ICON ECI Fund Sixteen 10-Q 14 Aug 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	6 Months Ended
	Jun. 30, 2014	Aug. 08, 2014	Aug. 08, 2014
		Common Class A [Member]	Common Class I [Member]
Class of Shares [Line Items]	'	'	'
Entity Common Stock, Shares Outstanding	'	14,317	369
Entity Registrant Name	'ICON ECI Fund Sixteen	'	'
Entity Central Index Key	'0001561679	'	'
Current Fiscal Year End Date	'--12-31	'	'
Entity Well-known Seasoned Issuer	'No	'	'
Entity Voluntary Filers	'No	'	'
Entity Current Reporting Status	'Yes	'	'
Entity Filer Category	'Smaller Reporting Company	'	'
Document Fiscal Year Focus	'2014	'	'
Document Fiscal Period Focus	'Q2	'	'
Amendment Flag	'false	'	'
Document Type	'10-Q	'	'
Document Period End Date	30-Jun-14	'	'
Entity public float	$0	'	'

Consolidated_Balance_Sheets_un

Consolidated Balance Sheets (unaudited) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Assets	'	'
Cash	$7,446,362	$1,027,327
Investment in joint ventures	5,225,748	897,996
Other assets	11,293	18,693
Total assets	12,683,403	1,944,016
Liabilities:	'	'
Due to Investment Manager and affiliates	730,098	105,564
Accrued expenses and other liabilities	415,680	92,513
Total liabilities	1,145,778	198,077
Class of Shares [Line Items]	'	'
Total shareholders' capital	11,537,625	1,745,939
Total liabilities and equity	12,683,403	1,944,016
Class A	'	'
Class of Shares [Line Items]	'	'
Common stock value	11,354,857	1,693,429
Class I	'	'
Class of Shares [Line Items]	'	'
Common stock value	$182,768	$52,510

Consolidated_Statement_of_Oper

Consolidated Statement of Operations (unaudited) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Mar. 31, 2014	Jun. 30, 2014
Revenue:	'	'	'
Income from investment in joint venture	$133,774	$133,774	$199,005
Total revenue	133,774	133,774	199,005
Expenses:	'	'	'
Management fees	22,087	22,087	34,373
Administrative expense reimbursements	151,480	151,480	327,073
General and administrative	99,680	99,680	154,502
Interest	5,765	5,765	9,930
Organization costs	2,401	2,401	5,575
Total expenses	281,413	281,413	531,453
Net loss	-147,639	-184,809	-332,448
Net loss attributable to Fund Sixteen allocable to:	'	'	'
Additional Class A and I shareholders	-146,162	-146,162	-329,123
Managing Owner	-1,477	-1,477	-3,325
Net loss attributable to Fund Sixteen	-147,639	-147,639	-332,448
Net loss attributable to Fund Sixteen allocable to additional Class A shareholders	-143,841	'	-324,502
Weighted average number of Class A shares outstanding	10,645	10,645.06	7,864
Net loss attributable to Fund Sixteen per weighted average additional Class A share	($13.51)	($13.51)	($41.26)
Net loss attributable to Fund Sixteen allocable to additional Class I shareholders	($2,321)	'	($4,621)
Weighted average number of Class I shares outstanding	174	174.21	120
Net loss attributable to Fund Sixteen per weighted average Class I share	($13.32)	($13.32)	($38.62)

Consolidated_Statement_of_Chan

Consolidated Statement of Changes in Equity (USD $)	Total	Managing Owner	Additional Class A Shareholders	Class I additional shareholders	Total Partners Equity [Member]
Balance at Dec. 31, 2013	$1,745,939	($1,161)	$1,694,590	$52,510	$1,693,429
Balance (in shares) at Dec. 31, 2013	2,081	0.001	2,016	65	2,016
Increase (decrease) in equity [Roll Forward]	'	'	'	'	'
Net loss	-184,809	-1,848	-180,661	-2,300	-182,509
Proceeds from sale of shares	5,968,452	'	5,968,452	'	5,968,452
Proceeds from sale of limited partnership interests (in shares)	6,005	'	6,005	'	6,005
Sales and offering expenses	-588,693	'	-587,385	-1,308	-587,385
Distributions	-62,422	-625	-60,524	-1,273	-61,149
Balance (unaudited) at Mar. 31, 2014	6,878,467	-3,634	6,834,472	47,629	6,830,838
Balance (unaudited) (in shares) at Mar. 31, 2014	8,086	0.001	8,021	65	8,021
Increase (decrease) in equity [Roll Forward]	'	'	'	'	'
Net loss	-147,639	-1,477	-143,841	-2,321	-145,318
Proceeds from sale of shares	5,569,139	'	5,422,039	147,100	5,422,039
Proceeds from sale of limited partnership interests (in shares)	5,616	'	5,458	158	5,458
Sales and offering expenses	-548,050	'	-541,813	-6,237	-541,813
Distributions	-214,292	-1,834	-209,055	-3,403	-210,889
Balance (unaudited) at Jun. 30, 2014	$11,537,625	($6,945)	$11,361,802	$182,768	$11,354,857
Balance (unaudited) (in shares) at Jun. 30, 2014	13,702	0.001	13,479	223	13,479

