Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 12, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | Arboretum Silverleaf Income Fund, L.P. | |
Entity Central Index Key | 0001672773 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2020 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 2,532,772.53 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2020 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 488,727 | $ 5,064,943 |
Investments in finance leases, net | 25,077,380 | 18,764,984 |
Investments in equipment subject to operating leases, net | 1,532,107 | 1,808,764 |
Collateralized loans receivable, including accrued interest of $14,224 and $12,003, respectively | 4,265,781 | 3,131,307 |
Other assets | 696,706 | 575,028 |
Total Assets | 32,060,701 | 29,345,026 |
Liabilities: | ||
Accounts payable and accrued liabilities | 273,101 | 238,932 |
Loan payable, including accrued interest of $69,744 and $37,103, respectively | 12,942,523 | 9,722,177 |
Distributions payable to Limited Partners | 255,363 | 511,318 |
Distributions payable to General Partner | 46,144 | 36,013 |
Security deposit payable | 49,391 | 49,391 |
Deferred revenue | 792,144 | 620,061 |
Total Liabilities | 14,358,666 | 11,177,892 |
Partners' Equity (Deficit): | ||
Limited Partners | 17,756,360 | 18,216,951 |
General Partner | (54,325) | (49,817) |
Total Equity | 17,702,035 | 18,167,134 |
Total Liabilities and Partners' Equity | $ 32,060,701 | $ 29,345,026 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Accrued interest | $ 14,224 | $ 12,003 |
Accrued interest payable | $ 69,744 | $ 37,103 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue | ||||
Rental income | $ 93,000 | $ 120,256 | $ 296,368 | $ 298,768 |
Finance income | 579,436 | 469,040 | 1,792,647 | 956,619 |
Interest income | 128,557 | 98,901 | 348,517 | 334,382 |
Gain on sale of assets | 70,483 | |||
Other income | 527 | 688 | ||
Total Revenue | 800,993 | 688,197 | 2,508,542 | 1,590,457 |
Expenses | ||||
Management fees - Investment Manager | 187,500 | 187,500 | 562,500 | 562,500 |
Interest expense | 206,722 | 586,074 | ||
Depreciation | 75,550 | 99,462 | 228,824 | 247,958 |
Professional fees | 97,609 | 25,317 | 319,210 | 198,367 |
Administration expense | 84,177 | 59,922 | 245,185 | 168,802 |
Other expenses | 500 | 39 | 4,416 | 8,508 |
Total Expenses | 652,058 | 372,240 | 1,946,209 | 1,186,135 |
Net income | 148,935 | 315,957 | 562,333 | 404,322 |
Net income attributable to the Partnership | ||||
Limited Partners | 147,446 | 312,797 | 556,710 | 400,279 |
General Partner | 1,489 | 3,160 | 5,623 | 4,043 |
Net income attributable to the Partnership | $ 148,935 | $ 315,957 | $ 562,333 | $ 404,322 |
Weighted average number of limited partnership interests outstanding | 2,532,772.53 | 2,535,672.53 | 2,532,772.53 | 1,538,970.9 |
Net income attributable to Limited Partners per weighted average number of limited partnership interests outstanding | $ 0.06 | $ 0.12 | $ 0.22 | $ 0.26 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Changes in Partners' Equity (Deficit) (Unaudited) - USD ($) | Limited Partnership Interests [Member] | Total | General Partner [Member] | Limited Partner [Member] |
Balance at Dec. 31, 2018 | $ 13,850,728 | $ (32,139) | $ 13,882,867 | |
Balance, shares at Dec. 31, 2018 | 1,935,481.94 | |||
Partners' capital contributions | 6,001,906 | 6,001,906 | ||
Partners' capital contributions, shares | 600,190.59 | |||
Offering expenses | (9,630) | (9,630) | ||
Underwriting fees | (418,337) | (418,337) | ||
Net income (loss) | 108,434 | 1,084 | 107,350 | |
Distributions to partners | (419,473) | (4,145) | (415,328) | |
Balance at Mar. 31, 2019 | 19,113,628 | (35,200) | 19,148,828 | |
Balance, shares at Mar. 31, 2019 | 2,535,672.53 | |||
Balance at Dec. 31, 2018 | 13,850,728 | (32,139) | 13,882,867 | |
Balance, shares at Dec. 31, 2018 | 1,935,481.94 | |||
Net income (loss) | 404,322 | |||
Balance at Sep. 30, 2019 | 18,380,967 | (42,411) | 18,423,378 | |
Balance, shares at Sep. 30, 2019 | 2,535,672.53 | |||
Balance at Mar. 31, 2019 | 19,113,628 | (35,200) | 19,148,828 | |
Balance, shares at Mar. 31, 2019 | 2,535,672.53 | |||
Net income (loss) | (20,069) | (201) | (19,868) | |
Distributions to partners | (512,113) | (5,056) | (507,057) | |
Balance at Jun. 30, 2019 | 18,581,446 | (40,457) | 18,621,903 | |
Balance, shares at Jun. 30, 2019 | 2,535,672.53 | |||
Net income (loss) | 315,957 | 3,160 | 312,797 | |
Distributions to partners | (516,436) | (5,114) | (511,322) | |
Balance at Sep. 30, 2019 | 18,380,967 | (42,411) | 18,423,378 | |
Balance, shares at Sep. 30, 2019 | 2,535,672.53 | |||
Balance at Dec. 31, 2019 | 18,167,134 | (49,817) | 18,216,951 | |
Balance, shares at Dec. 31, 2019 | 2,532,772.53 | |||
Net income (loss) | 226,951 | 2,271 | 224,680 | |
Distributions to partners | (514,369) | (5,052) | (509,317) | |
Balance at Mar. 31, 2020 | 17,879,716 | (52,598) | 17,932,314 | |
Balance, shares at Mar. 31, 2020 | 2,532,772.53 | |||
Balance at Dec. 31, 2019 | 18,167,134 | (49,817) | 18,216,951 | |
Balance, shares at Dec. 31, 2019 | 2,532,772.53 | |||
Net income (loss) | 562,333 | |||
Balance at Sep. 30, 2020 | 17,702,035 | (54,325) | 17,756,360 | |
Balance, shares at Sep. 30, 2020 | 2,532,772.53 | |||
Balance at Mar. 31, 2020 | 17,879,716 | (52,598) | 17,932,314 | |
Balance, shares at Mar. 31, 2020 | 2,532,772.53 | |||
Net income (loss) | 186,447 | 1,863 | 184,584 | |
Distributions to partners | (255,146) | (2,525) | (252,621) | |
Balance at Jun. 30, 2020 | 17,811,017 | (53,260) | 17,864,277 | |
Balance, shares at Jun. 30, 2020 | 2,532,772.53 | |||
Net income (loss) | 148,935 | 1,489 | 147,446 | |
Distributions to partners | (257,917) | (2,554) | (255,363) | |
Balance at Sep. 30, 2020 | $ 17,702,035 | $ (54,325) | $ 17,756,360 | |
Balance, shares at Sep. 30, 2020 | 2,532,772.53 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 562,333 | $ 404,322 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Finance income | (1,792,647) | (956,619) |
Accrued interest income | (348,517) | (334,605) |
Depreciation | 228,824 | 247,958 |
Gain on sale of assets | (70,483) | |
Change in operating assets and liabilities: | ||
Minimum rents receivable | 6,968,402 | 2,832,555 |
