965 | |
Cash received from non-controlling interest contribution | 470,000 | 550,000 |
Cash received from Limited Partner capital contributions | 18,133,012 | 7,046,490 |
Cash paid for Limited Partner distributions | -817,706 | -53,706 |
Cash paid for Limited Partner contribution redemption | -97,183 | -1,000 |
Cash paid for partner advances | -1,000 | |
Cash paid for underwriting fees | -1,140,591 | -192,827 |
Cash paid for organizational and offering costs | -491,043 | -830,373 |
Net cash provided by financing activities | 13,992,200 | 13,317,584 |
Net increase in cash and cash equivalents | 3,888,874 | 144,740 |
Cash and cash equivalents, beginning of period | 146,340 | 1,600 |
Cash and cash equivalents, end of period | 4,035,214 | 146,340 |
Cash paid for interest | 1,159,611 | |
Supplemental disclosure of non-cash investing activities: | ||
Offering expenses paid by SQN Capital Management, LLC | 92,678 | |
Debt assumed in lease purchase agreement | 11,447,351 | 8,541,339 |
Value of units issued as underwriting fee discount | 723,344 | 540,160 |
Distributions payable to General Partner | 12,468 | 537 |
Distributions payable to Limited Partners | 429,140 | |
Increase in other assets | ($1,735,991) |
Organization_and_Nature_of_Ope
Organization and Nature of Operations | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Organization | 1. Organization and Nature of Operations |
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. | |
Nature of Operations — The principal investment strategy of the Partnership is to invest in business-essential, revenue-producing (or cost-savings) equipment or other physical assets with high in-place value and long, relative to the investment term, economic life and project financings. The Partnership executes its investment strategy by making investments in equipment already subject to lease or originating equipment leases in such equipment, which will include: (i) purchasing equipment and leasing it to third-party end users; (ii) providing equipment and other asset and project financings; (iii) acquiring equipment subject to lease and (iv) acquiring ownership rights (residual value interests) in leased equipment at lease expiration. From time to time, the Partnership may also purchase equipment and sell it directly to its leasing customers. The Partnership may use other investment structures that its Investment Manager believes will provide the Partnership with an appropriate level of security, collateralization, and flexibility to optimize its return on its investment while protecting against downside risk. In many cases, the structure will include the Partnership holding title to or a priority or controlling position in the equipment or other asset. | |
The General Partner of the Partnership is SQN AIF IV GP, LLC (the “General Partner”), a wholly-owned subsidiary of the Partnership’s Investment Manager, SQN Capital Management, LLC (the “Investment Manager”). Both the Partnership’s General Partner and its Investment Manager are Delaware limited liability companies. The General Partner manages and controls the day to day activities and operations of the Partnership, pursuant to the terms of the Limited 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. | |
On December 6, 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, L.P. (“Fund III”), an entity also sponsored by the Partnership’s Investment Manager. 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 consolidated financial statements. On December 20, 2013, Echo entered into an agreement with a 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 consolidated financial statements. Echo paid approximately $9,300,000 in cash and assumed approximately $8,500,000 in non-recourse equipment notes payable. 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 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. 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 consolidated financial statements. On March 28, 2014, Echo II entered into an agreement with a third party for the purchase of two portfolios of leases for approximately $21,863,000. The first portfolio consists of (i) various types of equipment including material handling, semiconductor test and manufacturing equipment, computer, medical, and telecommunications equipment and (ii) direct finance leases in medical equipment. The second portfolio consists of lease financings, which have been accounted for as loans receivable in the consolidated financial statements. Echo II paid approximately $10,416,000 in cash and assumed approximately $11,447,000 in non-recourse equipment notes payable. 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. | |
The Partnership’s income, losses and distributions are allocated 99% to the Limited Partners and 1% to the General Partner until the Limited Partners have received total distributions equal to their capital contributions plus an 8% per year, compounded annually, cumulative return on their capital contributions. After such time, all income, losses and distributable cash will be allocated 80% to the Limited Partners and 20% to the General Partner. The Partnership is currently in the Offering and Operating Period. The Offering Period expires the earlier of raising $200,000,000 in limited partner contributions (200,000 units at $1,000 per unit) or April 2, 2016, which is three years from the date the Partnership was declared effective by the Securities and Exchange Commission (“SEC”). During the Operating Period the Partnership will invest most of the net proceeds from its offering in business-essential, revenue-producing (or cost-saving) equipment, other physical assets with substantial economic lives and, in many cases, associated revenue streams and project financings. The Operating Period began on the date of the Partnership’s initial closing, which occurred on May 29, 2013 and will last for three years unless extended at the sole discretion of the General Partner. The Liquidation Period, which tentatively begins three years after the start of the Operating Period, is the period in which the Partnership will sell its assets in the ordinary course of business and will last two years, unless it is extended, at the sole discretion of the General Partner. | |
SQN Securities, LLC (“Securities”), is a Delaware limited liability company and a majority-owned subsidiary of the 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 its Units to the General Partner or its affiliates). While Securities is currently acting as the Partnership’s exclusive selling agent, the Partnership may engage additional selling agents in the future. In addition, the Partnership will pay a 7% sales commission to broker-dealers unaffiliated with the General Partner who will be selling the Partnership’s Units, on a best efforts basis. When the 7% sales commission is not required to be paid, the Partnership applies the proceeds that would otherwise be payable as sales commission toward the purchase of additional fractional Units at $1,000 per Unit. | |
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. 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. During the year ended December 31, 2014, the Partnership made distributions to its Limited Partners totaling approximately $1,246,846. As of December 31, 2014, the Partnership has accrued $13,005 for distributions payable to General Partner. | |
From May 29, 2013 through December 31, 2014, the Partnership has admitted 463 Limited Partners with total capital contributions of $26,443,006 resulting in the sale of 26,443.01 Units. The Partnership received cash contributions of $25,179,502 and applied $1,263,504 which would have otherwise been paid as sales commission to the purchase of 1,263.50 additional Units. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies |
Basis of Presentation — The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). | |
Principles of Consolidation — The consolidated financial statements include the accounts of the Partnership and its entities, where the Partnership has the primary economic benefits of ownership. The Partnership’s consolidation policy requires the consolidation of entities where a controlling financial interest is held as well as the consolidation of variable interest entities in which the Partnership has the primary economic benefits. All material intercompany balances and transactions are eliminated in consolidation. | |
Non-controlling interest represents the minority equity holders’ investment in Echo and Echo II, plus the minority share of the net operating results and other components of equity relating to the non-controlling interest. | |
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 lease, notes and loan 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. | |
The Partnership’s cash and cash equivalents are held principally at one financial institution and at times may exceed federally insured limits. The Partnership has placed these funds in an international financial institution in order to minimize risk relating to exceeding insured limits. The Partnership, through Summit Asset Management Limited, maintains an unrestricted Client Account at a major financial institution in the United Kingdom for purposes of receiving payments and funding transactions in Pound Sterling. | |
Credit Risk — In the normal course of business, the Partnership is exposed to credit risk. Credit risk is the risk that the Partnerships’ counterparty, to an agreement, either has an inability or unwillingness to make contractually required payments. The Partnership expects concentrations of credit risk with respect to lessees to be dispersed across different industry segments and different regions of the world. | |
Asset Impairments — Assets in the Partnership’s investment portfolio, which are considered long-lived assets, 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 the asset may not be recoverable. An impairment loss is recognized only if the carrying amount of a long-lived asset is not recoverable and exceeds its fair value. If there is an indication of impairment, the Partnership estimates the future cash flows (undiscounted and without interest charges) expected from the use of the asset and its eventual disposition. Future cash flows are the future cash in-flows expected to be generated by an asset less the future out-flows expected to be necessary to obtain those in-flows. If an impairment is determined to exist, the impairment loss is measured as the amount by which the carrying value of a long-lived asset exceeds its fair value and is recorded in the statement of operations in the period the determination is made. The events or changes in circumstances that generally indicate that an asset may be impaired are, (i) the estimated fair value of the underlying equipment is less than its carrying value, (ii) the lessee is experiencing financial difficulties and (iii) it does not appear likely that the estimated proceeds from the disposition of the asset will be sufficient to recover the carrying value of the asset. The preparation of the undiscounted cash flows requires the use of assumptions and estimates, including the level of future rents or receipts from the sale of the investment, estimated downtime between re-leasing events, and the amount of re-leasing costs. The Investment Manager’s review for impairment includes a consideration of the existence of impairment indicators, including third party appraisals, published values for similar assets, recent transactions for similar assets, adverse changes in market conditions for specific asset types, and the occurrence of significant adverse changes in general industry and market conditions that could affect the fair value of the asset. | |
Lease Classification and Revenue Recognition — The Partnership records revenue based upon the lease classification determined at the inception of the transaction and based upon the terms of the lease or when there are significant changes to the lease terms. | |
The Partnership leases equipment to third parties and each such lease may be classified as either a finance lease or an operating lease. Initial direct costs are capitalized and amortized over the term of the related lease for a finance lease. For an operating lease, initial direct costs are included as a component of the cost of the equipment and depreciated. | |
