ICON Equipment & Corporate Infrastructure Fund Fourteen, L.P. - FORM 8-K - EX-99.1 - September 30, 2014

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Exhibit 99.1
 
 
 
 
 
 
 
 
ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.
 
 
 
 
 
 
 
 
  Portfolio Overview  
     
     
  First Quarter 2014  
 
 
 
 
 
 
 
 
IMAGE
 
 
 
 
 
  Table of Contents    
       
       
 
Introduction to Portfolio Overview
  1  
       
 
Investments During the Quarter
  1  
       
 
Investments Following the Quarter
 2  
       
  Dispositions During the Quarter  2  
       
  Dispositions Following the Quarter  3  
       
  Portfolio Overview  4  
       
  Revolving Line of Credit  8  
       
  Performance Analysis  8  
       
  Transactions with Related Parties  10  
       
  Financial Statements  12  
       
  Forward Looking Statements 16  
       
  Additional Information  16  
 
 
 
 
 
ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.
 
As of August 31, 2014
 
Introduction to Portfolio Overview
 
We are pleased to present ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.’s (the “Fund”) Portfolio Overview for the quarter ended March 31, 2014.  References to “we,” “us,” and “our” are references to the Fund, references to the “General Partner” are references to the general partner of the Fund, ICON GP 14, LLC, and references to the “Investment Manager” are references to the investment manager of the Fund, ICON Capital, LLC.

The Fund makes investments in companies that utilize equipment and other corporate infrastructure (collectively, “Capital Assets”) to operate their businesses. These investments are primarily structured as debt and debt-like financings (such as loans and leases) that are collateralized by Capital Assets.

The Fund raised $257,646,987 commencing with its initial offering on May 18, 2009 through the closing of the offering on May 18, 2011. During our operating period, we will invest our offering proceeds and cash generated from operations in Capital Assets. Following our operating period, we will enter our liquidation period, during which time the loans and leases we own will mature or be sold in the ordinary course of business.
 
Investments During the Quarter

The Fund made the following investments during the quarter ended March 31, 2014:
Blackhawk Mining, LLC
Investment Date:
3/4/2014
Collateral:
Mining equipment acquired for $25,359,000.
 
Structure:
Lease
  
Expiration Date:
2/28/2018
  
Purchase Price:
$25,359,000
  
The Fund's Investment:
$2,690,000
  
Siva Global Ships Limited      
Investment Dates:
3/28/2014*
4/8/2014*
Collateral:
Two liquefied petroleum gas tanker vessels acquired for $41,600,000.
 
Structure:
Lease
  
Expiration Dates:
3/28/2022
4/8/2022
  
Purchase Price:
$41,600,000
  
The Fund's Investment:
$979,000
  
*On March 21, 2014, we entered into Memoranda of Agreement to purchase the LPG tanker vessels, the SIVA Coral and the SIVA Pearl. The purchase and delivery of both vessels was scheduled to occur on March 28, 2014, but was delayed with respect to the SIVA Pearl for procedural reasons until April 8, 2014.
 
 
1
 
 
ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.
 
Investments Following the Quarter
 
The Fund made the following investments after the quarter ended March 31, 2014:
Pacific Radiance Ltd.
Investment Date:
6/12/2014
Collateral:
Offshore support vessel acquired for $40,000,000.
 
Structure:
Lease
  
Expiration Date:
6/12/2024
  
Purchase Price:
$40,000,000
  
The Fund's Investment:
$1,542,000
  
SeaChange Projects LLC      
Investment Dates:
6/20/2014
8/20/2014
Collateral:
Containership vessel valued at $4,200,000*.
 
Structure:
Loan
  
Maturity Date:
2/15/2018
  
Facility Amount:
$7,000,000
  
Fund Participation:
$700,000
  
*As part of our security for the facility, we received an assignment of all earnings related to the vessel CAPT DAVID I LYON including earnings derived from such vessel’s time charter with the U.S. Navy’s Military Sealift Command, which has a term of up to five years and is valued at up to $43,800,000.
Tecnicas Maritimas Avanzadas, S.A. de C.V.
Investment Date:
8/27/2014
Collateral:
Two platform supply vessels valued at $61,000,000
 
Structure:
Loan
  
Maturity Date:
7/26/2019
  
Facility Amount:
$29,000,000
  
Fund Participation:
$3,625,000
  
Geokinetics      
Investment Date:
9/4/2014
Collateral:
Land based seismic testing equipment acquired for $10,677,000.
 
