Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 14, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | SQN AIF IV, L.P. | |
Entity Central Index Key | 1,560,046 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 74,965.07 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,017 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 906,329 | $ 2,042,423 |
Investments in finance leases, net | 7,220,063 | 7,746,800 |
Investments in equipment subject to operating leases, net | 8,720,949 | 356,703 |
Equipment notes receivable, including accrued interest of $221,744 and $73,381 | 19,313,106 | 31,181,356 |
Residual value investment in equipment on lease | 2,775,060 | 2,860,153 |
Initial direct costs, net of accumulated amortization of $349,561 and $205,765 | 257,949 | 371,144 |
Collaterized loans receivable, including accrued interest of $2,218,477 and $1,092,823 | 36,563,142 | 29,357,856 |
Equipment investment through SPV | 38,012,103 | 39,491,553 |
Other assets | 2,569,593 | 2,487,667 |
Total Assets | 116,870,543 | 116,757,454 |
Liabilities: | ||
Loans payable | 65,044,182 | 60,589,483 |
Equipment notes payable, non-recourse | 84,247 | |
Accounts payable and accrued liabilities | 2,805,102 | 1,661,361 |
Deferred revenue | 135,652 | 534,567 |
Distributions payable to Limited Partners | 1,485,435 | 1,504,296 |
Distributions payable to General Partner | 114,681 | 85,116 |
Security deposits payable | 74,581 | 74,581 |
Total Liabilities | 69,743,880 | 64,449,404 |
Commitments and Contingencies | ||
Partners' Equity (Deficit): | ||
Limited Partners | 42,896,695 | 47,801,079 |
General Partner | (224,824) | (176,729) |
Total Partners' Equity attributable to the Partnership | 42,671,871 | 47,624,350 |
Non-controlling interest in consolidated entities | 4,454,792 | 4,683,700 |
Total Equity | 47,126,663 | 52,308,050 |
Total Liabilities and Partners' Equity | 116,870,543 | 116,757,454 |
SQN Technologies LLC [Member] | ||
Assets | ||
Investment | 532,249 | 544,189 |
SQN Helo, LLC [Member] | ||
Assets | ||
Investment | $ 317,610 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Equipment notes receivable accrued interest | $ 221,744 | $ 73,381 |
Initial direct costs net of accumulated amortization | 349,561 | 205,765 |
Collateralized loans receivable accrued interest | $ 2,218,477 | $ 1,092,823 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenue: | ||||
Rental income | $ 498,809 | $ 81,116 | $ 1,010,276 | $ 162,232 |
Finance income | 473,785 | 308,436 | 1,031,446 | 464,278 |
Interest income | 1,234,232 | 1,135,132 | 2,748,696 | 1,733,178 |
Income from equipment investment through SPV | 3,672,537 | 4,365,368 | 7,037,186 | 8,672,193 |
Investment loss from equity method investments | (5,970) | (28,050) | (11,940) | (92,584) |
Gain on sale of assets | 15,386 | 263,023 | ||
Other income | 13,419 | 125,521 | 26,837 | 181,418 |
Total Revenue | 5,902,198 | 5,987,523 | 12,105,524 | 11,120,715 |
Expenses: | ||||
Management fees - Investment Manager | 375,000 | 375,000 | 750,000 | 750,000 |
Depreciation and amortization | 603,294 | 94,775 | 1,314,659 | 215,468 |
Professional fees | 158,181 | 86,135 | 337,148 | 144,885 |
Administration expense | 24,707 | 48,918 | 39,132 | 65,829 |
Interest expense | 1,238,861 | 755,153 | 2,534,516 | 1,312,115 |
Other expenses | 22,332 | 69,468 | 38,825 | 285,835 |
Expenses from equipment investment through SPV (including depreciation expense of approximately $726,000 and $1,451,000 for the three and six months ending June 30, 2017, respectively) | 4,831,316 | 4,358,926 | 9,607,145 | 8,839,835 |
Total Expenses | 7,253,691 | 5,788,375 | 14,621,425 | 11,613,967 |
Foreign currency transaction (gains) losses | (116,611) | 647,490 | (226,529) | 780,067 |
Net loss | (1,234,882) | (448,342) | (2,289,372) | (1,273,319) |
Net (loss) income attributable to non-controlling interest in consolidated entities | (195,077) | 1,140 | (422,801) | (15,773) |
Net loss attributable to the Partnership | (1,039,805) | (449,482) | (1,866,571) | (1,257,546) |
Net loss attributable to the Partnership | ||||
Limited Partners | (1,029,407) | (444,987) | (1,847,905) | (1,244,971) |
General Partner | (10,398) | (4,495) | (18,666) | (12,575) |
Net loss attributable to the Partnership | $ (1,039,805) | $ (449,482) | $ (1,866,571) | $ (1,257,546) |
Weighted average number of limited partnership interests outstanding | 74,965.07 | 74,965.06 | 74,965.07 | 68,269.81 |
Net loss attributable to Limited Partners per weighted average number of limited partnership interests outstanding | $ (13.73) | $ (5.94) | $ (24.65) | $ (18.24) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||
Depreciation expense | $ 726,000 | $ 1,451,000 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Changes in Partners' Equity (Unaudited) - 6 months ended Jun. 30, 2017 - USD ($) | Limited Partnership Interests [Member] | Total | General Partner [Member] | Limited Partners [Member] | Non-controlling Interest [Member] |
Balance at Dec. 31, 2016 | $ 52,308,050 | $ (176,729) | $ 47,801,079 | $ 4,683,700 | |
Balance, shares at Dec. 31, 2016 | 74,966.07 | ||||
Non-controlling interest contribution to consolidated entities | 2,007,203 | 2,007,203 | |||
Net loss | (2,289,372) | (18,666) | (1,847,905) | (422,801) | |
Distributions to partners | (2,986,084) | (29,565) | (2,956,519) | ||
Redemption of non-controlling interest | (596) | (596) | |||
Retained loss of non-controlling interest to consolidated entities | (1,812,714) | (1,812,714) | |||
Redemption of initial Limited Partners' contributions | (99,824) | (99,824) | |||
Balance at Jun. 30, 2017 | $ 47,126,663 | $ (224,960) | $ 42,896,831 | $ 4,454,792 | |
Balance, shares at Jun. 30, 2017 | 74,966.07 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (2,289,372) | $ (1,273,319) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Finance income | (1,031,446) | (464,278) |
Accrued interest income | (2,356,730) | (1,457,913) |
Investment loss from equity method investments | 11,940 | 92,584 |
Depreciation and amortization | 1,314,659 | 215,468 |
Gain on sale of assets | (263,023) | |
Foreign currency transaction (gains) losses | (225,852) | 775,696 |
Change in operating assets and liabilities: | ||
Minimum rents receivable | 2,811,604 | 1,214,514 |
Accrued interest income | 896,901 | 657,879 |
Subscriptions receivable | ||
Other assets | (81,926) | 2,151,061 |
Accounts payable and accrued liabilities | 629,112 | (491,517) |
Deferred revenue | (172,546) | 182,000 |
Security deposits payable | (20,361) | |
Accrued interest on note payable | 547,421 | 1,070,684 |
Net cash (used in) provided by operating activities | (209,258) | 2,652,498 |
Cash flows from investing activities: | ||
Purchase of finance leases | (2,729,966) | |
Cash received from residual value investments of equipment subject to lease | 85,093 | 1,939 |
Cash paid for initial direct costs | (32,602) | (153,338) |
Cash reimbursement received for initial direct costs | 70,250 | |
Cash paid for collateralized loans receivable | (6,274,182) | (2,307,163) |
Cash received from collateralized loans receivable | 194,550 | 644,795 |
Proceeds from sale of leased assets and equipment notes | 14,700,768 | |
Proceeds from Informage SQN Technologies | 80,000 | |
Equipment investment through SPV | 1,479,450 | 1,749,706 |
Cash paid for equipment notes receivable | (370,187) | (20,044,224) |
Repayment of equipment notes receivable | 1,095,159 | 1,010,612 |
Net cash provided by (used in) investing activities | 10,878,049 | (21,677,389) |
Cash flows from financing activities: | ||
Cash received from loan payable | 326,268 | 8,510,651 |
Repayments of loan payable | (5,664,568) | (2,178,039) |
Cash paid to financial institutions for equipment notes payable | (3,585,274) | |
Cash received from non-controlling interest contribution | 2,007,203 | |
Cash received from Limited Partner capital contributions | 19,146,741 | |
Cash paid for Limited Partner distributions | (2,975,380) | (3,730,268) |
Cash paid for Initial Limited Partners contribution redemption | (99,824) | (25,191) |
Retained loss of non-controlling interest to consolidated entities | (1,812,714) | |
Cash paid for non-controlling interest distributions | (596) | (594) |
Cash paid for underwriting fees | (1,446,569) | |
Cash paid for offering costs | (102,330) | |
Net cash (used in) provided by financing activities | (11,804,885) | 20,174,401 |
Net (decrease) increase in cash and cash equivalents | (1,136,094) | 1,149,510 |
Cash and cash equivalents, beginning of period | 2,042,423 | 4,782,256 |
Cash and cash equivalents, end of period | 906,329 | 5,931,766 |
Supplemental disclosure of other cash flow information: | ||
Cash paid for interest | 1,485,329 | 96,527 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Debt assumed in lease purchase agreement | 3,669,521 | |
Units issued as underwriting fee discount | 503,338 | |
Distributions payable to General Partner | 29,565 | 27,159 |
Distributions payable to Limited Partners | 1,485,435 | |
Reclassification of equipment notes receivable to investment in finance leases | 2,861,620 | |
Reclassification of initial direct cost to collateralized loans receivable | 10,000 | |
Increase in operating and finance leases due to consolidation | (13,232,709) | |
Increase in equipment notes and loans payable due to consolidation | 12,915,099 | |
Increase in collateralized loans receivable | $ (6,912,301) |
Organization and Nature of Oper
Organization and Nature of Operations | 6 Months Ended |
Jun. 30, 2017 | |
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 Partnership’s Investment Manager. Both the Partnership’s General Partner and its Investment Manager are Delaware limited liability companies. The General Partner manages and controls the day to day activities and operations of the Partnership, pursuant to the terms of the Limited Partnership Agreement. The General Partner paid an aggregate capital contribution of $100 for a 1% interest in the Partnership’s income, losses and distributions. The Investment Manager makes all investment decisions and manages the investment portfolio of the Partnership. On 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 11.1% 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 A’s principal contribution is $1,788,750 and accrues interest at 9% per annum and Participation B’s 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 A’s interest is senior to Participation B’s interest. Since the Partnership bears the primary risks and rewards of Alpha, the Partnership consolidates Alpha into the condensed consolidated financial statements. SQN PAC’s 67.5% investment in Alpha is presented as non-controlling interest on the condensed consolidated financial statements. On December 2, 2015, the Partnership formed a special purpose entity SQN Juliet, LLC (“Juliet”), a limited liability company registered in the state of Delaware which is wholly owned by the Partnership. On December 29, 2015, Juliet entered into a loan agreement with a third party to borrow $3,071,000 for the funding of two loan facilities. The loan accrues interest at the rate of 8.5% per annum and matures on December 29, 2016. On April 22, 2016, this loan was amended and extended as part of the amended participation agreement. On December 31, 2015, Juliet extended two separate loan facilities to two borrowers. The borrowers are both subsidiaries of a UK based parent company that provides small and medium sized secured business loans (“Just Loans”). Each facility provides financing up to a maximum borrowing of £5,037,500 or together a total of £10,075,000 and accrues interest at a rate of 10% per annum. The funds can be drawn down in increments of up to £1,000,000 per month per facility with the exception of the first draws which were each in the amount of £1,037,500 in order to fund a certain third party fee of £37,500. The loan is repayable in monthly interest only payments due on the last day of each month. Principal is due nine months after December 31, 2016 on September 30, 2017 (“Termination Date”). The loans are secured by share pledges of the borrowers, a guaranty from the UK based parent company, and the underlying loan portfolio that Just Loans generates. In February 2016, the loan facilities were amended to include an annual fee, payable within 15 days of end of calendar year, equal to 30% of the interest paid or payable in the immediately preceding calendar year. On December 29, 2015, a participation agreement was entered into between a third party (“Juliet Participation A”), the Partnership (“Juliet Participation B”), and Juliet. In connection with the participation agreement, the Partnership assigned to Juliet various finance leases and equipment notes receivables with a total value equal to $4,866,750. Under the agreement, Juliet created two collateralized participation interests for the underlying loans (“Underlying Loans”); Juliet Participation A’s principal balance is $3,071,000 and accrues interest at 8.5% per annum and Juliet Participation B’s principal balance is the value of their assigned finance leases and equipment notes receivable of $4,866,750. Juliet Participation A’s interest is senior to Juliet Participation B’s interest. On April 22, 2016, the participation agreement dated December 29, 2015 between Juliet Participation A, Juliet Participation B, and Juliet was amended and restated. In connection with the amended participation agreement, Juliet Participation A funded Juliet cash of approximately $8,511,000 and assigned their interests of approximately $3,986,000 in a loan facility for a wood pellet business in Texas, which along with the outstanding principal payable balance of approximately $2,124,000 on the Just Loans transaction resulted in a Juliet Participation A balance of approximately $14,621,000. Under the amended agreement, Juliet Participation A’s principal balance accrues interest at 6% per annum and Juliet Participation B’s principal balance accrues interest at 12% per annum. Juliet Participation A’s interest is senior to Juliet Participation B’s interest. On December 16, 2015, SQN Marine, LLC (“Marine”), a special purpose vehicle which is wholly owned by the Partnership, entered into a sale and assignment of partnership interest agreement with the Partnership and a third party. Under the terms of the agreement, Marine acquired an 88.20% (90% of 98%) economic interest in a portfolio of container feeder vessels, for an aggregate investment of $28,266,789. Marine contributed cash of $12,135,718 and entered into two loans payable with separate third parties of $7,500,000 and $9,604,091. Marine acquired their economic interest in the vessels through a limited partnership interest in CONT Feeder Portfolio GmbH & Co. KG, a Germany based limited partnership (“CONT Feeder”), which acquired and operates the container feeder vessels, and entered into a separate note payable with an unrelated third party of $14,375,654. Marine bears the risks and rewards of ownership of CONT Feeder and therefore Marine consolidates the financial statements of CONT Feeder. Since the Partnership bears the primary risks and rewards of Marine, the Partnership consolidates Marine into the condensed consolidated financial statements. A third party contributed $3,140,754 to purchase a 10% share of CONT Feeder which is presented as non-controlling interest on the condensed consolidated financial statements. 