Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 12, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | SQN AIF IV, L.P. | |
Entity Central Index Key | 1,560,046 | |
Document Type | 10-Q | |
Trading Symbol | SQNF | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 48,923.10 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,015 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 4,436,047 | $ 4,035,214 |
Investments in finance leases, net | 1,185,073 | 1,492,778 |
Investments in equipment subject to operating leases, net | 1,090,589 | 14,265,326 |
Equipment notes receivable, including accrued interest of $66,365 and $22,488 | 5,308,857 | 4,341,220 |
Equipment loans receivable, including accrued interest of $0 and $30,448 | 11,429,927 | |
Residual value investment in equipment on lease | 2,938,065 | 2,192,362 |
Initial direct costs, net of accumulated amortization of $36,119 and $199,396 | 125,588 | 313,688 |
Collaterized loans receivable, including accrued interest of $59,380 and $0 | 10,874,372 | |
Investment in Informage SQN Technologies LLC | 701,786 | 1,231,792 |
Investment in SQN Helo LLC | 1,075,403 | |
Investment in H&P | 6,743,645 | |
Other assets | 77,240 | 4,237,124 |
Total Assets | 34,556,665 | 43,539,431 |
Liabilities: | ||
Equipment notes payable, non-recourse | 10,380,386 | |
Loans payable | 11,304,675 | |
Accounts payable and accrued liabilities | 142,922 | 178,713 |
Distributions payable to Limited Partners | 429,140 | |
Distributions payable to General Partner | 33,716 | 13,005 |
Security deposits payable | 32,684 | 12,324 |
Total Liabilities | $ 209,322 | $ 22,318,243 |
Commitments and Contingencies | ||
Partners' Equity (Deficit): | ||
Limited Partners | $ 32,616,940 | $ 20,083,196 |
General Partner | (58,347) | (23,339) |
Total Partners' Equity attributable to the Partnership | 32,558,593 | 20,059,857 |
Non-controlling interest in consolidated entities | 1,788,750 | 1,161,331 |
Total Equity | 34,347,343 | 21,221,188 |
Total Liabilities and Partners' Equity | $ 34,556,665 | $ 43,539,431 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Accumulated amortization of initial direct costs | $ 36,119 | $ 199,396 |
Equipment Notes Receivable [Member] | ||
Accrued interest receivable | 66,365 | 22,488 |
Collateralized Loans Receivable [Member] | ||
Accrued interest receivable | 59,380 | 0 |
Equipment Loans Receivable [Member] | ||
Accrued interest receivable | $ 0 | $ 30,448 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenue: | ||||
Rental income | $ 81,116 | $ 1,294,742 | $ 1,645,019 | $ 3,427,328 |
Finance income | 41,089 | 61,870 | 138,466 | 140,057 |
Interest income | 245,922 | 736,770 | 1,015,854 | 1,636,898 |
Investment loss from equity method investments | (192,799) | (486,554) | ||
Gain (loss) on sale of assets | 466,482 | (57,440) | 469,595 | |
Other income | 56,550 | 313,223 | ||
Total Revenue | 231,878 | 2,559,864 | 2,568,568 | 5,673,878 |
Expenses: | ||||
Management fees - Investment Manager | 375,000 | 375,000 | 1,125,000 | 1,125,000 |
Depreciation and amortization | 75,628 | 891,621 | 1,561,227 | 2,397,984 |
Professional fees | 33,810 | 51,508 | 166,986 | 241,242 |
Acquisition costs | 28,532 | |||
Administration expense | 20,499 | 21,619 | 51,342 | 36,409 |
Interest expense | 73,248 | 674,407 | 907,818 | 1,649,063 |
Other expenses | 1,621 | 8,493 | 55,060 | 27,550 |
Total Expenses | 579,806 | 2,022,648 | 3,867,433 | 5,505,780 |
Foreign currency transaction (gains) losses | 38,418 | 40,324 | 18,843 | 25,223 |
Net (loss) income | (386,346) | 496,892 | (1,317,708) | 142,875 |
Net income (loss) attributable to non-controlling interest in consolidated entities | 735 | 120,757 | (85,496) | 171,627 |
Net (loss) income attributable to the Partnership | (387,081) | 376,135 | (1,232,212) | (28,752) |
Net (loss) income attributable to the Partnership | ||||
Limited Partners | (383,210) | 372,374 | (1,219,890) | (28,464) |
General Partner | (3,871) | 3,761 | (12,322) | (288) |
Net (loss) income attributable to the Partnership | $ (387,081) | $ 376,135 | $ (1,232,212) | $ (28,752) |
Weighted average number of limited partnership interests outstanding (in shares) | 40,051.23 | 19,314.82 | 34,520.95 | 13,713.41 |
Net (loss) income attributable to Limited Partners per weighted average number of limited partnership interests outstanding (in dollars per share) | $ (9.46) | $ 19.28 | $ (35.34) | $ (2.08) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Changes in Partners' Equity (Unaudited) - 9 months ended Sep. 30, 2015 - USD ($) | Limited Partnership Interests [Member] | Total | General Partner [Member] | Limited Partners [Member] | Non-controlling Interest [Member] |
Balance, beginning at Dec. 31, 2014 | $ 21,221,188 | $ (23,339) | $ 20,083,196 | $ 1,161,331 | |
Balance, beginning (in shares) at Dec. 31, 2014 | 26,444.01 | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||
Limited Partners' capital contributions | 18,148,068 | 18,148,068 | |||
Limited Partners' capital contributions (in shares) | 18,148.07 | ||||
Non-controlling interest contribution to consolidated entities | 1,788,750 | 1,788,750 | |||
Offering expenses | (325,653) | (325,653) | |||
Underwriting fees | (1,802,204) | (1,802,204) | |||
Net loss | (1,317,708) | (12,322) | (1,219,890) | (85,496) | |
Distributions to partners | (2,091,789) | (20,711) | (2,071,078) | ||
Redemption of non-controlling interest to consolidated entities | (1,075,835) | (1,075,835) | |||
Distribution of income from consolidated entities | (197,474) | (1,975) | (195,499) | ||
Balance, ending at Sep. 30, 2015 | $ 34,347,343 | $ (58,347) | $ 32,616,940 | $ 1,788,750 | |
Balance, ending (in shares) at Sep. 30, 2015 | 44,592.08 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (1,317,708) | $ 142,875 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Finance income | (138,466) | (140,057) |
Accrued interest income | (815,177) | (1,344,045) |
Investment loss from equity method investments | 486,554 | |
Depreciation and amortization | 1,561,227 | 2,397,984 |
Loss (gain) on sale of assets | 57,440 | (469,595) |
Rental income adjustment for Echo and Echo II | 186,048 | |
Foreign currency transaction gains | 12,588 | (4,317) |
Change in operating assets and liabilities: | ||
Minimum rents receivable | 342,916 | 419,594 |
Accrued interest income | 710,793 | 1,156,511 |
Other assets | 4,526,745 | (72,305) |
Accounts payable and accrued liabilities | (35,791) | 47,252 |
Unearned income | (82,024) | |
Due to SQN Securities, LLC | (10,797) | |
Security deposits payable | 20,360 | |
Accrued interest on note payable | (674,826) | 554,194 |
Net cash provided by operating activities | 4,922,703 | 2,595,270 |
Cash flows from investing activities: | ||
Cash paid for purchase of equipment subject to operating leases | (2,929,174) | |
Purchase of finance leases | (1,023,427) | (2,582,377) |
Purchase of residual value investments of equipment subject to lease | (745,703) | (402,976) |
Cash paid for initial direct costs | (64,247) | (142,283) |
Cash paid for collateralized loans receivable | (10,964,992) | (2,686,056) |
Cash received from collateralized loans receivable | 150,000 | 2,145,086 |
Cash paid for equipment loans receivable | (5,836,265) | |
Cash received from equipment loans receivable | 1,128,812 | 1,985,352 |
Proceeds from sale of leased assets | 15,431,895 | 2,494,487 |
Investment in Informage SQN Technologies | (103,532) | (192,500) |
Proceeds from Informage SQN Technologies | 610,936 | |
Investment in SQN Helo | (1,465,000) | |
Investment in H&P | (6,818,000) | |
Cash paid for equipment notes receivable | (1,216,377) | (803,638) |
Repayment of equipment notes receivable | 287,268 | 238,854 |
Net cash used in investing activities | (4,792,367) | (8,711,490) |
Cash flows from financing activities: | ||
Cash received from loan payable | 9,500,000 | |
Repayments of loan payable | (11,304,675) | (3,714,172) |
Cash paid to financial institutions for equipment notes payable | (2,460,262) | (4,970,568) |
Cash received from non-controlling interest contribution | 1,788,750 | 470,000 |
Cash received from Limited Partner capital contributions | 17,948,564 | 14,271,451 |
Cash paid for Limited Partner distributions | (2,500,218) | (817,706) |
Cash paid for Initial Limited Partners contribution redemption | (97,183) | |
Distribution of income from consolidated entities | (197,474) | |
Cash paid for non-controlling interest distributions | (1,075,835) | |
Cash paid for underwriting fees | (1,602,700) | (1,408,690) |
Cash paid for organizational and offering costs | (325,653) | (419,731) |
Net cash provided by financing activities | 270,497 | 12,813,401 |
Net increase in cash and cash equivalents | 400,833 | 6,697,181 |
Cash and cash equivalents, beginning of period | 4,035,214 | 146,340 |
Cash and cash equivalents, end of period | 4,436,047 | 6,843,521 |
Supplemental disclosure of other cash flow information: | ||
Cash paid for interest | 351,678 | 856,168 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Debt assumed in lease purchase agreement | 11,447,351 | |
Units issued as underwriting fee discount | 199,504 | |
Distributions payable to General Partner | 20,711 | |
Debt forgiven on sale of assets | (1,219,553) | |
Reclassification of equipment subject to operating leases to other assets | (181,778) | $ (195,168) |
Increase in equipment loans receivable | $ (108,636) |
Organization and Nature of Oper
