Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 31, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Entity Registrant Name | Arboretum Silverleaf Income Fund, L.P. | ||
Entity Central Index Key | 0001672773 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2020 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filer | No | ||
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 Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 2,532,772.53 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 1,838,659 | $ 5,064,943 |
Investments in finance leases, net | 15,767,235 | 18,764,984 |
Investments in equipment subject to operating leases, net | 1,808,764 | |
Collateralized loans receivable, including accrued interest of $4,667 and $12,003, respectively | 3,986,896 | 3,131,307 |
Other assets | 7,294,637 | 575,028 |
Total Assets | 28,887,427 | 29,345,026 |
Liabilities: | ||
Accounts payable and accrued liabilities | 247,582 | 238,932 |
Loan payable, including accrued interest of $95,135 and $37,103, respectively | 12,375,581 | 9,722,177 |
Distributions payable to Limited Partners | 255,362 | 511,318 |
Distributions payable to General Partner | 48,698 | 36,013 |
Security deposit payable | 49,391 | 49,391 |
Deferred revenue | 717,814 | 620,061 |
Total Liabilities | 13,694,428 | 11,177,892 |
Partners' Equity (Deficit): | ||
Limited Partners | 15,272,406 | 18,216,951 |
General Partner | (79,407) | (49,817) |
Total Equity | 15,192,999 | 18,167,134 |
Total Liabilities and Partners' Equity | $ 28,887,427 | $ 29,345,026 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Accrued interest | $ 4,667 | $ 12,003 |
Accrued interest payable | $ 95,135 | $ 37,103 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue | ||
Rental income | $ 296,368 | $ 419,024 |
Finance income | 2,418,960 | 1,403,049 |
Interest income | 520,775 | 437,120 |
Other income | 527 | 688 |
Total Revenue | 3,236,630 | 2,259,881 |
Loss on sale of assets | (715,517) | |
Provision for loan and lease losses | (1,592,055) | |
Revenue, net | 929,058 | 2,259,881 |
Expenses | ||
Management fees - Investment Manager | 750,000 | 750,000 |
Interest expense | 810,866 | 83,245 |
Depreciation | 279,186 | 329,146 |
Professional fees | 438,085 | 669,570 |
Administration expense | 335,292 | 244,238 |
Other expenses | 6,177 | 8,508 |
Total Expenses | 2,619,606 | 2,084,707 |
Net (loss) income | (1,690,548) | 175,174 |
Net (loss) income attributable to the Partnership | ||
Limited Partners | (1,673,643) | 173,422 |
General Partner | (16,905) | 1,752 |
Net (loss) income attributable to the Partnership | $ (1,690,548) | $ 175,174 |
Weighted average number of limited partnership interests outstanding | 2,532,772.53 | 1,302,315.04 |
Net (loss) income attributable to Limited Partners per weighted average number of limited partnership interests outstanding | $ (0.66) | $ 0.13 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Partners' Equity (Deficit) - USD ($) | Limited Partnership Interests [Member] | General Partner [Member] | Limited Partner [Member] | Total |
Balance at Dec. 31, 2018 | $ (32,139) | $ 13,882,867 | $ 13,850,728 | |
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 | 545,974 | 545,974 | ||
Underwriting fees | (418,337) | (418,337) | ||
Net income (loss) | 1,752 | 173,422 | 175,174 | |
Distributions to partners | (19,430) | (1,945,025) | (1,964,455) | |
Redemptions to partners | (23,856) | (23,856) | ||
Redemptions to partners, shares | (2,900) | |||
Balance at Dec. 31, 2019 | (49,817) | 18,216,951 | 18,167,134 | |
Balance, shares at Dec. 31, 2019 | 2,532,772.53 | |||
Partners' capital contributions | ||||
Partners' capital contributions, shares | ||||
Underwriting fees | ||||
Net income (loss) | (16,905) | (1,673,643) | (1,690,548) | |
Distributions to partners | (12,685) | (1,270,902) | (1,283,587) | |
Redemptions to partners | ||||
Redemptions to partners, shares | ||||
Balance at Dec. 31, 2020 | $ (79,407) | $ 15,272,406 | $ 15,192,999 | |
Balance, shares at Dec. 31, 2020 | 2,532,772.53 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (1,690,548) | $ 175,174 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Finance income | (2,418,960) | (1,403,049) |
Accrued interest income | (520,775) | (437,343) |
Provision for loan and lease losses | 1,592,055 | |
Depreciation | 279,186 | 329,146 |
Loss on sale of assets | 715,517 | |
Change in operating assets and liabilities: | ||
Minimum rents receivable | 10,009,831 | 3,930,849 |
Accrued interest income | 546,701 | 432,190 |
Other assets | (122,079) | (574,680) |
Accounts payable and accrued liabilities | 8,650 | 113,513 |
Accrued interest on loan payable | 58,032 | 37,103 |
Security deposit payable | 49,391 | |
Deferred revenue | (153,848) | 368,113 |
Funding liability for collateralized loans and leases | 1,088 | |
Net cash provided by operating activities | 8,303,762 | 3,021,495 |
Cash flows from investing activities: | ||
Purchase of finance leases | (12,520,249) | (15,346,019) |
Origination and purchases of loans receivable, net of amortization, prepayments and satisfactions | (672,457) | (37,035) |
Proceeds from sale of collateralized loans receivable | 146,341 | |
