Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 31, 2021 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Entity File Number | 000-54931 | |
Entity Registrant Name | ATEL 15, LLC | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 45-1625956 | |
Entity Address, Address Line One | The Transamerica Pyramid | |
Entity Address, Address Line Two | 600 Montgomery Street, 9th Floor | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94111 | |
City Area Code | 415 | |
Local Phone Number | 989-8800 | |
Title of 12(g) Security | Limited Liability Company Units | |
No Trading Symbol Flag | true | |
Security Exchange Name | NONE | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001519117 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Smaller Reporting Company | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Units Outstanding | 6,542,557 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 2,139 | $ 1,297 |
Accounts receivable, net | 64 | 46 |
Due from Managing Member and affiliates | 0 | 55 |
Investment in securities | 67 | 445 |
Warrants, fair value | 2 | 20 |
Equipment under operating leases, net | 11,260 | 14,812 |
Prepaid expenses and other assets | 12 | 15 |
Total assets | 13,544 | 16,690 |
Accounts payable and accrued liabilities: | ||
Due to Managing Member and affiliates | 51 | 0 |
Other | 368 | 228 |
Non-recourse debt | 2,402 | 3,108 |
Unearned operating lease income | 188 | 106 |
Total liabilities | 3,009 | 3,442 |
Commitments and contingencies | ||
Members' capital: | ||
Managing Member | 0 | 0 |
Other Members | 10,535 | 13,248 |
Total Members' capital | 10,535 | 13,248 |
Total liabilities and Members' capital | $ 13,544 | $ 16,690 |
Statements of Operations
Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Leasing and lending activities: | ||||
Operating leases revenue, net | $ 730 | $ 969 | $ 2,427 | $ 2,926 |
(Loss) gain on sales of operating lease assets | (21) | 65 | 54 | 166 |
Other revenue | 5 | 4 | 62 | 8 |
Total operating revenues | 714 | 1,038 | 2,543 | 3,100 |
Operating expenses: | ||||
Depreciation of operating lease assets | 531 | 770 | 1,870 | 1,803 |
Asset management fees to Managing Member | 42 | 46 | 108 | 115 |
Cost reimbursements to Managing Member and/or affiliates | 111 | 124 | 363 | 403 |
Impairment losses on equipment | 89 | 0 | 788 | 0 |
Amortization of initial direct costs | 0 | 0 | 1 | 1 |
Interest expense | 21 | 29 | 71 | 95 |
Professional fees | 13 | 14 | 139 | 116 |
Outside services | 22 | 27 | 50 | 54 |
Taxes on income and franchise fees | 14 | 17 | 49 | 85 |
Storage fees | 24 | 34 | 78 | 98 |
Railcar maintenance | 30 | 0 | 157 | 0 |
Other expense | 39 | 43 | 98 | 105 |
Total operating expenses | 936 | 1,104 | 3,772 | 2,875 |
Net (loss) income from operations | (222) | (66) | (1,229) | 225 |
Other (loss) income: | ||||
Gain on sale of investment in securities | 0 | 0 | 21 | 0 |
Unrealized (loss) gain on fair value adjustment for securities | (9) | 41 | (12) | 144 |
Unrealized (loss) gain on fair value adjustment for warrants | 0 | (4) | (18) | 130 |
Total other (loss) income | (9) | 37 | (9) | 274 |
Net (loss) income | (231) | (29) | (1,238) | 499 |
Net (loss) income | ||||
Managing Member | 0 | 0 | 101 | 146 |
Other Members | (231) | (29) | (1,339) | 353 |
Net (loss) income | $ (231) | $ (29) | $ (1,238) | $ 499 |
Net (loss) income per Limited Liability Company Unit (Other Members) | $ (0.04) | $ 0 | $ (0.20) | $ 0.05 |
Weighted average number of Units outstanding | 6,542,557 | 6,542,557 | 6,542,557 | 6,542,557 |
Statements of Changes in Member
Statements of Changes in Members' Capital - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Beginning Balance | $ 10,766 | $ 14,658 | $ 13,248 | $ 16,075 |
Distributions to Other Members | (1,374) | (1,799) | ||
Distributions to Managing Member | (101) | (146) | ||
Net (loss) income | (231) | (29) | (1,238) | 499 |
Ending Balance | $ 10,535 | $ 14,629 | $ 10,535 | $ 14,629 |
Other Members [Member] | ||||
Beginning Balance (in units) | 6,542,557 | 6,542,557 | 6,542,557 | 6,542,557 |
Beginning Balance | $ 10,766 | $ 14,658 | $ 13,248 | $ 16,075 |
Distributions to Other Members | 0 | 0 | (1,374) | (1,799) |
Net (loss) income | $ (231) | $ (29) | $ (1,339) | $ 353 |
Ending Balance (in units) | 6,542,557 | 6,542,557 | 6,542,557 | 6,542,557 |
Ending Balance | $ 10,535 | $ 14,629 | $ 10,535 | $ 14,629 |
Managing Member [Member] | ||||
Distributions to Managing Member | (101) | (146) | ||
Net (loss) income | $ 101 | $ 146 |
Statements of Changes in Memb_2
Statements of Changes in Members' Capital (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Other Members [Member] | ||||
Distributions to Other Members, per unit | $ 0 | $ 0 | $ 0.21 | $ 0.27 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating activities: | ||
Net (loss) income | $ (1,238) | $ 499 |
Adjustment to reconcile net (loss) income to cash provided by operating activities: | ||
Gain on sales of operating lease assets | (54) | (166) |
Gain on sale of investment in securities | (21) | 0 |
Depreciation of operating lease assets | 1,870 | 1,803 |
Amortization of initial direct costs | 1 | 1 |
Provision for credit losses | 9 | 0 |
Impairment losses on equipment | 788 | 0 |
Unrealized loss (gain) on fair value adjustment for securities | 12 | (144) |
Unrealized loss (gain) on fair value adjustment for warrants | 18 | (130) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (27) | 2 |
Prepaid expenses and other assets | 3 | 4 |
Due to/from Managing Member and affiliates | (24) | 10 |
Accounts payable, other | 140 | (32) |
Unearned operating lease income | 82 | 118 |
Net cash provided by operating activities | 1,559 | 1,965 |
Investing activities: | ||
Purchase of securities | 0 | (3) |
Proceeds from sales of operating lease assets | 947 | 287 |
Proceeds from sales or dispositions of investment in securities | 527 | 0 |
Net cash provided by investing activities | 1,474 | 284 |
Financing activities: | ||
Repayments under non-recourse debt | (706) | (727) |
Net cash used in financing activities | (2,191) | (4,263) |
Net increase (decrease) in cash and cash equivalents | 842 | (2,014) |
Cash and cash equivalents at beginning of period | 1,297 | 3,027 |
Cash and cash equivalents at end of period | 2,139 | 1,013 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for interest | 71 | 95 |
Cash paid during the period for taxes | 70 | 85 |
Other Members [Member] | ||
Operating activities: | ||
Net (loss) income | (1,339) | 353 |
Financing activities: | ||
Distributions to Members | (1,374) | (3,271) |
Schedule of non-cash financing transactions: | ||
Distributions payable to Members at period-end | 0 | 333 |
Managing Member [Member] | ||
Operating activities: | ||
Net (loss) income | 101 | 146 |
Financing activities: | ||
Distributions to Members | $ (111) | $ (265) |
Organization and Limited Liabil
Organization and Limited Liability Company Matters | 9 Months Ended |
Sep. 30, 2021 | |
Organization and Limited Liability Company Matters [Abstract] | |
Organization and Limited Liability Company Matters | 1. Organization and Limited Liability Company matters: ATEL 15, LLC (the “Company” or the “Fund”) was formed under the laws of the state of California on March 4, 2011 for the purpose of raising capital and originating equipment financing transactions and acquiring equipment to engage in equipment leasing and sales activities. The Managing Member of the Company is ATEL Managing Member, LLC (the “Managing Member” or “Manager”), a Nevada limited liability company. The Managing Member is controlled by ATEL Financial Services (“AFS”), a wholly-owned subsidiary of ATEL Capital Group. The Fund may continue until terminated as provided in the ATEL 15, LLC Amended and Restated Limited Liability Company Operating Agreement dated October 28, 2011 (the ”Operating Agreement”). Contributions in the amount of $500 were received as of May 3, 2011, which represented the initial member’s capital investment. As a limited liability company, the liability of any individual member for the obligations of the Fund is limited to the extent of capital contributions to the Fund by the individual member. The Company conducted a public offering of 15,000,000 Limited Liability Company Units (“Units”), at a price of $10 per Unit. As of December 21, 2011, subscriptions for the minimum number of Units (120,000, representing $1.2 million), excluding subscriptions from Pennsylvania investors, had been received and the Fund requested subscription proceeds to be released from escrow. On that date, the Company commenced initial operations and continued in its development stage activities until transitioning to an operating enterprise during the first quarter of 2012. Pennsylvania subscriptions are subject to a separate escrow and are released to the Fund only when aggregate subscriptions for all investors equal to at least $7.5 million. Total contributions to the Fund exceeded $7.5 million on April 14, 2012, at which time a request was processed to release the Pennsylvania escrowed amounts. The offering was terminated on October 28, 2013. As of September 30, 2021, cumulative gross contributions, less rescissions and repurchases (net of distributions paid and allocated syndication costs, as applicable), totaling $65.9 million (inclusive of the $500 initial Member’s capital investment) have been received. As of the same date, 6,542,557 Units were issued and outstanding The Company’s principal objectives are to invest in a diversified portfolio of investments that will (i) preserve, protect and return the Company’s invested capital; (ii) generate regular cash distributions to unitholders, with any balance remaining after required minimum distributions to be used to purchase additional investments during the Reinvestment Period (ending six Pursuant to the terms of the Operating Agreement, the Managing Member and/or its affiliates receives compensation for services rendered and reimbursements for costs incurred on behalf of the Company (See Note 5). The Company is required to maintain reasonable cash reserves for working capital, the repurchase of Units and contingencies. The repurchase of Units is solely at the discretion of the Managing Member. These unaudited interim financial statements should be read in conjunction with the financial statements and notes thereto contained in the report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of significant accounting policies: Basis of presentation: The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (‘‘GAAP’’) for interim financial information and with the instructions to Form 10-Q as mandated by the Securities and Exchange Commission. The unaudited interim financial statements reflect all adjustments which are, in the opinion of the Managing Member, necessary for a fair statement of financial position and results of operations for the interim periods presented. All such adjustments are of a normal recurring nature. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the full year. Certain prior period amounts may have been reclassified to conform to the current period presentation. These reclassifications had no significant effect on the reported financial position or results of operations. Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data. In preparing the accompanying financial statements, the Company has reviewed, as determined necessary by the Managing Member, events that have occurred after September 30, 2021, up until the issuance of the financial statements. No events were noted which would require disclosure in the footnotes to the financial statements. Cash and cash equivalents: Cash and cash equivalents include cash in banks and cash equivalent investments such as U.S. Treasury instruments with original and/or purchased maturities of ninety days or less. Use of estimates: The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates. Such estimates primarily relate to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes and for determination of the allowances for doubtful accounts. Segment reporting: The Company is organized into one operating segment for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in one reportable operating segment in the United States. The primary geographic region in which the Company seeks leasing and financing opportunities is North America. All of the Company’s current operating revenues for the respective three and nine months ended September 30, 2021 and 2020, and long-lived tangible assets as of September 30, 2021 and December 31, 2020 relate to customers domiciled in the United States. Accounts receivable: Accounts receivable represent the amounts billed under operating lease which is currently due to the Company. Allowances for doubtful accounts are typically established based on historical charge off and collection experience and the collectability of specifically identified lessees and borrowers, and invoiced amounts. Accounts receivable deemed uncollectible are generally charged off against the allowance on a specific identification basis. Recoveries of amounts that were previously written-off are recorded as other income in the period received. Investment in securities: From time to time, the Company may purchase securities of its borrowers in connection with its lending arrangements. Purchased securities The Company’s purchased securities registered for public sale with readily determinable fair values are measured at fair value with any changes in fair value recognized in the Company’s results of operations. The Company’s purchased securities that do not have readily determinable fair values are measured at cost minus impairment and adjusted for changes in observable prices. Factors considered by the Managing Member in determining fair value include, but are not limited to, available financial information, the issuer’s ability to meet its current obligations and indications of the issuer’s subsequent ability to raise capital. The Company had $67 thousand and $445 thousand of purchased securities at September 30, 2021 and December 31, 2020, respectively. Such amounts included investment securities which do not have readily determinable market value totaling $23 thousand both at September 30, 2021 and December 31, 2020. During the respective three months ended September 30, 2021 and 2020, the Company recorded $9 thousand of unrealized losses and Warrants Warrants owned by the Company are not registered for public sale, but are considered derivatives and are reflected at an estimated fair value on the balance sheet, as determined by the Managing Member. As of September 30, 2021 and December 31, 2020, the estimated fair value of the Company’s portfolio of warrants was $2 thousand and $20 thousand, respectively. During the three months ended September 30, 2021, the net unrealized gains and losses on the Company’s warrants was de minimis. During the three months ended September 30, 2020, the Company recorded unrealized losses of Credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk include cash and cash equivalents and accounts receivable. The Company places the majority of its cash deposits in noninterest-bearing accounts with financial institutions that have no less than $10 billion in assets. Such deposits are insured up to $250 thousand. The remainder of the Company’s cash is temporarily invested in U.S. Treasury denominated instruments. The concentration of such deposits and temporary cash investments is not deemed to create a significant risk to the Company. Accounts and notes receivable represent amounts due from lessees or borrowers in various industries, related to equipment on operating and direct financing leases or notes receivable. Equipment on operating leases and related revenue recognition: Equipment subject to operating leases is stated at cost. Depreciation is being recognized on a straight-line method over the terms of the related leases to the equipment’s estimated residual values. Off-lease equipment is generally not subject to depreciation. The Company depreciates all lease assets, in accordance with guidelines consistent with Accounting Standards Codification (“ASC”) 360-10-35-3, over the periods of the lease terms contained in each asset’s respective lease contract to the estimated residual value at the end of the lease contract. All lease assets are purchased only concurrent with the execution of a lease commitment by the lessee. Thus, the original depreciation period corresponds with the term of the original lease. Once the term of an original lease contract is completed, the subject property is typically sold to the existing user, re-leased to the existing user, or, when off-lease, is held for sale. Assets which are re-leased continue to be depreciated using the terms of the new lease agreements and the estimated residual values at the end of the new lease terms, adjusted downward as necessary. Assets classified as held-for-sale are carried at the lower of carrying amount, or the fair value less cost to sell (ASC 360-10-35-43). The Company does not use the equipment held in its portfolio, but holds it solely for lease and ultimate sale. In the course of marketing equipment that has come off-lease, management may determine at some point that re-leasing the assets may provide a superior return for investors and would then execute another lease. Upon entering into a new lease contract, management will estimate the residual value once again and resume depreciation. If, and when, the Company, at any time, determines that depreciation in value may have occurred with respect to an asset held-for-sale, the Company would review the value to determine whether a material reduction in value had occurred and recognize any appropriate impairment. All lease assets, including off-lease assets, are subject to the Company’s quarterly impairment analysis, as described below. Maintenance costs associated with the Fund’s portfolio of leased assets are expensed as incurred. Major additions and betterments are capitalized. Operating lease revenue is recognized on a straight-line basis over the term of the underlying leases. The initial lease terms will vary as to the type of equipment subject to the leases, the needs of the lessees and the terms to be negotiated, but initial leases are generally on terms from 36 to 120 months. The difference between rent received and rental revenue recognized is recorded as unearned operating lease income on the balance sheet. Operating leases are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management considers the equipment underlying the lease contracts for impairment and periodically reviews the credit worthiness of all operating lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related operating leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, revenues are recognized on a cash basis. P o v n o d s e o t u e m m p y i a m Initial direct costs: Incremental costs of a lease that would not have been incurred if the lease had not been obtained are capitalized and amortized over the lease term. All other costs associated with the execution of the Company’s leases are expensed as incurred. Asset valuation: Recorded values of the Company’s leased asset portfolio are reviewed each quarter to confirm the reasonableness of established residual values and to determine whether there is indication that an asset impairment might have taken place. The Company uses a variety of sources and considers many factors in evaluating whether the respective book values of its assets are appropriate. In addition, the company may direct a residual value review at any time if it becomes aware of issues regarding the ability of a lessee to continue to make payments on its lease contract. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than their net book value. The estimated undiscounted future cash flows are the sum of the residual value of the asset at the end of the asset’s lease contract and undiscounted future rents from the existing lease contract. 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. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date. Upward adjustments for impairments recognized in prior periods are not made in any circumstances. Per Unit data: The Company issues only one class of Units, none of which are considered dilutive. Net (loss) income and distributions per Unit is based upon the weighted average number of Other Members Units outstanding during the period. Fair value: Fair value measurements and disclosures are based on a fair value hierarchy as determined by significant inputs used to measure fair value. The three levels of inputs within the fair value hierarchy are defined as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuations in which all significant inputs are observable in the market. Level 3 – Valuation is modeled using significant inputs that are unobservable in the market. These unobservable inputs reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. The Company’s valuation policy is determined by members of the Asset Management, Credit and Accounting departments. Whenever possible, the policy is to obtain quoted market prices in active markets to estimate fair values for recognition and disclosure purposes. Where quoted market prices in active markets are not available, fair values are estimated using discounted cash flow analyses, broker quotes, information from third party remarketing agents, third party appraisals of collateral and/or other valuation techniques. These techniques are significantly affected by certain of the Company’s assumptions, including discount rates and estimates of future cash flows. Potential taxes and other transaction costs are not considered in estimating fair values. As the Company is responsible for determining fair value, an analysis is performed on prices obtained from third parties. Such analysis is performed by asset management and credit department personnel who are familiar with the Company’s investments in equipment, notes receivable and equity securities of venture companies. The analysis may include a periodic review of price fluctuations and validation of numbers obtained from a specific third party by reference to multiple representative sources. Recent accounting pronouncements: In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-03, Codification Improvements to Financial Instruments (“ASU 2020-03”). ASU 2020-03 improves and clarifies various financial instruments topics, including the current expected credit losses (CECL) standard issued in 2016. ASU 2020-03 includes seven different issues that describe the areas of improvement and the related amendments to GAAP that are intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The amendments have different effective dates. Management is currently evaluating the effect of adopting this new accounting guidance but does not expect adoption will have a material impact on the Fund’s financial statements and disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326) (“ASU 2016-13”). The main objective of this Update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments affect entities holding financial assets and equipment under operating leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, equipment under operating leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. Management is currently evaluating the standard and expects the update may potentially result in the increase in the allowance for credit losses given the change to estimated losses over the contractual life adjusted for expected prepayments. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments — Credit Losses (“ASU 2018-19”). The new standard clarifies certain aspects of the new CECL impairment model in ASU 2016-13. The amendment clarifies that receivables arising from operating leases are within the scope of ASC 842, rather than ASC 326. Management is currently evaluating the impact of the standard on the financial statements and related disclosure requirements. On August 15, 2019, the FASB issued a proposed ASU that would grant certain companies additional time to implement the FASB standards on CECL and hedging. The proposed ASU defers the effective date for CECL to fiscal periods beginning after December 15, 2022, including interim periods within those fiscal years; and defers the effective date for hedging to fiscal periods beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The ASU was approved on October 16, 2019. In February 2020, the FASB issued ASU 2020-02 and delayed the effective date of Topic 326 until the fiscal year beginning after December 15, 2022. |
Allowance for Credit Losses
Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2021 | |
Allowance for Credit Losses [Abstract] | |
Allowance for Credit Losses | 3. Allowance for credit losses: The Company’s allowance for credit losses are as follows: (in thousands) Allowance for Doubtful Accounts Operating Leases Balance December 31, 2019 $ — Provision for credit losses 2 Balance December 31, 2020 $ 2 Provision for credit losses 9 Balance September 30, 2021 $ 11 |
Equipment Under Operating Lease
Equipment Under Operating Leases, Net | 9 Months Ended |
Sep. 30, 2021 | |
Investments In Equipment And Leases Net [Abstract] | |
Equipment Under Operating Leases, Net | 4. Equipment under operating leases, net: The Company’s investment under operating leases, net consists of the following (in thousands): Depreciation/ Amortization Balance Reclassifications, Expense or Balance December 31, Additions, Dispositions Amortization September 30, 2020 and Impairment Losses of Leases 2021 Equipment under operating leases, net $ 11,149 $ 609 $ (1,870) $ 9,888 Assets held for sale or lease, net 3,659 (2,291) — 1,368 Initial direct costs, net 4 — — 4 Total $ 14,812 $ (1,682) $ (1,870) $ 11,260 The Company recorded $89 thousand and $788 thousand of impairment losses on equipment during the three and nine months ended September 30, 2021. There were no such impairment losses recorded during the three and nine months ended September 30, 2020. The Company utilizes a straight line depreciation method over the term of the equipment lease for equipment on operating leases currently in its portfolio. Depreciation expense on the Company’s equipment totaled $531 thousand and $770 thousand for the three months ended September 30, 2021 and 2020, respectively. Depreciation expense on the Company’s equipment totaled $1.9 million and $1.8 million for the nine months period ended September 30, 2021 and 2020, respectively. Total depreciation for the three and nine months ended September 30, 2021 include $25 thousand and $360 thousand, respectively, of additional depreciation recorded to reflect year-to-date changes in estimated residual values of certain equipment generating revenue under month-to-month extensions. Such estimated residual values of equipment associated with leases on month-to-month extensions are evaluated at least semi-annually, and depreciation recorded for the change in the estimated reduction in value. Such additional depreciation totaled $276 thousand for both the three- and nine-month periods ended September 30, 2020. All of the Company’s lease asset purchases and capital improvements were made during the years from 2011 through 2015. Operating leases: Property on operating leases consists of the following (in thousands): Balance Reclassifications Balance December 31, or Dispositions September 30, 2020 Additions Impairment Losses 2021 Marine vessel $ 19,410 $ — $ — $ 19,410 Manufacturing 4,358 — (1,604) 2,754 Transportation, rail 5,094 — 621 5,715 Facility – other 5,084 — — 5,084 Construction 1,775 — — 1,775 Other 1,158 — (201) 957 36,879 — (1,184) 35,695 Less accumulated depreciation (25,730) (1,870) 1,793 (25,807) Total $ 11,149 $ (1,870) $ 609 $ 9,888 The average estimated residual value for assets on operating leases was 18% of the assets’ original cost at both September 30, 2021 and December 31, 2020, respectively. As of September 30, 2021, the aggregate amounts of future minimum lease payments receivable are as follows (in thousands): Operating Leases Three months ending December 31, 2021 $ 461 Year ending December 31, 2022 2,267 2023 1,379 2024 457 2025 219 Thereafter 51 $ 4,834 The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of September 30, 2021, the respective useful lives of each category of lease assets in the Company’s portfolio are as follows (in years): Equipment category Useful Life Transportation, rail 35 – 50 Marine vessel 20 – 30 Manufacturing 10 – 15 Construction 7 – 10 Facility - other 7 – 10 Other 7 – 10 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 5. Related party transactions: The terms of the Operating Agreement provide that the Managing Member and/or affiliates are entitled to receive certain fees for equipment management and resale and for management of the Company. The Operating Agreement allows for the reimbursement of costs incurred by the Managing Member and/or affiliates for providing administrative services to the Company. Administrative services provided include Company accounting, investor relations, legal counsel and lease and equipment documentation. The Managing Member is not reimbursed for services whereby it is entitled to receive a separate fee as compensation for such services, such as management of investments. AFS and ATEL Leasing Corporation (“ALC”) are wholly owned subsidiaries of ATEL Capital Group and performs services for the Company on behalf of the Managing Member. Acquisition services, equipment management, lease administration and asset disposition services are performed by ALC; investor relations, communications and general administrative services are performed by AFS. Cost reimbursements to the Managing Member or its affiliates are based on its costs incurred in performing administrative services for the Company. These costs are allocated to each managed entity based on certain criteria such as total assets, number of investors or contributed capital based upon the type of cost incurred. The Managing Member believes that the costs reimbursed are the lower of (i) actual costs incurred on behalf of the Company or (ii) the amount the Company would be required to pay independent parties for comparable administrative services in the same geographic location. The Managing Member and/or affiliates earned fees and billed for reimbursements, pursuant to the Operating Agreement, during the three and nine months ended September 30, 2021 and 2020 as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Administrative costs reimbursed to Managing Member and/or affiliates $ 111 $ 124 $ 363 $ 403 Asset management fees to Managing Member 42 46 108 115 $ 153 $ 170 $ 471 $ 518 |
Non-Recourse Debt
Non-Recourse Debt | 9 Months Ended |
Sep. 30, 2021 | |
Non-Recourse Debt [Abstract] | |
Non-Recourse Debt | 6. Non-recourse debt: At September 30, 2021, non-recourse debt consists of a note payable to a financial institution. The note payments are due in monthly installments. Interest on the note is 3.40% per annum. The note is secured by assignments of lease payments and pledges of assets. At September 30, 2021, gross operating lease rentals totaled approximately $2.5 million over the remaining lease term and the carrying value of the pledged asset is $6.6 million. The note matures in 2024. The non-recourse debt does not contain any material financial covenants. The debt is secured by a specific lien granted by the Company to the non-recourse lender on (and only on) the discounted lease transactions. The lender has recourse only to the following collateral: the leased equipment; the related lease chattel paper; the lease receivables; and proceeds of the foregoing items. The non-recourse obligation is payable solely out of the respective specific security and the Company does not guarantee (nor is the Company otherwise contractually responsible for) the payment of the non-recourse debt as a general obligation or liability of the Company. Although the Company does not have any direct or general liability in connection with the non-recourse debt apart from the security granted, the Company is directly and generally liable and responsible for certain representations, warranties, and covenants made to the lender, such as warranties as to genuineness of the transaction parties’ signatures, as to the genuineness of the respective lease chattel paper or the transaction as a whole, or as to the Company’s good title to or perfected interest in the secured collateral, as well as similar representations, warranties and covenants typically provided by non-recourse borrowers and customary in the equipment finance industry, and are viewed by such industry as being consistent with non-recourse discount financing obligations. Accordingly, as there are no financial covenants or ratios imposed on the Company in connection with the non-recourse debt, the Company has determined that there are no material covenants with respect to the non-recourse debt that warrant footnote disclosure. Future minimum payments of non-recourse debt are as follows (in thousands): Principal Interest Total Three months ending December 31, 2021 $ 240 $ 20 $ 260 Year ending December 31, 2022 978 58 1,036 2023 1,012 25 1,037 2024 172 1 173 Total $ 2,402 $ 104 $ 2,506 The non-recourse debt represents half of a $9.2 million non-recourse promissory note executed on May 20, 2019. The non-recourse promissory note was split evenly between the Fund and its affiliate, ATEL 14, LLC, and was used to pay off the senior long-term debt. The non-recourse promissory note is to be serviced by the cash flows generated under a renewed bareboat charter. |