Structure:
Lease
  
Expiration Date:
8/31/2017
  
Purchase Price:
$10,677,000
  
Fund Participation:
$3,577,000
  
 
2
 
 
ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.
 
Dispositions During the Quarter

The Fund made the following dispositions during the quarter ended March 31, 2014:
ION Geophysical, Inc.
Structure:
Loan
Collateral:
Analog seismic system equipment.
Disposition Date:
1/31/2014
The Fund's Investment:
$9,000,000
Total Proceeds Received:
$13,100,000
Global Crossing Telecommunications, Inc.
Structure:
Lease
Collateral:
Telecommunications equipment.
Disposition Date:
2/28/2014
The Fund's Investment:
$8,452,000
Total Proceeds Received:
$10,733,000
 
Dispositions Following the Quarter

The Fund made the following dispositions after the quarter ended March 31, 2014:
AET, Inc. Limited
Structure:
Lease
Collateral:
Two Aframax tanker vessels.
 
Disposition Dates:
4/14/2014
5/21/2014
The Fund's Investment:
$3,848,000
Total Proceeds Received:
N/A*
* On April 14, 2014 and May 21, 2014, the Eagle Otome and the Eagle Subaru were sold for $7,395,355 and $7,426,625 respectively, resulting in a gain on sale.  As originally contemplated, all proceeds from the sale of the two vessels were used to repay indebtedness incurred in connection with the Fund’s investment in ICON AET Holdings, LLC, which also includes two Very Large Crude Carriers currently on charter with AET Inc. Limited.
Palmali Holding Company Limited
Structure:
Loan
Collateral:
Two Aframax tanker vessels.
Disposition Date:
4/15/2014
The Fund's Investment:
$14,400,000
Total Proceeds Received:
$22,962,000
 
 
3
 
 
ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.
 
Dispositions Following the Quarter (continued)
Western Drilling Inc.
Structure:
Loan
Collateral:
Oil and drilling rigs.
Disposition Date:
5/30/2014
The Fund's Investment:
$9,465,000
Total Proceeds Received:
$7,984,000**
** Due to Western Drilling’s failure to meet certain payment obligations, the collateral was repossessed and sold. Although a substantial portion of the loan has been recovered, the Fund continues to pursue all legal remedies to obtain payment of the outstanding loan balance.
NTS Communications, Inc.
Structure:
Loan
Collateral:
Telecommunications equipment.
Disposition Date:
6/6/2014
The Fund's Investment:
$3,420,000
Total Proceeds Received:
$4,391,000
Global Crossing Telecommunications, Inc.
Structure:
Lease
Collateral:
Telecommunications equipment.
Disposition Date:
5/30/2014
The Fund's Investment:
$4,499,000
Total Proceeds Received:
$6,089,000
SAExploration, Inc.
Structure:
Loan
Collateral:
Seismic imaging equipment.
 
Disposition Date:
7/2/2014
The Fund's Investment:
$4,050,000
Total Proceeds Received:
$5,439,000
 
Portfolio Overview

As of March 31, 2014, our portfolio consisted of the following investments:
Geden Holdings Limited
Structure:
Lease
Collateral:
A crude oil tanker and two supramax bulk carrier vessels.
Expiration Dates:
6/21/2016
9/30/2017
  
 
 
4
 
 
ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.
 
Portfolio Overview (continued)
Frontier Oilfield Services, Inc.
Structure:
Loan
Collateral:
Saltwater disposal wells and related equipment.
Maturity Date:
2/1/2018
  
Ezra Holdings Limited
Structure:
Lease
Collateral:
Offshore support vessel.
Expiration Date:
6/3/2021
  
Cenveo Corporation
      
Structure:
Loan
Collateral:
 Printing, folding and packaging equipment used in the production of commercial envelopes.
Maturity Date:
10/1/2018
  
     
Coach Am Group Holdings Corp.
Structure:
Lease
Collateral:
Motor coach buses.
Expiration Date:
5/31/2015
  
Go Frac, LLC
Structure:
Lease
Collateral:
Oil well fracking, cleaning and servicing equipment.
Expiration Dates:
11/30/2016
4/30/2017
  
Western Drilling Inc.
Structure:
Loan
Collateral:
Oil and drilling rigs.
Maturity Date:
8/1/2016
  
 
 
5
 
 
ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.
 
