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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2002
( ) TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission File Number: 33-69996
COMMONWEALTH INCOME & GROWTH FUND I
(Exact name of registrant as specified in its charter)
Pennsylvania 23-2735641
(State or other jurisdiction of (I.R.S. Employer Identification Number)
incorporation or organization)
470 John Young Way Suite 300
Exton, Pennsylvania 19341
(Address, including zip code, of principal executive offices)
(610) 594-9600
(Registrant's telephone number including area code)
Indicate by check mark whether the registrant (i) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months, and (ii) has been subject to such filing
requirements for the past 90 days:
YES [X] NO [ ]
Commonwealth Income & Growth Fund I
Balance Sheets
June 30 December 31,
2002 2001
----------------------------------------
(unaudited)
Assets
Cash and cash equivalents $ 5 $ 1,082
Lease income receivable, net of allowance for doubtful
accounts reserve of $299,578 as of June 30, 2002 and
December 31, 2001. 276,824 300,956
Other receivables - Commonwealth Capital Corp - 17,904
Other receivables 200 200
Prepaid fees 3,000 -
----------------------------------------
280,029 320,142
----------------------------------------
Computer equipment, at cost 2,727,893 3,312,836
Accumulated depreciation (1,892,565) (2,556,037)
----------------------------------------
835,328 756,799
----------------------------------------
Equipment acquisition costs and deferred expenses, net 34,175 31,379
----------------------------------------
Total assets $1,149,532 $1,108,320
========================================
Liabilities and Partners' Capital
Liabilities
Accounts payable 21,564 30,013
Accounts payable - Other LP Affiliates 104,611 105,886
Accounts payable - General Partner 56,584 29,924
Accounts payable - Commonwealth Capital Corp 28,193 -
Unearned lease income 14,110 3,641
Notes payable 571,564 500,585
----------------------------------------
Total liabilities 796,626 670,049
----------------------------------------
Partners' Capital
General partner 1,000 1,000
Limited partners 351,906 437,271
----------------------------------------
Total partners' capital 352,906 438,271
----------------------------------------
Total Liabilities and partners' capital $1,149,532 $1,108,320
========================================
see accompanying notes to financial statements
Commonwealth Income & Growth Fund I
Statements of Income
Three Months Ended Six Months Ended
June 30 June 30
2002 2001 2002 2001
--------------------------------- -----------------------------------
(unaudited) (unaudited)
Income
Lease $ 109,886 $ 189,672 $ 215,964 $ 383,071
Interest and other 576 828 2,573 1,534
Gain on sale of computer equipment 11,685 26,658 17,726 68,408
--------- ---------- --------- ---------
Total Income 122,147 217,158 236,263 453,013
--------- ---------- --------- ---------
Expenses
Operating, excluding depreciation 70,069 37,731 136,810 103,977
Equipment management fee - General Partner 5,494 9,409 10,798 19,079
Interest 11,690 1,744 20,417 2,936
Depreciation 72,639 113,475 143,910 244,731
Amortization of equipment
acquisition costs and deferred expenses 4,436 3,180 8,385 6,391
Bad debt expense 1,308 - 1,308 -
--------- ---------- --------- ---------
Total expenses 165,636 165,539 321,628 377,114
--------- ---------- --------- ---------
Net (loss) income $ (43,489) $ 51,619 $ (85,365) $ 75,899
========= ========== ========= =========
Net (loss) income per equivalent limited
partnership unit $ (0.07) $ 0.08 $ (0.14) $ 0.12
========= ========== ========= =========
Weighted Average number of equivalent limited
partnership units outstanding during the period 631,124 631,124 631,124 631,124
========= ========== ========= =========
see accompanying notes to financial statements
Commonwealth Income & Growth Fund I
Statements of Partners' Capital
For the Six Months ended June 30, 2002 (unaudited)
General Limited
Partner Partner General Limited
Units Units Partner Partner Total
----------------------------------------------------------------------------
Partners' capital - December 31, 2001 50 631,124 $ 1,000 $ 437,271 $ 438,271
Net (loss) - (85,365) (85,365)
----------------------------------------------------------------------------
Partners' capital - June 30, 2002 50 631,124 $ 1,000 $ 351,906 $ 352,906
============================================================================
see accompanying notes to financial statements
Commonwealth Income & Growth Fund I
Statements of Cash Flow
For the Six Months Ended June 30, 2002 and 2001
June 30,
2002 2001
---------- ---------
(unaudited)
Operating activities
Net (loss) income $ (85,365) $ 75,899
Adjustments to reconcile net (loss) income to net cash
provided by operating activities
Depreciation and amortization 152,295 251,122
(Gain) on sale of computer equipment (17,726) (68,408)