Commitments
Commitments | 9 Months Ended |
Sep. 30, 2021 | |
Commitments [Abstract] | |
Commitments | 7. Commitments: At September 30, 2021, there were no commitments to purchase lease assets or to fund investments in notes receivable. |
Members' Capital
Members' Capital | 9 Months Ended |
Sep. 30, 2021 | |
Members' Capital [Abstract] | |
Members' Capital | 8. Members’ capital: A total of 6,542,557 Units were issued and outstanding at September 30, 2021 and December 31, 2020, including the 50 Units issued to the initial Member (Managing Member). The Fund was authorized to issue up to 15,000,000 Units in addition to the Units issued to the initial Member. The Company has the right, exercisable at the Managing Member’s discretion, but not the obligation, to repurchase Units of a Unitholder who ceases to be a U.S. Citizen, for a price equal to 100% of the holder’s capital account. The Company is otherwise permitted, but not required, to repurchase Units upon a holder’s request. The repurchase of Fund units is made in accordance with Section 13 of the Amended and Restated Limited Liability Company Operating Agreement. The repurchase would be at the discretion of the Managing Member on terms it determines to be appropriate under given circumstances, in the event that the Managing Member deems such repurchase to be in the best interest of the Company; provided, the Company is never required to repurchase any Units. Upon the repurchase of any Units by the Fund, the tendered Units are cancelled. Units repurchased in prior periods were repurchased at amounts representing the original investment less cumulative distributions made to the Unitholder with respect to the Units. All Units repurchased during a quarter are deemed to be repurchased effective the last day of the preceding quarter, and are not deemed to be outstanding during, or entitled to allocations of net income, net loss or distributions for the quarter in which such repurchase occurs. The Fund’s net income or net losses are to be allocated 100% to the members. From the commencement of the Fund until the initial closing date, net income and net loss were allocated 99% to the Managing Member and 1% to the initial members. Commencing with the initial closing date, net income and net loss are to be allocated 92.5% to the members and 7.5% to the Managing Member. Fund distributions are to be allocated 7.5% to the Managing Member and 92.5% to the members. The Company commenced periodic distributions during the first quarter of 2012. Distributions to the Other Members for the three and nine months ended September 30, 2021 and 2020 were as follows (in thousands except Units and per Unit data): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Distributions declared $ — $ — $ 1,374 $ 1,799 Weighted average number of Units outstanding 6,542,557 6,542,557 6,542,557 6,542,557 Weighted average distributions per Unit $ — $ — $ 0.21 $ 0.27 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 9. Fair value measurements: Under applicable accounting standards, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. At September 30, 2021 and December 31, 2020, the Company’s warrants and investment in securities were measured on a recurring basis. In addition, certain equipment deemed impaired were measured at fair value on a non-recurring basis as of September 30, 2021 and December 31, 2020. The measurement methodology is as follows: Warrants (recurring) Warrants owned by the Company are not registered for public sale, but are considered derivatives and are carried on the balance sheet at an estimated fair value at the end of the period. The valuation of the warrants was determined using a Black-Scholes formulation of value based upon the stock price(s), the exercise price(s), the volatility of comparable venture companies, and a risk free interest rate for the term(s) of the warrant exercise(s). As of September 30, 2021 and December 31, 2020, the calculated fair value of the Fund’s warrants portfolio totaled $2 thousand and $20 thousand, respectively. Such valuations are classified within Level 3 of the valuation hierarchy. The fair value of warrants that were accounted for on a recurring basis for the three and nine months ended September 30, 2021 and 2020, and classified as Level 3 are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Fair value of warrants at beginning of period $ 2 $ 359 $ 20 $ 225 Unrealized (loss) gain on fair market valuation of warrants — (4) (18) 130 Warrants converted to securities — (333) — (333) Fair value of warrants at end of period $ 2 $ 22 $ 2 $ 22 Investment securities (recurring) The Company’s investment securities registered for public sale with readily determinable fair values are measured at fair value with any changes in fair value recognized in the Company’s results of operations. As of September 30, 2021 and December 31, 2020, the fair value of such investment securities totaled $44 thousand and $422 thousand respectively. The fair value of investment securities that were accounted for on a recurring basis for the three and nine months ended September 30, 2021 and 2020, and classified as Level 1 are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Fair value of securities at the beginning of period $ 53 $ 381 $ 422 $ 70 Conversion of previously held private securities — — — 53 Warrants converted to securities — 333 — 333 Security sold — — (366) — Unrealized (loss) gain on fair market valuation of securities (9) 41 (12) 299 Fair value of investment securities at the end of period $ 44 $ 755 $ 44 $ 755 Impaired lease and off-lease equipment (non-recurring) During the year ended December 31, 2020, the Company recorded fair value adjustments totaling $995 thousand to reduce the cost basis of certain manufacturing and agriculture equipment. During the year ended September 30, 2021, the Company recorded additional fair value adjustments totaling $788 thousand to reduce the cost basis of certain manufacturing and agriculture equipment. Level 1 Level 2 Level 3 September 30 Estimated Estimated Estimated 2021 Fair Value Fair Value Fair Value Assets measured at fair value on a non-recurring basis (in thousands): Impaired lease and off-lease equipment $ 936 $ — $ — $ 936 Level 1 Level 2 Level 3 December 31 Estimated Estimated Estimated 2020 Fair Value Fair Value Fair Value Assets measured at fair value on a non-recurring basis (in thousands): Impaired lease and off-lease equipment $ 960 $ — $ — $ 960 Under the Fair Value Measurements Topic of the FASB Accounting Standards Codification, the fair value of impaired lease assets were classified within Level 3 of the valuation hierarchy as the data sources utilized for the valuation of such assets reflect significant inputs that are unobservable in the market. Such valuation utilizes a market approach technique and uses inputs that reflect the sales price of similar assets sold by affiliates and/or information from third party remarketing agents not readily available in the market. The following tables summarize the valuation techniques and significant unobservable inputs used for the Company’s recurring and non-recurring fair value calculation/adjustments categorized as Level 3 in the fair value hierarchy at September 30, 2021 and December 31, 2020: September 30, 2021 Valuation Valuation Unobservable Range of Input Values Name Frequency Technique Inputs (Weighted Average) Warrants Recurring Black-Scholes formulation Stock price $0.05 - $18.72($0.21) Exercise price $0.10 - $160.05($0.32) Time to maturity (in years) 0.23 - 2.60(0.43) Risk-free interest rate 0.04% - 0.47%(0.08%) Annualized volatility 34.92% - 166.94%(36.50%) Lease and Off-lease equipment Non-recurring Market Approach Third Party Agents' Pricing $0 - $150,000 Quotes - per equipment (total of $936,000) Equipment Condition Poor to Average December 31, 2020 Valuation Valuation Unobservable Range of Input Values Name Frequency Technique Inputs (Weighted Average) Warrants Recurring Black-Scholes formulation Stock price $0.05 - $28.66($0.24) Exercise price $0.10 - $160.05($0.32) Time to maturity (in years) 0.98 - 3.35(1.18) Risk-free interest rate 0.10% - 0.22%(0.11%) Annualized volatility 33.86% - 158.37%(35.28%) Lease and Off-lease equipment Non-recurring Market Approach Third Party Agents' Pricing $0 - $150,000 Quotes - per equipment (total of $960,000) Equipment Condition Poor to Average The following disclosure of the estimated fair value of financial instruments is made in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification. Fair value estimates, methods and assumptions, set forth below for the Company’s financial instruments, are made solely to comply with the requirements of the Financial Instruments Topic and should be read in conjunction with the Company’s financial statements and related notes. The Company determines the estimated fair value amounts by using market information and valuation methodologies that it considers appropriate and consistent with the fair value accounting guidance. Considerable judgment is required to interpret market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. Cash and cash equivalents The recorded amounts of the Company’s cash and cash equivalents approximate fair value because of the liquidity and short-term maturity of these instruments. Investment in securities The Company's purchased securities registered for public sale with readily determinable fair value are carried at fair value. These investment securities are valued based on their quoted market price. Non-recourse debt The fair value of the Company’s non-recourse debt is estimated using discounted cash flow analyses, based upon current market borrowing rates for similar types of borrowing arrangements. Commitments and Contingencies Management has determined that no recognition for the fair value of the Company’s loan commitments is necessary because their terms are made on a market rate basis and require borrowers to be in compliance with the Company’s credit requirements at the time of funding. The fair value of contingent liabilities (or guarantees) is not considered material because management believes there has been no event that has occurred wherein a guarantee liability has been incurred or will likely be incurred. The following tables present estimated fair values of the Company ’ Fair Value Measurements at September 30, 2021 Carrying Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 2,139 $ 2,139 $ — $ — $ 2,139 Investment in securities 44 44 — — 44 Warrants, fair value 2 — — 2 2 Financial liabilities: Non-recourse debt 2,402 — — 2,456 2,456 Fair Value Measurements at December 31, 2020 Carrying Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 1,297 $ 1,297 $ — $ — $ 1,297 Investment in securities 422 422 — — 422 Warrants, fair value 20 — — 20 20 Financial liabilities: Non-recourse debt 3,108 — — 3,212 3,212 |
Global Health Emergency
Global Health Emergency | 9 Months Ended |
Sep. 30, 2021 | |
Global Health Emergency [Abstract] | |