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 Partnership’s 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 accounted for its investment in SQN Helo using the equity method. In November 2016, a lessee of five helicopters filed for bankruptcy protection under Chapter 11 and restructured the leases. As of December 31, 2016, the Partnership had advanced a total of $1,465,000. On January 19, 2017, the Partnership made an additional equity investment in SQN Helo for $3,325,506, which increased the Partnership’s equity interest in SQN Helo to 76%. On June 30, 2017, the Partnership received a distribution from SQN Helo of $250,000, which decreased the Partnership’s equity interest in SQN Helo to 75%. As a result of the increase in the Partnership’s equity interest and since the Partnership bears the primary risks and rewards of SQN Helo, the Partnership consolidates SQN Helo into the condensed consolidated financial statements. SQN PAC owns a 25% share of SQN Helo which is presented as non-controlling interest on the condensed consolidated financial statements. The Partnership’s income, losses and distributions are allocated 99% to the Limited Partners and 1% to the General Partner until the Limited Partners have received total distributions equal to their capital contributions plus an 8% per year, compounded annually, cumulative return on their capital contributions. After such time, all income, losses and distributable cash will be allocated 80% to the Limited Partners and 20% to the General Partner. The Partnership is currently in the Operating Period. The Offering Period concluded on April 2, 2016, which was three years from the date the Partnership was declared effective by the Securities and Exchange Commission (“SEC”). During the Operating Period, the Partnership will invest most of the net proceeds from its offering in business-essential, revenue-producing (or cost-saving) equipment, other physical assets with substantial economic lives and, in many cases, associated revenue streams and project financings. The Operating Period began on the date of the Partnership’s initial closing, which occurred on May 29, 2013 and will last for three years unless extended at the sole discretion of the General Partner. The General Partner has extended the Operating Period for an additional one year. The Liquidation Period, which follows the conclusion of the Operating Period, is the period in which the Partnership will sell its assets in the ordinary course of business and will last two years, unless it is extended, at the sole discretion of the General Partner. SQN Securities, LLC (“Securities”), is a Delaware limited liability company and a majority-owned subsidiary of the Investment Manager. Securities, in its capacity as the Partnership’s selling agent, receives an underwriting fee of 3% of the gross proceeds from Limited Partners’ capital contributions (excluding proceeds, if any, the Partnership receives from the sale of its Units to the General Partner or its affiliates). While Securities is currently acting as the Partnership’s exclusive selling agent, the Partnership may engage additional selling agents in the future. In addition, the Partnership will pay a 7% sales commission to broker-dealers unaffiliated with the General Partner who will be selling the Partnership’s Units, on a best efforts basis. When the 7% sales commission is not required to be paid, the Partnership applies the proceeds that would otherwise be payable as sales commission toward the purchase of additional fractional Units at $1,000 per Unit. During the Operating Period, the Partnership plans to make quarterly distributions of cash to the Limited Partners, if, in the opinion of the Partnership’s Investment Manager, such distributions are in the Partnership’s best interests. Therefore, the amount and rate of cash distributions could vary and are not guaranteed. The targeted distribution rate is 6.5% annually, paid quarterly as 1.625%, of each Limited Partners’ capital contribution (pro-rated to the date of admission for each Limited Partner). During the six months ended June 30, 2017, the Partnership declared and made quarterly cash distributions to its Limited Partners totaling $2,956,519. From May 29, 2013 through June 30, 2017, the Partnership has admitted 1,508 Limited Partners with total capital contributions of $74,965,064 resulting in the sale of 74,965.07 Units. The Partnership received cash contributions of $72,504,327 and applied $2,460,737 which would have otherwise been paid as sales commission to the purchase of 2,460.74 additional Units. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation Principles of Consolidation Non-controlling interest represents the minority equity holders’ investment in Alpha, CONT Feeder and Helo plus the minority’s share of the net operating results and other components of equity relating to the non-controlling interest. Variable interests are investments or other interests that absorb portions of a variable interest entity’s (“VIE”) expected losses or receive portions of the Partnership’s expected residual returns and are contractual, ownership, or other pecuniary interests in a VIE that change with changes in the fair value of the VIE. An entity is considered to be a VIE if any of the following conditions exist. (1) The total equity investment at risk is insufficient to permit the legal entity to finance its activities without additional subordinated financial support; or (2) As a group, the holders of equity investments at risk lack any of the three characteristics of a controlling financial interest: (a) The direct or indirect ability through voting or similar rights to make decisions that have a significant effect on the success of the legal entity. The equity holders at risk are deemed to lack this characteristic if: i. the voting rights of some investors are not proportional to their obligation to absorb the expected losses of the legal entity or rights to receive expected residual returns; and ii. substantially all of the legal entity’s activities are either involved with or are conducted on behalf of an investor that has disproportionately few voting rights (b) The obligation to absorb the expected losses of the legal entity or (c) The right to receive the expected residual returns of the legal entity. An entity that is determined to be a VIE is required to be consolidated by its primary beneficiary. The primary beneficiary of a VIE is determined to be the party that has both the power to direct the activities that most significantly affect the VIE’s economic performance (“Power”) and the obligation to absorb losses of, or the right to receive benefits from the VIE, that could potentially be significant to the VIE (“Benefits”). The determination of whether a reporting entity is the primary beneficiary involves complex and subjective analyses. Use of estimates Cash and Cash Equivalents The Partnership’s cash and cash equivalents are held principally at one financial institution and at times may exceed federally insured limits. The Partnership has placed these funds in an international financial institution in order to minimize risk relating to exceeding insured limits. The Partnership, through Summit Asset Management Limited, maintains an unrestricted 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 The Partnership leases equipment to third parties and each such lease may be classified as either a finance lease or an operating lease. Initial direct costs are capitalized and amortized over the term of the related lease for a finance lease. For an operating lease, initial direct costs are included as a component of the cost of the equipment and depreciated. For finance leases, the Partnership records, at lease inception, the total minimum lease payments receivable from the lessee, the estimated unguaranteed residual value of the equipment upon lease termination, the initial direct costs, if any, related to the lease and the related unearned income. Unearned income represents the difference between the sum of the minimum lease payments receivable plus the estimated unguaranteed residual value, minus the cost of the leased equipment. Unearned income is recognized as finance income over the term of the lease using the effective interest rate method. For operating leases, rental income is recognized on the straight line basis over the lease term. Billed and uncollected operating lease receivables will be included in accounts receivable. Accounts receivable are stated at their estimated net realizable value. Rental income received in advance is the difference between the timing of the cash payments and the income recognized on the straight line basis. The investment committee of the Investment Manager approves each new equipment lease, financing transaction, and lease acquisition. As part of this process it determines the unguaranteed residual value, if any, to be used once the acquisition has been approved. The factors considered in determining the unguaranteed residual value include, but are not limited to, the creditworthiness of the potential lessee, the type of equipment being considered, how the equipment is integrated into the potential lessees’ business, the length of the lease and the industry in which the potential lessee operates. Unguaranteed residual values are reviewed for impairment in accordance with the Partnership’s policy relating to impairment review. The residual value assumes, among other things, that the asset will be utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. The residual value is calculated using information from various external sources, such as trade publications, auction data, equipment dealers, wholesalers and industry experts, as well as inspection of the physical asset and other economic indicators. 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 The Partnership has adopted the provisions of FASB Topic 740, Accounting for Uncertainty in Income Taxes. Per Share Data Foreign Currency Transactions Depreciation Recent Accounting Pronouncements In August 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments “ASU 2016-15” In February 2016, the FASB issued new guidance to improve consolidation guidance for legal entities (Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842): Amendments to Leases Analysis), effective for fiscal years beginning after December 15, 2018 and interim periods within those years and early adoption is permitted. The standard amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Partnership is currently evaluating the impact of this guidance on its condensed consolidated financial statements. Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the condensed consolidated financial statements. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 3. Related Party Transactions The General Partner is responsible for the operations of the Partnership and the Investment Manager makes all investment decisions and manages the investment portfolio of the Partnership. The Partnership pays the General Partner a fee for organizational and offering costs not to exceed 2% of all capital contributions received by the Partnership. Because organizational and offering expenses will be paid, as and to the extent they are incurred, organizational and offering expenses may be drawn disproportionately to the gross proceeds of each closing. The General Partner also has a promotional interest in the Partnership equal to 20% of all distributed distributable cash, after the Partnership has provided an 8% cumulative return, compounded annually, to the Limited Partners on their capital contributions. The General Partner has a 1% interest in the profits, losses and distributions of the Partnership. The General Partner will initially receive 1% of all distributed distributable cash, which was accrued at June 30, 2017 and December 31, 2016. The Partnership pays the Investment Manager during the Offering Period, Operating Period and the Liquidation Period a management fee equal to or the greater of, (i) 2.5% per annum of the aggregate offering proceeds, or (ii) $125,000 monthly, until such time as an amount equal to at least 15% of the Partnership’s Limited Partners’ capital contributions have been returned to the Limited Partners, after which the monthly management fee will equal 100% of the management fee as initially calculated above, less 1% for each additional 1% of the Partnership’s Limited Partners’ capital contributions returned to them. Such amounts are measured on the last day of each month. The management fee is paid regardless of the performance of the Partnership and will be adjusted in the future to reflect the total equity raised. For the three months ended June 30, 2017 and 2016, the Partnership paid $375,000 in management fee expense to the Investment Manager. For the six months ended June 30, 2017 and 2016, the Partnership paid $750,000 in management fee expense to the Investment Manager. Securities is a Delaware limited liability company and is majority-owned subsidiary of the Partnership’s Investment Manager. Securities in its capacity as the Partnership’s selling agent receives an underwriting fee of 3% of the gross proceeds from Limited Partners’ capital contributions (excluding proceeds, if any, the Partnership receives from the sale of the Partnership’s Units to the General Partner or its affiliates). While Securities is initially acting as the Partnership’s exclusive selling agent, the Partnership may engage additional selling agents in the future. For the six months ended June 30, 2017 and year ended December 31, 2016, the Partnership incurred the following transactions with Securities: June 30, 2017 December 31, 2016 (unaudited) Balance - beginning of period $ — $ — Underwriting fees earned by Securities — 574,402 Payments by the Partnership to Securities — (574,402 ) Balance - end of period $ — $ — For the six months ended June 30, 2017 and 2016, the Partnership incurred the following underwriting fee transactions: Six Months Ended Six Months Ended June 30, 2016 (unaudited) (unaudited) Underwriting discount incurred by the Partnership $ — $ 503,338 Underwriting fees earned by Securities — 574,402 Fees paid to outside brokers — 872,167 Total underwriting fees $ — $ 1,949,907 |
Investments in Finance Leases
Investments in Finance Leases | 6 Months Ended |
Jun. 30, 2017 | |
Leases, Capital [Abstract] | |
Investments in Finance Leases | 4. Investments in Finance Leases At June 30, 2017 and December 31, 2016, net investment in finance leases consisted of the following: June 30, 2017 December 31, 2016 (unaudited) Minimum rents receivable $ 7,255,230 $ 9,408,605 Estimated unguaranteed residual value 2,003,757 652,689 Unearned income (2,038,235 ) (2,314,494 ) Total $ 7,220,752 $ 7,746,800 Aircraft In connection with the consolidation of SQN Helo, the Partnership holds two helicopter finance leases with two different third parties. As of December 31, 2016, these finance leases has a net book value of $3,378,129. One finance lease requires 18 monthly payments of $79,167 which commenced in August 2016. The other finance lease requires 48 monthly payments of $32,500 commencing in April 2017. At June 30, 2017, there were no significant changes to these leases. Aircraft Parts Equipment In December 2016, the lease agreement for aircraft rotable parts equipment for approximately $775,000 was amended and extended for an additional 18 months. The amended finance leases require 18 monthly payments in aggregate of $90,116 commencing on December 16, 2016. At June 30, 2017, there were no significant changes to this lease. Computer Networking Equipment On February 29, 2016, the Partnership entered into a finance lease transaction for computer networking equipment for $1,541,461. The finance lease requires 36 monthly payments of $48,171 commencing on March 1, 2016. On March 30, 2017, the Partnership sold this finance lease to a third party for cash proceeds of $999,321. The finance lease had a net book value of $984,693 resulting in a gain of $14,628. On May 25, 2016, the Partnership entered into a second finance lease transaction for computer networking equipment for $656,772. The finance lease requires 36 monthly payments of $20,524 commencing on June 1, 2016. On March 30, 2017, the Partnership sold this finance lease to a third party for cash proceeds of $488,029. The finance lease had a net book value of $483,152 resulting in a gain of $4,877. Furniture and Fixtures and Server Equipment On January 31, 2016, the Master Equipment Lease for servers, fixtures and furniture for approximately $2,700,000 commenced (as described in Note 6) and the Partnership reclassified the equipment note to investment in finance lease. The finance lease requires 36 monthly payments of $77,727 which commenced on February 1, 2016. On June 24, 2016, Juliet entered into a second finance lease transaction for servers, fixtures and furniture for $337,131. The finance lease requires 31 monthly payments of $12,464 commenced on July 1, 2016. At June 30, 2017, there were no significant changes to these leases. Furniture, Fixtures and Equipment, as well as Computer Hardware & Software On December 30, 2015, the Partnership entered into a finance lease transaction for furniture, fixtures and equipment, as well as computer hardware and software for $1,500,000. The finance lease requires 30 monthly payments of $58,950. At June 30, 2017, there were no significant changes to this lease. Manufacturing Equipment On October 7, 2015, the Partnership entered into a finance lease transaction for manufacturing equipment for $58,000 (“SCHWRD 1”). The equipment is subject to a 60 month lease with a Connecticut-based engraving, decal and die manufacturing company. The finance lease requires 60 monthly payments of $1,277. On December 29, 2015, the Partnership entered into a second finance lease transaction for manufacturing equipment for $94,300 (“SCHWRD 2”). The finance lease requires 60 monthly payments of $2,077. On December 30, 2015, the Partnership assigned the SCHWRD 1 finance lease to Juliet. On February 13, 2017, the Partnership, through Juliet, received cash proceeds of $52,145 as payment in full of the SCHWRD 1 finance lease. On April 28, 2017, the Partnership sold the SCHWRD 2 finance lease to a third party for cash proceeds of $76,474. The finance lease had a net book value of $73,638 resulting in a U.S. GAAP gain of $2,836. Computer Networking Equipment On September 1, 2015, the Partnership entered into a finance lease transaction for computer networking equipment for $446,677 (“Comp Net 1”). The Comp Net 1 finance lease requires 36 monthly payments of $14,195. On October 30, 2015, the Partnership entered into a second finance lease transaction for computer networking equipment for $297,689 (“Comp Net 2”). The Comp Net 2 finance lease requires 36 monthly payments of $9,460. On December 29, 2015, the Partnership entered into a third finance lease transaction for computer networking equipment for $389,266 (“Comp Net 3”). The Comp Net 3 finance lease requires 36 monthly payments of $12,456. On December 30, 2015, the Partnership assigned the Comp Net 1 and Comp Net 2 finance leases to Juliet. On March 30, 2017, the Partnership sold the Comp Net 3 finance lease to a third party for cash proceeds of $250,696. The finance lease had a net book value of $248,240 resulting in a U.S. GAAP gain of $2,456. 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. At June 30, 2017, there were no significant changes to this lease. Medical Equipment On March 31, 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. On December 30, 2015, the Partnership assigned this finance lease to Juliet. At June 30, 2017, there were no significant changes to this lease. |