Proceeds from sale of leased assets | 594,146 | 100,856 |
Net cash used in investing activities | (12,598,560) | (15,135,857) |
Cash flows from financing activities: | ||
Proceeds from loan payable | 13,632,000 | 10,600,000 |
Repayments of loan payable | (11,036,628) | (914,926) |
Limited Partner capital contributions | 5,916,286 | |
Limited Partner distributions | (1,526,858) | (1,803,997) |
Limited Partner redemptions | (23,856) | |
Cash paid for underwriting fees | (332,717) | |
Cash paid for offering costs | 545,974 | |
Net cash provided by financing activities | 1,068,514 | 13,986,764 |
Net (decrease) increase in cash and cash equivalents | (3,226,284) | 1,872,402 |
Cash and cash equivalents, beginning of year | 5,064,943 | 3,192,541 |
Cash and cash equivalents, end of year | 1,838,659 | 5,064,943 |
Supplemental disclosure of other cash flow information: | ||
Cash paid for interest, net of amounts capitalized | 752,834 | |
Supplemental disclosure of non-cash investing and financing activities: | ||
Units issued as underwriting fee discount | 85,620 | |
Distributions payable to General Partner | 12,685 | 19,430 |
Distributions payable to Limited Partners | 255,362 | 511,318 |
Reclassification of investment in finance leases to other assets | 7,927,127 | 2,010,412 |
Reclassification of investment in equipment subject to operating leases to other assets | 219,915 | |
Funding liability for collateralized loans and leases | $ (82,960) |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Dec. 31, 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. On January 7, 2019, the Investment Manager changed its name from SQN Investment Advisors, LLC to Arboretum Investment Advisors, LLC. 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”). On January 7, 2019, American Elm changed its name from SQN Securities, LLC to American Elm Distribution Partners, LLC. 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 at 1.5%, of each Limited Partner’s capital contribution (pro-rated to the date of admission for each Limited Partner). During the year ended December 31, 2020, we made quarterly cash distributions to our Limited Partners totaling approximately $1,527,000, and we accrued $255,362 for distributions due to Limited Partners which resulted in a distributions payable to Limited Partners of $255,362 at December 31, 2020. During the year ended December 31, 2019, we made quarterly cash distributions to our Limited Partners totaling approximately $1,804,000, and we accrued $511,318 for distributions due to Limited Partners which resulted in a distributions payable to Limited Partners of $511,318 at December 31, 2019. At December 31, 2020 and 2019 we declared and accrued a distribution of $12,685 and $19,430, respectively, for distributions due to our General Partner which resulted in distributions payable to our General Partner of $48,698 and $36,013 at December 31, 2020 and 2019, respectively. 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 March 31, 2019, 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 | 12 Months Ended |
Dec. 31, 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. 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 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. Collateralized Loans Receivable, Net Finance Lease Receivables and Allowance for Loan and Lease Accounts Long-lived Asset Impairments 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 December 31, 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 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 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 consolidated financial statements. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 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 December 31, 2020, the Partnership has a due from its Investment Manager balance of $433,510, which is included in Other Assets in the consolidated balance sheets. At December 31, 2019, the Partnership has a due from its Investment Manager balance of $544,945, which is included in Other Assets in the 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 December 31, 2020 and 2019. 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 years ended December 31, 2020 and 2019, the Partnership paid $750,000, in management fees 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. For the years ended December 31, 2020 and 2019, the Partnership paid $205,861 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 receives an underwriting fee of 2% of the gross proceeds from Limited Partners’ capital contributions (excluding proceeds, if any, the Partnership receives from the sale of the Partnership’s Units to the General Partner or its affiliates). While American Elm is initially acting as the Partnership’s exclusive selling agent, the Partnership may engage additional selling agents in the future. For the years ended December 31, 2020 and 2019, the Partnership incurred the following transactions with American Elm: Year Ended December 31, 2020 Year Ended December 31, 2019 Balance - beginning of year $ — $ — Underwriting fees earned by American Elm — 118,326 Payments by the Partnership to American Elm — (118,326 ) Balance - end of year $ — $ — For the years ended December 31, 2020 and 2019, the Partnership incurred the following underwriting fee transactions: Year Ended Year Ended December 31, 2020 December 31, 2019 Underwriting discount incurred by the Partnership $ - $ 85,620 Underwriting fees earned by American Elm - 118,326 Underwriting fees paid to outside brokers - 214,391 Total underwriting fees $ - $ 418,337 |