Accrued interest income | 361,970 | 324,861 |
Other assets | (121,678) | (8,688) |
Accounts payable and accrued liabilities | 34,169 | (1,924) |
Accrued interest on loan payable | 32,641 | |
Security deposit payable | 49,391 | |
Deferred revenue | (79,518) | 270,312 |
Funding liability for collateralized loans and leases | 1,088 | |
Net cash provided by operating activities | 5,775,496 | 2,828,651 |
Cash flows from investing activities: | ||
Purchase of finance leases | (11,488,151) | (9,537,178) |
Origination and purchases of loans receivable, net of amortization, prepayments and satisfactions | (896,326) | 289,098 |
Proceeds from sale of collateralized loans receivable | 146,341 | |
Proceeds from sale of leased assets | 118,316 | 100,856 |
Net cash used in investing activities | (12,266,161) | (9,000,883) |
Cash flows from financing activities: | ||
Cash received from loan payable | 10,982,000 | |
Repayments of loan payable | (7,794,295) | |
Cash received from Limited Partner capital contributions | 5,916,286 | |
Cash paid for Limited Partner distributions | (1,273,256) | (1,292,674) |
Cash paid for underwriting fees | (332,717) | |
Cash paid for offering costs | (9,630) | |
Net cash provided by financing activities | 1,914,449 | 4,281,265 |
Net (decrease) increase in cash and cash equivalents | (4,576,216) | (1,890,967) |
Cash and cash equivalents, beginning of period | 5,064,943 | 3,192,541 |
Cash and cash equivalents, end of period | 488,727 | 1,301,574 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Units issued as underwriting fee discount | 85,620 | |
Distributions payable to General Partner | 10,131 | 14,315 |
Distributions payable to Limited Partners | 255,363 | 511,323 |
Reclassification of investment in finance leases to equipment subject to operating leases | 2,010,412 | |
Increase in collateralized loans receivable | 251,601 | |
Funding liability for collateralized loans and leases | $ (82,960) |
Organization and Nature of Oper
Organization and Nature of Operations | 9 Months Ended |
Sep. 30, 2020 | |
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 ASIF GP, LLC (the “General Partner”), a wholly-owned subsidiary of the Partnership’s Investment Manager. On July 8, 2019, the General Partner changed its name from SQN AIF V GP, LLC to ASIF GP, LLC. 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. 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 expects to conduct its activities for at least six years and divide the Partnership’s life into three distinct stages: (i) the Offering Period, (ii) the Operating Period and (iii) the Liquidation Period. The Offering Period began on August 11, 2016 and concluded on March 31, 2019. The Operating Period commenced on October 3, 2016, the date of the Partnership’s initial closing, and will last for four years unless extended at the sole discretion of the General Partner. The General Partner extended the Operating Period for an additional year. 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 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. American Elm Distribution Partners, LLC (“American Elm”), a Delaware limited liability company, is affiliated with the General Partner. American Elm acted as the initial selling agent for the offering of the units (“Units”). The Units are offered on a “best efforts,” “minimum-maximum” basis. 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 6.0% annually, paid quarterly as 1.5%, of each Limited Partner’s capital contribution (pro-rated to the date of admission for each Limited Partner). Since June 30, 2017, our distribution rate has been 6.5% annually, paid quarterly at 1.625%, of capital contributions. Beginning as of March 31, 2018, we increased our distribution to 7.0% annually, paid quarterly at 1.75% of capital contributions. Beginning as of June 30, 2018, we increased our distribution to 7.5%, paid quarterly at 1.875% of capital contributions. Beginning as of September 30, 2018, we increased our distribution to 8.0%, paid quarterly at 2.00% of capital contributions. Beginning as of June 30, 2020, we decreased our distribution to 4.0%, paid quarterly at 1.00% of capital contributions. The amount and rate of cash distributions could vary and are not guaranteed. During the nine months ended September 30, 2020, we made quarterly cash distributions to our Limited Partners totaling $1,273,256, and accrued $255,363 for distributions due to Limited Partners which resulted in a distributions payable to Limited Partners of $255,363 at September 30, 2020. At September 30, 2020, the Partnership declared and accrued a distribution of $2,554, for distributions due to the General Partner which resulted in distributions payable to the General Partner of $46,144 at September 30, 2020. On September 11, 2018, the Partnership formed a special purpose entity SQN Lifestyle Leasing, LLC (“Lifestyle Leasing”), a limited liability company registered in the state of Delaware which is wholly owned by the Partnership. On May 24, 2019, the Partnership terminated Lifestyle Leasing. From August 11, 2016 through September 30, 2020, the Partnership admitted 617 Limited Partners with total capital contributions of $25,371,709 resulting in the sale of 2,537,170.91 Units. The Partnership received cash contributions of $24,718,035 and applied $653,674 which would have otherwise been paid as sales commission to the purchase of 65,367.46 additional Units. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies. Basis of Presentation Principles of Consolidation 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. As of September 30, 2020 and December 31, 2019, there were no VIEs. 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 a full service commercial financial institution in order to minimize risk relating to exceeding insured limits. 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 the industry in which the potential lessee operates and the secondary market value of the equipment. 