For finance leases, the Partnership records, at lease inception, the total minimum lease payments receivable from the lessee, the estimated unguaranteed residual value of the equipment upon lease termination, the initial direct costs, if any, related to the lease and the related unearned income. Unearned income represents the difference between the sum of the minimum lease payments receivable plus the estimated unguaranteed residual value, minus the cost of the leased equipment. Unearned income is recognized as finance income over the term of the lease using the effective interest rate method. | |
For operating leases, rental income is recognized on the straight line basis over the lease term. Billed and uncollected operating lease receivables will be included in accounts receivable. Accounts receivable are stated at their estimated net realizable value. Rental income received in advance is the difference between the timing of the cash payments and the income recognized on the straight line basis. | |
The investment committee of the Investment Manager approves each new equipment lease, financing transaction, and lease acquisition. As part of this process it determines the unguaranteed residual value, if any, to be used once the acquisition has been approved. The factors considered in determining the unguaranteed residual value include, but are not limited to, the creditworthiness of the potential lessee, the type of equipment being considered, how the equipment is integrated into the potential lessees’ business, the length of the lease and the industry in which the potential lessee operates. Unguaranteed residual values are reviewed for impairment in accordance with the Partnership’s policy relating to impairment review. | |
Finance Lease Receivables and Allowance for Doubtful Lease, Notes and Loan Accounts — In the normal course of business, the Partnership provides credit or financing to its customers, performs credit evaluations of these customers, and maintains reserves for potential credit losses. These credit or financing transactions are normally collateralized by the equipment being financed. In determining the amount of allowance for doubtful lease, notes and loan accounts, the Investment Manager considers historical credit losses, the past due status of receivables, payment history, and other customer-specific information, including the value of the collateral. The past due status of a receivable is based on its contractual terms. Expected credit losses are recorded as an allowance for doubtful lease, notes and loan accounts. Receivables are written off when the Investment Manager determines they are uncollectible. At December 31, 2014 and 2013, an allowance for doubtful lease, notes and loan accounts is not currently provided since, in the opinion of the Investment Manager, all accounts recorded on the books are deemed collectible. | |
Equipment Notes and Loans Receivable — Equipment notes and loans receivable are reported in the consolidated financial statements 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 consolidated financial statements. Income is recognized over the life of the note agreement. On certain equipment notes and loans 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 and loans receivable are generally placed in a non-accrual status when payments are more than 90 days past due. Additionally, the Investment Manager periodically reviews the creditworthiness of companies with payments outstanding less than 90 days. Based upon the Investment Manager’s judgment, accounts may be placed in a non-accrual status. Accounts on a non-accrual status are only returned to an accrual status when the account has been brought current and the Partnership believes recovery of the remaining unpaid receivable is probable. Revenue on non-accrual accounts is recognized only when cash has been received. | |
Initial Direct Costs — The Partnership capitalizes initial direct costs associated with the origination and funding of lease assets. These costs are amortized on a lease by lease basis based over the actual contract term of each lease using the effective interest rate method for finance leases and the straight-line method for operating leases. Upon disposal of the underlying lease assets, both the initial direct costs and the associated accumulated amortization are relieved. Costs related to leases that are not consummated are not eligible for capitalization as initial direct costs and are expensed as incurred as acquisition expense. | |
Equity Method — The Partnership records its 24.5% investment in Informage SQN Technologies LLC using the equity method of accounting. According to U.S. GAAP, a company that holds 20% or greater investment in another company could potentially exercise significant influence over the investee company’s operating and financing activities and should therefore utilize the equity method of accounting. The Partnership’s portion of earnings in the investee are recorded as an increase in its investment and recognized in the consolidated statements of operations, and any distributions received from the investee are recorded as a reduction in its investment. | |
Acquisition Expense — Acquisition expense represents costs which include, but are not limited to, legal fees and expenses, travel and communication expenses, cost of appraisals, accounting fees and expenses, and miscellaneous expenses related to the selection and acquisition of leased equipment which are incurred by the Partnership under the terms of the Partnership Agreement, as amended. As these costs are not eligible for capitalization as initial direct costs, such amounts are expensed as incurred. | |
Income Taxes — As a partnership, no provision for income taxes is recorded since the liability for such taxes is the responsibility of each of the Partners rather than the Partnership. The Partnership’s income tax returns are subject to examination by the federal and state taxing authorities, and changes, if any, could adjust the individual income tax of the Partners. | |
The Partnership has adopted the provisions of FASB Topic 740, Accounting for Uncertainty in Income Taxes. This accounting guidance prescribes recognition thresholds that must be met before a tax position is recognized in the financial statements and provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. Additionally, an entity may only recognize or continue to recognize tax positions that meet a “more likely than not” threshold. The Partnership has evaluated its entity level tax positions for the years ended December 31, 2014 and 2013, and does not expect any material adjustments to be made. The tax years 2014, 2013 and 2012 remain open to examination by the major taxing jurisdictions to which the Partnership is subject. | |
Per Share Data — Net income or loss attributable to Limited Partners per weighted average number of limited partnership interests outstanding is calculated as follows; the net income or loss allocable to the Limited Partners divided by the weighted average number of limited partnership interests outstanding during the period. | |
Foreign Currency Transactions — The Partnership has designated the United States of America dollar as the functional currency for the Partnership’s investments denominated in foreign currencies. Accordingly, certain assets and liabilities are translated at either the reporting period exchange rates or the historical exchange rates, revenues and expenses are translated at the average rate of exchange for the period, and all transaction gains or losses are reflected in the period’s results of operations. | |
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 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 consolidated financial statements. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Related Party Transactions [Abstract] | |||||||||
Related Party Transactions | 3. Related Party Transactions | ||||||||
The General Partner is responsible for the 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 at December 31, 2014. | |||||||||
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 Partnership and will be adjusted in the future to reflect the total equity raised. For the years ended December 31, 2014 and 2013, the Partnership paid $1,500,000 and $875,000, respectively in management fee expense to the Investment Manager. | |||||||||
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 years ended December 31, 2014 and 2013, the Partnership had the following transactions and balanced with Securities: | |||||||||
Year Ended | Year Ended | ||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Balance - beginning of year | $ | 10,797 | $ | — | |||||
Underwriting fees earned by Securities | 543,990 | 196,395 | |||||||
Payments by the Partnership to Securities | (554,787 | ) | (185,598 | ) | |||||
Balance - end of year | $ | — | $ | 10,797 | |||||
For the years ended December 31, 2014 and 2013, the Partnership incurred the following underwriting fee transactions: | |||||||||
Year Ended | Year Ended | ||||||||
31-Dec-14 | December 31, 2013 | ||||||||
Underwriting discount incurred by the Partnership | $ | 723,344 | $ | 540,160 | |||||
Underwriting fees earned by Securities | 543,990 | 196,395 | |||||||
Underwriting fees paid to outside brokers | 596,601 | 7,210 | |||||||
Total underwriting fees | $ | 1,863,935 | $ | 743,765 |
Investments_in_Finance_Leases
Investments in Finance Leases | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases, Capital [Abstract] | |||||
Investments in Finance Leases | 4. Investments in Finance Leases | ||||
At December 31, 2014, net investment in finance leases consisted of the following: | |||||
31-Dec-14 | |||||
Minimum rents receivable | $ | 1,389,721 | |||
Estimated unguaranteed residual value | 360,000 | ||||
Unearned income | (256,943 | ) | |||
$ | 1,492,778 | ||||
Medical Equipment | |||||
On March 28, 2014, Echo II purchased three finance leases for medical equipment located in the United States of America. One of the leases had a remaining term of 37 months and monthly payments of $4,846. The second lease also had 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. At December 31, 2014, there were no significant changes to any of these leases. | |||||
Wind Turbine | |||||
On March 28, 2014, the Partnership entered into a new finance lease transaction for a wind turbine located 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 a new finance lease transaction for medical equipment located in the United States of America for $247,920. The finance lease requires 48 monthly payments of $7,415. At December 31, 2014, there were no significant changes to any of these leases. |
Investments_in_Equipment_Subje
Investments in Equipment Subject to Operating Leases | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Leases, Operating [Abstract] | |||||||||||||
Investments in Equipment Subject to Operating Leases | 5. Investment in Equipment Subject to Operating Leases | ||||||||||||
On October 31, 2014, the Partnership entered into an agreement for the purchase of two operating leases for aircraft rotable parts equipment located in the United States of America with a total basis of $1,330,616. Each operating lease has a remaining term of 28 months and monthly payments of $26,493 and $1,800, respectively. On that same date, the Partnership entered into a participation agreement with the rotable parts servicer, whereby the servicer purchased a 5% interest in these operating leases. | |||||||||||||
On March 28, 2014, Echo II entered into an agreement for the purchase of two portfolios of leases located in the United States of America 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 year ended December 31, 2014, Echo II sold two operating lease schedules 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 for the purchase of two portfolios of leases located in the United States of America 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 year ended December 31, 2014, Echo sold various operating lease schedules for total cash proceeds of $1,638,193 and elimination of related outstanding debt of $508,869. The net book value of these leases at the time of sale was $2,139,975 which resulted in the Partnership recognizing a gain of $7,087. | |||||||||||||
The composition of the equipment subject to operating leases as of December 31, 2014 is as follows: | |||||||||||||
Description | Cost Basis | Accumulated | Net Book Value | ||||||||||
Depreciation | |||||||||||||
Agricultural equipment | $ | 807,239 | $ | 125,677 | $ | 681,562 | |||||||
Aircraft equipment | 3,469,297 | 250,394 | 3,218,903 | ||||||||||
Computer equipment | 671,809 | 233,776 | 438,033 | ||||||||||
Forklifts and fuels cells | 7,188,160 | 1,166,572 | 6,021,588 | ||||||||||
Heavy equipment | 3,047,443 | 435,563 | 2,611,880 | ||||||||||
