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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 MARCH 31, 2003
( ) 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
March 31 December 31,
2003 2002
---------------------------------------
(unaudited)
Assets
Cash and cash equivalents $ 2,914 $ 438
Lease income receivable, net of allowance for doubtful
accounts reserve of $314,164 as of March 31, 2003
and December 31, 2002 252,146 250,141
Net investment in direct financing lease 29,361 31,620
Other receivables 200 200
---------------------------------------
284,621 282,399
---------------------------------------
Computer equipment, at cost 2,674,518 2,669,518
Accumulated depreciation (2,075,693) (2,009,051)
---------------------------------------
598,825 660,467
---------------------------------------
Equipment acquisition costs and deferred expenses, net 21,068 25,259
---------------------------------------
Total assets $ 904,514 $ 968,125
=======================================
Liabilities and Partners' Capital
Liabilities
Accounts payable $ 9,281 $ 5,184
Accounts payable - Other LP Affiliates 137,222 126,526
Accounts payable - General Partner 192,044 153,113
Accounts payable - Commonwealth Capital Corp. 21,075 17,641
Unearned lease income 19,631 19,769
Notes payable 374,196 444,732
---------------------------------------
Total liabilities 753,449 766,965
---------------------------------------
Partners' Capital
General partner 1,000 1,000
Limited partners 150,065 200,160
---------------------------------------
Total partners' capital 151,065 201,160
---------------------------------------
Total liabilities and partners' capital $ 904,514 $ 968,125
=======================================
see accompanying notes to financial statements
Commonwealth Income & Growth Fund I
Statements of Operations
Three Months Ended
March 31
2003 2002
---------------------------------------
(unaudited)
Income
Lease $ 88,281 $ 106,078
Interest and other - 1,997
Gain on sale of computer equipment 5,640 6,041
---------------------------------------
Total income 93,921 114,116
---------------------------------------
Expenses
Operating, excluding depreciation 60,801 66,741
Equipment management fee - General Partner 4,432 5,304
Interest 7,750 8,727
Depreciation 66,642 71,271
Amortization of equipment
acquisition costs and deferred expenses 4,391 3,949
---------------------------------------
Total expenses 144,016 155,992
---------------------------------------
Net loss $ (50,095) $ (41,876)
=======================================
Net loss per equivalent limited
partnership unit $ (0.08) $ (0.07)
=======================================
Weighted average number of equivalent limited
partnership units outstanding during the period 631,124 631,124
=======================================
see accompanying notes to financial statements
Commonwealth Income & Growth Fund I
Statements of Partners' Capital
For the Three Months ended March 31, 2003
(unaudited)
General Limited
Partner Partner General Limited
Units Units Partner Partner Total
----------------------------------------------------------------------------
Partners' capital - December 31, 2002 50 631,124 $ 1,000 $ 200,160 $ 201,160
Net (loss) - (50,095) (50,095)
----------------------------------------------------------------------------
Partners' capital - March 31, 2003 50 631,124 $ 1,000 $ 150,065 $ 151,065
============================================================================
see accompanying notes to financial statements
Commonwealth Income & Growth Fund I
Statements of Cash Flow
For the Three Months Ended March 31, 2003 and 2002
2003 2002
------------------ ----------------
Operating activities (unaudited)
Net (loss) $ (50,095) $ (41,876)
Adjustments to reconcile net (loss) to net cash
provided by operating activities
Depreciation and amortization 71,033 75,220
(Gain) on sale of computer equipment (5,820) (6,041)
Other noncash activities included in
determination of net (loss) (68,277) (62,975)
Changes in assets and liabilities
(Increase) decrease in assets
Lease income receivable (2,005) 35,246
Prepaid items - (3,000)
Increase (decrease) in liabilities
Accounts payable 4,097 (2,578)
Accounts payable, Common Capital Corp. 3,434 1,437
Accounts payable, General Partner 38,931 34,002
Accounts payable, affiliated limited
partnerships 10,696 (13,650)
Unearned lease income (138) (137)
------------------ ----------------
Net cash provided by operating activities 1,856 15,648
------------------ ----------------
Investing activities:
Capital expenditures (5,000) (15,000)
Net proceeds from the sale of computer equipment 5,820 12,229
Equipment acquisition fees paid to General Partner (200) (8,745)
------------------ ----------------
Net cash provided by (used in) investing activities 620 (11,516)
------------------ ----------------
Financing activities:
Debt Placement fee paid to the General Partner - (2,036)
------------------ ----------------
Net increase in cash and equivalents 2,476 2,096
Cash and cash equivalents, beginning of period 438 1,082
------------------ ----------------
Cash and cash equivalents, end of period $ 2,914 $ 3,178
================== ================
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
("CCC"), on behalf of the Partnership and other
affiliated partnerships, acquires computer equipment
subject to associated debt obligations and lease
agreements 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 to twelve 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 approximately December 31, 2006.