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, Net and Allowance for Doubtful Lease Accounts Collateralized Loans Receivable, Net The allowance for loan losses is evaluated on a regular basis by the Investment Manager and is based upon the Investment Manager’s periodic review of the collectability of the receivables in light of historical experience, changes in the composition and risk characteristics of the collateralized loan portfolio, adverse situations that may affect the borrower’s ability to repay, other loan specific information, and the estimated value of any underlying collateral (net of estimated selling costs). This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. At September 30, 2020 and December 31, 2019, it was determined that an allowance for loan losses was not needed. Income Taxes The Partnership is subject to the Bipartisan Budget Act of 2015 (“BBA”), which, among other requirements, stipulates that any tax liability incurred based on an IRS tax examination will become due by the Partnership versus the partners of the Partnership. The Partnership, at its discretion, will be able to seek repayment from its partners or treat as a distribution of the individual partners’ account to satisfy this obligation. The Partnership will treat any liability incurred as a deduction to equity. As of September 30, 2020, there were no expected liabilities to be incurred under the BBA. The Partnership has adopted the provisions of Financial Accounting Standards Board’s (“FASB”) Topic 740, Accounting for Uncertainty in Income Taxes. Per Share Data Foreign Currency Transactions Depreciation Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss (CECL) model). Under this model, entities will estimate credit losses over the entire contractual term of the instrument from the date of initial recognition of that instrument. Current US GAAP is based on an incurred loss model that delays recognition of credit losses until it is probable the loss has been incurred. Accordingly, it is anticipated that credit losses will be recognized earlier under the CECL model than under the incurred loss model. ASU 2016-13 was to be effective for fiscal periods beginning after December 15, 2019 and must be adopted as a cumulative effect adjustment to retained earnings. In July 2019, the FASB decided to add a project to its technical agenda to propose staggered effective dates for certain accounting standards, including ASU 2016-13. The FASB has approved an approach that ASU 2016-13 will be effective for Public Business Entities that are SEC filers, excluding smaller reporting companies such as the Partnership, for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. For all other entities, including smaller reporting companies like the Partnership, ASU 2016-13 will be effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. For all entities, early adoption will continue to be permitted; that is, early adoption is allowed for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (that is, effective January 1, 2019, for calendar-year-end companies). On November 15, 2019, the FASB delayed the effective date of FASB ASC Topic 326 for certain small public companies and other private companies. As amended, the effective date of ASC Topic 326 was delayed until fiscal years beginning after December 15, 2022 for SEC filers that are eligible to be smaller reporting companies under the SEC’s definition, as well as private companies and not-for-profit entities. Nothing in this staff interpretation 3 should be read to accelerate or delay the effective dates of the standard as modified by the FASB. The Partnership is currently evaluating the impact of this guidance on its interim condensed consolidated financial statements. In February 2016, the FASB issued new guidance to improve consolidation guidance for legal entities, ASU 2016-02, Leases (Topic 842): Amendments to the FASB Accounting Standards Codification (“ASU 2016-02”), effective for fiscal years beginning after December 15, 2018 and interim periods within those years. Early adoption was permitted. ASU 2016-02 amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets, and makes 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 has adopted ASU 2016-02 on January 1, 2019 and determined there was no significant impact on its interim condensed consolidated financial statements of initial application. Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the interim condensed consolidated financial statements. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2020 | |
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 reimburses the General Partner for actual incurred organizational and offering costs not to exceed 1.5% 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 Offering Period concluded on March 31, 2019 with the Partnership receiving $24,718,035 in total capital contributions and as a result, organizational and offering expenses were limited to $370,770 or 1.5% of total equity raised. The Partnership paid the General Partner an allowance for organizational and offering expenses totaling $926,374, and as a result, the General Partner and/or its Investment Manager were required to reimburse the Partnership organizational and offering expenses of $555,604. At September 30, 2020 and December 31, 2019, the Partnership has an outstanding receivable from its Investment Manager balance of $461,539 and $544,945, respectively, which is included in Other Assets in the condensed consolidated balance sheets. 