Consolidated_Statement_of_Cash

Consolidated Statement of Cash Flows (unaudited) (USD $)	6 Months Ended
	Jun. 30, 2014
Cash flows from operating activities:	'
Net loss	($332,448)
Adjustments to reconcile net loss to net cash used in operating activities:	'
Income from investment in joint ventures	-199,005
Interest expense from amortization of debt financing costs	7,400
Interest expense, other	2,529
Due to Investment Manager and affiliates	409,662
Accrued expenses and other liabilities	31,234
Distributions from joint ventures	179,389
Net cash provided by operating activities	98,761
Cash flows from investing activities:	'
Investment in joint venture	-4,904,295
Distributions received from joint venture in excess of profit	697,683
Net cash used in investing activities	-4,206,612
Cash flows from financing activities:	'
Sale of Class A and Class I shares	11,537,591
Sales commissions and dealer-manager fees	-736,112
Distributions to shareholders	-274,593
Net cash provided by financing activities	10,526,886
Net increase in cash	6,419,035
Cash, beginning of period	1,027,327
Cash, end of period	7,446,362
Supplemental disclosure of non-cash investing and financing activities:	'
Offering expenses charged to equity	105,921
Distribution fees payable to dealer-manager	5,323
Distribution payable to Managing Owner	2,121
Sales commission trial payable to third parties	289,404
Acquisition fee payable to Investment Manager	$101,524

Organization

Organization	6 Months Ended
	Jun. 30, 2014
Organization [Abstract]	'
Organization	'
	(1) Organization
	ICON ECI Fund Sixteen (the “Fund”) was formed on October 11, 2012 as a Delaware statutory trust. When used in these notes to financial statements, the terms “we,” “us,” “our” or similar terms refer to the Fund.
	We are a direct financing fund that primarily makes investments in or that are collateralized by equipment and other corporate infrastructure (collectively, “Capital Assets”). The investments are in companies that utilize Capital Assets to operate their businesses. These investments are primarily structured as debt and debt-like financings such as loans, leases and other structured financing transactions in or that are collateralized by Capital Assets that ICON MT 16, LLC, a Delaware limited liability company and our managing owner (the “Managing Owner”), believes will provide us with a satisfactory, risk-adjusted rate of return. Our Managing Owner makes investment decisions on our behalf and manages our business.
	Our investment objectives are to preserve investors’ capital, provide distributions and provide a favorable total return. To meet our investment objectives, we will use the net proceeds from our offering to originate or acquire a diverse pool of investments described above, as well as other strategic investments collateralized by Capital Assets. ICON Capital, LLC, a Delaware limited liability company and our affiliate, is our investment manager (the “Investment Manager”). Our Investment Manager originates and services our investments. Wilmington Trust, National Association (the “Trustee”) serves as our sole trustee pursuant to our Third Amended and Restated Trust Agreement (the “Trust Agreement”). The Trustee delegated to the Managing Owner all of the power and authority to manage our business and affairs and has only nominal duties and liabilities to us.
	Our offering period commenced on July 1, 2013. We are offering to sell to the public any combination of two classes of shares, Class A shares and Class I shares (collectively, the “Shares”), on a “best efforts” basis with the intention of raising up to $250,000,000 of capital, of which $9,000,000 has been reserved for issuance pursuant to our distribution reinvestment plan (the “DRIP”). Other than differing allocable fees and expenses, Class A shares and Class I shares have identical rights and privileges, such as identical voting and distribution rights. We reserve the right to reallocate the offering amount between the primary offering and the DRIP.
	As of November 12, 2013 (the “Initial Closing Date”), we raised a minimum of $1,200,000 from the sale of our Shares, at which time shareholders were admitted and we commenced operations. As of June 13, 2014, we raised the $12,500,000 minimum offering amount for the Commonwealth of Pennsylvania. From the commencement of our offering period on July 1, 2013 through June 30, 2014, we sold 13,479 Class A shares to 254 Class A shareholders and 223 Class I shares to three Class I shareholders, representing an aggregate of $13,608,485 of capital contributions.  From July 1, 2013 through June 30, 2014, we incurred sales commissions to third parties of $941,806 and dealer-manager and distribution fees in the amount of $272,613 to ICON Securities, LLC, formerly known as ICON Securities Corp., the dealer-manager of our offering and an affiliate of our Investment Manager (“ICON Securities”). In addition, organization costs of $6,744 and offering expenses of $124,854 were incurred by us during such period and are included in due to Investment Manager and affiliates on our balance sheets. Organization costs are expensed when incurred and offering expenses are recorded as a reduction of shareholders’ equity.