Investments in Equipment Subjec
Investments in Equipment Subject to Operating Leases | 6 Months Ended |
Jun. 30, 2017 | |
Leases, Operating [Abstract] | |
Investments in Equipment Subject to Operating Leases | 5. Investments in Equipment Subject to Operating Leases In connection with the consolidation of SQN Helo, the Partnership holds four helicopter operating leases with two different third parties. As of December 31, 2016, these operating leases had an aggregate net book value of $9,871,737. One operating lease requires monthly payments of $80,160 expiring in August 2017. The other three operating leases require 48 monthly payments of $32,500, $32,500 and $19,000, respectively, commencing in April 2017. On October 24, 2016, the die board cutting equipment lease commenced. The operating lease requires 60 monthly payments of $6,329 beginning on October 24, 2016. On April 28, 2017, the Partnership sold the die board cutting equipment operating lease to a third party for cash proceeds of $344,957. The operating lease had a net book value of $338,629 resulting in a U.S. GAAP gain of $6,328. June 30, 2017: Description Cost Basis Accumulated Depreciation Net Book Value Aircraft (Helicopters) $ 14,474,889 $ 5,753,940 $ 8,720,949 $ 14,474,889 $ 5,753,940 $ 8,720,949 December 31, 2016: Description Cost Basis Accumulated Depreciation Net Book Value Machine Tools $ 367,079 $ 10,376 $ 356,703 $ 367,079 $ 10,376 $ 356,703 Depreciation expense for the three and six months ended June 30, 2017 was $579,683 and $1,168,862, respectively. |
Equipment Notes Receivable
Equipment Notes Receivable | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Equipment Notes Receivable | 6. Equipment Notes Receivable Manufacturing / Solar Equipment On June 29, 2016, SQN Gamma LLC, assigned its commitment interest in a loan facility, under a Credit Agreement dated November 17, 2015, to the Partnership and to Juliet in the amount of $3,893,165 and $2,500,000, respectively. On June 30, 2016, the Partnership and Juliet funded $3,893,165 and $2,500,000, respectively under this loan facility. The loan facility accrues interest at a rate of 11% per annum and matures on March 31, 2021. The borrower is required to make 51 monthly payments of principal and interest beginning on January 31, 2017 and an additional final payment due at maturity date of 8% of the aggregate principal amount of loans made. On August 17, 2016, the Partnership funded $730,170 to the same borrower. The loan facility accrues interest at a rate of 10.5% per annum and matures on August 1, 2019. The borrower is required to make 36 monthly payments of principal and interest beginning on September 1, 2016 and an additional final payment due at maturity date of 5% of the aggregate principal amount of loans made. The loan facilities are secured by solar products manufacturing equipment. On January 18, 2017, the Partnership entered into an assignment agreement to sell the solar products manufacturing equipment note dated June 29, 2016 for cash proceeds of $4,021,250 ($3,893,165 principal and $128,085 accrued interest). On March 29, 2017, the Partnership entered into an assignment agreement to repurchase the solar products manufacturing equipment note dated June 29, 2016 for cash proceeds of $4,107,294 ($3,893,165 principal and $214,129 purchase interest). On April 17, 2017, the borrower voluntarily filed for Chapter 11 bankruptcy protection. The Partnership received monthly payments in accordance with terms from this borrower through February 28, 2017. As of June 30, 2017, the March 2017 through June 2017 monthly payments are outstanding, therefore this loan facility is in non-accrual status as a result of the bankruptcy and of non-payment. For the three and six months ended June 30, 2017, the equipment notes earned interest income of $0 and $41,648, respectively. Construction Equipment On April 14, 2016, the Partnership, through Juliet, acquired an interest in loan notes from a third party leasing company for $1,529,674. The loan notes are secured by a portable wash plant and a fleet of cement mixers and dump trucks which are owned by a Texas-based construction company. Under the terms of the loan agreement, the borrower is required to make 72 monthly payments of principal and interest of $28,865. The loan is scheduled to mature on March 31, 2022. On June 3, 2016 and on June 24, 2016, the Partnership, through Juliet, acquired additional interest in two loan notes from the third party leasing company for $205,000 and $1,289,163, respectively. Under the terms of the loan agreements, the borrower is required to make 60 and 72 monthly payments of principal and interest of $4,450 and $24,326, respectively. The loans are scheduled to mature on June 30, 2021 and June 30, 2022, respectively. On September 30, 2016 and in December 2016, the Partnership, through Juliet, acquired an additional interest in a loan note from the third party leasing company for $1,426,732 and $1,619,283, respectively. Under the terms of the loan agreement, the borrower is required to make 72 monthly payments of principal and interest of $57,925 and the loan is scheduled to mature on September 30, 2022. On December 2, 2016 and on December 23, 2016, the Partnership, through Juliet, acquired additional interest in two loan notes from the third party leasing company for $43,177 and $2,335,960, respectively. Under the terms of the loan agreements, the borrower is required to make 60 monthly payments of principal and interest of $950 and $48,100, respectively. These loans are scheduled to mature on November 30, 2021 and June 30, 2021, respectively. On January 9, 2017, the Partnership, through its investment in Juliet, sold the loan note for construction equipment dated December 23, 2016 to a third party for cash proceeds of $2,252,389. The loan note had a net book value of $2,239,760 resulting in a U.S. GAAP gain of $12,629. For the three and six months ended June 30, 2017, the equipment notes earned interest income of $215,752 and $373,269, respectively. Food Manufacturing Equipment On April 11, 2016 (“Funding Date”), the Partnership extended a loan facility in the amount of $2,500,000 to a Minnesota-based manufacturer of a commercial low-sodium salt substitute. The loan is secured by food manufacturing equipment. Under the terms of the loan agreement, the borrower is required to make 36 monthly payments of principal and interest of $81,657. The loan is scheduled to mature on April 1, 2019. The borrower is required to make the first and last monthly payments on the Funding Date and then make 34 monthly payments of principal and interest of $81,657 which commenced on June 1, 2016. For the three and six months ended June 30, 2017, the equipment note earned interest income of $0 and $67,250, respectively. On March 30, 2017, the Partnership sold this loan note to a third party for cash proceeds of $1,802,371. The loan note had a net book value of $1,790,618 resulting in a U.S. GAAP gain of $11,753. Manufacturing and Testing Equipment On March 8, 2016 (“Funding Date”), the Partnership loaned $1,992,000 to a California-based LED lighting manufacturer located in California. The loan is secured by manufacturing and testing equipment located at one of the manufacturer’s facilities. The promissory note requires 30 monthly payments of approximately $76,016 and has a final balloon payment of 3% of the aggregate principal amount due on September 1, 2018. The borrower is required to make the first and last monthly payments on the Funding Date and then make 28 monthly payments of principal and interest of $76,016 which commenced on May 1, 2016. For the three and six months ended June 30, 2017, the equipment note earned interest income of $0 and $35,293, respectively. On March 30, 2017, the Partnership sold this loan note to a third party for cash proceeds of $1,232,293. The loan note had a net book value of $1,173,422 resulting in a U.S. GAAP gain of $58,871. Transportation Equipment On January 23, 2016 and on March 4, 2016, the Partnership acquired two loan notes from a third party leasing company for approximately $247,194 and $204,303, respectively. The loans are secured by transportation equipment. Under the terms of the loan agreements, the borrower is required to make 72 monthly payments of principal and interest of $4,697 and $4,045, respectively. The loans are scheduled to mature on January 23, 2022 and March 3, 2022, respectively. For the three and six months ended June 30, 2017, the equipment notes earned interest income of $11,049 and $22,877, respectively. Secured Business Loans On December 31, 2015, Juliet extended two separate loan facilities to two borrowers. The borrowers are both subsidiaries of a UK based parent company that provides small and medium sized secured business loans (“Just Loans”). Each facility provides financing up to a maximum borrowing of £5,037,500 or together a total of £10,075,000 and accrues interest at a rate of 10% per annum. The funds can be drawn down in increments of up to £1,000,000 per month per facility with the exception of the first draws which were each in the amount of £1,037,500 in order to fund a certain third party fee of £37,500. The loan is repayable in monthly interest only payments due on the last day of each month. Principal is due nine months after December 31, 2016 on September 30, 2017 (“Termination Date”). The loans are secured by share pledges of the borrowers, a guaranty from the UK based parent company, and the underlying loan portfolio that Just Loans generates. In February 2016, the loan facilities were amended to include an annual fee, payable within 15 days of end of calendar year, equal to 30% of the interest paid or payable in the immediately preceding calendar year. On December 29, 2015, Juliet advanced a total of $2,974,000 to the borrowers. On February 18, 2016, Juliet advanced a total of $2,878,000 to the borrowers. On April 18, 2016, the Partnership, through its investment in Juliet, advanced a total of $2,140,350 to the borrowers. On December 13, 2016, Juliet advanced a total of $740,160 to the borrowers. For the three and six months ended June 30, 2017, the equipment note earned interest income of $45,799 and $378,307, respectively. On March 29, 2017, Juliet entered into a deed of novation agreement to novate 85% of this loan note to SQN Asset Finance (Ireland) Designated Activity Company (“SQN AFI”) and 15% to the Partnership for $7,947,310. On March 31, 2017, Juliet received cash proceeds of $6,416,092 from SQN AFI and a due from the Partnership of $1,531,218. The loan note had a net book value of $7,804,888 resulting in a U.S. GAAP gain of $142,422. On March 31, 2017, the Partnership and SQN AFI advanced a total of $2,497,400 to the borrowers. On April 28, 2017, the Partnership advanced a total of $370,187 to the borrowers. Honey Production Equipment On December 14, 2015, the Partnership acquired a loan note from a third party leasing company for approximately $12,789, and is secured by honey production equipment. Under the terms of the loan agreement, the borrower is required to make 36 monthly payments of principal and interest of $425. The loan is scheduled to mature on November 30, 2018. For the three and six months ended June 30, 2017, the equipment note earned interest income of $228 and $553, respectively. Towing Equipment On October 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 December 30, 2015, the Partnership assigned this equipment notes receivable to Juliet. For the three and six months ended June 30, 2017, the equipment note earned interest income of $2,360 and $4,268, respectively. Tractor and Trailer Equipment On October 30, 2015 and on November 4, 2015, the Partnership acquired two loan notes from a third party leasing company for approximately $147,919 and $15,000, respectively. The loans are secured by tractor and trailer equipment. Under the terms of the loans agreements, the borrower is required to make 60 monthly payments of principal and interest of $3,255 and $330, respectively. The loans are scheduled to mature on October 31, 2020. On December 30, 2015, the Partnership assigned these equipment notes receivable to Juliet. For the three and six months ended June 30, 2017, the equipment note earned interest income of $3,589 and $7,388, respectively. Furniture, Fixtures and Equipment On October 30, 2015, the Partnership acquired a loan note from a third party leasing company for approximately $817,045. The loan is secured by furniture, fixtures and equipment. Under the terms of the loan agreement, the borrower is required to make 35 monthly payments of approximately $26,145, accrues interest at a rate of 18.84% per annum and has a final balloon payment of approximately $123,000 on November 1, 2018. On December 30, 2015, the Partnership assigned this equipment note receivable to Juliet. For the three and six months ended June 30, 2017, the equipment note earned interest income of $23,143 and $47,335, respectively. Mineral Processing Equipment On September 27, 2013, the Partnership entered into a loan facility to provide financing up to a maximum borrowing of $3,000,000. The borrower is a Florida based company that builds, refurbishes and services mineral refining and mining equipment in the United States, Central and South America. The loan facility was secured by equipment that refines precious metals and other minerals. The Partnership advanced $2,500,000 to the borrower during September 2013. The loan facility required 48 monthly payments of principal and interest of $68,718 (revised from original payment of $69,577 upon second funding discussed below) and a balloon payment of $500,000 in September 2017. The loan facility was scheduled to mature in September 2017. On May 9, 2014, the Partnership made a second funding of $500,000 to the borrower under the above agreement. The loan facility required 41 monthly payments of principal and interest of $15,764 and matures in September 2017. The borrower’s obligations under the loan facility were also personally guaranteed by its majority shareholders. On December 22, 2014, the outstanding principal of $2,537,822 and accrued interest of $204,721 of this note receivable was restructured into a new note receivable of $2,883,347. The new loan facility is secured by equipment that refines precious metals and other minerals and is guaranteed by the majority shareholders of the Florida based company referred to above. The new loan facility requires 48 monthly payments of principal and interest of $79,255 commencing on February 24, 2015 and a balloon payment of $500,000 in January 2019. The loan facility is scheduled to mature in September 2017. In connection with above restructured note, on December 22, 2014, the Partnership entered into a $200,000 promissory note with the same borrower. The promissory note requires five annual payments of $150,000 commencing on January 25, 2019 and matures in January 2023. As of December 31, 2014, the Partnership advanced $100,000. In January 2015, the Partnership advanced the remaining $100,000. In June 2015, the Partnership received a principal payment of $40,000. For the three and six months ended June 30, 2017 and for the years ended December 31, 2016 and 2015, the mineral processing equipment note is in non-accrual status as a result of non-payment. 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. 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. On December 30, 2015, the Partnership assigned this equipment note receivable to Juliet. For the three and six months ended June 30, 2017, the equipment note earned interest income of $15,310 and $29,444, respectively. 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 six months ended June 30, 2017, the equipment note earned interest income of $6,966 and $14,936, respectively. The future maturities of the Partnership’s equipment notes receivable at June 30, 2017 are as follows: Years ending June 30, 2018 $ 6,557,317 2019 3,803,886 2020 3,576,067 2021 3,463,845 2022 1,519,696 2023 170,551 $ 19,091,362 |