Investments in Finance Leases
Investments in Finance Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Investments in Finance Leases | 4. Investments in Finance Leases. At December 31, 2020 and 2019, net investments in finance leases consisted of the following: 2020 2019 Minimum rents receivable $ 18,550,416 $ 23,001,407 Estimated unguaranteed residual value 71,616 146,569 Unearned income (2,854,797 ) (4,382,992 ) $ 15,767,235 $ 18,764,984 |
Investment in Equipment Subject
Investment in Equipment Subject to Operating Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Investment in Equipment Subject to Operating Leases | 5. Investment in Equipment Subject to Operating Leases. The composition of the equipment subject to operating leases of the Partnership as of December 31, 2020 is as follows: Description Cost Basis Accumulated Depreciation Reclass to Other Assets Net Book Value Food equipment $ 286,994 $ 286,994 $ - $ - Fabrication Equipment $ 2,010,412 $ 528,667 $ 1,481,745 $ - $ 2,297,406 $ 815,661 $ 1,481,745 $ - 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 $ 2,345,238 $ 536,474 $ 1,808,764 Depreciation expense for the years ended December 31, 2020 and 2019 was $279,186 and $329,146, respectively. |
Collateralized Loans Receivable
Collateralized Loans Receivable | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Collateralized Loans Receivable | 6. Collateralized Loans Receivable. The Partnership has no allowance for loan losses or nonperforming loans at December 31, 2020 and 2019. The future principal maturities of the Partnership’s performing collateralized loans receivable at December 31, 2020 are as follows: Years ending December 31, 2021 $ 1,478,397 2022 2,150,858 2023 142,384 2024 199,476 2025 11,114 Thereafter — Total $ 3,982,229 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | 7. Other Assets. Other assets of $7,294,637 primarily consists of equipment that is off lease and currently being remarketed for release/sale and is primarily made up of $3,006,741 related to infrastructure equipment, $2,705,989 related to telecommunication equipment and $800,000 related to fish processing equipment,. |
Loan Payable
Loan Payable | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Loan Payable | 8. 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 years ended December 31, 2020 and 2019, the Partnership borrowed a total of $13,632,000 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 (with a floor of 1%) plus 5.6% per annum (6.6% as of December 31, 2020 and 7.5% as of December 31, 2019). During the years ended December 31, 2020 and 2019, the Partnership repaid total principal of $11,036,628 and $914,926, respectively. The future maturities of the Partnership’s loan payable at December 31, 2020 are as follows: Years ending December 31, 2021 $ — 2022 12,375,581 Total $ 12,375,581 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Investments, All Other Investments [Abstract] | |
Fair Value of Financial Instruments | 9. 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 maturities. The Partnership’s carrying values and approximate fair values of its financial instruments were as follows: December 31, 2020 December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value Assets: Collateralized loans receivable $ 3,986,896 $ 3,986,896 $ 3,131,307 $ 3,131,307 Liabilities: Loan payable $ 12,375,581 $ 12,375,581 $ 9,722,177 $ 9,722,177 |
Income Tax Reconciliation
Income Tax Reconciliation | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax Reconciliation | 10. Income Tax Reconciliation. As of December 31, 2020 and 2019, total Partners’ Equity included in the consolidated financial statements was $15,192,999 and $18,167,134, respectively. As of December 31, 2020 and 2019, total Partners’ Equity for federal income tax purposes was $19,177,248 and $20,661,855. The primary differences are organizational and offering expenses and distribution expenses, which are a reduction in Limited Partners’ capital accounts for financial reporting purposes but not for federal income tax reporting purposes and differences in depreciation and amortization for financial reporting purposes and federal income tax purposes. 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 December 31, 2020, there were no expected liabilities to be incurred under the BBA. The following table reconciles the net income (loss) for financial statement reporting purposes to the net income for federal income tax purposes for the years ended December 31, 2020 and 2019: For the Year Ended For the Year Ended December 31, 2020 December 31, 2019 Net (loss) income per consolidated financial statements $ (1,690,548 ) $ 175,174 Depreciation and amortization (915,742 ) (79,739 ) Advanced rental payments 9,293 (218,714 ) Gain on fixed assets 19,844 — Provision for loan and lease losses 1,592,055 — Loan origination fees 102,218 406,932 Amortization of loan origination fees (171,721 ) (22,607 ) Tax lease adjustments 1,523,205 89,138 Loan non-accruals — (24,804 ) Net income for federal income tax purposes $ 468,604 $ 325,380 |
