ICON ECI Fund Sixteen 10-Q 10 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 08, 2018
Class of Stock
Entity Registrant Name	ICON ECI Fund Sixteen
Entity Central Index Key	1,561,679
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Type	10-Q
Common Class A
Class of Stock
Entity Common Stock, Shares Outstanding		17,189
Common Class I
Class of Stock
Entity Common Stock, Shares Outstanding		410

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Assets
Cash	$ 2,245,511	$ 4,436,615
Net investment in notes receivable	2,940,041	2,967,571
Investment in joint ventures	2,259,479	2,135,091
Other assets	128,801	55,538
Total assets	7,573,832	9,594,815
Liabilities:
Due to Investment Manager and affiliates, net	79,277	64,397
Accrued expenses and other liabilities	138,120	88,751
Total liabilities	217,397	153,148
Commitments and contingencies (Note 8)
Equity:
Total shareholders' capital	7,354,864	9,440,748
Noncontrolling interests	1,571	919
Total equity	7,356,435	9,441,667
Total liabilities and equity	7,573,832	9,594,815
Class A
Equity:
Shareholders' capital	7,178,461	9,216,243
Total equity	7,178,461	9,216,243
Class I
Equity:
Shareholders' capital	176,403	224,505
Total equity	$ 176,403	$ 224,505

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenue and other income:
Finance income	$ 114,710	$ 183,871
Income from investment in joint ventures	124,388	89,560
Other income	967	389
Total revenue and other income	240,065	273,820
Expenses:
Management fees	0	17,920
Administrative expense reimbursements	105,786	133,773
General and administrative	98,299	128,805
Interest	0	4,900
Total expenses	204,085	285,398
Net income (loss)	35,980	(11,578)
Less: net income attributable to noncontrolling interests	652	31,308
Net income (loss) attributable to Fund Sixteen	35,328	(42,886)
Net income (loss) attributable to Fund Sixteen allocable to:
Additional Class A shareholders and Class I shareholders	34,975	(42,457)
Managing Owner	353	(429)
Net (loss) income attributable to Fund Sixteen	35,328	(42,886)
Additional Class A shares:
Net income (loss) attributable to Fund Sixteen allocable to additional Class A shareholders	$ 34,160	$ (41,531)
Weighted average number of additional Class A shares outstanding (in shares)	17,189	17,189
Net income (loss) attributable to Fund Sixteen per weighted average additional Class A share (USD per share)	$ 1.99	$ (2.42)
Class I shares:
Net income (loss) attributable to Fund Sixteen allocable to Class I shareholders	$ 815	$ (926)
Weighted average number of Class I shares outstanding (in shares)	410	410
Net income (loss) attributable to Fund Sixteen per weighted average Class I share (USD per share)	$ 1.99	$ (2.26)

Consolidated Statement of Chang

Consolidated Statement of Changes in Equity - 3 months ended Mar. 31, 2018 - USD ($)	Total	Noncontrolling Interests	Class A	Class AManaging Owner	Class AAdditional Shareholders	Class I
Balance (in shares) at Dec. 31, 2017	17,599		17,189	0.001	17,189	410
Balance at Dec. 31, 2017	$ 9,441,667	$ 919	$ 9,216,243	$ (65,694)	$ 9,281,937	$ 224,505
Increase (Decrease) in Partners' Capital [Roll Forward]
Net income (unaudited)	35,980	652	34,513	353	34,160	815
Distributions (unaudited)	$ (2,121,212)	0	$ (2,072,295)	$ (21,212)	$ (2,051,083)	$ (48,917)
Balance (in shares) at Mar. 31, 2018	17,599		17,189	0.001	17,189	410
Balance at Mar. 31, 2018	$ 7,356,435	$ 1,571	$ 7,178,461	$ (86,553)	$ 7,265,014	$ 176,403

