Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | ATEL Growth Capital Fund 8, LLC | |
Entity Central Index Key | 0001537069 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Smaller reporting company | true | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Units Outstanding | 1,612,396 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 333 | $ 214 |
Due from Managing Member and affiliates | 34 | |
Notes receivable, net | 719 | 2,188 |
Investments in securities | 423 | 281 |
Warrants, fair value | 384 | 561 |
Prepaid expenses and other assets | 5 | 7 |
Total assets | 1,864 | 3,285 |
Accounts payable and accrued liabilities: | ||
Due to Managing Member and affiliates | 54 | 63 |
Accrued distributions to Other Members | 249 | 249 |
Other | 11 | |
Total liabilities | 314 | 312 |
Commitments and contingencies | ||
Members' capital: | ||
Managing Member | ||
Other Members | 1,550 | 2,973 |
Total Members' capital | 1,550 | 2,973 |
Total liabilities and Members' capital | $ 1,864 | $ 3,285 |
Statements of Operations
Statements of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues: | ||||
Notes receivable interest income, including accretion of net note origination costs and discounts | $ 60,000 | $ 128,000 | $ 245,000 | $ 382,000 |
Gain on early termination of notes receivable | 3,000 | 55,000 | ||
Gain on sales or dispositions of investment in securities | 161,000 | |||
Unrealized (loss) gain on fair value adjustment for investment in securities | (30,000) | (33,000) | (26,000) | 65,000 |
Unrealized (loss) gain on fair value adjustment for warrants | (2,000) | (1,000) | (37,000) | 18,000 |
Other | 1,000 | 2,000 | 3,000 | 12,000 |
Total revenues | 32,000 | 96,000 | 401,000 | 477,000 |
Expenses: | ||||
Asset management fees to Managing Member | 6,000 | 13,000 | 24,000 | 38,000 |
Acquisition expense | 2,000 | 35,000 | ||
Cost reimbursements to affiliates | 30,000 | 19,000 | 104,000 | 95,000 |
Provision for (reversal of) credit losses | 27,000 | (33,000) | ||
Professional fees | 40,000 | 29,000 | 98,000 | 65,000 |
Outside services | 21,000 | 22,000 | 55,000 | 65,000 |
Taxes on income and franchise fees | 1,000 | 3,000 | ||
Bank charges | 5,000 | 5,000 | 13,000 | 15,000 |
Printing and photocopying | 3,000 | 3,000 | 7,000 | 6,000 |
Other | 5,000 | 3,000 | 16,000 | 12,000 |
Total expenses | 110,000 | 96,000 | 345,000 | 301,000 |
Net (loss) income | (78,000) | 56,000 | 176,000 | |
Net income (loss): | ||||
Managing Member | 28,000 | 61,000 | 148,000 | 148,000 |
Other Members | (106,000) | $ (61,000) | (92,000) | 28,000 |
Net (loss) income | $ (78,000) | $ 56,000 | $ 176,000 | |
Net (loss) income per Limited Liability Company Unit (Other Members) | $ (0.07) | $ (0.04) | $ (0.06) | $ 0.02 |
Weighted average number of Units outstanding | 1,612,396 | 1,612,396 | 1,612,396 | 1,612,396 |
Statements of Changes in Member
Statements of Changes in Members' Capital - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Beginning Balance | $ 2,099 | $ 4,172 | $ 2,973 | $ 4,870 |
Distributions to Other Members | (443) | (541) | (1,331) | (1,328) |
Distributions to Managing Member | (28) | (61) | (148) | (148) |
Net (loss) income | $ (78) | $ 56 | 176 | |
Ending Balance (in Units) | 1,612,396 | 1,612,396 | ||
Ending Balance | $ 1,550 | $ 3,570 | $ 1,550 | $ 3,570 |
Other Members [Member] | ||||
Beginning Balance (in Units) | 1,612,396 | 1,612,396 | 1,612,396 | 1,612,396 |
Beginning Balance | $ 2,099 | $ 4,172 | $ 2,973 | $ 4,870 |
Distributions to Other Members | (443) | (541) | (1,331) | (1,328) |
Net (loss) income | $ (106) | $ (61) | $ (92) | $ 28 |
Ending Balance (in Units) | 1,612,396 | 1,612,396 | 1,612,396 | 1,612,396 |
Ending Balance | $ 1,550 | $ 3,570 | $ 1,550 | $ 3,570 |
Managing Member [Member] | ||||
Distributions to Managing Member | (28) | (61) | (148) | (148) |
Net (loss) income | $ 28 | $ 61 | $ 148 | $ 148 |
Statements of Changes in Memb_2
Statements of Changes in Members' Capital (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other Members [Member] | ||||
Weighted average distributions per Unit | $ 0.27 | $ 0.34 | $ 0.83 | $ 0.82 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities: | ||||
Net (loss) income | $ (78,000) | $ 56,000 | $ 176,000 | |
Adjustment to reconcile net (loss) income to cash provided by (used in) operating activities: | ||||
Accretion of note discount - warrants | (11,000) | $ (10,000) | (40,000) | (34,000) |
Amortization of net note origination costs | 4,000 | 5,000 | 4,000 | 22,000 |
Gain on early termination of notes receivable | (3,000) | (55,000) | ||
Gain on sales or dispositions of investment in securities | (161,000) | |||
Provision for (reversal of) credit losses | 27,000 | (33,000) | ||
Unrealized loss (gain) on fair value adjustment for warrants | 2,000 | 1,000 | 37,000 | (18,000) |
Unrealized loss (gain) on fair value adjustment for investment in securities | 30,000 | 33,000 | 26,000 | (65,000) |
Changes in operating assets and liabilities: | ||||
Accounts receivable | (4,000) | 9,000 | ||
Due from Managing Member and affiliates | 92,000 | 55,000 | 34,000 | 55,000 |
Prepaid expenses and other assets | (1,000) | (19,000) | 2,000 | (25,000) |
Accounts payable, Managing Member and affiliates | 34,000 | 37,000 | 12,000 | 70,000 |
Accounts payable, other | 10,000 | (15,000) | 11,000 | |
Unearned fee income related to notes receivable | (1,000) | (1,000) | (3,000) | (5,000) |
Net cash provided by (used in) operating activities | 78,000 | 82,000 | (50,000) | 152,000 |
Investing activities: | ||||
Advance payments | (64,000) | |||
Purchase of securities | (27,000) | (27,000) | ||
Proceeds from early termination of notes receivable | 81,000 | 554,000 | ||
Proceeds from sales or dispositions of investment in securities | 161,000 | |||
Payments of note origination costs | (2,000) | (4,000) | ||
Note receivable advances | (26,000) | (1,016,000) | ||
Principal payments received on notes receivable | 271,000 | 424,000 | 1,007,000 | 1,412,000 |
Net cash provided by investing activities | 325,000 | 422,000 | 1,669,000 | 328,000 |
Financing activities: | ||||
Net cash used in financing activities | (514,000) | (602,000) | (1,500,000) | (1,476,000) |
Net (decrease) increase in cash and cash equivalents | (111,000) | (98,000) | 119,000 | (996,000) |
Cash and cash equivalents at beginning of period | 444,000 | 357,000 | 214,000 | 1,255,000 |
Cash and cash equivalents at end of period | 333,000 | 259,000 | 333,000 | 259,000 |
Schedule of non-cash investing and financing transactions: | ||||
Conversion of warrants to equity securities | 140,000 | |||
Other Members [Member] | ||||
Operating activities: | ||||
Net (loss) income | (106,000) | (61,000) | (92,000) | 28,000 |
Financing activities: | ||||
Distributions to Members | (443,000) | (541,000) | (1,331,000) | (1,328,000) |
Schedule of non-cash investing and financing transactions: | ||||
Distributions payable to Members at period-end | 249,000 | 249,000 | 249,000 | 249,000 |
Managing Member [Member] | ||||
Operating activities: | ||||
Net (loss) income | 28,000 | 61,000 | 148,000 | 148,000 |
Financing activities: | ||||
Distributions to Members | (71,000) | (61,000) | (169,000) | (148,000) |
