XML 58 R10.htm IDEA: XBRL DOCUMENT

Investment in Sales-Type Leases, Net

9 Months Ended

Sep. 30, 2019

4. INVESTMENT IN SALES-TYPE LEASES, NET

Under sales-type leases, Xi'an TCH leases the following systems: (i) BMPG systems to Pucheng Phase I and II (15 and 11 year terms, respectively); (ii) BMPG systems to Shenqiu Phase I (11-year term); and (iii) BMPG systems to Shenqiu Phase II (9.5-year term). On February 15, 2019, Xi'an TCH transferred the Shenqiu Phase I and II Projects to Mr. Bai for RMB 127,066,000 ($18.55 million). On January 10, 2019, Mr. Bai transferred all the equity shares of his wholly owned company, Xi'an Hanneng, to HYREF as repayment for the loan made by Xi'an Zhonghong to HYREF. The components of the net investment in sales-type leases as of September 30, 2019 and December 31, 2018 are as follows:

	2019			2018
Total future minimum lease payments receivable	$	55,705,580		$	88,661,266
Less: executory cost		(3,573,565	)		(5,687,704	)
Less: unearned interest		(14,701,608	)		(19,398,707	)
Less: realized interest income but not yet received		(5,173,531	)		(9,336,141	)
Less: allowance for net investment receivable		(24,082,622	)		(29,276,658	)
Investment in sales-type leases, net		8,174,254			24,962,056
Current portion		-			-
Noncurrent portion	$	8,174,254		$	24,962,056

As of September 30, 2019, the gross future minimum rentals not including bad debt allowances to be received on non-cancelable sales-type leases by years were as follows:

2020	$	25,081,650
2021		6,447,143
2022		6,447,143
2023		6,447,143
2024		6,447,143
Thereafter		4,835,358
Total	$	55,705,580