Portfolio Overview (continued)
Höegh Autoliners Shipping AS
Structure:
Lease
Collateral:
A car carrier vessel.
Expiration Date:
12/21/2020
  
VAS Aero Services, LLC
Structure:
Loan
Collateral:
Aircraft engines and related parts.
Maturity Date:
10/6/2014
  
AET, Inc. Limited
Structure:
Lease
Collateral:
Two Aframax tankers and two Very Large Crude Carriers.
Expiration Dates:
3/29/2014*  
3/29/2021
  
*Due to delays associated with redelivery, the Eagle Otome and the Eagle Subaru each remained on charter with AET, Inc. Limited following their lease expiration on March 29, 2014 until such vessels were redelivered and sold to third-party buyers on April 14, 2014 and May 21, 2014, respectively.
Exopack, LLC
Structure:
Lease
Collateral:
Film extrusion line and flexographic printing presses.
Expiration Dates:
7/31/2014
9/30/2014
  
Global Crossing Telecommunications, Inc.
Structure:
Lease
Collateral:
Telecommunications equipment.
Expiration Date:
6/30/2014
  
Heniff Transportation Systems, LLC
Structure:
Loan
Collateral:
Tractors, stainless steel tank trailers and related equipment.
Maturity Date:
8/31/2016
  
 
 
6
 

ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.
 
Portfolio Overview (continued)
Palmali Holding Company Limited
Structure:
Loan
Collateral:
Two Aframax tanker vessels.
Maturity Dates:
7/28/2016
9/14/2016
  
NTS Communications, Inc.
Structure:
Loan
Collateral:
Telecommunications equipment.
Maturity Date:
7/1/2017
  
SAExploration Holdings, Inc.
Structure:
Loan
Collateral:
Seismic imaging equipment.
Maturity Date:
11/28/2016
  
Sargeant Marine, Inc.
Structure:
Loan
Collateral:
Asphalt carrier vessel.
Maturity Date:
12/31/2018
  
Blackhawk Mining, LLC
Structure:
Lease
Collateral:
Mining equipment.
 
Expiration Date:
2/28/2018
  
Siva Global Ships Limited
Structure:
Lease
Collateral:
Two liquefied petroleum gas tanker vessels.
 
Expiration Dates:
3/28/2022
4/8/2022
  
Ardmore Shipholding Limited
Structure:
Lease
Collateral:
Two chemical tanker vessels.
Expiration Date:
4/3/2018
  
 
 
7
 

ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.
 
Portfolio Overview (continued)
Jurong Aromatics Corporation Pte. Ltd. 
Structure:
Loan
Collateral:
Equipment, plant, and machinery associated with the condensate splitter and aromatics complex located on Jurong Island, Singapore.
Maturity Date: 1/16/2021     
     
Superior Tube Company, Inc.
Structure:
Loan
Collateral:
Equipment and related inventory used in oil field services business.
Maturity Date:
10/1/2017
  
 
Revolving Line of Credit
 
On May 10, 2011, we entered into a loan agreement with California Bank & Trust (“CB&T”) for a revolving line of credit of up to $15,000,000 (the “Facility”), which is secured by all of the Fund’s assets not subject to a first priority lien. Amounts available under the Facility are subject to a borrowing base that is determined, subject to certain limitations, based on the present value of the future receivables under certain loans and lease agreements in which the Fund has a beneficial interest.
 
The Facility was extended through March 31, 2015.  The interest rate on general advances under the Facility is CB&T’s prime rate.  We may elect to designate up to five advances on the outstanding principal balance of the Facility to bear interest at the current London Interbank Offered Rate plus 2.5% per year.  In all instances, borrowings under the Facility are subject to an interest rate floor of 4.0% per year. In addition, we are obligated to pay an annualized 0.5% fee on unused commitments under the Facility. At March 31, 2014, there were no obligations outstanding under the Facility.
 