Organization and Nature of Operations | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Operations | 1. Organization and Nature of Operations Organization . Nature of Operations The General Partner of the Partnership is SQN AIF IV GP, LLC (the General Partner), a wholly-owned subsidiary of the Partnerships Investment Manager. Both the Partnerships 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 Partnerships 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 was 80% owned by the Partnership and 20% by SQN Alternative Investment Fund III L.P. (Fund III), an entity also sponsored by the Partnerships 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 was presented as non-controlling interest on the condensed 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 consisted of various types of equipment including material handling, semiconductor test and manufacturing equipment, computer, medical, and telecommunications equipment. The second portfolio consisted of lease financings, which were accounted for as loans receivable in the condensed 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. In June 2015, Echo sold all lease portfolios to a third party. The third party paid total cash proceeds of $6,001,324 and assumed related outstanding debt of $3,466,663. The net book value of lease portfolios at the time of sale was $9,978,526, which resulted in the Partnership recognizing a U.S. GAAP loss of $510,539, and a yield on investment of 11.603% which exceeded the originally projected yield of 10%. The Partnership received approximately $2,822,831 in cash from Echo. 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 was 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 was presented as non-controlling interest on the condensed 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 consisted 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 consisted of lease financings, which were accounted for as loans receivable in the condensed 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. In June 2015, Echo II sold all lease portfolios to a third party. The third party paid total cash proceeds of $7,825,000 and assumed related outstanding debt of $5,041,652. The net book value of lease portfolios at the time of sale was $12,902,075, which resulted in the Partnership recognizing a U.S. GAAP loss of $35,423, and a yield on investment of 14.083% which exceeded the originally projected yield of 10%. The Partnership received approximately $1,517,202 in cash from Echo II. On June 3, 2015, SQN Alpha, LLC (Alpha), a special purpose entity which is 32.5% owned by the Partnership and 67.5% owned by SQN Portfolio Acquisition Company, LLC (SQN PAC), acquired a promissory note with a principal amount equal to $2,650,000. The promissory note accrues interest at the rate of 11% per annum, payable quarterly in arrears, and matures on June 30, 2020. The promissory note is secured by a pledge of shares in an investment portfolio of insurance companies under common control of the third party which include equipment leases, direct hard assets and infrastructure investments, and other securities. On June 3, 2015, a participation agreement was entered into between SQN PAC (Participation A), the Partnership (Participation B), Alpha and SQN Capital Management, LLC. Under the agreement, Alpha created two collateralized participation interests for the collateral (Promissory Note); Participation As principal contribution is $1,788,750 and accrues interest at 9% per annum and Participation Bs principal contribution is $861,250 and accrues interest at 15.05% per annum. SQN Capital Management, LLC was appointed as a servicer for the Promissory Note. Participation As interest is senior to Participation Bs interest. Alpha bears the risks and rewards of ownership of the Promissory Note and therefore the note is recorded on Alphas financial statements. Since the Partnership bears the primary risks and rewards of Alpha, the Partnership consolidates Alpha into the condensed consolidated financial statements. SQN PACs 67.5% investment in Alpha is presented as non-controlling interest on the condensed consolidated financial statements. The Partnerships 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 Periods. 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 Partnerships 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 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 Partnerships 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 Partnerships 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 Partnerships 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 towards 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 Partnerships Investment Manager, such distributions are in the Partnerships 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). During the nine months ended September 30, 2015, the Partnership made distributions to its Limited Partners totaling approximately $2,071,078. As of September 30, 2015, the Partnership has accrued $33,716 for distributions payable to General Partner. From May 29, 2013 through September 30, 2015, the Partnership has admitted 872 Limited Partners with total capital contributions of $44,591,073 resulting in the sale of 44,591.08 Units. The Partnership received cash contributions of $42,907,509 and applied $1,683,564 which would have otherwise been paid as sales commission to the purchase of 1,683.56 additional Units. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation Principles of Consolidation Use of Estimates Cash and Cash Equivalents The Partnerships 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 mitigate risk relating to exceeding insured limits. The Partnership, through Summit Asset Management Limited, maintains an unrestricted bank account at a major financial institution in the United Kingdom for purposes of receiving payments and funding transactions in Pound Sterling. Credit Risk Asset Impairments Lease Classification and Revenue Recognition 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 Partnerships policy relating to impairment review. Finance Lease Receivables and Allowance for Doubtful Lease, Notes and Loan Accounts Equipment Notes and Loans Receivable Initial Direct Costs Equity Method Acquisition Expense Income Taxes Per Share Data Foreign Currency Transactions Depreciation Recent Accounting Pronouncements In February 2015, the Financial Accounting Standards Board (FASB) issued new guidance to improve consolidation guidance for legal entities (Accounting Standards Update (ASU) 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis) Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying condensed consolidated financial statements. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 3. Related Party Transactions The General Partner is responsible for the day-to-day operations of the Partnership and the Investment Manager makes all investment decisions and manages the investment portfolio of the Partnership. The Partnership pays the General Partner an allowance for organizational and offering costs not to exceed 2% of all capital contributions received by the Partnership. Because organizational and offering expenses will be paid as and to the extent they are incurred, organizational and offering expenses may be drawn disproportionately to the gross proceeds of each closing. The General Partner also has a promotional interest in the Partnership equal to 20% of all distributed distributable cash, after the Partnership has provided an 8% cumulative return, compounded annually, to the Limited Partners on their capital contributions. The General Partner has a 1% interest in the profits, losses and distributions of the Partnership. The General Partner will initially receive 1% of all distributed distributable cash, which was accrued for at September 30, 2015 and December 31, 2014. The Partnership pays the Investment Manager during the Offering Period, Operating Period and the Liquidation Period a management fee equal to the greater of, (i) 2.5% per annum of the aggregate offering proceeds, or (ii) $125,000, payable monthly, until such time as an amount equal to at least 15% of the Partnerships 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 Partnerships Limited Partners capital contributions returned to them, such amounts are measured on the last day of each month. The management fee is paid regardless of the performance of the Partnership and will be adjusted in the future to reflect the equity raised. For the three months ended September 30, 2015 and 2014, the Partnership paid $375,000 in management fee expense, which is recorded in Management fee Investment Manager in the condensed consolidated statements of operations. For the nine months ended September 30, 2015 and 2014, the Partnership paid $1,125,000 in management fee expense, which is recorded in Management fee Investment Manager in the condensed consolidated statements of operations. Securities, in its capacity as the Partnerships 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 Partnerships Units to the General Partner or its affiliates). For the nine months ended September 30, 2015 and year ended December 31, 2014, the Partnership had the following transactions and balances with Securities: September 30, December 31, (unaudited) Balance - beginning of period $ $ 10,797 Underwriting fees earned by Securities 531,840 543,990 Payments by the Partnership to Securities (531,840 ) (554,787 ) Balance - end of period $ $ For the nine months ended September 30, 2015 and 2014, the Partnership recorded the following underwriting fee transactions: September 30, September 30, Underwriting discount incurred by the Partnership $ 420,060 $ 615,140 Underwriting fees earned by Securities 531,840 409,689 Fees paid to outside brokers 850,304 383,861 Total underwriting fees $ 1,802,204 $ 1,408,690 |
Investments in Finance Leases
Investments in Finance Leases | 9 Months Ended |
Sep. 30, 2015 | |
Leases, Capital [Abstract] | |
Investments in Finance Leases | 4. Investments in Finance Leases At September 30, 2015 and December 31, 2014, net investment in finance leases consisted of the following: September 30, 2015 December 31, 2014 Minimum rents receivable $ 1,415,943 $ 1,389,721 Estimated unguaranteed residual value 71,468 360,000 Unearned income (302,338 ) (256,943 ) Total $ 1,185,073 $ 1,492,778 Computer Networking Equipment On September 1, 2015, the Partnership entered into a new finance lease transaction for computer networking equipment for $446,677. The finance lease requires 36 monthly payments of $14,195. Gamma Knife Suite - TRCL On April 30, 2015, the Partnership acquired from a third party, 20 quarterly lease payments with respect to a gamma knife suite leased to a hospital in the United Kingdom. The Partnership paid £375,000 ($576,750 applying exchange rate of 1.538 at April 30, 2015) for the equipment lease receivables which are payable under the lease from July 2015 through April 2020. The finance lease requires 20 quarterly payments of £25,060. The equipment lease receivables are secured by the gamma knife suite. Medical Equipment On June 30, 2014, the Partnership entered into a finance lease transaction for medical equipment for $247,920. The finance lease requires 48 monthly payments of $7,415. At September 30, 2015, there were no significant changes to this lease. Medical Equipment On March 28, 2014, Echo II purchased three finance leases for medical equipment. One of the leases had a remaining term of 37 months and monthly payments of $4,846. The second lease also has a remaining term of 37 months and monthly payments of $32,416 for the first 13 payments and $22,606 for the last 24 payments. The third lease had a remaining term of 32 months and monthly payments of $14,456. In June 2015, Echo II sold these finance leases to a third party. |