Residual Value Investment in Eq
Residual Value Investment in Equipment on Lease | 6 Months Ended |
Jun. 30, 2017 | |
Leases [Abstract] | |
Residual Value Investment in Equipment on Lease | 7. Residual Value Investment in Equipment on Lease On September 15, 2014, the Partnership entered into a Residual Interest Purchase Agreement with a leasing company to purchase up to $3 million of residual value interests in equipment. The leasing company has entered into a Master Lease Agreement with a third party to lease cash handling machines or smart safes under one or more lease schedules with original equipment cost of $20 million (“OEC”) and a term of five years from initiation of each lease schedule. In connection with the Master Lease Agreement, the leasing company has entered into a finance arrangement with another third party to finance 85% of the OEC up to an aggregate facility of $17 million and the Partnership has agreed to finance the remaining 15% of the OEC up to an aggregate facility of $3 million. As of June 30, 2017, the Partnership had advanced a net total of $2,775,060. |
Collateralized Loan Receivable
Collateralized Loan Receivable | 6 Months Ended |
Jun. 30, 2017 | |
Collateralized Loan Receivable [Abstract] | |
Collateralized Loan Receivable | 8. Collateralized Loan Receivable On March 31, 2017, the Partnership entered into a Loan Participation Agreement to purchase a 61.8% interest in a 5% Surplus note receivable with principal of $2,225,000 maturing on February 25, 2018. On March 31, 2017, the Partnership funded $1,495,313 for the purchase of this participation. In connection with the Loan Participation Agreement, on that same date, the Partnership entered into a forward purchase agreement to sell this participation interest on July 7, 2017 for the purchase price of the participation plus a 12% rate of return. For the three and six months ended June 30, 2017, the loan facility earned interest income of $42,888. On September 23, 2016, the Partnership, through Juliet, provided secured financing in the amount of $1,845,655 after applicable exchange rates for a motion picture production company in the United Kingdom. The loan is secured by all of the assets, including tax credits, of the borrower and all of the borrower’s rights to proceeds from the motion picture. The loan accrues interest at a rate of 12% per annum and is scheduled to mature 24 months after the funding date. For the three and six months ended June 30, 2017, the loan facility earned interest income of $50,124 and $99,697, respectively. On September 12, 2016, the Partnership, through Juliet, provided secured financing in the amount of $2,215,270 after applicable exchange rates for a motion picture production company in the United Kingdom. The loan is secured by all of the assets, including tax credits, of the borrower and all of the borrower’s rights to proceeds from the motion picture. The loan accrues interest at a rate of 12% per annum and is scheduled to mature 24 months after the funding date. For the three and six months ended June 30, 2017, the loan facility earned interest income of $66,276 and $131,824, respectively. On July 21, 2016, September 15, 2016, and September 30, 2016, the Partnership funded $1,817,444, $181,598 and $300,846, respectively under a wholesale financing arrangement with an international leasing company that does business between the United States and Mexico. On October 7, 2016, a third party on behalf of Juliet, funded an additional $1,759,570 under this wholesale financing arrangement. On October 4, 2016, November 23, 2016, November 29, 2016 and December 30, 2016, the Partnership funded an additional $854,390, $291,919, $78,912 and $78,095, respectively under this wholesale financing arrangement. On January 13, 2017 and February 23, 2017, the Partnership, through Juliet, funded an additional $1,463,260 and $814,320, respectively under this wholesale financing arrangement. On March 8, 2017, the Partnership funded an additional $256,987 under this wholesale financing arrangement. On April 4, 2017 and April 5, 2017, the Partnership, through Juliet, funded an additional $1,825,656 and $314,753, respectively under this wholesale financing arrangement. The loans accrue interest at rate of 10% per annum and are secured by industrial and manufacturing equipment subject to equipment leases. For the three and six months ended June 30, 2017, the loans earned interest income of $256,359 and $432,243, respectively. On May 5, 2016, a third party on behalf of Juliet, provided secured financing in the amount of $2,926,342 after applicable exchange rates for a motion picture production company in the United Kingdom. The loan is secured by all of the assets, including tax credits, of the borrower and all of the borrower’s rights to proceeds from the motion picture. The loan accrues interest at a rate of 12% per annum and is scheduled to mature 24 months after the funding date. For the three and six months ended June 30, 2017, the loan facility earned interest income of $72,724 and $144,648, respectively. On April 25, 2016, the Partnership entered into a loan agreement with a borrower to refinance the borrower’s loan facility. In connection with the refinancing, the Partnership received a promissory note from the borrower in the amount of $1,763,230. The note accrues interest at a rate of 20% per annum and matures on February 8, 2020. The borrower will make semi-annual payments of principal and interest in February and August. On August 5, 2016, the Partnership received a payment of $452,604. In March 2017, the Partnership received total payments of $335,644. For the three and six months ended June 30, 2017, the promissory notes earned interest income of $71,571 and $143,142, 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 11.1% 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 (“Alpha Participation A”), the Partnership (“Alpha Participation B”), Alpha and SQN Capital Management, LLC. Under the agreement, Alpha created two collateralized participation interests for the collateral; Alpha Participation A’s principal contribution is $1,788,750 and accrues interest at 9% per annum and Alpha Participation B’s 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. Alpha Participation A’s interest is senior to Alpha Participation B’s interest. For the three and six months ended June 30, 2017, the Alpha Participation B earned interest income of $32,603 and $64,848, respectively. 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 maturity date was extended to November 30, 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 May 13, 2016, in connection with an extension of the Facility, the Partnership funded an additional $56,750 after applicable exchange rates. On July 29, 2016, the Partnership funded $1,574,724, after applicable exchange rates, under a Loan Note Instrument to provide additional financing of the Facility. The Loan Note Instrument matures on November 30, 2016. On November 4, 2016, the Partnership funded $700,000, after applicable exchange rates, under a Loan Note Instrument to provide additional financing of the Facility. As of June 30, 2017 and December 31, 2016, the Loan Note Principal balance was $4,148,419. For the three and six months ended June 30, 2017, the Loan Note Instruments earned interest income of $188,753 and $375,432, respectively. On December 28, 2015, the Partnership entered into a loan agreement and a $2,000,000 promissory note with a borrower. The promissory note accrues interest at the rate of 11% per annum, payable quarterly in arrears, and matures on December 28, 2020. On April 15, 2016, the loan agreement was amended and restated and the maturity date was amended to December 30, 2024. For the three months ended March 31, 2017, the promissory notes earned interest income of $55,000 and $110,000, respectively. 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 of the equipment of the wood pellet business in Texas. The borrower’s parent company also pledged assets located at the parent’s company’s headquarters in Germany as additional collateral for the loan. In January 2016, the Partnership received cash of $2,610,959 as payment from this facility. On April 22, 2016, the Partnership and a third party assigned their interests in this loan facility of $2,389,041 and $3,985,959, respectively to Juliet. For the three and six months ended June 30, 2017 and the years ended December 31, 2016 and 2015, this loan is in non-accrual status. Based on an appraisal of the collateral value of the equipment, the Investment Manager believes that there is sufficient collateral value to cover the outstanding balance of this loan. |
Investment in Informage SQN Tec
Investment in Informage SQN Technologies LLC | 6 Months Ended |
Jun. 30, 2017 | |
Investments in and Advances to Affiliates, Schedule of Investments [Abstract] | |
Investment in Informage SQN Technologies LLC | 9. Investment in Informage SQN Technologies LLC On August 1, 2014, the Partnership, SQN PAC, 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 December 31, 2016, the Partnership has advanced a total of $1,357,622 and received total repayments of $690,936. For the three and six months ended June 30, 2017, the Partnership recorded investment loss of $5,970 and $11,940, respectively, for its proportionate share of Informage SQN’s earnings under the equity method pursuant to U.S. GAAP. As of June 30, 2017, the Partnership has an investment balance of $532,249. |
Equipment Investment through SP
Equipment Investment through SPV | 6 Months Ended |
Jun. 30, 2017 | |
Investments, All Other Investments [Abstract] | |
Equipment Investment through SPV | 10. Equipment Investment through SPV On December 16, 2015, Marine, a special purpose vehicle which is wholly owned by the Partnership, entered into a sale and assignment of partnership interest agreement with a third party. Under the terms of the agreement, Marine acquired an 88.20% (90% of 98%) economic interest in a portfolio of container feeder vessels. Marine acquired their economic interest in the vessels through a limited partnership interest in CONT Feeder, which acquired and operates the container feeder vessels. CONT Feeder acquired six container feeder vessels for $37,911,665, drydocking fees of $4,158,807 and inventory supplies of $337,923 for an aggregate investment of $42,408,395. As of June 30, 2017, the Partnership has an aggregate investment balance of $38,012,103 consisting of feeder vessels of $34,930,156, drydocking fees of $2,808,807 and inventory supplies of $273,140. CONT Feeder acquired and operates six container feeder vessels which collect shipping containers from different ports and transport them to central container terminals where they are loaded to bigger vessels. For the three months ended June 30, 2017, CONT Feeder recorded income of approximately $3,672,000 from charter rental fees less total expenses of $4,830,000, consisting of ship operating expenses, of approximately $2,311,000, ship management fees and charter commissions fees of approximately $508,000, general and administrative expenses, of approximately $1,041,000, depreciation expense, of approximately $726,000 and interest expense of approximately $244,000 resulting in a net loss of approximately $1,158,000. For the six months ended June 30, 2017, CONT Feeder recorded income of approximately $7,037,000 from charter rental fees less total expenses of $9,607,000, consisting of ship operating expenses, of approximately $4,703,000, ship management fees and charter commissions fees of approximately $920,000, general and administrative expenses, of approximately $2,052,000, depreciation expense, of approximately $1,451,000 and interest expense of approximately $481,000 resulting in a net loss of approximately $2,570,000. |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2017 | |
Other Assets [Abstract] | |
Other Assets | 11. Other Assets Other assets primarily include approximately $1,620,000 related to the Partnership’s equipment investment through SPV. |
Equipment Notes Payable
Equipment Notes Payable | 6 Months Ended |
Jun. 30, 2017 | |
Equipment Notes Payable | |
Equipment Notes Payable | 12. Equipment Notes Payable In connection with the consolidation of SQN Helo, the Partnership had an aggregate equipment notes payable balance of $3,669,521 to a financial institution for four helicopter leases. In January 2017, the Partnership paid $3,325,506 as repayment in full for three helicopter leases. As of June 30, 2017, the equipment notes payable was $84,247. |
Loans Payable
Loans Payable | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Loans Payable | 13. Loans Payable On April 22, 2016, Juliet, a third party and the third party’s affiliate amended and restated the participation agreement dated December 29, 2015. Juliet borrowed a total of approximately $14,621,000 in the form of a senior participation instruments with a third party and the third party’s affiliate consisting of the outstanding principal payable balance of approximately $2,124,000 on the Just Loans transaction, the third party also funded Juliet additional cash of approximately $8,511,000 and assigned their interests of approximately $3,986,000 in a loan facility for a wood pellet business in Texas. The senior participation instrument accrues interest at the rate of 6% per annum and also accrues PIK interest at the rate of 1.5% per annum. The senior participants, as collateral, have a first priority security interest in all of the assets acquired by Juliet as well as a senior participation interest in all of the proceeds from the assets, while Juliet has a junior participation interest until the loan is repaid in full. All of the cash proceeds received from these assets are applied as follows (1), to pay accrued and unpaid interest of the senior participant, (2), to pay any cumulative interest shortfall of the senior participant, (3), to pay accrued and unpaid interest of the junior participants, and (4), to reduce the outstanding principal balance of the senior participation with any excess distributed to the junior participants. There was no stated or agreed upon repayment term for the principal. On May 5, 2016, the third party provided additional financing, on behalf of Juliet, in the amount of approximately $2,926,000 after applicable exchange rates. In connection with the CONT Feeder transaction, Marine borrowed $7,500,000 and $9,604,091 in the form of a senior participation instruments with a third party and the third party’s affiliate. The senior participation instrument accrues interest at the rate of 10% per annum and matures on December 16, 2020. The senior participants, as collateral, have a first priority security interest in all of the assets acquired by CONT Feeder as well as a senior participation interest in the proceeds from the assets, while Marine has a junior participation interest until the loan is repaid in full. All of the cash proceeds received from these assets will be applied first against the outstanding principal balance of the senior participation with any excess distributed to the junior participants. There was no stated or agreed upon repayment term for the principal. In connection with the acquisition of container vessels, CONT Feeder borrowed $14,375,654 from third parties. As of June 30, 2017, the CONT Feeder loan payable was $11,189,101. In connection with the consolidation of SQN Helo, the Partnership had an aggregate loans payable balance of $9,245,578 to SQN AFIF and to a third party in the form of a senior participation instruments. The senior participation instrument accrues interest at the rate of 7% per annum and PIK interest at the rate of 3.5% per annum and matures on January 6, 2022. The senior participants, as collateral, have a first priority security interest in all of the assets acquired by SQN Helo as well as a senior participation interest in the proceeds from the assets, while the Partnership and SQN PAC have a junior participation interest until the loan is repaid in full. All of the cash proceeds received from these assets will be applied first against the outstanding principal balance of the senior participation with any excess distributed to the junior participants. There was no stated or agreed upon repayment term for the principal. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 14. Fair Value of Financial Instruments The Partnership’s carrying value of cash and cash equivalents, accounts payable and accrued liabilities, and other liabilities, approximate fair value due to their short term until maturities. The Partnership’s carrying values and approximate fair values of its financial instruments were as follows: June 30, 2017 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value Assets: Equipment notes receivable $ 19,091,362 $ 19,091,362 $ 31,107,975 $ 31,107,975 Collateralized loans receivable $ 34,344,665 $ 34,344,665 $ 28,265,033 $ 28,265,033 Liabilities: Loans payable $ 65,044,182 $ 65,044,182 $ 60,589,483 $ 60,589,483 As of June 30, 2017, the Partnership evaluated the carrying values of its financial instruments and they approximate fair values. |