Indemnifications
Indemnifications | 12 Months Ended |
Dec. 31, 2020 | |
Description of management fee | |
Indemnifications | 11. 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. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | 12. Selected Quarterly Financial Data. The following table is a summary of selected financial data, by quarter: Quarterly Information (unaudited) Year Ended March 31, June 30, September 30, December 31, December 31, 2020 Revenue, net $ 891,087 $ 816,462 $ 800,993 $ (1,579,484 ) $ 929,058 Net income (loss) allocable to Limited Partners $ 224,681 $ 184,584 $ 147,446 $ (2,230,354 ) $ (1,673,643 ) Weighted average number of limited partnership interests outstanding 2,532,772.53 2,532,772.53 2,532,772.53 2,532,772.53 2,532,772.53 Net income (loss) attributable to Limited Partners per weighted average number of limited partnership interest outstanding $ 0.09 $ 0.07 $ 0.06 $ (0.88 ) $ (0.66 ) Quarterly Information (unaudited) Year Ended March 31, June 30, September 30, December 31, December 31, 2019 Revenue, net $ 433,986 $ 468,274 $ 688,197 $ 669,424 $ 2,259,881 Net income (loss) allocable to Limited Partners $ 107,350 $ (19,868 ) $ 312,797 $ (226,857 ) $ 173,422 Weighted average number of limited partnership interests outstanding 3,447,824.20 2,535,672.53 2,535,672.53 2,535,546.44 1,302,315.04 Net income (loss) attributable to Limited Partners per weighted average number of limited partnership interest outstanding $ 0.03 $ (0.01 ) $ 0.12 $ (0.09 ) $ 0.13 |
Business Concentrations
Business Concentrations | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Business Concentrations | 13. Business Concentrations. For the year ended December 31, 2020, the Partnership had one lessees which accounted for approximately 95% of the Partnership’s rental income derived from operating leases. For the year ended December 31, 2019, the Partnership had two lessees which accounted for approximately 74% and 26% of the Partnership’s rental income derived from operating leases. For the year ended December 31, 2020, the Partnership had four leases which accounted for approximately 15%, 13%, 12% and 10% of the Partnership’s income derived from finance leases. For the year ended December 31, 2019, the Partnership had two leases which accounted for approximately 24% and 20% of the Partnership’s income derived from finance leases. For the year ended December 31, 2020, the Partnership had two promissory notes which accounted for approximately 60% and 21% of the Partnership’s interest income derived from collateralized loans receivable. For the year ended December 31, 2019, the Partnership had two promissory notes which accounted for approximately 56% and 38% of the Partnership’s interest income derived from collateralized loans receivable. At December 31, 2020, the Partnership had three lessees which accounted for approximately 16%, 15%, and 15%, of the Partnership’s investment in finance leases. At December 31, 2019, the Partnership had three lessees which accounted for approximately 19%, 16%, and 14%, of the Partnership’s investment in finance leases. At December 31, 2020, the Partnership had no investment in operating leases. At December 31, 2019, the Partnership had one lessee which accounted for approximately 97% of the Partnership’s investment in operating leases. At December 31, 2020, the Partnership had three promissory notes which accounted for approximately 59%, 16% and 11% of the Partnership’s investment in collateralized loans receivable. At December 31, 2019, the Partnership had two promissory notes which accounted for approximately 64% and 34% of the Partnership’s investment in collateralized loans receivable. |
Geographic Information
Geographic Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Geographic Information | 14. Geographic Information. Geographic information for revenue for the years ended December 31, 2020 and 2019: Year Ended December 31, 2020 United States Total Revenue: Rental income $ 296,368 $ 296,368 Finance income $ 2,418,960 $ 2,418,960 Interest income $ 520,775 $ 520,775 Year Ended December 31, 2019 United States Total Revenue: Rental income $ 419,024 $ 419,024 Finance income $ 1,403,049 $ 1,403,049 Interest income $ 437,120 $ 437,120 Geographic information for long-lived assets at December 31, 2020 and 2019 was as follows: December 31, 2020 United States Total Long-lived assets: Investment in finance leases, net $ 15,767,235 $ 15,767,235 Collateralized loan receivable, including accrued interest $ 3,986,896 $ 3,986,896 December 31, 2019 United States Total Long-lived assets: Investment in finance leases, net $ 18,764,984 $ 18,764,984 Investments in equipment subject to operating leases, net $ 1,808,764 $ 1,808,764 Collateralized loan receivable, including accrued interest $ 3,131,307 $ 3,131,307 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. Commitments and Contingencies. As of December 31, 2020, the Partnership does not have any unfunded commitments for any investments. |