Industrial | 518,399 | 97,295 | 421,104 | ||||||||||
Machine tools | 556,686 | 68,778 | 487,908 | ||||||||||
Medical | 518,588 | 134,240 | 384,348 | ||||||||||
$ | 16,777,621 | $ | 2,512,295 | $ | 14,265,326 | ||||||||
The composition of the equipment subject to operating leases as of December 31, 2013 is as follows: | |||||||||||||
Description | Cost Basis | Accumulated | Net Book Value | ||||||||||
Depreciation | |||||||||||||
Agricultural equipment | $ | 653,458 | $ | 2,382 | $ | 651,076 | |||||||
Computer equipment | 1,529,807 | 17,505 | 1,512,302 | ||||||||||
Forklifts and fuels cells | 5,473,816 | 26,569 | 5,447,247 | ||||||||||
Heavy equipment | 2,514,627 | 10,244 | 2,504,383 | ||||||||||
Industrial | 466,618 | 2,135 | 464,483 | ||||||||||
Machine tools | 556,686 | 2,943 | 553,743 | ||||||||||
Medical | 32,476 | 120 | 32,356 | ||||||||||
$ | 11,227,488 | $ | 61,898 | $ | 11,165,590 | ||||||||
The Partnership records depreciation expense on equipment when the lease is classified as an operating lease. In order to calculate depreciation, the Partnership first determines the depreciable equipment cost, which is the cost less the estimated residual value. The estimated residual value is the estimate of the value of the equipment at lease termination. Depreciation expense is recorded by applying the straight-line method of depreciation to the depreciable equipment cost over the lease term. Depreciation expense for the years ended December 31, 2014 and 2013 was $3,010,407 and $61,899, respectively. |
Equipment_Notes_Receivable
Equipment Notes Receivable | 12 Months Ended | ||||
Dec. 31, 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 is repaid 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 years ended December 31, 2014 and 2013, the medical equipment note earned interest income of $14,991and $9,988, respectively. | |||||
Mineral Processing Equipment | |||||
On September 27, 2013, the Partnership entered into a loan facility to provide financing up to a maximum borrowing of $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 was secured by equipment that refines precious metals and other minerals. The Partnership advanced $2,500,000 to the borrower during September 2013. The loan facility required 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. The loan facility was scheduled to mature in September 2017. On May 9, 2014, the Partnership made a second funding of $500,000 to the borrower under the above agreement. The loan facility required 41 monthly payments of principal and interest of $15,764 and matures in September 2017. The borrower’s obligations under the loan facility were also personally guaranteed by its majority shareholders. | |||||
On December 22, 2014, the outstanding principal of $2,537,822 and accrued interest of $204,721 of this note receivable was restructured into a new note receivable of $2,883,347. The new loan facility is secured by equipment that refines precious metals and other minerals and is guaranteed by the majority shareholders of the Florida based company referred to above. The new loan facility requires 48 monthly payments of principal and interest of $79,255 commencing on February 24, 2015 and a balloon payment of $500,000 in January 2019. The loan facility is scheduled to mature in September 2017. In connection with above restructured note, on December 22, 2014, the Partnership entered into a $200,000 promissory note with the same borrower. The promissory note requires five annual payments of $150,000 commencing on January 25, 2019 and matures in January 2023. As of December 31, 2014, the Partnership advanced $100,000. In January 2015, the Partnership advanced the remaining $100,000. For the years ended December 31, 2014 and 2013, the mineral processing equipment note earned $485,472 and $126,292 of interest income, respectively Based on a third party appraisal of the collateral value of the equipment, the Investment Manager believes that there is sufficient collateral value to cover the outstanding balance of the restructured note receivable and the promissory note. | |||||
Manufacturing Equipment | |||||
On October 15, 2013, the Partnership entered into a $300,000 loan facility with a New Jersey based manufacturer and assembler of various consumer products. The loan is secured by manufacturing equipment owned by the borrower. The loan facility is scheduled to be repaid in 29 equal monthly installments of $12,834. For the years ended December 31, 2014 and 2013, the manufacturing equipment note earned interest income of $39,823 and $10,807, respectively. The borrower’s obligations under the loan facility are also personally guaranteed by its majority shareholder. On December 8, 2014, the borrower went into default and the balance of the loan was accelerated. Local counsel has been retained to exercise all available legal remedies. On February 12, 2015, a civil action was filed in New Jersey against the borrower and guarantor to recover all amounts outstanding under the note receivable relating to manufacturing equipment. The Investment Manager did not record an asset impairment 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. | |||||
Brake Manufacturing Equipment | |||||
On May 2, 2014, the Partnership purchased a promissory note secured by brake manufacturing equipment with an aggregate principal amount of $432,000. The promissory note requires quarterly payments of $34,786, accrues interest at 12.5% per annum and matures in January 2018. For the year ended December 31, 2014, the equipment note earned interest income of $32,865. | |||||
Medical Equipment | |||||
On December 19, 2014, the Partnership entered into a $667,629 promissory note to finance the purchase of medical equipment located in Texas. The promissory note will be paid through 60 monthly installments of principal and interest of $15,300. The promissory note is secured by a first priority security interest in the medical equipment and other personal property located at the borrowers principal place of business. For the year ended December 31, 2014, the medical equipment note earned interest income of $1,997. | |||||
The future principal maturities of the Partnership’s equipment notes receivable at December 31, 2014 are as follows: | |||||
Years ending December 31, | |||||
2015 | $ | 972,091 | |||
2016 | 770,550 | ||||
2017 | 874,689 | ||||
2018 | 935,115 | ||||
2019 | 748,287 | ||||
Total | $ | 4,318,732 |
Equipment_loans_receivable
Equipment loans receivable | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Equipment Loans Receivable | |||||||||||
Equipment loan Receivable | 7. Equipment loans receivable | ||||||||||
On December 20, 2013, Echo entered into an agreement 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 years ended December 31, 2014 and 2013, the Partnership earned interest income of $537,072 and $19,682, respectively. | |||||||||||
On March 28, 2014, Echo II entered into an agreement with the same 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 year ended December 31, 2014, the Partnership earned interest income of $893,741. | |||||||||||
During the year ended December 31, 2014, Echo II sold various equipment loans receivable lease schedules to third parties for total cash proceeds of $626,505, a receivable of $1,090,240 and elimination of related outstanding debt of $2,810,908. The net book value of these leases at the time of sale was $4,470,220 which resulted in the Partnership recognizing a gain of $57,433. | |||||||||||
The composition of the equipment loans receivable in the Echo and Echo II transactions as of December 31, 2014 and 2013 is as follows: | |||||||||||
Description | Maturity | Balance | Balance | ||||||||
Date | 31-Dec-14 | 31-Dec-13 | |||||||||
Furniture and fixtures | 6/30/16 – 4/30/18 | $ | 1,179,460 | $ | 36,860 | ||||||
Fitness | 3/31/15 | 10,514 | 34,209 | ||||||||
Computers | 6/30/14 – 9/30/17 | 456,905 | 104,008 | ||||||||
Forklifts and fuels cells | 3/31/14 – 10/31/17 | 4,498,279 | 5,510,245 | ||||||||
Industrial | 9/30/15 – 12/31/17 | 1,898,917 | 57,060 | ||||||||
Machine tools | 9/30/15 | 918,445 | 42,221 | ||||||||
Medical and research equipment | 1/31/15 – 12/31/17 | 2,436,958 | 746,163 | ||||||||
Total | $ | 11,399,479 | $ | 6,530,766 | |||||||
The future principal maturities of the Partnership’s equipment loans receivable at December 31, 2014 are as follows: | |||||||||||
Years ending December 31, | |||||||||||
2015 | $ | 3,643,350 | |||||||||
2016 | 3,312,790 | ||||||||||
2017 | 2,555,143 | ||||||||||
2018 | 1,818,656 | ||||||||||
2019 | 69,540 | ||||||||||
Total | $ | 11,399,479 |
Residual_Value_Investment_in_E
Residual Value Investment in Equipment on Lease | 12 Months Ended |
Dec. 31, 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 interests in equipment. The leasing company has entered into a Master Lease Agreement with another party to lease cash handling machines or smart safes under one or more lease schedules with original equipment cost of $20 million (“OEC”) “) and a term of five years from initiation of each lease schedule. 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 and the Partnership has agreed to finance the remaining 15% of the OEC up to an aggregate facility of $3 million. As of December 31, 2014, the Partnership had advanced a total of $2,192,362. |
Collateralized_Loan_Receivable
Collateralized Loan Receivable | 12 Months Ended |
Dec. 31, 2014 | |
Collateralized Loan Receivable [Abstract] | |
Collateralized Loan Receivable | 9. Collateralized Loan Receivable |
On November 27, 2013, the Partnership entered into a loan agreement that allowed 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 accrued interest at 15% per annum and was 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. During the year ended December 31, 2014, the loan receivable balance was repaid in full. |
Investment_in_Informage_SQN_Te
Investment in Informage SQN Technologies LLC | 12 Months Ended |
Dec. 31, 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 PAC”), an entity managed by the Partnership’s Investment Manager, and a third party 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 PAC each own 24.5% of Informage SQN, while the third party 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 of total aggregate outstanding capital contributions. As of December 31, 2014, the Partnership has advanced a total of $1,219,091. For the year ended December 31, 2014, the Partnership recorded investment income of $12,701 for its proportionate share of Informage SQN’s net income. On February 9, 2015, the primary customer of Informage SQN filed for bankruptcy protection under Chapter 11 in order to reorganize the company. Informage SQN is not in default under any of the agreements with the Partnership. Informage SQN has retained local counsel to represent its interest while the customer restructures. |
Other_Assets
Other Assets | 12 Months Ended |
Dec. 31, 2014 | |
Other Assets [Abstract] | |
Other Assets | 11. Other Assets |
Other assets primarily include $2,601,684 related to a security purchase agreement, a receivable of $1,090,240 related to the sale of equipment loans receivable lease schedules and $306,135 related to net book value of several leases that were transferred from operating and finance leases as parts of these leases are being sold off. On December 29, 2014, the Partnership entered into a securities purchase agreement for Series A Preferred Shares secured by a portfolio of corporate aircraft/marine vessels for a total purchase price of $2,601,684. Simultaneously, the Partnership entered into a security purchase agreement with the same third party whereby the Partnership sold Series A Preferred Shares for a total sale price of $2,615,292 resulting in total income of $13,608 of which the Partnership recognized other income of $2,401 during the year ended December 31, 2014 and is included in other income on the consolidated statements of operations. |
Equipment_Notes_Payable
Equipment Notes Payable | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Disclosure Text Block Supplement [Abstract] | |||||
Equipment Notes Payable | 12. Equipment Notes Payable | ||||
In connection with the Echo and Echo II transactions, Echo and Echo II assumed approximately $8,500,000 and $11,447,000, 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 notes are secured by the underlying assets of each lease. | |||||
The future maturities of the Partnership’s equipment notes payable at December 31, 2014 are as follows: | |||||
Years ending December 31, | |||||
2015 | $ | 4,380,608 | |||
2016 | 3,376,326 | ||||
2017 | 1,709,203 | ||||
2018 | 893,443 | ||||