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net income (loss)	$ 35,980	$ (11,578)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Finance income	(6,991)	(7,125)
Income from investment in joint ventures	(124,388)	(89,560)
Interest expense from amortization of debt financing costs	0	2,162
Interest expense, other	0	2,738
Changes in operating assets and liabilities:
Other assets	(73,263)	(31,349)
Due to Investment Manager and affiliates, net	14,880	(112,306)
Accrued expenses and other liabilities	49,369	(70,947)
Distributions from joint ventures	0	31,198
Net cash used in operating activities	(104,413)	(286,767)
Cash flows from investing activities:
Principal received on finance lease	0	509,092
Principal received on notes receivable	34,521	0
Distributions received from joint ventures in excess of profits	0	70,797
Investment in joint ventures	0	(4,018)
Purchase of interests from noncontrolling interests	0	(501,794)
Net cash provided by investing activities	34,521	74,077
Cash flows from financing activities:
Sales and offering expenses paid	0	(26,180)
Distributions to noncontrolling interests	0	(342,549)
Distributions to shareholders	(2,121,212)	(60,226)
Net cash used in financing activities	(2,121,212)	(428,955)
Net decrease in cash	(2,191,104)	(641,645)
Cash, beginning of period	4,436,615	4,925,909
Cash, end of period	2,245,511	4,284,264
Supplemental disclosure of non-cash investing and financing activities:
Additional paid in capital from purchase of interests from noncontrolling interests	$ 0	$ 3,388

