UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



FORM 10-K



|x | ANNUAL REPORT
    PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------



|For the fiscal year ended | December
    31, 2019 | 
|------------------------- | --------------------- | 
|                          | or                    | 



| ̈ | TRANSITION REPORT PURSUANT
    TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | --------------------------------------------------------------------------------------------



|For the transition
    period from |  | to |  | 
|---------------------------------- |  | -- |  | 



|Commission
    File Number: | 333-185144 | 
|--------------------------- | ---------- | 



|ICON
    ECI Fund Sixteen Liquidating Trust               
|----------------------------------------------------------
|(Exact name of registrant
    as specified in its charter)



|Delaware                                                           |  | 80-0860084                              
|------------------------------------------------------------------ |  | ----------------------------------------
|(State
    or other jurisdiction of incorporation or organization) |  | (I.R.S.
    Employer Identification No.)
|3
    Park Avenue, 36th Floor                                      |  |                                         
|New
    York, New York                                             |  | 10016                                   
|(Address
    of principal executive offices)                       |  | (Zip
    Code)                          



|(212)
    418-4700                                      
|--------------------------------------------------------
|(Registrant’s telephone
    number, including area code)



|Securities
    registered pursuant to Section 12(b) of the Act: None
|--------------------------------------------------------------------
|Securities registered
    pursuant to Section 12(g) of the Act: None



|Indicate by check mark if the
    registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.                                                                                                                                                                                                                                            
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Yes  ̈   
    No þ                                                                                                                                                                                                                                                                                                                                                      
|Indicate by check mark if the registrant is
    not required to file reports pursuant to Section 13 or Section 15(d) of the Act.*                                                                                                                                                                                                                                      
|Yes  ̈ 
    No  ̈                                                                                                                                                                                                                                                                                                                                                        
|Indicate by check mark
    whether the registrant (1) 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 (or for such shorter period that the registrant was required to file such reports),
    and (2) has been subject to such filing requirements for the past 90 days.*  
|Yes  ̈No  ̈                                                                                                                                                                                                                                                                                                                                                              
|Indicate by check mark
    whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule
    405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the
    registrant was required to submit such files).*                                      
|Yes  ̈No  ̈                                                                                                                                                                                                                                                                                                                                                              
|Indicate by check mark
    whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company,
    or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,”
    “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.



|Large accelerated filer   ̈ | Accelerated filer   ̈        
|-------------------------- | ----------------------------
|Non-accelerated filer     ̈ | Smaller reporting company  þ
|                           | Emerging growth company   ̈  



|If an emerging
    growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
    with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.                                                                                                                                                                                                         
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| ̈                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|Indicate by check mark whether the registrant
    is a shell company (as defined in Rule 12b-2 of the Exchange Act).                                                                                                                                                                                                                                                                                                                                                       
|Yes  ̈No þ                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|State the aggregate market
    value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common
    equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s
    most recently completed second fiscal quarter: Not applicable. There is no established market for the Class A
    and Class I beneficial interests of the registrant.



Number of outstanding Class A and Class I beneficial interests
of the registrant on March 13, 2020 is 17,189 and 410, respectively.



DOCUMENTS INCORPORATED BY REFERENCE



None.



*ICON ECI Fund Sixteen Liquidating Trust is the transferee
of the assets and liabilities of ICON ECI Fund Sixteen and files reports under the Commission file number for ICON ECI Fund Sixteen,
which filed a Form 15 on January 4, 2019 indicating its notice of termination of registration and filing requirements.













ICON ECI Fund Sixteen Liquidating Trust

Table
of Contents



|                                                                                                                  |  | Page | 
|----------------------------------------------------------------------------------------------------------------- |  | ---- | 
|Market for Registrant’s Securities, Related
    Security Holder Matters and Issuer Purchases of Equity Securities |  | 1    | 
|Consolidated Balance Sheets                                                                                       |  | 3    | 
|Consolidated Statements of Operations                                                                             |  | 4    | 
|Consolidated Statements of Changes in Equity                                                                      |  | 5    | 
|Consolidated Statements of Cash Flows                                                                             |  | 6    | 
|Notes to Consolidated Financial Statements                                                                        |  | 7    | 
|Signatures                                                                                                        |  | 23   | 








Table
                                         of Contents




Item 5. Market for Registrant’s
Securities, Related Security Holder Matters and Issuer Purchases of Equity Securities



Overview



|As
    of March 13, 2020   
|---------------------------
|                           
|Number of beneficial owners
|Number
    of Interests    



We, at our
Managing Owner’s discretion, paid monthly distributions to each of our beneficial owners beginning the first month after
each such beneficial owner was admitted to the Fund through December 31, 2016. During our wind down period, which commenced on
June 1, 2017, we have paid and will continue to pay distributions in accordance with the terms of our Trust Agreement. We expect
that distributions paid during our wind down period will vary, depending on the timing of the sale of our assets and/or the maturity
of our investments, and our receipt of finance and other income from our investments. For the year ended December 31, 2019,
there were no distributions paid to our Managing Owner, Class A additional beneficial owners or Class I beneficial owners. For
the year ended December 31, 2018, we paid distributions to our Managing Owner, Class A additional beneficial owners and Class
I beneficial owners of $45,454, $4,395,178 and $104,822, respectively.



Our Interests
are not publicly traded and there is no established public trading market for our Interests. Given that it is unlikely that any
such market will develop, our Interests are generally considered illiquid. Even if a beneficial owner is able to sell our Interests,
the price received may be less than our estimated value (“Estimated Value”) per Interest indicated below.



Our Estimated
Value per Interest as of December 31, 2019 (the “Valuation Date”) has been determined to be $151.81 per Class
A Interest and $151.81 per Class I Interest. The Estimated Value per Class A Interest and the Estimated Value per Class I Interest
are based upon the estimated fair value of our assets less the estimated fair value of our liabilities as of the Valuation Date,
divided by the total number of our Class A Interests and Class I Interests outstanding as of the Valuation Date. To the extent
an investment is owned by a joint venture, we only include our share of the assets and liabilities based on our ownership percentage
in such joint venture.*The information used to generate the Estimated Value per Interest, including, but not limited to, market
information, investment and asset-level data and other information provided by third parties, was the most recent information
practically available as of the Valuation Date. This Estimated Value per Interest is provided to assist (i) plan fiduciaries in
fulfilling their annual valuation obligations as required by The Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
and (ii) broker-dealers that participated in our offering of Shares in meeting their customer account statement reporting obligations
as required by the Financial Industry Regulatory Authority, Inc. (“FINRA”).



The
Estimated Value per Class A Interest and the Estimated Value per Class I Interest were calculated by our Managing Trustee primarily
based on the fair value provided by Duff & Phelps, LLC (“Duff & Phelps”), a third-party independent valuation
and consulting firm engaged by our Managing Trustee to provide material assistance related to the valuation of our remaining investment,
as further described below. Duff & Phelps is a global valuation and corporate finance advisor with expertise in complex valuations.



Process and Methodology



Our Managing
Trustee established the Estimated Value per Interest as of the Valuation Date primarily based on the fair value of our remaining
investment provided by Duff & Phelps. In arriving at its fair value, Duff & Phelps utilized valuation methodologies that
both our Managing Trustee and Duff & Phelps believe are standard and acceptable in the equipment financing industry for the
type of asset held by us. The valuation was performed in accordance with standard industry practice and the provisions of NASD
Rule 2340 and FINRA Rule 2310. The basis of the fair value provided by Duff & Phelps is in accordance with the definition
of fair value in Accounting Standards Codification 820.



A summary
of the methodology used by Duff & Phelps, as well as the assumptions and limitations of its work for us and of our determination
of Estimated Value, are presented below.









*
An investment described in this Item 5 may not be consolidated and presented on our consolidated balance sheet as of December
31, 2019, but rather included as part of investment in joint venture on our consolidated balance sheet as of December 31, 2019.





1


Table of Contents




Discounted Cash
Flow



The discounted
cash flow (“DCF”) method was used to estimate value using the concept of the time value of money. All projected future
cash flows accruing to an asset were estimated and discounted to give their present values. The sum of all projected future cash
flows, both incoming and outgoing, comprises the net present value, which was recognized as the value or price of the cash flows.



Valuation of Sales-Type
Lease



The estimated
fair value of our sales-type lease held by our joint venture at the Valuation Date was derived by applying the DCF method to projected
cash flows that included all lease payments and the sales proceeds received subsequent to December 31, 2019 upon the lessee exercising
its purchase option to acquire the vessel in 2020. Under the DCF method, the projected cash flows were discounted at the Valuation
Date using discount rates reflecting the risks associated with the asset and the time value of money.



The discount
rates used ranged from 13.49% to 16.49%.



Cash, Other Assets
and Other Liabilities



Cash, other
assets and other liabilities (collectively, “Other Net Assets”) include our interest in items of tangible or monetary
value as of the Valuation Date. The fair values of Other Net Assets as of the Valuation Date were estimated by our Managing Trustee
to approximate their carrying values because of their nature or short-term maturities.



Assumptions and
Limitations



As with any
valuation methodology, the methodologies used to determine our Estimated Value per Interest are based upon a number of estimates
and assumptions that may prove later to be inaccurate or incomplete. Further, different market participants using different estimates
and assumptions could derive different estimated values. Our Estimated Value per Interest may also not represent the price that
our Interests would trade at on a national securities exchange, the amount realized in a sale, merger or liquidation, or the amount
a beneficial owner would realize in a private sale of our Interests.