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 September 30, 2020 and 2019. At September 30, 2020 and December 31, 2019, the Partnership has distributions payable to the General Partner of $46,144 and $36,013, respectively. The Partnership pays the Investment Manager during the Offering Period, Operating Period and the Liquidation Period a management fee equal to the greater of, (i) 2.5% per annum of the aggregate offering proceeds, payable monthly in advance or (ii) $62,500 per month. For the three months ended September 30, 2020 and 2019, the Partnership paid $187,500 in management fee expense to the Investment Manager. For the nine months ended September 30, 2020 and 2019, the Partnership paid $562,500 in management fee expense to the Investment Manager. The Partnership pays the Investment Manager during the Operating Period a structuring fee in an amount equal to 1.5% of each cash investment made, including reinvestments, payable on the date each such investment is made. At September 30, 2020 and December 31, 2019, the Partnership accrued $191,004 and $238,933, respectively, of structuring fees to the Investment Manager. American Elm is a Delaware limited liability company and is a subsidiary of an affiliate of the Partnership’s Investment Manager. American Elm in its capacity as the Partnership’s selling agent received an underwriting fee of 2% of the gross proceeds from Limited Partners’ capital contributions (excluding proceeds, if any, the Partnership received from the sale of the Partnership’s Units to the General Partner or its affiliates). While American Elm is initially acting as the Partnership’s exclusive selling agent, the Partnership may engage additional selling agents in the future. For the nine months ended September 30, 2020 and the year ended December 31, 2019, the Partnership incurred the following transactions with American Elm: Nine Months Ended September 30, 2020 Year Ended December 31, 2019 (unaudited) Balance - beginning of period $ — $ — Underwriting fees earned by American Elm — 118,326 Payments by the Partnership to American Elm — (118,326 ) Balance - end of period $ — $ — For the nine months ended September 30, 2020 and 2019, the Partnership incurred the following underwriting fee transactions: Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 (unaudited) (unaudited) Underwriting discount incurred by the Partnership $ — $ 85,620 Underwriting fees earned by American Elm — 118,326 Fees paid to outside brokers — 214,391 Total underwriting fees $ — $ 418,337 |
Investments in Finance Leases
Investments in Finance Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Investments in Finance Leases | 4. Investments in Finance Leases. At September 30, 2020 and December 31, 2019, net investments in finance leases consisted of the following: September 30, 2020 December 31, 2019 (unaudited) Minimum rents receivable $ 30,214,608 $ 23,001,407 Estimated unguaranteed residual value 71,616 146,569 Unearned income (5,208,844 ) (4,382,992 ) Total $ 25,077,380 $ 18,764,984 |
Investment in Equipment Subject
Investment in Equipment Subject to Operating Leases, Net | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Investment in Equipment Subject to Operating Leases, Net | 5. Investment in Equipment Subject to Operating Leases, Net. The composition of the equipment subject to operating leases of the Partnership as of September 30, 2020 is as follows: Description Cost Basis Accumulated Depreciation Net Book Value (unaudited) (unaudited) (unaudited) Food equipment $ 334,826 $ 334,826 $ — Fabrication Equipment 2,010,412 478,305 1,532,107 Total $ 2,345,238 $ 813,131 $ 1,532,107 The composition of the equipment subject to operating leases of the Partnership as of December 31, 2019 is as follows: Description Cost Basis Accumulated Depreciation Net Book Value Food equipment $ 334,826 $ 284,739 $ 50,087 Fabrication Equipment 2,010,412 251,735 1,758,677 Total $ 2,345,238 $ 536,474 $ 1,808,764 Depreciation expense for the three and nine months ended September 30, 2020 was $75,550 and $228,824, respectively. Depreciation expense for the three and nine months ended September 30, 2019 was $99,462 and $247,958, respectively. |
Collateralized Loans Receivable
Collateralized Loans Receivable | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Collateralized Loans Receivable | 6. Collateralized Loans Receivable. The future principal maturities of the Partnership’s collateralized loans receivable at September 30, 2020 are as follows: Years ending September 30, (unaudited) 2021 $ 1,119,827 2022 2,696,279 2023 187,122 2024 226,403 2025 21,926 Thereafter — Total $ 4,251,557 |
Loan Payable
Loan Payable | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Loan Payable | 7. Loan Payable. On October 18, 2019, the Partnership entered into a loan and security agreement with a third party lender for a $25,000,000 loan facility (of which $20,000,000 is a Term Loan and $5,000,000 is a Revolving Loan) with a maturity date of October 18, 2022. During the nine months ended September 30, 2020 and the year ended December 31, 2019, the Partnership borrowed a total of $10,982,000 and $10,600,000, respectively under the Term and Revolver Loans. Interest on the drawn funds shall accrue at a rate of 3 month LIBOR Rate plus 5.6% per annum (6.6% as of September 30, 2020 and 7.5% as of December 31, 2019). During the nine months ended September 30, 2020 and the year ended December 31, 2019, the Partnership repaid total principal of $7,794,295 and $914,926, respectively. The future maturities of the Partnership’s loan payable at September 30, 2020 are as follows: Years ending September 30, 2021 $ — 2022 12,942,523 Total $ 12,942,523 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Investments, All Other Investments [Abstract] | |
Fair Value of Financial Instruments | 8. 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: September 30, 2020 December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value (unaudited) (unaudited) Assets: Collateralized loans receivable $ 4,265,781 $ 4,265,781 $ 3,131,307 $ 3,131,307 Liabilities: Loan payable $ 12,942,523 $ 12,942,523 $ 9,722,177 $ 9,722,177 As of September 30, 2020, the Partnership evaluated the carrying values of its financial instruments and they approximate fair value. |
Indemnifications
Indemnifications | 9 Months Ended |
Sep. 30, 2020 | |
Description of management fee | |