2019 | 20,806 | ||||
Total | $ | 10,380,386 | |||
Loans_Payable
Loans Payable | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Loan Payable | 13. 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 has 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 junior participants, fourth, against the outstanding principal balance of the senior participation with any excess distributed to the junior participants. There is no stated repayment term for the principal. The outstanding principal balance of the loan as of December 31, 2014 was $3,852,964. | |
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 has 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 junior participants, fourth, against the outstanding principal balance of the senior participation with any excess distributed to the junior participants. 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 (“SQN AFIF”), 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 December 31, 2014 was $7,451,711. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Measurements | 14. Fair Value of Financial Instruments | ||||||||||||||||
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 were as follows: | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | ||||||||||||||
Value | Value | ||||||||||||||||
Assets: | |||||||||||||||||
Equipment notes receivable | $ | 4,318,732 | $ | 4,396,712 | $ | 2,692,900 | $ | 2,747,972 | |||||||||
Equipment loans receivable | $ | 11,399,479 | $ | 11,399,479 | $ | 6,550,448 | $ | 6,550,448 | |||||||||
Collateralized loan receivable | $ | — | $ | — | $ | 324,519 | $ | 333,487 | |||||||||
Liabilities: | |||||||||||||||||
Equipment notes payable | $ | 10,380,386 | $ | 10,380,386 | $ | 8,541,339 | $ | 8,541,339 | |||||||||
Loans payable | $ | 11,304,675 | $ | 10,984,066 | $ | 6,825,755 | $ | 6,825,755 | |||||||||
Income_Tax_Reconciliation_unau
Income Tax Reconciliation (unaudited) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Tax Reconciliation | |||||||||
Income Tax Reconciliation (unaudited) | 15. Income Tax Reconciliation (unaudited) | ||||||||
As of December 31, 2014 and 2013, total Partners’ Equity attributable to the Partnership included in the consolidated financial statements was $20,059,857 and $5,090,194, respectively. As of December 31, 2014 and 2013, total Partners’ equity for federal income tax purposes was $19,170,521 and $5,067,949, respectively. The primary difference was organizational and offering expenses and distribution expenses which is a reduction in Limited Partners’ capital accounts for financial reporting purposes but not for federal income tax reporting purposes and differences in depreciation and amortization for financial reporting purposes and federal income tax purposes. | |||||||||
The following table reconciles the net loss for financial statement reporting purposes to the net loss for federal income purposes for the years ended December 31, 2014 and 2013: | |||||||||
For the Year Ended | For the Year Ended | ||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
Net loss per consolidated financial statements | $ | (175,218 | ) | $ | (868,157 | ) | |||
Net income from non-includable U.S. entities | — | (28,478 | ) | ||||||
Income attributable to non-controlling interest | 135,636 | 5,696 | |||||||
Organizational costs | 51,155 | 14,500 | |||||||
SQN Echo LLC | 998,317 | (32,603 | ) | ||||||
Unearned interest income | — | 82,024 | |||||||
Net income (loss) for federal income tax purposes | $ | 1,009,890 | (827,018 | ) |
Indemnifications
Indemnifications | 12 Months Ended |
Dec. 31, 2014 | |
Indemnifications | |
Indemnifications | 16. Indemnifications |
The Partnership enters into contracts that contain a variety of indemnifications. The Partnership’s maximum exposure under these arrangements is not known. | |
In the normal course of business, the Partnership enters into contracts of various types, including lease contracts, contracts for the sale or purchase of lease assets, and management contracts. It is prevalent industry practice for most contracts of any significant value to include provisions that each of the contracting parties, in addition to assuming liability for breaches of the representations, warranties, and covenants that are part of the underlying contractual obligations, to also assume an obligation to indemnify and hold the other contractual party harmless for such breaches, and for harm caused by such party’s gross negligence and willful misconduct, including, in certain instances, certain costs and expenses arising from the contract. Generally, to the extent these contracts are performed in the ordinary course of business under the reasonable business judgment of the General Partner and the Investment Manager, no liability will arise as a result of these provisions. The General Partner and Investment Manager knows of no facts or circumstances that would make the Partnership’s contractual commitments outside standard mutual covenants applicable to commercial transactions between businesses. Accordingly, the Partnership believes that these indemnification obligations are made in the ordinary course of business as part of standard commercial and industry practice, and that any potential liability under the Partnership’s similar commitments is remote. Should any such indemnification obligation become payable, the Partnership would separately record and/or disclose such liability in accordance with U.S. GAAP. |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data (unaudited) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||
Selected Quarterly Financial Data | 17. Selected Quarterly Financial Data (unaudited) | ||||||||||||||||||||
The following table is a summary of selected financial data, by quarter: | |||||||||||||||||||||
Quarterly Information (unaudited) | Year Ended | ||||||||||||||||||||
December 31, | |||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | 2014 | |||||||||||||||||
Total revenue | $ | 1,215,127 | $ | 1,898,887 | $ | 2,559,864 | $ | 1,726,032 | $ | 7,399,910 | |||||||||||
Net (loss) income allocable to Limited Partners | $ | (150,748 | ) | $ | (250,088 | ) | $ | 372,374 | $ | (145,004 | ) | $ | (173,466 | ) | |||||||
Weighted average number of limited partnership interests outstanding | 9,062.09 | 12,652.66 | 19,314.82 | 23,982.31 | 16,301.74 | ||||||||||||||||
Net (loss) income attributable to Limited Partners per weighted average number of limited partnership interest outstanding | $ | (16.64 | ) | $ | (19.77 | ) | $ | 19.28 | $ | (6.05 | ) | $ | (10.64 | ) | |||||||
Quarterly Information (unaudited) | Year Ended | ||||||||||||||||||||
December 31, | |||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | 2013 | |||||||||||||||||
Total revenue | $ | — | $ | 1,129 | $ | 9,784 | $ | 287,851 | $ | 298,764 | |||||||||||
Net loss allocable to Limited Partners | $ | — | $ | (159,411 | ) | $ | (389,790 | ) | $ | (310,274 | ) | $ | (859,475 | ) | |||||||
Weighted average number of limited partnership interests outstanding | — | 1,687.56 | 2,589.39 | 6,075.97 | 3,940.39 | ||||||||||||||||
Net loss attributable to Limited Partners per weighted average number of limited partnership interests outstanding | $ | — | $ | (94.46 | ) | $ | (150.53 | ) | $ | (51.07 | ) | $ | (218.12 | ) |
Business_Concentrations
Business Concentrations | 12 Months Ended |
Dec. 31, 2014 | |
Risks and Uncertainties [Abstract] | |
Business Concentrations | 18. Business Concentrations |
For the year ended December 31, 2014, the Partnership had two leases, which accounted for approximately 23% and 12% of the Partnership’s rental income derived from operating leases. For the year ended December 31, 2013, the Partnership had one lease, which accounted for approximately 25% of the Partnership’s rental income derived from operating leases. For the year ended December 31, 2014, the Partnership had four leases, which accounted for approximately 38%, 26%, 14%, and 14% of the Partnership’s income derived from finance leases. For the year ended December 31, 2014, the Partnership had two lessees which accounted for approximately 19% and 11% of the Partnership’s interest income. For the year ended December 31, 2013, the Partnership had one lessee which accounted for approximately 80% of the Partnership’s interest income. | |
At December 31, 2014, the Partnership had three lessees which accounted for approximately 46%, 24%, and 20% of the Partnership’s investment in finance leases. At December 31, 2014, the Partnership had two lessees which accounted for approximately 21% and 16% of the Partnership’s investment in operating leases. At December 31, 2013, the Partnership had two lessees which accounted for approximately 33% and 16% of the Partnership’s investment in operating leases. | |
At December 31, 2014, the Partnership had two lessees which accounted for approximately 69% and 15% of the Partnership’s investment in equipment notes receivable. At December 31, 2013, the Partnership had two lessees which accounted for approximately 85% and 10% of the Partnership’s investment in equipment notes receivable. At December 31, 2014, the Partnership had one lessee, which accounted for approximately 18% of the Partnership’s investment in equipment loans receivable. At December 31, 2013, the Partnership had five lessees, which accounted for approximately 38%, 20%, 14%, 11% and 10% of the Partnership’s investment in equipment loans receivable. |
Geographic_Information
Geographic Information | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||
Geographic Information | 19. Geographic Information | |||||||||||||
Geographic information for revenue for the years ended December 31, 2014 and 2013 was as follows: | ||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||
Revenue: | United States | Europe | Mexico | Total | ||||||||||
Rental income | $ | 4,619,188 | $ | — | $ | — | $ | 4,619,188 | ||||||
Finance income | $ | 114,963 | $ | 77,475 | $ | — | $ | 192,438 | ||||||
Interest income | $ | 1,923,811 | $ | — | $ | 485,472 | $ | 2,409,283 | ||||||
Investment income from equity method investment | $ | 12,701 | $ | — | $ | — | $ | 12,701 | ||||||
Gain on sale of assets | $ | 160,000 | $ | — | $ | — | $ | 160,000 | ||||||
Other income | $ | 6,300 | $ | $ | $ | 6,300 | ||||||||
Year Ended December 31, 2013 | ||||||||||||||
Revenue: | United States | Europe | Mexico | Total | ||||||||||
Rental income | $ | 127,501 | $ | — | $ | — | $ | 127,501 | ||||||
Interest income | $ | 170,263 | $ | — | $ | — | $ | 170,263 | ||||||
Other income | $ | 1,000 | $ | — | $ | — | $ | 1,000 | ||||||
Geographic information for long-lived assets at December 31, 2014 and 2013 was as follows: | ||||||||||||||
31-Dec-14 | ||||||||||||||
Long-lived assets: | United States | Europe | Mexico | Total | ||||||||||
Investment in finance leases, net | $ | 1,268,085 | $ | 224,693 | $ | — | $ | 1,492,778 | ||||||
Investments in equipment subject to operating leases, net | $ | 14,265,326 | $ | — | $ | — | $ | 14,265,326 | ||||||
Equipment notes receivable, including accrued interest | $ | 1,358,372 | $ | — | $ | 2,983,347 | $ | 4,341,220 | ||||||
Equipment loans receivable, including accrued interest | $ | 11,429,927 | $ | — | $ | — | $ | 11,429,927 | ||||||
Collateralized loan receivable, including accrued interest | $ | — | $ | — | $ | — | $ | — | ||||||
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 | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | 20. Subsequent Events |
On January 7, 2015, the Partnership acquired a junior participation interest in a portfolio of eight helicopters for $1,500,000. The Partnership, SQN PAC, SQN AFIF and a third party formed a special purpose entity SQN Helo, LLC (“SQN Helo”) whose sole purpose is to acquire the helicopter portfolio. SQN Helo is the sole owner of eight special purpose entities each of which own a helicopter. The purchase price of the helicopter portfolio was approximately $23,201,000 comprised of approximately $11,925,000 in cash and the assumption of approximately $11,276,000 of nonrecourse indebtedness. SQN PAC also acquired a junior participation interest in SQN Helo for $1,500,000. The senior participation interests in SQN Helo were acquired by SQN AFIF and the third party. | |
On January 15, 2015, the Partnership received cash of $2,615,292 from the sale of Series A Preferred Shares. | |
On January 29, 2015, the Partnership advanced a total of $103,791 for its residual value investment in smart safes equipment on lease. | |
On February 4, 2015, the Partnership entered into a promissory note in the amount of $1,500,000 with an investment grade credit in an insurance wrap transaction to provide financing for the export of certain agricultural assets on a secured basis. | |