2. Summary of Basis of Presentation
Significant
Accounting The financial information presented as of any date other
Policies 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, 2002. Operating results for the
three-month period ended March 31, 2003 are not
necessarily indicative of financial results that may be
expected for the full year ended December 31, 2003.
Revenue Recognition
Through March 31, 2003, the Partnership's leasing
operations consist substantially of operating leases and
one direct financing lease. Operating lease revenue is
recognized on a monthly basis in accordance with the
terms of the lease agreement. Unearned revenue from
direct financing agreements is amortized to revenue over
the lease term.
The Partnership reviews a customer's credit history
before extending credit and establishes a provision for
uncollectible accounts receivable based upon the credit
risk of specific customers, historical trends and other
information.
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 March 31,
2003, 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 and deferred expenses
are charged to amortization expense when the associated
leased equipment is sold.
Cash and Cash Equivalents
The Partnership considers all highly liquid investments
with a maturity of three months or less to be cash
equivalents. Cash equivalents have been invested in a
money market fund investing directly in Treasury
obligations.
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.
Reimbursable Expenses
Reimbursable expenses, which are charged to the
Partnership by CCC in connection with the administration
and operation of the Partnership, are allocated to the
Partnership based upon several factors including, but not
limited to, the number of investors, compliance issues,
and the number of existing leases.
3. Net Investment in The following lists the components of the net investment
Direct Financing in a direct financing lease as of March 31, 2003 and
Lease December 31, 2002:
March 31, December 31,
2003 2002
---------------------------------------------------------------------------------
Minimum lease payments
receivable $ 39,117 $ 42,126
Less: Unearned Revenue 9,756 10,506
---------------------------------------------------------------------------------
Net investment in direct
financing lease $ 29,361 $ 31,620
---------------------------------------------------------------------------------
The following is a schedule of future minimum rentals on
the noncancellable direct financing lease at March 31,
2003:
Amount
---------------------------------------------------------------------------------
Nine Months Remaining December 31, 2003 $ 9,027
Year Ended December 31, 2004 12,036
Year Ended December 31, 2005 12,036
Year Ended December 31, 2006 6,018
---------------
$ 39,117
---------------------------------------------------------------------------------
4. 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 March
31, 2003 and December 31, 2002 was approximately $448,000
and $443,000, 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 March 31, 2003 and December
31, 2002 was approximately $2,258,000 and $2,210,000,
respectively. The Partnership's share of the outstanding
debt associated with this equipment at March 31, 2003 and
December 31, 2002 was approximately $197,000 and
$233,000, respectively, which is included in the
Partnership's liabilities on the balance sheet, and the
total outstanding debt at March 31, 2003 and December 31,
2002 related to the equipment shared by the Partnership
was approximately $1,030,000 and $1,197,000,
respectively.
