Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | May 16, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 333-211626 | |
Entity Registrant Name | Arboretum Silverleaf Income Fund, L.P. | |
Entity Central Index Key | 0001672773 | |
Entity Tax Identification Number | 81-1184858 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 100 Arboretum Drive | |
Entity Address, Address Line Two | Suite 105 | |
Entity Address, City or Town | Portsmouth | |
Entity Address, State or Province | NH | |
Entity Address, Postal Zip Code | 03801 | |
City Area Code | (603) | |
Local Phone Number | 294-1420 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 2,526,916.73 |
Balance Sheets
Balance Sheets - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 282,472 | $ 194,680 |
Investments in finance leases, net | 16,307,984 | 17,749,004 |
Collateralized loans receivable, including accrued interest of $4,832 and $5,528, respectively | 865,701 | 970,965 |
Other assets | 5,181,318 | 5,797,559 |
Total Assets | 22,637,475 | 24,712,208 |
Liabilities: | ||
Accounts payable and accrued liabilities | 252,569 | 236,658 |
Loan payable, including accrued interest of $37,066 and $49,472, respectively | 6,136,129 | 8,189,304 |
Distributions payable to General Partner | 49,335 | 49,335 |
Security deposit payable | 149,391 | 124,391 |
Deferred revenue | 751,156 | 790,436 |
Total Liabilities | 7,338,580 | 9,390,124 |
Partners’ Equity (Deficit): | ||
Limited Partners | 15,376,755 | 15,399,719 |
General Partner | (77,860) | (77,635) |
Total Equity | 15,298,895 | 15,322,084 |
Total Liabilities and Partners’ Equity | $ 22,637,475 | $ 24,712,208 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Interest Receivable | $ 4,832 | $ 5,528 |
Accrued interest payable | $ 37,066 | $ 49,472 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue | ||
Finance income | $ 447,880 | $ 444,521 |
Interest income | 27,255 | 165,218 |
Total Revenue | 475,135 | 609,739 |
Expenses | ||
Management fees - Investment Manager | 187,500 | 187,500 |
Interest expense | 117,790 | 194,081 |
Professional fees | 133,368 | 70,916 |
Administration expense | 52,476 | 82,416 |
Other expenses | 6,460 | 6,801 |
Total Expenses | 497,594 | 541,714 |
Net (loss) income | (22,459) | 68,025 |
Net (loss) income attributable to the Partnership | ||
Limited Partners | (22,234) | 67,345 |
General Partner | (225) | 680 |
Net (loss) income attributable to the Partnership | $ (22,459) | $ 68,025 |
Weighted average number of limited partnership interests outstanding | 2,526,916.73 | 2,532,772.53 |
Net (loss) income attributable to Limited Partners per weighted average number of limited partnership interests outstanding | $ (0.01) | $ 0.03 |
Statements of Changes in Partne
Statements of Changes in Partners' Equity (Deficit) (Unaudited) - USD ($) | Limited Partnership Interests [Member]. | Total | General Partner [Member] | Limited Partner [Member] |
Beginning balance, value at Dec. 31, 2020 | $ 2,532,772.53 | $ 15,192,999 | $ (79,407) | $ 15,272,406 |
Net income (loss) | 68,025 | 680 | 67,345 | |
Distributions to partners | (3,689) | (3,689) | ||
Ending balance, value at Mar. 31, 2021 | 2,532,772.53 | 15,257,335 | (78,727) | 15,336,062 |
Beginning balance, value at Dec. 31, 2021 | 2,526,916.73 | 15,322,084 | (77,635) | 15,399,719 |
Net income (loss) | (22,459) | (225) | (22,234) | |
Distributions to partners | (730) | (730) | ||
Ending balance, value at Mar. 31, 2022 | $ 2,526,916.73 | $ 15,298,895 | $ (77,860) | $ 15,376,755 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net (loss) income | $ (22,459) | $ 68,025 |
Change in operating assets and liabilities: | ||
Other assets | 616,241 | 2,267,987 |
Accounts payable and accrued liabilities | 15,911 | 14,331 |
Accrued interest on loan payable | (12,406) | (34,619) |
Security deposit payable | 25,000 | 25,000 |
Deferred revenue | (39,280) | 214,575 |
Net cash provided by operating activities | 583,007 | 2,555,299 |
Cash flows from investing activities: | ||
Change in leases, net | 1,441,020 | (1,872,762) |
Origination and purchases of loans receivable, net of amortization, prepayments and satisfactions | 105,264 | 821,653 |
Net cash provided by (used in) investing activities | 1,546,284 | (1,051,109) |
Cash flows from financing activities: | ||
Cash received from loan payable | 800,000 | 2,800,000 |
Repayments of loan payable | (2,840,769) | (3,419,717) |
Cash paid for Limited Partner distributions | (730) | (259,051) |
Net cash used in financing activities | (2,041,499) | (878,768) |