Schedule of non-cash investing and financing transactions: | ||||
Distributions payable to Members at period-end | $ 28,000 | $ 28,000 | $ 28,000 | $ 28,000 |
Organization and Limited Liabil
Organization and Limited Liability Company Matters | 9 Months Ended |
Sep. 30, 2019 | |
Organization and Limited Liability Company Matters [Abstract] | |
Organization and Limited Liability Company Matters | 1. Organization and ATEL Growth Capital Fund 8, LLC (the “Company” or the “Fund”) was formed under the laws of the state of California on December 8, 2011 for the purpose of providing financing for the acquisition of equipment and other goods and services used by emerging growth companies and established privately held companies without publicly traded securities, and for providing other forms of financing for, and to acquire equity interests and warrants and rights to purchase equity interests in such companies. The Fund may continue until it is terminated in accordance with the ATEL Growth Capital Fund 8, LLC limited liability company operating agreement dated December 13, 2011 (the “Operating Agreement”). The Managing Member of the Company is AGC Managing Member, LLC (the “Managing Member” or “Manager”), the renamed AGC 8 Managing Member, LLC which was formed in December 2011 as a Nevada limited liability company. Such name change is the result of an amendment to the articles of incorporation filed with the State of Nevada effective March 18, 2014. Contributions in the amount of $500 were received as of December 31, 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 offering was terminated on August 20, 2014. Through September 30, 2019, cumulative contributions, net of rescissions and related distributions paid, totaling $16.2 million (inclusive of the $500 initial Member’s capital investment) have been received. As of September 30, 2019, a total of 1,612,396 Units were issued and outstanding. Prior to the termination of its offering, the Fund, or Managing Member on behalf of the Fund, incurred costs in connection with the organization, registration and issuance of the Units. The amount of such costs borne by the Fund was limited by certain provisions of the Operating Agreement. 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, 2018, filed with the Securities and Exchange Commission. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019 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, 2019, up until the issuance of the financial statements. No events were noted which would require additional disclosure in the footnotes to the financial statements or adjustments thereto . 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 credit losses on notes receivable and the fair valuation of equity securities and warrants. 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 financing opportunities is North America. Currently, 100% of the Company’s operating revenues are from customers domiciled in the United States. Allowance for Doubtful Accounts: Accounts receivable represent the amounts billed under notes receivable which are currently due to the Company. Allowances for doubtful accounts are typically established based upon their aging and historical charge off and collection experience and the creditworthiness of specifically identified 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. Accounts receivable 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 periodically reviews the creditworthiness of companies with note payments outstanding less than 90 days. Based upon management’s judgment, such notes may be placed in non-accrual status. Notes 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 receivable is probable. All payments received on amounts billed under notes receivable are applied only against outstanding principal balances. Valuation Adjustments: In addition to the allowance established for delinquent accounts receivable, the total allowance also includes probable impairment charges on notes receivable. Notes are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and/or interest when due according to the contractual terms of the note agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest when due. If it is determined that a loan is impaired with regard to scheduled payments, the Company will perform an analysis of the note to determine if an impairment valuation reserve is necessary. This analysis considers the estimated cash flows from the note, or the collateral value of the property underlying the note when note repayment is collateral dependent. Any required valuation reserve is charged to earnings when determined; and notes are charged off to the allowance as they are deemed uncollectible. Investment in securities: From time to time, the Company may purchase equity securities of its borrowers or receive warrants 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 not registered for public sale 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. As of September 30, 2019 and December 31, 2018, investments in equity securities totaled $42 3 thousand and $281 thousand, respectively. During the three months ended September 30, 2019 and 2018, the Company recorded $30 thousand and $33 thousand of unrealized losses on investment in securities, respectively. During the nine months ended September 30, 2019 and 2018, the Company recorded unrealized losses of $ 26 thousand and unrealized gains of $65 thousand on investments in securities, respectively. The Company also recorded $161 thousand of gains on sales or disposition of investment in securities during the nine months ended September 30, 2019. There were no gains or loss on sales or dispositions of investments in securities for the three months ended September 30, 2019 and 2018. 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. At September 30, 2019 and December 31, 2018, the Managing Member estimated the fair value of warrants to be $384 thousand and $5 61 thousand, respectively. During the three months ended September 30, 2019 and 2018, the Company recorded unrealized losses of $2 thousand and $1 thousand on warrants. During the nine months ended September 30, 2019 and 2018, the Company recorded unrealized losses of $37 thousand and unrealized gains of $18 thousand, respectively, on the fair valuation of its warrants. In addition, there was a net exercise of warrants in exchange for equity securities of $140 thousand in the first quarter of 2019. No exercises of any kind occurred during the comparative prior year period. Credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk include cash and cash equivalents, notes receivable and accounts receivable. The Company places the majority of its cash deposits in non-interest bearing accounts with financial institutions that have no less than $10 billion in assets. Such deposits are insured up to $250,000. The remainder of the Fund’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 receivable represent amounts due from various industries. Per Unit data: The Company issues only one class of Units, none of which are considered dilutive. Net income 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 and 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 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 June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 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 net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in 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. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018. Management is currently evaluating the standard and expects the Update may potentially result in an 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 Accounting Standards Update 2018-19, Codification Improvements to Topic 326, Financial Instruments — Credit Losses (“ASU 2018-19”). The new standard clarifies certain aspects of the new current expected credit losses (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; however, it will be applicable to our note receivables and direct financing leases, if any. The effective date and transition requirements in this Update are the same as the effective dates and transition requirements in Update 2016-13, as amended by this Update, which is for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Management is currently evaluating the impact of the standard on the financial statements and related disclosure requirements. In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (“ASU 2018-13”), which amends the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. This ASU modifies disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. The amendments in this Update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted upon issuance of this Update. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this Update and delay adoption of the additional disclosures until their effective date. Management is currently evaluating the impact of this standard on the financial statements and related disclosure requirements. On August 15, 2019, the FASB issued a proposed ASU that would grant private companies, not-for-profit organizations, and certain small public companies additional time to implement FASB standards on CECL. The proposed ASU defers the effective date for CECL to fiscal periods beginning after December 15, 2022, including interim periods within those fiscal years. The ASU was approved on October 16, 2019. |
Notes Receivable, Net
Notes Receivable, Net | 9 Months Ended |
Sep. 30, 2019 | |
Notes Receivable, Net [Abstract] | |
Notes Receivable, Net | 3. Notes receivable, net: The Company has various notes receivable from borrowers who have financed the purchase of equipment through the Company. As of September 30, 2019, the original terms of the notes receivable are from 24 to 84 months and bear interest at implicit or stated rates ranging from 11.37% to 18.00% per annum. The notes are secured by the equipment financed and have maturity dates ranging from 2019 through 2021. At September 30, 2019, the Company had no notes receivable on non-accrual status. As of September 30, 2019, the future minimum payments receivable are as follows (in thousands): Three months ending December 31, 2019 $ 262 Year ending December 31, 2020 421 155 838 Less: portion representing unearned interest income, net (83) 755 Unamortized discount on warrants received (37) Unamortized initial direct costs 1 Notes receivable, net $ 719 |
Allowance for Credit Losses
Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2019 | |
Allowance for Credit Losses [Abstract] | |
Allowance for Credit Losses | 4. Allowance for credit losses: The Company’s allowance for credit losses are as follows (in thousands): Valuation Adjustments - Notes Receivable Balance December 31, 2017 $ 33 Reversal of provision for credit losses (33) Balance September 30, 2018 $ — Valuation Adjustments - Notes Receivable Balance December 31, 2018 $ 133 Provision for credit losses 27 Write-off (160) Balance September 30, 2019 $ — The Company’s allowance for credit losses and its recorded investment in notes receivable at September 30, 2019 and December 31, 2018 are as follows (in thousands): Notes September 30, 2019 Receivable Allowance for credit losses: Ending balance $ — Ending balance: individually evaluated for impairment $ — Ending balance: collectively evaluated for impairment $ — Notes receivables: Ending balance $ 755 Ending balance: individually evaluated for impairment $ 755 Ending balance: collectively evaluated for impairment $ — Notes December 31, 2018 Receivable Allowance for credit losses: Ending balance $ 133 Ending balance: individually evaluated for impairment $ 133 Ending balance: collectively evaluated for impairment $ — Notes receivables: Ending balance $ 2,321 Ending balance: individually evaluated for impairment $ 2,321 Ending balance: collectively evaluated for impairment $ — The Company evaluates the credit quality of its notes receivables on a scale equivalent to the following quality indicators related to corporate risk profiles: Pass – Any account whose debtor, co-debtor or any guarantor has a credit rating on publicly traded or privately placed debt issues as rated by Moody’s or S&P for either Senior Unsecured debt, Long Term Issuer rating or Issuer rating that are in the tiers of ratings generally recognized by the investment community as constituting an Investment Grade credit rating; or, has been determined by the Manager to be an Investment Grade Equivalent or High Quality Corporate Credit per its Credit Policy or has a Not Rated internal rating by the Manager and the account is not considered by the Chief Credit Officer of the Manager to fall into one of the three risk profiles below. Special Mention – Any traditional corporate type account with potential weaknesses (e.g. large net losses or major industry downturns) or, any growth capital account that has less than three months of cash as of the end of the calendar quarter to fund their continuing operations. These accounts deserve management’s close attention. If left uncorrected, those potential weaknesses may result in deterioration of the Fund’s receivable at some future date. Substandard – Any account that is inadequately protected by the current worth and paying capacity of the borrower or of the collateral pledged, if any. Accounts that are so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Fund will sustain some loss as the likelihood of fully collecting all receivables may be questionable if the deficiencies are not corrected. Such accounts are on the Manager’s Credit Watch List. Doubtful – Any account where the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Accordingly, an account that is so classified is on the Manager’s Credit Watch List, and has been declared in default and the Manager has repossessed, or is attempting to repossess, the equipment it financed. This category includes impaired notes as applicable. At September 30, 2019 and December 31, 2018, the Company’s notes receivables by credit quality indicator and by class of notes receivables (excluding unamortized discount on warrant and unamortized initial direct costs) are as follows (in thousands): Notes Receivable September 30, 2019 December 31, 2018 Pass $ 755 $ 2,188 Special mention — — Substandard — — Doubtful — 133 Total $ 755 $ 2,321 As of September 30, 2019 , there is no impaired investment in notes receivable. As of December 31, 2018, impaired investments in notes receivable are as follows (in thousands): Impaired Investment in Notes Receivables Unpaid Average Interest Recorded Principal Related Recorded Income December 31, 2018 Investment Balance Allowance Investment Recognized With no related allowance recorded Notes receivable $ — $ — $ — $ — $ — With an allowance recorded Notes receivable 133 133 133 133 — Total $ 133 $ 133 $ 133 $ 133 $ — As of September 30, 2019, investment in notes receivables is aged as follows (in thousands): Recorded Greater Total Investment>90 31‑60 Days 61‑90 Days Than 90 Total Notes Days and September 30, 2019 Past Due Past Due Days Past Due Current Receivables Accruing Notes receivable $ — $ — $ — $ — $ 755 $ 755 $ — Recorded Greater Total Investment>90 31‑60 Days 61‑90 Days Than 90 Total Notes Days and December 31, 2018 Past Due Past Due Days Past Due Current Receivables Accruing Notes receivable $ — $ — $ — $ — $ 2,321 $ 2,321 $ — As of September 30, 2019 and December 31, 2018, the Company had no notes receivable on non-accrual status. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
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 equipment financing 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. 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. During the three and nine months ended September 30, 2019 and 2018, the Managing Member and/or affiliates earned commissions and fees, and billed for reimbursements of costs and expenses pursuant to the Operating Agreement as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Administrative costs reimbursed to Managing Member and/or affiliates $ 30 $ 19 $ 104 $ 95 Asset management fees to Managing Member 6 13 24 38 Acquisition costs and note origination fees paid to Managing Member — 4 — 39 $ 36 $ 36 $ 128 $ 172 |
Commitments
Commitments | 9 Months Ended |
Sep. 30, 2019 | |
Commitments [Abstract] | |
Commitments | 6. C ommitments: At September 30, 2019, there were commitments to fund investments in notes receivable totaling $750 thousand. These amounts represent contract awards which may be canceled by the prospective borrower/investee or may not be accepted by the Company. |
Members' Capital
Members' Capital | 9 Months Ended |
Sep. 30, 2019 | |
Members' Capital [Abstract] | |
Members' Capital | 7. Members’ Capital: A total of 1,612,396 Units were issued and outstanding as of September 30, 2019 and December 31, 2018. The Fund is authorized to issue up to 7,500,000 Units in addition to the Units issued to the initial member (50 Units). Distributions to the Other Members for the three and nine months ended September 30, 2019 and 2018 are as follows (in thousands, except for Units and per Unit data): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Distributions declared $ 443 $ 541 $ 1,331 $ 1,328 Weighted average number of Units outstanding 1,612,396 1,612,396 1,612,396 1,612,396 Weighted average distributions per Unit $ 0.27 $ 0.34 $ 0.83 $ 0.82 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 8. 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, 2019 and December 31, 2018, the Company’s warrants and investment securities were measured on a recurring basis. 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 volatility of respective similar publicly traded companies, a risk free interest rate, time to maturity, stock prices, exercise prices and number of warrants. As of September 30, 2019 and 2018, the calculated fair value of the Fund’s warrant portfolio totaled $38 4 thousand and $541 thousand, respectively. Such valuation is classified within Level 3 of the valuation hierarchy. The fair value of warrants that were accounted for on a recurring basis as of the three and nine months ended September 30, 2019 and 2018 and classified as Level 3 are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Fair value of warrants at beginning of period $ 386 $ 542 $ 561 $ 489 Fair value of new warrants, recorded during the period (included as a discount on notes receivable) — — — 34 Warrants converted to securities — — (140) — Unrealized gain (loss) on fair value adjustment for warrants (2) (1) (37) 18 Fair value of warrants at end of period $ 384 $ 541 $ 384 $ 541 Impaired notes receivable (non-recurring) The fair value of the Company’s notes receivable, when impairment adjustments are required, is estimated using either third party appraisals or estimations of the value of collateral (for collateral dependent loans) or discounted cash flow analyses (by discounting estimated future cash flows) using the effective interest rate contained in the terms of the original loan. During the nine months ended September 30, 2019, the Company recorded fair value adjustments totaling $27 thousand for impaired notes. In contrast, the Company reversed $33,000 of credit losses during the prior year nine month period as delinquent notes receivable previously reserved for were recovered. There were no adjustments for the three months ended September 30, 2019 and 2018. The fair value adjustments recorded in both years were non-recurring and were based upon an estimated valuation of underlying collateral. Under the Fair Value Measurements Topic of the FASB Accounting Standards Codification, the fair value of the impaired notes receivable is classified within Level 3 of the valuation hierarchy. The valuation utilizes a market approach technique and uses inputs from third party appraisers that utilize current market transactions as adjusted for certain factors specific to the underlying collateral. The following tables summarize the valuation techniques and significant unobservable inputs used for the Company’s recurring and non-recurring fair value calculation categorized as Level 3 in the fair value hierarchy at September 30, 2019 and December 31, 2018: September 30, 2019 Valuation Valuation Unobservable Range of Name Frequency Technique Inputs Input Values Warrants Recurring Black-Scholes formulation Stock price $0.11 - $14.50 Exercise price $0.02 - $38.64 Time to maturity (in years) 1.24 - 12.20 Risk-free interest rate 1.55% - 1.74% Annualized volatility 32.54% - 114.48% Warrant Recurring Market valuation Stock price $0.10 December 31, 2018 Valuation Valuation Unobservable Range of Name Frequency Technique Inputs Input Values Warrants Recurring Black-Scholes formulation Stock price $0.00 - $14.50 Exercise price $0.21 - $38.64 Time to maturity (in years) 1.99 - 13.88 Risk-free interest rate 2.48% - 2.76% Annualized volatility 23.58% - 292.35% 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 has determined 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. Notes receivable The fair value of the Company’s notes receivable is generally estimated based upon various methodologies deployed by financial and credit management including, but not limited to, credit analysis, third party appraisal and/or discounted cash flow analysis based upon current market valuation techniques and market rates for similar types of lending arrangements, which may consider adjustments for impaired loans as deemed necessary. 