Organization

Organization	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [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 consolidated financial statements, the terms “we,” “us,” “our” or similar terms refer to the Fund and its consolidated subsidiaries. We are a direct financing fund that primarily made investments in or that are collateralized by equipment and other corporate infrastructure (collectively, “Capital Assets”). The investments were in companies that utilize Capital Assets to operate their businesses. These investments were 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 used the net proceeds from our offering and the cash generated from our investments 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 originated and services our investments. Wilmington Trust, National Association (the “Trustee”) serves as our sole trustee pursuant to our Fourth Amended and Restated Trust Agreement (the “Trust Agreement”). The Trustee delegated to our 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 and ended on December 31, 2014. Our Managing Owner determined to cease our offering period earlier than originally anticipated as a result of lower than expected offering proceeds being raised. We offered 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 had 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. 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. Subsequent to the Initial Closing Date, we returned the initial capital contribution of $1,000 to CION Investment Group, LLC (formerly, ICON Investment Group, LLC) (the “Initial Shareholder”). From the commencement of our offering on July 1, 2013 through December 31, 2014, we sold 17,189 Class A shares to 351 Class A shareholders and 410 Class I shares to six Class I shareholders, of which 404 Class A shares and 12 Class I shares were issued pursuant to the DRIP, representing an aggregate of $17,469,610 of capital contributions. From the Initial Closing Date through December 31, 2014, we incurred sales commissions to third parties of $1,198,531 and dealer-manager and distribution fees of $347,547 to CION Securities, LLC, the dealer-manager of our offering and an affiliate of our Investment Manager (“CION Securities”). In addition, organization costs of $8,418 and offering expenses of $161,422 were incurred by us during such period. Organization costs were expensed when incurred and offering expenses were recorded as a reduction of shareholders’ equity. Our operating period commenced on January 1, 2015. On April 24, 2017, we commenced a consent solicitation of our shareholders to further amend and restate our Trust Agreement in order to amend the definition of “operating period” to provide for the ability of our Managing Owner to shorten our operating period in its sole and absolute discretion. The consent solicitation was completed on May 24, 2017 with the requisite consents received from our shareholders. As a result, our Managing Owner ended our operating period on May 31, 2017 and commenced our wind down period on June 1, 2017. During our wind down period, we have sold and will continue to sell our assets and/or let our investments mature in the ordinary course of business. On May 30, 2017, our Investment Manager retained ABN AMRO Securities (USA) LLC (“ABN AMRO Securities”) as its financial advisor to assist our Investment Manager and us in identifying, evaluating and executing a potential sale of certain shipping and offshore energy assets currently included within our investment portfolio. We, however, cannot assure that the identification or evaluation to be performed will result in any specific sale transaction or series of transactions.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	(2) Summary of Significant Accounting Policies Basis of Presentation and Consolidation Our accompanying consolidated 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 (the “SEC”) 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 consolidated financial statements should be read together with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2017. 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 monitors the ongoing credit quality of our financing receivables by (i) reviewing and analyzing a borrower’s financial performance on a regular basis, including review of financial statements received on a monthly, quarterly or annual basis as prescribed in the loan or lease agreement, (ii) tracking the relevant credit metrics of each financing receivable and a borrower’s compliance with financial and non-financial covenants, (iii) monitoring a borrower’s payment history and public credit rating, if available, and (iv) assessing our exposure based on the current investment mix. As part of the monitoring process, our Investment Manager may physically inspect the collateral or a borrower’s facility and meet with a borrower’s management to better understand such borrower’s financial performance and its future plans on an as-needed basis. As our financing receivables, generally notes receivable and finance leases, 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. Our Investment Manager does not use a system of assigning internal risk ratings to each of our financing receivables. Rather, each financing receivable is analyzed quarterly and categorized as either performing or non-performing based on certain factors including, but not limited to, financial results, satisfying scheduled payments and compliance with financial covenants. A financing receivable is usually categorized as non-performing only when a borrower experiences financial difficulties and has failed to make scheduled payments. Our Investment Manager then analyzes whether the financing receivable should be placed on a non-accrual status, a credit loss reserve should be established or the financing receivable should be restructured. As part of the assessment, updated collateral value is usually considered and such collateral value can be based on a third party industry expert appraisal or, depending on the type of collateral and accessibility to relevant published guides or market sales data, internally derived fair value. Material events would be specifically disclosed in the discussion of each financing receivable held. Financing receivables are generally placed on 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 on 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 on 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, and/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. Recently Adopted 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. We adopted ASU 2014-09 on January 1, 2018. Since substantially all of our revenue is recognized from our leasing and lending contracts, which are not subject to ASU 2014-09, the adoption of ASU 2014-09 did not have an effect on our consolidated financial statements. In January 2016, FASB issued ASU No. 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which provides guidance related to accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. As a result of the adoption of ASU 2016-01, we are no longer required to make certain disclosures related to the methods and significant assumptions used to estimate fair value for financial instruments measured at amortized cost. In August 2016, FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows. We adopted ASU 2016-15 on January 1, 2018, which did not have an effect on our consolidated financial statements. We utilize the cumulative earnings approach under ASU 2016-15 to present distributions received from equity-method investees, which is consistent with our previous policy. In November 2016, FASB issued ASU No. 2016-18, Statement of Cash Flows (“ASU 2016-18”), which provides guidance on the presentation of restricted cash or restricted cash equivalents in the statement of cash flows. We adopted ASU 2016-18 on January 1, 2018, which did not have an effect on our consolidated financial statements as we did not have any restricted cash or restricted cash equivalents for the periods presented herein. In January 2017, FASB issued ASU No. 2017-01, Business Combinations (“ASU 2017-01”), which clarifies the definition of a business. ASU 2017-01 sets forth requirements to be met for a set to be deemed a business and establishes a practical way to determine when a set is not a business. To be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create an output, and removes the evaluation of whether a market participant could replace missing elements. In addition, ASU 2017-01 narrows the definition of outputs and aligns such definition with how outputs are described within the revenue guidance. We adopted ASU 2017-01 on January 1, 2018, which did not have an effect on our consolidated financial statements. Other Recent Accounting Pronouncements In February 2016, FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”), which requires lessees to recognize assets and liabilities for leases with lease terms greater than twelve months on the balance sheet and disclose key information about leasing arrangements. ASU 2016-02 implements changes to lessor accounting focused on conforming with certain changes made to lessee accounting and the recently released revenue recognition guidance. The adoption of ASU 2016-02 becomes effective for us on January 1, 2019. Early adoption is permitted. As we no longer have any lease arrangements and since we are in our wind down period and not expecting to enter into any new leases in the future, the adoption of ASU 2016-02 will not have an effect on our consolidated financial statements. In June 2016, FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (“ASU 2016-13”), which modifies the measurement of credit losses by eliminating the probable initial recognition threshold set forth in current guidance, and instead reflects an entity’s current estimate of all expected credit losses. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity will apply the amendments within ASU 2016-13 through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The adoption of ASU 2016-13 becomes effective for us on January 1, 2020, including interim periods within that reporting period. Early adoption is permitted. We are currently in the process of evaluating the impact of the adoption of ASU 2016-13 on our consolidated financial statements.