The following is a schedule of future minimum rentals on
noncancellable operating leases at March 31, 2003:
Amount
--------------------------------------------------------------------------------
Nine months ended December 31, 2003 $ 239,000
Year ended December 31, 2004 170,000
Year ended December 31, 2005 7,000
Year ended December 31, 2006 3,000
------------
$ 419,000
============
5. Notes Payable Notes payable consisted of the following:
March 31 December 31
2003 2002
----------------------------------------------------------------------------------
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. $ 12,504 $ 20,977
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. 326,516 386,168
Installment note payable to a Bank, interest
at 6.50%; due in monthly installments of
$1,003, including interest, with final
payment due June 2006. 35,176 37,587
-------------------------------
$ 374,196 $ 444,732
===============================
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 March 31, 2003 are as follows:
Amount
----------------------------------------------------------------------------------
Nine months ended December 31, 2003 $ 205,854
Year ended December 31, 2004 151,185
Year ended December 31, 2005 11,252
Year ended December 31, 2006 5,905
------------
$ 374,196
============
6. Supplemental Other noncash activities included in the determination
Cash Flow of net income are as follows:
Information
Three months ended March 31, 2003 2002
- ----------------------------------------------------------------------------------------------
Lease income, net of interest expense on
notes payable realized as a result of direct
payment of principal by lessee to bank $ 68,277 $ 62,975
- ----------------------------------------------------------------------------------------------
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:
Three months ended March 31, 2003 2002
- ----------------------------------------------------------------------------------------------
Debt assumed in connection with purchase
of computer equipment $ - $ 203,627
- ----------------------------------------------------------------------------------------------
7. Litigation The Partnership, through CCC, has initiated a lawsuit
against a customer for the non-return of leased
equipment. Management believes that the Partnership will
prevail in this matter and that the outcome of this
uncertainty is not expected to have a material adverse
impact to the financial statements of the Partnership.
The Partnership has approximately $250,000 of unreserved
accounts receivable relating to this matter. The
complaint alleges that the named defendant has not
returned the proper equipment stated in the master lease
agreement and is seeking restitution for lost monthly
rentals, taxes, attorney fees and costs, plus interest. A
court date originally scheduled for May 14, 2003, has
been rescheduled for June 9, 2003.
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
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 March 31, 2003, the Partnership's leasing operations consist
substantially of operating leases and one direct financing lease. Operating
lease revenue is recognized on a monthly basis in accordance with the terms of
the lease agreement. Unearned revenue from direct financing agreements is
amortized to revenue over the lease term.
The Partnership reviews a customer's credit history before extending credit and
establishes a provision for uncollectible accounts receivable based upon the
credit risk of specific customers, historical trends and other information.
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 sources of capital for the three months ended March
31, 2003 and 2002 were cash from operations of $2,000 and $16,000, respectively,
and the net proceeds received from sale of equipment of approximately $6,000 and
$12,000, respectively. The primary use of cash for the three months ended March
31, 2003 and 2002 was for the purchase of computer equipment in the amount of
approximately $5,000 and $15,000, respectively.
For the three-month period ended March 31, 2003, the Partnership generated cash
flows from operating activities of $2,000, which includes a net operating loss
of $50,000, a net gain from the sale of computer equipment of $6,000 and
depreciation and amortization expenses of $71,000. Other noncash activities
included in the determination of net income include direct payments of lease
income by lessees to banks of $68,000.
For the three-month period ended March 31, 2002, the Partnership generated cash
flows from operating activities of $16,000, which includes a net operating loss
of $42,000, a net gain from the sale of computer of $6,000 and depreciation and
amortization expenses of $75,000. Other noncash activities included in the
determination of net income include direct payments of lease income by lessees
to banks of $63,000.
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 March 31, 2003, the Partnership had future minimum rentals on non-cancelable
operating leases of $239,000 for the balance of the year ending December 31,
2003 and $180,000 thereafter. At March 31, 2003, outstanding debt was $374,000,
with interest rates ranging from 6.25% to 9.50%, payable through June 2006.