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. The 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 fair value of investment securities that were accounted for on a recurring basis as of the three and nine months ended September 30, 2019 and 2018 and classified as Level 1 are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Fair value of investment in securities at beginning of period $ 86 $ 176 $ 117 $ 92 Unrealized gain (loss) on fair market valuation of securities (30) (33) (61) 51 Fair value of investment in securities at end of period $ 56 $ 143 $ 56 $ 143 The following tables present estimated fair values of the Company’s financial instruments in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification at September 30, 2019 and December 31, 2018 (in thousands): September 30, 2019 Carrying Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 333 $ 333 $ — $ — $ 333 Notes receivable, net 719 — — 746 746 Investment in securities 56 56 — — 56 Warrants 384 — — 384 384 December 31, 2018 Carrying Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 214 $ 214 $ — $ — $ 214 Notes receivable, net 2,188 — — 2,266 2,266 Investment in securities 117 117 — — 117 Warrants 561 — — 561 561 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2019 | |
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, 2019 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, 2019, up until the issuance of the financial statements. No events were noted which would require additional disclosure in the footnotes to the financial statements or adjustments thereto . |
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 credit losses on notes receivable and the fair valuation of equity securities and warrants. |
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 financing opportunities is North America. Currently, 100% of the Company’s operating revenues are from customers domiciled in the United States. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts: Accounts receivable represent the amounts billed under notes receivable which are currently due to the Company. Allowances for doubtful accounts are typically established based upon their aging and historical charge off and collection experience and the creditworthiness of specifically identified 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. Accounts receivable 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 periodically reviews the creditworthiness of companies with note payments outstanding less than 90 days. Based upon management’s judgment, such notes may be placed in non-accrual status. Notes 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 receivable is probable. All payments received on amounts billed under notes receivable are applied only against outstanding principal balances. |
Valuation Adjustments | Valuation Adjustments: In addition to the allowance established for delinquent accounts receivable, the total allowance also includes probable impairment charges on notes receivable. Notes are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and/or interest when due according to the contractual terms of the note agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest when due. If it is determined that a loan is impaired with regard to scheduled payments, the Company will perform an analysis of the note to determine if an impairment valuation reserve is necessary. This analysis considers the estimated cash flows from the note, or the collateral value of the property underlying the note when note repayment is collateral dependent. Any required valuation reserve is charged to earnings when determined; and notes are charged off to the allowance as they are deemed uncollectible. |
Investment in Securities | Investment in securities: From time to time, the Company may purchase equity securities of its borrowers or receive warrants 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 not registered for public sale 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. As of September 30, 2019 and December 31, 2018, investments in equity securities totaled $42 3 thousand and $281 thousand, respectively. During the three months ended September 30, 2019 and 2018, the Company recorded $30 thousand and $33 thousand of unrealized losses on investment in securities, respectively. During the nine months ended September 30, 2019 and 2018, the Company recorded unrealized losses of $ 26 thousand and unrealized gains of $65 thousand on investments in securities, respectively. The Company also recorded $161 thousand of gains on sales or disposition of investment in securities during the nine months ended September 30, 2019. There were no gains or loss on sales or dispositions of investments in securities for the three months ended September 30, 2019 and 2018. 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. At September 30, 2019 and December 31, 2018, the Managing Member estimated the fair value of warrants to be $384 thousand and $5 61 thousand, respectively. During the three months ended September 30, 2019 and 2018, the Company recorded unrealized losses of $2 thousand and $1 thousand on warrants. During the nine months ended September 30, 2019 and 2018, the Company recorded unrealized losses of $37 thousand and unrealized gains of $18 thousand, respectively, on the fair valuation of its warrants. In addition, there was a net exercise of warrants in exchange for equity securities of $140 thousand in the first quarter of 2019. No exercises of any kind occurred during the comparative prior year period. |
Credit Risk | Credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk include cash and cash equivalents, notes receivable and accounts receivable. The Company places the majority of its cash deposits in non-interest bearing accounts with financial institutions that have no less than $10 billion in assets. Such deposits are insured up to $250,000. The remainder of the Fund’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 receivable represent amounts due from various industries. |
Per Unit Data | Per Unit data: The Company issues only one class of Units, none of which are considered dilutive. Net income 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 and 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 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 June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 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 net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in 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. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018. Management is currently evaluating the standard and expects the Update may potentially result in an 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 Accounting Standards Update 2018-19, Codification Improvements to Topic 326, Financial Instruments — Credit Losses (“ASU 2018-19”). The new standard clarifies certain aspects of the new current expected credit losses (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; however, it will be applicable to our note receivables and direct financing leases, if any. The effective date and transition requirements in this Update are the same as the effective dates and transition requirements in Update 2016-13, as amended by this Update, which is for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Management is currently evaluating the impact of the standard on the financial statements and related disclosure requirements. In August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (“ASU 2018-13”), which amends the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. This ASU modifies disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. The amendments in this Update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted upon issuance of this Update. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this Update and delay adoption of the additional disclosures until their effective date. Management is currently evaluating the impact of this standard on the financial statements and related disclosure requirements. On August 15, 2019, the FASB issued a proposed ASU that would grant private companies, not-for-profit organizations, and certain small public companies additional time to implement FASB standards on CECL. The proposed ASU defers the effective date for CECL to fiscal periods beginning after December 15, 2022, including interim periods within those fiscal years. The ASU was approved on October 16, 2019. |
Notes Receivable, Net (Tables)
Notes Receivable, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Notes Receivable, Net [Abstract] | |
Minimum Future Payments Receivable | As of September 30, 2019, the future minimum payments receivable are as follows (in thousands): Three months ending December 31, 2019 $ 262 Year ending December 31, 2020 421 155 838 Less: portion representing unearned interest income, net (83) 755 Unamortized discount on warrants received (37) Unamortized initial direct costs 1 Notes receivable, net $ 719 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Allowance for Credit Losses [Abstract] | |
Activity in Allowance for Credit Losses | The Company’s allowance for credit losses are as follows (in thousands): Valuation Adjustments - Notes Receivable Balance December 31, 2017 $ 33 Reversal of provision for credit losses (33) Balance September 30, 2018 $ — Valuation Adjustments - Notes Receivable Balance December 31, 2018 $ 133 Provision for credit losses 27 Write-off (160) Balance September 30, 2019 $ — |
Recorded Investment in Financing Receivables | The Company’s allowance for credit losses and its recorded investment in notes receivable at September 30, 2019 and December 31, 2018 are as follows (in thousands): Notes September 30, 2019 Receivable Allowance for credit losses: Ending balance $ — Ending balance: individually evaluated for impairment $ — Ending balance: collectively evaluated for impairment $ — Notes receivables: Ending balance $ 755 Ending balance: individually evaluated for impairment $ 755 Ending balance: collectively evaluated for impairment $ — Notes December 31, 2018 Receivable Allowance for credit losses: Ending balance $ 133 Ending balance: individually evaluated for impairment $ 133 Ending balance: collectively evaluated for impairment $ — Notes receivables: Ending balance $ 2,321 Ending balance: individually evaluated for impairment $ 2,321 Ending balance: collectively evaluated for impairment $ — |
Financing Receivables by Credit Quality Indicator and by Class | At September 30, 2019 and December 31, 2018, the Company’s notes receivables by credit quality indicator and by class of notes receivables (excluding unamortized discount on warrant and unamortized initial direct costs) are as follows (in thousands): Notes Receivable September 30, 2019 December 31, 2018 Pass $ 755 $ 2,188 Special mention — — Substandard — — Doubtful — 133 Total $ 755 $ 2,321 |
Schedule of Impaired Loans | As of September 30, 2019 , there is no impaired investment in notes receivable. As of December 31, 2018, impaired investments in notes receivable are as follows (in thousands): Impaired Investment in Notes Receivables Unpaid Average Interest Recorded Principal Related Recorded Income December 31, 2018 Investment Balance Allowance Investment Recognized With no related allowance recorded Notes receivable $ — $ — $ — $ — $ — With an allowance recorded Notes receivable 133 133 133 133 — Total $ 133 $ 133 $ 133 $ 133 $ — |
Net Investment in Financing Receivables by Age | As of September 30, 2019, investment in notes receivables is aged as follows (in thousands): Recorded Greater Total Investment>90 31‑60 Days 61‑90 Days Than 90 Total Notes Days and September 30, 2019 Past Due Past Due Days Past Due Current Receivables Accruing Notes receivable $ — $ — $ — $ — $ 755 $ 755 $ — Recorded Greater Total Investment>90 31‑60 Days 61‑90 Days Than 90 Total Notes Days and December 31, 2018 Past Due Past Due Days Past Due Current Receivables Accruing Notes receivable $ — $ — $ — $ — $ 2,321 $ 2,321 $ — |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement | During the three and nine months ended September 30, 2019 and 2018, the Managing Member and/or affiliates earned commissions and fees, and billed for reimbursements of costs and expenses pursuant to the Operating Agreement as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Administrative costs reimbursed to Managing Member and/or affiliates $ 30 $ 19 $ 104 $ 95 Asset management fees to Managing Member 6 13 24 38 Acquisition costs and note origination fees paid to Managing Member — 4 — 39 $ 36 $ 36 $ 128 $ 172 |
Members' Capital (Tables)
Members' Capital (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Members' Capital [Abstract] | |
Distributions to Other Members | Distributions to the Other Members for the three and nine months ended September 30, 2019 and 2018 are as follows (in thousands, except for Units and per Unit data): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Distributions declared $ 443 $ 541 $ 1,331 $ 1,328 Weighted average number of Units outstanding 1,612,396 1,612,396 1,612,396 1,612,396 Weighted average distributions per Unit $ 0.27 $ 0.34 $ 0.83 $ 0.82 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Measurements [Abstract] | |
Fair Value, Warrants Measured on Recurring Basis | The fair value of warrants that were accounted for on a recurring basis as of the three and nine months ended September 30, 2019 and 2018 and classified as Level 3 are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Fair value of warrants at beginning of period $ 386 $ 542 $ 561 $ 489 Fair value of new warrants, recorded during the period (included as a discount on notes receivable) — — — 34 Warrants converted to securities — — (140) — Unrealized gain (loss) on fair value adjustment for warrants (2) (1) (37) 18 Fair value of warrants at end of period $ 384 $ 541 $ 384 $ 541 |
Summary of Valuation Techniques and Significant Unobservable Inputs | The following tables summarize the valuation techniques and significant unobservable inputs used for the Company’s recurring and non-recurring fair value calculation categorized as Level 3 in the fair value hierarchy at September 30, 2019 and December 31, 2018: September 30, 2019 Valuation Valuation Unobservable Range of Name Frequency Technique Inputs Input Values Warrants Recurring Black-Scholes formulation Stock price $0.11 - $14.50 Exercise price $0.02 - $38.64 Time to maturity (in years) 1.24 - 12.20 Risk-free interest rate 1.55% - 1.74% Annualized volatility 32.54% - 114.48% Warrant Recurring Market valuation Stock price $0.10 December 31, 2018 Valuation Valuation Unobservable Range of Name Frequency Technique Inputs Input Values Warrants Recurring Black-Scholes formulation Stock price $0.00 - $14.50 Exercise price $0.21 - $38.64 Time to maturity (in years) 1.99 - 13.88 Risk-free interest rate 2.48% - 2.76% Annualized volatility 23.58% - 292.35% |