Investments in Equipment Subjec
Investments in Equipment Subject to Operating Leases | 9 Months Ended |
Sep. 30, 2015 | |
Leases, Operating [Abstract] | |
Investments in Equipment Subject to Operating Leases | 5. Investments 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 with a total basis of $1,330,616. Each operating lease had 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. In June 2015, Echo and Echo II sold all their remaining operating leases to a third party. See Note 1 for detailed information on these sales. On March 28, 2014, Echo II entered into an agreement with an unrelated third party for the purchase of two portfolios of leases with a combined total of approximately $21,863,000 of assets. One of the portfolios consisted of approximately $7,800,000 of assets subject to operating leases. On December 20, 2013, Echo entered into an agreement with an unrelated third party for the purchase of two portfolios of leases with a combined total of $17,800,000 of assets. One of the portfolios consisted of approximately $11,200,000 of assets subject to operating leases. The composition of the equipment subject to operating leases of the Partnership as of September 30, 2015 and in the Echo and Echo II transactions as of December 31, 2014 is as follows: September 30, 2015: As of September 30, 2015, Echo and Echo II did not hold equipment subject to operating leases, as all portfolio assets were sold. Description Cost Basis Accumulated Depreciation Net Book Value Aircraft equipment $ 1,330,616 $ 240,027 $ 1,090,589 $ 1,330,616 $ 240,027 $ 1,090,589 December 31, 2014: The December 31, 2014, equipment subject to operating leases reflect the portfolio assets held within Echo and Echo II. Description Cost Basis Accumulated Depreciation Net Book Value 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 Partnership records depreciation expense on equipment when the lease is classified as an operating lease. In order to calculate depreciation, the Partnership first determines the depreciable equipment cost, which is the cost less the estimated residual value. The estimated residual value is the estimate of the value of the equipment at lease termination. Depreciation expense is recorded by applying the straight-line method of depreciation to the depreciable equipment cost over the lease term. Depreciation expense for the three and nine months ended September 30, 2015 was $65,462 and $1,308,880, respectively. |
Equipment Notes Receivable
Equipment Notes Receivable | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Equipment Notes Receivable | 6. Equipment Notes Receivable Medical Equipment On June 28, 2013, the Partnership entered into a $150,000 promissory note to finance the purchase of medical equipment located in Tennessee. The promissory note will be paid through 36 monthly installments of principal and interest of $5,100. The promissory note is secured by the medical equipment and other personal property located at the borrowers principal place of business. The promissory note is guaranteed personally by the officer of the borrower who will make all required note payments if the borrower is unable to perform under the promissory note. For the three and nine months ended September 30, 2015, the medical equipment note earned $1,728 and $6,607 of interest income, 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 borrowers 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 December 2018. 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. In June 2015, the Partnership received a principal payment of $40,000. For the three and nine months ended September 30, 2015, the mineral processing equipment note earned $0 of interest income since this note is in non-accrual status. 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 three and nine months ended September 30, 2015, the manufacturing equipment note earned interest income of $6,510. The borrowers 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 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 guarantees behind the transaction. On April 23, 2015, Superior Court of New Jersey, Law Division, Union County entered a judgment for the full principal balance and accrued interest due, together with attorneys fees, court costs and post-judgment interest against this borrower and the guarantor of the loan in favor of the Partnership. As of September 30, 2015, the outstanding balance of principal and interest is $242,183. 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 three and nine months ended September 30, 2015, the equipment note earned interest income of $10,086 and $32,158, respectively. 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 three and nine months ended September 30, 2015, the medical equipment note earned interest income of $21,064 and $65,316, respectively. Anaerobic Digestion Plant On April 1, 2015, the Partnership entered into a loan facility with a borrower. Under the terms of the loan facility, the Partnership agreed to provide the borrower with financing in an amount up to £310,000 (approximately $475,000 applying various exchange rates) in connection with the construction financing of a waste water processing anaerobic digestion plant (the Plant) located in the United Kingdom. The loan facility accrues interest at a rate of 12% per annum and has a final repayment date of July 31, 2015. The loan facility was extended until completion of the Plant, which is expected to be completed in February 2016. The loan facility is secured by the Plant. As of September 30, 2015, the Partnership advanced the full amount under this facility. For the three and nine months ended September 30, 2015, the equipment note earned interest income of $14,576 and $26,268, respectively. Computer Networking Equipment On June 10, 2015, the Partnership entered into a loan facility to provide financing up to a maximum borrowing of $3,000,000. The loan facility was secured by computer networking equipment. Under this loan facility, in June 2015, the Partnership advanced $319,147 to the borrower (Loan Schedule 01). In September 2015, the Partnership advanced another $319,147 to the borrower (Loan Schedule 02). Each loan schedule requires 36 monthly payments of approximately $10,200, accrues interest at a rate of 16.85% per annum and has a final balloon payment of approximately $48,000. Loan Schedule 01 and Loan Schedule 02 have final repayment dates of April 1, 2018 and August 1, 2018, respectively. For the three and nine months ended September 30, 2015, the equipment notes earned interest income of $15,449 and $17,242, respectively. The future maturities of the Partnerships equipment notes receivable at September 30, 2015 are as follows: Years ending September 30, 2016 $ 2,018,198 2017 1,079,827 2018 1,051,384 2019 863,004 2020 230,079 $ 5,242,492 |
Equipment Loans Receivable
Equipment Loans Receivable | 9 Months Ended |
Sep. 30, 2015 | |
Equipment Loans Receivable | |
Equipment loan Receivable | 7. Equipment Loans Receivable In June 2015, Echo and Echo II sold all their operating leases to a third party. See Note 1 for detailed information on these sales. As a result, as of September 30, 2015, the Partnership did not hold any 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 consisted of approximately $6,600,000 of equipment loans receivable. The loans accrued interest at a rate of 10%. For the three and nine months ended September 30, 2015, the Partnership earned $0 and $192,642 of interest income, 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 consisted of approximately $12,400,000 of equipment loans receivable. The loans accrued interest at a rate of 10%. For the three and nine months ended September 30, 2015, the Partnership earned $0 and $270,455 of interest income, respectively. |
Residual Value Investment in Eq
Residual Value Investment in Equipment on Lease | 9 Months Ended |
Sep. 30, 2015 | |
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 acquire cash handling machines known as Smart Safes having an Original Equipment Cost (OEC) of $20,000,000. This leasing company has entered into a Master Lease Agreement with another third party to lease the Smart Safes under one or more lease schedules each having 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 $17,000,000 (85% of $20,000,000) and the Partnership has agreed to finance the remaining 15% of the OEC up to an aggregate facility of $3,000,000 (15% of $20,000,000). As of September 30, 2015, the Partnership had advanced a net total of $2,938,065. |
Collateralized Loan Receivable
Collateralized Loan Receivable | 9 Months Ended |
Sep. 30, 2015 | |
Collateralized Loan Receivable [Abstract] | |
Collateralized Loan Receivable | 9. Collateralized Loan Receivable On February 4, 2015, the Partnership entered into a loan facility with a borrower to provide financing up to a maximum borrowing of $5,000,000. The borrower entered into an Export Prepayment Facility Agreement dated as of January 21, 2015 and in connection with the Export Prepayment Facility Agreement, the borrower entered into the loan facility with the Partnership and a third party to provide financing up to a maximum borrowing of $50,000,000, whereby the third party funded a total of $13,500,000 and is the senior lender and the Partnership funded a total of $1,500,000 and is the subordinate lender. The loan facility is secured by the borrowers rights under the Export Prepayment Facility Agreement. In connection with the loan facility, the Partnership entered into a $1,500,000 promissory note with the borrower. For the three and nine months ended September 30, 2015, the promissory note earned $27,616 and $69,792 of interest income, respectively. On June 3, 2015, Alpha, a special purpose entity which is 32.5% owned by the Partnership and 67.5% owned by SQN PAC, acquired a promissory note issued by a third party with a principal amount equal to $2,650,000. The promissory note accrues interest at the rate of 11% per annum, payable quarterly in arrears, and matures on June 30, 2020. The promissory note is secured by a pledge of shares in an investment portfolio of insurance companies under common control of the third party which include equipment leases, direct hard asset and infrastructure investments, and other securities. On June 3, 2015, a participation agreement was entered into between SQN PAC (Participation A), the Partnership (Participation B), Alpha and SQN Capital Management, LLC. Under the agreement, Alpha created