Net Investment in Notes Receiva

Net Investment in Notes Receivable	3 Months Ended
	Mar. 31, 2018
Receivables [Abstract]
Net Investment in Notes Receivable	(3) Net Investment in Notes Receivable As of March 31, 2018 and December 31, 2017 , we had no net investment in notes receivable on non-accrual status and no net investment in notes receivable that was past due 90 days or more and still accruing. Net investment in notes receivable consisted of the following: March 31, 2018 December 31, 2017 Principal outstanding $ 3,080,400 $ 3,114,921 Deferred fees (140,359 ) (147,350 ) Net investment in notes receivable $ 2,940,041 $ 2,967,571

Investment in Joint Ventures

Investment in Joint Ventures	3 Months Ended
	Mar. 31, 2018
Equity Method Investments and Joint Ventures [Abstract]
Investment in Joint Ventures	(4) Investment in Joint Ventures On March 4, 2014, a joint venture owned 10% by us, 60% by ICON Leasing Fund Twelve Liquidating Trust (formerly, ICON Leasing Fund Twelve, LLC), 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 $ 25,359,446 was funded by $ 17,859,446 in cash and $ 7,500,000 of non-recourse long-term debt. Our contribution to the joint venture was $ 1,795,597 . On July 21, 2017, Blackhawk satisfied its remaining lease obligations by making a prepayment of $7,753,666 . As a result, the joint venture recognized finance income of $353,373 , of which our share was $35,337 . Information as to the results of operations of this joint venture is summarized as follows: Three Months Ended March 31, 2018 2017 Revenue $ — $ 394,766 Net income $ 1,596 $ 308,078 Our share of net income $ 428 $ 31,199 On December 23, 2015, a joint venture owned 10% by us, 75% by Fund Fifteen and 15% by Fund Fourteen, through two indirect subsidiaries, entered into memoranda of agreement to purchase two geotechnical drilling vessels, the Fugro Scout and the Fugro Voyager (collectively, the “Fugro Vessels”), from affiliates of Fugro N.V. (“Fugro”) for an aggregate purchase price of $ 130,000,000 . The aggregate purchase price was funded by the indirect subsidiaries through (i) $ 16,500,000 in cash; (ii) $ 91,000,000 in financing through a senior secured loan from ABN AMRO Bank N.V. (“ABN AMRO”), Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. (“Rabobank”) and NIBC Bank N.V. (“NIBC”); and (iii) seller’s credits of $ 22,500,000 . The Fugro Scout and the Fugro Voyager were delivered on December 24, 2015 and January 8, 2016, respectively. The Fugro Vessels were bareboat chartered to affiliates of Fugro for a period of 12 years upon the delivery of each respective vessel, although such charters can be terminated by the indirect subsidiaries after year five. Our contribution to the joint venture was $ 2,377,250 . In anticipation of a potential breach of a financial covenant by Fugro on December 31, 2017, effective December 29, 2017, the indirect subsidiaries and the affiliates of Fugro amended the bareboat charters on April 6, 2018 to, among other things, amend certain financial covenants, increase the daily charter rate and provide for additional security deposits. Effective December 29, 2017, the indirect subsidiaries also amended the facility agreement with ABN AMRO, Rabobank and NIBC on April 6, 2018 to, among other things, increase the interest rate on the senior secured loans to share the economic benefits of the amended bareboat charters. Information as to the results of operations of this joint venture is summarized as follows: Three Months Ended March 31, 2018 2017 Revenue $ 3,424,652 $ 3,343,484 Net income $ 1,239,601 $ 623,791 Our share of net income $ 123,960 $ 62,379

Revolving Line of Credit, Recou

Revolving Line of Credit, Recourse	3 Months Ended
	Mar. 31, 2018
Line of Credit Facility [Abstract]
Revolving Line of Credit, Recourse	(5) Revolving Line of Credit, Recourse We had an agreement with California Bank & Trust (“CB&T”) for a revolving line of credit through May 30, 2017 of up to $ 5,000,000 (the “Facility”), which was secured by all of our assets not subject to a first priority lien. Amounts available under the Facility were subject to a borrowing base that was determined, subject to certain limitations, by the present value of the future receivables under certain loans and lease agreements in which we had a beneficial interest. The interest rate for general advances under the Facility was CB&T’s prime rate. We could have elected 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 were subject to an interest rate floor of 4.0% per year. In addition, we were obligated to pay an annualized 0.5% fee on unused commitments under the Facility. The Facility expired in accordance with its terms on May 30, 2017. There were no obligations outstanding under the Facility on the expiration date. For the three months ended March 31, 2017, we recognized interest expense of $ 2,162 related to the amortization of debt financing costs.