Net increase in cash and cash equivalents | 87,792 | 625,422 |
Cash and cash equivalents, beginning of period | 194,680 | 1,838,659 |
Cash and cash equivalents, end of period | 282,472 | 2,464,081 |
Supplemental disclosure of other cash flow information: | ||
Cash paid for interest | 130,196 | 228,701 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Reclassification of other assets to investment in finance leases | $ 645,050 |
Organization and Nature of Oper
Organization and Nature of Operations | 3 Months Ended |
Mar. 31, 2022 | |
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. 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 1 99 1 8 80 20 During our Operating Period, we intended to pay cash distributions on a quarterly basis to our Limited Partners at 1.5% per quarter, the equivalent rate of 6.0% per annum, of each Limited Partners’ 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 three months ended March 31, 2022, we made quarterly cash distributions to our Limited Partners totaling $ 730 . At March 31, 2022, the Partnership did not declare or accrue distributions due to the economic uncertainties from COVID-19. At March 31, 2022, the Partnership had a distribution payable to the General Partner of $ 49,335 . During the three months ended March 31, 2021, we made quarterly cash distributions to our Limited Partners totaling $ 259,051 . At March 31, 2021, the Partnership did not declare or accrue distributions due to the economic uncertainties from COVID-19. At March 31, 2021, the Partnership had a distribution payable to the General Partner of $ 48,698 . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation 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 443,605 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 March 31, 2022, 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 financial statements. During March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides optional expedients and exceptions for applying generally accepted accounting principles (“GAAP”) to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform, if certain criteria are met. Entities may elect the optional expedients and exceptions included in ASU 2020-04 as of March 12, 2020 and through December 31, 2022. The Partnership is currently assessing the effect that electing the optional expedients and exceptions included in ASU 2020-04 would have on its results of operations, financial position and cash flows. 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 financial statements. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2022 | |
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 24,718,035 370,770 1.5 926,374 555,604 330,702 407,595 20 8 1 1 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 62,500 187,500 The Partnership pays the Investment Manager during the Operating Period a structuring fee in an amount equal to 1.5 4,376 44,524 |
Investments in Finance Leases
Investments in Finance Leases | 3 Months Ended |
Mar. 31, 2022 | |
Investments In Finance Leases | |
Investments in Finance Leases | 4. Investments in Finance Leases At March 31, 2022 and December 31, 2021, net investments in finance leases consisted of the following: Schedule of Net Investments in Finance Leases March 31, 2022 December 31, 2021 (unaudited) Minimum rents receivable $ 18,414,142 $ 19,912,015 Estimated unguaranteed residual value 71,616 71,616 Unearned income (2,177,774 ) (2,234,627 ) Total $ 16,307,984 $ 17,749,004 |
Collateralized Loans Receivable
Collateralized Loans Receivable | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Collateralized Loans Receivable | 5. Collateralized Loans Receivable The Partnership has no allowance for loan losses or nonperforming loans at March 31, 2022 and December 31, 2021. The future principal maturities of the Partnership’s performing collateralized loans receivable at March 31, 2022 are as follows: Schedule of Future Principal Maturities As of March 31, (unaudited) 2023 $ 396,040 2024 282,122 2025 182,707 2026 — 2027 — Thereafter — Total $ 860,869 |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | 6. Other Assets As of March 31, 2022, other assets of $ 5,181,318 3,122,297 400,000 1,314,893 5,797,559 3,122,297 400,000 1,865,118 |
Loan Payable
Loan Payable | 3 Months Ended |
Mar. 31, 2022 | |