Global Health Emergency | 10. Global health emergency: On January 30, 2020, the World Health Organization declared a global health emergency. The Fund’s operations are located in California, which has restricted gatherings of people due to the coronavirus outbreak. At present, the Fund’s operations have not been adversely affected and continue to function effectively. Due to the dynamic nature of these unprecedented circumstances and possible business disruption, the Fund will continue to monitor the situation closely, but given the uncertainty about the situation, an estimate of the future impact, if any, cannot be made at this time. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation: The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (‘‘GAAP’’) for interim financial information and with the instructions to Form 10-Q as mandated by the Securities and Exchange Commission. The unaudited interim financial statements reflect all adjustments which are, in the opinion of the Managing Member, necessary for a fair statement of financial position and results of operations for the interim periods presented. All such adjustments are of a normal recurring nature. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the full year. Certain prior period amounts may have been reclassified to conform to the current period presentation. These reclassifications had no significant effect on the reported financial position or results of operations. Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data. In preparing the accompanying financial statements, the Company has reviewed, as determined necessary by the Managing Member, events that have occurred after September 30, 2021, up until the issuance of the financial statements. No events were noted which would require disclosure in the footnotes to the financial statements. |
Cash and Cash Equivalents | Cash and cash equivalents: Cash and cash equivalents include cash in banks and cash equivalent investments such as U.S. Treasury instruments with original and/or purchased maturities of ninety days or less. |
Use of Estimates | Use of estimates: The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates. Such estimates primarily relate to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes and for determination of the allowances for doubtful accounts. |
Segment Reporting | Segment reporting: The Company is organized into one operating segment for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in one reportable operating segment in the United States. The primary geographic region in which the Company seeks leasing and financing opportunities is North America. All of the Company’s current operating revenues for the respective three and nine months ended September 30, 2021 and 2020, and long-lived tangible assets as of September 30, 2021 and December 31, 2020 relate to customers domiciled in the United States. |
Accounts Receivable | Accounts receivable: Accounts receivable represent the amounts billed under operating lease which is currently due to the Company. Allowances for doubtful accounts are typically established based on historical charge off and collection experience and the collectability of specifically identified lessees and borrowers, and invoiced amounts. Accounts receivable deemed uncollectible are generally charged off against the allowance on a specific identification basis. Recoveries of amounts that were previously written-off are recorded as other income in the period received. |
Investment in Securities | Investment in securities: From time to time, the Company may purchase securities of its borrowers in connection with its lending arrangements. Purchased securities The Company’s purchased securities registered for public sale with readily determinable fair values are measured at fair value with any changes in fair value recognized in the Company’s results of operations. The Company’s purchased securities that do not have readily determinable fair values are measured at cost minus impairment and adjusted for changes in observable prices. Factors considered by the Managing Member in determining fair value include, but are not limited to, available financial information, the issuer’s ability to meet its current obligations and indications of the issuer’s subsequent ability to raise capital. The Company had $67 thousand and $445 thousand of purchased securities at September 30, 2021 and December 31, 2020, respectively. Such amounts included investment securities which do not have readily determinable market value totaling $23 thousand both at September 30, 2021 and December 31, 2020. During the respective three months ended September 30, 2021 and 2020, the Company recorded $9 thousand of unrealized losses and Warrants Warrants owned by the Company are not registered for public sale, but are considered derivatives and are reflected at an estimated fair value on the balance sheet, as determined by the Managing Member. As of September 30, 2021 and December 31, 2020, the estimated fair value of the Company’s portfolio of warrants was $2 thousand and $20 thousand, respectively. During the three months ended September 30, 2021, the net unrealized gains and losses on the Company’s warrants was de minimis. During the three months ended September 30, 2020, the Company recorded unrealized losses of |
Credit Risk | Credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk include cash and cash equivalents and accounts receivable. The Company places the majority of its cash deposits in noninterest-bearing accounts with financial institutions that have no less than $10 billion in assets. Such deposits are insured up to $250 thousand. The remainder of the Company’s cash is temporarily invested in U.S. Treasury denominated instruments. The concentration of such deposits and temporary cash investments is not deemed to create a significant risk to the Company. Accounts and notes receivable represent amounts due from lessees or borrowers in various industries, related to equipment on operating and direct financing leases or notes receivable. |
Equipment on Operating Leases and Related Revenue Recognition | Equipment on operating leases and related revenue recognition: Equipment subject to operating leases is stated at cost. Depreciation is being recognized on a straight-line method over the terms of the related leases to the equipment’s estimated residual values. Off-lease equipment is generally not subject to depreciation. The Company depreciates all lease assets, in accordance with guidelines consistent with Accounting Standards Codification (“ASC”) 360-10-35-3, over the periods of the lease terms contained in each asset’s respective lease contract to the estimated residual value at the end of the lease contract. All lease assets are purchased only concurrent with the execution of a lease commitment by the lessee. Thus, the original depreciation period corresponds with the term of the original lease. Once the term of an original lease contract is completed, the subject property is typically sold to the existing user, re-leased to the existing user, or, when off-lease, is held for sale. Assets which are re-leased continue to be depreciated using the terms of the new lease agreements and the estimated residual values at the end of the new lease terms, adjusted downward as necessary. Assets classified as held-for-sale are carried at the lower of carrying amount, or the fair value less cost to sell (ASC 360-10-35-43). The Company does not use the equipment held in its portfolio, but holds it solely for lease and ultimate sale. In the course of marketing equipment that has come off-lease, management may determine at some point that re-leasing the assets may provide a superior return for investors and would then execute another lease. Upon entering into a new lease contract, management will estimate the residual value once again and resume depreciation. If, and when, the Company, at any time, determines that depreciation in value may have occurred with respect to an asset held-for-sale, the Company would review the value to determine whether a material reduction in value had occurred and recognize any appropriate impairment. All lease assets, including off-lease assets, are subject to the Company’s quarterly impairment analysis, as described below. Maintenance costs associated with the Fund’s portfolio of leased assets are expensed as incurred. Major additions and betterments are capitalized. Operating lease revenue is recognized on a straight-line basis over the term of the underlying leases. The initial lease terms will vary as to the type of equipment subject to the leases, the needs of the lessees and the terms to be negotiated, but initial leases are generally on terms from 36 to 120 months. The difference between rent received and rental revenue recognized is recorded as unearned operating lease income on the balance sheet. Operating leases are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management considers the equipment underlying the lease contracts for impairment and periodically reviews the credit worthiness of all operating lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related operating leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, revenues are recognized on a cash basis. P o v n o d s e o t u e m m p y i a m |
Initial Direct Costs | Initial direct costs: Incremental costs of a lease that would not have been incurred if the lease had not been obtained are capitalized and amortized over the lease term. All other costs associated with the execution of the Company’s leases are expensed as incurred. |
Asset Valuation | Asset valuation: Recorded values of the Company’s leased asset portfolio are reviewed each quarter to confirm the reasonableness of established residual values and to determine whether there is indication that an asset impairment might have taken place. The Company uses a variety of sources and considers many factors in evaluating whether the respective book values of its assets are appropriate. In addition, the company may direct a residual value review at any time if it becomes aware of issues regarding the ability of a lessee to continue to make payments on its lease contract. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than their net book value. The estimated undiscounted future cash flows are the sum of the residual value of the asset at the end of the asset’s lease contract and undiscounted future rents from the existing lease contract. 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. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date. Upward adjustments for impairments recognized in prior periods are not made in any circumstances. |
Per Unit Data | Per Unit data: The Company issues only one class of Units, none of which are considered dilutive. Net (loss) income and distributions per Unit is based upon the weighted average number of Other Members Units outstanding during the period. |
Fair Value | Fair value: Fair value measurements and disclosures are based on a fair value hierarchy as determined by significant inputs used to measure fair value. The three levels of inputs within the fair value hierarchy are defined as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuations in which all significant inputs are observable in the market. Level 3 – Valuation is modeled using significant inputs that are unobservable in the market. These unobservable inputs reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. The Company’s valuation policy is determined by members of the Asset Management, Credit and Accounting departments. Whenever possible, the policy is to obtain quoted market prices in active markets to estimate fair values for recognition and disclosure purposes. Where quoted market prices in active markets are not available, fair values are estimated using discounted cash flow analyses, broker quotes, information from third party remarketing agents, third party appraisals of collateral and/or other valuation techniques. These techniques are significantly affected by certain of the Company’s assumptions, including discount rates and estimates of future cash flows. Potential taxes and other transaction costs are not considered in estimating fair values. As the Company is responsible for determining fair value, an analysis is performed on prices obtained from third parties. Such analysis is performed by asset management and credit department personnel who are familiar with the Company’s investments in equipment, notes receivable and equity securities of venture companies. The analysis may include a periodic review of price fluctuations and validation of numbers obtained from a specific third party by reference to multiple representative sources. |
Recent Accounting Pronouncements | Recent accounting pronouncements: In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-03, Codification Improvements to Financial Instruments (“ASU 2020-03”). ASU 2020-03 improves and clarifies various financial instruments topics, including the current expected credit losses (CECL) standard issued in 2016. ASU 2020-03 includes seven different issues that describe the areas of improvement and the related amendments to GAAP that are intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The amendments have different effective dates. Management is currently evaluating the effect of adopting this new accounting guidance but does not expect adoption will have a material impact on the Fund’s financial statements and disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326) (“ASU 2016-13”). The main objective of this Update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments affect entities holding financial assets and equipment under operating leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, equipment under operating leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. Management is currently evaluating the standard and expects the update may potentially result in the increase in the allowance for credit losses given the change to estimated losses over the contractual life adjusted for expected prepayments. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments — Credit Losses (“ASU 2018-19”). The new standard clarifies certain aspects of the new CECL impairment model in ASU 2016-13. The amendment clarifies that receivables arising from operating leases are within the scope of ASC 842, rather than ASC 326. Management is currently evaluating the impact of the standard on the financial statements and related disclosure requirements. On August 15, 2019, the FASB issued a proposed ASU that would grant certain companies additional time to implement the FASB standards on CECL and hedging. The proposed ASU defers the effective date for CECL to fiscal periods beginning after December 15, 2022, including interim periods within those fiscal years; and defers the effective date for hedging to fiscal periods beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The ASU was approved on October 16, 2019. In February 2020, the FASB issued ASU 2020-02 and delayed the effective date of Topic 326 until the fiscal year beginning after December 15, 2022. |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Allowance for Credit Losses [Abstract] | |
Activity in Allowance for Credit Losses | The Company’s allowance for credit losses are as follows: (in thousands) Allowance for Doubtful Accounts Operating Leases Balance December 31, 2019 $ — Provision for credit losses 2 Balance December 31, 2020 $ 2 Provision for credit losses 9 Balance September 30, 2021 $ 11 |
Equipment Under Operating Lea_2
Equipment Under Operating Leases, Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments In Equipment And Leases Net [Abstract] | |
Investment in Leases | The Company’s investment under operating leases, net consists of the following (in thousands): Depreciation/ Amortization Balance Reclassifications, Expense or Balance December 31, Additions, Dispositions Amortization September 30, 2020 and Impairment Losses of Leases 2021 Equipment under operating leases, net $ 11,149 $ 609 $ (1,870) $ 9,888 Assets held for sale or lease, net 3,659 (2,291) — 1,368 Initial direct costs, net 4 — — 4 Total $ 14,812 $ (1,682) $ (1,870) $ 11,260 |
Property on Operating Leases | Property on operating leases consists of the following (in thousands): Balance Reclassifications Balance December 31, or Dispositions September 30, 2020 Additions Impairment Losses 2021 Marine vessel $ 19,410 $ — $ — $ 19,410 Manufacturing 4,358 — (1,604) 2,754 Transportation, rail 5,094 — 621 5,715 Facility – other 5,084 — — 5,084 Construction 1,775 — — 1,775 Other 1,158 — (201) 957 36,879 — (1,184) 35,695 Less accumulated depreciation (25,730) (1,870) 1,793 (25,807) Total $ 11,149 $ (1,870) $ 609 $ 9,888 |
Future Minimum Lease Payments Receivable | As of September 30, 2021, the aggregate amounts of future minimum lease payments receivable are as follows (in thousands): Operating Leases Three months ending December 31, 2021 $ 461 Year ending December 31, 2022 2,267 2023 1,379 2024 457 2025 219 Thereafter 51 $ 4,834 |
Schedule of Useful Lives of Assets | The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of September 30, 2021, the respective useful lives of each category of lease assets in the Company’s portfolio are as follows (in years): Equipment category Useful Life Transportation, rail 35 – 50 Marine vessel 20 – 30 Manufacturing 10 – 15 Construction 7 – 10 Facility - other 7 – 10 Other 7 – 10 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Managing Member and/or Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement | The Managing Member and/or affiliates earned fees and billed for reimbursements, pursuant to the Operating Agreement, during the three and nine months ended September 30, 2021 and 2020 as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Administrative costs reimbursed to Managing Member and/or affiliates $ 111 $ 124 $ 363 $ 403 Asset management fees to Managing Member 42 46 108 115 $ 153 $ 170 $ 471 $ 518 |
Non-Recourse Debt (Tables)
Non-Recourse Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Non-Recourse Debt [Abstract] | |
Future Minimum Payments of Non-Recourse Debt | Future minimum payments of non-recourse debt are as follows (in thousands): Principal Interest Total Three months ending December 31, 2021 $ 240 $ 20 $ 260 Year ending December 31, 2022 978 58 1,036 2023 1,012 25 1,037 2024 172 1 173 Total $ 2,402 $ 104 $ 2,506 |
Members' Capital (Tables)
Members' Capital (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Members' Capital [Abstract] | |
Distributions to Other Members | Distributions to the Other Members for the three and nine months ended September 30, 2021 and 2020 were as follows (in thousands except Units and per Unit data): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Distributions declared $ — $ — $ 1,374 $ 1,799 Weighted average number of Units outstanding 6,542,557 6,542,557 6,542,557 6,542,557 Weighted average distributions per Unit $ — $ — $ 0.21 $ 0.27 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Measurements [Abstract] | |
Fair Value, Warrants Measured on Recurring Basis | The fair value of warrants that were accounted for on a recurring basis for the three and nine months ended September 30, 2021 and 2020, and classified as Level 3 are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Fair value of warrants at beginning of period $ 2 $ 359 $ 20 $ 225 Unrealized (loss) gain on fair market valuation of warrants — (4) (18) 130 Warrants converted to securities — (333) — (333) Fair value of warrants at end of period $ 2 $ 22 $ 2 $ 22 |
Fair Value, Investment Securities Measured on Recurring Basis | The fair value of investment securities that were accounted for on a recurring basis for the three and nine months ended September 30, 2021 and 2020, and classified as Level 1 are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Fair value of securities at the beginning of period $ 53 $ 381 $ 422 $ 70 Conversion of previously held private securities — — — 53 Warrants converted to securities — 333 — 333 Security sold — — (366) — Unrealized (loss) gain on fair market valuation of securities (9) 41 (12) 299 Fair value of investment securities at the end of period $ 44 $ 755 $ 44 $ 755 |
Fair Value Measurement of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis | During the year ended December 31, 2020, the Company recorded fair value adjustments totaling $995 thousand to reduce the cost basis of certain manufacturing and agriculture equipment. During the year ended September 30, 2021, the Company recorded additional fair value adjustments totaling $788 thousand to reduce the cost basis of certain manufacturing and agriculture equipment. Level 1 Level 2 Level 3 September 30 Estimated Estimated Estimated 2021 Fair Value Fair Value Fair Value Assets measured at fair value on a non-recurring basis (in thousands): Impaired lease and off-lease equipment $ 936 $ — $ — $ 936 Level 1 Level 2 Level 3 December 31 Estimated Estimated Estimated 2020 Fair Value Fair Value Fair Value Assets measured at fair value on a non-recurring basis (in thousands): Impaired lease and off-lease equipment $ 960 $ — $ — $ 960 |
Summary of Valuation Techniques and Significant Unobservable Inputs Used | The following tables summarize the valuation techniques and significant unobservable inputs used for the Company’s recurring and non-recurring fair value calculation/adjustments categorized as Level 3 in the fair value hierarchy at September 30, 2021 and December 31, 2020: September 30, 2021 Valuation Valuation Unobservable Range of Input Values Name Frequency Technique Inputs (Weighted Average) Warrants Recurring Black-Scholes formulation Stock price $0.05 - $18.72($0.21) Exercise price $0.10 - $160.05($0.32) Time to maturity (in years) 0.23 - 2.60(0.43) Risk-free interest rate 0.04% - 0.47%(0.08%) Annualized volatility 34.92% - 166.94%(36.50%) Lease and Off-lease equipment Non-recurring Market Approach Third Party Agents' Pricing $0 - $150,000 Quotes - per equipment (total of $936,000) Equipment Condition Poor to Average December 31, 2020 Valuation Valuation Unobservable Range of Input Values Name Frequency Technique Inputs (Weighted Average) Warrants Recurring Black-Scholes formulation Stock price $0.05 - $28.66($0.24) Exercise price $0.10 - $160.05($0.32) Time to maturity (in years) 0.98 - 3.35(1.18) Risk-free interest rate 0.10% - 0.22%(0.11%) Annualized volatility 33.86% - 158.37%(35.28%) Lease and Off-lease equipment Non-recurring Market Approach Third Party Agents' Pricing $0 - $150,000 Quotes - per equipment (total of $960,000) Equipment Condition Poor to Average |