Performance Analysis
 
Capital Invested as of March 31, 2014
 $292,353,844
Leverage Ratio
 0.99:1*
% of Receivables Collected in the Quarter Ended March 31, 2014
 94.16%**
*    Leverage ratio is defined as total liabilities divided by total equity.
**  Collections as of August 31, 2014. The uncollected receivables relate to our investment with Western Drilling Inc.
 
One of our objectives is to provide cash distributions to our partners.  In order to assess our ability to meet this objective, unaffiliated broker dealers, third party due diligence providers and other members of the investing community have requested that we report a financial measure that can be reconciled to our financial statements and can be used to assess our ability to support cash distributions from our business operations.  We refer to this financial measure as cash available from our business operations, or CABO. CABO is not equivalent to our net operating income or loss as determined under GAAP.  Rather, it is a measure that may be a better financial measure for an equipment fund because it measures cash generated by investments, net of management fees and expenses, during a specific period of time.  We define CABO as the net change in cash during the period plus distributions to partners and investments made during such period, less the debt proceeds used to make such investments and the activity related to the Facility, as well as the net proceeds from equity raised through the sale of interests during such period.
 
8
 
 
ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.
 
Performance Analysis (continued)
 
We believe that CABO may be an appropriate supplemental measure of an equipment fund’s performance because it is based on a measurement of cash during a specific period that excludes cash from non-business operations, such as distributions, investments and equity raised.

Presentation of this information is intended to assist unaffiliated broker dealers, third party due diligence providers and other members of the investing community in understanding the Fund’s ability to support its distributions from its business operations. It should be noted, however, that no other equipment funds calculate CABO, and therefore comparisons with other equipment funds are not meaningful.  CABO should not be considered as an alternative to net income (loss) as an indication of our performance or as an indication of our liquidity.  CABO should be reviewed in conjunction with other measurements as an indication of our performance.

Cash Available from Business Operations, or CABO, is the cash generated by investments during a specific period of time, net of fees and expenses, excluding distributions to partners, net equity raised and investments made.
 
 
 Net Change in Cash per GAAP
Cash Flow Statement
  
Business Operations
Net cash flow generated by our investments,
net of fees and expenses
 (CABO) 
  
Non-Business Operations 
Net Equity Raised
Cash expended to make Investments
and Distributions to Partners
  
 
As indicated above, the total net change in cash is the aggregate of the net cash flows from Business Operations and the net cash flows from Non-Business Operations.  By taking the total net change in cash and removing the cash activity related to Non-Business Operations (distributions, investments and equity raised), the amount remaining is the net cash available from Business Operations (net cash flows generated by investments, net of fees and expenses).

In summary, CABO is calculated as:
Net change in cash during the period per the GAAP cash flow statement
+ distributions to Partners during the period
+ investments made during the period
- debt proceeds to be specifically used to make an investment
- net proceeds from the sale of Interests during the period
 
= CABO
 
 
9
 
 
ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.
 
ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.
  
Cash Available from Business Operations
  
for the Period January 1, 2014 to March 31, 2014
  
         
Cash Balance at January 1, 2014
 $ 9,526,625      
Cash Balance at March 31, 2014
 $ 5,054,144      
Net Change in Cash
       $ (4,472,481)  
Add Back:
            
Distributions Paid to Partners from January 1, 2014 through March 31, 2014
       $ 5,227,723  
Investments made during the period
            
Investments in notes receivable
 $ (21,375)        
Investments in joint ventures
   3,716,503        
        $ 3,695,128  
 
            
Cash available from Business Operations (CABO)
       $ 4,450,370  (1)
             
(1) Cash available from business operations includes the collection of principal and interest from our investments in notes receivable and finance leases.
  
