Investment in Leasing Operations:

12 Months Ended

Dec. 29, 2012

Investment in Leasing Operations:

Investment in Leasing Operations:

4.             Investment in Leasing Operations:

Investment in leasing operations consists of the following:

	December 29, 2012			December 31, 2011
Direct financing and sales-type leases:
Minimum lease payments receivable	$	33,094,100		$	27,413,300
Estimated residual value of equipment	2,925,900			2,764,400
Unearned lease income net of initial direct costs deferred	(5,155,400		)	(4,217,000		)
Security deposits	(2,882,400		)	(2,448,800		)
Equipment installed on leases not yet commenced	8,443,600			6,489,200
Total investment in direct financing and sales-type leases	36,425,800			30,001,100
Allowance for credit losses	(775,800		)	(803,800		)
Net investment in direct financing and sales-type leases	35,650,000			29,197,300
Operating leases:
Operating lease assets	1,564,300			1,218,900
Less accumulated depreciation and amortization	(1,056,000		)	(567,300		)
Net investment in operating leases	508,300			651,600
Total net investment in leasing operations	$	36,158,300		$	29,848,900

As of December 29, 2012, the $36.2 million total net investment in leases consists of $13.5 million classified as current and $22.7 million classified as long-term.  As of December 31, 2011, the $29.8 million total net investment in leases consists of $11.7 million classified as current and $18.1 million classified as long-term.

As of December 29, 2012, no customer had leased assets totaling more than 10% of the Company’s total assets.  As of December 31, 2011, leased assets with one customer approximated 12% of the Company’s total assets.

Future minimum lease payments receivable under lease contracts and the amortization of unearned lease income, net of initial direct costs deferred, is as follows as of December 29, 2012:

	Direct Financing and Sales-Type Leases				Operating Leases
Fiscal Year	Minimum Lease Payments Receivable		Income Amortization		Minimum Lease Payments Receivable
2013	$	17,848,200	$	3,745,300	$	1,419,100
2014	11,013,100		1,214,300		132,400
2015	3,734,000		190,100		—
2016	498,800		5,700		—
2017	—		—		—
Thereafter	—		—		—
	$	33,094,100	$	5,155,400	$	1,551,500

The activity in the allowance for credit losses for leasing operations during 2012 and 2011, respectively, is as follows:

	December 29, 2012			December 31, 2011
Balance at beginning of period	$	803,800		$	907,800
Provisions charged to expense	(47,600		)	(43,400		)
Recoveries	251,000			349,700
Deductions for amounts written-off	(231,400		)	(410,300		)
Balance at end of period	$	775,800		$	803,800

The Company’s investment in direct financing and sales-type leases (“Investment In Leases”) and allowance for credit losses by loss evaluation methodology are as follows:

	December 29, 2012				December 31, 2011
	Investment In Leases		Allowance for Credit Losses		Investment In Leases		Allowance for Credit Losses
Collectively evaluated for loss potential	$	36,425,800	$	775,800	$	30,001,100	$	803,800
Individually evaluated for loss potential	—		—		—		—
Total	$	36,425,800	$	775,800	$	30,001,100	$	803,800

The Company’s key credit quality indicator for its investment in direct financing and sales-type leases is the status of the lease, defined as accruing or non-accruing.  Leases that are accruing income are considered to have a lower risk of loss.  Non-accrual leases are those that the Company believes have a higher risk of loss.  The following table sets forth information regarding the Company’s accruing and non-accrual leases.  Delinquent balances are determined based on the contractual terms of the lease.

	December 29, 2012
	0-60 Days Delinquent and Accruing		61-90 Days Delinquent and Accruing		Over 90 Days Delinquent and Accruing		Non-Accrual		Total
Middle-Market	$	34,901,300	$	—	$	—	$	—	$	34,901,300
Small-Ticket	1,517,700		—		—		6,800		1,524,500
Total Investment in Leases	$	36,419,000	$	—	$	—	$	6,800	$	36,425,800

	December 31, 2011
	0-60 Days Delinquent and Accruing		61-90 Days Delinquent and Accruing		Over 90 Days Delinquent and Accruing		Non-Accrual		Total
Middle-Market	$	25,650,500	$	932,100	$	—	$	—	$	26,582,600
Small-Ticket	3,351,400		48,300		—		18,800		3,418,500
Total Investment in Leases	$	29,001,900	$	980,400	$	—	$	18,800	$	30,001,100