Estimated Fair Values of Financial Instruments | The following tables present estimated fair values of the Company ’ Fair Value Measurements at September 30, 2021 Carrying Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 2,139 $ 2,139 $ — $ — $ 2,139 Investment in securities 44 44 — — 44 Warrants, fair value 2 — — 2 2 Financial liabilities: Non-recourse debt 2,402 — — 2,456 2,456 Fair Value Measurements at December 31, 2020 Carrying Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 1,297 $ 1,297 $ — $ — $ 1,297 Investment in securities 422 422 — — 422 Warrants, fair value 20 — — 20 20 Financial liabilities: Non-recourse debt 3,108 — — 3,212 3,212 |
Organization and Limited Liab_2
Organization and Limited Liability Company Matters (Narrative) (Details) - USD ($) | Dec. 21, 2011 | Oct. 28, 2011 | Sep. 30, 2021 | Oct. 28, 2019 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Apr. 14, 2012 | May 03, 2011 |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||||||||||
Business formation date | Mar. 4, 2011 | |||||||||||
Business formation State | California | |||||||||||
Business activities, description | equipment financing transactions and acquiring equipment to engage in equipment leasing and sales activities | |||||||||||
Contributions of capital | $ 7,500,000 | |||||||||||
Public offering of Limited Liability Company Units | 15,000,000 | |||||||||||
Public offering of Limited Liability Company Units, price per unit | $ 10 | |||||||||||
Sale of Limited Liability Company Units, number of Units | 120,000 | |||||||||||
Proceeds from sale of Limited Liability Company Units | $ 1,200,000 | $ 65,900,000 | ||||||||||
Amount of aggregate subscriptions for Pennsylvania subscriptions to be released to the Fund | $ 7,500,000 | |||||||||||
Reinvestment period | 6 years | |||||||||||
Other Members [Member] | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||||||||||
Members capital account, Units issued | 6,542,557 | 6,542,557 | 6,542,557 | |||||||||
Members capital account, Units outstanding | 6,542,557 | 6,542,557 | 6,542,557 | 6,542,557 | 6,542,557 | 6,542,557 | 6,542,557 | |||||
Initial Member [Member] | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||||||||||
Contributions of capital | $ 500 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Number of operating segments | segment | 1 | ||||
Number of reportable segments | segment | 1 | ||||
Investment in securities | $ 67 | $ 67 | $ 445 | ||
Unrealized (loss) gain on fair value adjustment for securities | (9) | $ 41 | (12) | $ 144 | |
Proceeds from sales or dispositions of investment in securities | 0 | 0 | 527 | 0 | |
Impairment losses on investment in securities | 0 | 0 | 0 | 0 | |
Warrants, fair value | 2 | 2 | $ 20 | ||
Unrealized (loss) gain on fair value adjustment for warrants | 0 | (4) | (18) | 130 | |
Gain (loss) on exercise of warrants | $ 0 | ||||
Equipment on operating leases, depreciation method | straight-line method | ||||
Warrants converted to securities | 333 | ||||
Securities With Readily Determinable Fair Values [Member] | |||||
Unrealized (loss) gain on fair value adjustment for securities | (9) | $ 41 | $ (12) | 144 | |
Securities Without Readily Determinable Fair Values [Member] | |||||
Investment in securities | 23 | 23 | |||
Investment securities without readily determinable fair values, impairment loss, cumulative amount | 17 | 17 | |||
Unrealized (loss) gain on fair value adjustment for securities | $ 0 | $ 0 | |||
Minimum [Member] | |||||
Required assets value of financial institutions for cash deposits | $ 10,000,000 | ||||
Operating leases, initial terms | 36 months | 36 months | |||
Operating leases, period for non accrual status | 90 days | ||||
Maximum [Member] | |||||
U.S. Treasury instruments maturity period | 90 days | ||||
Cash deposits, insured amount | $ 250 | $ 250 | |||
Operating leases, initial terms | 120 months | 120 months | |||
Operating leases, period of review for impairment | 90 days |
Allowance for Credit Losses (Ac
Allowance for Credit Losses (Activity in Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Provision for credit losses | $ 9 | $ 0 | |
Allowance For Doubtful Accounts [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Beginning Balance | 2 | $ 0 | $ 0 |
Provision for credit losses | 9 | 2 | |
Ending Balance | $ 11 | $ 2 |
Equipment Under Operating Lea_3
Equipment Under Operating Leases, Net (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Investments In Equipment And Leases Net [Abstract] | |||||
Impairment losses on equipment | $ 89 | $ 0 | $ 788 | $ 0 | $ 995 |
Depreciation of operating lease assets | 531 | 770 | 1,870 | 1,803 | |
Additional depreciation recorded | $ 25 | $ 276 | $ 360 | $ 276 | |
Average estimated residual value of assets on operating leases | 18.00% | 18.00% | |||
Equipment on operating leases, depreciation method | straight-line method |
Equipment Under Operating Lea_4
Equipment Under Operating Leases, Net (Investment in Leases) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Lessor, Lease, Description [Line Items] | |
Balance December 31, 2020 | $ 14,812 |
Reclassifications & Additions/ Dispositions | (1,682) |
Depreciation/ Amortization Expense or Amortization of Leases | (1,870) |
Balance September 30, 2021 | 11,260 |
Operating Leases [Member] | |
Lessor, Lease, Description [Line Items] | |
Balance December 31, 2020 | 11,149 |
Reclassifications & Additions/ Dispositions | 609 |
Depreciation/ Amortization Expense or Amortization of Leases | (1,870) |
Balance September 30, 2021 | 9,888 |
Assets Held for Sale [Member] | |
Lessor, Lease, Description [Line Items] | |
Balance December 31, 2020 | 3,659 |
Reclassifications & Additions/ Dispositions | (2,291) |
Depreciation/ Amortization Expense or Amortization of Leases | 0 |
Balance September 30, 2021 | 1,368 |
Initial Direct Cost [Member] | |
Lessor, Lease, Description [Line Items] | |
Balance December 31, 2020 | 4 |
Reclassifications & Additions/ Dispositions | 0 |
Depreciation/ Amortization Expense or Amortization of Leases | 0 |
Balance September 30, 2021 | $ 4 |
Equipment Under Operating Lea_5
Equipment Under Operating Leases, Net (Property on Operating Leases) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Lessor, Lease, Description [Line Items] | ||
Property on operating leases, gross | $ 35,695 | $ 36,879 |
Less accumulated depreciation | (25,807) | (25,730) |
Property on operating leases, net | 9,888 | 11,149 |
Additions, gross | 0 | |
Additions, less accumulated depreciation | (1,870) | |
Additions, net | (1,870) | |
Reclassifications or dispositions, gross | (1,184) | |
Reclassifications or dispositions, less accumulated depreciation | 1,793 | |
Reclassifications or dispositions, net | 609 | |
Marine Vessel [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Property on operating leases, gross | 19,410 | 19,410 |
Additions, gross | 0 | |
Reclassifications or dispositions, gross | 0 | |
Manufacturing [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Property on operating leases, gross | 2,754 | 4,358 |
Additions, gross | 0 | |
Reclassifications or dispositions, gross | (1,604) | |
Transportation, Rail [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Property on operating leases, gross | 5,715 | 5,094 |
Additions, gross | 0 | |
Reclassifications or dispositions, gross | 621 | |
Facility, Other [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Property on operating leases, gross | 5,084 | 5,084 |
Additions, gross | 0 | |
Reclassifications or dispositions, gross | 0 | |
Construction [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Property on operating leases, gross | 1,775 | 1,775 |
Additions, gross | 0 | |
Reclassifications or dispositions, gross | 0 | |
Other [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Property on operating leases, gross | 957 | $ 1,158 |
Additions, gross | 0 | |
Reclassifications or dispositions, gross | $ (201) |
Equipment Under Operating Lea_6
Equipment Under Operating Leases, Net (Future Minimum Lease Payments Receivable) (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Operating Leases | |
Three months ending December 31, 2021 | $ 461 |
Year ending December 31, 2022 | 2,267 |
2023 | 1,379 |
2024 | 457 |
2025 | 219 |
Thereafter | 51 |
Operating leases, total | $ 4,834 |
Equipment Under Operating Lea_7
Equipment Under Operating Leases, Net (Schedule of Useful Lives of Lease Assets) (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Transportation, Rail [Member] | Minimum [Member] | |
Lessor, Lease, Description [Line Items] | |
Useful lives of lease assets | 35 years |
Transportation, Rail [Member] | Maximum [Member] | |
Lessor, Lease, Description [Line Items] | |
Useful lives of lease assets | 50 years |
Marine Vessel [Member] | Minimum [Member] | |
Lessor, Lease, Description [Line Items] | |
Useful lives of lease assets | 20 years |
Marine Vessel [Member] | Maximum [Member] | |
Lessor, Lease, Description [Line Items] | |
Useful lives of lease assets | 30 years |
Manufacturing [Member] | Minimum [Member] | |
Lessor, Lease, Description [Line Items] | |
Useful lives of lease assets | 10 years |
Manufacturing [Member] | Maximum [Member] | |
Lessor, Lease, Description [Line Items] | |
Useful lives of lease assets | 15 years |
Construction [Member] | Minimum [Member] | |
Lessor, Lease, Description [Line Items] | |
Useful lives of lease assets | 7 years |
Construction [Member] | Maximum [Member] | |
Lessor, Lease, Description [Line Items] | |
Useful lives of lease assets | 10 years |
Facility, Other [Member] | Minimum [Member] | |
Lessor, Lease, Description [Line Items] | |
Useful lives of lease assets | 7 years |
Facility, Other [Member] | Maximum [Member] | |
Lessor, Lease, Description [Line Items] | |
Useful lives of lease assets | 10 years |
Other [Member] | Minimum [Member] | |
Lessor, Lease, Description [Line Items] | |
Useful lives of lease assets | 7 years |
Other [Member] | Maximum [Member] | |
Lessor, Lease, Description [Line Items] | |
Useful lives of lease assets | 10 years |
Related Party Transactions (Man
Related Party Transactions (Managing Member and/or Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Related Party Transactions [Abstract] | ||||
Administrative costs reimbursed to Managing Member and/or affiliates | $ 111 | $ 124 | $ 363 | $ 403 |
Asset management fees to Managing Member | 42 | 46 | 108 | 115 |
Related party transaction, total | $ 153 | $ 170 | $ 471 | $ 518 |
Non-Recourse Debt (Narrative) (
Non-Recourse Debt (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | May 20, 2019 | |
ATEL 14, LLC [Member] | ||
Debt Instrument [Line Items] | ||
Non-recourse promissory note | $ 9.2 | |
Non-Recourse Debt [Member] | ||
Debt Instrument [Line Items] | ||
Gross operating lease rentals and future payments on direct financing leases | $ 2.5 | |
Carrying value of pledged assets | $ 6.6 | |