two collateralized participation interests for the collateral; Participation As principal contribution is $1,788,750 and accruing interest at 9% per annum and Participation Bs principal contribution is $861,250 accruing interest at 15.05% per annum. SQN Capital Management, LLC was appointed as a servicer for the promissory note. Participation As interest is senior to Participation Bs interest. On August 13, 2015, the Partnership entered into a Loan Note Instrument to provide 1,640,000 ($1,824,992 applying exchange rate of 1.1128 at August 13, 2015) (the Facility) of financing to a borrower to acquire shares of a special purpose entity (the SPE). The SPE previously acquired, by assignment, the rights to lease a parcel of land in Ireland on which planning permissions have been granted to construct an aerobic digestion plant (AD Plant). The Facility accrues interest at the rate of 18% per annum, compounding monthly on the last business day of each month, and matures on May 16, 2016. The Facility is secured by the shares of the SPE and also secured by a personal guaranty from the principal owner of the borrower. On September 30, 2015, the Partnership entered into a loan agreement with a borrower to fund $5,000,000 for the capitalization of the borrowers wholly owned insurance subsidiary. In connection with the loan agreement, the Partnership entered into a $5,000,000 promissory note with the borrower. The promissory note accrues interest at the rate of 11% per annum, payable quarterly in arrears, and matures on September 30, 2020. The promissory note is secured by a pledge of shares in an investment portfolio of insurance companies under common control of the borrower which include equipment leases, direct hard asset and infrastructure investments, and other securities. On November 3, 2015, the Partnership received cash of $5,082,192 as payment in full of this collateralized loan receivable. |
Investment in Informage SQN Tec
Investment in Informage SQN Technologies, LLC | 9 Months Ended |
Sep. 30, 2015 | |
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 PAC, an entity managed by the Partnerships 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. 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. As of September 30, 2015, the Partnership has advanced a total of $1,322,622. During the nine months ended September 30, 2015, the Partnership received a return of capital of $610,936. For the three months and nine months ended September 30, 2015, the Partnership recorded investment loss of $7,534 and $22,602 respectively, for its proportionate share of Informage SQNs net loss under the equity method pursuant to U.S. GAAP. |
Investment in SQN Helo LLC
Investment in SQN Helo LLC | 9 Months Ended |
Sep. 30, 2015 | |
Investment In Sqn Helo Llc | |
Investment in SQN Helo LLC | 11. Investment in SQN Helo LLC 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 Asset Finance Income Fund Limited (SQN AFIF), a Guernsey incorporated closed ended investment company, a fund managed by the Partnerships Investment Manager 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 of cash payments 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. The Partnership and SQN PAC each own 50% of SQN Helo. The Partnership accounts for its investment in SQN Helo using the equity method. As of September 30, 2015, the Partnership has advanced a total of $1,465,000. For the three months and nine months ended September 30, 2015, the Partnership recorded investment loss of $110,910 and $389,597 respectively, for its proportionate share of SQN Helos net loss under the equity method pursuant to U.S. GAAP. |
Investment in H&P
Investment in H&P | 9 Months Ended |
Sep. 30, 2015 | |
Investment In Hp | |
Investment in SQN Helo LLC | 12. Investment in H&P On July 23, 2015, the Partnership entered into a collateralized purchase agreement with a third party. Under the terms of the agreement, the Partnership acquired an 88.20% (90% of 98%) economic interest in container feeder vessels, for an aggregate investment of $6,818,000. The Partnership acquired their economic interest in the vessels through a limited partnership interest in a Germany based limited partnership (H&P), which acquired and operates the container feeder vessels. The Partnership accounts for its investment in H&P using the equity method. For the three months and nine months ended September 30, 2015, the Partnership recorded investment loss of $74,355, for its proportionate share of H&Ps net loss under the equity method pursuant to U.S. GAAP. |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2015 | |
Other Assets [Abstract] | |
Other Assets | 13. Other Assets Other assets primarily include a receivable of approximately $77,000 related to income from the participation returns on the Partnerships investments in Informage SQN and SQN Helo. |
Equipment Notes Payable
Equipment Notes Payable | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Equipment Notes Payable | 14. Equipment Notes Payable In June 2015, Echo and Echo II sold all their operating leases to a third party. See Note 1 for detailed information on these sales. As a result, as of September 30, 2015, the Partnership did not hold any 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 was held by multiple lenders with interest rates which ranged from 2.75% to 9.25%. The notes were secured by the underlying assets of each lease. |
Loans Payable
Loans Payable | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Loan Payable | 15. Loans Payable In June 2015, Echo and Echo II sold all their operating leases to a third party. See Note 1 for detailed information on these sales. As of September 30, 2015, the Partnership did not hold any loans payable since Echo and Echo II paid off these loans in full. 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, had 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 had 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 was 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, and fourth, against the outstanding principal balance of the senior participation with any excess distributed to the junior participants. There was no stated repayment term for the principal. In June 2015, Echo paid back approximately $2,564,675 in cash as payment in full of this loan payable. 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, had 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 had 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 was 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, and fourth, against the outstanding principal balance of the senior participation with any excess distributed to the junior participants. There was 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 AFIF. In June 2015, Echo II paid back approximately $5,989,864 in cash as payment in full of this loan payable. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 16. Fair Value of Financial Instruments The Partnerships 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 Partnerships carrying values and approximate fair values of its financial instruments were as follows: September 30, 2015 December 31, 2014 Carrying Value Fair Value Carrying Value Fair Value Assets: Equipment notes receivable $ 5,242,492 $ 5,242,492 $ 4,318,732 $ 4,396,712 Equipment loans receivable $ $ $ 11,399,479 $ 11,399,479 Collateralized loan receivable $ 10,814,992 $ 10,814,992 $ $ Liabilities: Equipment notes payable $ $ $ 10,380,386 $ 10,380,386 Loans payable $ $ $ 11,304,675 $ 10,984,066 As of September 30, 2015, the Partnership evaluated the carrying values of its financial instruments and they approximate fair values. |
Business Concentrations
Business Concentrations | 9 Months Ended |
Sep. 30, 2015 | |
Risks and Uncertainties [Abstract] | |
Business Concentrations | 17. Business Concentrations For the nine months ended September 30, 2015, the Partnership had three lessees which accounted for approximately 21%, 15% and 15% of the Partnerships rental income derived from operating leases. For the nine months ended September 30, 2014, the Partnership had two lessees which accounted for approximately 25% and 11% of the Partnerships rental income derived from operating leases. For the nine months ended September 30, 2015, the Partnership did not have a lessee which accounted for 10% or more of the Partnerships interest income. For the nine months ended September 30, 2014, the Partnership had three lessees which accounted for approximately 17%, 16% and 11% of the Partnerships interest income. At September 30, 2015, the Partnership had three lessees which accounted for approximately 47%, 35% and 18% of the Partnerships investment in finance leases. At September 30, 2014, the Partnership had three lessees which accounted for approximately 47%, 25%, and 19% of the Partnerships investment in finance leases. At September 30, 2015, the Partnership had one lessee which accounted for approximately 100% of the Partnerships investment in operating leases. At September 30, 2014, the Partnership had two lessees which accounted for 21% and 16% of the Partnerships investment in operating leases. At September 30, 2015, the Partnership had three lessees which accounted for approximately 57%, 12% and 11% of the Partnerships investment in equipment notes receivable. At September 30, 2014, the Partnership had two lessees which accounted for approximately 78% and 12% of the Partnerships investment in equipment notes receivable. At September 30, 2015, the Partnership had one lessee which accounted for approximately 100% of the Partnerships investment in residual value leases. |
Geographic Information