COVID-19
COVID-19 | 12 Months Ended |
Dec. 31, 2020 | |
Covid-19 | |
COVID-19 | 16. COVID-19. 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 had a negative impact on our business and an impairment loss of $1,592,055 was recorded as a result of that impact. Although the Partnership currently expects that the disruptive impact of coronavirus on its business will be temporary, this situation continues to evolve and improve and therefore the Partnership doesn’t think that the coronavirus will directly or indirectly have a continued negative effect on its business and operating results. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17. Subsequent Events. On January 28, 2021, the Partnership received cash of $625,854 as total payoff, in connection with the loan agreement entered into on December 11, 2018. The loan had an outstanding balance of $602,129 resulting in additional income of $23,725. On March 12, 2021, the Partnership funded $750,000 for a lease facility of a welding system with a company based in Louisiana. The finance lease requires 42 monthly payments of $29,120. The lease is secured by a first priority lien against the welding system. On March 22, 2021, the Partnership funded $2,218,258 for a lease facility for glass manufacturing equipment with a company based in Kentucky. The finance lease requires 36 monthly payments of $70,912. The lease is secured by a first priority lien against the glass manufacturing equipment. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 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. |
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 |
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. |
Collateralized Loans Receivable, Net | Collateralized Loans Receivable, Net |
Finance Lease Receivables and Allowance for Loan and Lease Accounts | Finance Lease Receivables and Allowance for Loan and Lease Accounts |
Long-lived Asset Impairments | Long-lived Asset Impairments |
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 December 31, 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 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 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 consolidated financial statements. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Partnership Incurred Transactions with Securities | For the years ended December 31, 2020 and 2019, the Partnership incurred the following transactions with American Elm: Year Ended December 31, 2020 Year Ended December 31, 2019 Balance - beginning of year $ — $ — Underwriting fees earned by American Elm — 118,326 Payments by the Partnership to American Elm — (118,326 ) Balance - end of year $ — $ — |
Schedule of Partnership Underwriting Fee Transactions | For the years ended December 31, 2020 and 2019, the Partnership incurred the following underwriting fee transactions: Year Ended Year Ended December 31, 2020 December 31, 2019 Underwriting discount incurred by the Partnership $ - $ 85,620 Underwriting fees earned by American Elm - 118,326 Underwriting fees paid to outside brokers - 214,391 Total underwriting fees $ - $ 418,337 |
Investments in Finance Leases (
Investments in Finance Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Net Investments in Finance Leases | At December 31, 2020 and 2019, net investments in finance leases consisted of the following: 2020 2019 Minimum rents receivable $ 18,550,416 $ 23,001,407 Estimated unguaranteed residual value 71,616 146,569 Unearned income (2,854,797 ) (4,382,992 ) $ 15,767,235 $ 18,764,984 |
Investment in Equipment Subje_2
Investment in Equipment Subject to Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2020 is as follows: Description Cost Basis Accumulated Depreciation Reclass to Other Assets Net Book Value Food equipment $ 286,994 $ 286,994 $ - $ - Fabrication Equipment $ 2,010,412 $ 528,667 $ 1,481,745 $ - $ 2,297,406 $ 815,661 $ 1,481,745 $ - 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 $ 2,345,238 $ 536,474 $ 1,808,764 |
Collateralized Loans Receivab_2
Collateralized Loans Receivable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Future Principal Maturities | The future principal maturities of the Partnership’s performing collateralized loans receivable at December 31, 2020 are as follows: Years ending December 31, 2021 $ 1,478,397 2022 2,150,858 2023 142,384 2024 199,476 2025 11,114 Thereafter — Total $ 3,982,229 |
Loan Payable (Tables)
Loan Payable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Future Maturities of Loan Payable | The future maturities of the Partnership’s loan payable at December 31, 2020 are as follows: Years ending December 31, 2021 $ — 2022 12,375,581 Total $ 12,375,581 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 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: December 31, 2020 December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value Assets: Collateralized loans receivable $ 3,986,896 $ 3,986,896 $ 3,131,307 $ 3,131,307 Liabilities: Loan payable $ 12,375,581 $ 12,375,581 $ 9,722,177 $ 9,722,177 |