Other noncash activities included in
determination of net income (132,648) (40,352)
Changes in assets and liabilities
(Increase) decrease in assets
Lease income receivable 24,132 (10,198)
Accounts receivable, Common Capital Corp. 17,904 (8,950)
Prepaid fees (3,000) -
Increase (decrease) in liabilities
Accounts payable (8,449) 154,046
Accounts payable, Common Capital Corp. 28,193 (25)
Accounts payable, affiliated limited
partnerships (1,275) (20,242)
Accounts payable, General Partner 26,660 31,970
Unearned lease income 10,469 -
---------- ---------
Net cash provided by operating activities 11,190 364,862
---------- ---------
Investing activities:
Capital Expenditures (25,000) (79,579)
Net proceeds from the sale of computer equipment 23,914 70,523
Equipment acquisition fees paid to General Partner (9,145) (5,777)
---------- ---------
Net cash (used in) investing activities (10,231) (14,833)
---------- ---------
Financing activities:
Distributions to partners - (315,490)
Debt Placement fee paid to the General Partner (2,036) (648)
---------- ---------
Net cash (used in) financing activities (2,036) (316,138)
---------- ---------
Net (decrease) increase in cash and equivalents (1,077) 33,891
Cash and cash equivalents, beginning of period 1,082 64,577
---------- ---------
Cash and cash equivalents, end of period $ 5 $ 98,468
========== =========
see accompanying notes to financial statements
NOTES TO FINANCIAL STATEMENTS
1. Business Commonwealth Income & Growth Fund I (the
"Partnership") is a limited partnership organized in
the Commonwealth of Pennsylvania to acquire, own and
lease various types of computer peripheral equipment
and other similar capital equipment, which will be
leased primarily to U.S. corporations and
institutions. Commonwealth Capital Corp, on behalf of
the Partnership and other affiliated partnerships,
acquires computer equipment subject to associated
debt obligations and lease revenue and allocates a
participation in the cost, debt and lease revenue to
the various partnerships based on certain risk
factors. The Partnership's General Partner is
Commonwealth Income & Growth Fund, Inc. (the "General
Partner"), a Pennsylvania corporation which is an
indirect wholly owned subsidiary of Commonwealth
Capital Corp. Approximately ten years after the
commencement of operations, the Partnership intends
to sell or otherwise dispose of all of its computer
equipment, make final distributions to partners, and
to dissolve. Unless sooner terminated, the
Partnership will continue until December 31, 2004.
2. Summary of Basis of Presentation
Significant
Accounting The financial information presented as of any date
Policies other than December 31 has been prepared from the
books and records without audit. Financial
information as of December 31 has been derived from
the audited financial statements of the Partnership,
but does not include all disclosures required by
generally accepted accounting principles. In the
opinion of management, all adjustments, consisting
only of normal recurring adjustments, necessary for a
fair presentation of the financial information for
the periods indicated have been included. For further
information regarding the Partnership's accounting
policies, refer to the financial statements and
related notes included in the Partnership's annual
report on Form 10-K for the year ended December 31,
2001. Operating results for the six-month period
ended June 30, 2002 are not necessarily indicative of
financial results that may be expected for the full
year ended December 31, 2002.
Revenue Recognition
Through June 30, 2002, the Partnership has only
entered into operating leases. Lease revenue is
recognized on a monthly basis in accordance with the
terms of the operating lease agreements.
Use of Estimates
The preparation of financial statements in conformity
with generally accepted accounting principles
requires management to make estimates and assumptions
that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements
and the reported amounts of revenues and expenses
during the reporting period. Actual results could
differ from those estimates.
Long-Lived Assets
The Partnership evaluates its long-lived assets when
events or circumstances indicate that the value of
the asset may not be recoverable. The Partnership
determines whether an impairment exists by estimating
the undiscounted cash flows to be generated by each
asset. If the estimated undiscounted cash flows are
less than the carrying value of the asset then an
impairment exists. The amount of the impairment is
determined based on the difference between the
carrying value and the fair value. Fair value is
determined based on estimated discounted cash flows
to be generated by the asset. As of June 30, 2002,
there is no impairment.
Depreciation on computer equipment for financial
statement purposes is based on the straight-line
method over estimated useful lives of four years.