Geographic Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Geographic Information | 18. Geographic Information Geographic information for revenue for the three months ended September 30, 2015 and 2014 was as follows: Three Months Ended September 30, 2015 Revenue: United States Europe Mexico Total Rental income $ 81,116 $ $ $ 81,116 Finance income $ 24,100 $ 16,989 $ $ 41,089 Interest income $ 231,343 $ 14,579 $ $ 245,922 Investment loss from equity method investments $ (192,799 ) $ $ $ (192,799 ) Gain (loss) on sale of assets $ $ $ $ Three Months Ended September 30, 2014 Revenue: United States Europe Mexico Total Rental income $ 1,294,742 $ $ $ 1,294,742 Finance income $ 38,343 $ 23,527 $ $ 61,870 Interest income $ 607,924 $ $ 128,846 $ 736,770 Gain on sale of assets $ 466,482 $ $ $ 466,482 Geographic information for revenue for the nine months ended September 30, 2015 and 2014 was as follows: Nine Months Ended September 30, 2015 Revenue: United States Europe Mexico Total Rental income $ 1,645,019 $ $ $ 1,645,019 Finance income $ 105,305 $ 33,161 $ $ 138,466 Interest income $ 989,451 $ 26,403 $ $ 1,015,854 Investment loss from equity method investments $ (486,554 ) $ $ $ (486,554 ) Gain (loss) on sale of assets $ (57,440 ) $ $ $ (57,440 ) Nine Months Ended September 30, 2014 Revenue: United States Europe Mexico Total Rental income $ 3,427,328 $ $ $ 3,427,328 Finance income $ 79,175 $ 60,882 $ $ 140,057 Interest income $ 1,371,661 $ $ 265,237 $ 1,636,898 Gain on sale of assets $ 469,595 $ $ $ 469,595 Geographic information for long-lived assets at September 30, 2015 and December 31, 2014 was as follows: September 30, 2015 Long-lived assets: United States Europe Mexico Total Investment in finance leases, net $ 625,455 $ 559,618 $ $ 1,185,073 Investments in equipment subject to operating leases, net $ 1,090,589 $ $ $ 1,090,589 Equipment notes receivable, including accrued interest $ 2,265,510 $ $ 3,043,347 $ 5,308,857 Collateralized loans receivable, including accrued interest $ 9,006,180 $ 1,868,192 $ $ 10,874,372 December 31, 2014 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 $ 1,357,873 $ $ 2,983,347 $ 4,341,220 Equipment loans receivable, including accrued interest $ 11,429,927 $ $ $ 11,429,927 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 19. Subsequent Events Subsequent to September 30, 2015, the Partnership acquired a loan note from a third party leasing company for approximately $96,000. The loan is secured by a heavy duty tow truck which is owned by a Connecticut-based towing and repair company. Under the terms of the loan agreement, the borrower is required to make 60 monthly payments of principal and interest of $2,041. The loan is scheduled to mature on October 31, 2020. On October 2, 2015, the Partnership entered in a syndicated loan agreement. Under the terms of the agreement, the Partnership agreed to contribute $5,000,000 of the $40,000,000 facility which will be secured by all equipment that will be located a newly constructed lumber mill in Texas. Repayment of the facility is also secured by the lumber mill as well as the real property on which the lumber mill is to be situated. The borrowers parent company also pledged assets located at the parents companys headquarters in Germany as additional collateral for the loan. On October 7, 2015, the Partnership acquired manufacturing equipment for $58,000. The equipment is subject to a 60 month lease with a Connecticut-based engraving, decal and die manufacturing company. The family owned and operated company was originally formed in 1897. The company is composed of five divisions that provide a variety of services to major automotive and consumer appliance manufacturers. On August 5, 2015, the Partnership entered into a Master Equipment Lease agreement to lease approximately $2,700,000 of servers, fixtures and furniture to a third party lessee, an innovative provider of professional office environments. The lessee is required to make monthly payments until all equipment has been delivered and accepted by the lessee. After lease commencement, the equipment will be leased for a 3 year term. At lease maturity the lessee has the option to purchase the equipment for a fixed purchase price. All of the lessees obligations under the lease are guaranteed by the lessees parent company. On October 9, 2015 and October 15, 2015, the Partnership funded approximately $225,000 and $538,000, respectively, under the first two draws under the Master Equipment Lease agreement. On October 13, 2015, the Partnership funded $1,250,000 in connection with its investment in H&P. On October 15, 2015, the Partnership made an additional advance of approximately £150,000 (approximately $232,485 applying exchange rate of 1.550 at October 15, 2015) in connection with the construction financing of the waste water processing anaerobic digestion plant (the Plant) located in the United Kingdom. After construction of the Plant is completed, the Plant operator has agreed to lease the Plant from the lender for a five year term. The Partnership has agreed in advance to purchase the lease receivables from the lender. The lease receivables will be secured by the lenders ownership of the Plant. On November 3, 2015, the Partnership received cash of $5,082,192 as payment in full of a collateralized loan receivable. From October 1, 2015 through November 12, 2015, the Partnership admitted an additional 96 Limited Partners with total cash contributions of $4,205,344, total capital contributions of $4,332,018 and 4,332.02 Units. The Partnership paid or accrued an underwriting fee to Securities and outside brokers totaling $126,160 and $176,568, respectively. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
Principles of Consolidation | Principles of Consolidation |
Use of estimates | Use of Estimates |
Cash and cash equivalents | Cash and Cash Equivalents The Partnerships 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 mitigate risk relating to exceeding insured limits. The Partnership, through Summit Asset Management Limited, maintains an unrestricted bank 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 |
Asset Impairments | Asset Impairments |
Lease Classification and Revenue Recognition | Lease Classification and Revenue Recognition 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 Partnerships 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 |
Equipment Notes and Loans Receivable | Equipment Notes and Loans Receivable |
Initial Direct Costs | Initial Direct Costs |
Equity Method | Equity Method |
Acquisition Expense | Acquisition Expense |
Income Taxes | Income Taxes |
Per Share Data | Per Share Data |
Foreign Currency Transactions | Foreign Currency Transactions |
Depreciation | Depreciation |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2015, the Financial Accounting Standards Board (FASB) issued new guidance to improve consolidation guidance for legal entities (Accounting Standards Update (ASU) 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis) Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying condensed consolidated financial statements. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | For the nine months ended September 30, 2015 and year ended December 31, 2014, the Partnership had the following transactions and balances with Securities: September 30, December 31, (unaudited) Balance - beginning of period $ $ 10,797 Underwriting fees earned by Securities 531,840 543,990 Payments by the Partnership to Securities (531,840 ) (554,787 ) Balance - end of period $ $ For the nine months ended September 30, 2015 and 2014, the Partnership recorded the following underwriting fee transactions: September 30, September 30, Underwriting discount incurred by the Partnership $ 420,060 $ 615,140 Underwriting fees earned by Securities 531,840 409,689 Fees paid to outside brokers 850,304 383,861 Total underwriting fees $ 1,802,204 $ 1,408,690 |
Investments in Finance Leases (
Investments in Finance Leases (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Leases, Capital [Abstract] | |
Schedule of investment in finance leases | At September 30, 2015 and December 31, 2014, net investment in finance leases consisted of the following: September 30, 2015 December 31, 2014 Minimum rents receivable $ 1,415,943 $ 1,389,721 Estimated unguaranteed residual value 71,468 360,000 Unearned income (302,338 ) (256,943 ) Total $ 1,185,073 $ 1,492,778 |
Investments in Equipment Subj29
Investments in Equipment Subject to Operating Leases (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Leases, Operating [Abstract] | |
Summary of investments in equipment subject to operating leases | As of September 30, 2015, Echo and Echo II did not hold equipment subject to operating leases, as all portfolio assets were sold. Description Cost Basis Accumulated Depreciation Net Book Value Aircraft equipment $ 1,330,616 $ 240,027 $ 1,090,589 $ 1,330,616 $ 240,027 $ 1,090,589 The December 31, 2014, equipment subject to operating leases reflect the portfolio assets held within Echo and Echo II. Description Cost Basis Accumulated Depreciation Net Book Value 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 |
Equipment Notes Receivable (Tab
Equipment Notes Receivable (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Schedule of future maturity of notes receivable | The future maturities of the Partnerships equipment notes receivable at September 30, 2015 are as follows: Years ending September 30, 2016 $ 2,018,198 2017 1,079,827 2018 1,051,384 2019 863,004 2020 230,079 $ 5,242,492 |
Fair Value of Financial Instr31
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets measured on a recurring bassis using significant unobservable inputs | The Partnerships carrying values and approximate fair values of its financial instruments were as follows: September 30, 2015 December 31, 2014 Carrying Value Fair Value Carrying Value Fair Value Assets: Equipment notes receivable $ 5,242,492 $ 5,242,492 $ 4,318,732 $ 4,396,712 Equipment loans receivable $ $ $ 11,399,479 $ 11,399,479 Collateralized loan receivable $ 10,814,992 $ 10,814,992 $ $ Liabilities: Equipment notes payable $ $ $ 10,380,386 $ 10,380,386 Loans payable $ $ $ 11,304,675 $ 10,984,066 |
Geographic Information (Tables)
Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of geographic information for revenue | Geographic information for revenue for the three months ended September 30, 2015 and 2014 was as follows: Three Months Ended September 30, 2015 Revenue: United States Europe Mexico Total Rental income $ 81,116 $ $ $ 81,116 Finance income $ 24,100 $ 16,989 $ $ 41,089 Interest income $ 231,343 $ 14,579 $ $ 245,922 Investment loss from equity method investments $ (192,799 ) $ $ $ (192,799 ) Gain (loss) on sale of assets $ $ $ $ Three Months Ended September 30, 2014 Revenue: United States Europe Mexico Total Rental income $ 1,294,742 $ $ $ 1,294,742 Finance income $ 38,343 $ 23,527 $ $ 61,870 Interest income $ 607,924 $ $ 128,846 $ 736,770 Gain on sale of assets $ 466,482 $ $ $ 466,482 Geographic information for revenue for the nine months ended September 30, 2015 and 2014 was as follows: Nine Months Ended September 30, 2015 Revenue: United States Europe Mexico Total Rental income $ 1,645,019 $ $ $ 1,645,019 Finance income $ 105,305 $ 33,161 $ $ 138,466 Interest income $ 989,451 $ 26,403 $ $ 1,015,854 Investment loss from equity method investments $ (486,554 ) $ $ $ (486,554 ) Gain (loss) on sale of assets $ (57,440 ) $ $ $ (57,440 ) Nine Months Ended September 30, 2014 Revenue: United States Europe Mexico Total Rental income $ 3,427,328 $ $ $ 3,427,328 Finance income $ 79,175 $ 60,882 $ $ 140,057 Interest income $ 1,371,661 $ $ 265,237 $ 1,636,898 Gain on sale of assets $ 469,595 $ $ $ 469,595 |