Transactions with Related Parti

Transactions with Related Parties	3 Months Ended
	Mar. 31, 2018
Related Party Transactions [Abstract]
Transactions with Related Parties	(6) Transactions with Related Parties We have entered into certain agreements with our Investment Manager and CION Securities whereby we paid or pay certain fees and reimbursements to these parties. We paid CION 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 were obligated 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. We commenced our wind down period on June 1, 2017. As a result, we are no longer obligated to pay distribution fees to CION Securities as of such date. No dealer-manager or distribution fees were paid on any Shares sold pursuant to the DRIP. During the three months ended March 31, 2017 , we paid previously accrued distribution fees of $509 . 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 were reimbursed for a portion of the organization and offering expenses incurred in connection with our organization and offering of Shares and will be reimbursed for administrative expenses incurred in connection with our operations. The reimbursement of organization and offering expenses was 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. Through the end of our offering period, our Investment Manager and its affiliates incurred organization and offering expenses of $1,759,237 on our behalf, of which our Investment Manager and its affiliates determined only to seek reimbursement of $239,758 . We paid our Investment Manager (i) a management fee of up to 3.50% of the gross periodic payments due and paid from our investments and (ii) acquisition fees of up to 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. Effective July 1, 2016, our Investment Manager reduced its management fee by 50% (up to 1.75% of the gross periodic payments due and paid from our investments). Effective December 1, 2017, our Investment Manager waived all future management fees. 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 distributions to our Managing Owner of $ 21,212 and $ 602 for the three months ended March 31, 2018 and 2017 , respectively. Additionally, our Managing Owner’s interest in the net income (loss) attributable to us was $ 353 and $ (429) for the three months ended March 31, 2018 and 2017 , respectively. Fees and other expenses incurred by us to our Investment Manager or its affiliates were as follows: Three Months Ended March 31, Entity Capacity Description 2018 2017 ICON Capital, LLC Investment Manager Management fees (1) $ — $ 17,920 ICON Capital, LLC Investment Manager Administrative expense reimbursements (1) 105,786 133,773 $ 105,786 $ 151,693 (1) Amount charged directly to operations. At March 31, 2018 , we had a net payable of $79,277 due to our Investment Manager and affiliates that primarily consisted of administrative expense reimbursements of $80,786 . At December 31, 2017 , we had a net payable of $64,397 due to our Investment Manager and affiliates that primarily consisted of administrative expense reimbursements of $65,906 .

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	(7) Fair Value Measurements Assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: • Level 1: Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. • Level 2: Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. • Level 3: Pricing inputs that are generally unobservable and are supported by little or no market data. Assets for which Fair Value is Disclosed Our fixed-rate note receivable, for which fair value is required to be disclosed, was valued using inputs that are generally unobservable and are supported by little or no market data and are therefore classified within Level 3. Fair value information with respect to certain of our other assets and liabilities is not separately provided since (i) U.S. GAAP does not require fair value disclosures of lease arrangements and (ii) the carrying value of financial assets and liabilities, other than lease-related investments, approximates fair value due to their short-term maturities and/or variable interest rates. March 31, 2018 Carrying Value Fair Value (Level 3) Principal outstanding on fixed-rate note receivable $ 532,400 $ 523,024

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	(8) 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 may or may not have a material adverse effect on our consolidated financial condition or results of operations taken as a whole.