Income Tax Reconciliation (Tabl
Income Tax Reconciliation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Net Loss for Federal Income Tax Purposes | The following table reconciles the net income (loss) for financial statement reporting purposes to the net income for federal income tax purposes for the years ended December 31, 2020 and 2019: For the Year Ended For the Year Ended December 31, 2020 December 31, 2019 Net (loss) income per consolidated financial statements $ (1,690,548 ) $ 175,174 Depreciation and amortization (915,742 ) (79,739 ) Advanced rental payments 9,293 (218,714 ) Gain on fixed assets 19,844 — Provision for loan and lease losses 1,592,055 — Loan origination fees 102,218 406,932 Amortization of loan origination fees (171,721 ) (22,607 ) Tax lease adjustments 1,523,205 89,138 Loan non-accruals — (24,804 ) Net income for federal income tax purposes $ 468,604 $ 325,380 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following table is a summary of selected financial data, by quarter: Quarterly Information (unaudited) Year Ended March 31, June 30, September 30, December 31, December 31, 2020 Revenue, net $ 891,087 $ 816,462 $ 800,993 $ (1,579,484 ) $ 929,058 Net income (loss) allocable to Limited Partners $ 224,681 $ 184,584 $ 147,446 $ (2,230,354 ) $ (1,673,643 ) Weighted average number of limited partnership interests outstanding 2,532,772.53 2,532,772.53 2,532,772.53 2,532,772.53 2,532,772.53 Net income (loss) attributable to Limited Partners per weighted average number of limited partnership interest outstanding $ 0.09 $ 0.07 $ 0.06 $ (0.88 ) $ (0.66 ) Quarterly Information (unaudited) Year Ended March 31, June 30, September 30, December 31, December 31, 2019 Revenue, net $ 433,986 $ 468,274 $ 688,197 $ 669,424 $ 2,259,881 Net income (loss) allocable to Limited Partners $ 107,350 $ (19,868 ) $ 312,797 $ (226,857 ) $ 173,422 Weighted average number of limited partnership interests outstanding 3,447,824.20 2,535,672.53 2,535,672.53 2,535,546.44 1,302,315.04 Net income (loss) attributable to Limited Partners per weighted average number of limited partnership interest outstanding $ 0.03 $ (0.01 ) $ 0.12 $ (0.09 ) $ 0.13 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Geographic Information for Revenue | Geographic information for revenue for the years ended December 31, 2020 and 2019: Year Ended December 31, 2020 United States Total Revenue: Rental income $ 296,368 $ 296,368 Finance income $ 2,418,960 $ 2,418,960 Interest income $ 520,775 $ 520,775 Year Ended December 31, 2019 United States Total Revenue: Rental income $ 419,024 $ 419,024 Finance income $ 1,403,049 $ 1,403,049 Interest income $ 437,120 $ 437,120 |
Schedule of Geographic Information for Long-lived Assets | Geographic information for long-lived assets at December 31, 2020 and 2019 was as follows: December 31, 2020 United States Total Long-lived assets: Investment in finance leases, net $ 15,767,235 $ 15,767,235 Collateralized loan receivable, including accrued interest $ 3,986,896 $ 3,986,896 December 31, 2019 United States Total Long-lived assets: Investment in finance leases, net $ 18,764,984 $ 18,764,984 Investments in equipment subject to operating leases, net $ 1,808,764 $ 1,808,764 Collateralized loan receivable, including accrued interest $ 3,131,307 $ 3,131,307 |
Organization and Nature of Op_2
Organization and Nature of Operations (Details Narrative) | 12 Months Ended | 32 Months Ended | |
Dec. 31, 2020USD ($)Integer | Dec. 31, 2019USD ($) | Mar. 31, 2019USD ($)Integershares | |
Number of business segment | Integer | 1 | ||
Distributions payable to limited partners | $ 255,362 | $ 511,318 | |
Distributions payable to general partner | 48,698 | 36,013 | |
Partners' capital contributions | 6,001,906 | ||
Partners received cash contributions | 5,916,286 | ||
Limited Partner [Member] | |||
Partners' capital contributions | 6,001,906 | ||
General Partner [Member] | |||
Accrued for distributions due to partners | 12,685 | 19,430 | |
Partners' capital contributions | |||
Limited Partners [Member] | |||
Targeted distribution, description | The targeted distribution rate is 6.0% annually, paid quarterly at 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 | $ 1,527,000 | 1,804,000 | |
Accrued for distributions due to partners | 255,362 | 511,318 | |
Distributions payable to limited partners | 255,362 | $ 511,318 | |
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 | ||
Percentage of ownership | 1.00% | ||
ASIF GP, LLC [Member] | Limited Partner [Member] | |||
Partnership interest | 99.00% | ||
Percentage of cumulative return on capital contributions | 8.00% | ||
Percentage of distributable cash allocated | 80.00% | ||
ASIF GP, LLC [Member] | General Partner [Member] | |||
Partnership interest | 1.00% | ||
Percentage of distributable cash allocated | 20.00% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | ||
Provision for lease, note and loan losses | $ 1,592,055 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) | 12 Months Ended | |
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Percentage of organizational and offering cost | 1.50% | |