On February 5, 2015, the Partnership’s Investment Manager sent a letter to the Limited Partners of the Partnership requesting consent to authorize the General Partner, to amend the Amended and Restated Agreement of Limited Partnership of the Partnership (the “Partnership Agreement”) in order to increase the maximum duration of the Partnership’s offering period from two to three years, subject to the earlier sale of the maximum offering of 200,000 Units or the earlier termination of the offering by the General Partner (the “Amendment”). Neither the Investment Manager nor the General Partner intends to extend the Partnership’s operating period or the anticipated start of the liquidation period. On March 3, 2015, the General Partner received the approval of Limited Partners owning a majority of the aggregate outstanding Units to adopt the Amendment. After receiving the consent of Limited Partners owning a majority of the aggregate outstanding Units, the General Partner adopted the Amendment on March 3, 2015. | |
From January 1, 2015 through March 31, 2015, the Partnership admitted an additional 115 Limited Partners with total cash contributions of $5,026,342, total capital contributions of $5,106,883 and 5,106.88 Units. The Partnership paid or accrued an underwriting fee to Securities and outside brokers totaling $150,790 and $276,940, respectively. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation — The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Principles of Consolidation | Principles of Consolidation — The consolidated financial statements include the accounts of the Partnership and its entities, where the Partnership has the primary economic benefits of ownership. The Partnership’s consolidation policy requires the consolidation of entities where a controlling financial interest is held as well as the consolidation of variable interest entities in which the Partnership has the primary economic benefits. All material intercompany balances and transactions are eliminated in consolidation. |
Non-controlling interest represents the minority equity holders’ investment in Echo and Echo II, plus the minority share of the net operating results and other components of equity relating to the non-controlling interest. | |
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 lease, notes and loan 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. |
The Partnership’s cash and cash equivalents are held principally at one financial institution and at times may exceed federally insured limits. The Partnership has placed these funds in an international financial institution in order to minimize risk relating to exceeding insured limits. The Partnership, through Summit Asset Management Limited, maintains an unrestricted Client Account at a major financial institution in the United Kingdom for purposes of receiving payments and funding transactions in Pound Sterling. | |
Credit Risk | Credit Risk — In the normal course of business, the Partnership is exposed to credit risk. Credit risk is the risk that the Partnerships’ counterparty, to an agreement, either has an inability or unwillingness to make contractually required payments. The Partnership expects concentrations of credit risk with respect to lessees to be dispersed across different industry segments and different regions of the world. |
Asset Impairments | Asset Impairments — Assets in the Partnership’s investment portfolio, which are considered long-lived assets, 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 the asset may not be recoverable. An impairment loss is recognized only if the carrying amount of a long-lived asset is not recoverable and exceeds its fair value. If there is an indication of impairment, the Partnership estimates the future cash flows (undiscounted and without interest charges) expected from the use of the asset and its eventual disposition. Future cash flows are the future cash in-flows expected to be generated by an asset less the future out-flows expected to be necessary to obtain those in-flows. If an impairment is determined to exist, the impairment loss is measured as the amount by which the carrying value of a long-lived asset exceeds its fair value and is recorded in the statement of operations in the period the determination is made. The events or changes in circumstances that generally indicate that an asset may be impaired are, (i) the estimated fair value of the underlying equipment is less than its carrying value, (ii) the lessee is experiencing financial difficulties and (iii) it does not appear likely that the estimated proceeds from the disposition of the asset will be sufficient to recover the carrying value of the asset. The preparation of the undiscounted cash flows requires the use of assumptions and estimates, including the level of future rents or receipts from the sale of the investment, estimated downtime between re-leasing events, and the amount of re-leasing costs. The Investment Manager’s review for impairment includes a consideration of the existence of impairment indicators, including third party appraisals, published values for similar assets, recent transactions for similar assets, adverse changes in market conditions for specific asset types, and the occurrence of significant adverse changes in general industry and market conditions that could affect the fair value of the asset. |
Lease Classification and Revenue Recognition | Lease Classification and Revenue Recognition — The Partnership records revenue based upon the lease classification determined at the inception of the transaction and based upon the terms of the lease or when there are significant changes to the lease terms. |
The Partnership leases equipment to third parties and each such lease may be classified as either a finance lease or an operating lease. Initial direct costs are capitalized and amortized over the term of the related lease for a finance lease. For an operating lease, initial direct costs are included as a component of the cost of the equipment and depreciated. | |
For finance leases, the Partnership records, at lease inception, the total minimum lease payments receivable from the lessee, the estimated unguaranteed residual value of the equipment upon lease termination, the initial direct costs, if any, related to the lease and the related unearned income. Unearned income represents the difference between the sum of the minimum lease payments receivable plus the estimated unguaranteed residual value, minus the cost of the leased equipment. Unearned income is recognized as finance income over the term of the lease using the effective interest rate method. | |
For operating leases, rental income is recognized on the straight line basis over the lease term. Billed and uncollected operating lease receivables will be included in accounts receivable. Accounts receivable are stated at their estimated net realizable value. Rental income received in advance is the difference between the timing of the cash payments and the income recognized on the straight line basis. | |
The investment committee of the Investment Manager approves each new equipment lease, financing transaction, and lease acquisition. As part of this process it determines the unguaranteed residual value, if any, to be used once the acquisition has been approved. The factors considered in determining the unguaranteed residual value include, but are not limited to, the creditworthiness of the potential lessee, the type of equipment being considered, how the equipment is integrated into the potential lessees’ business, the length of the lease and the industry in which the potential lessee operates. Unguaranteed residual values are reviewed for impairment in accordance with the Partnership’s policy relating to impairment review. | |
Finance Lease Receivables and Allowance for Doubtful Lease, Notes and Loan Accounts | Finance Lease Receivables and Allowance for Doubtful Lease, Notes and Loan Accounts — In the normal course of business, the Partnership provides credit or financing to its customers, performs credit evaluations of these customers, and maintains reserves for potential credit losses. These credit or financing transactions are normally collateralized by the equipment being financed. In determining the amount of allowance for doubtful lease, notes and loan accounts, the Investment Manager considers historical credit losses, the past due status of receivables, payment history, and other customer-specific information, including the value of the collateral. The past due status of a receivable is based on its contractual terms. Expected credit losses are recorded as an allowance for doubtful lease, notes and loan accounts. Receivables are written off when the Investment Manager determines they are uncollectible. At December 31, 2014 and 2013, an allowance for doubtful lease, notes and loan accounts is not currently provided since, in the opinion of the Investment Manager, all accounts recorded on the books are deemed collectible. |
Equipment Notes and Loans Receivable | Equipment Notes and Loans Receivable — Equipment notes and loans receivable are reported in the consolidated financial statements 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 consolidated financial statements. Income is recognized over the life of the note agreement. On certain equipment notes and loans 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 and loans receivable are generally placed in a non-accrual status when payments are more than 90 days past due. Additionally, the Investment Manager periodically reviews the creditworthiness of companies with payments outstanding less than 90 days. Based upon the Investment Manager’s judgment, accounts may be placed in a non-accrual status. Accounts on a non-accrual status are only returned to an accrual status when the account has been brought current and the Partnership believes recovery of the remaining unpaid receivable is probable. Revenue on non-accrual accounts is recognized only when cash has been received. |
Initial Direct Costs | Initial Direct Costs — The Partnership capitalizes initial direct costs associated with the origination and funding of lease assets. These costs are amortized on a lease by lease basis based over the actual contract term of each lease using the effective interest rate method for finance leases and the straight-line method for operating leases. Upon disposal of the underlying lease assets, both the initial direct costs and the associated accumulated amortization are relieved. Costs related to leases that are not consummated are not eligible for capitalization as initial direct costs and are expensed as incurred as acquisition expense. |
Equity Method | Equity Method — The Partnership records its 24.5% investment in Informage SQN Technologies LLC using the equity method of accounting. According to U.S. GAAP, a company that holds 20% or greater investment in another company could potentially exercise significant influence over the investee company’s operating and financing activities and should therefore utilize the equity method of accounting. The Partnership’s portion of earnings in the investee are recorded as an increase in its investment and recognized in the consolidated statements of operations, and any distributions received from the investee are recorded as a reduction in its investment. |
Acquisition Expense | Acquisition Expense — Acquisition expense represents costs which include, but are not limited to, legal fees and expenses, travel and communication expenses, cost of appraisals, accounting fees and expenses, and miscellaneous expenses related to the selection and acquisition of leased equipment which are incurred by the Partnership under the terms of the Partnership Agreement, as amended. As these costs are not eligible for capitalization as initial direct costs, such amounts are expensed as incurred. |
Income Taxes | Income Taxes — As a partnership, no provision for income taxes is recorded since the liability for such taxes is the responsibility of each of the Partners rather than the Partnership. The Partnership’s income tax returns are subject to examination by the federal and state taxing authorities, and changes, if any, could adjust the individual income tax of the Partners. |