The Estimated
Value per Interest calculated by our Managing Trustee is based on economic, market and other conditions and the information available
to us and Duff & Phelps as of the Valuation Date. The Estimated Value per Interest is expected to fluctuate over time in response
to future events, including, but not limited to, changes in market interest rates, changes in economic, market and regulatory
conditions, the prospects of the asset sectors in general or in particular, or the special purpose vehicle in which the asset
may be held, rental and growth rates, returns on competing investments, changes in administrative expenses and other costs, and
the amount of distributions paid on our Interests. The Estimated Value per Interest may also change as a result of changes in
the circumstances of the risks associated with the remaining investment.



There is no
assurance that the methodologies used to calculate the Estimated Value per Interest would be acceptable to FINRA or in compliance
with guidelines promulgated under ERISA with respect to their respective reporting requirements.



Our Managing
Trustee is ultimately and solely responsible for the establishment of our Estimated Value per Interest. In arriving at its determination
of the Estimated Value per Interest, our Managing Trustee considered all information provided in light of its own familiarity
with our assets and liabilities and the estimated fair value recommended by Duff & Phelps.



To the extent
we cannot fully liquidate the Trust and distribute remaining cash proceeds from liquidation to our beneficial owners by March
31, 2021, our next Estimated Value per Interest will be based upon our assets and liabilities as of December 31, 2020 and such
value will be included in our Annual Report on Form 10-K for the year ending December 31, 2020. We intend to publish an updated
Estimated Value per Class A Interest and Estimated Value per Class I Interest annually in our subsequent Annual Reports on Form
10-K to the extent they are required to be filed with the Securities and Exchange Commission.





2


Table of Contents






ICON ECI Fund Sixteen
Liquidating Trust

(A Delaware Statutory Trust)

Consolidated Balance Sheets

(unaudited)





|                                            |  | December 31,
|------------------------------------------- |  | ------------
|                                            |  | 2019        
|Assets                                     
|Cash                                        |  | $           
|Net investment in notes receivable          |  |             
|Investment in joint venture                 |  |             
|Other assets                                |  |             
|Total assets                                |  | $           
|                                            |  |             
|Liabilities and Equity                     
|Liabilities:                                |  |             
|Due to Managing Trustee and affiliates, net |  | $           
|Accrued expenses and other liabilities      |  |             
|Total liabilities                           |  |             
|                                            |  |             
|Commitments and contingencies (Note 10)     |  |             
|                                            |  |             
|Equity:                                     |  |             
|Beneficial owners' equity:                  |  |             
|Class A                                     |  |             
|Class I                                     |  |             
|Total beneficial owners' equity             |  |             
|Total liabilities and equity                |  | $           





See accompanying notes to consolidated
financial statements.





3


Table of Contents






ICON ECI Fund Sixteen
Liquidating Trust

(A Delaware Statutory Trust)

Consolidated Statements of Operations

(unaudited)





|                                                                                                                        |  | Years Ended December 31,
|----------------------------------------------------------------------------------------------------------------------- |  | ------------------------
|                                                                                                                        |  | 2019                    
|Revenue and other income:                                                                                               |  |                         
|Finance income                                                                                                          |  | $                       
|Income from investment in joint ventures                                                                                |  |                         
|Gain on sale of investment in joint venture                                                                             |  |                         
|Other income                                                                                                            |  |                         
|Total revenue and other income                                                                                          |  |                         
|                                                                                                                        |  |                         
|Expenses:                                                                                                               |  |                         
|Administrative expense reimbursements                                                                                   |  |                         
|General and administrative                                                                                              |  |                         
|Credit loss                                                                                                             |  |                         
|Total expenses                                                                                                          |  |                         
|Net loss                                                                                                                |  |                         
|Less: net income attributable to
    noncontrolling interests                                                           |  |                         
|Net loss attributable to Fund Sixteen Liquidating Trust                                                                 |  | $                       
|                                                                                                                        |  |                         
|Net loss attributable to Fund Sixteen Liquidating Trust allocable to:                                                   |  |                         
|Additional Class A beneficial owners and Class I beneficial
    owners                                                  |  | $                       
|Managing Trustee                                                                                                        |  |                         
|                                                                                                                        |  | $                       
|                                                                                                                        |  |                         
|Additional Class A beneficial interests:                                                                                |  |                         
|Net loss attributable to Fund
    Sixteen Liquidating Trust allocable to additional Class A beneficial owners           |  | $                       
|Weighted average number of additional
    Class A beneficial interests outstanding                                      |  |                         
|Net loss attributable to Fund
    Sixteen Liquidating Trust per weighted average additional Class A beneficial interest |  | $                       
|                                                                                                                        |  |                         
|Class I beneficial interests:                                                                                           |  |                         
|Net loss attributable to Fund
    Sixteen Liquidating Trust allocable to Class I beneficial owners                      |  | $                       
|Weighted average number of Class
    I beneficial interests outstanding                                                 |  |                         
|Net loss attributable to Fund
    Sixteen Liquidating Trust per weighted average Class I beneficial interest            |  | $                       





See accompanying notes to consolidated
financial statements.





4


Table of Contents






ICON ECI Fund Sixteen
Liquidating Trust

(A Delaware Statutory Trust)

Consolidated Statements of Changes in Equity

(unaudited)





|                               |  | Class
    A          |       |  | Class
    I                      |   |           |                   |  |  |                       |  |  |          
|------------------------------ |  | -------------------- | ----- |  | -------------------------------- | - | --------- | ----------------- |  |  | --------------------- |  |  | ---------
|                               |  | Managing
    Trustee |       |  | Additional
    Beneficial Owners |   |           | Total
    Class A |  |  | Beneficial
    Owners |  |  |          
|                               |  | Interests            |       |  | Amount                           |   |           | Interests         |  |  | Amount                |  |  | Interests
|Balance,
    December 31, 2017 |  |                      | 0.001 |  |                                  | $ | (65,694)  |                   |  |  | 17,189                |  |  | $        
|Net
    (loss) income          |  |                      | -     |  |                                  |   | (15,729)  |                   |  |  | -                     |  |  |          
|Distributions                  |  |                      | -     |  |                                  |   | (45,454)  |                   |  |  | -                     |  |  |          
|Balance,
    December 31, 2018 |  |                      | 0.001 |  |                                  |   | (126,877) |                   |  |  | 17,189                |  |  |          
|Net
    loss                   |  |                      | -     |  |                                  |   | (6,505)   |                   |  |  | -                     |  |  |          
|Balance,
    December 31, 2019 |  |                      | 0.001 |  |                                  | $ | (133,382) |                   |  |  | 17,189                |  |  | $        



See accompanying
notes to consolidated financial statements.





5


Table of Contents




ICON ECI Fund Sixteen
Liquidating Trust

(A Delaware Statutory Trust)

Consolidated Statements of Cash Flows

(unaudited)





|                                                                                                            |  | Years Ended December 31,
|----------------------------------------------------------------------------------------------------------- |  | ------------------------
|                                                                                                            |  | 2019                    
|Cash flows from operating activities:                                                                       |  |                         
|Net loss                                                                                                    |  | $                       
|Adjustments to reconcile net loss to net cash provided by
    (used in) operating activities:               |  |                         
|Finance income                                                                                              |  |                         
|Income from investment in joint ventures                                                                    |  |                         
|Gain on sale of investment in joint venture                                                                 |  |                         
|Credit loss, net                                                                                            |  |                         
|Changes in operating assets and liabilities:                                                                |  |                         
|Other assets                                                                                                |  |                         
|Due to Managing Trustee and affiliates, net                                                                 |  |                         
|Accrued expenses and other liabilities                                                                      |  |                         
|Distributions from joint ventures                                                                           |  |                         
|Net cash provided by (used in) operating activities                                                         |  |                         
|Cash flows from investing activities:                                                                       |  |                         
|Proceeds from sale of investment in joint venture                                                           |  |                         
|Investment in notes receivable                                                                              |  |                         
|Principal received on notes receivable                                                                      |  |                         
|Distributions received from joint ventures
    in excess of profits                                         |  |                         
|Net cash provided by investing activities                                                                   |  |                         
|Cash flows from financing activities:                                                                       |  |                         
|Distributions to noncontrolling interests                                                                   |  |                         
|Distributions to beneficial owners                                                                          |  |                         
|Net cash used in financing activities                                                                       |  |                         
|Net increase (decrease) in cash                                                                             |  |                         
|Cash, beginning of year                                                                                     |  |                         
|Cash, end of year                                                                                           |  | $                       
|                                                                                                            |  |                         
|Supplemental disclosure of non-cash investing and financing activities:                                     |  |                         
|Contribution of net investment in
    note and related interest receivables for interest in a joint venture |  | $                       







See accompanying
notes to consolidated financial statements.





6


Table of Contents








ICON ECI Fund Sixteen Liquidating Trust

(A Delaware Statutory Trust)

Notes to Consolidated
Financial Statements

December 31, 2019

(unaudited)





(1)   Organization



ICON ECI
Fund Sixteen Liquidating Trust (the “Liquidating Trust”), a Delaware statutory trust, was transferred all of the assets
and liabilities of ICON ECI Fund Sixteen (the “Fund”), a Delaware statutory trust, as of December 31, 2018. When used
in these notes to consolidated financial statements, the terms “we,” “us,” “our” or similar
terms refer to (i) the Fund and its consolidated subsidiaries for all periods prior to the transfer of the assets and liabilities
of the Fund to the Liquidating Trust and (ii) the Liquidating Trust and its consolidated subsidiaries as of December 31, 2018
and thereafter. The terms “Fund” and “Liquidating Trust” are interchangeable, as the context so requires,
when used in the consolidated financial statements.



Prior to
the transfer of the assets and liabilities of the Fund to the Liquidating Trust, the managing owner of the Fund was ICON MT 16,
LLC, a Delaware limited liability company (the “Managing Owner”), which is a wholly-owned subsidiary of ICON Capital,
LLC, a Delaware limited liability company (“ICON Capital”). ICON Capital was the Fund’s investment manager (the
 “Investment Manager”). Our Investment Manager originated and serviced our investments. Wilmington Trust, National
Association (the “Trustee”) served as our sole trustee pursuant to the Fund’s Fourth Amended and Restated Trust
Agreement (the “Fund Trust Agreement”). The Trustee delegated to our Managing Owner all of the power and authority
to manage the Fund’s business and affairs and had only nominal duties and liabilities to the Fund.



The Liquidating
Trust is governed by a Liquidating Trust Agreement (the “Liquidating Trust Agreement,” and together with the Fund
Trust Agreement, the “Trust Agreement”) that appointed our Investment Manager as the managing trustee of the Liquidating
Trust (the “Managing Trustee”). The terms “Investment Manager” and “Managing Trustee” are
interchangeable, as the context so requires, when used in the consolidated financial statements. Prior to the transfer of the
assets and liabilities of the Fund to the Liquidating Trust, the Fund’s assets included a secured term loan to CFL Momentum
Beheer B.V. and C.V. CFL Momentum (collectively, “CFL”) and a secured term loan to Lubricating Specialties Company
(“LSC”). These investments, as well as all other assets and liabilities of the Fund, were transferred to the Liquidating
Trust from the Fund on December 31, 2018 in order to reduce expenses and to maximize potential distributions to beneficial owners
of the Liquidating Trust. On December 31, 2018, all Shares (as defined below) were exchanged for an equal number of Class
A and/or Class I beneficial interests (collectively, the “Interests”) in the Liquidating Trust, as applicable. As
of December 31, 2019, the Liquidating Trust’s sole remaining portfolio investment was an investment in a sales-type lease
between a joint venture owned 8% by us and FWN Momentum B.V. (“FWN”) (see Note 4).



We operated
as a direct financing fund that primarily made investments in or that are collateralized by equipment and other corporate infrastructure
(collectively, “Capital Assets”). The investments were in companies that utilize Capital Assets to operate their businesses.
These investments were primarily structured as debt and debt-like financings such as loans, leases and other structured financing
transactions in or that are collateralized by Capital Assets.



Our Managing
Trustee manages and controls our business affairs, including, but not limited to, our equipment leases and other financing transactions.
Additionally, our Managing Trustee has a 1% interest in our profits, losses, distributions and liquidation proceeds.



Our offering
period commenced on July 1, 2013 and ended on December 31, 2014. Our Managing Owner determined to cease our offering period earlier
than originally anticipated as a result of lower than expected offering proceeds being raised. We offered to sell to the public
any combination of two classes of shares, Class A shares and Class I shares (collectively, the “Shares”), on a “best
efforts” basis with the intention of raising up to $250,000,000 of capital, of which $9,000,000 had been reserved for issuance
pursuant to our distribution reinvestment plan (the “DRIP”). Other than differing allocable fees and expenses, Class
A shares and Class I shares had identical rights and privileges, such as identical voting and distribution rights.



As of November
12, 2013 (the “Initial Closing Date”), we raised a minimum of $1,200,000 from the sale of our Shares, at which time
shareholders were admitted and we commenced operations. As of June 13, 2014, we raised the $12,500,000 minimum offering amount
for the Commonwealth of Pennsylvania. Subsequent to the Initial Closing Date, we returned the initial capital contribution of
$1,000 to CION Investment Group, LLC. From the commencement of our offering on July 1, 2013 through December 31, 2014, we sold
17,189 Class A shares to 351 Class A shareholders and 410 Class I shares to six Class I shareholders, of which 404 Class A shares
and 12 Class I shares were issued pursuant to the DRIP, representing an aggregate of $17,469,610 of capital contributions. From
the Initial Closing Date through December 31, 2014, we incurred sales commissions to third parties of $1,198,531 and dealer-manager
and distribution fees of $347,547 to CION Securities, LLC, the dealer-manager of our offering and an affiliate of our Managing
Trustee (“CION Securities”). In addition, organization costs of $8,418 and offering expenses of $161,422 were incurred
by us during such period. Organization costs were expensed when incurred and offering expenses were recorded as a reduction of
shareholders’ equity.





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ICON ECI Fund Sixteen Liquidating Trust

(A Delaware Statutory Trust)

Notes to Consolidated Financial Statements

December 31, 2019

(unaudited)





Our operating
period commenced on January 1, 2015. On April 24, 2017, we commenced a consent solicitation of our shareholders to further amend
and restate our Fund Trust Agreement in order to amend the definition of “operating period” to provide for the ability
of our Managing Owner to shorten our operating period in its sole and absolute discretion. The consent solicitation was completed
on May 24, 2017 with the requisite consents received from our shareholders. As a result, our Managing Owner ended our operating
period on May 31, 2017 and commenced our wind down period on June 1, 2017. During our wind down period, we have sold and will
continue to sell our assets and/or let our investments mature in the ordinary course of business.



On May 30,
2017, our Managing Trustee retained ABN AMRO Securities (USA) LLC (“ABN AMRO Securities”) as its financial advisor
to assist our Managing Trustee and us in identifying, evaluating and executing a potential sale of certain shipping and offshore
energy assets included within our investment portfolio. As a result of such identification and evaluation, on September 7, 2018,
an unaffiliated third-party purchased 100% of the limited liability company interests of ICON Fugro (as defined and discussed
in further detail in Note 4).



In accordance
with U.S. generally accepted accounting principles (“U.S. GAAP”) pertaining to transactions among entities under common
control, the financial condition and results of operations of the Fund are presented as those of the Liquidating Trust retroactively
to the beginning of the earliest period presented.



(2)   Summary of Significant
Accounting Policies



Basis of Presentation
and Consolidation



Our accompanying
consolidated financial statements have been prepared in accordance with U.S. GAAP. In the opinion of our Managing Trustee, all
adjustments, which are of a normal recurring nature, considered necessary for a fair presentation have been included.



The consolidated
financial statements include our accounts and the accounts of our majority-owned subsidiaries and other controlled entities. All
intercompany accounts and transactions have been eliminated in consolidation. In joint ventures where we have a controlling financial
interest, the financial condition and results of operations of the joint venture are consolidated. Noncontrolling interest represents
the minority owner’s proportionate share of its equity in the joint venture. The noncontrolling interest is adjusted for
the minority owner’s share of the earnings, losses, investments and distributions of the joint venture.



We account
for our noncontrolling interests in joint ventures where we have influence over financial and operational matters, generally 50% or
less ownership interest, under the equity method of accounting. In such cases, our original investments are recorded at cost and
adjusted for our share of earnings, losses and distributions. Distributions received from equity method investees are accounted
for under the cumulative earnings approach on our consolidated statements of cash flows. We account for investments in joint ventures
where we have virtually no influence over financial and operational matters using the cost method of accounting. In such cases,
our original investments are recorded at cost and any distributions received are recorded as revenue. All of our investments in
joint ventures are subject to our impairment review policy.



We report
noncontrolling interests as a separate component of consolidated equity and net income or loss attributable to noncontrolling
interests is included in consolidated net income or loss. The attribution of net income or loss between controlling and noncontrolling
interests is disclosed on our accompanying consolidated statements of operations.



Net income
or loss attributable to us per weighted average additional Class A Interest and Class I Interest outstanding is based upon the
weighted average number of additional Class A Interests and Class I Interests outstanding during the year.





8


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ICON ECI Fund Sixteen Liquidating Trust

(A Delaware Statutory Trust)

Notes to Consolidated Financial Statements

December 31, 2019

(unaudited)



Cash and Cash Equivalents



Cash and
cash equivalents include cash in banks and highly liquid investments with original maturity dates of three months or less.



Our cash
is held at one financial institution and at times may exceed insured limits. We have placed these funds in a high quality
institution in order to minimize risk relating to exceeding insured limits.



Organization Costs



Organization
costs included, among other things, the cost of organizing the Fund as a Delaware statutory trust, including the cost of legal
services and other fees pertaining to the Fund’s organization. All organization costs were funded by our Managing Trustee
and its affiliates and there was no liability for organization costs to the Fund until the Fund met the minimum offering requirement
on November 12, 2013. Organization costs were expensed when incurred, subject to the terms of the Fund Trust Agreement.



Offering Costs



Offering
costs included, among other things, legal fees and other costs pertaining to the preparation of the Fund’s registration
statement in connection with the public offering of our Shares. All offering costs were funded by our Managing Trustee and its
affiliates and there was no liability for offering costs to the Fund until the Fund met the minimum offering requirement on November
12, 2013. Offering costs were charged directly to shareholders’ equity as offering proceeds were raised, subject to the
terms of the Fund Trust Agreement.



Upfront Sales Commissions
and Sales Commission Trail



We paid
upfront sales commissions on Class A shares sold in the offering of up to 5.0% of gross offering proceeds from the sale
of such Class A shares. We also paid an annual sales commission trail of 0.75% of offering proceeds from the sale of
our Class A shares (net of dealer-manager fees and upfront sales commissions), which was paid quarterly commencing on the 13th
month following acceptance of the subscription for such Class A shares. We were obligated to pay the sales commission trail with
respect to Class A shares until the earlier to occur of: (i) total sales commissions and dealer-manager fees paid with respect
to the Class A shares following the completion of the offering equaling 10% of the gross proceeds received with respect
to the issuance of such shares from the primary portion of the offering, (ii) such shares are repurchased or transferred or (iii)
our entry into our wind down period. The upfront sales commissions and the sales commission trail were charged directly to shareholders’
equity upon acceptance of the subscription. As the sales commission trail was expected to be paid over a period of approximately four years,
we recorded the sales commission trail at its then present value upon acceptance of the subscription with a corresponding commission
payable included in accrued expenses and other liabilities on our consolidated balance sheets. Interest expense accreted with
respect to the commission payable was allocated only to Class A shares. We commenced our wind down period on June 1, 2017, at
which time we were no longer obligated to pay the sales commission trail and the remaining accrued commission payable was reversed
against equity.



Net Loss Per Interest



Our capital
structure consists of only common Interests outstanding. As a result, net loss per Interest, as presented, represents both basic
and fully diluted for the period presented in the consolidated financial statements. We calculate net loss per Interest using
the two-class method to reflect the different classes of our Interests. Net loss per additional Class A Interest and Class I Interest
is calculated by dividing the net loss attributable to additional Class A beneficial owners and Class I beneficial owners by the
respective weighted-average number of Interests issued and outstanding during the presented periods.



Distribution Fee



We paid
an annual distribution fee equal to 0.55% of gross offering proceeds from Class I shares sold in the offering. We were
obligated to pay the distribution fee with respect to Class I shares until the earlier to occur of: (i) total distribution fees
paid with respect to the Class I shares following the completion of the offering equaling 10% of gross proceeds received
with respect to the issuance of such shares from the primary portion of the offering or (ii) our entry into our wind down period.
The distribution fee was paid monthly. As we estimated the distribution fee was to be paid over a period of approximately seven years
before we commenced our wind down period, we recorded the distribution fee upon acceptance of the subscription with a corresponding
distribution fee payable included in accrued expenses and other liabilities on our consolidated balance sheets. We commenced our
wind down period on June 1, 2017, at which time we were no longer obligated to pay the distribution fee and the remaining distribution
fee payable previously accrued was reversed against equity.





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ICON ECI Fund Sixteen Liquidating Trust

(A Delaware Statutory Trust)

Notes to Consolidated Financial Statements

December 31, 2019

(unaudited)





Debt Financing Costs



Debt financing
costs associated with a line of credit arrangement were capitalized and included as other assets. Such costs were amortized to
interest expense over the term of the debt instrument using the effective interest rate method.



Asset Impairments



The significant
assets in our portfolio are periodically reviewed, no less frequently than annually or when indicators of impairment exist, to
determine whether events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. An impairment
loss will be recognized only if the carrying value of a long-lived asset is not recoverable and exceeds its fair market value.
If there is an indication of impairment, we will estimate the future cash flows (undiscounted and without interest charges) expected
from the use of the asset and its eventual disposition. Future cash flows are the future cash inflows expected to be generated
by an asset less the future outflows expected to be necessary to obtain those inflows. If an impairment is determined to exist,
the impairment loss will be measured as the amount by which the carrying value of a long-lived asset exceeds its fair value and
recorded in our consolidated statements of operations in the period the determination is made.



The events
or changes in circumstances that generally indicate that an asset may be impaired are (i) the estimated fair value of the underlying
asset is less than its carrying value or (ii) the lessee is experiencing financial difficulties and it does not appear likely
that the estimated proceeds from the disposition of the asset will be sufficient to satisfy the residual position in the asset.
The preparation of the undiscounted cash flows requires the use of assumptions and estimates, including the level of future rents,
the residual value expected to be realized upon disposition of the asset, estimated downtime between re-leasing events and the
amount of re-leasing costs. Our Managing Trustee’s review for impairment includes a consideration of the existence of impairment
indicators including third-party appraisals, published values for similar assets, recent transactions for similar assets, adverse
changes in market conditions for specific asset types and the occurrence of significant adverse changes in general industry and
market conditions that could affect the fair value of the asset.



Lease Classification
and Revenue Recognition



Each equipment
lease we enter into is classified as either a sales-type lease, a direct financing lease or an operating lease, based upon the
terms of each lease. The estimated residual value is a critical component of a lease and can directly influence the determination
of lease classification.



Our Managing
Trustee has an investment committee that approves each new equipment lease and other financing transaction. As part of its process,
the investment committee determines the estimated residual value, if any, to be used once the investment has been approved. The
factors considered in determining the estimated residual value include, but are not limited to, the creditworthiness of the potential
lessee, the type of equipment considered, how the equipment is integrated into the potential lessee’s business, the length
of the lease and the industry in which the potential lessee operates. Residual values are reviewed for impairment in accordance
with our impairment review policy.



The residual
value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term
fluctuations in the marketplace are disregarded and it is assumed that there is no necessity either to dispose of a significant
number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. The residual value is calculated
using information from various external sources, such as trade publications, auction data, equipment dealers, wholesalers and
industry experts, as well as inspection of the physical asset and other economic indicators.





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ICON ECI Fund Sixteen Liquidating Trust

(A Delaware Statutory Trust)

Notes to Consolidated Financial Statements

December 31, 2019

(unaudited)



For sales-type
and direct financing leases, we capitalize, at lease inception, the total minimum lease payments receivable from the lessee, the
estimated unguaranteed residual value of the equipment at lease termination and the initial direct costs related to the lease
to the extent fair value of the underlying asset equals its carrying value, less unearned income. Unearned income represents the
difference between the sum of the minimum lease payments receivable, plus the estimated unguaranteed residual value, minus the
cost of the leased equipment. Unearned income is recognized as finance income over the term of the lease using the effective interest
rate method. Under a sales-type lease, selling profit, if any, arising from the lease is recognized at inception, while under
a direct financing lease, selling profit, if any, is deferred and included in net investment in direct financing leases.



For operating
leases, rental income is recognized on a straight-line basis over the lease term. Billed operating lease receivables are
included in accounts receivable until collected or written off. We record a reserve if we deem any receivable not collectible.
The difference between the timing of the cash received and the income recognized on a straight-line basis is recognized as either
deferred revenue or other assets, as appropriate. Initial direct costs are capitalized as a component of the cost of the equipment
and depreciated over the lease term.



Notes Receivable
and Revenue Recognition



Notes receivable
were reported in our consolidated balance sheets at the outstanding principal balance, plus costs incurred to originate the loans,
net of any unamortized premiums or discounts on purchased loans. We used the effective interest rate method to recognize finance
income, which produced a constant periodic rate of return on the investment. Unearned income, discounts and premiums were amortized
to finance income in our consolidated statements of operations using the effective interest rate method. Interest receivable related
to the unpaid principal was recorded separately from the outstanding balance in our consolidated balance sheets. Upon the prepayment
of a note receivable, any prepayment penalties and unamortized loan origination, closing and commitment fees were recorded as
part of finance income in our consolidated statements of operations. Our notes receivable could have contained a paid-in-kind
(“PIK”) interest provision. Any PIK interest, if deemed collectible, was added to the principal balance of the note
receivable and was recorded as income.



Credit Quality of
Notes Receivable and Finance Leases and Credit Loss Reserve



Our Managing
Trustee monitors the ongoing credit quality of our financing receivables by (i) reviewing and analyzing a borrower’s financial
performance on a regular basis, including review of financial statements received on a monthly, quarterly or annual basis as prescribed
in the loan or lease agreement, (ii) tracking the relevant credit metrics of each financing receivable and a borrower’s
compliance with financial and non-financial covenants, (iii) monitoring a borrower’s payment history and public credit rating,
if available, and (iv) assessing our exposure based on the current investment mix. As part of the monitoring process, our Managing
Trustee may physically inspect the collateral or a borrower’s facility and meet with a borrower’s management to better
understand such borrower’s financial performance and its future plans on an as-needed basis.



As our financing
receivables, generally notes receivable and sales-type and direct financing leases, are limited in number, our Managing Trustee
is able to estimate the credit loss reserve based on a detailed analysis of each financing receivable as opposed to using portfolio-based
metrics. Our Managing Trustee does not use a system of assigning internal risk ratings to each of our financing receivables. Rather,
each financing receivable is analyzed quarterly and categorized as either performing or non-performing based on certain factors
including, but not limited to, financial results, satisfying scheduled payments and compliance with financial covenants. A financing
receivable is usually categorized as non-performing only when a borrower experiences financial difficulties and has failed to
make scheduled payments. Our Managing Trustee then analyzes whether the financing receivable should be placed on a non-accrual
status, a credit loss reserve should be established or the financing receivable should be restructured. As part of the assessment,
updated collateral value is usually considered and such collateral value can be based on a third-party industry expert appraisal
or, depending on the type of collateral and accessibility to relevant published guides or market sales data, internally derived
fair value. Material events would be specifically disclosed in the discussion of each financing receivable held.





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ICON ECI Fund Sixteen Liquidating Trust

(A Delaware Statutory Trust)

Notes to Consolidated Financial Statements

December 31, 2019

(unaudited)



Financing
receivables are generally placed on a non-accrual status when payments are more than 90 days past due. Additionally, our Managing
Trustee periodically reviews the creditworthiness of companies with payments outstanding less than 90 days and based upon our
Managing Trustee’s judgment, these accounts may be placed on a non-accrual status.



In accordance
with the cost recovery method, payments received on non-accrual financing receivables are applied to principal if there is doubt
regarding the ultimate collectability of principal. If collection of the principal of non-accrual financing receivables is not
in doubt, interest income is recognized on a cash basis. Financing receivables on non-accrual status may not be restored to accrual
status until all delinquent payments have been received, and we believe recovery of the remaining unpaid receivable is probable.



When our
Managing Trustee deems it is probable that we will not be able to collect all contractual principal and interest on a non-performing
financing receivable, we perform an analysis to determine if a credit loss reserve is necessary. This analysis considers the estimated
cash flows from the financing receivable, and/or the collateral value of the asset underlying the financing receivable when financing
receivable repayment is collateral dependent. If it is determined that the impaired value of the non-performing financing receivable
is less than the net carrying value, we will recognize a credit loss reserve or adjust the existing credit loss reserve with a
corresponding charge to earnings. We then charge off a financing receivable in the period that it is deemed uncollectible
by reducing the credit loss reserve and the balance of the financing receivable.



Initial Direct Costs



We capitalized
initial direct costs, including acquisition fees, associated with the origination and funding of leased assets and other financing
transactions. We paid acquisition fees through the end of our operating period to our Managing Trustee of up to 2.5% of the
purchase price of the investment made in Capital Assets by or on our behalf, including, but not limited to, the cash paid, indebtedness
incurred or assumed, and the excess of the collateral value of the Capital Assets over the amount of the investment, if any. The
costs of each transaction were amortized over the transaction term using the straight-line method for operating leases and the
effective interest rate method for sales-type and direct financing leases and notes receivable in our consolidated statements
of operations. Costs related to leases or other financing transactions that were not consummated were expensed in our consolidated
statements of operations.



Income Taxes



Prior to
the transfer of all the assets and liabilities of the Fund to the Liquidating Trust, we were taxed as a partnership for federal
and state income tax purposes. Therefore, no provision for federal and state income taxes was recorded since the liability for
such taxes was the responsibility of each of the individual shareholders rather than our business as a whole. Upon the transfer
of all assets and liabilities of the Fund to the Liquidating Trust, we continue to be taxed as a partnership for federal and state
income tax purposes and the Fund’s tax position and net operating loss carryforwards continue to be effective for the Liquidating
Trust. We are potentially subject to New York City unincorporated business tax (“UBT”), which is imposed on unincorporated
trade or business operating in New York City. The UBT is imposed for each taxable year at a rate of 4% of taxable income
allocated to New York City. We use the asset and liability method of accounting for the UBT. Under this method, deferred tax assets
and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities. Deferred
tax assets and liabilities are measured using enacted tax rates and laws that will be in effect when the differences are expected
to reverse. Valuation allowances are established when it is determined that it is more likely than not that the deferred tax assets
will not be realized.



Our federal,
state and local income tax returns for tax years for which the applicable statutes of limitations have not expired are subject
to examination by the applicable taxing authorities. All penalties and interest, if any, associated with income taxes are included
in general and administrative expense on our consolidated statements of operations.



Use of Estimates



The preparation
of financial statements in conformity with U.S. GAAP requires our Managing Trustee to make estimates and assumptions that affect
the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the consolidated
financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates primarily
include the determination of credit loss reserves and impairment losses. Actual results could differ from those estimates.





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ICON ECI Fund Sixteen Liquidating Trust

(A Delaware Statutory Trust)

Notes to Consolidated Financial Statements

December 31, 2019

(unaudited)



Recently Adopted
Accounting Pronouncements



In February
2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.
2016-02, Leases (“ASU 2016-02”), which requires lessees to recognize assets and liabilities for leases with
lease terms greater than twelve months on the balance sheet and disclose key information about leasing arrangements. ASU 2016-02
implements changes to lessor accounting focused on conforming with certain changes made to lessee accounting and the previously
released revenue recognition guidance. In July 2018, FASB issued ASU No. 2018-11, Leases (“ASU 2018-11”), which
provides an additional transition method by allowing companies to initially apply the new leases standard at the adoption date
and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. In addition,
ASU 2018-11 provides lessors a practical expedient to not separate non-lease components from the associated lease component under
certain circumstances. In December 2018, FASB issued ASU No. 2018-20, Leases (“ASU 2018-20”), which provides
guidance and clarification with respect to lessor accounting associated with (i) certain taxes collected from lessees, (ii) certain
lessor costs, and (iii) the recognition of variable payments for contracts with lease and non-lease components. We adopted ASU
2016-02, ASU 2018-11 and ASU 2018-20 on January 1, 2019 using the modified retrospective method, in which we applied the transition
provisions at the beginning of the period of adoption rather than at the beginning of the earliest comparative period presented.
Since we no longer had any lease arrangements as of January 1, 2019, the adoption of these lease standards did not result in a
cumulative effect adjustment recognized in the opening balance of retained earnings as of January 1, 2019.



Other Recent Accounting
Pronouncements



In June
2016, FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (“ASU 2016-13”), which modifies
the measurement of credit losses by eliminating the probable initial recognition threshold set forth in current guidance, and
instead reflects an entity’s current estimate of all expected credit losses. The measurement of expected credit losses is
based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable
forecasts that affect the collectability of the reported amount. An entity will apply the amendments within ASU 2016-13 through
a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is
effective. The adoption of ASU 2016-13 becomes effective for us on January 1, 2023 (see below), including interim periods within
that reporting period. Early adoption is permitted. The adoption of ASU 2016-13 is not expected to have a material effect on our
consolidated financial statements.



In August
2018, FASB issued ASU No. 2018-13, Fair Value Measurement(“ASU 2018-13”), which modifies the disclosure requirements
for fair value measurements. The adoption of ASU 2018-13 becomes effective for us on January 1, 2020, including interim periods
within that reporting period. Early adoption is permitted. Since ASU 2018-13 only modifies disclosure requirements, this guidance
is not expected to have a material effect on our consolidated financial statements.



In November
2019, FASB issued ASU No. 2019-10, Financial Instruments – Credit Losses, Derivatives and Hedging, and Leases (“ASU
2019-10”), which defers the effective dates of three major accounting standards for certain companies. Since we are a smaller
reporting company, the adoption date of ASU 2016-13 has been deferred to January 1, 2023. ASU 2019-10 had no impact on our adoption
date of ASU 2016-02, ASU 2018-11 and ASU 2018-20, each of which we adopted on January 1, 2019.



(3)   Net Investment in Notes
Receivable



As of December 31,
2019, we had no net investment in notes receivable. As of December 31, 2018, we had investment in notes receivable on non-accrual
status of $2,535,000, of which $1,554,257 was reserved. See below for further details regarding our note receivable related
to LSC. As of December 31, 2018, we had net investment in notes receivable of $514,363, of which $18,229 was past due 90 days
or more and still accruing. See below for further details regarding our note receivable related to CFL.





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ICON ECI Fund Sixteen Liquidating Trust

(A Delaware Statutory Trust)

Notes to Consolidated Financial Statements

December 31, 2019

(unaudited)



Net investment
in notes receivable consisted of the following:





|                                           |  | December
    31, 2018
|------------------------------------------ |  | ---------------------
|Principal outstanding (1)                  |  | $                    
|Deferred fees                              |  |                      
|Credit loss reserve(2)                     |  |                      
|Net
    investment in notes receivable (3) |  | $                    



(1)As of December 31, 2018, total principal outstanding related to our impaired loan was $2,535,000.

(2)As of December 31, 2018, we had a credit loss reserve of $1,652,350 related to LSC, of which $98,093 was reserved against
the accrued interest receivable included in other assets and $1,554,257 was reserved against net investment in notes receivable.

(3)As of December 31, 2018, net investment in note receivable related to our impaired loan was $864,000.



CFL



On December
20, 2016, we, ICON Equipment and Corporate Infrastructure Fund Fourteen Liquidating Trust (formerly, ICON Equipment and Corporate
Infrastructure Fund Fourteen, L.P.) (“Fund Fourteen”) and ICON ECI Fund Fifteen Liquidating Trust (formerly, ICON
ECI Fund Fifteen, L.P.) (“Fund Fifteen”), each an entity also managed by our Managing Trustee, entered into a secured
term loan credit facility agreement with CFL to provide a credit facility of up to $7,400,000, of which our commitment of $592,000 was
funded on December 21, 2016. The loan bore interest at 8% per year and we were entitled to an equity participation fee
based partly on the fair market value of the vessel upon repayment of the loan. The loan was scheduled to mature on December 21,
2020 and was secured by, among other things, a first priority security interest in and earnings from a motor cargo vessel. CFL
and Industrial Maritime Carriers (Bermuda), Ltd. (“IMC”), the sub-charterer of the vessel, were in default of their
respective obligations under the loan documents and the sub-charter, respectively, due to, among other things (i) CFL frequently
incurred shortfalls on its quarterly payments to us under the loan agreement; (ii) CFL’s failure to ensure the payment of,
and IMC’s failure to pay, all sub-charter payments related to the vessel directly into a designated earnings account; (iii)
CFL’s failure to maintain a minimum liquidity amount in such designated earnings account; and (iv) CFL’s failure to
satisfy its financial reporting requirements under the loan agreement. As a result, on October 5, 2018, we advised CFL that we
were accelerating the repayment of all amounts payable under the loan and demanded that CFL and/or its guarantors immediately
repay such amounts to us. CFL and its guarantors failed to make such payments. On October 22, 2018, we exercised our rights under
the loan documents to assume CFL’s obligations under the sub-charter with IMC and appointed our designee to replace CFL
as the owner of the vessel solely for purposes of the sub-charter. As a result, sub-charter payments were paid directly to us
by IMC during late February to early April of 2019 to partially satisfy amounts payable under the loan.





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ICON ECI Fund Sixteen Liquidating Trust

(A Delaware Statutory Trust)

Notes to Consolidated Financial Statements

December 31, 2019

(unaudited)



In
January 2019, we further exercised our rights under the loan documents and appointed our designee to replace a CFL affiliate
to manage the day-to-day technical and operational activities of the vessel. In April 2019, we exercised our security rights
under the loan documents and arrested the motor cargo vessel after filing a complaint with, and receiving an order of arrest
and seizure from, the United States District Court for the Southern District of Texas (the “Court”). Shortly
thereafter, we filed with the Court a motion for judicial sale of the vessel in order for us to ultimately sell the vessel
and allocate the sale proceeds to repay all or a portion of the outstanding amounts owed by CFL under the loan. On May 30,
2019, after the Court rejected all of CFL’s arguments made and motions filed in CFL’s attempt to prevent the sale
of the vessel, the Court ordered that the sale take place at a public auction conducted by the U.S. Marshal on June 25, 2019.
At the public auction, we submitted the minimum bid on the vessel based on credit (a non-cash bid based on our standing as a
creditor of CFL with claims against the vessel). No other party that attended the auction submitted a bid and therefore, we
won the auction and ownership of the vessel. On July 10, 2019, the Court rejected additional opposition by CFL and issued an
order confirming the June 25, 2019 judicial sale of the vessel to us and ordered the U.S. Marshal to issue a bill of sale
reflecting the ownership change. On July 11, 2019, the U.S. Marshal issued a bill of sale reflecting the owner of the vessel
as ICON Momentum, LLC (“ICON Momentum”), a newly-formed joint venture owned 8% by us, 75% by Fund Fifteen and 17%
by Fund Fourteen. The credit bid at the public auction, and the judicial sale of the vessel to ICON Momentum, were all
non-cash in nature. As a result, in substance, we received our proportionate share of ownership in the vessel through ICON
Momentum based on our proportionate share of the credit facility that was funded to CFL in December 2016, with the goal of
ultimately selling the vessel and allocating the sale proceeds to repay all or a portion of the outstanding amounts owed by
CFL under the loan. We did not recognize any gain or loss as part of these transactions. As of July 11, 2019, the net
investment in note and interest receivables due from CFL was $560,356, which our Managing Trustee deemed to be collectible
through the bareboat charter that ICON Momentum entered into, as further described below. We reserve the right to seek
further recovery from CFL to the extent the cash proceeds generated from the vessel were less than the outstanding amounts
owed by CFL under the loan, as well as any vessel operating expenses and other costs we have incurred on behalf of CFL or
incurred as a result of exercising our rights against CFL and the vessel.



In order
to commence generating cash proceeds from the vessel, ICON Momentum subsequently entered into a six-month bareboat charter with
FWN and ultimately sold the vessel to FWN (see Note 4).



| | LSC | 
| | --- | 



On December
30, 2016, we, Fund Fourteen and Fund Fifteen entered into a secured term loan agreement with LSC to provide a loan in the aggregate
amount of $32,500,000, of which our commitment of $2,600,000 was funded on such date. The loan bore interest at
the London Interbank Offered Rate (“LIBOR”), subject to a 1% floor, plus 11% per year, and was for
a period of four years maturing on December 30, 2020. The loan was secured by a second priority security interest in LSC’s
accounts receivable and inventory and a first priority security interest in all of LSC’s other assets.



LSC was
experiencing financial difficulties and had failed to make its quarterly in-arrears payments since July 1, 2018. During the three
months ended September 30, 2018, LSC engaged a chief restructuring officer and we were working with LSC and its stakeholders to
assess LSC’s financial condition for purposes of formulating a restructuring plan. As part of these discussions, on October
19, 2018, we, LSC and each of its other lenders entered into forbearance agreements under which we agreed to forbear from exercising
our rights under the loan agreement as a result of LSC’s various defaults until no later than January 15, 2019, while we,
LSC and each of its other stakeholders continued negotiating a restructuring plan. In light of these developments, our Managing
Trustee placed the note receivable on non-accrual status and determined that there was doubt regarding the collectability of the
note receivable. Our Managing Trustee assessed the collectability of the note receivable by using a weighted-average of the concluded
values from a market approach and an income approach utilizing (i) an enterprise value derived from adjusted EBITDA multiples
of certain comparable public companies and of certain targeted/acquired companies and (ii) the value derived from discounted cash
flows using company-specific projections and discount rates for companies of similar size and/or risk profiles. Based on such
assessment, our Managing Trustee believed that we could potentially not be able to recover approximately $800,000 to $1,200,000
of the outstanding balance due from LSC as of September 30, 2018. During the three months ended September 30, 2018, we recorded
a credit loss of $1,076,350 based on this assessment, which our Managing Trustee believed was the best estimate considering information
that was then currently available.



In 2019,
we, LSC and each of its other lenders amended the forbearance agreements on multiple occasions, with the last amendment extending
the forbearance period to June 4, 2019, while LSC and its advisers negotiated with a strategic buyer for the sale of all or substantially
all of LSC’s assets or outstanding equity and to allow time for such buyer to perform its due diligence investigation of
LSC. On February 15, 2019, we, Fund Fourteen and Fund Fifteen provided a “first-out” senior secured bridge loan in
the aggregate amount of $500,000 to LSC, of which our commitment was $40,000, that (i) was scheduled to mature on the termination
of the forbearance period without extension by all parties; and (ii) was secured by a first priority security interest in all
of LSC’s assets. On the same date, LSC’s senior lender also provided a “first-out” senior secured bridge
loan in the aggregate amount of $1,000,000 on the same terms and conditions as our bridge loan to LSC. In February 2019, LSC and
the buyer signed a letter of intent for the purchase of all or substantially all of LSC’s assets or outstanding equity,
subject to certain customary closing conditions, including satisfactory completion of the buyer’s due diligence investigation.
On March 7, 2019, the buyer of LSC provided a “first-out” senior secured bridge loan in the amount of $3,000,000 to
LSC for its working capital purposes while sale negotiations were ongoing that (a) was scheduled to mature on September 7, 2019
and (b) shared priority in repayment with our and the senior lender’s bridge loans provided to LSC on February 15, 2019.





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ICON ECI Fund Sixteen Liquidating Trust

(A Delaware Statutory Trust)

Notes to Consolidated Financial Statements

December 31, 2019

(unaudited)



Our Managing
Trustee reassessed the collectability of the impaired loan based on these developments as well as updated appraised values of
the collateral securing our loan and determined that we could potentially not be able to recover an additional $480,000 to $1,260,000
of the outstanding balance due from LSC. As a result, during the three months ended December 31, 2018, we recorded an additional
credit loss of $576,000, which our Managing Trustee believed was the best estimate within this range considering information that
was then currently available.



On May
28, 2019, the buyer completed the purchase of substantially all of the assets of LSC and a portion of the sales proceeds was
used by LSC to repay the note receivable, of which we received $815,217. As a result of this repayment, an additional loss
of $88,783 was recorded during the year ended December 31, 2019. In addition, we wrote off an aggregate credit loss reserve
previously recognized of $1,652,350 and the same corresponding balance related to the note and interest receivables during
the year ended December 31, 2019.



As of December
31, 2018, our net investment in note receivable related to LSC was $864,000. During the year ended December 31, 2019, we did not
recognize any finance income. During the year ended December 31, 2018, we recognized finance income of $214,547, of which no amount
was recognized on a cash basis.



Credit loss
allowance activities for the years ended December 31, 2019 and 2018 were as follows:





|Credit Loss Allowance                            
|-------------------------------------------------
|Allowance for credit loss as of December 31, 2017
|Provisions                                       
|Write-offs, net of recoveries                    
|Allowance for credit loss as of December 31, 2018
|Provisions                                       
|Write-offs, net of recoveries                    
|Allowance for credit loss as of December 31, 2019





(4)   Investment in Joint
Ventures



Geotechnical Drilling Vessels



On December
23, 2015, ICON Fugro Holdings, LLC (“ICON Fugro”), a joint venture owned 10% by us, 75% by Fund
Fifteen and 15% by Fund Fourteen, through two indirect subsidiaries, entered into memoranda of agreement to purchase two geotechnical
drilling vessels, the Fugro Scout and the Fugro Voyager (collectively, the “Fugro Vessels”), from affiliates of Fugro
N.V. (“Fugro”) for an aggregate purchase price of $130,000,000. The aggregate purchase price was funded by the
indirect subsidiaries through (i) $16,500,000 in cash; (ii) $91,000,000 in financing through a senior secured loan from ABN AMRO
Bank N.V. (“ABN AMRO”), Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. (“Rabobank”) and NIBC Bank
N.V. (“NIBC”); and (iii) seller’s credits of $22,500,000. The Fugro Scout and the Fugro Voyager were delivered
on December 24, 2015 and January 8, 2016, respectively. The Fugro Vessels were bareboat chartered to affiliates
of Fugro for a period of 12 years upon the delivery of each respective vessel, although such charters could have been
terminated by the indirect subsidiaries after year five. Our contribution to ICON Fugro was $2,377,250.



As part
of our Managing Trustee’s and ABN AMRO Securities’ efforts to identify and execute the sale of certain of our shipping
and offshore energy assets, a price indicator from a potential purchaser triggered an impairment assessment on our investment
in this joint venture. As a result of such assessment, our Managing Trustee believed that the loss in value of this investment
was other than a temporary decline and as a result, determined to record an impairment loss of $595,000 on our investment
in joint venture related to Fugro during the year ended December 31, 2017.





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ICON ECI Fund Sixteen Liquidating Trust

(A Delaware Statutory Trust)

Notes to Consolidated Financial Statements

December 31, 2019

(unaudited)



On September
7, 2018, an unaffiliated third-party purchased 100% of the limited liability company interests of ICON Fugro for net
sales proceeds of $27,727,846. As a result, we recorded a gain on sale of investment in joint venture of $302,584 during
the year ended December 31, 2018.



Information
as to the results of operations of this joint venture is summarized as follows:





|                        |  | Year Ended
    December 31, 2018
|----------------------- |  | --------------------------------
|Revenue                 |  | $                               
|Net income              |  | $                               
|Our share of net income |  | $                               







Motor Cargo Vessel



As a result
of (i) the continuous defaults of the secured term loan credit facility and related transaction documents by CFL; (ii) our arrest
and seizure of the motor cargo vessel in April 2019; (iii) the judicial sale of the vessel in June 2019 by way of public auction;
and (iv) the Court’s confirmation of such judicial sale in July 2019, the U.S. Marshal issued a bill of sale on July 11,
2019 reflecting ICON Momentum, a joint venture owned 8% by us, as the owner of the vessel (see Note 3). In order to commence generating
cash proceeds from the vessel, in July 2019, ICON Momentum entered into a six-month bareboat charter with FWN that (a) became
effective on October 10, 2019; (b) provided for the monthly drawdown of charter hire deposited by FWN with ICON Momentum; and
(c) granted FWN options to purchase the vessel during the charter period. ICON Momentum accounted for the charter as a sales-type
lease and the joint venture recognized a selling profit of $208,227 on the commencement of the charter, of which our portion was
$16,658. On February 10, 2020, FWN exercised its option to purchase the vessel pursuant to the terms of the bareboat charter for
a purchase price of $6,722,000, of which our portion was $537,760. No gain or loss was recognized by the joint venture from this
sale transaction.



Information
as to the results of operations of this joint venture is summarized as follows:





|                        |  | Year Ended
    December 31, 2019
|----------------------- |  | --------------------------------
|Revenue                 |  | $                               
|Net income              |  | $                               
|Our share of net income |  | $                               



(5)  
Transactions with Related Parties



We entered
into certain agreements with our Managing Trustee and CION Securities whereby we paid or pay certain fees and reimbursements to
these parties. We paid CION Securities (i) a dealer-manager fee for Class A shares sold in the offering equal to 2% of gross offering
proceeds from sales of such Class A shares for managing the offering and to reimburse the dealer-manager for wholesaling fees
and expenses and (ii) a distribution fee equal to 0.55% of gross offering proceeds from Class I shares sold in the offering for
managing the distribution of the Class I shares. We were obligated to pay the distribution fee with respect to the Class I shares
sold in the offering until the earlier to occur of: (i) total distribution fees paid with respect to the Class I shares following
the completion of the offering equaling 10% of the gross proceeds received with respect to the issuance of such shares from the
primary portion of the offering or (ii) our entry into our wind down period. We commenced our wind down period on June 1, 2017.
As a result, we were no longer obligated to pay distribution fees to CION Securities as of such date. No dealer-manager or distribution
fees were paid on any Shares sold pursuant to the DRIP.



Our Managing
Trustee also has a 1% interest in our profits, losses, distributions and liquidation proceeds. In addition, our Managing Trustee
and its affiliates were reimbursed for a portion of the organization and offering expenses incurred in connection with our organization
and offering of Shares and will be reimbursed for administrative expenses incurred in connection with our operations. The reimbursement
of organization and offering expenses was capped at the lesser of 1.44% of the maximum primary offering amount of $241,000,000
and the actual costs and expenses incurred by our Managing Trustee and its affiliates. Through the end of our offering period,
our Managing Trustee and its affiliates incurred organization and offering expenses of $1,759,237 on our behalf, of which our
Managing Trustee and its affiliates determined only to seek reimbursement of $239,758.





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ICON ECI Fund Sixteen Liquidating Trust

(A Delaware Statutory Trust)

Notes to Consolidated Financial Statements

December 31, 2019

(unaudited)



We paid
our Managing Trustee (i) a management fee of up to 3.50% of the gross periodic payments due and paid from our investments and
(ii) acquisition fees of up to 2.50% of the total purchase price (including indebtedness incurred or assumed therewith) of, or
the value of the Capital Assets secured by or subject to, each of our investments. Effective July 1, 2016, our Managing Trustee
reduced its management fee by 50% (up to 1.75% of the gross periodic payments due and paid from our investments). Effective December
1, 2017, our Managing Trustee waived all future management fees.



Administrative
expense reimbursements are costs incurred by our Managing Trustee or its affiliates that are necessary to our operations. These
costs include our Managing Trustee’s and its affiliates’ legal, accounting, investor relations and operations personnel,
as well as professional fees and other costs that are charged to us. Excluded are salaries and related costs, office rent, travel
expenses and other administrative costs incurred by individuals with a controlling interest in our Managing Trustee.



We paid
distributions to our Managing Trustee of $0 and $45,454 for the years ended December 31, 2019 and 2018, respectively. Additionally,
our Managing Trustee’s interest in the net loss attributable to us was $6,505 and $15,729 for the years ended December 31,
2019 and 2018, respectively.



Fees and
other expenses incurred by us to our Managing Trustee or its affiliates were as follows:





|                                                |  |                  |  |                                               |  | Years Ended December 31,
|----------------------------------------------- |  | ---------------- |  | --------------------------------------------- |  | ------------------------
|Entity                                          |  | Capacity         |  | Description                                   |  | 2019                    
|ICON Capital, LLC                               |  | Managing Trustee |  | Administrative
    expense reimbursements (1) |  | $                       
|(1)  Amount
    charged directly to operations. | 



At December 31,
2019 and 2018, we had a net payable of $721,167 and $89,072, respectively, due to our Managing Trustee and affiliates. At December
31, 2019, the payable primarily consisted of $629,985 due to Fund Fifteen related to a joint venture distribution. At December
31, 2018, the payable primarily consisted of administrative expense reimbursements.



(6)   Fair Value Measurements



During the
years ended and as of December 31, 2019 and 2018, we did not have any assets or liabilities measured at fair value on both recurring
or nonrecurring basis. Fair value information with respect to certain of our other assets and liabilities is not separately provided
since the carrying value of financial assets and liabilities approximates fair value due to their short-term maturities.



(7)   Concentrations of Risks



In the normal
course of business, we are exposed to two significant types of economic risk: credit and market. Credit risk is the risk
of a borrower, lessee or other counterparty’s inability or unwillingness to make contractually required payments. Concentrations
of credit risk with respect to borrowers, lessees or other counterparties are dispersed across different industry segments within
the United States and throughout the world.



Market risk
reflects the change in the value of debt instruments, derivatives and credit facilities due to changes in interest rate spreads
or other market factors. We believe that the carrying value of our investments is reasonable, taking into consideration these
risks, along with estimated collateral values, payment history and other relevant information.



At times,
our cash may exceed insured limits. We have placed these funds in a high-quality institution in order to minimize the risk of
loss relating to exceeding insured limits.



For the
year ended December 31, 2019, we had one borrower that accounted for 100% of our finance income. Our income from investment
in joint ventures was derived from our investment in one joint venture.



For the
year ended December 31, 2018, we had two borrowers that accounted for 100% of our finance income. Our income from investment
in joint ventures was primarily derived from our investment in one joint venture.



As of December 31,
2019, we had one lessee through our joint venture investment that accounted for 14.7% of total assets.



As of December 31,
2018, we had two borrowers that accounted for 39.8% of total assets.





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ICON ECI Fund Sixteen Liquidating Trust

(A Delaware Statutory Trust)

Notes to Consolidated Financial Statements

December 31, 2019

(unaudited)



(8)  Income Taxes



We are taxed
as a partnership for federal and state income tax purposes. Therefore, no provision for federal and state income taxes has been
recorded since the liability for such taxes is the responsibility of each of the individual beneficial owners rather than our
business as a whole. We are potentially subject to UBT, which is imposed on unincorporated trade or business operating in New
York City. The UBT is imposed for each taxable year at a rate of 4% of taxable income allocated to New York City. We use the asset
and liability method of accounting for the UBT. Under this method, deferred tax assets and liabilities are determined based on
differences between financial reporting and tax basis of assets and liabilities. Deferred tax assets and liabilities are measured
using enacted tax rates and laws that will be in effect when the differences are expected to reverse. Valuation allowances are
established when it is determined that it is more likely than not that the deferred tax assets will not be realized.



Deferred
tax assets are comprised of the following:





|                                 |  | December 31,
|-------------------------------- |  | ------------
|                                 |  | 2019        
|Deferred tax assets:             |  |             
|Net operating loss carryforwards |  | $           
|Unused credit loss deductions    |  |             
|Valuation allowance              |  |             
|Total net deferred tax assets    |  | $           



Net operating
losses generated during 2018 and onwards from UBT are available to offset only 80% of taxable income each year with indefinite
carryforward periods. Net operating losses generated before 2018 from UBT are permitted to carry forward for 20 years and are
due to expire at various dates, but no later than 2038. The unused net operating losses generated before 2018 are not subject
to the 80% limitation of taxable income.



We did not
have any material liabilities recorded related to uncertain tax positions nor did we have any unrecognized tax benefits as of
the periods presented herein. Conclusions regarding tax positions are subject to review and may be adjusted at a later date
based on factors including, but not limited to, on-going analyses of tax laws, regulations and interpretations thereof.





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ICON ECI Fund Sixteen Liquidating Trust

(A Delaware Statutory Trust)

Notes to Consolidated Financial Statements

December 31, 2019

(unaudited)



(9)  Geographic Information



Geographic
information for revenue, long-lived assets and other assets deemed relatively illiquid, based on the country of origin, was as
follows:



|                                         |  | Year Ended December 31, 2019
|---------------------------------------- |  | ----------------------------
|                                         |  | North America               
|Revenue and other income:                |  |                             
|Finance income                           |  | $                           
|Income from investment in joint ventures |  | $                           





|                                                 |  | At December 31, 2019
|------------------------------------------------ |  | --------------------
|                                                 |  | North America       
|Long-lived assets:                               |  |                     
|Investment in joint venture                      |  | $                   
|(a)Vessels are generally free to trade worldwide |  |                     





|                                         |  | Year Ended December 31, 2018
|---------------------------------------- |  | ----------------------------
|                                         |  | North America               
|Revenue and other income:                |  |                             
|Finance income                           |  | $                           
|Income from investment in joint ventures |  | $                           





|                                                 |  | At December 31, 2018
|------------------------------------------------ |  | --------------------
|                                                 |  | North America       
|Long-lived assets:                               |  |                     
|Net investment in notes
    receivable           |  | $                   
|(a)Vessels are generally free to trade worldwide |  |                     





(10) Commitments and Contingencies



At the time
we acquire or divest of our interest in Capital Assets, we may, under very limited circumstances, agree to indemnify the seller
or buyer for specific contingent liabilities. Our Managing Trustee believes that any liability of ours that may arise as a result
of any such indemnification obligations may or may not have a material adverse effect on our consolidated financial condition
or results of operations taken as a whole.



(11) Income Tax Reconciliation



At December 31,
2019 and 2018, beneficial owners’ equity included in the consolidated financial statements totaled $2,671,929 and $3,322,387,
respectively. Beneficial owners’ equity for federal income tax purposes at December 31, 2019 and 2018 totaled $3,739,075
and $6,287,589, respectively. The difference arises primarily from sales and offering expenses reported as a reduction in beneficial
owners’ capital accounts for financial reporting purposes, but not for federal income tax reporting purposes, and differences
in (i) taxable income or loss from joint ventures primarily due to differences in impairment loss, depreciation and amortization,
and (ii) deductibility of credit loss between financial reporting purposes and federal income tax reporting purposes.





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ICON ECI Fund Sixteen Liquidating Trust

(A Delaware Statutory Trust)

Notes to Consolidated Financial Statements

December 31, 2019
 (unaudited)





The following
table reconciles net loss attributable to us for financial statement reporting purposes to net (loss) income attributable to us
for federal income tax purposes for the years ended December 31, 2019 and 2018:



|                                                                                                     |  | Years Ended December 31,
|---------------------------------------------------------------------------------------------------- |  | ------------------------
|                                                                                                     |  | 2019                    
|Net loss attributable to Fund Sixteen Liquidating Trust per financial
    statements                 |  | $                       
|Taxable income (loss) from joint ventures                                                            |  |                         
|Taxable gain on sale of investment in joint venture                                                  |  |                         
|Credit loss                                                                                          |  |                         
|Taxable income attributable to noncontrolling interests                                              |  |                         
|Other                                                                                                |  |                         
|Net (loss) income attributable to Fund Sixteen Liquidating
    Trust for federal income tax purposes |  | $                       







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Item 9A. Controls and Procedures



Evaluation of disclosure controls and
procedures



In connection with
the preparation of this Annual Report on Form 10-K for the year ended December 31, 2019, our Managing Trustee carried out
an evaluation, under the supervision and with the participation of the management of our Managing Trustee, including its Co-Chief
Executive Officers and the Principal Financial and Accounting Officer, of the effectiveness of the design and operation of our
Managing Trustee’s disclosure controls and procedures as of the end of the period covered by this report pursuant to the
Securities Exchange Act of 1934, as amended. Based on the foregoing evaluation, the Co-Chief Executive Officers and the Principal
Financial and Accounting Officer concluded that our Managing Trustee’s disclosure controls and procedures were effective.



In designing and evaluating
our Managing Trustee’s disclosure controls and procedures, our Managing Trustee recognized that disclosure controls and
procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives
of the disclosure controls and procedures are met. Our Managing Trustee’s disclosure controls and procedures have been designed
to meet reasonable assurance standards. Disclosure controls and procedures cannot detect or prevent all error and fraud. Some
inherent limitations in disclosure controls and procedures include costs of implementation, faulty decision-making, simple error
and mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people,
or by management override of the controls. The design of any system of controls is based, in part, upon certain assumptions about
the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under
all anticipated and unanticipated future conditions. Over time, controls may become inadequate because of changes in conditions,
or the degree of compliance with established policies or procedures.



Our Managing Trustee’s
Co-Chief Executive Officers and Principal Financial and Accounting Officer have determined that no weakness in disclosure controls
and procedures had any material effect on the accuracy and completeness of our financial reporting and disclosure included in
this Annual Report on Form 10-K.



Evaluation of internal control over
financial reporting



Our Managing Trustee
is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial
reporting is defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended, as a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that
(1) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions
of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation
of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the
company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets
that could have a material effect on the financial statements.



Because of its inherent
limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation
of effectiveness to future periods are subject to the risks that controls may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may deteriorate.



Our Managing Trustee
assessed the effectiveness of its internal control over financial reporting as of December 31, 2019. In making this assessment,
management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in “Internal
Control - Integrated Framework” as issued in 2013.



Based on its assessment,
our Managing Trustee believes that, as of December 31, 2019, its internal control over financial reporting is effective.



Changes in internal control over financial
reporting



There were no changes
in our Managing Trustee’s internal control over financial reporting during the year ended December 31, 2019 that materially
affected, or are reasonably likely to materially affect, its internal control over financial reporting.





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SIGNATURES



Pursuant
to the requirements of Section 13 or 15(d) 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.



ICON ECI Fund Sixteen
Liquidating Trust

(Registrant)



By: ICON Capital,
LLC

(Managing Trustee
of the Registrant)



March 16, 2020



|By: | /s/ Michael A. Reisner                      | 
|--- | ------------------------------------------- | 
|    | Michael A. Reisner                          | 
|    | Co-Chief Executive Officer and Co-President | 
|    | (Co-Principal Executive Officer)            | 



|By: | /s/ Mark Gatto                              | 
|--- | ------------------------------------------- | 
|    | Mark Gatto                                  | 
|    | Co-Chief Executive Officer and Co-President | 
|    | (Co-Principal Executive Officer)            | 



Pursuant
to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf
of the registrant and in the capacities and on the dates indicated.



ICON ECI Fund Sixteen
Liquidating Trust

(Registrant)



By: ICON Capital,
LLC

(Managing Trustee
of the Registrant)



March 16, 2020



|By: | /s/ Michael A. Reisner                                | 
|--- | ----------------------------------------------------- | 
|    | Michael A. Reisner                                    | 
|    | Co-Chief Executive Officer, Co-President and Director | 
|    | (Co-Principal Executive Officer)                      | 



|By: | /s/ Mark Gatto                                        | 
|--- | ----------------------------------------------------- | 
|    | Mark Gatto                                            | 
|    | Co-Chief Executive Officer, Co-President and Director | 
|    | (Co-Principal Executive Officer)                      | 



|By: | /s/ Christine H. Yap                         | 
|--- | -------------------------------------------- | 
|    | Christine H. Yap                             | 
|    | Managing Director                            | 
|    | (Principal Financial and Accounting Officer) | 



Supplemental
Information to be Furnished With Reports Filed Pursuant to Section 15(d) of the Act by Registrants which Have Not Registered Securities
Pursuant to Section 12 of the Act.



No annual report
or proxy material has been sent to beneficial owners.





23