Intangible Assets
Equipment acquisition costs and deferred expenses are
amortized on a straight-line basis over two- to-four
year lives. Unamortized acquisition fees are charged
to amortization expense when the associated leased
equipment is sold.
Cash and Cash Equivalents
The Company considers all highly liquid investments
with maturity of three months or less to be cash
equivalents.
Income Taxes
The Partnership is not subject to federal income
taxes; instead, any taxable income (loss) is passed
through to the partners and included on their
respective income tax returns.
Taxable income differs from financial statement net
income as a result of reporting certain income and
expense items for tax purposes in periods other than
those used for financial statement purposes,
principally relating to depreciation, amortization,
and lease income.
Offering Costs
Offering costs were payments for selling commissions,
dealer manager fees, professional fees and other
offering expenses relating to the syndication.
Selling commissions were 7% of the partners'
contributed capital and dealer manager fees were 2%
of the partners' contributed capital. These costs
have been deducted from partnership capital in the
accompanying financial statements.
Net Income (Loss) Per Equivalent Limited Partnership
Unit
The net income (loss) per equivalent limited
partnership unit is computed based upon net income
(loss) allocated to the limited partners and the
weighted average number of equivalent limited partner
units outstanding during the period.
3. Computer The Partnership is the lessor of equipment under
Equipment operating leases with periods ranging from 14 to 48
months. In general, associated costs such as repairs
and maintenance, insurance and property taxes are
paid by the lessee.
The Partnership's share of the computer equipment in
which they participate with other partnerships at
June 30, 2002 and December 31, 2001 was approximately
$519,000 and $469,000, respectively, which is
included in the Partnership's fixed assets on their
balance sheet, and the total cost of the equipment
shared by the Partnership with other partnerships at
June 30, 2002 and December 31, 2001 was approximately
$2,967,000 and $2,867,000, respectively. The
Partnership's share of the outstanding debt
associated with this equipment at June 30, 2002 and
December 31, 2001 was approximately $353,000 and
$387,000, respectively, which is included in the
Partnership's liabilities on the balance sheet, and
the total outstanding debt at June 30, 2002 and
December 31, 2001 related to the equipment shared by
the Partnership was approximately $2,021,000 and
$2,338,000, respectively.
The following is a schedule of future minimum rentals
on noncancellable operating leases at June 30, 2002:
Amount
------------------------------------------------------------
Six months ended December 31, 2002 $ 185,000
Year ended December 31, 2003 341,000
Year ended December 31, 2004 165,000
Year ended December 31, 2005 7,000
Year ended December 31, 2006 3,000
------------
$ 701,000
============
4. Notes Payable Notes payable consisted of the following:
June 30 December 31
2002 2001
--------------------------------------------------------------------------------
Installment notes payable to Banks, interest
ranging from 7.50% to 9.50%; due in monthly
installments ranging from $182 to $1,320,
including interest, with final payments due
from January through December 2003. $ 40,036 $ 12,584
Installment notes payable to Banks, interest
ranging from 6.25% to 9.25%; due in monthly
installments ranging from $138 to $7,720,
including interest, with final payments due
from January through December 2004. 531,528 488,001
---------- ----------
$ 571,564 $ 500,585
========== ==========
These notes are secured by specific computer
equipment and are nonrecourse liabilities of the
Partnership. Aggregate maturities of notes payable
for each of the periods subsequent to June 30, 2002
are as follows:
Amount
--------------------------------------------------------------
Six months ended December 31, 2002 $ 143,477
Year ended December 31, 2003 284,346
Year ended December 31, 2004 143,741
------------
$ 571,564
============
5. Supplemental Other noncash activities included in the
Cash Flow determination of net income are as follows:
Information
Six months ended June 30, 2002 2001
- ----------------------------------------------------------------------------------------------
Lease income, net of interest expense on
notes payable realized as a result of direct
payment of principal by lessee to bank $ 132,648 $ 40,352
No interest or principal on notes payable was paid by
the Partnership because direct payment was made by
lessee to the bank in lieu of collection of lease
income and payment of interest and principal by the
Partnership.
Noncash investing and financing activities include
the following:
Six months ended June 30, 2002 2001
- ----------------------------------------------------------------------------------------------
Debt assumed in connection with purchase
of computer equipment $ 203,627 $ 15,427
==============================================================================================
6. Litigation The Partnership, thru Commonwealth Capital Corp, has
initiated a lawsuit against a customer for the
non-return of leased equipment. Management believes
that the Partnership will prevail in this matter; the
outcome of this uncertainty will not have a material
adverse impact to the financial statements of the
Partnership.