Partner capital contributions | $ 6,001,906 | |
Offering expenses | 370,770 | |
General partners offering expenses | 926,374 | |
Partners balance capital | $ 433,510 | $ 544,945 |
Percentage of distributed cash | 20.00% | |
Percentage of capital contributions | 8.00% | |
Percentage of interest in profit, losses and distributions of partnership | 1.00% | |
Percentage of all distributed distributable cash | 1.00% | 1.00% |
Management fee expense | $ 750,000 | $ 750,000 |
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 | $ 750,000 | 750,000 |
Structuring fee amount percentage | 1.50% | |
Structuring fee | $ 205,861 | $ 238,933 |
Underwriting fee percentage | 2.00% |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Partnership Incurred Transactions with Securities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transactions [Abstract] | ||
Balance - beginning of period | ||
Underwriting fees earned by American Elm | 118,326 | |
Payments by the Partnership to American Elm | (118,326) | |
Balance - end of period |
Related Party Transactions - _2
Related Party Transactions - Schedule of Partnership Underwriting Fee Transactions (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transactions [Abstract] | ||
Underwriting discount incurred by the Partnership | $ 85,620 | |
Underwriting fees earned by American Elm | 118,326 | |
Underwriting 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 ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Minimum rents receivable | $ 18,550,416 | $ 23,001,407 |
Estimated unguaranteed residual value | 71,616 | 146,569 |
Unearned income | (2,854,797) | (4,382,992) |
Total | $ 15,767,235 | $ 18,764,984 |
Investment in Equipment Subje_3
Investment in Equipment Subject to Operating Leases (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Depreciation expense | $ 279,186 | $ 329,146 |
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 ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Cost Basis | $ 2,297,406 | $ 2,345,238 |
Accumulated Depreciation | 815,661 | 536,474 |
Reclass to Other Assets | 1,481,745 | |
Net Book Value | 1,808,764 | |
Food Equipment [Member] | ||
Cost Basis | 286,994 | 334,826 |
Accumulated Depreciation | 286,994 | 284,739 |
Reclass to Other Assets | ||
Net Book Value | 50,087 | |
Fabrication Equipment [Member] | ||
Cost Basis | 2,010,412 | 2,010,412 |
Accumulated Depreciation | 528,667 | 251,735 |
Reclass to Other Assets | 1,481,745 | |
Net Book Value | $ 1,758,677 |
Collateralized Loans Receivab_3
Collateralized Loans Receivable - Schedule of Future Principal Maturities (Details) | Dec. 31, 2020USD ($) |
Receivables [Abstract] | |
2021 | $ 1,478,397 |
2022 | 2,150,858 |
2023 | 142,384 |
2024 | 199,476 |
2025 | 11,114 |
Thereafter | |
Total | $ 3,982,229 |
Other Assets (Details Narrative
Other Assets (Details Narrative) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Other assets | $ 7,294,637 | $ 575,028 |
Infrastructure Equipment [Member] | ||
Other assets | 3,006,741 | |
Telecommunication Equipment [Member] | ||
Other assets | 2,705,989 | |
Fish Processing Equipment [Member] | ||
Other assets | $ 800,000 |
Loan Payable (Details Narrative
Loan Payable (Details Narrative) - Loan And Security Agreement [Member] - USD ($) | Oct. 18, 2019 | Dec. 31, 2020 | Dec. 31, 2019 |
Line of credit maximum borrowing capacity | $ 25,000,000 | ||
Line of credit maturity date | Oct. 18, 2022 | ||
Partnership borrowed amount | $ 13,632,000 | $ 10,600,000 | |
Repaid principal | $ 11,036,628 | $ 914,926 | |
Floor [Member] | |||
Variable interest rate | 1.00% | ||
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 December 31, 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) | Dec. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
2021 | |
2022 | 12,375,581 |
Total | $ 12,375,581 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Fair Values of Financial Instruments (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Liabilities: Loan payable | $ 12,375,581 | |
Carrying Value [Member] | ||
Assets: Collateralized loans receivable | 3,986,896 | $ 3,131,307 |
Liabilities: Loan payable | 12,375,581 | 9,722,177 |
Fair Value [Member] | ||
Assets: Collateralized loans receivable | 3,986,896 | 3,131,307 |
Liabilities: Loan payable | $ 12,375,581 | $ 9,722,177 |
Income Tax Reconciliation (Deta
Income Tax Reconciliation (Details Narrative) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | |||
Partners' equity | $ 15,192,999 | $ 18,167,134 | $ 13,850,728 |
Partners' equity for federal income tax | $ 19,177,248 | $ 20,661,855 |
Income Tax Reconciliation - Sch
Income Tax Reconciliation - Schedule of Net Loss for Federal Income Tax Purposes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Net income (loss) per consolidated financial statements | $ (1,690,548) | $ 175,174 |
Depreciation and amortization | (915,742) | (79,739) |
Advanced rental payments | 9,293 | (218,714) |
Gain on fixed assets | 19,844 | |
Provision for loan and lease losses | 1,592,055 | |
Loan origination fees | 102,218 | 406,932 |
Amortization of loan origination fees | (171,721) | (22,607) |
Tax lease adjustments | 1,592,055 | |