Business Concentrations
Business Concentrations | 6 Months Ended |
Jun. 30, 2017 | |
Risks and Uncertainties [Abstract] | |
Business Concentrations | 15. Business Concentrations For the six months ended June 30, 2017, the Partnership had two lessees which accounted for approximately 50% and 48% of the Partnership’s rental income derived from operating leases. For the six months ended June 30, 2016, the Partnership had one lessee which accounted for approximately 100% of the Partnership’s rental income derived from operating leases. For the six months ended June 30, 2017, the Partnership had three leases which accounted for approximately 36%, 34% and 23% of the Partnership’s income derived from finance leases. For the six months ended June 30, 2016, the Partnership had four leases which accounted for approximately 36%, 17%, 16% and 11% of the Partnership’s income derived from finance leases. For the six months ended June 30, 2017, the Partnership had four leases which accounted for approximately 16%, 14%, 14%, and 14% of the Partnership’s interest income. For the six months ended June 30, 2016, the Partnership had three leases which accounted for approximately 22%, 17% and 10% of the Partnership’s interest income. At June 30, 2017, the Partnership had four lessees which accounted for approximately 23%, 21%, 17% and 11% of the Partnership’s investment in finance leases. At June 30, 2016, the Partnership had five lessees which accounted for approximately 29%, 26%, 15%, 11% and 10% of the Partnership’s investment in finance leases. At June 30, 2017, the Partnership had two lessees which accounted for approximately 71% and 29% of the Partnership’s investment in operating leases. At June 30, 2016, the Partnership had one lessee which accounted for approximately 100% of the Partnership’s investment in operating leases. At June 30, 2017, the Partnership had three lessees which accounted for approximately 35%, 30% and 16% of the Partnership’s investment in equipment notes receivable. At June 30, 2016, the Partnership had four lessees which accounted for approximately 29%, 24%, 11% and 11% of the Partnership’s investment in equipment notes receivable. At June 30, 2017, the Partnership had three lessees which accounted for approximately 29%, 17% and 14% of the Partnership’s investment in collateralized loans receivable. At June 30, 2016, the Partnership had five lessees which accounted for approximately 33%, 21%, 14%, 13% and 11% of the Partnership’s investment in collateralized loans receivable. At June 30, 2017, the Partnership had one lessee which accounted for approximately 100% of the Partnership’s investment in residual value leases. At June 30, 2016, the Partnership had one lessee which accounted for approximately 100% of the Partnership’s investment in residual value leases. |
Geographic Information
Geographic Information | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Geographic Information | 16. Geographic Information Geographic information for revenue for the three months ended June 30, 2017 and 2016 was as follows: Three Months Ended June 30, 2017 United States Europe Mexico Total Revenue: Rental income $ 498,809 $ — $ — $ 498,809 Finance income $ 441,583 $ 32,202 $ — $ 473,785 Interest income $ 1,234,232 $ — $ — $ 1,234,232 Investment loss from equity method investments $ (5,970 ) $ — $ — $ (5,970 ) Gain on sale of assets $ 15,386 $ — $ — $ 15,386 Income from equipment investment through SPV $ — $ 3,672,537 $ — $ 3,672,537 Three Months Ended June 30, 2016 United States Europe Mexico Total Revenue: Rental income $ 81,116 $ — $ — $ 81,116 Finance income $ 273,429 $ 35,007 $ — $ 308,436 Interest income $ 1,135,126 $ 6 $ — $ 1,135,132 Investment loss from equity method investments $ (28,050 ) $ — $ — $ (28,050 ) Income from equipment investment through SPV $ — $ 4,365,368 $ — $ 4,365,368 Geographic information for revenue for the six months ended June 30, 2017 and 2016 was as follows: Six Months Ended June 30, 2017 United States Europe Mexico Total Revenue: Rental income $ 1,010,276 $ — $ — $ 1,010,276 Finance income $ 965,141 $ 66,305 $ — $ 1,031,446 Interest income $ 2,748,696 $ — $ — $ 2,748,696 Investment loss from equity method investments $ (11,940 ) $ — $ — $ (11,940 ) Gain on sale of assets $ 120,601 $ 142,422 $ — $ 263,023 Income from equipment investment through SPV $ — $ 7,037,186 $ — $ 7,037,186 Six Months Ended June 30, 2016 United States Europe Mexico Total Revenue: Rental income $ 162,232 $ — $ — $ 162,232 Finance income $ 392,248 $ 72,030 $ — $ 464,278 Interest income $ 1,726,440 $ 6,738 $ — $ 1,733,178 Investment loss from equity method investments $ (92,584 ) $ — $ — $ (92,584 ) Income from equipment investment through SPV $ — $ 8,672,193 $ — $ 8,672,193 Geographic information for long-lived assets at June 30, 2017 and December 31, 2016 was as follows: June 30, 2017 United States Europe Mexico Total Long-lived assets: Investment in finance leases, net $ 6,891,981 $ 328,082 $ — $ 7,220,063 Investments in equipment subject to operating leases, net $ 8,720,949 $ — $ — $ 8,720,949 Equipment notes receivable, including accrued interest $ 14,258,686 $ 2,011,073 $ 3,043,347 $ 19,313,106 Equipment investment through SPV $ — $ 38,012,103 $ — $ 38,012,103 Collateralized loan receivable, including accrued interest $ 7,429,739 $ 18,397,928 $ 10,735,475 $ 36,563,142 December 31, 2016 United States Europe Mexico Total Long-lived assets: Investment in finance leases, net $ 7,401,219 $ 345,581 $ — $ 7,746,800 Investments in equipment subject to operating leases, net $ 356,703 $ — $ — $ 356,703 Equipment notes receivable, including accrued interest $ 20,613,049 $ 7,524,960 $ 3,043,347 $ 31,181,356 Equipment investment through SPV $ — $ 39,491,553 $ — $ 39,491,553 Collateralized loan receivable, including accrued interest $ 6,187,165 $ 17,646,328 $ 5,524,364 $ 29,357,856 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17. Subsequent Events On July 21, 2017, the Partnership, through Juliet, provided secured financing in the amount of $3,339,148 after applicable exchange rates for a motion picture production company in the United Kingdom. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
Principles of Consolidation | Principles of Consolidation Non-controlling interest represents the minority equity holders’ investment in Alpha, CONT Feeder and Helo plus the minority’s share of the net operating results and other components of equity relating to the non-controlling interest. Variable interests are investments or other interests that absorb portions of a variable interest entity’s (“VIE”) expected losses or receive portions of the Partnership’s expected residual returns and are contractual, ownership, or other pecuniary interests in a VIE that change with changes in the fair value of the VIE. An entity is considered to be a VIE if any of the following conditions exist. (1) The total equity investment at risk is insufficient to permit the legal entity to finance its activities without additional subordinated financial support; or (2) As a group, the holders of equity investments at risk lack any of the three characteristics of a controlling financial interest: (a) The direct or indirect ability through voting or similar rights to make decisions that have a significant effect on the success of the legal entity. The equity holders at risk are deemed to lack this characteristic if: i. the voting rights of some investors are not proportional to their obligation to absorb the expected losses of the legal entity or rights to receive expected residual returns; and ii. substantially all of the legal entity’s activities are either involved with or are conducted on behalf of an investor that has disproportionately few voting rights (b) The obligation to absorb the expected losses of the legal entity or (c) The right to receive the expected residual returns of the legal entity. An entity that is determined to be a VIE is required to be consolidated by its primary beneficiary. The primary beneficiary of a VIE is determined to be the party that has both the power to direct the activities that most significantly affect the VIE’s economic performance (“Power”) and the obligation to absorb losses of, or the right to receive benefits from the VIE, that could potentially be significant to the VIE (“Benefits”). The determination of whether a reporting entity is the primary beneficiary involves complex and subjective analyses. |
Use of Estimates | Use of estimates |
Cash and Cash Equivalents | Cash and Cash Equivalents The Partnership’s cash and cash equivalents are held principally at one financial institution and at times may exceed federally insured limits. The Partnership has placed these funds in an international financial institution in order to minimize risk relating to exceeding insured limits. The Partnership, through Summit Asset Management Limited, maintains an unrestricted 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 The Partnership leases equipment to third parties and each such lease may be classified as either a finance lease or an operating lease. Initial direct costs are capitalized and amortized over the term of the related lease for a finance lease. For an operating lease, initial direct costs are included as a component of the cost of the equipment and depreciated. For finance leases, the Partnership records, at lease inception, the total minimum lease payments receivable from the lessee, the estimated unguaranteed residual value of the equipment upon lease termination, the initial direct costs, if any, related to the lease and the related unearned income. Unearned income represents the difference between the sum of the minimum lease payments receivable plus the estimated unguaranteed residual value, minus the cost of the leased equipment. Unearned income is recognized as finance income over the term of the lease using the effective interest rate method. For operating leases, rental income is recognized on the straight line basis over the lease term. Billed and uncollected operating lease receivables will be included in accounts receivable. Accounts receivable are stated at their estimated net realizable value. Rental income received in advance is the difference between the timing of the cash payments and the income recognized on the straight line basis. The investment committee of the Investment Manager approves each new equipment lease, financing transaction, and lease acquisition. As part of this process it determines the unguaranteed residual value, if any, to be used once the acquisition has been approved. The factors considered in determining the unguaranteed residual value include, but are not limited to, the creditworthiness of the potential lessee, the type of equipment being considered, how the equipment is integrated into the potential lessees’ business, the length of the lease and the industry in which the potential lessee operates. Unguaranteed residual values are reviewed for impairment in accordance with the Partnership’s policy relating to impairment review. The residual value assumes, among other things, that the asset will be utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. The residual value is calculated using information from various external sources, such as trade publications, auction data, equipment dealers, wholesalers and industry experts, as well as inspection of the physical asset and other economic indicators. |
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 The Partnership has adopted the provisions of FASB Topic 740, Accounting for Uncertainty in Income Taxes. |
Per Share Data | Per Share Data |
Foreign Currency Transactions | Foreign Currency Transactions |
Depreciation | Depreciation |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments “ASU 2016-15” In February 2016, the FASB issued new guidance to improve consolidation guidance for legal entities (Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842): Amendments to Leases Analysis), effective for fiscal years beginning after December 15, 2018 and interim periods within those years and early adoption is permitted. The standard amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Partnership is currently evaluating the impact of this guidance on its condensed consolidated financial statements. Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the condensed consolidated financial statements. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | For the six months ended June 30, 2017 and year ended December 31, 2016, the Partnership incurred the following transactions with Securities: June 30, 2017 December 31, 2016 (unaudited) Balance - beginning of period $ — $ — Underwriting fees earned by Securities — 574,402 Payments by the Partnership to Securities — (574,402 ) Balance - end of period $ — $ — |
Schedule of Underwriting Fee Transactions | For the six months ended June 30, 2017 and 2016, the Partnership incurred the following underwriting fee transactions: Six Months Ended Six Months Ended June 30, 2016 (unaudited) (unaudited) Underwriting discount incurred by the Partnership $ — $ 503,338 Underwriting fees earned by Securities — 574,402 Fees paid to outside brokers — 872,167 Total underwriting fees $ — $ 1,949,907 |
Investments in Finance Leases (
Investments in Finance Leases (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Leases, Capital [Abstract] | |
Schedule of Investment in Finance Leases | At June 30, 2017 and December 31, 2016, net investment in finance leases consisted of the following: June 30, 2017 December 31, 2016 (unaudited) Minimum rents receivable $ 7,255,230 $ 9,408,605 Estimated unguaranteed residual value 2,003,757 652,689 Unearned income (2,038,235 ) (2,314,494 ) Total $ 7,220,752 $ 7,746,800 |
Investment in Equipment Subject
Investment in Equipment Subject to Operating Leases (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Leases, Operating [Abstract] | |
Summary of Investments in Equipment Subject to Operating Leases | June 30, 2017: Description Cost Basis Accumulated Depreciation Net Book Value Aircraft (Helicopters) $ 14,474,889 $ 5,753,940 $ 8,720,949 $ 14,474,889 $ 5,753,940 $ 8,720,949 December 31, 2016: Description Cost Basis Accumulated Depreciation Net Book Value Machine Tools $ 367,079 $ 10,376 $ 356,703 $ 367,079 $ 10,376 $ 356,703 |
Equipment Notes Receivable (Tab
Equipment Notes Receivable (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Schedule of Future Maturity of Notes Receivable | The future maturities of the Partnership’s equipment notes receivable at June 30, 2017 are as follows: Years ending June 30, 2018 $ 6,557,317 2019 3,803,886 2020 3,576,067 2021 3,463,845 2022 1,519,696 2023 170,551 $ 19,091,362 |
Fair Value of Financial Instr30
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Value of Financial Instruments | The Partnership’s carrying values and approximate fair values of its financial instruments were as follows: June 30, 2017 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value Assets: Equipment notes receivable $ 19,091,362 $ 19,091,362 $ 31,107,975 $ 31,107,975 Collateralized loans receivable $ 34,344,665 $ 34,344,665 $ 28,265,033 $ 28,265,033 Liabilities: Loans payable $ 65,044,182 $ 65,044,182 $ 60,589,483 $ 60,589,483 |
Geographic Information (Tables)
Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Geographic Information for Revenue | Geographic information for revenue for the three months ended June 30, 2017 and 2016 was as follows: Three Months Ended June 30, 2017 United States Europe Mexico Total Revenue: Rental income $ 498,809 $ — $ — $ 498,809 Finance income $ 441,583 $ 32,202 $ — $ 473,785 Interest income $ 1,234,232 $ — $ — $ 1,234,232 Investment loss from equity method investments $ (5,970 ) $ — $ — $ (5,970 ) Gain on sale of assets $ 15,386 $ — $ — $ 15,386 Income from equipment investment through SPV $ — $ 3,672,537 $ — $ 3,672,537 Three Months Ended June 30, 2016 United States Europe Mexico Total Revenue: Rental income $ 81,116 $ — $ — $ 81,116 Finance income $ 273,429 $ 35,007 $ — $ 308,436 Interest income $ 1,135,126 $ 6 $ — $ 1,135,132 Investment loss from equity method investments $ (28,050 ) $ — $ — $ (28,050 ) Income from equipment investment through SPV $ — $ 4,365,368 $ — $ 4,365,368 Geographic information for revenue for the six months ended June 30, 2017 and 2016 was as follows: Six Months Ended June 30, 2017 United States Europe Mexico Total Revenue: Rental income $ 1,010,276 $ — $ — $ 1,010,276 Finance income $ 965,141 $ 66,305 $ — $ 1,031,446 Interest income $ 2,748,696 $ — $ — $ 2,748,696 Investment loss from equity method investments $ (11,940 ) $ — $ — $ (11,940 ) Gain on sale of assets $ 120,601 $ 142,422 $ — $ 263,023 Income from equipment investment through SPV $ — $ 7,037,186 $ — $ 7,037,186 Six Months Ended June 30, 2016 United States Europe Mexico Total Revenue: Rental income $ 162,232 $ — $ — $ 162,232 Finance income $ 392,248 $ 72,030 $ — $ 464,278 Interest income $ 1,726,440 $ 6,738 $ — $ 1,733,178 Investment loss from equity method investments $ (92,584 ) $ — $ — $ (92,584 ) Income from equipment investment through SPV $ — $ 8,672,193 $ — $ 8,672,193 |