Item 2: Management's Discussion and Analysis of Financial Condition and
Results of Operations
CRITICAL ACCOUNTING POLICIES
Financial Reporting Release No. 60, which was released by the Securities and
Exchange Commission, requires all companies to include a discussion of critical
accounting policies or methods used in the preparation of financial statements.
Our significant accounting policies are described in Note 1 of the Notes to the
Consolidated Financial Statements. The significant accounting policies that we
believe are the most critical to aid in fully understanding our reported
financial results include the following:
COMPUTER EQUIPMENT
Commonwealth Capital Corp, on behalf of the Partnership and other affiliated
partnerships, acquires computer equipment subject to associated debt obligations
and lease revenue and allocates a participation in the cost, debt and lease
revenue to the various partnerships based on certain risk factors.
REVENUE RECOGNITION
Through June 30, 2002, the Partnership has only entered into operating leases.
Lease revenue is recognized on a monthly basis in accordance with the terms of
the operating lease agreements.
LONG-LIVED ASSETS
The Partnership evaluates its long-lived assets when events or circumstances
indicate that the value of the asset may not be recoverable. The Partnership
determines whether an impairment exists by estimating the undiscounted cash
flows to be generated by each asset. If the estimated undiscounted cash flows
are less than the carrying value of the asset then an impairment exists. The
amount of the impairment is determined based on the difference between the
carrying value and the fair value. Fair value is determined based on estimated
discounted cash flows to be generated by the asset. Depreciation on computer
equipment for financial statement purposes is based on the straight-line method
over estimated useful lives of four years.
Liquidity and Capital Resources
The Partnership's primary source of capital for the six months ended June 30,
2002 was net proceeds received from the sale of equipment of approximately
$24,000. The primary source of capital for the six months ended June 30, 2001
was cash from operations of approximately $365,000. Net proceeds received from
sale of equipment for the six months ended June 30, 2001 was approximately
$71,000. The primary use of cash for the six months ended June 30, 2002 and 2001
was for capital expenditures of new equipment of approximately $25,000 and
$80,000, respectively. There were payments of preferred distributions to
partners of approximately $315,000 for the six months ended June 30, 2001. There
were no payments of preferred distributions to partners for the six months ended
June 30, 2002.
For the six month period ended June 30, 2002, the Partnership generated cash
flows from operating activities of $11,000, which includes a net gain from the
sale of computer equipment of $18,000, and depreciation and amortization
expenses of $152,000. Other noncash activities included in the determination of
net income include direct payments of lease income by lessees to banks of
$133,000.
For the six month period ended June 30, 2001, the Partnership generated cash
flows from operating activities of $365,000, which includes a net gain from the
sale of computer of $68,000, and depreciation and amortization expenses of
$251,000. Other noncash activities included in the determination of net income
include direct payments of lease income by lessees to banks of $40,000.
Cash is invested in money market accounts that invest directly in treasury
obligations pending the Partnership's use of such funds to purchase additional
computer equipment, to pay Partnership expenses or to make distributions to the
Partners.
The Partnership's investment strategy of acquiring computer equipment and
generally leasing it under "triple-net leases" to operators who generally meet
specified financial standards minimizes the Partnership's operating expenses. As
of June 30, 2002, the Partnership had future minimum rentals on non-cancelable
operating leases of $185,000 for the balance of the year ending December 31,
2002 and $516,000 thereafter. At June 30, 2002, outstanding debt was $572,000,
with interest rates ranging from 6.25% to 9.50%, payable through December 2004.
The Partnership's cash from operations is expected to continue to be adequate to
cover all operating expenses, liabilities and preferred distributions to
Partners during the next 12-month period. If available Cash Flow or Net
Disposition Proceeds are insufficient to cover the Partnership expenses and
liabilities, the Partnership will attempt to obtain additional funds by
disposing of or refinancing Equipment, or by borrowing within its permissible
limits. The Partnership may, from time to time, reduce the distributions to its
Partners if it deems necessary. Since the Partnership's leases are on a
"triple-net" basis, no reserve for maintenance and repairs are deemed necessary.