 
Transactions with Related Parties

We have entered into certain agreements with our General Partner, our Investment Manager and ICON Securities, LLC (“ICON Securities”), a wholly-owned subsidiary of our Investment Manager and the dealer-manager of our offering, whereby we pay or paid certain fees and reimbursements to these parties.  ICON Securities was entitled to receive a 3% underwriting fee from the gross proceeds from sales of our limited partnership interests, of which up to 1% were paid to unaffiliated broker-dealers as a fee for their assistance in marketing the Fund and coordinating sales efforts.
 
In addition, we reimbursed our General Partner and its affiliates for organizational and offering expenses incurred in connection with our organization and offering.  The reimbursement of these expenses was capped at the lesser of 1.44% of the gross offering proceeds (assuming all of our limited partnership interests were sold in the offering) and the actual costs and expenses incurred by our General Partner and its affiliates.
 
We pay or paid our Investment Manager (i) a management fee of 3.5% of the gross periodic payments due and paid from our investments and (ii) acquisition fees, through the end of the operating period, equal to 2.5% of the total purchase price (including indebtedness incurred or assumed and all fees and expenses incurred in connection therewith) of, or the value of the Capital Assets secured by or subject to, our investments. For a more detailed analysis of the fees payable to our Investment Manager, please see the Fund’s prospectus. In connection with the investments made for the period January 1, 2014 through the date hereof, we paid our Investment Manager aggregate acquisition fees in the amount of approximately $648,000.
 
Our General Partner and its affiliates also perform certain services relating to the management of our portfolio. Such services include, but are not limited to, credit analysis and underwriting, receivables management, portfolio management, accounting, financial and tax reporting, and remarketing and marketing services.
 
In addition, our General Partner and its affiliates are reimbursed for administrative expenses incurred in connection with our operations. Administrative expense reimbursements are costs incurred by our General Partner or its affiliates that are necessary to our operations.
 
 
10
 
 
ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.

Transactions with Related Parties (continued)
 
Our General Partner also has a 1% interest in our profit, losses, distributions and liquidation proceeds. We paid distributions to our General Partner of $52,277 and $52,288 for the three months ended March 31, 2014 and 2013, respectively. Additionally, our General Partner’s interest in our net income for the three months ended March 31, 2014 and 2013 was $17,052 and $53,190, respectively.
 
Fees and other expenses incurred by us to our General Partner or its affiliates were as follows:
 
           
Three Months Ended March 31,
Entity
  
Capacity
  
Description
   2014   2013
ICON Capital, LLC
  
Investment Manager
  
Acquisition fees(1)
   $ 225,098   $ 935,207
ICON Capital, LLC
  
Investment Manager
  
Management fees(2)
     442,548     500,905
ICON Capital, LLC
  
Investment Manager
  
Administrative expense reimbursements(2)
     412,957     618,168
            $ 1,080,603   $ 2,054,280
(1)  Amount capitalized and amortized to operations.
(2)  Amount charged directly to operations.
  
 
At March 31, 2014 and December 31, 2013, we had a net payable of $208,934 and $522,643, respectively, due to our General Partner and its affiliates that primarily consisted of a payable due to Fund Twelve related to its noncontrolling interest in the AET vessels and administrative expense reimbursements.
 
Your participation in the Fund is greatly appreciated.

We are committed to protecting the privacy of our investors in compliance with all applicable laws. Please be advised that, unless required by a regulatory authority such as FINRA or ordered by a court of competent jurisdiction, we will not share any of your personally identifiable information with any third party.
 
 
11
 
 
ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.
(A Delaware Limited Partnership)
Financial Statements
Consolidated Balance Sheets
 
     
March 31,
  
December 31,
      2014   2013
     
(unaudited)
      
Assets
               
Cash and cash equivalents
$
5,054,144
  
$
9,526,625
Restricted cash
  
3,323,420
    
10,860,964
Net investment in finance leases
  
131,752,663
    
133,799,368
Leased equipment at cost (less accumulated depreciation
          
of $33,424,165 and $44,364,515, respectively)
  
130,806,750
    
146,570,694
Assets held for sale
  
11,921,456
    
                               -
Net investment in notes receivable
  
87,660,965
    
89,430,862
Note receivable from joint venture
  
2,588,076
    
2,575,278
Investment in joint ventures
  
14,487,555
    
10,680,776
Other assets
  
4,522,411
    
6,833,329
Total assets
$
392,117,440
  
$
410,277,896
Liabilities and Equity
Liabilities:
            