Summary_of_Significant_Account

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2014
Summary of Significant Accounting Policies [Abstract]	'
Summary of Significant Accounting Policies	'
	(2) Summary of Significant Accounting Policies
	Basis of Presentation
	Our accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission for Quarterly Reports on Form 10-Q. In the opinion of our Managing Owner, all adjustments, which are of a normal recurring nature, considered necessary for a fair presentation have been included.  These financial statements should be read together with the financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2013. The results for the interim period are not necessarily indicative of the results for the full year.
	Credit Quality of Notes Receivable and Finance Leases and Credit Loss Reserve
	Our Investment Manager weighs all credit decisions based on a combination of external credit ratings as well as internal credit evaluations of all borrowers. A borrower’s credit is analyzed using those credit ratings as well as the borrower’s financial statements and other financial data deemed relevant.
	As our financing receivables, generally notes receivable and finance leases (including financing receivables held by our joint ventures) are limited in number, our Investment Manager is able to estimate the credit loss reserve based on a detailed analysis of each financing receivable as opposed to using portfolio-based metrics. Financing receivables are analyzed quarterly and categorized as either performing or non-performing based on payment history. If a financing receivable becomes non-performing due to a borrower’s missed scheduled payments or failed financial covenants, our Investment Manager analyzes whether a credit loss reserve should be established or whether the financing receivable should be restructured. Material events would be specifically disclosed in the discussion of each financing receivable held.
	Financing receivables are generally placed in a non-accrual status when payments are more than 90 days past due. Additionally, our Investment Manager periodically reviews the creditworthiness of companies with payments outstanding less than 90 days and based upon our Investment Manager’s judgment, these accounts may be placed in a non-accrual status.
	In accordance with the cost recovery method, payments received on non-accrual financing receivables are applied to principal if there is doubt regarding the ultimate collectability of principal. If collection of the principal of non-accrual financing receivables is not in doubt, interest income is recognized on a cash basis. Financing receivables in non-accrual status may not be restored to accrual status until all delinquent payments have been received, and we believe recovery of the remaining unpaid receivable is probable.
	When our Investment Manager deems it is probable that we will not be able to collect all contractual principal and interest on a non-performing financing receivable, we perform an analysis to determine if a credit loss reserve is necessary. This analysis considers the estimated cash flows from the financing receivable, or the collateral value of the asset underlying the financing receivable when financing receivable repayment is collateral dependent. If it is determined that the impaired value of the non-performing financing receivable is less than the net carrying value, we will recognize a credit loss reserve or adjust the existing credit loss reserve with a corresponding charge to earnings. We then charge off a financing receivable in the period that it is deemed uncollectible by reducing the credit loss reserve and the balance of the financing receivable.
	Recent Accounting Pronouncements
	In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), requiring revenue to be recognized in an amount that reflects the consideration expected to be received in exchange for goods and services. The adoption of ASU 2014-09 becomes effective for us on January 1, 2017, including interim periods within that reporting period. Early adoption is not permitted.  We are currently in the process of evaluating the impact of the adoption of ASU 2014-09 on our financial statements.