Indemnifications | 9. Indemnifications The Partnership enters into contracts that contain a variety of indemnifications. The Partnership’s maximum exposure under these arrangements is not known. In the normal course of business, the Partnership enters into contracts of various types, including lease contracts, contracts for the sale or purchase of lease assets, loan agreements and management contracts. It is prevalent industry practice for most contracts of any significant value to include provisions that each of the contracting parties, in addition to assuming liability for breaches of the representations, warranties, and covenants that are part of the underlying contractual obligations, to also assume an obligation to indemnify and hold the other contractual party harmless for such breaches, and for harm caused by such party’s gross negligence and willful misconduct, including, in certain instances, certain costs and expenses arising from the contract. Generally, to the extent these contracts are performed in the ordinary course of business under the reasonable business judgment of the General Partner and the Investment Manager, no liability will arise as a result of these provisions. The General Partner and Investment Manager knows of no facts or circumstances that would make the Partnership’s contractual commitments outside standard mutual covenants applicable to commercial transactions between businesses. Accordingly, the Partnership believes that these indemnification obligations are made in the ordinary course of business as part of standard commercial and industry practice, and that any potential liability under the Partnership’s similar commitments is remote. Should any such indemnification obligation become payable, the Partnership would separately record and/or disclose such liability in accordance with U.S. GAAP. At September 30, 2020 and December 31, 2019, there are no indemnification obligation payable. |
Business Concentrations
Business Concentrations | 9 Months Ended |
Sep. 30, 2020 | |
Risks and Uncertainties [Abstract] | |
Business Concentrations | 10. Business Concentrations For the nine months ended September 30, 2020, the Partnership had one lessee which accounted for approximately 95% of the Partnership’s rental income derived from operating leases. For the nine months ended September 30, 2019, the Partnership had two lessees which accounted for approximately 73% and 27% of the Partnership’s rental income derived from operating leases. For the nine months ended September 30, 2020, the Partnership had four lessees which accounted for approximately 15%, 13%, 12% and 10% of the Partnership’s income derived from finance leases. For the nine months ended September 30, 2019, the Partnership had two lessees which accounted for approximately 27% and 20% of the Partnership’s finance income derived from finance leases. For the nine months ended September 30, 2020, the Partnership had two loans which accounted for approximately 57% and 24% of the Partnership’s interest income derived from collateralized loans receivable. For the nine months ended September 30, 2019 the Partnership had two loans which accounted for approximately 54% and 39% of the Partnership’s interest income derived from collateralized loans receivable. At September 30, 2020, the Partnership had five lessees which accounted for approximately 14%, 12%, 11%, 10% and 10% of the Partnership’s investment in finance leases. At September 30, 2019, the Partnership had three lessees which accounted for approximately 27%, 22% and 20% of the Partnership’s investment in finance leases. At September 30, 2020, the Partnership had one lessee which accounted for approximately 100% of the Partnership’s investment in operating leases. At September 30, 2019, the Partnership had one lessee which accounted for approximately 97% of the Partnership’s investment in operating leases. At September 30, 2020, the Partnership had four borrowers which accounted for approximately 56%, 19%, 11% and 10% of the Partnership’s investment in collateralized loans receivable. At September 30, 2019, the Partnership had two borrowers which accounted for approximately 56% and 42% of the Partnership’s investment in collateralized loans receivable. |
Geographic Information
Geographic Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Geographic Information | 11. Geographic Information As of September 30, 2020 and December 31, 2019, all of the Partnership’s revenue and assets are based in the United States. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies As of September 30, 2020, the Partnership does not have any unfunded commitments for any investments. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Events In December 2019, a novel strain of coronavirus (also known as COVID-19) was reported to have surfaced in Wuhan, China. In January 2020, this coronavirus spread to other countries, including the United States and Europe. The outbreak has continued to spread and is currently classified as a pandemic. Efforts to contain the spread of this coronavirus has intensified. To date, COVID-19 has not had a significant impact on our business. Although the Partnership currently expects that the disruptive impact of coronavirus on its business will be temporary, this situation continues to evolve and therefore the Partnership cannot predict the extent to which the coronavirus will directly or indirectly affect its business and operating results. On October 7, 2020, the Partnership terminated the lease facility for fish processing equipment. The Partnership is pursuing multiple options for liquidating the equipment. The Partnership has evaluated the value of the collateral and believes that proceeds would be sufficient to cover the outstanding obligations under the lease. On October 22, 2020, the Partnership received cash of $1,040,453 as total payoff of three lease schedules of a finance lease for water pumps. The three finance lease schedules had a net book value of $913,401 resulting in an increase in finance income of $127,052 and the customer maintained all rights to the water pumps. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
Principles of Consolidation | Principles of Consolidation 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. As of September 30, 2020 and December 31, 2019, there were no VIEs. |
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 a full service commercial financial institution in order to minimize risk relating to exceeding insured limits. |
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 the industry in which the potential lessee operates and the secondary market value of the equipment. 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, Net and Allowance for Doubtful Lease Accounts | Finance Lease Receivables, Net and Allowance for Doubtful Lease Accounts |