Schedule of geographic information for long-lived assets | Geographic information for long-lived assets at September 30, 2015 and December 31, 2014 was as follows: September 30, 2015 Long-lived assets: United States Europe Mexico Total Investment in finance leases, net $ 625,455 $ 559,618 $ $ 1,185,073 Investments in equipment subject to operating leases, net $ 1,090,589 $ $ $ 1,090,589 Equipment notes receivable, including accrued interest $ 2,265,510 $ $ 3,043,347 $ 5,308,857 Collateralized loans receivable, including accrued interest $ 9,006,180 $ 1,868,192 $ $ 10,874,372 December 31, 2014 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 $ 1,357,873 $ $ 2,983,347 $ 4,341,220 Equipment loans receivable, including accrued interest $ 11,429,927 $ $ $ 11,429,927 |
Organization and Nature of Op33
Organization and Nature of Operations (Details Narrative) | Jun. 03, 2015USD ($) | Mar. 26, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Feb. 28, 2014USD ($) | Dec. 31, 2013USD ($) | Sep. 30, 2015USD ($)$ / sharesshares | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)Number$ / sharesshares | Dec. 31, 2014USD ($) | Mar. 28, 2014USD ($)Number | Dec. 20, 2013USD ($)Number |
Maximum amount to be raised in offering | $ 200,000,000 | $ 200,000,000 | ||||||||||
Number of partnership units offered | shares | 200,000 | 200,000 | ||||||||||
Price per unit, offering | $ / shares | $ 1,000 | $ 1,000 | ||||||||||
Percentage of ownership | 32.50% | |||||||||||
Capital distribution | $ 2,091,789 | |||||||||||
Distributions payable to General Partner | 33,716 | $ 33,716 | $ 13,005 | |||||||||
Cash contributions received | $ 17,948,564 | $ 14,271,451 | ||||||||||
Limited Partner [Member] | ||||||||||||
Percentage of ownership | 80.00% | 80.00% | ||||||||||
Percentage of targeted cash distribution | 6.50% | |||||||||||
Percentage of targeted cash distribution, quarterly percentage | 1.625% | |||||||||||
Capital distribution | $ 2,071,078 | |||||||||||
Number of partners | Number | 872 | |||||||||||
Total capital contributions | $ 44,591,073 | $ 44,591,073 | ||||||||||
Number of capital units outstanding | shares | 44,591.08 | 44,591.08 | ||||||||||
Partnership interest | 99.00% | 99.00% | ||||||||||
Cash contributions received | $ 42,907,509 | |||||||||||
Cash applied for additional units | $ 1,683,564 | |||||||||||
Partnership additional units purchased | shares | 1,683.56 | |||||||||||
Cumulative return for change in distribution | 8.00% | |||||||||||
General Partner [Member] | ||||||||||||
Percentage of ownership | 20.00% | 20.00% | ||||||||||
Distributions payable to General Partner | $ 33,716 | $ 33,716 | ||||||||||
Partnership interest | 1.00% | 1.00% | ||||||||||
General Partner [Member] | ||||||||||||
Capital distribution | $ 20,711 | |||||||||||
Capital contribution | $ 100 | $ 100 | ||||||||||
Partnership interest | 1.00% | 1.00% | ||||||||||
SQN Echo LLC [Member] | ||||||||||||
Percentage of ownership | 80.00% | 80.00% | ||||||||||
Partnership contribution made | $ 480,000 | $ 2,200,000 | ||||||||||
Number of portfolios purchased | Number | 2 | |||||||||||
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 | |||||||||
Cash proceeds from third party | $ 2,822,831 | |||||||||||
Outstanding debt | $ 3,466,663 | |||||||||||
Estimated investment yield | 11.603% | |||||||||||
Actual investment yield | 10.00% | |||||||||||
Debt face amount | $ 6,800,000 | $ 6,800,000 | ||||||||||
SQN Echo LLC [Member] | Third Party [Member] | ||||||||||||
Percentage of ownership | 20.00% | 20.00% | ||||||||||
Partnership contribution made | $ 120,000 | $ 550,000 | ||||||||||
Cash proceeds from third party | $ 6,001,324 | |||||||||||
Net book value of lease portfolios | 9,978,526 | |||||||||||
Gain (oss) on equity method investment | 510,539 | |||||||||||
SQN Echo II [Member] | ||||||||||||
Percentage of ownership | 80.00% | |||||||||||
Partnership contribution made | $ 800,000 | $ 600,000 | ||||||||||
Number of portfolios purchased | Number | 2 | |||||||||||
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 | |||||||||
Cash proceeds from third party | 1,517,202 | |||||||||||
Outstanding debt | $ 5,041,652 | |||||||||||
Estimated investment yield | 14.083% | |||||||||||
Actual investment yield | 10.00% | |||||||||||
Debt face amount | $ 9,500,000 | $ 9,500,000 | ||||||||||
SQN Echo II [Member] | Third Party [Member] | ||||||||||||
Percentage of ownership | 20.00% | |||||||||||
Partnership contribution made | $ 200,000 | $ 150,000 | ||||||||||
Cash proceeds from third party | $ 7,825,000 | |||||||||||
Net book value of lease portfolios | 12,902,075 | |||||||||||
Gain (oss) on equity method investment | $ 35,423 | |||||||||||
SQN Alpha LLC [Member] | ||||||||||||
Percentage of ownership | 67.50% | |||||||||||
SQN Alpha LLC [Member] | 9% Promissory Note [Member] | ||||||||||||
Debt face amount | $ 1,788,750 | |||||||||||
SQN Alpha LLC [Member] | 15.05% Promissory Note [Member] | ||||||||||||
Debt face amount | 861,250 | |||||||||||
SQN Alpha LLC [Member] | 11% Promissory Note Due 2020-06-30 [Member] | ||||||||||||
Debt face amount | $ 2,650,000 | |||||||||||
Description of collateral | The promissory note is secured by a pledge of shares in an investment portfolio of insurance companies under common control of the third party which include equipment leases, direct hard assets and infrastructure investments, and other securities. | |||||||||||
SQN Capital Management, LLC [Member] | ||||||||||||
Percentage of gross proceeds of offering - underwiting fees | 3.00% |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
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 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 Partnerships 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 Partnerships Limited Partners capital contributions returned to them, such amounts are measured on the last day of each month. The management fee is paid regardless of the performance of the Partnership and will be adjusted in the future to reflect the equity raised. For the three months ended September 30, 2015 and 2014, the Partnership paid $375,000 in management fee expense, which is recorded in Management fee Investment Manager in the condensed consolidated statements of operations. For the nine months ended September 30, 2015 and 2014, the Partnership paid $1,125,000 in management fee expense, which is recorded in Management fee Investment Manager in the condensed consolidated statements of operations. | ||
Offering expenses paid | $ 1,125,000 | $ 1,125,000 | |
Percentage of gross proceeds of offering - underwiting fees | 3.00% | ||
SQN AIF IV GP, LLC [Member] | |||
Percentage of promotional interest | 20.00% | ||
Percentage of cumulative return on capital contributions | 8.00% | ||
Percentage interest in profits, losses and distributions of the partnership | 1.00% | ||
Percentage of distributed distributable cash received by general partner | 1.00% | 1.00% |
Related Party Transactions (D35
Related Party Transactions (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Underwriting fees earned by Securities | $ 531,840 | $ 409,689 | |
SQN Securities, LLC [Member] | |||
Balance, beginning | $ 10,797 | $ 10,797 | |
Underwriting fees earned by Securities | $ 531,840 | 543,990 | |
Payments by the Partnership to Securities | $ (531,840) | $ (554,787) | |
Balance, ending |
Related Party Transactions (D36
Related Party Transactions (Details 1) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Related Party Transactions [Abstract] | ||
Underwriting discount incurred by the Partnership | $ 420,060 | $ 615,140 |
Underwriting fees earned by Securities | 531,840 | 409,689 |
Fees paid to outside brokers | 850,304 | 383,861 |
Total underwriting fees | $ 1,802,204 | $ 1,408,690 |
Investments in Finance Leases37
Investments in Finance Leases (Details Narrative) | Sep. 02, 2015USD ($) | Apr. 30, 2015USD ($) | Apr. 30, 2015GBP (£) | Jun. 30, 2014USD ($) | Mar. 28, 2014USD ($) |
Gamma Knife Suite [Member] | |||||
Equipment lease receivables | $ 576,750 | ||||
Exchange rate | 1.538 | ||||
Gamma Knife Suite [Member] | GBP [Member] | |||||
Lease term | 60 months | 60 months | |||
Lease payments | £ | £ 25,060 | ||||
Equipment lease receivables | £ | £ 375,000 | ||||
Computer Networking Equipment [Member] | |||||
Purchase price | $ 446,677 | ||||
Lease term | 36 months | ||||
Lease payments | $ 14,195 | ||||
Medical Equipment Financing Lease 4 [Member] | |||||
Purchase price | $ 247,920 | ||||
Lease term | 48 months | ||||
Lease payments | $ 7,415 | ||||
SQN Echo LLC [Member] | Medical Equipment Financing Lease 1 [Member] | |||||
Lease term | 37 months | ||||
Lease payments | $ 4,846 | ||||
SQN Echo LLC [Member] | Medical Equipment Financing Lease 2 [Member] | |||||
Lease term | 37 months | ||||
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 | ||||
SQN Echo LLC [Member] | Medical Equipment Financing Lease 3 [Member] | |||||
Lease term | 32 months | ||||
Lease payments | $ 14,456 |
Investments in Finance Leases38
Investments in Finance Leases (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Investment, Finance Leases | ||
Minimum rents receivable | $ 1,415,943 | $ 1,389,721 |
Estimated unguaranteed residual value | 71,468 | 360,000 |
Unearned income | (302,338) | (256,943) |
Total investment in finance leases | $ 1,185,073 | $ 1,492,778 |
Investments in Equipment Subj39
Investments in Equipment Subject to Operating Leases (Details Narrative) | Oct. 31, 2014USD ($)Number | Mar. 28, 2014USD ($)Number | Dec. 20, 2013USD ($)Number | Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($) |
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 | |||
Number of portfolios purchased | Number | 2 | 2 | |||
Property Subject to Operating Lease [Member] | |||||
Depreciation expense | $ 65,462 | $ 1,308,880 | |||
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 - B [Member] | |||||
Assets subject to operating leases acquired | $ 1,800 | ||||
Term remaing on lease | 28 months | ||||
Servicer's interest in operating lease | 5.00% | ||||
Operating lease on Airircraft Rotable [Member] | |||||
Number of operating leases | Number | 2 | ||||
Purchase price | $ 1,330,616 |
Investments in Equipment Subj40
Investments in Equipment Subject to Operating Leases (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Net Book Value | $ 1,090,589 | $ 14,265,326 |