Schedule of Geographic Information for Long-lived Assets | Geographic information for long-lived assets at June 30, 2017 and December 31, 2016 was as follows: June 30, 2017 United States Europe Mexico Total Long-lived assets: Investment in finance leases, net $ 6,891,981 $ 328,082 $ — $ 7,220,063 Investments in equipment subject to operating leases, net $ 8,720,949 $ — $ — $ 8,720,949 Equipment notes receivable, including accrued interest $ 14,258,686 $ 2,011,073 $ 3,043,347 $ 19,313,106 Equipment investment through SPV $ — $ 38,012,103 $ — $ 38,012,103 Collateralized loan receivable, including accrued interest $ 7,429,739 $ 18,397,928 $ 10,735,475 $ 36,563,142 December 31, 2016 United States Europe Mexico Total Long-lived assets: Investment in finance leases, net $ 7,401,219 $ 345,581 $ — $ 7,746,800 Investments in equipment subject to operating leases, net $ 356,703 $ — $ — $ 356,703 Equipment notes receivable, including accrued interest $ 20,613,049 $ 7,524,960 $ 3,043,347 $ 31,181,356 Equipment investment through SPV $ — $ 39,491,553 $ — $ 39,491,553 Collateralized loan receivable, including accrued interest $ 6,187,165 $ 17,646,328 $ 5,524,364 $ 29,357,856 |
Organization and Nature of Op32
Organization and Nature of Operations (Details Narrative) | Mar. 30, 2017USD ($) | Apr. 15, 2016 | Dec. 29, 2015USD ($) | Dec. 28, 2015USD ($) | Dec. 16, 2015USD ($)$ / shares | Jun. 03, 2015USD ($) | Jan. 07, 2015USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)Leasesshares | Jan. 19, 2017USD ($) | Dec. 31, 2016USD ($) | Nov. 04, 2016USD ($) | May 05, 2016USD ($) | Apr. 22, 2016USD ($) | Feb. 29, 2016 | Dec. 31, 2015USD ($) |
Percentage of ownership | 20.00% | 20.00% | |||||||||||||||
Debt face amount | $ 4,148,419 | $ 4,148,419 | $ 4,148,419 | $ 7,000,000 | |||||||||||||
Interest rate | 12.00% | ||||||||||||||||
Maximum borrowing capacity | $ 2,926,342 | ||||||||||||||||
Contributed amount | $ 19,146,741 | ||||||||||||||||
Loans payable | 65,044,182 | 65,044,182 | 60,589,483 | ||||||||||||||
Cash paid for portfolio | (85,093) | $ (1,939) | |||||||||||||||
Capital distribution | $ (2,986,084) | ||||||||||||||||
Third Party [Member] | |||||||||||||||||
Contributed amount | $ 999,321 | ||||||||||||||||
Loan Agreement [Member] | |||||||||||||||||
Debt face amount | $ 2,000,000 | ||||||||||||||||
Maturity date | Dec. 30, 2024 | Dec. 28, 2020 | |||||||||||||||
Juliet Participation A [Member] | |||||||||||||||||
Debt face amount | $ 2,124,000 | ||||||||||||||||
Interest rate | 6.00% | ||||||||||||||||
Equipment notes receivables | $ 14,621,000 | ||||||||||||||||
Loan facility, cash | 8,511,000 | ||||||||||||||||
Loan facility, interest | $ 3,986,000 | ||||||||||||||||
Juliet Participation B [Member] | |||||||||||||||||
Interest rate | 12.00% | ||||||||||||||||
Limited Partner [Member] | |||||||||||||||||
Percentage of targeted cash distribution | 6.50% | ||||||||||||||||
Percentage of targeted cash distribution, quarterly percentage | 1.625% | ||||||||||||||||
Capital distribution | $ 2,956,519 | $ 74,965,064 | |||||||||||||||
Number of partners | Leases | 1,508 | ||||||||||||||||
Sale of unit | shares | 74,965.07 | ||||||||||||||||
Distribution to limited partners | $ 72,504,327 | ||||||||||||||||
Cash applied for additional units | $ 2,460,737 | ||||||||||||||||
Partnership additional units purchased | shares | 2,460.74 | ||||||||||||||||
SQN Alpha LLC [Member] | Promissory Note [Member] | |||||||||||||||||
Debt face amount | $ 2,650,000 | ||||||||||||||||
Interest rate | 11.10% | ||||||||||||||||
Maturity date | Jun. 30, 2020 | ||||||||||||||||
SQN Alpha LLC [Member] | Promissory Note [Member] | Alpha Participation A [Member] | |||||||||||||||||
Debt face amount | $ 1,788,750 | ||||||||||||||||
Interest rate | 9.00% | ||||||||||||||||
SQN Alpha LLC [Member] | Promissory Note [Member] | Alpha Participation B [Member] | |||||||||||||||||
Debt face amount | $ 861,250 | ||||||||||||||||
Interest rate | 15.05% | ||||||||||||||||
SQN Juliet, LLC [Member] | |||||||||||||||||
Equipment notes receivables | $ 4,866,750 | ||||||||||||||||
SQN Juliet, LLC [Member] | Loan Agreement [Member] | |||||||||||||||||
Debt face amount | $ 3,071,000 | ||||||||||||||||
Interest rate | 8.50% | ||||||||||||||||
Maturity date | Dec. 29, 2016 | ||||||||||||||||
SQN Juliet, LLC [Member] | Juliet Participation A [Member] | |||||||||||||||||
Interest rate | 8.50% | ||||||||||||||||
Equipment notes receivables | $ 3,071,000 | ||||||||||||||||
SQN Juliet, LLC [Member] | Juliet Participation B [Member] | |||||||||||||||||
Equipment notes receivables | $ 4,866,750 | ||||||||||||||||
SQN Marine, LLC [Member] | |||||||||||||||||
Percentage of underwriting fee | 3.00% | ||||||||||||||||
Percentage of sales commission | 7.00% | ||||||||||||||||
Capital contribution percentage | 8.00% | ||||||||||||||||
Price per unit, offering | $ / shares | $ 1,000 | ||||||||||||||||
SQN Marine, LLC [Member] | Limited Partners [Member] | |||||||||||||||||
Percentage of ownership | 99.00% | ||||||||||||||||
Interest rate | 80.00% | ||||||||||||||||
SQN Marine, LLC [Member] | General Partner [Member] | |||||||||||||||||
Percentage of ownership | 1.00% | ||||||||||||||||
Interest rate | 20.00% | ||||||||||||||||
SQN Marine, LLC [Member] | Partnership Interest Agreement [Member] | |||||||||||||||||
Acquisition of interest in assignment description | Marine acquired an 88.20% (90% of 98%) economic interest in a portfolio of container feeder vessels | ||||||||||||||||
Investment | $ 28,266,789 | ||||||||||||||||
Contributed amount | 12,135,718 | ||||||||||||||||
SQN Marine, LLC [Member] | Partnership Interest Agreement [Member] | Third Parties One [Member] | |||||||||||||||||
Loans payable | 7,500,000 | ||||||||||||||||
SQN Marine, LLC [Member] | Partnership Interest Agreement [Member] | Third Parties Two [Member] | |||||||||||||||||
Loans payable | 9,604,091 | ||||||||||||||||
CONT Feeder [Member] | |||||||||||||||||
Interest rate | 10.00% | 10.00% | |||||||||||||||
Loans payable | $ 11,189,101 | $ 11,189,101 | |||||||||||||||
CONT Feeder [Member] | Third Party [Member] | |||||||||||||||||
Contributed amount | $ 3,140,754 | ||||||||||||||||
Percentage of purchase of shares | 10.00% | ||||||||||||||||
CONT Feeder [Member] | Unrelated Third Party [Member] | |||||||||||||||||
Note payable | $ 14,375,654 | ||||||||||||||||
SQN Helo, LLC [Member] | |||||||||||||||||
Percentage of ownership | 75.00% | 75.00% | 76.00% | ||||||||||||||
Participation interest | $ 1,500,000 | ||||||||||||||||
Purchase price of investment portfolio | 23,201,000 | ||||||||||||||||
Cash paid for portfolio | 11,925,000 | ||||||||||||||||
Nonrecourse indebtedness amount | $ 11,276,000 | ||||||||||||||||
Equity method investment advances | $ 1,465,000 | ||||||||||||||||
Partnership additional equity investment | $ 3,325,506 | ||||||||||||||||
Distribution from related party | $ 250,000 | ||||||||||||||||
SQN AIF IV GP, LLC [Member] | |||||||||||||||||
Partnership contribution | $ 100 | $ 100 | |||||||||||||||
Percentage of ownership | 1.00% | 1.00% | |||||||||||||||
SQN Alpha LLC [Member] | |||||||||||||||||
Percentage of ownership | 32.50% | ||||||||||||||||
Percentage of investment for non controlling interest | 67.50% | ||||||||||||||||
SQN Portfolio Acquisition Company, LLC [Member] | |||||||||||||||||
Percentage of ownership | 67.50% | ||||||||||||||||
UK Based Parent Company [Member] | Just Loans [Member] | |||||||||||||||||
Interest rate | 30.00% | ||||||||||||||||
UK Based Parent Company [Member] | Just Loans [Member] | GBP [Member] | |||||||||||||||||
Debt face amount | $ 10,075,000 | ||||||||||||||||
Interest rate | 10.00% | ||||||||||||||||
Maximum borrowing capacity | $ 5,037,500 | ||||||||||||||||
Draw down amount | 1,000,000 | ||||||||||||||||
Facility expiration date | Sep. 30, 2017 | ||||||||||||||||
UK Based Parent Company [Member] | Just Loans [Member] | GBP [Member] | First Draws [Member] | |||||||||||||||||
Draw down amount | 1,037,500 | ||||||||||||||||
Third party fee | $ 37,500 | ||||||||||||||||
SQN PAC [Member] | |||||||||||||||||
Debt face amount | $ 2,650,000 | ||||||||||||||||
Interest rate | 11.10% | ||||||||||||||||
Maturity date | Jun. 30, 2020 | ||||||||||||||||
SQN PAC [Member] | SQN Helo, LLC [Member] | |||||||||||||||||
Percentage of ownership | 25.00% | 50.00% | 50.00% | ||||||||||||||
Participation interest | $ 1,500,000 | ||||||||||||||||
Partnership [Member] | SQN Helo, LLC [Member] | |||||||||||||||||
Percentage of ownership | 50.00% | 50.00% |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Details Narrative) | Jun. 30, 2017 |
Percentage of ownership | 20.00% |
SQN Technologies LLC [Member] | |
Percentage of ownership | 24.50% |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |||||
Maximum percentage of average management fees | 2.00% | 2.00% | |||
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% | |||
Description of management fee | The Partnership pays the Investment Manager during the Offering Period, Operating Period and the Liquidation Period a management fee equal to or the greater of, (i) 2.5% per annum of the aggregate offering proceeds, or (ii) $125,000 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. | ||||
Management fee expense | $ 375,000 | $ 375,000 | $ 750,000 | $ 750,000 | |
Percentage of gross proceeds of offering - underwriting fees | 3.00% |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |||
Balance - beginning of year | |||
Underwriting fees earned by Securities | $ 574,402 | 574,402 | |
Payments by the Partnership to Securities | (574,402) | ||
Balance - end of year |
Related Party Transactions - 36
Related Party Transactions - Schedule of Underwriting Fee Transactions (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |||
Underwriting discount incurred by the Partnership | $ 503,338 | ||
Underwriting fees earned by Securities | 574,402 | $ 574,402 | |
Fees paid to outside brokers | 872,167 | ||
Total underwriting fees | $ 1,949,907 |
Investments in Finance Leases37
Investments in Finance Leases (Details Narrative) | Apr. 28, 2017USD ($) | Mar. 30, 2017USD ($) | Mar. 30, 2017USD ($) | Jun. 24, 2016USD ($) | May 25, 2016USD ($) | Feb. 29, 2016USD ($) | Jan. 31, 2016USD ($) | Dec. 30, 2015USD ($) | Dec. 29, 2015USD ($) | Oct. 30, 2015USD ($) | Oct. 07, 2015USD ($) | Sep. 01, 2015USD ($) | Apr. 30, 2015USD ($) | Sep. 15, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) |
Net book value | $ 9,871,737 | $ 9,871,737 | |||||||||||||||||
Payment of equipment lease receivables | $ 20,000,000 | ||||||||||||||||||
Contributed amount | $ 19,146,741 | ||||||||||||||||||
Furniture and Fixtures and Server Equipment [Member] | |||||||||||||||||||
Lease term | 31 months | 36 months | |||||||||||||||||
Payment of equipment lease receivables | $ 12,464 | $ 77,727 | |||||||||||||||||
Furniture, fixtures and equipment lease | $ 337,131 | $ 2,700,000 | |||||||||||||||||
Third Party [Member] | |||||||||||||||||||
Net book value | $ 984,693 | $ 984,693 | |||||||||||||||||
Contributed amount | 999,321 | ||||||||||||||||||
Gain on financing lease | 14,628 | ||||||||||||||||||
Third Party 1 [Member] | |||||||||||||||||||
Net book value | 483,152 | 483,152 | |||||||||||||||||
Contributed amount | 488,029 | ||||||||||||||||||
Gain on financing lease | 4,877 | ||||||||||||||||||
Third Party 2 [Member] | |||||||||||||||||||
Net book value | $ 248,240 | 248,240 | |||||||||||||||||
Contributed amount | 250,696 | ||||||||||||||||||
Gain on financing lease | $ 2,456 | ||||||||||||||||||
Computer Networking Equipment [Member] | |||||||||||||||||||
Lease term | 36 months | 36 months | 36 months | 36 months | 36 months | ||||||||||||||
Payment of equipment lease receivables | $ 20,524 | $ 48,171 | $ 12,456 | $ 9,460 | $ 14,195 | ||||||||||||||
Furniture, fixtures and equipment lease | $ 656,772 | $ 1,541,461 | $ 389,266 | $ 297,689 | $ 446,677 | ||||||||||||||
Computer Hardware & Software [Member] | |||||||||||||||||||
Lease term | 30 months | ||||||||||||||||||
Payment of equipment lease receivables | $ 58,950 | ||||||||||||||||||
Furniture, fixtures and equipment lease | $ 1,500,000 | ||||||||||||||||||
Manufacturing Equipment [Member] | |||||||||||||||||||
Net book value | 73,638 | ||||||||||||||||||
Lease term | 60 months | 60 months | |||||||||||||||||
Payment of equipment lease receivables | $ 2,077 | $ 1,277 | |||||||||||||||||
Furniture, fixtures and equipment lease | 94,300 | $ 58,000 | |||||||||||||||||
Contributed amount | $ 52,145 | ||||||||||||||||||
Gain on financing lease | $ 2,836 | ||||||||||||||||||
Proceeds from sale of finance lease | $ 76,474 | ||||||||||||||||||
Gamma Knife Suite [Member] | |||||||||||||||||||
Furniture, fixtures and equipment lease | $ 576,750 | ||||||||||||||||||
Foreign currency exchange rate | 1.538 | ||||||||||||||||||
Lease payable date | July 2015 through April 2020 | ||||||||||||||||||
Gamma Knife Suite [Member] | GBP [Member] | |||||||||||||||||||
Payment of equipment lease receivables | $ 25,060 | ||||||||||||||||||
Furniture, fixtures and equipment lease | $ 375,000 | ||||||||||||||||||
Medical Equipment [Member] | |||||||||||||||||||
Lease term | 48 months | ||||||||||||||||||
Payment of equipment lease receivables | $ 7,415 | ||||||||||||||||||
Furniture, fixtures and equipment lease | $ 247,920 | ||||||||||||||||||
Lease Agreement [Member] | |||||||||||||||||||
Lease term | 18 months | ||||||||||||||||||
Payment of equipment lease receivables | $ 90,116 | ||||||||||||||||||
Aircraft rotable parts equipment | 775,000 | ||||||||||||||||||
Aircraft [Member] | |||||||||||||||||||
Net book value | 3,378,129 | $ 3,378,129 | |||||||||||||||||
Lease term | 18 months | ||||||||||||||||||
Payment of equipment lease receivables | $ 79,167 | ||||||||||||||||||
Other finance lease monthly payments | 48 months | ||||||||||||||||||
Other finance lease payments | $ 32,500 | $ 32,500 |
Investments in Finance Leases -
Investments in Finance Leases - Schedule of Investment in Finance Leases (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Leases, Capital [Abstract] | ||
Minimum rents receivable | $ 7,255,230 | $ 9,408,605 |
Estimated unguaranteed residual value | 2,003,757 | 652,689 |
Unearned income | (2,038,235) | (2,314,494) |
Total investments in finance leases | $ 7,220,063 | $ 7,746,800 |
Investment in Equipment Subje39
Investment in Equipment Subject to Operating Leases (Details Narrative) - USD ($) | Apr. 28, 2017 | Oct. 24, 2016 | Sep. 15, 2014 | Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Net book value | $ 9,871,737 | |||||
Operating leases amount | $ 80,160 | |||||
Operating lease expiration | expiring in August 2017 | |||||
Lease term | 5 years | |||||
Depreciation expenses | $ 579,683 | $ 1,168,862 | ||||
Operating Lease One [Member ] | ||||||
Operating leases amount | $ 32,500 | |||||
Lease term | 48 months | |||||
Operating Lease Three [Member ] | ||||||
Operating leases amount | $ 32,500 | |||||
Lease term | 48 months | |||||
Operating Lease Two [Member ] | ||||||
Operating leases amount | $ 19,000 | |||||
Lease term | 48 months | |||||
Operating Lease [Member] | ||||||
Operating leases amount | $ 6,329 | |||||
Lease term | 60 months | |||||
Proceeds from sale of notes | $ 344,957 | |||||
Operating lease book value | 338,629 | |||||
Gain (loss) on sales of operating lease | $ 6,328 |
Investment in Equipment Subje40
Investment in Equipment Subject to Operating Leases - Summary of Investments in Equipment Subject to Operating Leases (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Cost Basis | $ 14,474,889 | $ 367,079 |
Accumulated Depreciation | 5,753,940 | 10,376 |
Net Book Value | 8,720,949 | 356,703 |
Aircraft (Helicopters) [Member] | ||
Cost Basis | 14,474,889 | |
Accumulated Depreciation | 5,753,940 | |
Net Book Value | $ 8,720,949 | |
Machine Tools [Member] | ||
Cost Basis | 367,079 | |
Accumulated Depreciation | 10,376 | |
Net Book Value | $ 356,703 |
Equipment Notes Receivable (Det