Fair Value, Investment Securities Measured on Recurring Basis | The fair value of investment securities that were accounted for on a recurring basis as of the three and nine months ended September 30, 2019 and 2018 and classified as Level 1 are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Fair value of investment in securities at beginning of period $ 86 $ 176 $ 117 $ 92 Unrealized gain (loss) on fair market valuation of securities (30) (33) (61) 51 Fair value of investment in securities at end of period $ 56 $ 143 $ 56 $ 143 |
Estimated Fair Values of Financial Instruments | The following tables present estimated fair values of the Company’s financial instruments in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification at September 30, 2019 and December 31, 2018 (in thousands): September 30, 2019 Carrying Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 333 $ 333 $ — $ — $ 333 Notes receivable, net 719 — — 746 746 Investment in securities 56 56 — — 56 Warrants 384 — — 384 384 December 31, 2018 Carrying Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 214 $ 214 $ — $ — $ 214 Notes receivable, net 2,188 — — 2,266 2,266 Investment in securities 117 117 — — 117 Warrants 561 — — 561 561 |
Organization and Limited Liab_2
Organization and Limited Liability Company Matters (Narrative) (Details) - USD ($) | 9 Months Ended | 94 Months Ended | ||||||
Sep. 30, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2011 | |
Business activities, description | providing financing for the acquisition of equipment and other goods and services used by emerging growth companies and established privately held companies without publicly traded securities | |||||||
Business formation date | Dec. 8, 2011 | |||||||
Business formation State | California | |||||||
Contributions of capital, initial | $ 500 | |||||||
Capital contribution | $ 16,200,000 | |||||||
Units issued | 1,612,396 | 1,612,396 | ||||||
Units outstanding | 1,612,396 | 1,612,396 | ||||||
Other Members [Member] | ||||||||
Units issued | 1,612,396 | 1,612,396 | 1,612,396 | |||||
Units outstanding | 1,612,396 | 1,612,396 | 1,612,396 | 1,612,396 | 1,612,396 | 1,612,396 | 1,612,396 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)segment | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Investment in securities | $ 423,000 | $ 423,000 | $ 281,000 | |||
Gain on sales or dispositions of investment in securities | 161,000 | |||||
Unrealized (loss) gain on fair value adjustment for investment in securities | (30,000) | $ (33,000) | (26,000) | $ 65,000 | ||
Warrants, fair value | 384,000 | 541,000 | 384,000 | 541,000 | $ 561,000 | |
Unrealized (loss) gain on fair value adjustment for warrants | (2,000) | $ (1,000) | $ (37,000) | $ 18,000 | ||
Realized gain (loss) on exercise of warrants | $ 140,000 | |||||
North America [Member] | Operating Revenue [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of operating segments | segment | 1 | |||||
Number of reportable segments | segment | 1 | |||||
Percentage of operating revenue | 100.00% | |||||
Minimum [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Required assets value of financial institutions for cash deposits | $ 10,000,000,000 | |||||
Accounts receivable, period for non-accrual status | 90 days | |||||
Maximum [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
U.S. Treasury instruments maturity period | 90 days | |||||
Cash deposits, insured amount | $ 250,000 | $ 250,000 | ||||
Accounts receivable, period for review of impairment | 90 days |
Notes Receivable, Net (Narrativ
Notes Receivable, Net (Narrative) (Details) - contract | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of notes receivables on non-accrual status | 0 | 0 |
Notes receivable, maturity date, description | maturity dates ranging from 2019 through 2021 | |
Minimum [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Terms of the notes receivable | 24 months | |
Notes receivable, interest rate | 11.37% | |
Maximum [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Terms of the notes receivable | 84 months | |
Notes receivable, interest rate | 18.00% |
Notes Receivable, Net (Minimum
Notes Receivable, Net (Minimum Future Payments Receivable) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Notes Receivable, Net [Abstract] | ||
Three months ending December 31, 2019 | $ 262 | |
Year ending December 31, 2020 | 421 | |
2021 | 155 | |
Notes receivable, gross | 838 | |
Less: portion representing unearned interest income, net | (83) | |
Notes receivable | 755 | $ 2,321 |
Unamortized discount on warrants received | (37) | |
Unamortized initial direct costs | 1 | |
Notes receivable, net | $ 719 | $ 2,188 |
Allowance for Credit Losses (Na
Allowance for Credit Losses (Narrative) (Details) $ in Billions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019USD ($)contract | Dec. 31, 2018USD ($)contract | |
Allowance for Credit Losses [Abstract] | ||
Number of notes receivables on non-accrual status | contract | 0 | 0 |
Notes receivable on non-accrual status | $ | $ 0 | $ 0 |
Allowance for Credit Losses (Ac
Allowance for Credit Losses (Activity in Allowance for Credit Losses) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Provision for (reversal of) credit losses | $ 27,000 | $ (33,000) |
Valuation Adjustments on Financing Receivables [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning Balance | 133,000 | 33,000 |
Provision for (reversal of) credit losses | 27,000 | (33,000) |
Write-off | (160,000) | |
Ending Balance |
Allowance for Credit Losses (Re
Allowance for Credit Losses (Recorded Investment in Financing Receivables) (Details) - Notes Receivable [Member] - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Allowances for credit losses: | ||
Ending balance | $ 133 | |
Ending balance: individually evaluated for impairment | 133 | |
Financing receivables: | ||
Ending balance | $ 755 | 2,321 |
Ending balance: individually evaluated for impairment | $ 755 | $ 2,321 |
Allowance for Credit Losses (Fi
Allowance for Credit Losses (Financing Receivables by Credit Quality Indicator and by Class) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Notes receivable | $ 755 | $ 2,321 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Notes receivable | 755 | 2,188 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Notes receivable | ||
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Notes receivable | ||
Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Notes receivable | $ 133 |
Allowance for Credit Losses (Sc
Allowance for Credit Losses (Schedule of Impaired Loans) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Allowance for Credit Losses [Abstract] | |
Notes receivable, With an allowance recorded, Recorded investment | $ 133 |
Notes receivable, With an allowance recorded, Unpaid principal balance | 133 |