Loan non-accruals | (24,804) | |
Net income for federal income tax purposes | $ 468,604 | $ 325,380 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data - Schedule of Quarterly Financial Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Revenue, net | $ (1,579,484) | $ 800,993 | $ 816,462 | $ 891,087 | $ 669,424 | $ 688,197 | $ 468,274 | $ 433,986 | $ 929,058 | $ 2,259,881 |
Net income (loss) allocable to Limited Partners | $ (2,230,354) | $ 147,446 | $ 184,584 | $ 224,681 | $ (226,857) | $ 312,797 | $ (19,868) | $ 107,350 | $ (1,673,643) | $ 173,422 |
Weighted average number of limited partnership interests outstanding | 2,532,772.53 | 2,532,772.53 | 2,532,772.53 | 2,532,772.53 | 2,535,546.44 | 2,535,672.53 | 2,535,672.53 | 3,447,824.20 | 2,532,772.53 | 1,302,315.04 |
Net income (loss) attributable to Limited Partners per weighted average number of limited partnership interest outstanding | $ (0.88) | $ 0.06 | $ 0.07 | $ 0.09 | $ (0.09) | $ 0.12 | $ (0.01) | $ 0.03 | $ (0.66) | $ 0.13 |
Business Concentrations (Detail
Business Concentrations (Details Narrative) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Interest Income [Member] | Promissory Note One [Member] | ||
Concentration credit risk percentage | 60.00% | 56.00% |
Interest Income [Member] | Promissory Note Two [Member] | ||
Concentration credit risk percentage | 21.00% | 38.00% |
Investment in Collateralized Loans Receivable [Member] | Promissory Note One [Member] | ||
Concentration credit risk percentage | 59.00% | 64.00% |
Investment in Collateralized Loans Receivable [Member] | Promissory Note Two [Member] | ||
Concentration credit risk percentage | 16.00% | 34.00% |
Investment in Collateralized Loans Receivable [Member] | Promissory Note Three [Member] | ||
Concentration credit risk percentage | 11.00% | |
Lessee 1 [Member] | Rental Income Operating Leases [Member] | ||
Concentration credit risk percentage | 95.00% | 74.00% |
Lessee 1 [Member] | Investment in Finance Leases [Member] | ||
Concentration credit risk percentage | 16.00% | |
Lessee 1 [Member] | Investment in Finance Leases [Member] | ||
Concentration credit risk percentage | 19.00% | |
Lessee 1 [Member] | Investment in Operating Leases [Member] | ||
Concentration credit risk percentage | 97.00% | |
Lessee 2 [Member] | Rental Income Operating Leases [Member] | ||
Concentration credit risk percentage | 26.00% | |
Lessee 2 [Member] | Finance Leases [Member] | ||
Concentration credit risk percentage | 20.00% | |
Lessee 2 [Member] | Investment in Finance Leases [Member] | ||
Concentration credit risk percentage | 15.00% | |
Lessee 2 [Member] | Investment in Finance Leases [Member] | ||
Concentration credit risk percentage | 16.00% | |
Leases 1 [Member] | Finance Leases [Member] | ||
Concentration credit risk percentage | 15.00% | 24.00% |
Leases 2 [Member] | Finance Leases [Member] | ||
Concentration credit risk percentage | 13.00% | |
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 | 15.00% | |
Lessee 3 [Member] | Investment in Finance Leases [Member] | ||
Concentration credit risk percentage | 14.00% |
Geographic Information - Schedu
Geographic Information - Schedule of Geographic Information for Revenue (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Rental income | $ 296,368 | $ 419,024 |
Finance income | 2,418,960 | 1,403,049 |
Interest income | 520,775 | 437,120 |
United States [Member] | ||
Rental income | 296,368 | 419,024 |
Finance income | 2,418,960 | 1,403,049 |
Interest income | $ 520,775 | $ 437,120 |
Geographic Information - Sche_2
Geographic Information - Schedule of Geographic Information for Long-lived Assets (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Investment in finance leases, net | $ 15,767,235 | $ 18,764,984 |
Investments in equipment subject to operating leases, net | 1,808,764 | |
Collateralized loan receivable, including accrued interest | 3,986,896 | 3,131,307 |
United States [Member] | ||
Investment in finance leases, net | 15,767,235 | 18,764,984 |
Investments in equipment subject to operating leases, net | 1,808,764 | |
Collateralized loan receivable, including accrued interest | $ 3,986,896 | $ 3,131,307 |
COVID-19 (Details Narrative)
COVID-19 (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Covid-19 | ||
Impairment loss | $ 1,592,055 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) | Mar. 22, 2021USD ($)Integer | Mar. 12, 2021USD ($)Integer | Jan. 28, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Loan outstanding balance | $ 3,986,896 | $ 3,131,307 | |||
Subsequent Event [Member] | Louisiana [Member] | |||||
Finance lease funded by partnership | $ 750,000 | ||||
Number of monthly lease payments | Integer | 42 | ||||
Monthly payments | $ 29,120 | ||||
Subsequent Event [Member] | Kentucky [Member] | |||||
Finance lease funded by partnership | $ 2,218,258 | ||||
Number of monthly lease payments | Integer | 36 | ||||
Monthly payments | $ 70,912 | ||||
Subsequent Event [Member] | Loan Agreement [Member] | |||||
Loan outstanding balance | $ 602,129 | ||||
Subsequent Event [Member] | Loan Agreement [Member] | |||||
Proceeds from debt | 625,854 | ||||
Additional income from loan | $ 23,725 |