Collateralized Loans Receivable, Net | Collateralized Loans Receivable, Net The allowance for loan losses is evaluated on a regular basis by the Investment Manager and is based upon the Investment Manager’s periodic review of the collectability of the receivables in light of historical experience, changes in the composition and risk characteristics of the collateralized loan portfolio, adverse situations that may affect the borrower’s ability to repay, other loan specific information, and the estimated value of any underlying collateral (net of estimated selling costs). This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. At September 30, 2020 and December 31, 2019, it was determined that an allowance for loan losses was not needed. |
Income Taxes | Income Taxes The Partnership is subject to the Bipartisan Budget Act of 2015 (“BBA”), which, among other requirements, stipulates that any tax liability incurred based on an IRS tax examination will become due by the Partnership versus the partners of the Partnership. The Partnership, at its discretion, will be able to seek repayment from its partners or treat as a distribution of the individual partners’ account to satisfy this obligation. The Partnership will treat any liability incurred as a deduction to equity. As of September 30, 2020, there were no expected liabilities to be incurred under the BBA. The Partnership has adopted the provisions of Financial Accounting Standards Board’s (“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 June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which requires credit losses on most financial assets measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss (CECL) model). Under this model, entities will estimate credit losses over the entire contractual term of the instrument from the date of initial recognition of that instrument. Current US GAAP is based on an incurred loss model that delays recognition of credit losses until it is probable the loss has been incurred. Accordingly, it is anticipated that credit losses will be recognized earlier under the CECL model than under the incurred loss model. ASU 2016-13 was to be effective for fiscal periods beginning after December 15, 2019 and must be adopted as a cumulative effect adjustment to retained earnings. In July 2019, the FASB decided to add a project to its technical agenda to propose staggered effective dates for certain accounting standards, including ASU 2016-13. The FASB has approved an approach that ASU 2016-13 will be effective for Public Business Entities that are SEC filers, excluding smaller reporting companies such as the Partnership, for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. For all other entities, including smaller reporting companies like the Partnership, ASU 2016-13 will be effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. For all entities, early adoption will continue to be permitted; that is, early adoption is allowed for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (that is, effective January 1, 2019, for calendar-year-end companies). On November 15, 2019, the FASB delayed the effective date of FASB ASC Topic 326 for certain small public companies and other private companies. As amended, the effective date of ASC Topic 326 was delayed until fiscal years beginning after December 15, 2022 for SEC filers that are eligible to be smaller reporting companies under the SEC’s definition, as well as private companies and not-for-profit entities. Nothing in this staff interpretation 3 should be read to accelerate or delay the effective dates of the standard as modified by the FASB. The Partnership is currently evaluating the impact of this guidance on its interim condensed consolidated financial statements. In February 2016, the FASB issued new guidance to improve consolidation guidance for legal entities, ASU 2016-02, Leases (Topic 842): Amendments to the FASB Accounting Standards Codification (“ASU 2016-02”), effective for fiscal years beginning after December 15, 2018 and interim periods within those years. Early adoption was permitted. ASU 2016-02 amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets, and makes 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 has adopted ASU 2016-02 on January 1, 2019 and determined there was no significant impact on its interim condensed consolidated financial statements of initial application. Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the interim condensed consolidated financial statements. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Partnership Incurred Transactions with Securities | For the nine months ended September 30, 2020 and the year ended December 31, 2019, the Partnership incurred the following transactions with American Elm: Nine Months Ended September 30, 2020 Year Ended December 31, 2019 (unaudited) Balance - beginning of period $ — $ — Underwriting fees earned by American Elm — 118,326 Payments by the Partnership to American Elm — (118,326 ) Balance - end of period $ — $ — |
Schedule of Partnership Underwriting Fee Transactions | For the nine months ended September 30, 2020 and 2019, the Partnership incurred the following underwriting fee transactions: Nine Months Ended September 30, 2020 Nine Months Ended September 30, 2019 (unaudited) (unaudited) Underwriting discount incurred by the Partnership $ — $ 85,620 Underwriting fees earned by American Elm — 118,326 Fees paid to outside brokers — 214,391 Total underwriting fees $ — $ 418,337 |
Investments in Finance Leases (
Investments in Finance Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of Net Investments in Finance Leases | At September 30, 2020 and December 31, 2019, net investments in finance leases consisted of the following: September 30, 2020 December 31, 2019 (unaudited) Minimum rents receivable $ 30,214,608 $ 23,001,407 Estimated unguaranteed residual value 71,616 146,569 Unearned income (5,208,844 ) (4,382,992 ) Total $ 25,077,380 $ 18,764,984 |
Investment in Equipment Subje_2