Notes receivable, With an allowance recorded, Related allowance | 133 |
Notes receivable, With an allowance recorded, Average recorded investment | 133 |
Recorded investment, Total | 133 |
Unpaid principal balance, Total | 133 |
Average recorded investment, Total | $ 133 |
Allowance for Credit Losses (Ne
Allowance for Credit Losses (Net Investment in Financing Receivables by Age) (Details) - Notes Receivable [Member] - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | ||
Current | 755 | $ 2,321 |
Total financing receivables | 755 | 2,321 |
Recorded Investment > 90 Days and Accruing | ||
Financing Receivables 31-60 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | ||
Financing Receivables 61-90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | ||
Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Related Party Transactions [Abstract] | ||||
Administrative costs reimbursed to Managing Member and/or affiliates | $ 30 | $ 19 | $ 104 | $ 95 |
Asset management fees to Managing Member | 6 | 13 | 24 | 38 |
Acquisition costs and note origination fees paid to Managing Member | 4 | 39 | ||
Related party transaction, total | $ 36 | $ 36 | $ 128 | $ 172 |
Commitments (Narrative) (Detail
Commitments (Narrative) (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Related Party Transactions [Abstract] | |
Commitments to fund investments in notes receivable | $ 750 |
Members' Capital (Narrative) (D
Members' Capital (Narrative) (Details) - shares | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Other Members Capital Account [Line Items] | ||||||
Members capital account, Units issued | 1,612,396 | |||||
Members capital account, Units outstanding | 1,612,396 | |||||
Other Members [Member] | ||||||
Other Members Capital Account [Line Items] | ||||||
Members capital account, Units issued | 1,612,396 | 1,612,396 | ||||
Members capital account, Units outstanding | 1,612,396 | 1,612,396 | 1,612,396 | 1,612,396 | 1,612,396 | 1,612,396 |
Members capital account, Units authorized | 7,500,000 | 7,500,000 | ||||
Initial Member [Member] | ||||||
Other Members Capital Account [Line Items] | ||||||
Members capital account, Units issued | 50 | 50 |
Members' Capital (Distributions
Members' Capital (Distributions to Other Members) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Distributions declared | $ 443 | $ 541 | $ 1,331 | $ 1,328 |
Weighted average number of Units outstanding | 1,612,396 | 1,612,396 | 1,612,396 | 1,612,396 |
Other Members [Member] | ||||
Distributions declared | $ 443 | $ 541 | $ 1,331 | $ 1,328 |
Weighted average number of Units outstanding | 1,612,396 | 1,612,396 | 1,612,396 | 1,612,396 |
Weighted average distributions per Unit | $ 0.27 | $ 0.34 | $ 0.83 | $ 0.82 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Fair Value Measurements [Abstract] | |||
Warrants, fair value | $ 384,000 | $ 541,000 | $ 561,000 |
Fair value adjustments recorded on notes receivable | $ 27,000 | $ (33,000) |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Fair value of warrants at beginning of period | $ 561 | |||
Unrealized gain (loss) on fair value adjustment for warrants | $ (2) | $ (1) | (37) | $ 18 |
Fair value of warrants at end of period | 384 | 541 | 384 | 541 |
Level 3 Estimated Fair Value [Member] | ||||
Fair value of warrants at beginning of period | 386 | 542 | 561 | 489 |
Fair value of new warrants, recorded during the year (included as a discount on notes receivable) | 34 | |||
Warrants converted to securities | (140) | |||
Unrealized gain (loss) on fair value adjustment for warrants | (2) | (1) | (37) | 18 |
Fair value of warrants at end of period | $ 384 | $ 541 | $ 384 | $ 541 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary of Valuation Techniques and Significant Unobservable Inputs Used) (Details) - Level 3 Estimated Fair Value [Member] - Recurring [Member] - Warrant [Member] - Black-Scholes formulation [Member] | Sep. 30, 2019$ / sharesUSD ($) | Dec. 31, 2018$ / sharesUSD ($) |
Unobservable Inputs, Stock Price [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | 0.10 | |
Minimum [Member] | Unobservable Inputs, Stock Price [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | 0.11 | 0 |
Minimum [Member] | Unobservable Inputs, Exercise Price [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | 0.02 | 0.21 |
Minimum [Member] | Unobservable Inputs, Time to Maturity (in years) [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | $ | 1.24 | 1.99 |
Minimum [Member] | Unobservable Inputs, Risk-Free Interest Rate [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | 0.0155 | 0.0248 |
Minimum [Member] | Unobservable Inputs, Annualized volatility [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | 0.3254 | 0.2358 |
Maximum [Member] | Unobservable Inputs, Stock Price [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | 14.50 | 14.50 |
Maximum [Member] | Unobservable Inputs, Exercise Price [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | 38.64 | 38.64 |
Maximum [Member] | Unobservable Inputs, Time to Maturity (in years) [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | $ | 12.20 | 13.88 |
Maximum [Member] | Unobservable Inputs, Risk-Free Interest Rate [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | 0.0174 | 0.0276 |
Maximum [Member] | Unobservable Inputs, Annualized volatility [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | 1.1448 | 2.9235 |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Unrealized gain on fair value of securities | $ (30) | $ (33) | $ (26) | $ 65 |
Level 1 Estimated Fair Value [Member] | ||||
Fair value of securities at beginning of period | 86 | 176 | 117 | 92 |
Unrealized gain on fair value of securities | (30) | (33) | (61) | 51 |
Fair value of securities at end of period | $ 56 | $ 143 | $ 56 | $ 143 |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Financial assets: | ||||||
Warrants | $ 384 | $ 561 | $ 541 | |||
Level 1 Estimated Fair Value [Member] | ||||||
Financial assets: | ||||||
Investment in securities | 56 | $ 86 | 117 | 143 | $ 176 | $ 92 |
Level 3 Estimated Fair Value [Member] | ||||||
Financial assets: | ||||||
Warrants | 384 | $ 386 | 561 | $ 541 | $ 542 | $ 489 |
Carrying Amount [Member] | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 333 | 214 | ||||
Notes receivable, net | 719 | 2,188 | ||||
Investment in securities | 56 | 117 | ||||
Warrants | 384 | 561 | ||||
Estimate of Fair Value [Member] | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 333 | 214 | ||||
Notes receivable, net | 746 | 2,266 | ||||
Investment in securities | 56 | 117 | ||||
Warrants | 384 | 561 | ||||
Estimate of Fair Value [Member] | Level 1 Estimated Fair Value [Member] | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 333 | 214 | ||||
Investment in securities | 56 | 117 | ||||
Estimate of Fair Value [Member] | Level 2 Estimated Fair Value [Member] | ||||||
Financial assets: | ||||||
Cash and cash equivalents | ||||||
Notes receivable, net | ||||||
Investment in securities | ||||||
Warrants | ||||||
Estimate of Fair Value [Member] | Level 3 Estimated Fair Value [Member] | ||||||
Financial assets: | ||||||
Notes receivable, net | 746 | 2,266 | ||||
Warrants | $ 384 | $ 561 |