Net Investment in Finance Lease

9 Months Ended

Sep. 30, 2017

Net Investment in Finance Lease

As of September 30, 2017 and December 31, 2016, we had no net investment in finance lease on non-accrual status and no net investment in finance lease that was past due 90 days or more and still accruing.

Net investment in finance lease consisted of the following:



	September 30,			December 31,
	2017			2016
Minimum rents receivable	$	1,386,793		$	3,632,897
Initial direct costs	—			22,114
Unearned income	(106,820		)	(192,007		)
Net investment in finance lease	$	1,279,973		$	3,463,004

On September 4, 2014, ICON Geo, LLC ("ICON Geo"), a joint venture owned 52% by us, 33.5% by ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P. (“Fund Fourteen”) and 14.5% by ICON ECI Partners L.P. (“ECI Partners”), each an entity also managed by our Investment Manager, purchased certain land-based seismic testing equipment for $10,677,018. Simultaneously, the seismic testing equipment was leased to Geokinetics Inc., Geokinetics USA, Inc. and Geokinetics Acquisition Company (collectively, “Geokinetics”) for three years. On February 15, 2017, we purchased all of ECI Partners’ limited liability company interests in ICON Geo for a purchase price of $501,794. As a result, ICON Geo is owned 66.5% by us and 33.5% by Fund Fourteen.

Upon lease expiration, Geokinetics is obligated to purchase all of the seismic testing equipment from ICON Geo at an agreed-upon purchase price. The lease expired on August 31, 2017 without Geokinetics satisfying its purchase obligations under the lease. On September 21, 2017, ICON Geo entered into a forbearance agreement with Geokinetics pursuant to which Geokinetics is obligated to (i) satisfy in full its remaining lease and purchase obligations of $1,546,790; and (ii) pay a penalty and forbearance fee totaling $137,340, all in nine installments, with the final installment to be paid by November 15, 2017. Geokinetics is currently in compliance with its obligations under the forbearance agreement.

ICON ECI Fund Sixteen 10-Q