Non-recourse long-term debt
$
170,046,127
  
$
185,275,365
Derivative financial instruments
  
6,107,240
    
6,281,705
Deferred revenue
  
2,739,703
    
3,253,862
Due to General Partner and affiliates, net
  
208,934
    
522,643
Accrued expenses and other liabilities
  
15,771,065
    
14,559,645
Total liabilities
  
194,873,069
    
209,893,220
               
Commitments and contingencies
          
               
Equity:
            
Partners' equity:
          
Limited partners
  
182,992,616
    
186,487,068
General Partner
  
(474,410)
    
(439,185)
Total partners' equity
  
182,518,206
    
186,047,883
Noncontrolling interests
  
14,726,165
    
14,336,793
Total equity
  
197,244,371
    
200,384,676
Total liabilities and equity
$
392,117,440
  
$
410,277,896
 
12
 
 
ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.
(A Delaware Limited Partnership)
Financial Statements
Consolidated Statements of Operations
 
   
Three Months Ended March 31,
    2014   
2013
Revenue:
          
Finance income
$
3,869,518
  
$
6,465,532
Rental income
  
7,205,672
    
7,211,599
Income from investment in joint ventures
  
393,601
    
210,767
Other income
  
14,423
    
47,466
Total revenue
  
11,483,214
    
13,935,364
Expenses:
          
Management fees
  
442,548
    
500,905
Administrative expense reimbursements
  
412,957
    
618,168
General and administrative
  
694,913
    
553,241
Credit loss
  
794,999
    
                    -
Depreciation
  
3,842,488
    
3,842,488
Interest
  
2,539,363
    
2,664,040
Loss (gain) on derivative financial instruments
  
661,350
    
(77,026)
Total expenses
  
9,388,618
    
8,101,816
Net income
  
2,094,596
    
5,833,548
Less: net income attributable to noncontrolling interests
  
389,372
    
514,553
Net income attributable to Fund Fourteen
$
1,705,224
  
$
5,318,995
             
Net income attributable to Fund Fourteen allocable to:
          
Limited partners
$
1,688,172
  
$
5,265,805
General Partner
  
17,052
    
53,190
   
$
1,705,224
  
$
5,318,995
             
Weighted average number of limited partnership interests outstanding
  
258,771
    
258,827
Net income attributable to Fund Fourteen per weighted average limited partnership
          
interest outstanding
$
6.52
  
$
20.34

 
13
 
 
ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.
(A Delaware Limited Partnership)
Financial Statements
Consolidated Statements of Changes in Equity

   
Partners' Equity
        
   
Limited Partnership Interests
  
Limited Partners
  
General Partner
  
Total Partners' Equity
  
Noncontrolling Interests
  
Total Equity
  Balance, December 31, 2013   258,772   $ 186,487,068   $ (439,185)   $ 186,047,883   $ 14,336,793   $ 200,384,676
                                     
 
Net income
   -     1,688,172     17,052     1,705,224     389,372     2,094,596
 
Repurchase of limited
                                  
 
partnership interests
   (11)     (7,178)     -     (7,178)     -     (7,178)
 
Distributions
   -     (5,175,446)     (52,277)     (5,227,723)     -     (5,227,723)
  Balance, March 31, 2014 (unaudited)   258,761   $ 182,992,616   $ (474,410)   $ 182,518,206   $ 14,726,165   $ 197,244,371

 
14
 
 
ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.
(A Delaware Limited Partnership)
Financial Statements
Consolidated Statements of Cash Flows (unaudited)
 
 
Three Months Ended March 31,
 
2014
   2013
Cash flows from operating activities:
      
Net income
 $ 2,094,596   $ 5,833,548
Adjustments to reconcile net income to net cash provided by operating activities:
          
Finance income, net of costs and fees
   (1,547,682)     (1,028,837)
Income from investment in joint ventures
   (393,601)     (210,767)
Depreciation
   3,842,488     3,842,488
Credit loss
   794,999     -
Interest expense from amortization of debt financing costs
   192,360     219,013
Interest expense, other
   100,968     97,931
Gain on derivative financial instruments
   (177,519)     (968,612)
Changes in operating assets and liabilities:
          