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 20,000,000 5,000,000 October 18, 2022 10,000,000 15,000,000 October 18, 2023 800,000 12,560,000 5.85 6.85 6.85 16,700,614 16,700,614 117,790 194,081 The future maturities of the Partnership’s loan payable at March 31, 2022 are as follows: Schedule of Future Maturities of Loan Payable Years ending March 31, (unaudited) 2023 $ 6,099,063 Total $ 6,099,063 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2022 | |
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 maturities. Fair value measurements and disclosures are based on a fair value hierarchy as determined by significant inputs used to measure fair value. The three levels of inputs within the fair value hierarchy are defined as follows: Level 1- Quoted prices in active markets for identical assets or liabilities. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuations in which all significant inputs are observable in the market. Level 3 - Valuation is modeled using significant inputs that are unobservable in the market. These unobservable inputs reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. The Partnership’s carrying values and approximate fair values of its financial instruments were as follows: Schedule of Fair Values of Financial Instruments March 31, 2022 December 31, 2021 Carrying Fair Level Carrying Fair Level (unaudited) (unaudited) Assets: Collateralized loans receivable $ 865,701 $ 865,701 3 $ 970,965 $ 970,965 3 Liabilities: Loan payable $ 6,136,129 $ 6,136,129 2 $ 8,189,304 $ 8,189,304 2 |
Indemnifications
Indemnifications | 3 Months Ended |
Mar. 31, 2022 | |
Indemnifications | |
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. |
Business Concentrations
Business Concentrations | 3 Months Ended |
Mar. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Business Concentrations | 10. Business Concentrations For the three months ended March 31, 2022, the Partnership had four lessees which accounted for approximately 20 16 16 12 18 14 12 10 47 39 14 69 14 At March 31, 2022, the Partnership had four lessees which accounted for approximately 21 16 14 10 18 13 13 11 48 39 13 72 13 10 |
Geographic Information
Geographic Information | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Geographic Information | 11. Geographic Information As of March 31, 2022 and December 31, 2021, all of the Partnership’s revenue and assets are based in the United States. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies As of March 31, 2022 and December 31, 2021, the Partnership has an unfunded commitment of $ 0 291,725 |
COVID-19
COVID-19 | 3 Months Ended |
Mar. 31, 2022 | |
Unusual or Infrequent Items, or Both [Abstract] | |
COVID-19 | 13. 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. During the three months ended March 31, 2022 and 2021, COVID-19 has had a negative impact on our business but an impairment loss was not deemed necessary to be 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 | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events In April 2022, the Partnership sold a portion of the infrastructure equipment for total net cash proceeds of $ 109,425 111,510 2,085 On April 22, 2022, the Partnership sold, via a purchase and sale agreement, a portion of the infrastructure equipment for $ 362,425 317,213 45,212 54,364 308,061 In April 2022, the Partnership received notice of a court order stating that a Receiver has been appointed over all the real and personal property of the lease facility entered into on December 5, 2019 for furniture and kitchen equipment and vehicles. The Partnership is pursuing multiple options for liquidating the equipment including working with the Receiver and a with a third party to help in remarketing the equipment. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
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 443,605 |
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 March 31, 2022, 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 financial statements. During March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides optional expedients and exceptions for applying generally accepted accounting principles (“GAAP”) to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform, if certain criteria are met. Entities may elect the optional expedients and exceptions included in ASU 2020-04 as of March 12, 2020 and through December 31, 2022. The Partnership is currently assessing the effect that electing the optional expedients and exceptions included in ASU 2020-04 would have on its results of operations, financial position and cash flows. 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 financial statements. |
Investments in Finance Leases (