Summary of Significant Accoun14

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2018
Accounting Policies [Abstract]
Basis of Presentation and Consolidation	Basis of Presentation and Consolidation Our accompanying consolidated 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 (the “SEC”) 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 consolidated financial statements should be read together with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended December 31, 2017. 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	Credit Quality of Notes Receivable and Finance Leases and Credit Loss Reserve Our Investment Manager monitors the ongoing credit quality of our financing receivables by (i) reviewing and analyzing a borrower’s financial performance on a regular basis, including review of financial statements received on a monthly, quarterly or annual basis as prescribed in the loan or lease agreement, (ii) tracking the relevant credit metrics of each financing receivable and a borrower’s compliance with financial and non-financial covenants, (iii) monitoring a borrower’s payment history and public credit rating, if available, and (iv) assessing our exposure based on the current investment mix. As part of the monitoring process, our Investment Manager may physically inspect the collateral or a borrower’s facility and meet with a borrower’s management to better understand such borrower’s financial performance and its future plans on an as-needed basis. As our financing receivables, generally notes receivable and finance leases, 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. Our Investment Manager does not use a system of assigning internal risk ratings to each of our financing receivables. Rather, each financing receivable is analyzed quarterly and categorized as either performing or non-performing based on certain factors including, but not limited to, financial results, satisfying scheduled payments and compliance with financial covenants. A financing receivable is usually categorized as non-performing only when a borrower experiences financial difficulties and has failed to make scheduled payments. Our Investment Manager then analyzes whether the financing receivable should be placed on a non-accrual status, a credit loss reserve should be established or the financing receivable should be restructured. As part of the assessment, updated collateral value is usually considered and such collateral value can be based on a third party industry expert appraisal or, depending on the type of collateral and accessibility to relevant published guides or market sales data, internally derived fair value. Material events would be specifically disclosed in the discussion of each financing receivable held. Financing receivables are generally placed on 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 on 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 on 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, and/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.
Recently Adopted Accounting Pronouncements	Recently Adopted 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. We adopted ASU 2014-09 on January 1, 2018. Since substantially all of our revenue is recognized from our leasing and lending contracts, which are not subject to ASU 2014-09, the adoption of ASU 2014-09 did not have an effect on our consolidated financial statements. In January 2016, FASB issued ASU No. 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which provides guidance related to accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. As a result of the adoption of ASU 2016-01, we are no longer required to make certain disclosures related to the methods and significant assumptions used to estimate fair value for financial instruments measured at amortized cost. In August 2016, FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows. We adopted ASU 2016-15 on January 1, 2018, which did not have an effect on our consolidated financial statements. We utilize the cumulative earnings approach under ASU 2016-15 to present distributions received from equity-method investees, which is consistent with our previous policy. In November 2016, FASB issued ASU No. 2016-18, Statement of Cash Flows (“ASU 2016-18”), which provides guidance on the presentation of restricted cash or restricted cash equivalents in the statement of cash flows. We adopted ASU 2016-18 on January 1, 2018, which did not have an effect on our consolidated financial statements as we did not have any restricted cash or restricted cash equivalents for the periods presented herein. In January 2017, FASB issued ASU No. 2017-01, Business Combinations (“ASU 2017-01”), which clarifies the definition of a business. ASU 2017-01 sets forth requirements to be met for a set to be deemed a business and establishes a practical way to determine when a set is not a business. To be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create an output, and removes the evaluation of whether a market participant could replace missing elements. In addition, ASU 2017-01 narrows the definition of outputs and aligns such definition with how outputs are described within the revenue guidance. We adopted ASU 2017-01 on January 1, 2018, which did not have an effect on our consolidated financial statements. Other Recent Accounting Pronouncements In February 2016, FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”), which requires lessees to recognize assets and liabilities for leases with lease terms greater than twelve months on the balance sheet and disclose key information about leasing arrangements. ASU 2016-02 implements changes to lessor accounting focused on conforming with certain changes made to lessee accounting and the recently released revenue recognition guidance. The adoption of ASU 2016-02 becomes effective for us on January 1, 2019. Early adoption is permitted. As we no longer have any lease arrangements and since we are in our wind down period and not expecting to enter into any new leases in the future, the adoption of ASU 2016-02 will not have an effect on our consolidated financial statements. In June 2016, FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (“ASU 2016-13”), which modifies the measurement of credit losses by eliminating the probable initial recognition threshold set forth in current guidance, and instead reflects an entity’s current estimate of all expected credit losses. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity will apply the amendments within ASU 2016-13 through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The adoption of ASU 2016-13 becomes effective for us on January 1, 2020, including interim periods within that reporting period. Early adoption is permitted. We are currently in the process of evaluating the impact of the adoption of ASU 2016-13 on our consolidated financial statements.

Net Investment in Notes Recei15

Net Investment in Notes Receivable (Tables)	3 Months Ended
	Mar. 31, 2018
Receivables [Abstract]
Schedule of Accounts, Notes, Loans and Financing Receivable	Net investment in notes receivable consisted of the following: March 31, 2018 December 31, 2017 Principal outstanding $ 3,080,400 $ 3,114,921 Deferred fees (140,359 ) (147,350 ) Net investment in notes receivable $ 2,940,041 $ 2,967,571

Investment in Joint Ventures (T

Investment in Joint Ventures (Tables)	3 Months Ended
	Mar. 31, 2018
Schedule of Equity Method Investments
Equity Method Investments	Information as to the results of operations of this joint venture is summarized as follows: Three Months Ended March 31, 2018 2017 Revenue $ 3,424,652 $ 3,343,484 Net income $ 1,239,601 $ 623,791 Our share of net income $ 123,960 $ 62,379
Blackhawk Mining
Schedule of Equity Method Investments
Equity Method Investments	Information as to the results of operations of this joint venture is summarized as follows: Three Months Ended March 31, 2018 2017 Revenue $ — $ 394,766 Net income $ 1,596 $ 308,078 Our share of net income $ 428 $ 31,199
Fugro Vessels
Schedule of Equity Method Investments
Equity Method Investments