The Partnership's share of the computer equipment in which they participate with
other partnerships at June 30, 2002 and December 31, 2001 was approximately
$519,000 and $469,000, respectively, which is included in the Partnership's
fixed assets on their balance sheet, and the total cost of the equipment shared
by the Partnership with other partnerships at June 30, 2002 and December 31,
2001 was approximately $2,967,000 and $2,867,000, respectively. The
Partnership's share of the outstanding debt associated with this equipment at
June 30, 2002 and December 31, 2001 was approximately $353,000 and $387,000,
respectively, which is included in the Partnership's liabilities on the balance
sheet, and the total outstanding debt at June 30, 2002 and December 31, 2001
related to the equipment shared by the Partnership was approximately $2,021,000
and $2,338,000, respectively.
Results of Operations
Three Months Ended June 30, 2002 compared to Three Months Ended June 30, 2001
- -----------------------------------------------------------------------------
For the quarter ended June 30, 2002, the Partnership recognized income of
$122,000 and expenses of $165,000, resulting in a net loss of $43,000. For the
quarter ended June 30, 2001, the Partnership recognized income of $217,000 and
expenses of $165,000, resulting in net income of $52,000.
Lease income decreased by 42% to $109,000 for the quarter ended June 30, 2002,
from $190,000 for the quarter ended June 30, 2001, primarily due to the fact
that more lease agreements terminated than new lease agreements entered into
since the quarter ended June 30, 2001, and that the partnership has stopped
recording revenue on its Gtronics lease arrangement, due to the fact that the
defendant has returned some equipment, but not the proper equipment as stated in
the master lease agreement.
Operating expenses, excluding depreciation, primarily consist of accounting,
legal, and outside service fees. The expense increased 86%, to approximately
$70,000 for the quarter ended June 30, 2002, from $38,000 for the quarter ended
June 30, 2001. There was an increase in reimbursable expenses with the
administration and operation of the Partnership charged by Commonwealth Capital
Corp., a related party, of approximately $11,000, an increase in recruiting fees
of approximately $3,000, an increase in insurance of approximately $5,000, an
increase in due diligence of approximately $5,000, and an increase in outside
office services of approximately $3,000.
The equipment management fee is equal to 5% of the gross lease revenue
attributable to equipment that is subject to operating leases. The equipment
management fee decreased 42% to approximately $5,000 for the quarter ended June
30, 2002, from $9,000 for the quarter ended June 30, 2001, which is consistent
with the decrease in lease revenue.
Depreciation and amortization expenses consist of depreciation on computer
equipment and amortization of equipment acquisition fees. The expenses decreased
34% to approximately $77,000 for the quarter ended June 30, 2002, from $117,000
for the quarter ended June 30, 2001 due to the older equipment becoming fully
depreciated and certain acquisition and finance fees being fully amortized and
only a small amount of new additions.
The Partnership sold computer equipment with no net book value for the quarter
ended June 30, 2002, for a net gain of $12,000. The Partnership sold computer
equipment with a net book value of approximately $2,000 for the quarter ended
June 30, 2001, for a net gain of $27,000.
Interest expense increased to $12,000 for the quarter ended June 30, 2002 from
$2,000 for the quarter ended June 30, 2001; primarily due to the increase in
equipment purchased that carry an outstanding debt.
Six Months Ended June 30, 2002 compared to Six Months Ended June 30, 2001
- -------------------------------------------------------------------------
For the six months ended June 30, 2002, the Partnership recognized income of
$236,000 and expenses of $321,000, resulting in a net loss of $85,000. For the
six months ended June 30, 2001, the Partnership recognized income of $453,000
and expenses of $377,000, resulting in net income of $76,000.
Lease income decreased by 44% to $216,000 for the six months ended June 30,
2002, from $383,000 for the six months ended June 30, 2001, primarily due to the
fact that more lease agreements terminated than new lease agreements entered
into since the six months ended June 30, 2001, and that the partnership has
stopped recording revenue on its Gtronics lease arrangement, due to the fact
that the defendant has returned some equipment, but not the proper equipment as
stated in the master lease agreement.
Operating expenses, excluding depreciation, primarily consist of accounting,
legal, and outside service fees. The expense increased 32 %, to approximately
$137,000 for the six months ended June 30, 2002, from $104,000 for the six
months ended June 30, 2001. There was an increase in reimbursable expenses with
the administration and operation of the Partnership charged by Commonwealth
Capital Corp., a related party, of approximately $22,000, an increase in
marketing of approximately $5,000, and an increase in due diligence of
approximately $5,000.
