Concentration of Credit Risk

12 Months Ended

Dec. 31, 2013

Concentration of Credit Risk [Abstract]

Concentration of Credit Risk

5.Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash deposits and receivables.  The Company places its deposits with financial institutions and other creditworthy issuers and limits the amount of credit exposure to any one party.

For the year ended December 31, 2013 the Company had four significant customers, which accounted for 23%, 19%, 11% and 10%, respectively, of lease revenue.  For the year ended December 31, 2012 the Company had four significant customers, which accounted for 15%, 13%, 11% and 10%, respectively, of lease revenue.

At December 31, 2013, the Company had receivables from two customers totaling $1,231,500, representing 40% of the Company’s total receivables.  Of that amount, $984,000 was paid in early 2014.

At December 31, 2012, the Company had a receivable from one lessee of $3,300,000, representing 71% of the Company’s total receivables. Of that amount, $180,000 was paid in early 2013. At December31, 2012, the Company had an allowance for doubtful accounts totaling $2,419,400 related to this customer for the amount owed in excess of the security deposits held by the Company.  The customer was declared bankrupt during 2013 and the Company wrote off all receivables due from that customer in 2013, net of security deposits and refundable reserves held by the Company.

As of December 31, 2013, minimum future lease revenue payments receivable under noncancelable leases were as follows:

	Operating		Finance
Years ending	leases		leases
2014	$	17,648,900	$	238,900
2015		10,932,800		182,400
2016		9,508,400		182,400
2017		5,927,000		171,900
2018		2,552,800		32,500
Thereafter		12,570,800		-
	$	59,140,700	$	808,100

Minimum lease payments due under the Company’s finance lease include interest income totaling $300,100.