6. Investment in Leasing Operations:

Investment in leasing operations consists of the following:


	September 28, 2019		December 29, 2018
Direct financing and sales-type leases:
Minimum lease payments receivable	$	31,375,800	$	40,822,400
Estimated unguaranteed residual value of equipment		4,289,200		4,741,200
Unearned lease income, net of initial direct costs deferred		(4,765,000)		(6,739,900)
Security deposits		(3,900,600)		(4,118,300)
Equipment installed on leases not yet commenced		3,645,700		5,094,800
Total investment in direct financing and sales-type leases		30,645,100		39,800,200
Allowance for credit losses		(676,800)		(861,200)
Net investment in direct financing and sales-type leases		29,968,300		38,939,000
Operating leases:
Operating lease assets		665,800		777,000
Less accumulated depreciation and amortization		(636,400)		(713,000)
Net investment in operating leases		29,400		64,000
Total net investment in leasing operations	$	29,997,700	$	39,003,000

As of September 28, 2019, the $30.0 million total net investment in leases consists of $14.4 million classified as current and $15.6 million classified as long-term. As of December 29, 2018, the $39.0 million total net investment in leases consists of $18.5 million classified as current and $20.5 million classified as long-term.

As of September 28, 2019, leased assets with one customer approximated 12% of the Company’s total assets. A portion of the lease payments receivable from this customer were assigned as collateral in non-recourse financing with financial institutions. See Note 10 – “Discounted Lease Rentals”.

Future minimum lease payments receivable under lease contracts and the amortization of unearned lease income, net of initial direct costs deferred, is as follows for the remainder of fiscal 2019 and the full fiscal years thereafter as of September 28, 2019:


	Direct Financing and Sales-Type Leases
	Minimum Lease		Income
Fiscal Year	Payments Receivable		Amortization
2019	$	5,214,200	$	1,291,400
2020		17,273,500		2,782,500
2021		7,999,300		661,400
2022		876,300		29,100
2023		8,100		500
Thereafter		4,400		100
	$	31,375,800	$	4,765,000

The activity in the allowance for credit losses for leasing operations during the first nine months of 2019 and 2018, respectively, is as follows:


	September 28, 2019		September 29, 2018
Balance at beginning of period	$	861,200	$	711,200
Provisions charged to expense		23,900		148,400
Recoveries		15,700		210,700
Deductions for amounts written-off		(224,000)		(101,100)
Balance at end of period	$	676,800	$	969,200

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


	September 28, 2019				December 29, 2018
	Investment		Allowance for		Investment		Allowance for
	In Leases		Credit Losses		In Leases		Credit Losses
Collectively evaluated for loss potential	$	30,645,100		676,800	$	39,800,200	$	861,200
Individually evaluated for loss potential		—		—		—		—
Total	$	30,645,100	$	676,800	$	39,800,200	$	861,200

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


	September 28, 2019
	0-60 Days		61-90 Days		Over 90 Days
	Delinquent		Delinquent		Delinquent and
	and Accruing		and Accruing		Accruing		Non-Accrual		Total
Middle-Market	$	29,409,600	$	—	$	—	$	—	$	29,409,600
Small-Ticket		1,235,500		—		—		—		1,235,500
Total Investment in Leases	$	30,645,100	$	—	$	—	$	—	$	30,645,100


	December 29, 2018
	0-60 Days		61-90 Days		Over 90 Days
	Delinquent		Delinquent		Delinquent and
	and Accruing		and Accruing		Accruing		Non-Accrual		Total
Middle-Market	$	38,395,000	$	—	$	—	$	70,000	$	38,465,000
Small-Ticket		1,335,200		—		—		—		1,335,200
Total Investment in Leases	$	39,730,200	$	—	$	—	$	70,000	$	39,800,200

The Company leases high-technology and other business-essential equipment to its leasing customers. Upon expiration of the initial term or extended lease term, depending on the structure of the lease, the customer may return the equipment, renew the lease for an additional term, or purchase the equipment. Due to the uncertainty of such outcome at the end of the lease term, the lease as recorded at commencement represents only the current terms of the agreement. As a lessor, the Company’s leases do not contain non-lease components. The residual values reflect the estimated amounts to be received at lease termination from sales or other dispositions of leased equipment to unrelated parties. The leased equipment residual values are based on the Company’s best estimate. The Company’s risk management strategy for its residual value includes the contractual obligations of customer to maintain, service, and insure the leased equipment, the use of third party remarketers as well as the analytical review of historical asset dispositions.

Leasing income as presented on the Consolidated Condensed Statements of Operations consists of the following:


	Three Months Ended		Nine Months Ended
	September 28, 2019		September 28, 2019
Interest income on direct financing and sales-type leases	$	1,856,000	$	6,066,800
Selling profit (loss) at commencement of sales-type leases		1,098,100		1,971,600
Operating lease income		702,600		1,908,700
Income on sales of equipment under lease		496,600		2,268,500
Other		222,200		518,200
Leasing income	$	4,375,500	$	12,733,800