The equipment management fee is equal to 5% of the gross lease revenue
attributable to equipment that is subject to operating leases. The equipment
management fee decreased 43% to approximately $11,000 for the six months ended
June 30, 2002, from $19,000 for the six months ended June 30, 2001, which is
consistent with the decrease in lease revenue.
Depreciation and amortization expenses consist of depreciation on computer
equipment and amortization of equipment acquisition fees. The expenses decreased
39% to approximately $152,000 for the six months ended June 30, 2002, from
$251,000 for the six months ended June 30, 2001 due to the older equipment
becoming fully depreciated and certain acquisition and finance fees being fully
amortized and only a small amount of new additions.
The Partnership sold computer equipment with a net book value of $6,000 for the
six months ended June 30, 2002, for a net gain of $18,000. The Partnership sold
computer equipment with a net book value of $2,000 for the six months ended June
30, 2001, for a net gain of $68,000.
Interest expense increased to $20,000 for the six months ended June 30, 2002
from $3,000 for the six months ended June 30, 2001, primarily due to the
increase in equipment purchased that carry an outstanding debt.
RECENT ACCOUNTING PRONOUNCEMENTS
SFAS 145
In April 2002, the FASB issued SFAS No. 145, "Recission of FASB statements No.
4,44 and 64, Amendment of FASB statement No. 13, and Technical Corrections"
("SFAS 145"). FASB No. 4 required that gains and losses from extinguishments of
debt that were included in the determination of net income be aggregated and, if
material, be classified as an extraordinary item, net of related income tax.
Effective January 1, 2003, pursuant to SFAS 145, the treatment of debt is to be
included in "Other Income" in the Financial Statements. SFAS 145 has no affect
on our financial statements at this time.
Part II: OTHER INFORMATION
Commonwealth Income & Growth Fund I
Item 1. Legal Proceedings.
On or about May 8, 2000, a complaint captioned
Commonwealth Capital Corp V. Gtronics, Inc. was filed
by Commonwealth Capital Corp against Gtronics, Inc.
(formerly known as Wang Laboratories, Inc.) with the
Federal District Court of the Eastern District of
Pennsylvania, No. 00-CV-2381. The complaint alleges
that the named defendant has not returned the proper
equipment stated in the master lease agreement.
The defendant has filed for a Summary Judgement on
February 20, 2001, and the plaintiff has filed an
opposition to this Summary Judgment, and it remains
pending.
On September 29, 2001, the Federal District Court of
the Eastern District of Pennsylvania denied the
defendant's request for Summary Judgment.
Item 2. Changes in Securities
Inapplicable
Item 3. Defaults Upon Senior Securities.
Inapplicable
Item 4. Submission of Matters to a Vote of
Securities Holders.
Inapplicable
Item 5. Other Information.
Inapplicable
Item 6. Exhibits and Reports on Form 8-K.
a) Exhibits:
1. SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
CERTIFICATION OF CHIEF EXECUTIVE OFFICER
PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Commonwealth Income & Growth Fund I,
(the "Company") on Form 10-Q for the period ending June 30, 2002, as filed with
the Securities and Exchange Commission on the date hereof (the "Report"), I,
George S. Springsteen, Chief Executive Officer of the Company, certify, pursuant
to 18 U.S.C. ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act
of 2002, that:
(1) The Report fully complies with the requirements of section 13(a) or
15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all
material respects, the financial condition and result of operations of the
Company.
/s/ George S. Springsteen
- ---------------------------
George S. Springsteen
Chief Executive Officer
August 19, 2002
In connection with the Quarterly Report of Commonwealth Income & Growth Fund I,
(the "Company") on Form 10-Q for the period ending June 30, 2002, as filed with
the Securities and Exchange Commission on the date hereof (the "Report"), I,
Salvatore R. Barila, Controller of the Company, certify, pursuant to 18 U.S.C.
ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of 2002,
that:
(1) The Report fully complies with the requirements of section 13(a) or
15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all
material respects, the financial condition and result of operations of the
Company.
/s/ Salvatore R. Barila
- ----------------------------
Salvatore R. Barila
Controller
August 19, 2002
b) Report on Form 8-K: None
Item 7.A QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK
The Partnership believes its exposure to market risk
is not material due to the fixed interest rate of its
long-term debt.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
COMMONWEALTH INCOME & GROWTH
FUND I
BY: COMMONWEALTH INCOME &
GROWTH FUND, INC. General Partner
August 19, 2002 By: /s/ George S. Springsteen
- ------------------ -----------------------------
Date George S. Springsteen
President