Investment_in_Joint_Ventures

Investment in Joint Ventures	6 Months Ended
	Jun. 30, 2014
Investment in Joint Ventures	'
Investment in Joint Ventures	'
	(3) Investment in Joint Ventures
	On September 12, 2013, a joint venture owned by us, ICON Leasing Fund Eleven, LLC (“Fund Eleven”) and ICON Leasing Fund Twelve, LLC (“Fund Twelve”), each an entity also managed by our Investment Manager, purchased mining equipment for approximately $15,107,000. The equipment is subject to a 24-month lease with Murray Energy Corporation and certain of its affiliates (collectively, “Murray”), which expires on September 30, 2015. On December 1, 2013 and February 1, 2014, we contributed capital of approximately $934,000 and $1,726,000, respectively, to the joint venture, inclusive of acquisition fees. Subsequent to our second capital contribution, the joint venture is owned 19.8% by us, 67.0% by Fund Eleven and 13.2% by Fund Twelve.
	On March 4, 2014, a joint venture owned 10% by us, 60% by Fund Twelve, 15% by ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P. (“Fund Fourteen”) and 15% by ICON ECI Fund Fifteen, L.P. (“Fund Fifteen”), each an entity also managed by our Investment Manager, purchased mining equipment from an affiliate of Blackhawk Mining, LLC (“Blackhawk”). Simultaneously, the mining equipment was leased to Blackhawk and its affiliates for four years. The aggregate purchase price for the mining equipment of approximately $25,359,000 was funded by approximately $17,859,000 in cash and $7,500,000 of non-recourse long-term debt. Our contribution to the joint venture was approximately $1,796,000.
	On March 28, 2014, a joint venture owned 12.5% by us, 60% by Fund Twelve and 27.5% by Fund Fifteen purchased trucks, trailers and other equipment from subsidiaries of D&T Holdings, LLC (“D&T”) for $12,200,000. Simultaneously, the trucks, trailers and other equipment were leased to D&T and its subsidiaries for 57 months. Our contribution to the joint venture was approximately $1,485,000.

Revolving_Line_of_Credit_Recou

Revolving Line of Credit, Recourse	6 Months Ended
	Jun. 30, 2014
Revolving Line of Credit, Recourse [Abstract]	'
Revolving Line of Credit, Recourse	'
	(4) Revolving Line of Credit, Recourse
	On December 26, 2013, we entered into an agreement with California Bank & Trust (“CB&T”) for a revolving line of credit through March 31, 2015 of up to $5,000,000 (the “Facility”), which is secured by all of our assets not subject to a first priority lien. The interest rate for general advances under the Facility is CB&T’s prime rate. We may elect to designate up to five advances on the outstanding principal balance of the Facility to bear interest at the London Interbank Offered Rate (“LIBOR”) plus 2.5% per year. In all instances, borrowings under the Facility are subject to an interest rate floor of 4.0% per year. In addition, we are obligated to pay an annualized 0.5% fee on unused commitments under the Facility. At June 30, 2014, there were no obligations outstanding under the Facility and we were in compliance with all covenants related to the Facility. Amounts available under the Facility are subject to a borrowing base that is determined, subject to certain limitations, by the present value of the future receivables under certain loans and lease agreements in which we have a beneficial interest. At June 30, 2014, we had $0 available under the Facility pursuant to the borrowing base.

