Note 10 - Finance leases receivable
|9 Months Ended|
Sep. 30, 2018
|Note 10 - Finance leases receivable||
Note 10 Finance leases receivable
Mentor Partner I
On January 16, 2018, Partner I entered into a Master Equipment Lease Agreement with G FarmaLabs Limited and GFarma Brands, Inc. (the GFarma Entities) dated January 16, 2018, and amended March 7, April 4, June 20 and September 7, 2018. Partner I acquired and delivered manufacturing equipment as determined by GFarma Entities under sales-type finance leases. The Company recorded equipment sales revenue of $79,770 for the three months ended September 30, 2018 and $549,854 for the nine months ended September 30, 2018. At September 30, 2018, all leased equipment under the finance leases receivable is located in California.
The net investment included in finance leases at September 30, 2018 are as follows:
There were no finance leases receivable at December 31, 2017.
At September 30, 2018, minimum future payments receivable under G Farma finance leases were as follows:
Mentor Partner II
On February 11, 2018, Partner II entered into a Master Equipment Lease Agreement with Pueblo West, a Colorado limited liability company (Pueblo West). No equipment had been delivered to Pueblo West as of September 30, 2018. Subsequent to quarter end, on October 13, 2018, equipment valued at $458,472 was delivered to Pueblo West in Colorado. See Note 23.
We review the finance leases receivables by individual account to determine expected collectability. The allowance for credit losses is an estimate of the losses inherent in our finance receivables taking into consideration past loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrowers ability to repay, estimated value of underlying collateral and current economic conditions. No allowance is recorded at September 30, 2018.
The Company records prepayments on leases as a liability under deferred revenue.
The entire disclosure for lessor entity's leasing arrangements for operating, capital and leveraged leases.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef