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Investment in Sales-Type Leases, Net

12 Months Ended

Dec. 31, 2019

3. INVESTMENT IN SALES-TYPE LEASES, NET

Under sales-type leases, in 2019 and 2018, 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). The components of the net investment in sales-type leases as of December 31, 2019 and 2018 are as follows:

	2019			2018
Total future minimum lease payments receivable	$	56,477,739		$	88,661,266
Less: executory cost		(3,623,100	)		(5,687,704	)
Less: unearned interest		(14,905,393	)		(19,398,707	)
Less: realized interest income but not yet received		(5,245,244	)		(9,336,141	)
Less: allowance for net investment receivable		(24,416,442	)		(29,276,658	)
Investment in sales-type leases, net		8,287,560			24,962,056
Current portion		-			-
Noncurrent portion	$	8,287,560		$	24,962,056

As of December 31, 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	$	27,063,444
2021		6,536,510
2022		6,536,510
2023		6,536,510
2024		6,536,510
Thereafter		3,268,255
Total	$	56,477,739