The Partnership has adopted the provisions of FASB Topic 740, Accounting for Uncertainty in Income Taxes. This accounting guidance prescribes recognition thresholds that must be met before a tax position is recognized in the financial statements and provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. Additionally, an entity may only recognize or continue to recognize tax positions that meet a “more likely than not” threshold. The Partnership has evaluated its entity level tax positions for the years ended December 31, 2014 and 2013, and does not expect any material adjustments to be made. The tax years 2014, 2013 and 2012 remain open to examination by the major taxing jurisdictions to which the Partnership is subject. | |
Per Share Data | Per Share Data — Net income or loss attributable to Limited Partners per weighted average number of limited partnership interests outstanding is calculated as follows; the net income or loss allocable to the Limited Partners divided by the weighted average number of limited partnership interests outstanding during the period. |
Foreign Currency Transactions | Foreign currency transactions — The Partnership has designated the United States of America dollar as the functional currency for the Partnership’s investments denominated in foreign currencies. Accordingly, certain assets and liabilities are translated at either the reporting period exchange rates or the historical exchange rates, revenues and expenses are translated at the average rate of exchange for the period, and all transaction gains or losses are reflected in the period’s results of operations. |
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 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 consolidated financial statements. |
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Related Party Transactions [Abstract] | |||||||||
Schedule of related party transactions | For the years ended December 31, 2014 and 2013, the Partnership had the following transactions and balanced with Securities: | ||||||||
Year Ended | Year Ended | ||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Balance - beginning of year | $ | 10,797 | $ | — | |||||
Underwriting fees earned by Securities | 543,990 | 196,395 | |||||||
Payments by the Partnership to Securities | (554,787 | ) | (185,598 | ) | |||||
Balance - end of year | $ | — | $ | 10,797 | |||||
For the years ended December 31, 2014 and 2013, the Partnership incurred the following underwriting fee transactions: | |||||||||
Year Ended | Year Ended | ||||||||
31-Dec-14 | December 31, 2013 | ||||||||
Underwriting discount incurred by the Partnership | $ | 723,344 | $ | 540,160 | |||||
Underwriting fees earned by Securities | 543,990 | 196,395 | |||||||
Underwriting fees paid to outside brokers | 596,601 | 7,210 | |||||||
Total underwriting fees | $ | 1,863,935 | $ | 743,765 |
Investments_in_Finance_Leases_
Investments in Finance Leases (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases, Capital [Abstract] | |||||
Schedule of investment in finance leases | At December 31, 2014, net investment in finance leases consisted of the following: | ||||
31-Dec-14 | |||||
Minimum rents receivable | $ | 1,389,721 | |||
Estimated unguaranteed residual value | 360,000 | ||||
Unearned income | (256,943 | ) | |||
$ | 1,492,778 |
Investments_in_Equipment_Subje1
Investments in Equipment Subject to Operating Leases (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Leases, Operating [Abstract] | |||||||||||||
Summary of investments in equipment subject to operating leases | The composition of the equipment subject to operating leases as of December 31, 2014 is as follows: | ||||||||||||
Description | Cost Basis | Accumulated | Net Book Value | ||||||||||
Depreciation | |||||||||||||
Agricultural equipment | $ | 807,239 | $ | 125,677 | $ | 681,562 | |||||||
Aircraft equipment | 3,469,297 | 250,394 | 3,218,903 | ||||||||||
Computer equipment | 671,809 | 233,776 | 438,033 | ||||||||||
Forklifts and fuels cells | 7,188,160 | 1,166,572 | 6,021,588 | ||||||||||
Heavy equipment | 3,047,443 | 435,563 | 2,611,880 | ||||||||||
Industrial | 518,399 | 97,295 | 421,104 | ||||||||||
Machine tools | 556,686 | 68,778 | 487,908 | ||||||||||
Medical | 518,588 | 134,240 | 384,348 | ||||||||||
$ | 16,777,621 | $ | 2,512,295 | $ | 14,265,326 | ||||||||
The composition of the equipment subject to operating leases as of December 31, 2013 is as follows: | |||||||||||||
Description | Cost Basis | Accumulated | Net Book Value | ||||||||||
Depreciation | |||||||||||||
Agricultural equipment | $ | 653,458 | $ | 2,382 | $ | 651,076 | |||||||
Computer equipment | 1,529,807 | 17,505 | 1,512,302 | ||||||||||
Forklifts and fuels cells | 5,473,816 | 26,569 | 5,447,247 | ||||||||||
Heavy equipment | 2,514,627 | 10,244 | 2,504,383 | ||||||||||
Industrial | 466,618 | 2,135 | 464,483 | ||||||||||
Machine tools | 556,686 | 2,943 | 553,743 | ||||||||||
Medical | 32,476 | 120 | 32,356 | ||||||||||
$ | 11,227,488 | $ | 61,898 | $ | 11,165,590 |
Equipment_Notes_Receivable_Tab
Equipment Notes Receivable (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Receivables [Abstract] | |||||
Schedule of future maturity of notes receivable | The future principal maturities of the Partnership’s equipment notes receivable at December 31, 2014 are as follows: | ||||
Years ending December 31, | |||||
2015 | $ | 972,091 | |||
2016 | 770,550 | ||||
2017 | 874,689 | ||||
2018 | 935,115 | ||||
2019 | 748,287 | ||||
Total | $ | 4,318,732 |
Equipment_Loan_Receivable_Tabl
Equipment Loan Receivable (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Equipment Loans Receivable | |||||||||||
Schedule of equipment loans receivable | The composition of the equipment loans receivable in the Echo and Echo II transactions as of December 31, 2014 and 2013 is as follows: | ||||||||||
Description | Maturity | Balance | Balance | ||||||||
Date | 31-Dec-14 | 31-Dec-13 | |||||||||
Furniture and fixtures | 6/30/16 – 4/30/18 | $ | 1,179,460 | $ | 36,860 | ||||||
Fitness | 3/31/15 | 10,514 | 34,209 | ||||||||
Computers | 6/30/14 – 9/30/17 | 456,905 | 104,008 | ||||||||
Forklifts and fuels cells | 3/31/14 – 10/31/17 | 4,498,279 | 5,510,245 | ||||||||
Industrial | 9/30/15 – 12/31/17 | 1,898,917 | 57,060 | ||||||||
Machine tools | 9/30/15 | 918,445 | 42,221 | ||||||||
Medical and research equipment | 1/31/15 – 12/31/17 | 2,436,958 | 746,163 | ||||||||
Total | $ | 11,399,479 | $ | 6,530,766 | |||||||
Schedule of future maturities of loans receivable | The future principal maturities of the Partnership’s equipment loans receivable at December 31, 2014 are as follows: | ||||||||||
Years ending December 31, | |||||||||||
2015 | $ | 3,643,350 | |||||||||
2016 | 3,312,790 | ||||||||||
2017 | 2,555,143 | ||||||||||
2018 | 1,818,656 | ||||||||||
2019 | 69,540 | ||||||||||
Total | $ | 11,399,479 |
Equipment_Notes_Payable_Tables
Equipment Notes Payable (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Disclosure Text Block Supplement [Abstract] | |||||
Schedule of maturities of equipment notes payable | The future maturities of the Partnership’s equipment notes payable at December 31, 2014 are as follows: | ||||
Years ending December 31, | |||||
2015 | $ | 4,380,608 | |||
2016 | 3,376,326 | ||||
2017 | 1,709,203 | ||||
2018 | 893,443 | ||||
2019 | 20,806 | ||||
Total | $ | 10,380,386 |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 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 were as follows: | ||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | ||||||||||||||
Value | Value | ||||||||||||||||
Assets: | |||||||||||||||||
Equipment notes receivable | $ | 4,318,732 | $ | 4,396,712 | $ | 2,692,900 | $ | 2,747,972 | |||||||||
Equipment loans receivable | $ | 11,399,479 | $ | 11,399,479 | $ | 6,550,448 | $ | 6,550,448 | |||||||||
Collateralized loan receivable | $ | — | $ | — | $ | 324,519 | $ | 333,487 | |||||||||
Liabilities: | |||||||||||||||||
Equipment notes payable | $ | 10,380,386 | $ | 10,380,386 | $ | 8,541,339 | $ | 8,541,339 | |||||||||
Loans payable | $ | 11,304,675 | $ | 10,984,066 | $ | 6,825,755 | $ | 6,825,755 |
Income_Tax_Reconciliation_unau1
Income Tax Reconciliation (unaudited) (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Tax Reconciliation Tables | |||||||||
Schedule of income tax reconciliation | The following table reconciles the net loss for financial statement reporting purposes to the net loss for federal income purposes for the years ended December 31, 2014 and 2013: | ||||||||
For the Year Ended | For the Year Ended | ||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
Net loss per consolidated financial statements | $ | (175,218 | ) | $ | (868,157 | ) | |||
Net income from non-includable U.S. entities | — | (28,478 | ) | ||||||
Income attributable to non-controlling interest | 135,636 | 5,696 | |||||||
Organizational costs | 51,155 | 14,500 | |||||||
SQN Echo LLC | 998,317 | (32,603 | ) | ||||||
Unearned interest income | — | 82,024 | |||||||
Net income (loss) for federal income tax purposes | $ | 1,009,890 | (827,018 | ) |
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Selected Quarterly Financial Data Tables | |||||||||||||||||||||
Schedule of Quarterly Financial Data | The following table is a summary of selected financial data, by quarter: | ||||||||||||||||||||
Quarterly Information (unaudited) | Year Ended | ||||||||||||||||||||
December 31, | |||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | 2014 | |||||||||||||||||
Total revenue | $ | 1,215,127 | $ | 1,898,887 | $ | 2,559,864 | $ | 1,828,785 | $ | 7,502,663 | |||||||||||
Net (loss) income allocable to Limited Partners | $ | (150,748 | ) | $ | (250,088 | ) | $ | 372,374 | $ | (63,624 | ) | $ | (92,086 | ) | |||||||
Weighted average number of limited partnership interests outstanding | 9,062.09 | 12,652.66 | 19,314.82 | 23,982.31 | 16,301.74 | ||||||||||||||||
Net (loss) income attributable to Limited Partners per weighted average number of limited partnership interest outstanding | $ | (16.64 | ) | $ | (19.77 | ) | $ | 19.28 | $ | (2.65 | ) | $ | (5.65 | ) | |||||||
Quarterly Information (unaudited) | Year Ended | ||||||||||||||||||||
December 31, | |||||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | 2013 | |||||||||||||||||
Total revenue | $ | — | $ | 1,129 | $ | 9,784 | $ | 287,851 | $ | 298,764 | |||||||||||
Net loss allocable to Limited Partners | $ | — | $ | (159,411 | ) | $ | (389,790 | ) | $ | (310,274 | ) | $ | (859,475 | ) | |||||||
Weighted average number of limited partnership interests outstanding | — | 1,687.56 | 2,589.39 | 6,075.97 | 3,940.39 | ||||||||||||||||
Net loss attributable to Limited Partners per weighted average number of limited partnership interests outstanding | $ | — | $ | (94.46 | ) | $ | (150.53 | ) | $ | (51.07 | ) | $ | (218.12 | ) |
Geographic_Information_Tables
Geographic Information (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||
Schedule of geographic information for revenue | Geographic information for revenue for the years ended December 31, 2014 and 2013 was as follows: | |||||||||||||
Year Ended December 31, 2014 | ||||||||||||||
Revenue: | United States | Europe | Mexico | Total | ||||||||||
Rental income | $ | 4,619,188 | $ | — | $ | — | $ | 4,619,188 | ||||||
Finance income | $ | 114,963 | $ | 77,475 | $ | — | $ | 192,438 | ||||||
Interest income | $ | 1,923,811 | $ | — | $ | 485,472 | $ | 2,409,283 | ||||||
Investment income from equity method investment | $ | 12,701 | $ | — | $ | — | $ | 12,701 | ||||||
Gain on sale of assets | $ | 160,000 | $ | — | $ | — | $ | 160,000 | ||||||
Other income | $ | 6,300 | $ | $ | $ | 6,300 | ||||||||
Year Ended December 31, 2013 | ||||||||||||||
Revenue: | United States | Europe | Mexico | Total | ||||||||||
Rental income | $ | 127,501 | $ | — | $ | — | $ | 127,501 | ||||||
Interest income | $ | 170,263 | $ | — | $ | — | $ | 170,263 | ||||||
Other income | $ | 1,000 | $ | — | $ | — | $ | 1,000 | ||||||
Schedule of geographic information for long-lived assets | Geographic information for long-lived assets at December 31, 2014 and 2013 was as follows: | |||||||||||||
31-Dec-14 | ||||||||||||||
Long-lived assets: | United States | Europe | Mexico | Total | ||||||||||
Investment in finance leases, net | $ | 1,268,085 | $ | 224,693 | $ | — | $ | 1,492,778 | ||||||
Investments in equipment subject to operating leases, net | $ | 14,265,326 | $ | — | $ | — | $ | 14,265,326 | ||||||
Equipment notes receivable, including accrued interest | $ | 1,358,372 | $ | — | $ | 2,983,347 | $ | 4,341,220 | ||||||
Equipment loans receivable, including accrued interest | $ | 11,429,927 | $ | — | $ | — | $ | 11,429,927 | ||||||
Collateralized loan receivable, including accrued interest | $ | — | $ | — | $ | — | $ | — | ||||||
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_Organ