SQN Echo II And SQN Echo LLC [Member] | ||
Cost Basis | 1,330,616 | 16,777,621 |
Accumulated Depreciation | 240,027 | 2,512,295 |
Net Book Value | 1,090,589 | 14,265,326 |
SQN Echo II And SQN Echo LLC [Member] | Agricultural Equipment [Member] | ||
Cost Basis | 807,239 | |
Accumulated Depreciation | 125,677 | |
Net Book Value | 681,562 | |
SQN Echo II And SQN Echo LLC [Member] | Aircraft Equipment [Member] | ||
Cost Basis | 1,330,616 | 3,469,297 |
Accumulated Depreciation | 240,027 | 250,394 |
Net Book Value | $ 1,090,589 | 3,218,903 |
SQN Echo II And SQN Echo LLC [Member] | Computer Equipment [Member] | ||
Cost Basis | 671,809 | |
Accumulated Depreciation | 233,776 | |
Net Book Value | 438,033 | |
SQN Echo II And SQN Echo LLC [Member] | Forklifts And Fuels Cells [Member] | ||
Cost Basis | 7,188,160 | |
Accumulated Depreciation | 1,166,572 | |
Net Book Value | 6,021,588 | |
SQN Echo II And SQN Echo LLC [Member] | Heavy Equipment [Member] | ||
Cost Basis | 3,047,443 | |
Accumulated Depreciation | 435,563 | |
Net Book Value | 2,611,880 | |
SQN Echo II And SQN Echo LLC [Member] | Industrial [Member] | ||
Cost Basis | 518,399 | |
Accumulated Depreciation | 97,295 | |
Net Book Value | 421,104 | |
SQN Echo II And SQN Echo LLC [Member] | Machine tools [Member] | ||
Cost Basis | 556,686 | |
Accumulated Depreciation | 68,778 | |
Net Book Value | 487,908 | |
SQN Echo II And SQN Echo LLC [Member] | Medical and research equipment [Member] | ||
Cost Basis | 518,588 | |
Accumulated Depreciation | 134,240 | |
Net Book Value | $ 384,348 |
Equipment Notes Receivable (Det
Equipment Notes Receivable (Details Narrative) | Jun. 10, 2015USD ($) | Apr. 02, 2015USD ($) | Dec. 22, 2014USD ($) | Dec. 19, 2014USD ($) | May. 09, 2014USD ($) | May. 02, 2014USD ($) | Feb. 24, 2014USD ($) | Oct. 15, 2013USD ($) | Sep. 30, 2015USD ($) | Sep. 27, 2013USD ($) | Jun. 28, 2013USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2014 | Jun. 30, 2015USD ($) | Apr. 02, 2015GBP (£) | Feb. 24, 2015USD ($) |
Payments received for notes receivable | $ 1,128,812 | $ 1,985,352 | ||||||||||||||||
Computer Networking Equipment [Member] | ||||||||||||||||||
Note receivable | $ 3,000,000 | |||||||||||||||||
Loan facility term | 36 months | |||||||||||||||||
Frequency of periodic payment | Monthly | |||||||||||||||||
Loan facility periodic payment | $ 10,200 | |||||||||||||||||
Interest income | $ 15,449 | 17,242 | ||||||||||||||||
Advances to loan issuer | 319,147 | |||||||||||||||||
Loan facility balloon payment | $ 48,000 | |||||||||||||||||
Description of loan facility collateral | The loan facility was secured by computer networking equipment. | |||||||||||||||||
Interest rate | 16.85% | |||||||||||||||||
Anaerobic Digestion Plant Loan Facility [Member] | ||||||||||||||||||
Note receivable | $ 475,000 | |||||||||||||||||
Interest income | 14,576 | $ 26,268 | ||||||||||||||||
Maturity date | Jul. 31, 2015 | |||||||||||||||||
Description of loan facility collateral | The loan facility is secured by the Plant.  | |||||||||||||||||
Interest rate | 12.00% | 12.00% | ||||||||||||||||
Anaerobic Digestion Plant Loan Facility [Member] | GBP [Member] | ||||||||||||||||||
Note receivable | £ | £ 310,000 | |||||||||||||||||
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 | |||||||||||||||||
Advances to loan issuer | 2,500,000 | |||||||||||||||||
Loan facility balloon payment | $ 500,000 | |||||||||||||||||
Maturity date | Sep. 30, 2017 | Sep. 30, 2017 | ||||||||||||||||
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 | ||||||||||||||||
Mineral Processing Equipment Promissory Note [Member] | ||||||||||||||||||
Note receivable | $ 200,000 | $ 40,000 | ||||||||||||||||
Frequency of periodic payment | 5 Annual payments | |||||||||||||||||
Interest income | 0 | $ 0 | ||||||||||||||||
Advances to loan issuer | 100,000 | |||||||||||||||||
Maturity date | Jan. 31, 2023 | |||||||||||||||||
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 | |||||||||||||||||
Maturity date | Dec. 31, 2018 | |||||||||||||||||
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 | 1,728 | 6,607 | ||||||||||||||||
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 | 242,183 | ||||||||||||||||
Interest income | 6,510 | 6,510 | ||||||||||||||||
Description of loan facility collateral | Manufacturing equipment | |||||||||||||||||
Brake Manufacturing Equipment Notes Receivable [Member] | ||||||||||||||||||
Note receivable | $ 432,000 | |||||||||||||||||
Frequency of periodic payment | Quarterly | |||||||||||||||||
Loan facility periodic payment | $ 34,786 | |||||||||||||||||
Interest income | 10,086 | 32,158 | ||||||||||||||||
Maturity date | Jan. 31, 2018 | |||||||||||||||||
Description of loan facility collateral | Brake manufacturing equipment | |||||||||||||||||
Interest rate | 12.50% | |||||||||||||||||
Medical Equipment Promissory Note [Member] | ||||||||||||||||||
Note receivable | $ 667,629 | |||||||||||||||||
Loan facility term | 60 months | |||||||||||||||||
Frequency of periodic payment | Monthly | |||||||||||||||||
Loan facility periodic payment | $ 15,300 | |||||||||||||||||
Interest income | 21,064 | 65,316 | ||||||||||||||||
Computer Networking Equipment Loan Facility 2 [Member] | ||||||||||||||||||
Advances to loan issuer | $ 319,147 | 319,147 | 319,147 | |||||||||||||||
Maturity date | Aug. 1, 2018 | |||||||||||||||||
Computer Networking Equipment Loan Facility 1 [Member] | ||||||||||||||||||
Loan facility term | 36 months | |||||||||||||||||
Frequency of periodic payment | Monthly | |||||||||||||||||
Loan facility periodic payment | $ 10,200 | |||||||||||||||||
Advances to loan issuer | $ 319,147 | |||||||||||||||||
Loan facility balloon payment | $ 48,000 | $ 48,000 | $ 48,000 | |||||||||||||||
Maturity date | Apr. 1, 2018 | |||||||||||||||||
Interest rate | 16.85% | 16.85% | 16.85% |
Equipment Notes Receivable (D42
Equipment Notes Receivable (Details) | Sep. 30, 2015USD ($) |
Future payments due in year ending March 31, | |
2,016 | $ 2,018,198 |
2,017 | 1,079,827 |
2,018 | 1,051,384 |
2,019 | 863,004 |
2,020 | 230,079 |
Total | $ 5,242,492 |
Equipment Loans Receivable (Det
Equipment Loans Receivable (Details Narrative) - USD ($) | 9 Months Ended | ||
Sep. 30, 2015 | Mar. 28, 2014 | Dec. 20, 2013 | |
SQN Echo LLC [Member] | |||
Interest rate | 10.00% | ||
SQN Echo LLC [Member] | Unrelated Third Party [Member] | |||
Lease payment | $ 17,800,000 | ||
Interest rate | 10.00% | ||
Interest income | $ 192,642 | ||
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 | ||
Interest rate | 10.00% | ||
SQN Echo II [Member] | Unrelated Third Party [Member] | 2nd Portfolios Operating Leases [Member] | |||
Lease payment | $ 12,400,000 | ||
Interest rate | 10.00% | ||
Interest income | $ 270,455 |
Residual Value Investment in 44
Residual Value Investment in Equipment on Lease (Details Narrative) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 15, 2014 |
Purchased residual value interest | $ 2,938,065 | $ 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 Receivable
Collateralized Loan Receivable (Details Narrative) | Nov. 03, 2015USD ($) | Sep. 30, 2015USD ($) | Aug. 13, 2015USD ($) | Jun. 03, 2015USD ($) | Feb. 04, 2015USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($) | Aug. 13, 2015EUR (€) |
Percentage of ownership | 32.50% | |||||||
SQN Alpha LLC [Member] | ||||||||
Percentage of ownership | 67.50% | |||||||
18% Loan Note Instrument Due 2016-05-16 [Member] | ||||||||
Debt face amount | $ 1,824,992 | |||||||
Description of collateral | Secured by the shares of the SPE and also secured by a personal guaranty from the principal owner of the borrower. | |||||||
18% Loan Note Instrument Due 2016-05-16 [Member] | EUR [Member] | ||||||||
Debt face amount | € | € 1,640,000 | |||||||
11% Promissory Note Due 2020-09-30 [Member] | ||||||||
Advances to loan issuer | $ 5,000,000 | $ 5,000,000 | $ 5,000,000 | |||||
Debt face amount | $ 5,000,000 | 5,000,000 | 5,000,000 | |||||
Description of collateral | Secured by a pledge of shares in an investment portfolio of insurance companies under common control of the borrower which include equipment leases, direct hard asset and infrastructure investments, and other securities. | |||||||
Frequency of periodic payment | Quarterly | |||||||
11% Promissory Note Due 2020-09-30 [Member] | Subsequent Event [Member] | ||||||||
Repayments of debt | $ 5,082,192 | |||||||
11% Promissory Note Due 2020-06-30 [Member] | SQN Alpha LLC [Member] | ||||||||
Debt face amount | $ 2,650,000 | |||||||
Description of collateral | The promissory note is secured by a pledge of shares in an investment portfolio of insurance companies under common control of the third party which include equipment leases, direct hard assets and infrastructure investments, and other securities. | |||||||
9% Promissory Note [Member] | SQN Alpha LLC [Member] | ||||||||
Debt face amount | $ 1,788,750 | |||||||
15.05% Promissory Note [Member] | SQN Alpha LLC [Member] | ||||||||
Debt face amount | $ 861,250 | |||||||
Loan Agreement Unrelated Third Party [Member] | ||||||||
Advances to loan issuer | $ 500,000 | |||||||
Description of maximum borrowing | The borrower entered into an Export Prepayment Facility Agreement dated as of January 21, 2015 and in connection with the Export Prepayment Facility Agreement, the borrower entered into the loan facility with the Partnership and a third party to provide financing up to a maximum borrowing of $50,000,000, whereby the third party funded a total of $13,500,000 and is the senior lender and the Partnership funded a total of $1,500,000 and is the subordinate lender. | |||||||
Interest income | $ 27,616 | $ 69,792 |
Investment in Informage SQN T46
Investment in Informage SQN Technologies, LLC (Details Narrative) - USD ($) | Aug. 01, 2014 | Sep. 30, 2015 | Sep. 30, 2015 | Jun. 03, 2015 |
Percentage of ownership (in percent) | 32.50% | |||
SQN Echo LLC [Member] | ||||
Percentage of ownership (in percent) | 24.50% | |||
Investment loss | $ 7,534 | $ 22,602 | ||
Advances | $ 1,322,622 | 1,322,622 | ||
Return of capital | $ 610,936 | |||
SQN Echo LLC [Member] | Third Party [Member] | ||||
Percentage of ownership (in percent) | 51.00% | |||
Additional capital contributions | $ 3,850,000 |
Investment in SQN Helo LLC (Det
Investment in SQN Helo LLC (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2015 | Jun. 03, 2015 | Jan. 07, 2015 | |
Percentage of ownership (in percent) | 32.50% | |||
SQN Helo, LLC [Member] | ||||
Percentage of ownership (in percent) | 50.00% | |||
Investment loss | $ 110,910 | $ 389,597 | ||
Equity method investment advances | $ 1,465,000 | $ 1,465,000 | ||