Investments in Finance Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments In Finance Leases | |
Schedule of Net Investments in Finance Leases | At March 31, 2022 and December 31, 2021, net investments in finance leases consisted of the following: Schedule of Net Investments in Finance Leases March 31, 2022 December 31, 2021 (unaudited) Minimum rents receivable $ 18,414,142 $ 19,912,015 Estimated unguaranteed residual value 71,616 71,616 Unearned income (2,177,774 ) (2,234,627 ) Total $ 16,307,984 $ 17,749,004 |
Collateralized Loans Receivab_2
Collateralized Loans Receivable (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Future Principal Maturities | The Partnership has no allowance for loan losses or nonperforming loans at March 31, 2022 and December 31, 2021. The future principal maturities of the Partnership’s performing collateralized loans receivable at March 31, 2022 are as follows: Schedule of Future Principal Maturities As of March 31, (unaudited) 2023 $ 396,040 2024 282,122 2025 182,707 2026 — 2027 — Thereafter — Total $ 860,869 |
Loan Payable (Tables)
Loan Payable (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Future Maturities of Loan Payable | The future maturities of the Partnership’s loan payable at March 31, 2022 are as follows: Schedule of Future Maturities of Loan Payable Years ending March 31, (unaudited) 2023 $ 6,099,063 Total $ 6,099,063 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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: Schedule of Fair Values of Financial Instruments March 31, 2022 December 31, 2021 Carrying Fair Level Carrying Fair Level (unaudited) (unaudited) Assets: Collateralized loans receivable $ 865,701 $ 865,701 3 $ 970,965 $ 970,965 3 Liabilities: Loan payable $ 6,136,129 $ 6,136,129 2 $ 8,189,304 $ 8,189,304 2 |
Organization and Nature of Op_2
Organization and Nature of Operations (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Limited Partners' Cumulative Cash Distributions | $ 49,335 | $ 259,051 |
Limited Partners [Member] | ||
Incentive distribution payments terms | we intended to pay cash distributions on a quarterly basis to our Limited Partners at 1.5% per quarter, the equivalent rate of 6.0% per annum, of each Limited Partners’ 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. | |
Distribution payable to limited partners quarterly | $ 730 | |
General partners [Member]. | ||
[custom:AmountDistributionsPayableToPartners] | $ 48,698 | |
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) | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Accounting Policies [Abstract] | |
Provision for loan and lease losses | $ 443,605 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||
Percentage of organizational and offering cost | 1.50% | |
Offering expenses | $ 370,770 | |
General partners offering expenses | $ 926,374 | |
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 | $ 187,500 | $ 187,500 |
Investment Manager [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||
Partner capital contributions | 24,718,035 | |
Repayment of partners offering expenses | 555,604 | |
Partners balance capital | $ 330,702 | 407,595 |
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 |
Structuring fee amount percentage | 1.50% | |
Payment for administrative fees | $ 4,376 | $ 44,524 |
Schedule of Net Investments in
Schedule of Net Investments in Finance Leases (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Investments In Finance Leases | ||
Minimum rents receivable | $ 18,414,142 | $ 19,912,015 |
Estimated unguaranteed residual value | 71,616 | 71,616 |
Unearned income | (2,177,774) | (2,234,627) |
Total | $ 16,307,984 | $ 17,749,004 |
Schedule of Future Principal Ma
Schedule of Future Principal Maturities (Details) | Mar. 31, 2022USD ($) |
Receivables [Abstract] | |
2023 | $ 396,040 |
2024 | 282,122 |
2025 | 182,707 |
2026 | |
2027 | |
Thereafter | |
Total | $ 860,869 |
Other Assets (Details Narrative
Other Assets (Details Narrative) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Other assets | $ 5,181,318 | $ 5,797,559 |
Infrastructure Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Other assets | 3,122,297 | 3,122,297 |
Fish Processing Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Other assets | 400,000 | 400,000 |
Truck [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Other assets | $ 1,314,893 | $ 1,865,118 |
Schedule of Future Maturities o
Schedule of Future Maturities of Loan Payable (Details) | Mar. 31, 2022USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 6,099,063 |