Investment in Equipment Subject to Operating Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of Composition of Equipment Subject to Operating Leases of Partnership | The composition of the equipment subject to operating leases of the Partnership as of September 30, 2020 is as follows: Description Cost Basis Accumulated Depreciation Net Book Value (unaudited) (unaudited) (unaudited) Food equipment $ 334,826 $ 334,826 $ — Fabrication Equipment 2,010,412 478,305 1,532,107 Total $ 2,345,238 $ 813,131 $ 1,532,107 The composition of the equipment subject to operating leases of the Partnership as of December 31, 2019 is as follows: Description Cost Basis Accumulated Depreciation Net Book Value Food equipment $ 334,826 $ 284,739 $ 50,087 Fabrication Equipment 2,010,412 251,735 1,758,677 Total $ 2,345,238 $ 536,474 $ 1,808,764 |
Collateralized Loans Receivab_2
Collateralized Loans Receivable (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Schedule of Future Principal Maturities | The future principal maturities of the Partnership’s collateralized loans receivable at September 30, 2020 are as follows: Years ending September 30, (unaudited) 2021 $ 1,119,827 2022 2,696,279 2023 187,122 2024 226,403 2025 21,926 Thereafter — Total $ 4,251,557 |
Loan Payable (Tables)
Loan Payable (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Future Maturities of Loan Payable | The future maturities of the Partnership’s loan payable at September 30, 2020 are as follows: Years ending September 30, 2021 $ — 2022 12,942,523 Total $ 12,942,523 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments, All Other Investments [Abstract] | |
Schedule of Fair Values of Financial Instruments | The Partnership’s carrying values and approximate fair values of its financial instruments were as follows: September 30, 2020 December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value (unaudited) (unaudited) Assets: Collateralized loans receivable $ 4,265,781 $ 4,265,781 $ 3,131,307 $ 3,131,307 Liabilities: Loan payable $ 12,942,523 $ 12,942,523 $ 9,722,177 $ 9,722,177 |
Organization and Nature of Op_2
Organization and Nature of Operations (Details Narrative) | Jun. 30, 2020 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | Mar. 31, 2019USD ($) | Sep. 30, 2020USD ($)Integer | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)Integershares | Dec. 31, 2019USD ($) |
Number of business segment | Integer | 1 | |||||||||
Accrued for distributions due to partners | $ 255,363 | |||||||||
Distributions payable to limited partners | 255,363 | $ 255,363 | $ 511,318 | |||||||
Distributions payable to general partner | 46,144 | $ 46,144 | $ 36,013 | |||||||
Partners' capital contributions | $ 6,001,906 | |||||||||
Partners received cash contributions | $ 5,916,286 | |||||||||
Limited Partner [Member] | ||||||||||
Targeted distribution rate, percentage | 4.00% | 8.00% | 7.50% | 7.00% | 6.50% | |||||
Targeted distribution rate, quarterly | 1.00% | 2.00% | 1.875% | 1.75% | 1.625% | |||||
Partners' capital contributions | 6,001,906 | |||||||||
General Partner [Member] | ||||||||||
Accrued for distributions due to partners | $ 2,554 | |||||||||
Partners' capital contributions | ||||||||||
Limited Partners [Member] | ||||||||||
Targeted distribution, description | The targeted distribution rate is 6.0% annually, paid quarterly as 1.5%, of each Limited Partner's capital contribution (pro-rated to the date of admission for each Limited Partner). | |||||||||
Targeted distribution rate, percentage | 6.00% | |||||||||
Targeted distribution rate, quarterly | 1.50% | |||||||||
Distribution payable to limited partners quarterly | $ 1,273,256 | |||||||||
Accrued for distributions due to partners | 255,363 | |||||||||
Number of partners | Integer | 617 | |||||||||
Partners' capital contributions | $ 25,371,709 | |||||||||
Partners' capital contributions, shares | shares | 2,537,170.91 | |||||||||
Partners received cash contributions | $ 24,718,035 | |||||||||
Additional units purchased during the period, value | $ 653,674 | |||||||||
Additional units purchased during the period | shares | 65,367.46 | |||||||||
ASIF GP, LLC [Member] | ||||||||||
Partnership contribution | $ 100 | $ 100 | ||||||||
Percentage of ownership | 1.00% | 1.00% | ||||||||
ASIF GP, LLC [Member] | Limited Partner [Member] | ||||||||||
Partnership interest | 99.00% | 99.00% | ||||||||
Percentage of cumulative return on capital contributions | 8.00% | 8.00% | ||||||||
Percentage of distributable cash allocated | 80.00% | 80.00% | ||||||||
ASIF GP, LLC [Member] | General Partner [Member] | ||||||||||
Partnership interest | 1.00% | 1.00% | ||||||||
Percentage of distributable cash allocated | 20.00% | 20.00% |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Percentage of organizational and offering cost | 1.50% | 1.50% | ||||
Partner capital contributions | $ 6,001,906 | |||||
Offering expenses | $ 370,770 | $ 370,770 | ||||
General partners offering expenses | 926,374 | 926,374 | ||||
Partners balance capital | $ 461,539 | $ 544,945 | $ 461,539 | $ 544,945 | ||
Percentage of distributed cash | 20.00% | 20.00% | ||||
Percentage of capital contributions | 8.00% | 8.00% | ||||
Percentage of interest in profit, losses and distributions of partnership | 1.00% | 1.00% | ||||
Percentage of all distributed distributable cash | 1.00% | 1.00% | 1.00% | 1.00% | ||
Management fee expense | $ 187,500 | $ 187,500 | $ 562,500 | $ 562,500 | ||
Investment Manager [Member] | ||||||
Partner capital contributions | $ 24,718,035 | |||||
Partner equity raised percentage | 0.015 | |||||
Repayment of partners offering expenses | $ 555,604 | |||||
Description of management fee | The Partnership pays the Investment Manager during the Offering Period, Operating Period and the Liquidation Period a management fee equal to the greater of, (i) 2.5% per annum of the aggregate offering proceeds, payable monthly in advance or (ii) $62,500 per month. | |||||
Management fee equal to percentage of per annum of the aggregate offering proceeds | 2.50% | |||||
Management fee per month, value | $ 62,500 | |||||
Management fee expense | $ 187,500 | $ 187,500 | $ 562,500 | $ 562,500 | ||
Structuring fee amount percentage | 1.50% | |||||
Structuring fee | $ 191,004 | $ 238,933 | ||||
Underwriting fee percentage | 2.00% | |||||
General Partner [Member] | ||||||