Participation interest | $ 1,500,000 | |||
Purchase price of portfolio | 23,201,000 | |||
Cash paid for portfolio | 11,925,000 | |||
Nonrecourse indebtness | $ 11,276,000 | |||
SQN Helo, LLC [Member] | SQN PAC [Member] | ||||
Percentage of ownership (in percent) | 50.00% | |||
Participation interest | $ 1,500,000 |
Investment in H&P (Details Narr
Investment in H&P (Details Narrative) - USD ($) | Jul. 23, 2015 | Sep. 30, 2015 | Sep. 30, 2015 | Jun. 03, 2015 |
Percentage of ownership | 32.50% | |||
Investment in equity method investment | $ (6,818,000) | |||
Loss from equity method investment | $ (192,799) | (486,554) | ||
H&P [Member] | ||||
Percentage of ownership | 88.20% | |||
Investment in equity method investment | $ 6,818,000 | |||
Loss from equity method investment | $ 74,355 | $ 74,355 |
Other Assets (Details Narrative
Other Assets (Details Narrative) | Sep. 30, 2015USD ($) |
Other Assets Details Narrative | |
Other assets | $ 77,000 |
Equipment Notes Payable (Detail
Equipment Notes Payable (Details Narrative) - USD ($) | 9 Months Ended | ||
Sep. 30, 2015 | Mar. 28, 2014 | Dec. 20, 2013 | |
SQN Echo II And SQN Echo LLC [Member] | |||
Interest rate,minimum | 2.75% | ||
Interest rate,maximum | 9.25% | ||
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 |
Loan Payable (Details Narrative
Loan Payable (Details Narrative) - USD ($) | 9 Months Ended | ||
Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |
Loan payable | $ 11,304,675 | ||
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 February 28, 2014, then at 8.9% per annum | ||
Loan facility balloon payment | $ 600,000 | ||
Loan payable | $ 2,564,675 | ||
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 July 1, 2014, then at 9% per annum | ||
Loan facility balloon payment | $ 817,525 | ||
Loan payable | $ 5,989,864 |
Fair Value of Financial Instr52
Fair Value of Financial Instruments (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Equipment notes receivable | $ 5,308,857 | $ 4,341,220 |
Equipment loans receivable | 11,429,927 | |
Collateralized loan recievable | 10,874,372 | |
Liabilities: | ||
Equipment notes payable | 10,380,386 | |
Loans payable | 11,304,675 | |
Carrying Value [Member] | ||
Assets | ||
Equipment notes receivable | 5,242,492 | 4,318,732 |
Equipment loans receivable | 11,399,479 | |
Collateralized loan recievable | 10,814,992 | |
Liabilities: | ||
Equipment notes payable | 10,380,386 | |
Loans payable | 11,304,675 | |
Fair Value [Member] | ||
Assets | ||
Equipment notes receivable | 5,242,492 | 4,396,712 |
Equipment loans receivable | 11,399,479 | |
Collateralized loan recievable | $ 10,814,992 | |
Liabilities: | ||
Equipment notes payable | 10,380,386 | |
Loans payable | $ 10,984,066 |
Business Concentrations (Detail
Business Concentrations (Details Narrative) - Number | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Rental Income Operating Leases [Member] | Lessee #1 [Member] | ||
Concentration risk | 21.00% | 25.00% |
Number of lessees | 3 | 2 |
Rental Income Operating Leases [Member] | Lessee #2 [Member] | ||
Concentration risk | 15.00% | 11.00% |
Rental Income Operating Leases [Member] | Lessee #3 [Member] | ||
Concentration risk | 15.00% | |
Interest Income [Member] | Lessee #1 [Member] | ||
Concentration risk | 10.00% | 17.00% |
Number of lessees | 3 | |
Interest Income [Member] | Lessee #2 [Member] | ||
Concentration risk | 16.00% | |
Interest Income [Member] | Lessee #3 [Member] | ||
Concentration risk | 11.00% | |
Investment in Finance Leases [Member] | Lessee #2 [Member] | ||
Concentration risk | 35.00% | 25.00% |
Investment in Finance Leases [Member] | Lessee #1 [Member] | ||
Concentration risk | 47.00% | 47.00% |
Number of lessees | 3 | 3 |
Investment in Finance Leases [Member] | Lessee #3 [Member] | ||
Concentration risk | 18.00% | |
Investment in Finance Leases [Member] | Lessee #3 [Member] | ||
Concentration risk | 19.00% | |
Investment in operating Leases [Member] | Lessee #2 [Member] | ||
Concentration risk | 16.00% | |
Investment in operating Leases [Member] | Lessee #1 [Member] | ||
Concentration risk | 100.00% | 21.00% |
Number of lessees | 1 | 2 |
Investment in Equipment Notes Receivable [Member] | Lessee #2 [Member] | ||
Concentration risk | 12.00% | |
Investment in Equipment Notes Receivable [Member] | Lessee #3 [Member] | ||
Concentration risk | 11.00% | |
Investment in Equipment Notes Receivable [Member] | Lessee #1 [Member] | ||
Concentration risk | 57.00% | 78.00% |
Number of lessees | 3 | 2 |
Investment in Equipment Notes Receivable [Member] | Lessee #2 [Member] | ||
Concentration risk | 12.00% | |
Investment in Residual Value Leases [Member] | Lessee #1 [Member] | ||
Concentration risk | 100.00% | |
Number of lessees | 1 |
Geographic Information (Details
Geographic Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Geographic information for revenue | ||||
Rental income | $ 81,116 | $ 1,294,742 | $ 1,645,019 | $ 3,427,328 |
Finance income | 41,089 | 61,870 | 138,466 | 140,057 |
Interest income | 245,922 | 736,770 | 1,015,854 | 1,636,898 |
Investment loss from equity method investments | (192,799) | (486,554) | ||
Gain (loss) on sale of assets | 466,482 | (57,440) | 469,595 | |
United States [Member] | ||||
Geographic information for revenue | ||||
Rental income | 81,116 | 1,294,742 | 1,645,019 | 3,427,328 |
Finance income | 24,100 | 38,343 | 105,305 | 79,175 |
Interest income | 231,343 | 607,924 | 989,451 | 1,371,661 |
Investment loss from equity method investments | (192,799) | (486,554) | ||
Gain (loss) on sale of assets | 466,482 | (57,440) | 469,595 | |
Europe [Member] | ||||
Geographic information for revenue | ||||
Finance income | 16,989 | 23,527 | 33,161 | 60,882 |
Interest income | $ 14,579 | $ 26,403 | ||
Mexico [Member] | ||||
Geographic information for revenue | ||||
Interest income | $ 128,846 | $ 265,237 |
Geographic Information (Detai55
Geographic Information (Details 1) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Long-lived assets: | ||
Investments in finance leases, net | $ 1,185,073 | $ 1,492,778 |
Investments in equipment subject to operating leases, net | 1,090,589 | 14,265,326 |
Equipment notes receivable, including accrued interest | 5,308,857 | 4,341,220 |
Equipment loans receivable, including accrued interest | 11,429,927 | |
Collateralized loan receivable, including accrued interest | 10,874,372 | |
United States [Member] | ||
Long-lived assets: | ||
Investments in finance leases, net | 625,455 | 1,268,085 |
Investments in equipment subject to operating leases, net | 1,090,589 | 14,265,326 |
Equipment notes receivable, including accrued interest | 2,265,510 | 1,357,873 |
Equipment loans receivable, including accrued interest | 11,429,927 | |
Collateralized loan receivable, including accrued interest | 9,006,180 | |
Europe [Member] | ||
Long-lived assets: | ||
Investments in finance leases, net | 559,618 | 224,693 |
Collateralized loan receivable, including accrued interest | 1,868,192 | |
Mexico [Member] | ||
Long-lived assets: | ||
Equipment notes receivable, including accrued interest | $ 3,043,347 | $ 2,983,347 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) | Nov. 03, 2015USD ($) | Oct. 15, 2015USD ($) | Oct. 13, 2015USD ($) | Oct. 09, 2015USD ($) | Oct. 07, 2015USD ($) | Oct. 02, 2015USD ($) | Sep. 30, 2015USD ($) | Aug. 05, 2015USD ($) | Jul. 23, 2015USD ($) | Apr. 02, 2015 | Nov. 12, 2015USD ($)Numbershares | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Oct. 15, 2015GBP (£) |
Investment in equity method investment | $ (6,818,000) | |||||||||||||
Cash contributions received | 17,948,564 | $ 14,271,451 | ||||||||||||
Fees paid to outside brokers | 850,304 | $ 383,861 | ||||||||||||
Anaerobic Digestion Plant Loan Facility [Member] | ||||||||||||||
Description of collateral | The loan facility is secured by the Plant.  | |||||||||||||
H&P [Member] | ||||||||||||||
Investment in equity method investment | $ 6,818,000 | |||||||||||||
Master Equipment Lease Agreement [Member] | ||||||||||||||
Purchase price | $ 2,700,000 | |||||||||||||
Term remaing on lease | 3 years | |||||||||||||
11% Promissory Note Due 2020-09-30 [Member] | ||||||||||||||
Debt face amount | $ 5,000,000 | 5,000,000 | ||||||||||||
Description of collateral | Secured by a pledge of shares in an investment portfolio of insurance companies under common control of the borrower which include equipment leases, direct hard asset and infrastructure investments, and other securities. | |||||||||||||
Advances to loan issuer | $ 5,000,000 | 5,000,000 | ||||||||||||
Subsequent Event [Member] | Limited Partners [Member] | ||||||||||||||
Number of partners | Number | 96 | |||||||||||||
Cash contributions received | $ 4,205,344 | |||||||||||||
Total capital contributions | $ 4,332,018 | |||||||||||||
Number of capital units outstanding | shares | 4,332.02 | |||||||||||||
Payments by the partnership to securities | $ 126,160 | |||||||||||||
Fees paid to outside brokers | $ 176,568 | |||||||||||||
Subsequent Event [Member] | Anaerobic Digestion Plant Loan Facility [Member] | ||||||||||||||
Debt instrument term | 5 years | |||||||||||||
Advances to loan issuer | $ 232,485 | |||||||||||||
Subsequent Event [Member] | Anaerobic Digestion Plant Loan Facility [Member] | GBP [Member] | ||||||||||||||
Advances to loan issuer | £ | £ 150,000 | |||||||||||||
Subsequent Event [Member] | H&P [Member] | ||||||||||||||
Investment in equity method investment | $ 1,250,000 | |||||||||||||
Subsequent Event [Member] | Manufacturing Equipment [Member] | ||||||||||||||
Purchase price | $ 58,000 | |||||||||||||
Term remaing on lease | 60 months | |||||||||||||
Subsequent Event [Member] | Master Equipment Lease Agreement [Member] | ||||||||||||||
Purchase price | $ 538,000 | $ 225,000 | ||||||||||||
Subsequent Event [Member] | Loan Note Due 2020-10-31 [Member] | ||||||||||||||
Debt face amount | $ 96,000 | $ 96,000 | ||||||||||||
Description of collateral | Secured by a heavy duty tow truck which is owned by a Connecticut-based towing and repair company. | |||||||||||||
Debt instrument term | 60 months | |||||||||||||
Monthly periodic payment | $ 2,041 | |||||||||||||
Subsequent Event [Member] | Syndicated Loan Agreement [Member] | ||||||||||||||
Debt face amount | $ 5,000,000 | |||||||||||||
Description of collateral | Secured by all equipment that will be located a newly constructed lumber mill in Texas. | |||||||||||||
Advances to loan issuer | $ 40,000,000 | |||||||||||||
Subsequent Event [Member] | 11% Promissory Note Due 2020-09-30 [Member] | ||||||||||||||
Repayments of debt | $ 5,082,192 |