Equipment Notes Receivable (Details Narrative) - USD ($) | Mar. 31, 2017 | Mar. 31, 2017 | Mar. 30, 2017 | Mar. 30, 2017 | Mar. 29, 2017 | Jan. 18, 2017 | Jan. 09, 2017 | Dec. 23, 2016 | Dec. 02, 2016 | Sep. 30, 2016 | Aug. 17, 2016 | Jun. 30, 2016 | Jun. 24, 2016 | Jun. 03, 2016 | Jun. 02, 2016 | May 05, 2016 | Apr. 14, 2016 | Apr. 11, 2016 | Mar. 08, 2016 | Mar. 04, 2016 | Jan. 23, 2016 | Dec. 31, 2015 | Dec. 14, 2015 | Nov. 04, 2015 | Oct. 30, 2015 | Feb. 24, 2015 | Dec. 22, 2014 | Dec. 19, 2014 | May 09, 2014 | May 02, 2014 | Sep. 27, 2013 | Jun. 30, 2015 | Jun. 30, 2017 | Jun. 30, 2017 | Apr. 28, 2017 | Dec. 31, 2016 | Dec. 13, 2016 | Nov. 04, 2016 | Jun. 29, 2016 | Apr. 22, 2016 | Apr. 18, 2016 | Feb. 18, 2016 | Dec. 29, 2015 | Jan. 31, 2015 | Dec. 31, 2014 |
Debt face amount | $ 4,148,419 | $ 4,148,419 | $ 4,148,419 | $ 7,000,000 | |||||||||||||||||||||||||||||||||||||||||
Loan facility term | 24 months | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate | 12.00% | ||||||||||||||||||||||||||||||||||||||||||||
Interest income debt | 45,799 | 378,307 | |||||||||||||||||||||||||||||||||||||||||||
Net book value | 9,871,737 | ||||||||||||||||||||||||||||||||||||||||||||
Loan facility maximum borrowing | $ 2,926,342 | ||||||||||||||||||||||||||||||||||||||||||||
SQN AFI [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Debt face amount | $ 2,497,400 | $ 2,497,400 | |||||||||||||||||||||||||||||||||||||||||||
Percentage of loan | 85.00% | ||||||||||||||||||||||||||||||||||||||||||||
Proceeds from related party | 6,416,092 | ||||||||||||||||||||||||||||||||||||||||||||
Third Party [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Net book value | $ 984,693 | $ 984,693 | |||||||||||||||||||||||||||||||||||||||||||
Gain on financing lease | 14,628 | ||||||||||||||||||||||||||||||||||||||||||||
Partnership [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Debt face amount | 2,497,400 | 2,497,400 | $ 370,187 | ||||||||||||||||||||||||||||||||||||||||||
Loan facility maximum borrowing | $ 2,389,041 | ||||||||||||||||||||||||||||||||||||||||||||
Advances to loan issuer | $ 7,947,310 | ||||||||||||||||||||||||||||||||||||||||||||
Percentage of loan | 15.00% | ||||||||||||||||||||||||||||||||||||||||||||
Proceeds from related party | 1,531,218 | ||||||||||||||||||||||||||||||||||||||||||||
Juliet [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Net book value | $ 7,804,888 | 7,804,888 | |||||||||||||||||||||||||||||||||||||||||||
Gain on financing lease | $ 142,422 | ||||||||||||||||||||||||||||||||||||||||||||
Manufacturing/Solar Equipment [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Debt face amount | $ 3,893,165 | $ 3,893,165 | |||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of debt | 4,107,294 | 4,021,250 | |||||||||||||||||||||||||||||||||||||||||||
Accrued interest | $ 214,129 | $ 128,085 | |||||||||||||||||||||||||||||||||||||||||||
Interest income debt | 0 | 41,648 | |||||||||||||||||||||||||||||||||||||||||||
Manufacturing/Solar Equipment [Member] | Partnership [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Debt face amount | $ 730,170 | $ 3,893,165 | |||||||||||||||||||||||||||||||||||||||||||
Loan facility term | 36 months | 51 months | |||||||||||||||||||||||||||||||||||||||||||
Loan facility interest and principal payment | $ 3,893,165 | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate | 10.50% | 11.00% | |||||||||||||||||||||||||||||||||||||||||||
Interest rate balloon payment | 5.00% | 8.00% | |||||||||||||||||||||||||||||||||||||||||||
Maturity date | Aug. 1, 2019 | Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||
Manufacturing/Solar Equipment [Member] | Juliet [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Debt face amount | $ 2,500,000 | ||||||||||||||||||||||||||||||||||||||||||||
Loan facility term | 51 months | ||||||||||||||||||||||||||||||||||||||||||||
Loan facility interest and principal payment | $ 2,500,000 | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate | 11.00% | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate balloon payment | 8.00% | ||||||||||||||||||||||||||||||||||||||||||||
Maturity date | Mar. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Construction Equipment [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Debt face amount | $ 1,289,163 | $ 205,000 | $ 1,529,674 | ||||||||||||||||||||||||||||||||||||||||||
Loan facility term | 72 months | 60 months | 72 months | ||||||||||||||||||||||||||||||||||||||||||
Loan facility interest and principal payment | $ 24,326 | $ 4,450 | $ 28,865 | ||||||||||||||||||||||||||||||||||||||||||
Maturity date | Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||
Construction Equipment [Member] | Juliet [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Debt face amount | $ 2,335,960 | $ 43,177 | $ 1,426,732 | $ 1,619,283 | |||||||||||||||||||||||||||||||||||||||||
Loan facility term | 60 months | 60 months | 72 months | ||||||||||||||||||||||||||||||||||||||||||
Loan facility interest and principal payment | $ 48,100 | $ 950 | $ 57,925 | ||||||||||||||||||||||||||||||||||||||||||
Maturity date | Jun. 30, 2021 | Nov. 30, 2021 | Sep. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of debt | $ 2,252,389 | ||||||||||||||||||||||||||||||||||||||||||||
Interest income debt | 215,752 | 373,269 | |||||||||||||||||||||||||||||||||||||||||||
Net book value | 2,239,760 | ||||||||||||||||||||||||||||||||||||||||||||
Gain on financing lease | $ 12,629 | ||||||||||||||||||||||||||||||||||||||||||||
Food Manufacturing Equipment [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Debt face amount | $ 2,500,000 | ||||||||||||||||||||||||||||||||||||||||||||
Loan facility term | 34 months | 36 months | |||||||||||||||||||||||||||||||||||||||||||
Loan facility interest and principal payment | $ 81,657 | $ 81,657 | |||||||||||||||||||||||||||||||||||||||||||
Maturity date | Apr. 1, 2019 | ||||||||||||||||||||||||||||||||||||||||||||
Interest income debt | 0 | 67,250 | |||||||||||||||||||||||||||||||||||||||||||
Food Manufacturing Equipment [Member] | Third Party [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of debt | 1,802,371 | ||||||||||||||||||||||||||||||||||||||||||||
Net book value | 1,790,618 | 1,790,618 | |||||||||||||||||||||||||||||||||||||||||||
Gain on financing lease | 11,753 | ||||||||||||||||||||||||||||||||||||||||||||
Manufacturing and Testing Equipment [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Debt face amount | $ 1,992,000 | ||||||||||||||||||||||||||||||||||||||||||||
Loan facility term | 30 months | ||||||||||||||||||||||||||||||||||||||||||||
Loan facility interest and principal payment | $ 76,016 | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate balloon payment | 3.00% | ||||||||||||||||||||||||||||||||||||||||||||
Maturity date | Sep. 1, 2018 | ||||||||||||||||||||||||||||||||||||||||||||
Interest income debt | 0 | $ 35,293 | |||||||||||||||||||||||||||||||||||||||||||
Manufacturing and Testing Equipment [Member] | Third Party [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Proceeds from issuance of debt | 1,232,293 | ||||||||||||||||||||||||||||||||||||||||||||
Net book value | $ 1,173,422 | 1,173,422 | |||||||||||||||||||||||||||||||||||||||||||
Gain on financing lease | $ 58,871 | ||||||||||||||||||||||||||||||||||||||||||||
Medical Equipment Promissory Note [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Loan facility term | 28 months | ||||||||||||||||||||||||||||||||||||||||||||
Loan facility interest and principal payment | $ 76,016 | ||||||||||||||||||||||||||||||||||||||||||||
Transportation Equipment [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Debt face amount | $ 204,303 | $ 247,194 | |||||||||||||||||||||||||||||||||||||||||||
Loan facility term | 72 months | 72 months | |||||||||||||||||||||||||||||||||||||||||||
Loan facility interest and principal payment | $ 4,045 | $ 4,697 | |||||||||||||||||||||||||||||||||||||||||||
Maturity date | Mar. 3, 2022 | Jan. 23, 2022 | |||||||||||||||||||||||||||||||||||||||||||
Interest income debt | 11,049 | 22,877 | |||||||||||||||||||||||||||||||||||||||||||
Secured Business Loans [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Interest rate | 10.00% | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate balloon payment | 30.00% | ||||||||||||||||||||||||||||||||||||||||||||
Advances to loan issuer | $ 2,974,000 | ||||||||||||||||||||||||||||||||||||||||||||
Secured Business Loans [Member] | SQN Juliet, LLC [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Advances to loan issuer | $ 740,160 | $ 2,140,350 | $ 2,878,000 | ||||||||||||||||||||||||||||||||||||||||||
Secured Business Loans [Member] | GBP [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Debt face amount | $ 10,075,000 | ||||||||||||||||||||||||||||||||||||||||||||
Maturity date | Sep. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||
Loan facility maximum borrowing | $ 5,037,500 | ||||||||||||||||||||||||||||||||||||||||||||
Draw down amount | 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||
Amount funded to third party | 1,037,500 | ||||||||||||||||||||||||||||||||||||||||||||
Third party fee | $ 37,500 | ||||||||||||||||||||||||||||||||||||||||||||
Honey Production Equipment [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Debt face amount | $ 12,789 | ||||||||||||||||||||||||||||||||||||||||||||
Loan facility term | 36 months | ||||||||||||||||||||||||||||||||||||||||||||
Loan facility interest and principal payment | $ 425 | ||||||||||||||||||||||||||||||||||||||||||||
Maturity date | Nov. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||
Interest income debt | 228 | 553 | |||||||||||||||||||||||||||||||||||||||||||
Towing Equipment [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Debt face amount | $ 96,000 | ||||||||||||||||||||||||||||||||||||||||||||
Loan facility term | 60 months | ||||||||||||||||||||||||||||||||||||||||||||
Loan facility interest and principal payment | $ 2,041 | ||||||||||||||||||||||||||||||||||||||||||||
Maturity date | Oct. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
Interest income debt | 2,360 | 4,268 | |||||||||||||||||||||||||||||||||||||||||||
Tractor and Trailer Equipment [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Debt face amount | $ 15,000 | $ 147,919 | |||||||||||||||||||||||||||||||||||||||||||
Loan facility term | 60 months | 60 months | |||||||||||||||||||||||||||||||||||||||||||
Loan facility interest and principal payment | $ 330 | $ 3,255 | |||||||||||||||||||||||||||||||||||||||||||
Maturity date | Oct. 31, 2020 | Oct. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||
Interest income debt | 3,589 | 7,388 | |||||||||||||||||||||||||||||||||||||||||||
Furniture, Fixtures and Equipment [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Debt face amount | $ 817,045 | ||||||||||||||||||||||||||||||||||||||||||||
Loan facility term | 35 months | ||||||||||||||||||||||||||||||||||||||||||||
Loan facility interest and principal payment | $ 26,145 | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate | 18.84% | ||||||||||||||||||||||||||||||||||||||||||||
Maturity date | Nov. 1, 2018 | ||||||||||||||||||||||||||||||||||||||||||||
Interest income debt | 23,143 | 47,335 | |||||||||||||||||||||||||||||||||||||||||||
Loan facility balloon payment | $ 123,000 | ||||||||||||||||||||||||||||||||||||||||||||
Mineral Processing Equipment [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Loan facility term | 48 months | ||||||||||||||||||||||||||||||||||||||||||||
Loan facility interest and principal payment | $ 68,718 | ||||||||||||||||||||||||||||||||||||||||||||
Maturity date | Sep. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||
Loan facility maximum borrowing | $ 3,000,000 | ||||||||||||||||||||||||||||||||||||||||||||
Advances to loan issuer | 2,500,000 | ||||||||||||||||||||||||||||||||||||||||||||
Loan facility balloon payment | 500,000 | ||||||||||||||||||||||||||||||||||||||||||||
Original payment | $ 69,577 | ||||||||||||||||||||||||||||||||||||||||||||
Mineral Equipment Loan Facility [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Debt face amount | $ 500,000 | ||||||||||||||||||||||||||||||||||||||||||||
Loan facility term | 41 months | ||||||||||||||||||||||||||||||||||||||||||||
Loan facility interest and principal payment | $ 15,764 | ||||||||||||||||||||||||||||||||||||||||||||
Maturity date | Sep. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||
Mineral Equipment Promissory Note Refinance [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Debt face amount | $ 200,000 | ||||||||||||||||||||||||||||||||||||||||||||
Loan facility term | 48 months | ||||||||||||||||||||||||||||||||||||||||||||
Loan facility interest and principal payment | $ 79,255 | ||||||||||||||||||||||||||||||||||||||||||||
Accrued interest | 204,721 | ||||||||||||||||||||||||||||||||||||||||||||
Loan facility balloon payment | $ 500,000 | ||||||||||||||||||||||||||||||||||||||||||||
Outstanding principal amount | 2,537,822 | ||||||||||||||||||||||||||||||||||||||||||||
Note receivable | $ 2,883,347 | ||||||||||||||||||||||||||||||||||||||||||||
Mineral Equipment Promissory Note Refinance [Member] | January 25, 2019 [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Maturity date | Jan. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
Outstanding principal amount | $ 150,000 | ||||||||||||||||||||||||||||||||||||||||||||
Mineral Processing Equipment Promissory Note [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Advances to loan issuer | $ 100,000 | $ 100,000 | |||||||||||||||||||||||||||||||||||||||||||
Loan principal payment | $ 40,000 | ||||||||||||||||||||||||||||||||||||||||||||
Medical Equipment Note 1 [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Debt face amount | $ 667,629 | ||||||||||||||||||||||||||||||||||||||||||||
Loan facility term | 60 months | ||||||||||||||||||||||||||||||||||||||||||||
Loan facility interest and principal payment | $ 15,300 | ||||||||||||||||||||||||||||||||||||||||||||
Interest income debt | 15,310 | 29,444 | |||||||||||||||||||||||||||||||||||||||||||
Brake Manufacturing Equipment Notes Receivable [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Debt face amount | $ 432,000 | ||||||||||||||||||||||||||||||||||||||||||||
Loan facility interest and principal payment | $ 34,786 | ||||||||||||||||||||||||||||||||||||||||||||
Interest rate | 12.50% | ||||||||||||||||||||||||||||||||||||||||||||
Maturity date | Jan. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||
Interest income debt | $ 6,966 | $ 14,936 |
Equipment Notes Receivable - Sc
Equipment Notes Receivable - Schedule of Future Maturity of Notes Receivable (Details) | Jun. 30, 2017USD ($) |
Receivables [Abstract] | |
2,018 | $ 6,557,317 |
2,019 | 3,803,886 |
2,020 | 3,576,067 |
2,021 | 3,463,845 |
2,022 | 1,519,696 |
2,023 | 170,551 |
Total | $ 19,091,362 |
Residual Value Investment in 43
Residual Value Investment in Equipment on Lease (Details Narrative) - USD ($) | Sep. 15, 2014 | Jun. 30, 2017 | Dec. 31, 2016 |
Original equipment cost | $ 20,000,000 | ||
Lease term | 5 years | ||
Residual value investment in equipment on lease | $ 2,775,060 | $ 2,860,153 | |
Master Lease Agreement [Member] | |||
Percentage of financing | 15.00% | ||
Lease commitment | $ 3,000,000 | ||
Master Lease Agreement [Member] | Third Party [Member] | |||
Percentage of financing | 85.00% | ||
Lease commitment | $ 17,000,000 | ||
Maximum [Member] | |||
Original equipment cost | $ 3,000,000 |
Collateralized Loan Receivable
Collateralized Loan Receivable (Details Narrative) - USD ($) | Sep. 23, 2016 | Sep. 12, 2016 | Aug. 05, 2016 | May 05, 2016 | Apr. 25, 2016 | Apr. 15, 2016 | Dec. 28, 2015 | Oct. 02, 2015 | Aug. 13, 2015 | Jun. 03, 2015 | May 13, 2015 | Mar. 31, 2017 | Jan. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Apr. 28, 2017 | Apr. 05, 2017 | Apr. 04, 2017 | Mar. 08, 2017 | Feb. 23, 2017 | Jan. 13, 2017 | Dec. 31, 2016 | Dec. 30, 2016 | Nov. 29, 2016 | Nov. 23, 2016 | Nov. 04, 2016 | Oct. 07, 2016 | Oct. 04, 2016 | Sep. 30, 2016 | Sep. 15, 2016 | Jul. 21, 2016 | Apr. 22, 2016 |
Promissory note interest rate percentage | 12.00% | ||||||||||||||||||||||||||||||||
Promissory note principal amount | $ 4,148,419 | $ 4,148,419 | $ 4,148,419 | $ 7,000,000 | |||||||||||||||||||||||||||||
Loan facility maximum borrowing capacity | $ 2,926,342 | ||||||||||||||||||||||||||||||||
Interest income | 45,799 | 378,307 | |||||||||||||||||||||||||||||||
Loan facility term | 24 months | ||||||||||||||||||||||||||||||||
Proceeds from additional line of credit | $ 2,926,000 | ||||||||||||||||||||||||||||||||
Contributed amount | $ 19,146,741 | ||||||||||||||||||||||||||||||||
SQN PAC [Member] | |||||||||||||||||||||||||||||||||
Promissory note interest rate percentage | 11.10% | ||||||||||||||||||||||||||||||||
Promissory note principal amount | $ 2,650,000 | ||||||||||||||||||||||||||||||||
Promissory note maturity date | Jun. 30, 2020 | ||||||||||||||||||||||||||||||||