Transactions with Related Par17

Transactions with Related Parties (Tables)	3 Months Ended
	Mar. 31, 2018
Related Party Transactions [Abstract]
Fees and Expenses Paid or Accrued	Fees and other expenses incurred by us to our Investment Manager or its affiliates were as follows: Three Months Ended March 31, Entity Capacity Description 2018 2017 ICON Capital, LLC Investment Manager Management fees (1) $ — $ 17,920 ICON Capital, LLC Investment Manager Administrative expense reimbursements (1) 105,786 133,773 $ 105,786 $ 151,693 (1) Amount charged directly to operations.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2018
Fair Value Disclosures [Abstract]
Fair Value Assets Unobservable Input	March 31, 2018 Carrying Value Fair Value (Level 3) Principal outstanding on fixed-rate note receivable $ 532,400 $ 523,024

Organization (Details)

Organization (Details)	14 Months Ended	18 Months Ended
	Dec. 31, 2014USD ($)shares	Dec. 31, 2014USD ($)number_of_shareholderclass_of_shareshares	Jun. 13, 2014USD ($)	Nov. 12, 2013USD ($)
Number of classes of shares | class_of_share		2
Capital Intended to be raised		$ 250,000,000
Capital reserved for issuance pursuant to distribution reinvestment plan		9,000,000
Minimum initial capitalization sale of shares				$ 1,200,000
Minimum initial capitalization commonwealth of Pennsylvania			$ 12,500,000
Initial capital contribution returned to ICON Capital Corp.				$ 1,000
Proceeds from issuance of common stock		$ 17,469,610
Sales commissions to third parties	$ 1,198,531
Dealer manager and distribution fees	347,547
Organization costs	8,418
Offering expenses	$ 161,422
Class A
Number of shares issued (in shares) | shares	17,189	17,189
Number of shareholders | number_of_shareholder		351
Shares issued under DRIP (in shares) | shares		404
Common Class I
Number of shares issued (in shares) | shares	410	410
Number of shareholders | number_of_shareholder		6
Shares issued under DRIP (in shares) | shares		12

Net Investment in Notes Recei20

Net Investment in Notes Receivable (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Receivables [Abstract]
Net investment in note receivable on non-accrual status	$ 0	$ 0
Financing receivable recorded investment 90 days past due and still accruing	0	0
Financing Receivable, Net [Abstract]
Principal outstanding	3,080,400	3,114,921
Deferred fees	(140,359)	(147,350)
Net investment in notes receivable	$ 2,940,041	$ 2,967,571