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 March 31, 2003 and December 31, 2002 was approximately
$448,000 and $443,000, 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 March 31, 2003 and December 31,
2002 was approximately $2,258,000 and $2,210,000, respectively. The
Partnership's share of the outstanding debt associated with this equipment at
March 31, 2003 and December 31, 2002 was approximately $197,000 and $233,000,
respectively, which is included in the Partnership's liabilities on the balance
sheet, and the total outstanding debt at March 31, 2003 and December 31, 2002
related to the equipment shared by the Partnership was approximately $1,030,000
and $1,197,000, respectively.
Results of Operations
Three Months Ended March 31, 2003 compared to Three Months Ended March 31, 2002
- -------------------------------------------------------------------------------
For the quarter ended March 31, 2003, the Partnership recognized income of
$94,000 and expenses of $144,000, resulting in a net loss of $50,000. For the
quarter ended March 31, 2002, the Partnership recognized income of $114,000 and
expenses of $156,000, resulting in a net loss of $42,000.
Lease income decreased by 17% to $88,000 for the quarter ended March 31, 2003,
from $106,000 for the quarter ended March 31, 2002, primarily due to the fact
that more lease agreements terminated than new lease agreements entered into
since the quarter ended March 31, 2002.
Operating expenses, excluding depreciation, primarily consist of accounting,
legal, outside service fees and reimbursement of expenses to CCC for
administration and operation of the Partnership. The expenses decreased 9%, to
approximately $61,000 for the quarter ended March 31, 2003, from $67,000 for the
quarter ended March 31, 2002. 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 $9,000, a decrease in
conventions of approximately $5,000, a decrease in legal fees of approximately
$3,000, a decrease in recruiting fees of approximately $2,000, a decrease in
postage fees of approximately $1,000, a decrease in remarketing fees of
approximately $1,000 and a decrease in miscellaneous office expenses of
approximately $4,000.
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 16% to approximately $4,000 for the quarter ended March
31, 2003, from $5,000 for the quarter ended March 31, 2002, 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
6% to approximately $71,000 for the quarter ended March 31, 2003, from $75,000
for the quarter ended March 31, 2002 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 March 31, 2003, for a net gain of approximately $6,000. The Partnership
sold computer equipment with a net book value of approximately $6,000 for the
quarter ended March 31, 2002, for a net gain of $6,000.
Interest expense decreased 11% to $8,000 for the quarter ended March 31, 2003
from $9,000 for the quarter ended March 31, 2002; primarily due to the decrease
in equipment purchased that has an outstanding debt and older equipment's
associated debt being fully paid.
RECENT ACCOUNTING PRONOUNCEMENTS
Interpretation No. 46
In January 2003, FASB issued Interpretation No. 46, "Consolidation of Variable
Interest Entities" ("Interpretation No. 46"), which clarifies the application of
Accounting Research Bulletin No. 51, "Consolidated Financial Statements," to
certain entities in which equity investors do not have the characteristics of a
controlling financial interest or do not have sufficient equity at risk for the
entity to finance its activities without additional subordinated financial
support from the other parties. Interpretation No. 46 is applicable immediately
for variable interest entities created after January 31, 2003. For variable
interest entities created prior to January 31, 2003, the provisions of
Interpretation No. 46 are applicable no later than July 1, 2003. The Partnership
does not expect Interpretation No. 46 to have an effect on the financial
statements.
Item 3. 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.
Item 4. Controls and Procedures
The Chief Executive Officer and a Financial Officer of the Partnership have
conducted a review of the Partnership's disclosure controls and procedures as of
March 31, 2003.
The Company's disclosure controls and procedures include the Partnership's
controls and other procedures designed to ensure that information required to be
disclosed in this and other reports filed under the Securities Exchange Act of
1934, as amended (the "Exchange Act") is accumulated and communicated to the
Partnership's management, including its chief executive officer and a financial
officer, to allow timely decisions regarding required disclosure and to ensure
that such information is recorded, processed, summarized and reported with the
required time periods.