Total | $ 6,099,063 |
Loan Payable (Details Narrative
Loan Payable (Details Narrative) - Loan And Security Agreement [Member] - USD ($) | Oct. 18, 2019 | Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Short-Term Debt [Line Items] | |||||
Line of credit maximum borrowing capacity | $ 25,000,000 | ||||
Maturity date | Oct. 18, 2022 | Oct. 18, 2023 | |||
Line of credit | $ 12,560,000 | $ 800,000 | $ 12,560,000 | ||
Repayment of lines of credit | $ 16,700,614 | $ 16,700,614 | |||
Interest expense | $ 117,790 | $ 194,081 | |||
London Interbank Offered Rate (LIBOR) [Member] | |||||
Short-Term Debt [Line Items] | |||||
Derivative liability interest rate | 5.85% | 6.85% | 6.85% | 6.85% | |
Revolving Credit Facility [Member] | |||||
Short-Term Debt [Line Items] | |||||
Line of credit maximum borrowing capacity | $ 5,000,000 | $ 15,000,000 | $ 15,000,000 | ||
Term Loan [Member] | |||||
Short-Term Debt [Line Items] | |||||
Line of credit maximum borrowing capacity | $ 20,000,000 | $ 10,000,000 | $ 10,000,000 |
Schedule of Fair Values of Fina
Schedule of Fair Values of Financial Instruments (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Carrying value of collateralized loan receivable | $ 865,701 | $ 970,965 |
Carrying value of Loans Payable | 6,136,129 | 8,189,304 |
Fair Value, Inputs, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Carrying value of collateralized loan receivable | 865,701 | 970,965 |
Fair value of collateralized loan receivable | 865,701 | 970,965 |
Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Carrying value of Loans Payable | 6,136,129 | 8,189,304 |
Fair value of collateralized loan payable | $ 6,136,129 | $ 8,189,304 |
Business Concentrations (Detail
Business Concentrations (Details Narrative) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Finance Leases [Member] | Lessee 1 [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk threshold percentage | 20.00% | 18.00% |
Finance Leases [Member] | Lessee 2 [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk threshold percentage | 16.00% | 14.00% |
Finance Leases [Member] | Lessee 3 [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk threshold percentage | 16.00% | 12.00% |
Finance Leases [Member] | Lessee 4 [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk threshold percentage | 12.00% | 10.00% |
Interest Income [Member] | Promissory Note One [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk threshold percentage | 47.00% | 69.00% |
Interest Income [Member] | Promissory Note Two [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk threshold percentage | 39.00% | 14.00% |
Interest Income [Member] | Promissory Note Three [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk threshold percentage | 14.00% | |
Investment in Finance Leases [Member] | Lessee 1 [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk threshold percentage | 21.00% | 18.00% |
Investment in Finance Leases [Member] | Lessee 2 [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk threshold percentage | 16.00% | 13.00% |
Investment in Finance Leases [Member] | Lessee 3 [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk threshold percentage | 14.00% | 13.00% |
Investment in Finance Leases [Member] | Lessee 4 [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk threshold percentage | 10.00% | 11.00% |
Investment in Collateralized Loans Receivable [Member] | Promissory Note One [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk threshold percentage | 48.00% | 72.00% |
Investment in Collateralized Loans Receivable [Member] | Promissory Note Two [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk threshold percentage | 39.00% | 13.00% |
Investment in Collateralized Loans Receivable [Member] | Promissory Note Three [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk threshold percentage | 13.00% | 10.00% |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Unfunded commitments | $ 0 | $ 291,725 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] - USD ($) | Apr. 22, 2022 | Apr. 30, 2022 |
Subsequent Event [Line Items] | ||
Total cash proceeds | $ 109,425 | |
Property plant and equipment | 111,510 | |
Gain loss on sale of property plant equipment | $ 2,085 | |
Purchase and sale agreement [Member] | ||
Subsequent Event [Line Items] | ||
Total cash proceeds | $ 362,425 | |
Property plant and equipment | 317,213 | |
Gain loss on sale of property plant equipment | 45,212 | |
Down payment received | 54,364 | |
Remaining due amount | $ 308,061 |