Transactions_with_Related_Part

Transactions with Related Parties	6 Months Ended
	Jun. 30, 2014
Transactions with Related Parties [Abstract]	'
Transactions with Related Parties	'
	(5) Transactions with Related Parties
	We have entered into certain agreements with our Investment Manager and ICON Securities whereby we pay certain fees and reimbursements to these parties. We will pay ICON Securities (i) a dealer-manager fee for Class A shares sold in the offering equal to 2% of gross offering proceeds from sales of such Class A shares for managing the offering and to reimburse the dealer-manager for wholesaling fees and expenses and (ii) a distribution fee equal to 0.55% of gross offering proceeds from Class I shares sold in the offering for managing the distribution of the Class I shares. We will continue to pay the distribution fee with respect to the Class I shares sold in the offering until the earlier to occur of: (i) total distribution fees paid with respect to the Class I shares following the completion of the offering equaling 10% of the gross proceeds received with respect to the issuance of such shares from the primary portion of the offering or (ii) our entry into our wind down period. The distribution fee will be paid monthly in arrears. No dealer-manager or distribution fees will be paid on any Shares sold pursuant to the DRIP.
	Our Managing Owner also has a 1% interest in our profits, losses, distributions and liquidation proceeds, subject to increase based on our investors achieving a preferred return. In addition, our Investment Manager and its affiliates will be reimbursed for organization and offering expenses incurred in connection with our organization and offering of Shares and administrative expenses incurred in connection with our operations. The reimbursement of organization and offering expenses will be capped at the lesser of 1.44% of the maximum primary offering amount of $241,000,000 and the actual costs and expenses incurred by our Investment Manager and its affiliates.
	We pay our Investment Manager (i) a management fee of 3.50% of the gross periodic payments due and paid from our investments and (ii) acquisition fees of 2.50% of the total purchase price (including indebtedness incurred or assumed therewith) of, or the value of the Capital Assets secured by or subject to, each of our investments.
	Administrative expense reimbursements are costs incurred by our Investment Manager or its affiliates that are necessary to our operations. These costs include our Investment Manager’s and its affiliates’ legal, accounting, investor relations and operations personnel, as well as professional fees and other costs that are charged to us. Excluded are salaries and related costs, office rent, travel expenses and other administrative costs incurred by individuals with a controlling interest in our Investment Manager.
	We paid or accrued distributions to our Managing Owner of $1,834 and $2,459 for the three and six months ended June 30, 2014, respectively. Additionally, our Managing Owner’s interest in the net loss attributable to us was $1,477 and $3,325 for the three and six months ended June 30, 2014, respectively.
	Fees and other expenses incurred by us to our Investment Manager or its affiliates were as follows:
						Three Months Ended		Six Months Ended
		Entity	Capacity	Description		30-Jun-14		30-Jun-14
		ICON Capital, LLC	Investment Manager	Offering expense
					reimbursements (1)	$	50,002	$	105,921
		ICON Capital, LLC	Investment Manager	Organization cost
					reimbursements (2)		2,401		5,575
		ICON Capital, LLC	Investment Manager	General and administrative
					reimbursements (2)		7,251		41,644
		ICON Capital, LLC	Investment Manager	Management fees (2)			22,087		34,373
		ICON Securities, LLC	Dealer-manager	Dealer-manager fees (1)			106,134		224,901
		ICON Capital, LLC	Investment Manager	Administrative expense
					reimbursements (2)		151,480		327,073
		ICON Capital, LLC	Investment Manager	Acquisition fees (3)			-		101,524
						$	339,355	$	841,011
		(1)  Amount charged directly to shareholders' equity.
		(2)  Amount charged directly to operations.
		(3)  Amount capitalized and amortized to operations.
	At June 30, 2014, we had a net payable of approximately $730,000 due to our Investment Manager and its affiliates that primarily consisted of administrative expense reimbursements of approximately $407,000, offering expenses of approximately $125,000, acquisition fees of approximately $102,000 and general and administrative expense reimbursements of approximately $43,000. At December 31, 2013, we had a net payable of approximately $106,000 due to our Investment Manager and its affiliates that primarily consisted of administrative expense reimbursements of approximately $80,000 and offering expenses of approximately $19,000.
	From July 1, 2014 through August 8, 2014, we raised an additional $969,436 in capital contributions and incurred dealer-manager and distribution fees in the amount of $20,512.

Commitments_and_Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2014
Commitments and Contingencies [Abstract]	'
Commitments and Contingencies	'
	At the time we acquire or divest of our interest in Capital Assets, we may, under very limited circumstances, agree to indemnify the seller or buyer for specific contingent liabilities. Our Managing Owner believes that any liability of ours that may arise as a result of any such indemnification obligations will not have a material adverse effect on our financial condition or results of operations taken as a whole.
	As of June 30, 2014, our Investment Manager and its affiliates incurred organization and offering costs of $1,668,877 on our behalf in accordance with the terms of our Trust Agreement. Of this amount, the Investment Manager has sought reimbursement of $187,615, which is included in due to Investment Manager and affiliates on our balance sheet as of June 30, 2014. Should the Investment Manager seek reimbursement of the remaining $1,481,262, we expect $452,699 to be charged to earnings and $1,028,563 to be charged to shareholders’ equity. The decision to pay organization and offering costs on our behalf and the decision to seek reimbursement for such costs is solely at the discretion of our Investment Manager and its affiliates. Accordingly, we may or may not be required to reimburse any remaining organization and offering expenses that have been or will be incurred by our Investment Manager and its affiliates.