Nature of Operations and Organization (Details Narrative) (USD $) | 1 Months Ended | 12 Months Ended | 9 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | ||||
Oct. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Feb. 28, 2014 | Dec. 31, 2013 | Mar. 26, 2014 | Jun. 30, 2014 | Dec. 20, 2013 | Mar. 28, 2014 | |
N | N | |||||||||
Maximum amount to be raised in offering | $200,000,000 | $200,000,000 | ||||||||
Number of partnership units offered | 200,000 | 200,000 | ||||||||
Price per unit, offering | $1,000 | $1,000 | ||||||||
Capital distribution | 53,700 | -1,259,314 | -54,243 | |||||||
Distributions payable to General Partner | 13,005 | 537 | 13,005 | 537 | ||||||
Cash contributions received | 18,133,012 | 7,046,490 | ||||||||
Limited Partner [Member] | ||||||||||
Percentage of targeted cash distribution | 6.50% | |||||||||
Percentage of targeted cash distribution, quarterly percentage | 1.63% | |||||||||
Cash distribution paid, percentage | 7.00% | |||||||||
Cumulative return for change in distribution | 0.50% | |||||||||
Capital distribution | 817,706 | |||||||||
Number of partners | 463 | |||||||||
Total capital contributions | 26,443,006 | 26,443,006 | ||||||||
Number of capital units outstanding | 26,433.01 | 26,433.01 | ||||||||
Partnership interest | 99.00% | 99.00% | ||||||||
Cash contributions received | 25,179,502 | |||||||||
Cash applied for additional units | 1,263,504 | |||||||||
Partnership additional units purchased | 1,263.50 | |||||||||
SQN Echo LLC [Member] | ||||||||||
Pecentage of ownership | 80.00% | 80.00% | ||||||||
Partnership contribution made | 480,000 | 2,200,000 | ||||||||
Purchase of leases portfolio - unrelated third party | 17,800,000 | |||||||||
Cash payment for lease | 9,300,000 | |||||||||
Non-recourse debt for lease | 8,500,000 | 8,500,000 | 8,500,000 | |||||||
SQN Echo LLC [Member] | Third Party [Member] | ||||||||||
Pecentage of ownership | 20.00% | 20.00% | ||||||||
Partnership contribution made | 120,000 | 550,000 | ||||||||
SQN Echo II [Member] | ||||||||||
Pecentage of ownership | 80.00% | |||||||||
Partnership contribution made | 800,000 | 600,000 | ||||||||
Number of portfolios purchased | 3 | |||||||||
Purchase of leases portfolio - unrelated third party | 21,863,000 | |||||||||
Cash payment for lease | 10,416,000 | |||||||||
Non-recourse debt for lease | 11,447,000 | 11,447,000 | 11,447,000 | |||||||
SQN Echo II [Member] | Third Party [Member] | ||||||||||
Pecentage of ownership | 20.00% | |||||||||
Partnership contribution made | 200,000 | 150,000 | ||||||||
General Partner [Member] | ||||||||||
Capital distribution | -12,468 | -537 | ||||||||
Capital contribution | $100 | $100 | ||||||||
Partnership interest | 1.00% | 1.00% |
Related_Party_Transactions_Det
Related Party Transactions (Details Narrative) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Maximum percentage of average management fee | 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 | $1,500,000 | $875,000 |
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 $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Underwriting fees earned by Securities | $543,990 | $196,395 |
SQN Securities, LLC [Member] | ||
Balance, beginning | 10,797 | |
Underwriting fees earned by Securities | 543,990 | 196,395 |
Payments by the Partnership to Securities | -554,787 | -185,598 |
Balance, ending | $10,797 |
Related_Party_Transactions_Det2
Related Party Transactions (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ||
Underwriting discount incurred by the Partnership | $723,344 | $540,160 |
Underwriting fees earned by Securities | 543,990 | 196,395 |
Fees paid to outside brokers | 596,601 | 7,210 |
Total underwriting fees | $1,863,935 | $743,765 |
Investments_in_Finance_Leases_1
Investments in Finance Leases (Details Narrative) | 12 Months Ended | 13 Months Ended | 0 Months Ended | 0 Months Ended | |||||||
Dec. 31, 2014 | Dec. 31, 2013 | Jul. 31, 2014 | Mar. 28, 2014 | Jul. 31, 2014 | Mar. 28, 2014 | Mar. 28, 2014 | Mar. 28, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Mar. 28, 2014 | |
USD ($) | USD ($) | USD ($) | Wind Turbine Financing Lease [Member] | Wind Turbine Financing Lease [Member] | Wind Turbine Financing Lease [Member] | Medical Equipment Financing Lease 1 [Member] | Medical Equipment Financing Lease 2 [Member] | Medical Equipment Financing Lease 4 [Member] | Medical Equipment Financing Lease 4 [Member] | Medical Equipment Financing Lease 3 [Member] | |
USD ($) | GBP [Member] | GBP [Member] | SQN Echo LLC [Member] | SQN Echo LLC [Member] | USD ($) | USD ($) | SQN Echo LLC [Member] | ||||
USD ($) | GBP (£) | USD ($) | USD ($) | USD ($) | |||||||
Purchase price | $683,455 | £ 409,377 | $247,920 | ||||||||
Lease term | 37 months | 37 months | 48 months | 32 months | |||||||
Monthly lease payments | 4,846 | 7,415 | 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 | 3,080,994 | 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 $) | Dec. 31, 2014 | Dec. 31, 2013 |
Investment, Finance Leases | ||
Minimum rents receivable | $1,389,721 | |
Estimated unguaranteed residual value | 360,000 | |
Unearned income | -256,943 | |
Total investment in finance leases | $1,492,778 |
Investments_in_Equipment_Subje2
Investments in Equipment Subject to Operating Leases (Details Narrative) (USD $) | 3 Months Ended | 12 Months Ended | 13 Months Ended | 0 Months Ended | |||
Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 31, 2014 | Mar. 28, 2014 | Dec. 20, 2013 | Oct. 31, 2014 | |
N | N | ||||||
Proceeds from sale of leased assets | $3,080,994 | $742,110 | |||||
Gain (loss) on sale of assets | 160,000 | ||||||
Depreciation expense | 846,586 | 2,268,327 | |||||
Property Subject to Operating Lease [Member] | |||||||
Purchase price | 21,863,000 | 17,800,000 | |||||
Assets subject to operating leases acquired | 7,800,000 | 11,200,000 | |||||
Proceeds from sale of leased assets | 1,638,193 | ||||||
Net book value of lease at time of sale | 2,139,975 | ||||||
Debt sold | 508,869 | ||||||
Gain (loss) on sale of assets | 7,087 | ||||||
Number of portfolios purchased | 2 | 2 | |||||
Property Subject to Operating Lease [Member] | |||||||
Number of operating lease schedules sold | 2 | ||||||
Proceeds from sale of leased assets | 281,405 | ||||||
Net book value of lease at time of sale | 644,184 | ||||||
Debt sold | 399,827 | ||||||
Gain (loss) on sale of assets | 37,048 | ||||||
Depreciation expense | 3,010,407 | 61,899 | |||||
Operating lease on Airircraft Rotable Parts - A [Member] | |||||||
Assets subject to operating leases acquired | 26,493 | ||||||
Term remaing on lease | 28 months | ||||||
Servicer's interest in operating lease | 5.00% | ||||||
Operating lease on Airircraft Rotable Parts - A [Member] | |||||||
Assets subject to operating leases acquired | $1,800 | ||||||
Term remaing on lease | 28 months | ||||||
Servicer's interest in operating lease | 5.00% |
Investments_in_Equipment_Subje3
Investments in Equipment Subject to Operating Leases (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Net Book Value | $14,265,326 | $11,165,590 |
SQN Echo II And SQN Echo LLC [Member] | ||
Cost Basis | 16,777,621 | 11,227,488 |
Accumulated Depreciation | 2,512,295 | 61,898 |
Net Book Value | 14,265,326 | 11,165,590 |
SQN Echo II And SQN Echo LLC [Member] | Agricultural Equipment [Member] | ||
Cost Basis | 807,239 | 653,458 |
Accumulated Depreciation | 125,677 | 2,382 |
Net Book Value | 681,562 | 651,076 |
SQN Echo II And SQN Echo LLC [Member] | Aircraft Equipment [Member] | ||
Cost Basis | 3,469,297 | |
Accumulated Depreciation | 250,394 | |
Net Book Value | 3,218,903 | |
SQN Echo II And SQN Echo LLC [Member] | Computers [Member] | ||
Cost Basis | 671,809 | 1,529,807 |
Accumulated Depreciation | 233,776 | 17,505 |
Net Book Value | 438,033 | 1,512,302 |
SQN Echo II And SQN Echo LLC [Member] | Forklifts And Fuels Cells [Member] | ||
Cost Basis | 7,188,160 | 5,473,816 |
Accumulated Depreciation | 1,166,572 | 26,569 |
Net Book Value | 6,021,588 | 5,447,247 |
SQN Echo II And SQN Echo LLC [Member] | Heavy Equipment [Member] | ||
Cost Basis | 3,047,443 | 2,514,627 |
Accumulated Depreciation | 435,563 | 10,244 |
Net Book Value | 2,611,880 | 2,504,383 |
SQN Echo II And SQN Echo LLC [Member] | Industrial [Member] | ||
Cost Basis | 518,399 | 466,618 |
Accumulated Depreciation | 97,295 | 2,135 |
Net Book Value | 421,104 | 464,483 |
SQN Echo II And SQN Echo LLC [Member] | Machine tools [Member] | ||
Cost Basis | 556,686 | 556,686 |
Accumulated Depreciation | 68,778 | 2,943 |
Net Book Value | 487,908 | 553,743 |
SQN Echo II And SQN Echo LLC [Member] | Medical and research equipment [Member] | ||
Cost Basis | 518,588 | 32,476 |
Accumulated Depreciation | 134,240 | 120 |
Net Book Value | $384,348 | $32,356 |
Equipment_Notes_Receivable_Det
Equipment Notes Receivable (Details Narrative) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 3 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | 9-May-14 | Sep. 27, 2013 | Dec. 22, 2014 | Feb. 24, 2014 | Jun. 28, 2013 | Oct. 15, 2013 | 2-May-14 | Sep. 30, 2014 | Feb. 24, 2015 | |
Payments received for notes receivable | $2,851,286 | ||||||||||
Mineral Equipment Loan Facility [Member] | |||||||||||
Note receivable | 500,000 | 3,000,000 | |||||||||
Loan facility term | 41 months | 48 months | |||||||||
Frequency of periodic payment | Monthly | Monthly | |||||||||
Loan facility periodic payment | 15,764 | 68,718 | |||||||||
Loan facility periodic payment, before additional fundings | 69,577 | ||||||||||
Interest income | 289,429 | ||||||||||
Advances to loan issuer | 2,500,000 | ||||||||||
Loan facility balloon payment | 500,000 | ||||||||||
Maturity date | 30-Sep-17 | ||||||||||
Description of loan facility collateral | Equipment that refines precious metals and other minerals; guaranteed by its two majority shareholders | Equipment that refines precious metals and other minerals | |||||||||
Effective interest rate | 23.25% | ||||||||||
Payments received for notes receivable | 156,898 | ||||||||||
Net proceeds transferred to lessee | 343,102 | ||||||||||
Mineral ProcessingEquipment Promissory Note [Member] | |||||||||||
Note receivable | 200,000 | ||||||||||
Frequency of periodic payment | 5 Annual payments | ||||||||||
Interest income | 485,472 | 126,292 | |||||||||
Advances to loan issuer | 100,000 | ||||||||||
Mineral Equipment Promissory Note Refinance [Member] | |||||||||||
Note receivable | 2,537,822 | ||||||||||
Loan facility term | 48 months | ||||||||||
Interest income | 204,721 | 79,255 | |||||||||
Loan facility balloon payment | 500,000 | ||||||||||
Medical Equipment Promissory Note [Member] | |||||||||||
Note receivable | 150,000 | ||||||||||
Loan facility term | 36 months | ||||||||||
Frequency of periodic payment | Monthly | ||||||||||
Loan facility periodic payment | 5,100 | ||||||||||
Interest income | 14,991 | 1,997 | |||||||||
Description of loan facility collateral | Medical equipment and other personal property at borrowers principal place of business | ||||||||||
Manufacturing Equipment Loan Facility [Member] | |||||||||||
Note receivable | 300,000 | ||||||||||
Loan facility term | 29 months | ||||||||||
Frequency of periodic payment | Monthly | ||||||||||
Loan facility periodic payment | 12,834 | ||||||||||
Interest income | 39,823 | 10,807 | |||||||||
Description of loan facility collateral | Manufacturing equipment | ||||||||||
Brake Manufacturing Equipment Notes Receivable [Member] | |||||||||||
Note receivable | 667,629 | 432,000 | |||||||||
Frequency of periodic payment | Quarterly | ||||||||||
Loan facility periodic payment | 34,786 | ||||||||||
Interest income | $32,865 | $12,624 | |||||||||
Maturity date | 31-Jan-18 | ||||||||||
Description of loan facility collateral | Brake manufacturing equipment | ||||||||||
Interest rate | 12.50% |
Equipment_Notes_Receivable_Det1
Equipment Notes Receivable (Details) (USD $) | Dec. 31, 2014 |
Future payments due in year ending December 31, | |
2015 | $972,091 |
2016 | 770,550 |
2017 | 874,689 |
2018 | 935,115 |
2019 | 748,287 |
Total | $4,318,732 |
Equipment_Loan_Receivable_Deta
Equipment Loan Receivable (Details Narrative) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | |
Dec. 20, 2013 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 28, 2014 | |
SQN Echo LLC [Member] | |||||
Interest rate | 10.00% | ||||
SQN Echo LLC [Member] | Unrelated Third Party [Member] | |||||
Lease payment | $17,800,000 | ||||
Maturity date | 31-Oct-17 | ||||
Interest rate | 10.00% | ||||
Interest income | 136,909 | 537,072 | 19,682 | ||
Book value of lease at time of sale | 4,470,220 | ||||
Recognized gain on sale of lease | 57,433 | ||||
Loans receivable | 1,090,240 | ||||