Note maturity date, description | The note matures in 2024. | |
Minimum [Member] | Non-Recourse Debt [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest rate on note | 3.40% |
Non-Recourse Debt (Future Minim
Non-Recourse Debt (Future Minimum Payments of Non-Recourse Debt) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Principal | ||
Three months ending December 31, 2021 | $ 240 | |
Year ending December 31, 2022 | 978 | |
2023 | 1,012 | |
2024 | 172 | |
Long-term debt, total | 2,402 | $ 3,108 |
Interest | ||
Three months ending December 31, 2021 | 20 | |
Year ending December 31, 2022 | 58 | |
2023 | 25 | |
2024 | 1 | |
Long-term debt interest, total | 104 | |
Total | ||
Three months ending December 31, 2021 | 260 | |
Year ending December 31, 2022 | 1,036 | |
2023 | 1,037 | |
2024 | 173 | |
Long-term debt principal and interest, total | $ 2,506 |
Commitments (Narrative) (Detail
Commitments (Narrative) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Commitments [Abstract] | |
Commitments to fund investments in notes receivable and purchase lease assets | $ 0 |
Members' Capital (Narrative) (D
Members' Capital (Narrative) (Details) - shares | 9 Months Ended | |||||
Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Other Members Capital Account [Line Items] | ||||||
Potential repurchase price of Units as percentage of holder's capital account | 100.00% | |||||
Allocation of net income and net loss | 100.00% | |||||
Other Members [Member] | ||||||
Other Members Capital Account [Line Items] | ||||||
Members capital account, Units issued | 6,542,557 | 6,542,557 | ||||
Members capital account, Units outstanding | 6,542,557 | 6,542,557 | 6,542,557 | 6,542,557 | 6,542,557 | 6,542,557 |
Allocation of net income and net losses from commencement until initial closing date | 92.50% | |||||
Percentage of fund distributions | 92.50% | |||||
Managing Member [Member] | ||||||
Other Members Capital Account [Line Items] | ||||||
Members capital account, Units issued | 50 | 50 | ||||
Allocation of net income and net loss | 99.00% | |||||
Allocation of net income or net losses commencing with initial closing date | 7.50% | |||||
Percentage of fund distributions | 7.50% | |||||
Initial Member [Member] | ||||||
Other Members Capital Account [Line Items] | ||||||
Allocation of net income and net loss | 1.00% | |||||
Maximum [Member] | Managing Member [Member] | ||||||
Other Members Capital Account [Line Items] | ||||||
Members capital account, units authorized | 15,000,000 | 15,000,000 |
Members' Capital (Distributions
Members' Capital (Distributions to Other Members) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Distributions declared | $ 1,374 | $ 1,799 | ||
Weighted average number of Units outstanding | 6,542,557 | 6,542,557 | 6,542,557 | 6,542,557 |
Other Members [Member] | ||||
Distributions declared | $ 0 | $ 0 | $ 1,374 | $ 1,799 |
Weighted average number of Units outstanding | 6,542,557 | 6,542,557 | 6,542,557 | 6,542,557 |
Weighted average distributions per Unit | $ 0 | $ 0 | $ 0.21 | $ 0.27 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Fair Value Measurements [Abstract] | |||||
Warrants, fair value | $ 2 | $ 2 | $ 20 | ||
Investment in securities, fair value | 44 | 44 | 422 | ||
Impairment losses on equipment | $ 89 | $ 0 | $ 788 | $ 0 | $ 995 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value, Warrants Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fair value of warrants at beginning of period | $ 20 | |||
Unrealized (loss) gain on fair value adjustment for warrants | $ 0 | $ (4) | (18) | $ 130 |
Warrants converted to securities | (333) | |||
Fair value of warrants at end of period | 2 | 2 | ||
Level 3 Estimated Fair Value [Member] | ||||
Fair value of warrants at beginning of period | 2 | 359 | 20 | 225 |
Unrealized (loss) gain on fair value adjustment for warrants | 0 | (4) | (18) | 130 |
Warrants converted to securities | 0 | (333) | (333) | |
Fair value of warrants at end of period | $ 2 | $ 22 | $ 2 | $ 22 |
Fair Value Measurements (Fair_2
Fair Value Measurements (Fair Value, Investment Securities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fair value of securities at the beginning of period | $ 422 | |||
Warrants converted to securities | $ 333 | |||
Unrealized (loss) gain on fair market valuation of securities | $ (9) | $ 41 | (12) | 144 |
Fair value of investment securities at the end of period | 44 | 44 | ||
Level 1 Estimated Fair Value [Member] | ||||
Fair value of securities at the beginning of period | 53 | 381 | 422 | 70 |
Conversion of previously held private securities | 0 | 0 | 0 | 53 |
Securities sold | 0 | 0 | (366) | 0 |
Warrants converted to securities | 0 | 333 | 0 | 333 |
Unrealized (loss) gain on fair market valuation of securities | (9) | 41 | (12) | 299 |
Fair value of investment securities at the end of period | $ 44 | $ 755 | $ 44 | $ 755 |
Fair Value Measurements (Fair_3
Fair Value Measurements (Fair Value Measurement of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment losses on equipment | $ 89 | $ 0 | $ 788 | $ 0 | $ 995 |
Lease and Off-Lease Equipment [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment losses on equipment | 936 | 960 | |||
Lease and Off-Lease Equipment [Member] | Level 1 Estimated Fair Value [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment losses on equipment | 0 | 0 | |||
Lease and Off-Lease Equipment [Member] | Level 2 Estimated Fair Value [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment losses on equipment | 0 | 0 | |||
Lease and Off-Lease Equipment [Member] | Level 3 Estimated Fair Value [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment losses on equipment | $ 936 | $ 960 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary of Valuation Techniques and Significant Unobservable Inputs Used) (Details) - Level 3 Estimated Fair Value [Member] | Sep. 30, 2021USD ($)Y | Dec. 31, 2020USD ($)Y |
Nonrecurring [Member] | Lease and Off-Lease Equipment [Member] | Market Approach Valuation Technique [Member] | Unobservable Inputs, Third Party Agents' pricing Quotes - Per Equipment [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired lease and off-lease equipment | $ 936,000 | $ 960,000 |
Minimum [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Formulation [Member] | Unobservable Inputs, Stock Price [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | 0.0005 | 0.0005 |
Minimum [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Formulation [Member] | Unobservable Inputs, Exercise Price [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | 0.0010 | 0.0010 |
Minimum [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Formulation [Member] | Unobservable Inputs, Time to Maturity (in Years) [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | Y | 0.23 | 0.98 |
Minimum [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Formulation [Member] | Unobservable Inputs, Risk Free Interest Rate [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | 0.0004 | 0.0010 |
Minimum [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Formulation [Member] | Unobservable Inputs, Annualized Volatility [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | 0.3492 | 0.3386 |
Minimum [Member] | Nonrecurring [Member] | Lease and Off-Lease Equipment [Member] | Market Approach Valuation Technique [Member] | Unobservable Inputs, Third Party Agents' pricing Quotes - Per Equipment [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired lease and off-lease equipment | $ 0 | $ 0 |
Maximum [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Formulation [Member] | Unobservable Inputs, Stock Price [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | 0.1872 | 0.2866 |
Maximum [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Formulation [Member] | Unobservable Inputs, Exercise Price [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | 1.6005 | 1.6005 |
Maximum [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Formulation [Member] | Unobservable Inputs, Time to Maturity (in Years) [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | Y | 2.60 | 3.35 |
Maximum [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Formulation [Member] | Unobservable Inputs, Risk Free Interest Rate [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | 0.0047 | 0.0022 |
Maximum [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Formulation [Member] | Unobservable Inputs, Annualized Volatility [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | 1.6694 | 1.5837 |
Maximum [Member] | Nonrecurring [Member] | Lease and Off-Lease Equipment [Member] | Market Approach Valuation Technique [Member] | Unobservable Inputs, Third Party Agents' pricing Quotes - Per Equipment [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired lease and off-lease equipment | $ 150,000 | $ 150,000 |
Weighted Average [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Formulation [Member] | Unobservable Inputs, Stock Price [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | 0.0021 | 0.0024 |
Weighted Average [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Formulation [Member] | Unobservable Inputs, Exercise Price [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | 0.0032 | 0.0032 |
Weighted Average [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Formulation [Member] | Unobservable Inputs, Time to Maturity (in Years) [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | Y | 0.43 | 1.18 |
Weighted Average [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Formulation [Member] | Unobservable Inputs, Risk Free Interest Rate [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | 0.0008 | 0.0011 |
Weighted Average [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Formulation [Member] | Unobservable Inputs, Annualized Volatility [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | 0.3650 | 0.3528 |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Financial assets: | ||||||
Cash and cash equivalents | $ 2,139 | $ 1,297 | ||||
Investment in securities | 44 | 422 | ||||
Warrants, fair value | 2 | 20 | ||||
Financial liabilities: | ||||||
Non-recourse debt | 2,456 | 3,212 | ||||
Level 1 Estimated Fair Value [Member] | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 2,139 | 1,297 | ||||
Investment in securities | 44 | $ 53 | 422 | $ 755 | $ 381 | $ 70 |
Warrants, fair value | 0 | 0 | ||||
Financial liabilities: | ||||||
Non-recourse debt | 0 | 0 | ||||
Level 2 Estimated Fair Value [Member] | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Investment in securities | 0 | 0 | ||||
Warrants, fair value | 0 | 0 | ||||
Financial liabilities: | ||||||
Non-recourse debt | 0 | 0 | ||||
Level 3 Estimated Fair Value [Member] | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Investment in securities | 0 | 0 | ||||
Warrants, fair value | 2 | $ 2 | 20 | $ 22 | $ 359 | $ 225 |
Financial liabilities: | ||||||
Non-recourse debt | 2,456 | 3,212 | ||||
Carrying Amount [Member] | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 2,139 | 1,297 | ||||
Investment in securities | 44 | 422 | ||||
Warrants, fair value | 2 | 20 | ||||
Financial liabilities: | ||||||
Non-recourse debt | $ 2,402 | $ 3,108 |