Investment In Joint Ventures (D

Investment In Joint Ventures (Details)	Jul. 21, 2017USD ($)	Dec. 23, 2015USD ($)subsidiaryvessel	Mar. 04, 2014USD ($)	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)
Schedule of Equity Method Investments
Principal received on notes receivable				$ 34,521	$ 0
Finance income				114,710	183,871
Equity Method Investment, Summarized Financial Information
Our share of net (loss) income				124,388	89,560
Joint Venture Investment | Geotechnical drilling vessel
Equity Method Investment, Summarized Financial Information
Revenue				3,424,652	3,343,484
Net (loss) income				1,239,601	623,791
Our share of net (loss) income				123,960	62,379
Icon ECI Fund Sixteen | Joint Venture Investment | Geotechnical drilling vessel
Schedule of Equity Method Investments
Ownership percentage		10.00%
ICON Fund Fourteen | Joint Venture Investment | Geotechnical drilling vessel
Schedule of Equity Method Investments
Ownership percentage		15.00%
ICON ECI Fund Fifteen LP | Joint Venture Investment | Geotechnical drilling vessel
Schedule of Equity Method Investments
Ownership percentage		75.00%
Blackhawk Mining
Schedule of Equity Method Investments
Lease term period			4 years
Blackhawk Mining | Joint Venture Investment
Schedule of Equity Method Investments
Principal received on notes receivable	$ 7,753,666
Finance income	353,373
Proceeds from lease prepayments			$ 17,859,446
Non-Recourse Debt			7,500,000
Payments to Acquire Equity Method Investments			1,795,597
Property, Plant and Equipment, Additions			$ 25,359,446
Equity Method Investment, Summarized Financial Information
Revenue				0	394,766
Net (loss) income				1,596	308,078
Our share of net (loss) income				$ 428	$ 31,199
Blackhawk Mining | Icon ECI Fund Sixteen | Joint Venture Investment
Schedule of Equity Method Investments
Finance income	$ 35,337
Ownership percentage			10.00%
Blackhawk Mining | ICON ECI Fund Twelve LP | Joint Venture Investment
Schedule of Equity Method Investments
Ownership percentage			60.00%
Blackhawk Mining | ICON Fund Fourteen | Joint Venture Investment
Schedule of Equity Method Investments
Ownership percentage			15.00%
Blackhawk Mining | ICON ECI Fund Fifteen LP | Joint Venture Investment
Schedule of Equity Method Investments
Ownership percentage			15.00%
ICON Fugro Holdings | Joint Venture Investment
Schedule of Equity Method Investments
Charter Contract Eligible for Termination, Period		5 years
Charter Of Vessels Term Period		12 years
ICON Fugro Holdings | Icon ECI Fund Sixteen | Joint Venture Investment
Schedule of Equity Method Investments
Number of Indirect Subsidiaries | subsidiary		2
Advanced Charter Hire Payment		$ 22,500,000
Proceeds from lease prepayments		16,500,000
Non-Recourse Debt		91,000,000
Payments to Acquire Equity Method Investments		$ 2,377,250
Number of drilling vessels | vessel		2
Business Combination, Consideration Transferred		$ 130,000,000

Revolving Line of Credit, Rec22

Revolving Line of Credit, Recourse (Details)	1 Months Ended	3 Months Ended
	May 30, 2017USD ($)advance	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)
Line of Credit Facility
Interest expense from amortization of debt financing costs		$ 0	$ 2,162
Revolving Credit Facility
Line of Credit Facility
Maximum borrowing capacity	$ 5,000,000
Number of separate non-prime rate advances | advance	5
Interest floor, rate	4.00%
Annualized commitment fee rate	0.50%
Revolving Credit Facility | LIBOR
Line of Credit Facility
Basis spread	2.50%

Transactions with Related Par23

Transactions with Related Parties (Details) - USD ($)	3 Months Ended		14 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2014	Dec. 31, 2017	Jul. 01, 2016	Nov. 12, 2013
Related Party Transaction
Offering expenses			$ 161,422
Distributions	$ 2,121,212
Net income (loss)	35,980	$ (11,578)
Net Income (Loss) Allocated to General Partners	353	(429)
Due to Investment Manager and affiliates, net	$ 79,277			$ 64,397
Managing Owner
Related Party Transaction
Manager owner interest percentage	1.00%
Organization and offering fee rate						1.44%
Maximum initial capitalization sale of shares						$ 241,000,000
Offering expenses			1,759,237
Reimbursement expenses			$ 239,758
Management fee rate	3.50%
Acquisition fee rate	2.50%
Decrease of management fee rate					50.00%
Management fee, gross periodic payments due and paid					1.75%
Distributions		602
CION Securities, LLC
Related Party Transaction
Dealer manager fee			2.00%
Distribution fee rate			0.55%
CION Securities, LLC | Offering Expenses
Related Party Transaction
Distributions		509
ICON Capital, LLC
Related Party Transaction
Fee and other reimbursements incurred	$ 105,786	151,693
ICON Capital, LLC | Management Fees
Related Party Transaction
Fee and other reimbursements incurred	0	17,920
ICON Capital, LLC | Administrative Expense Reimbursements Manager
Related Party Transaction
Fee and other reimbursements incurred	105,786	$ 133,773
Due to Investment Manager and affiliates, net	80,786			$ 65,906
Class I
Related Party Transaction
Distributions	48,917
Net income (loss)	815
Class I | CION Securities, LLC
Related Party Transaction
Distribution fee rate			10.00%
Class A
Related Party Transaction
Distributions	2,072,295
Net income (loss)	34,513
Class A | Managing Owner
Related Party Transaction
Distributions	21,212
Net income (loss)	$ 353

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Principal outstanding	$ 3,080,400	$ 3,114,921
Carrying Amount
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Principal outstanding	532,400
Fair Value | Fair Value, Inputs, Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Notes receivable, fair value	$ 523,024