SQN Echo LLC [Member] | Unrelated Third Party [Member] | 2nd Portfolios Operating Leases [Member] | |||||
Lease payment | 6,600,000 | ||||
Interest rate | 10.00% | ||||
SQN Echo II [Member] | |||||
Interest rate | 10.00% | ||||
SQN Echo II [Member] | Unrelated Third Party [Member] | |||||
Lease payment | 21,863,000 | ||||
Maturity date | 31-Oct-17 | ||||
Interest rate | 10.00% | ||||
Interest income | 298,317 | 627,555 | |||
SQN Echo II [Member] | Unrelated Third Party [Member] | 2nd Portfolios Operating Leases [Member] | |||||
Lease payment | 12,400,000 | ||||
Interest income | 893,741 | ||||
SQN Echo II [Member] | Unrelated Third Party [Member] | |||||
Cash proceeds from loan | 626,505 | ||||
Outstanding debt elimination | $2,810,908 |
Equipment_Loan_Receivable_Deta1
Equipment Loan Receivable (Details) (SQN Echo II And SQN Echo LLC [Member], USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Maturity Date | 31-Dec-20 |
Balance | $11,399,479 |
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 |
Machine tools [Member] | |
Balance | 918,445 |
Medical and research equipment [Member] | |
Maturity Date, Lower Range | 31-Jan-15 |
Maturity Date, Upper Range | 31-Dec-17 |
Balance | $2,436,958 |
Equipment_Loan_Receivable_Deta2
Equipment Loan Receivable (Details 1) (SQN Echo II And SQN Echo LLC [Member], USD $) | Dec. 31, 2014 |
SQN Echo II And SQN Echo LLC [Member] | |
Maturities of equipment loans receivable | |
2015 | $3,643,350 |
2016 | 3,312,790 |
2017 | 2,555,143 |
2018 | 1,818,656 |
2019 | 69,540 |
Total future maturities of partnership's loans receivable | $11,399,479 |
Residual_Value_Investment_in_E1
Residual Value Investment in Equipment on Lease (Details Narrative) (USD $) | Dec. 31, 2014 | Sep. 15, 2014 | Dec. 31, 2013 |
Purchased residual value interest | $2,192,362 | $3,000,000 | |
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% |
Collateralized_Loan_Receivable1
Collateralized Loan Receivable (Details Narrative) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Jul. 15, 2014 | Nov. 27, 2013 | |
Cash received from collateralized loan receivable | $3,008,056 | |||
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% |
Investment_in_Informage_SQN_Ec
Investment in Informage SQN Echo LLC (Details Narrative) (SQN Echo LLC, USD $) | 0 Months Ended | |
Aug. 01, 2014 | Dec. 31, 2014 | |
Pecentage of ownership (in percent) | 24.50% | |
Advances | $1,219,091 | |
Third Party [Member] | ||
Pecentage of ownership (in percent) | 51.00% | |
Additional capital contributions | 3,850,000 | |
Investment Income | $12,701 |
Other_Assets_Details_Narrative
Other Assets (Details Narrative) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 29, 2014 | Dec. 31, 2013 | |
Other Assets Details Narrative | |||
Other Assets | $4,237,124 | $127,500 | |
Security purchase agreement | 2,601,684 | 2,601,684 | |
Sale of equipment loans receivable | 1,090,240 | ||
Lease transfers | 306,135 | ||
Preferred Shares | 2,615,292 | ||
Income | $13,608 |
Equipment_Notes_Payable_Detail
Equipment Notes Payable (Details Narrative) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 20, 2013 | Mar. 28, 2014 | |
SQN Echo LLC [Member] | |||
Non-recourse debt | 8,500,000 | $8,500,000 | |
SQN Echo II [Member] | |||
Non-recourse debt | 11,447,000 | $11,447,000 | |
SQN Echo II And SQN Echo LLC [Member] | |||
Interest rate,minimum | 2.75% | ||
Interest rate,maximum | 9.25% | ||
Maturity Date | 31-Dec-20 |
Equipment_Notes_Payable_Detail1
Equipment Notes Payable (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Maturities on notes payable due in year ending March 31, | ||
2015 | $4,380,608 | |
2016 | 3,376,326 | |
2017 | 1,709,203 | |
2018 | 893,443 | |
2019 | 20,806 | |
Future maturities of equipment notes payable | $10,380,386 | $8,541,339 |
Loan_Payable_Details_Narrative
Loan Payable (Details Narrative) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Loan payable | $11,304,675 | $6,825,755 |
SQN Echo LLC [Member] | ||
Loan facility | 6,800,000 | |
Stated interest rate | 10.00% | |
Description of interest rate terms | Interest accruing at 10% per annum through July 1, 2014 then at 9% per annum. | |
Loan facility balloon payment | 600,000 | |
Loan payable | 3,852,964 | |
SQN Echo II [Member] | ||
Loan facility | 9,500,000 | |
Stated interest rate | 10.00% | |
Description of interest rate terms | Interest accruing at 10% per annum through February 28, 2014 then at 8.9% per annum. | |
Loan facility balloon payment | 817,525 | |
Loan payable | $7,451,711 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Assets | ||
Equipment notes receivable | $4,341,220 | $2,692,900 |
Equipment loans receivable | 11,429,927 | 6,550,448 |
Collateralized loan recievable | 324,519 | |
Liabilities: | ||
Equipment notes payable | 10,380,386 | 8,541,339 |
Loans payable | 11,304,675 | 6,825,755 |
Carrying Value [Member] | ||
Assets | ||
Equipment notes receivable | 4,318,732 | 2,692,900 |
Equipment loans receivable | 11,399,479 | 6,550,448 |
Collateralized loan recievable | 324,519 | |
Liabilities: | ||
Equipment notes payable | 10,380,386 | 8,541,339 |
Loans payable | 11,304,675 | 6,825,755 |
Fair Value [Member] | ||
Assets | ||
Equipment notes receivable | 4,396,712 | 2,747,972 |
Equipment loans receivable | 11,399,479 | 6,550,448 |
Collateralized loan recievable | 333,487 | |
Liabilities: | ||
Equipment notes payable | 10,380,386 | 8,541,339 |
Loans payable | $10,984,066 | $6,825,755 |
Income_Tax_Reconciliation_unau2
Income Tax Reconciliation (unaudited) (Details Narrative) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Reconciliation Details Narrative | ||
Partners equity included in the financial statements | $20,059,857 | $5,090,194 |
Partners equity for federal income tax purposes | $19,170,521 | $5,067,949 |
Income_Tax_Reconciliation_unau3
Income Tax Reconciliation (unaudited) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income tax reconciliation net loss for financial statement reporting purposes to net loss of federal income | ||
Net loss per consolidated financial statements | ($175,218) | ($868,157) |
Net Income from non-includable U.S. entities | -28,478 | |
Income attributable to non-controlling interest | 135,636 | 5,695 |
Organizational costs | 51,155 | 14,500 |
SQN Echo LLC | 998,317 | -32,603 |
Unearned interest income | 82,024 | |
Net income (loss) federal income purposes | $1,009,890 | ($827,018) |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of selected financial data | ||||||||||
Total revenue | $1,726,032 | $2,559,864 | $1,898,887 | $1,215,127 | $287,851 | $9,784 | $1,129 | $7,399,910 | $298,764 | |
Net income (loss) allocable to Limited Partners | ($145,004) | $372,374 | ($250,088) | ($150,748) | ($310,274) | ($389,790) | ($159,411) | ($173,466) | ($859,475) | |
Weighted average number of limited partnership interests outstanding (in shares) | 23,982.31 | 19,314.82 | 12,652.66 | 9,062.09 | 6,075.97 | 2,589.39 | 1,687.56 | 16,301.74 | 3,940.39 | |
Net income attributable to Limited Partners per weighted average number of limited partnership interests outstanding (in dollars per share) | ($6.05) | $19.28 | ($19.77) | ($16.64) | ($51.07) | ($150.53) | ($94.46) | ($10.64) | ($218.12) |
Business_Concentrations_Detail
Business Concentrations (Details Narrative) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
N | ||
Rental Income Operating Leases [Member] | Lessee #1 [Member] | ||
Concentration risk | 21.00% | 16.00% |
Number of lessees | 2 | |
Rental Income Operating Leases [Member] | Lessee #2 [Member] | ||
Concentration risk | 16.00% | 33.00% |
Number of lessees | 2 | |
Income from Finance Leases [Member] | Lessee #1 [Member] | ||
Concentration risk | 38.00% | |
Number of lessees | 4 | |
Income from Finance Leases [Member] | Lessee #2 [Member] | ||
Concentration risk | 24.00% | |
Income from Finance Leases [Member] | Lessee #1 [Member] | ||
Concentration risk | 46.00% | |
Number of lessees | 3 | |
Income from Finance Leases [Member] | Lessee #3 [Member] | ||
Concentration risk | 20.00% | |
Income from Finance Leases [Member] | Lease #3 [Member] | ||
Concentration risk | 14.00% | |
Income from Finance Leases [Member] | Lease #4 [Member] | ||
Concentration risk | 14.00% | |
Interest Income [Member] | Lessee #1 [Member] | ||
Concentration risk | 19.00% | |
Number of lessees | 2 | |
Interest Income [Member] | Note #1 [Member] | ||
Concentration risk | 69.00% | 85.00% |
Number of loans | 2 | |
Interest Income [Member] | Lessee #2 [Member] | ||
Concentration risk | 11.00% | |
Interest Income [Member] | Lessee #1 [Member] | ||
Concentration risk | 80.00% | |
Number of lessees | 1 | |
Interest Income [Member] | Lessee #1 [Member] | ||
Concentration risk | 18.00% | |
Number of lessees | 1 | |
Interest Income [Member] | Note #2 [Member] | ||
Concentration risk | 15.00% | 10.00% |
Number of lessees | 2 |
Geographic_Information_Details
Geographic Information (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Geographic information for revenue | ||
Rental income | $4,619,188 | $127,501 |
Finance income | 192,438 | |
Interest income | 2,409,283 | 170,263 |
Investment income from equity method investment | 12,701 | |
Gain on sale of assets | 160,000 | |
Other income | 6,300 | 1,000 |
United States [Member] | ||
Geographic information for revenue | ||
Rental income | 4,619,188 | 127,501 |
Finance income | 114,963 | |
Interest income | 1,923,811 | 170,263 |
Investment income from equity method investment | 12,701 | |
Gain on sale of assets | 160,000 | |
Other income | 6,300 | 1,000 |
Europe [Member] | ||
Geographic information for revenue | ||
Rental income | ||
Finance income | 77,475 | |
Interest income | ||
Investment income from equity method investment | ||
Gain on sale of assets | ||
Other income | ||
Mexico [Member] | ||
Geographic information for revenue | ||
Rental income | ||
Finance income | ||
Interest income | 485,472 | |
Investment income from equity method investment | ||
Gain on sale of assets | ||
Other income |
Geographic_Information_Details1
Geographic Information (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Long-lived assets: | ||
Investments in finance leases, net | $1,492,778 | |
Investments in equipment subject to operating leases, net | 14,265,326 | 11,165,590 |
Equipment notes receivable, including accrued interest | 4,341,220 | 2,692,900 |
Equipment loans receivable, including accrued interest | 11,429,927 | 6,550,448 |
Collateralized loan receivable, including accrued interest | 324,519 | |
United States [Member] | ||
Long-lived assets: | ||
Investments in finance leases, net | 1,268,085 | |
Investments in equipment subject to operating leases, net | 14,265,326 | 11,165,590 |
Equipment notes receivable, including accrued interest | 1,358,372 | 402,088 |
Equipment loans receivable, including accrued interest | 11,429,927 | 6,550,448 |
Collateralized loan receivable, including accrued interest | 324,519 | |
Europe [Member] | ||
Long-lived assets: | ||
Investments in finance leases, net | 224,693 | |
Investments in equipment subject to operating leases, net | ||
Equipment notes receivable, including accrued interest | ||
Equipment loans receivable, including accrued interest | ||
Collateralized loan receivable, including accrued interest | ||
Mexico [Member] | ||
Long-lived assets: | ||
Investments in finance leases, net | ||
Investments in equipment subject to operating leases, net | ||
Equipment notes receivable, including accrued interest | 2,983,347 | 2,290,812 |
Equipment loans receivable, including accrued interest | ||
Collateralized loan receivable, including accrued interest |
Subsequent_Events_Details_Narr
Subsequent Events (Details Narrative) (USD $) | 12 Months Ended | 3 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2015 | Mar. 03, 2015 | Jan. 29, 2015 | Jan. 07, 2015 | |
N | ||||||
Cash received from Limited Partner capital contributions | $18,133,012 | $7,046,490 | ||||
Limited Partner capital contributions | 18,856,356 | 7,586,650 | ||||
Subsequent Event [Member] | ||||||
Patricipation Interest | 1,500,000 | |||||
Purchase price of portfolio | 23,201,000 | |||||
Cash paid for portfolio | 11,925,000 | |||||
Nonrecourse Indebtness | 11,276,000 | |||||
Partnership Advance | 103,791 | |||||
Maximum Offering (in units) | 200,000 | |||||
Additional limited partners | 115 | |||||
Cash received from Limited Partner capital contributions | 5,026,342 | |||||
Limited Partner capital contributions | 5,106,883 | |||||
Limited Partner capital contributions (in units) | 5,106.88 | |||||
Underwritting fees paid or accrued to Securities | 150,790 | |||||
Underwritting fees to outside brokers | $276,940 |