Percentage of ownership interest in alpha, a special purpose entity | 67.50% | ||||||||||||||||||||||||||||||||
Loan Note Instrument [Member] | |||||||||||||||||||||||||||||||||
Promissory note interest rate percentage | 18.00% | ||||||||||||||||||||||||||||||||
Promissory note principal amount | $ 1,824,992 | ||||||||||||||||||||||||||||||||
Promissory note maturity date | Nov. 30, 2016 | ||||||||||||||||||||||||||||||||
Interest income | 188,753 | 375,432 | |||||||||||||||||||||||||||||||
Foreign currency exchange rate | 1.1128 | ||||||||||||||||||||||||||||||||
Promissory note maturity date, starting | May 16, 2016 | ||||||||||||||||||||||||||||||||
Proceeds from additional line of credit | $ 56,750 | ||||||||||||||||||||||||||||||||
Loan Note Instrument [Member] | Euro [Member] | |||||||||||||||||||||||||||||||||
Promissory note principal amount | $ 1,640,000 | ||||||||||||||||||||||||||||||||
Third Party [Member] | |||||||||||||||||||||||||||||||||
Interest income | 72,724 | 144,648 | |||||||||||||||||||||||||||||||
Partnership One [Member] | |||||||||||||||||||||||||||||||||
Promissory note interest rate percentage | 12.00% | ||||||||||||||||||||||||||||||||
Loan facility maximum borrowing capacity | $ 1,845,655 | ||||||||||||||||||||||||||||||||
Interest income | 50,124 | 99,697 | |||||||||||||||||||||||||||||||
Loan facility term | 24 months | ||||||||||||||||||||||||||||||||
Partnership Two [Member] | |||||||||||||||||||||||||||||||||
Promissory note interest rate percentage | 12.00% | ||||||||||||||||||||||||||||||||
Loan facility maximum borrowing capacity | $ 2,215,270 | ||||||||||||||||||||||||||||||||
Interest income | $ 66,276 | $ 131,824 | |||||||||||||||||||||||||||||||
Loan facility term | 24 months | ||||||||||||||||||||||||||||||||
Partnership Three [Member] | |||||||||||||||||||||||||||||||||
Promissory note interest rate percentage | 10.00% | 10.00% | |||||||||||||||||||||||||||||||
Loan facility maximum borrowing capacity | $ 78,095 | $ 78,912 | $ 291,919 | $ 1,759,570 | $ 854,390 | $ 300,846 | $ 181,598 | $ 1,817,444 | |||||||||||||||||||||||||
Interest income | $ 256,359 | $ 432,243 | |||||||||||||||||||||||||||||||
Juliet [Member] | |||||||||||||||||||||||||||||||||
Loan facility maximum borrowing capacity | $ 314,753 | $ 1,825,656 | $ 814,320 | $ 1,463,260 | $ 3,985,959 | ||||||||||||||||||||||||||||
General Partner [Member] | |||||||||||||||||||||||||||||||||
Percentage of ownership interest in alpha, a special purpose entity | 32.50% | ||||||||||||||||||||||||||||||||
Partnership [Member] | |||||||||||||||||||||||||||||||||
Promissory note principal amount | $ 2,497,400 | $ 370,187 | |||||||||||||||||||||||||||||||
Loan facility maximum borrowing capacity | $ 2,389,041 | ||||||||||||||||||||||||||||||||
July 29, 2017 [Member] | Loan Note Instrument [Member] | |||||||||||||||||||||||||||||||||
Promissory note principal amount | $ 1,574,724 | ||||||||||||||||||||||||||||||||
Loan Participation Agreement [Member] | |||||||||||||||||||||||||||||||||
Promissory note interest rate percentage | 61.80% | ||||||||||||||||||||||||||||||||
Surplus note interest | 5.00% | ||||||||||||||||||||||||||||||||
Promissory note principal amount | $ 2,225,000 | ||||||||||||||||||||||||||||||||
Promissory note maturity date | Feb. 25, 2018 | ||||||||||||||||||||||||||||||||
Loan facility maximum borrowing capacity | $ 1,495,313 | ||||||||||||||||||||||||||||||||
Interest income | 42,888 | ||||||||||||||||||||||||||||||||
Loan Participation Agreement [Member] | July 7, 2017 [Member] | |||||||||||||||||||||||||||||||||
Promissory note interest rate percentage | 12.00% | ||||||||||||||||||||||||||||||||
Wholesale Financing Arrangement [Member] | |||||||||||||||||||||||||||||||||
Loan facility maximum borrowing capacity | $ 256,987 | ||||||||||||||||||||||||||||||||
Loan Agreement [Member] | |||||||||||||||||||||||||||||||||
Promissory note principal amount | $ 2,000,000 | ||||||||||||||||||||||||||||||||
Promissory note maturity date | Dec. 30, 2024 | Dec. 28, 2020 | |||||||||||||||||||||||||||||||
Interest income | 55,000 | 110,000 | |||||||||||||||||||||||||||||||
Payment of facility | $ 452,604 | ||||||||||||||||||||||||||||||||
Loan Agreement [Member] | Borrower [Member] | Promissory Note [Member] | |||||||||||||||||||||||||||||||||
Promissory note interest rate percentage | 20.00% | ||||||||||||||||||||||||||||||||
Promissory note principal amount | $ 1,763,230 | ||||||||||||||||||||||||||||||||
Promissory note maturity date | Feb. 8, 2020 | ||||||||||||||||||||||||||||||||
Interest income | 71,571 | 143,142 | |||||||||||||||||||||||||||||||
Payment of facility | $ 335,644 | ||||||||||||||||||||||||||||||||
Participation Agreement [Member] | Alpha Participation A [Member] | |||||||||||||||||||||||||||||||||
Promissory note interest rate percentage | 9.00% | ||||||||||||||||||||||||||||||||
Promissory note principal amount | $ 1,788,750 | ||||||||||||||||||||||||||||||||
Participation Agreement [Member] | Alpha Participation B [Member] | |||||||||||||||||||||||||||||||||
Promissory note interest rate percentage | 15.05% | ||||||||||||||||||||||||||||||||
Promissory note principal amount | $ 861,250 | ||||||||||||||||||||||||||||||||
Interest income | $ 32,603 | $ 64,848 | |||||||||||||||||||||||||||||||
Syndicated Loan Agreement [Member] | |||||||||||||||||||||||||||||||||
Payment of facility | $ 2,610,959 | ||||||||||||||||||||||||||||||||
Borrowing amount | $ 40,000,000 | ||||||||||||||||||||||||||||||||
Contributed amount | $ 5,000,000 |
Investment in Informage SQN T45
Investment in Informage SQN Technologies LLC (Details Narrative) - USD ($) | Aug. 01, 2014 | Jun. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Percentage of ownership | 20.00% | 20.00% | ||
Informage SQN [Member] | ||||
Advances | $ 1,357,622 | |||
Return of capital | $ 690,936 | |||
Investment loss | $ 5,970 | $ 11,940 | ||
Partnership investment balance | $ 532,249 | $ 532,249 | ||
Informage SQN [Member] | Third Party [Member] | ||||
Percentage of ownership | 51.00% | |||
Additional capital contributions | $ 3,850,000 | |||
SQN PAC [Member] | Informage SQN [Member] | ||||
Percentage of ownership | 24.50% |
Equipment Investment through 46
Equipment Investment through SPV (Details Narrative) | Dec. 16, 2015USD ($)Container | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) |
Percentage of acquired interest | 20.00% | 20.00% | |||
Ship management fees and charter commissions fees | $ 872,167 | ||||
Depreciation expense | $ 726,000 | 1,451,000 | |||
Interest expense | 1,238,861 | $ 755,153 | 2,534,516 | $ 1,312,115 | |
CONT Feeder [Member] | |||||
Income | 3,672,000 | 7,037,000 | |||
Charter rental fees | 4,830,000 | 9,607,000 | |||
Ship operating expenses | 2,311,000 | 4,703,000 | |||
Ship management fees and charter commissions fees | 508,000 | 920,000 | |||
General and administrative expenses | 1,041,000 | 2,052,000 | |||
Depreciation expense | 726,000 | 1,451,000 | |||
Interest expense | 244,000 | 481,000 | |||
Net loss | 1,158,000 | 2,570,000 | |||
SQN Marine, LLC [Member] | |||||
Acquisition of interest in assignment description | Marine acquired an 88.20% (90% of 98%) economic interest in a portfolio of container feeder vessels. | ||||
Percentage of acquired interest | 88.20% | ||||
SQN Marine, LLC [Member] | CONT Feeder [Member] | |||||
Number of container feeders vessels | Container | 6 | ||||
Payment to acquire equipment investment | $ 37,911,665 | ||||
Drydocking fees | 4,158,807 | 2,808,807 | |||
Inventory supplies | 337,923 | 273,140 | 273,140 | ||
Investment | $ 42,408,395 | 38,012,103 | 38,012,103 | ||
SQN Marine, LLC [Member] | Feeder Vessels [Member] | |||||
Investment | $ 34,930,156 | $ 34,930,156 |
Other Assets (Details Narrative
Other Assets (Details Narrative) | Jun. 30, 2017USD ($) |
Partnership's Equipment Investment through SPV [Member] | |
Other assets receivable | $ 1,620,000 |
Equipment Notes Payable (Detail
Equipment Notes Payable (Details Narrative) | 1 Months Ended | |||
Jan. 31, 2017USD ($)Leases | Jun. 30, 2017USD ($)Leases | Dec. 31, 2016USD ($) | Nov. 04, 2016USD ($) | |
Debt face amount | $ 4,148,419 | $ 4,148,419 | $ 7,000,000 | |
Equipment notes payable, non-recourse | 84,247 | |||
SQN Helo [Member] | ||||
Debt face amount | $ 3,669,521 | |||
Number of leases | Leases | 3 | 4 | ||
Repayment of debt | $ 3,325,506 |
Loans Payable (Details Narrativ
Loans Payable (Details Narrative) - USD ($) | May 05, 2016 | Jun. 30, 2017 | Dec. 31, 2016 | Nov. 04, 2016 | Apr. 22, 2016 |
Loan facility | $ 4,148,419 | $ 4,148,419 | $ 7,000,000 | ||
Interest rate | 12.00% | ||||
Proceeds from line of credit | $ 2,926,000 | ||||
Loan payable | 65,044,182 | $ 60,589,483 | |||
SQN Helo [Member] | |||||
Loan facility | $ 3,669,521 | ||||
Interest rate | 7.00% | ||||
Loan payable | $ 9,245,578 | ||||
SQN Helo [Member] | PIK Interest [Member] | |||||
Interest rate | 3.50% | ||||
Maturity date | Jan. 6, 2022 | ||||
CONT Feeder [Member] | |||||
Proceeds from related party debt | $ 14,375,654 | ||||
Maturity date | Dec. 16, 2020 | ||||
SQN Juliet, LLC [Member] | Third Party Affiliate [Member] | |||||
Borrowings | $ 14,621,000 | ||||
Loan facility | 2,124,000 | ||||
Loan facility, cash | 8,511,000 | ||||
Loan facility, interest | $ 3,986,000 | ||||
Interest rate | 6.00% | ||||
SQN Juliet, LLC [Member] | Third Party Affiliate [Member] | PIK Interest [Member] | |||||
Interest rate | 1.50% | ||||
CONT Feeder [Member] | |||||
Interest rate | 10.00% | ||||
Loan payable | $ 11,189,101 | ||||
CONT Feeder [Member] | Third Party Affiliate [Member] | |||||
Proceeds from related party debt | 9,604,091 | ||||
CONT Feeder [Member] | Third Party [Member] | |||||
Proceeds from related party debt | $ 7,500,000 |
Fair Value of Financial Instr50
Fair Value of Financial Instruments - Schedule of Carrying Value of Financial Instruments (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Equipment notes receivable | $ 19,313,106 | $ 31,181,356 |
Collateralized loan receivable | 36,563,142 | 29,357,856 |
Loans payable | 65,044,182 | 60,589,483 |
Carrying Value [Member] | ||
Equipment notes receivable | 19,091,362 | 31,107,975 |
Collateralized loan receivable | 34,344,665 | 28,265,033 |
Loans payable | 65,044,182 | 60,589,483 |
Fair Value [Member] | ||
Equipment notes receivable | 19,091,362 | 31,107,975 |
Collateralized loan receivable | 34,344,665 | 28,265,033 |
Loans payable | $ 65,044,182 | $ 60,589,483 |
Business Concentrations (Detail
Business Concentrations (Details Narrative) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Rental Income Operating Leases [Member] | Lessee #1 [Member] | ||
Concentration risk percentage | 50.00% | 100.00% |
Rental Income Operating Leases [Member] | Lessee #2 [Member] | ||
Concentration risk percentage | 48.00% | |
Investment in Finance Leases [Member] | Lessee #1 [Member] | ||
Concentration risk percentage | 36.00% | 36.00% |
Investment in Finance Leases [Member] | Lessee #2 [Member] | ||
Concentration risk percentage | 34.00% | 17.00% |
Investment in Finance Leases [Member] | Lessee #3 [Member] | ||
Concentration risk percentage | 23.00% | 16.00% |
Investment in Finance Leases [Member] | Lessee #4 [Member] | ||
Concentration risk percentage | 11.00% | |
Interest Income [Member] | Lessee #1 [Member] | ||
Concentration risk percentage | 16.00% | 22.00% |
Interest Income [Member] | Lessee #2 [Member] | ||
Concentration risk percentage | 14.00% | 17.00% |
Interest Income [Member] | Lessee #3 [Member] | ||
Concentration risk percentage | 14.00% | 10.00% |
Interest Income [Member] | Lessee #4 [Member] | ||
Concentration risk percentage | 14.00% | |
Investment In Finance Leases [Member] | Lessee #1 [Member] | ||
Concentration risk percentage | 23.00% | 29.00% |
Investment In Finance Leases [Member] | Lessee #2 [Member] | ||
Concentration risk percentage | 21.00% | 26.00% |
Investment In Finance Leases [Member] | Lessee #3 [Member] | ||
Concentration risk percentage | 17.00% | 15.00% |
Investment In Finance Leases [Member] | Lessee #4 [Member] | ||
Concentration risk percentage | 11.00% | 11.00% |
Investment In Finance Leases [Member] | Lessee #5 [Member] | ||
Concentration risk percentage | 10.00% | |
Investment in operating Leases [Member] | Lessee #1 [Member] | ||
Concentration risk percentage | 71.00% | 100.00% |
Investment in operating Leases [Member] | Lessee #2 [Member] | ||
Concentration risk percentage | 29.00% | |
Investment in Equipment Notes Receivable [Member] | Lessee #1 [Member] | ||
Concentration risk percentage | 35.00% | 29.00% |
Investment in Equipment Notes Receivable [Member] | Lessee #2 [Member] | ||
Concentration risk percentage | 30.00% | 24.00% |
Investment in Equipment Notes Receivable [Member] | Lessee #3 [Member] | ||
Concentration risk percentage | 16.00% | 11.00% |
Investment in Equipment Notes Receivable [Member] | Lessee #4 [Member] | ||
Concentration risk percentage | 11.00% | |
Investment In Collateralized Loans Receivable [Member] | Lessee #1 [Member] | ||
Concentration risk percentage | 29.00% | 33.00% |
Investment In Collateralized Loans Receivable [Member] | Lessee #2 [Member] | ||
Concentration risk percentage | 17.00% | 21.00% |
Investment In Collateralized Loans Receivable [Member] | Lessee #3 [Member] | ||
Concentration risk percentage | 14.00% | 14.00% |
Investment In Collateralized Loans Receivable [Member] | Lessee #4 [Member] | ||
Concentration risk percentage | 13.00% | |
Investment In Collateralized Loans Receivable [Member] | Lessee #5 [Member] | ||
Concentration risk percentage | 11.00% | |
Investment in Residual Value Leases [Member] | Lessee #1 [Member] | ||
Concentration risk percentage | 100.00% | 100.00% |
Geographic Information - Schedu
Geographic Information - Schedule of Geographic Information for Revenue (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Rental income | $ 498,809 | $ 81,116 | $ 1,010,276 | $ 162,232 |
Finance income | 473,785 | 308,436 | 1,031,446 | 464,278 |
Interest income | 1,234,232 | 1,135,132 | 2,748,696 | 1,733,178 |
Investment loss from equity method investments | (5,970) | (28,050) | (11,940) | (92,584) |
Gain on sale of assets | 15,386 | 263,023 | ||
Income from equipment investment through SPV | 3,672,537 | 4,365,368 | 7,037,186 | 8,672,193 |
United States [Member] | ||||
Rental income | 498,809 | 81,116 | 1,010,276 | 162,232 |
Finance income | 441,583 | 273,429 | 965,141 | 392,248 |
Interest income | 1,234,232 | 1,135,126 | 2,748,696 | 1,726,440 |
Investment loss from equity method investments | (5,970) | (28,050) | (11,940) | (92,584) |
Gain on sale of assets | 15,386 | 120,601 | ||
Income from equipment investment through SPV | ||||
Europe [Member] | ||||
Rental income | ||||
Finance income | 32,202 | 35,007 | 66,305 | 72,030 |
Interest income | 6 | 6,738 | ||
Investment loss from equity method investments | ||||
Gain on sale of assets | 142,422 | |||
Income from equipment investment through SPV | 3,672,537 | 4,365,368 | 7,037,186 | 8,672,193 |
Mexico [Member] | ||||
Rental income | ||||
Finance income | ||||
Interest income | ||||
Investment loss from equity method investments | ||||
Gain on sale of assets | ||||
Income from equipment investment through SPV |
Geographic Information - Sche53
Geographic Information - Schedule of Geographic Information for Long-lived Assets (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Investments in finance leases, net | $ 7,220,063 | $ 7,746,800 |
Investments in equipment subject to operating leases, net | 8,720,949 | 356,703 |
Equipment notes receivable, including accrued interest | 19,313,106 | 31,181,356 |
Equipment investment through SPV | 38,012,103 | 39,491,553 |
Collateralized loan receivable, including accrued interest | 36,563,142 | 29,357,856 |
United States [Member] | ||
Investments in finance leases, net | 6,891,981 | 7,401,219 |
Investments in equipment subject to operating leases, net | 8,720,949 | 356,703 |
Equipment notes receivable, including accrued interest | 14,258,686 | 20,613,049 |
Equipment investment through SPV | ||
Collateralized loan receivable, including accrued interest | 7,429,739 | 6,187,165 |
Europe [Member] | ||
Investments in finance leases, net | 328,082 | 345,581 |
Investments in equipment subject to operating leases, net | ||
Equipment notes receivable, including accrued interest | 2,011,073 | 7,524,960 |
Equipment investment through SPV | 38,012,103 | 39,491,553 |
Collateralized loan receivable, including accrued interest | 18,397,928 | 17,646,328 |
Mexico [Member] | ||
Investments in finance leases, net | ||
Investments in equipment subject to operating leases, net | ||
Equipment notes receivable, including accrued interest | 3,043,347 | 3,043,347 |
Equipment investment through SPV | ||
Collateralized loan receivable, including accrued interest | $ 10,735,475 | $ 5,524,364 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) | Jul. 21, 2017USD ($) |
Subsequent Event [Member] | Juliet [Member] | |
Secured financing, amount | $ 3,339,148 |