Restricted cash
   7,537,544     (1,568,818)
Other assets, net
   2,121,612     86,128
Accrued expenses and other liabilities
   1,110,452     415,216
Deferred revenue
   (514,159)     (215,298)
Due to General Partner and affiliates
   (313,709)     333,213
Distributions from joint ventures
   257,125     53,448
Net cash provided by operating activities
   15,105,474     6,888,653
Cash flows from investing activities:
          
Proceeds from sale of equipment
   1,423,423     641,942
Principal received on finance leases
   591,070     2,310,049
Investment in joint ventures
   (3,716,503)     (3,552,482)
Distributions received from joint ventures in excess of profits
   46,200     42,120
Investment in notes receivable
   21,375     (5,150,816)
Principal received on notes receivable
   2,520,619     790,299
Net cash provided by (used in) investing activities
   886,184     (4,918,888)
Cash flows from financing activities:
          
Repayment of non-recourse long-term debt
   (15,229,238)     (5,267,292)
Distributions to noncontrolling interests
   -     (94,709)
Distributions to partners
   (5,227,723)     (5,228,820)
Repurchase of limited partnership interests
   (7,178)     -
Net cash used in financing activities
   (20,464,139)     (10,590,821)
Net decrease in cash and cash equivalents
   (4,472,481)     (8,621,056)
Cash and cash equivalents, beginning of period
   9,526,625     18,719,517
Cash and cash equivalents, end of period
 $ 5,054,144   $ 10,098,461
           
Supplemental disclosure of cash flow information:
          
Cash paid for interest
 $ 2,362,039   $ 2,551,429
           
Supplemental disclosure of non-cash investing activities:
          
Transfer of leased equipment at cost to assets held for sale
 $ 11,921,456   $ -
 
 
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ICON Equipment and Corporate Infrastructure Fund Fourteen, L.P.
 
Forward Looking Statements
 
Certain statements within this document may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”).  These statements are being made pursuant to the PSLRA, with the intention of obtaining the benefits of the “safe harbor” provisions of the PSLRA, and, other than as required by law, we assume no obligation to update or supplement such statements.  Forward-looking statements are those that do not relate solely to historical fact.  They include, but are not limited to, any statement that may predict, forecast, indicate or imply future results, performance, achievements or events.  You can identify these statements by the use of words such as “may,” “will,” “could,” “anticipate,” “believe,” “estimate,” “expect,” “continue,” “further,” “plan,” “seek,” “intend,” “predict” or “project” and variations of these words or comparable words or phrases of similar meaning.  These forward-looking statements reflect our current beliefs and expectations with respect to future events and are based on assumptions and are subject to risks and uncertainties and other factors outside our control that may cause actual results to differ materially from those projected.  We undertake no obligation to update publicly or review any forward-looking statement, whether as a result of new information, future developments or otherwise.
 
Additional Information

“Total Proceeds Received,” as referenced in the sections entitled Dispositions During the Quarter and Dispositions Following the Quarter, does not include proceeds received to satisfy indebtedness incurred in connection with the investment, if any, or the payment of any fees or expenses with respect to such investment.

A detailed financial report on SEC Form 10-Q or 10-K (whichever is applicable) is available to you.  It is typically filed either 45 or 90 days after the end of a quarter or year, respectively.  Usually this means a filing will occur on or around March 31, May 15, August 14, and November 14 of each year.  It contains financial statements and detailed sources and uses of cash plus explanatory notes.  You are always entitled to these reports.  Please access them by:
 
·  
Visiting www.iconinvestments.com, or
·  
Visiting www.sec.gov, or
·  
Writing us at:  Angie Seenauth c/o ICON Investments, 3 Park Avenue, 36th Floor, New York, NY 10016
 
We do not distribute these reports to you directly in order to keep our expenses down as the cost of mailing this report to all investors is significant.  Nevertheless, the reports are immediately available upon your request.
 
 
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ICON Equipment & Corporate Infrastructure Fund Fourteen, L.P. Reports