Partners distributions payable | $ 46,144 | $ 36,013 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Partnership Incurred Transactions with Securities (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Related Party Transactions [Abstract] | ||
Balance - beginning of period | ||
Underwriting fees earned by American Elm | 118,326 | |
Payments by the Partnership to American Elm | (118,326) | |
Balance - end of period |
Related Party Transactions - _2
Related Party Transactions - Schedule of Partnership Underwriting Fee Transactions (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Related Party Transactions [Abstract] | ||
Underwriting discount incurred by the Partnership | $ 85,620 | |
Underwriting fees earned by American Elm | 118,326 | |
Fees paid to outside brokers | 214,391 | |
Total underwriting fees | $ 418,337 |
Investments in Finance Leases -
Investments in Finance Leases - Schedule of Net Investments in Finance Leases (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Minimum rents receivable | $ 30,214,608 | $ 23,001,407 |
Estimated unguaranteed residual value | 71,616 | 146,569 |
Unearned income | (5,208,844) | (4,382,992) |
Total | $ 25,077,380 | $ 18,764,984 |
Investment in Equipment Subje_3
Investment in Equipment Subject to Operating Leases, Net (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Depreciation expense | $ 75,550 | $ 99,462 | $ 228,824 | $ 247,958 |
Investment in Equipment Subje_4
Investment in Equipment Subject to Operating Leases - Schedule of Composition of Equipment Subject to Operating Leases of Partnership (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Cost Basis | $ 2,345,238 | $ 2,345,238 |
Accumulated Depreciation | 813,131 | 536,474 |
Net Book Value | 1,532,107 | 1,808,764 |
Food Equipment [Member] | ||
Cost Basis | 334,826 | 334,826 |
Accumulated Depreciation | 334,826 | 284,739 |
Net Book Value | 50,087 | |
Fabrication Equipment [Member] | ||
Cost Basis | 2,010,412 | 2,010,412 |
Accumulated Depreciation | 478,305 | 251,735 |
Net Book Value | $ 1,532,107 | $ 1,758,677 |
Collateralized Loans Receivab_3
Collateralized Loans Receivable - Schedule of Future Principal Maturities (Details) | Sep. 30, 2020USD ($) |
Receivables [Abstract] | |
2021 | $ 1,119,827 |
2022 | 2,696,279 |
2023 | 187,122 |
2024 | 226,403 |
2025 | 21,926 |
Thereafter | |
Total | $ 4,251,557 |
Loan Payable (Details Narrative
Loan Payable (Details Narrative) - Loan And Security Agreement [Member] - USD ($) | Oct. 18, 2019 | Sep. 30, 2020 | Dec. 31, 2019 |
Line of credit maximum borrowing capacity | $ 25,000,000 | ||
Line of credit maturity date | Oct. 18, 2022 | ||
Partnership borrowed amount | $ 10,982,000 | $ 10,600,000 | |
Repaid principal | $ 7,794,295 | $ 914,926 | |
LIBOR [Member] | |||
Debt instrument description | Interest on the drawn funds shall accrue at a rate of 3 month LIBOR Rate plus 5.6% per annum (6.6% as of September 30, 2020 and 7.5% as of December 31, 2019). | ||
Variable interest rate | 5.60% | 6.60% | 7.50% |
Revolving Loan [Member] | |||
Line of credit maximum borrowing capacity | $ 5,000,000 | ||
Term Loan [Member] | |||
Line of credit maximum borrowing capacity | $ 20,000,000 |
Loan Payable - Schedule of Futu
Loan Payable - Schedule of Future Maturities of Loan Payable (Details) | Sep. 30, 2020USD ($) |
Debt Disclosure [Abstract] | |
2021 | |
2022 | 12,942,523 |
Total | $ 12,942,523 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Fair Values of Financial Instruments (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Liabilities: Loan payable | $ 12,942,523 | |
Carrying Value [Member] | ||
Assets: Collateralized loans receivable | 4,265,781 | $ 3,131,307 |
Liabilities: Loan payable | 12,942,523 | 9,722,177 |
Fair Value [Member] | ||
Assets: Collateralized loans receivable | 4,265,781 | 3,131,307 |
Liabilities: Loan payable | $ 12,942,523 | $ 9,722,177 |
Business Concentrations (Detail
Business Concentrations (Details Narrative) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Interest Income [Member] | Promissory Note One [Member] | ||
Concentration credit risk percentage | 57.00% | 54.00% |
Interest Income [Member] | Promissory Note Two [Member] | ||
Concentration credit risk percentage | 24.00% | 39.00% |
Investment in Collateralized Loans Receivable [Member] | Borrowers One [Member] | ||
Concentration credit risk percentage | 56.00% | 56.00% |
Investment in Collateralized Loans Receivable [Member] | Borrowers Two [Member] | ||
Concentration credit risk percentage | 19.00% | 42.00% |
Investment in Collateralized Loans Receivable [Member] | Borrowers Three [Member] | ||
Concentration credit risk percentage | 11.00% | |
Investment in Collateralized Loans Receivable [Member] | Borrowers Four [Member] | ||
Concentration credit risk percentage | 10.00% | |
Lessee 1 [Member] | Rental Income Operating Leases [Member] | ||
Concentration credit risk percentage | 95.00% | 73.00% |
Lessee 1 [Member] | Investment in Finance Leases [Member] | ||
Concentration credit risk percentage | 14.00% | 27.00% |
Lessee 1 [Member] | Investment in Operating Leases [Member] | ||
Concentration credit risk percentage | 100.00% | 97.00% |
Lessee 2 [Member] | Rental Income Operating Leases [Member] | ||
Concentration credit risk percentage | 27.00% | |
Lessee 2 [Member] | Investment in Finance Leases [Member] | ||
Concentration credit risk percentage | 12.00% | 22.00% |
Leases 1 [Member] | Finance Leases [Member] | ||
Concentration credit risk percentage | 15.00% | 27.00% |
Leases 2 [Member] | Finance Leases [Member] | ||
Concentration credit risk percentage | 13.00% | 20.00% |
Leases 3 [Member] | Finance Leases [Member] | ||
Concentration credit risk percentage | 12.00% | |
Leases 4 [Member] | Finance Leases [Member] | ||
Concentration credit risk percentage | 10.00% | |
Lessee 3 [Member] | Investment in Finance Leases [Member] | ||
Concentration credit risk percentage | 11.00% | 20.00% |
Lessee 4 [Member] | Investment in Finance Leases [Member] | ||
Concentration credit risk percentage | 10.00% | |
Lessee 5 [Member] | Investment in Finance Leases [Member] | ||
Concentration credit risk percentage | 10.00% |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] | Oct. 22, 2020USD ($) |
Finance lease | $ 1,040,453 |
Net book value | 913,401 |
Increase in finance income | $ 127,052 |