Based upon this review, the Partnership's Chief Executive Officer and a
Financial Officer of the Partnership have concluded that the Partnership's
disclosure controls (as defined in pursuant to Rule 13a-14 c promulgated under
the Exchange Act) are sufficiently effective to ensure that the information
required to be disclosed by the Partnership in the reports it files under the
Exchange Act is recorded, processed, summarized and reported with adequate
timeliness.
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. Getronics, Inc. was filed by
Commonwealth Capital Corp against Getronics, Inc.
(formerly known as Wang Laboratories, Inc.) with the
Federal District Court of the Eastern District of
Pennsylvania, No. 00-CV-2381 on behalf of the
Partnership. The complaint alleges that the named
defendant has not returned the proper equipment stated in
the master lease agreement and is seeking restitution for
lost monthly rentals, taxes, attorney fees and costs,
plus interest.
The defendant filed for a Summary Judgment on February
20, 2001, and the plaintiff has filed an opposition to
this Summary Judgment. On September 29, 2001, the Federal
District Court of the Eastern District of Pennsylvania
denied the defendant's request for Summary Judgment. As
of March 29, 2002, the pre-trial conference was
completed. On February 13, 2003, the Federal District
Court of the Eastern District of Pennsylvania has
assigned a trial date June 9, 2003, originally scheduled
for May 14, 2003.
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:
99.1 SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
99.2 SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
b) Report on Form 8-K: None
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
May 15, 2003 By: George S. Springsteen
- ------------ ---------------------
Date George S. Springsteen
President
CERTIFICATIONS
I, George Springsteen certify that:
1. I have reviewed this quarterly report on Form 10-Q of Commonwealth Income &
Growth Fund I (the Registrant);
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
Registrant as of, and for, the periods presented in this quarterly report;
4. The Registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the Registrant and we have:
a) designed such disclosure controls and procedures to ensure
the material information relating to the Registrant, including
its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which
this quarterly report is being prepared;
b) evaluated the effectiveness of the Registrant's disclosure
controls and procedures as of a date within 90 days prior to
the filing date of this quarterly report (the" Evaluation
Date" ); and
c) presented in this quarterly report our conclusions about
the effectiveness of the disclosure controls and the
procedures based on our evaluation as of the Evaluation Date;
5. The Registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the Registrant's auditors and the audit committee of
the Registrant's board of directors ( or persons performing the equivalent
function):
a) all significant deficiencies in the design or the operation
of internal controls which could adversely affect the
Registrant's ability to record, process, summarize and report
financial data we have identified for the Registrant's
auditors any material weakness in internal controls; and
b) any fraud, whether or not material, that involves
management or other employees who have a significant role in
the Registrant's internal controls; and
6. The Registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
George S. Springsteen
- ---------------------
George S. Springsteen
Chief Executive Officer
May 15, 2003
I, Kimberly A. Springsteen, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Commonwealth Income &
Growth Fund I (the Registrant);
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
Registrant as of, and for, the periods presented in this quarterly report;
4. The Registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the Registrant and we have:
a) designed such disclosure controls and procedures to ensure
the material information relating to the Registrant, including
its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which
this quarterly report is being prepared;
b) evaluated the effectiveness of the Registrant's disclosure
controls and procedures as of a date within 90 days prior to
the filing date of this quarterly report (the" Evaluation
Date" ); and
c) presented in this quarterly report our conclusions about
the effectiveness of the disclosure controls and the
procedures based on our evaluation as of the Evaluation Date;
5. The Registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the Registrant's auditors and the audit committee of
the Registrant's board of directors ( or persons performing the equivalent
function):
a) all significant deficiencies in the design or the operation
of internal controls which could adversely affect the
Registrant's ability to record, process, summarize and report
financial data we have identified for the Registrant's
auditors any material weakness in internal controls; and
b) any fraud, whether or not material, that involves
management or other employees who have a significant role in
the Registrant's internal controls; and
6. The Registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Kimberly A. Springsteen
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Kimberly A. Springsteen
Principal Financial Officer
May 15, 2003