Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 31, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | ATEL 17, LLC | |
Entity Central Index Key | 1,640,982 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Units Outstanding | 2,434,410 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 7,572 | $ 3,430 |
Accounts receivable, net | 83 | 109 |
Notes receivable, net | 1,105 | 1,451 |
Warrants, fair value | 45 | 51 |
Investments in equipment and leases, net | 9,638 | 6,933 |
Prepaid expenses and other assets | 31 | 16 |
Total assets | 18,474 | 11,990 |
Accounts payable and accrued liabilities: | ||
Managing Member | 4 | |
Affiliates | 43 | 55 |
Accrued distributions to Other Members | 206 | 117 |
Other | 29 | 15 |
Unearned operating lease income | 63 | 103 |
Total liabilities | 341 | 294 |
Commitments and contingencies | ||
Members' capital: | ||
Managing Member | 1 | 1 |
Other Members | 18,132 | 11,695 |
Total Members' capital | 18,133 | 11,696 |
Total liabilities and Members' capital | $ 18,474 | $ 11,990 |
Statements of Operations
Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Leasing and lending activities: | ||||
Operating lease revenue | $ 373 | $ 142 | $ 949 | $ 246 |
Notes receivable interest income | 39 | 7 | 126 | 7 |
Unrealized (loss) gain on fair valuation of warrants | (2) | 19 | (6) | 19 |
Other | 1 | 6 | 5 | 6 |
Total revenues | 411 | 174 | 1,074 | 278 |
Expenses: | ||||
Depreciation of operating lease assets | 259 | 100 | 660 | 179 |
Asset management fees to Managing Member | 37 | 14 | 95 | 22 |
Acquisition expense | 26 | 150 | 182 | 150 |
Cost reimbursements to Managing Member and/or affiliates | 78 | 28 | 199 | 40 |
Provision for credit losses | 12 | 21 | ||
Amortization of initial direct costs | 16 | 8 | 42 | 18 |
Professional fees | 21 | 14 | 83 | 22 |
Outside services | 16 | 1 | 57 | 14 |
Taxes on income and franchise fees | 3 | 2 | 3 | 6 |
Bank charges | 24 | 1 | 25 | |
Other | 18 | 4 | 44 | 7 |
Total expenses | 510 | 322 | 1,411 | 458 |
Net loss | (99) | (148) | (337) | (180) |
Net loss: | ||||
Managing Member | ||||
Other Members | (99) | (148) | (337) | (180) |
Net loss | $ (99) | $ (148) | $ (337) | $ (180) |
Net loss per Limited Liability Company Unit (Other Members) | $ (0.04) | $ (0.15) | $ (0.18) | $ (0.32) |
Weighted average number of Units outstanding | 2,213,264 | 955,719 | 1,924,222 | 569,033 |
Statements of Changes in Member
Statements of Changes in Members' Capital - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Beginning Balance (in units) | 1,475,864 | |||
Beginning Balance | $ 11,696 | $ 1 | $ 1 | |
Capital contributions | 9,324 | 14,751 | ||
Less selling commissions to affiliates | $ (287) | (838) | (1,065) | |
Syndication costs | (1,397) | (2,213) | ||
Distributions to Other Members | (443) | (1,153) | (609) | |
Net loss | $ (99) | $ (337) | $ (180) | $ (234) |
Ending Balance (in units) | 2,410,142 | 2,410,142 | 1,475,864 | |
Ending Balance | $ 18,133 | $ 18,133 | $ 11,696 | |
Other Members [Member] | ||||
Beginning Balance (in units) | 1,475,864 | |||
Beginning Balance | $ 11,695 | |||
Capital contributions | $ 9,324 | $ 14,751 | ||
Capital contributions (in Units) | 934,278 | 1,475,814 | ||
Syndication costs | $ (1,397) | $ (2,213) | ||
Distributions to Other Members | (1,153) | (609) | ||
Net loss | $ (337) | $ (234) | ||
Ending Balance (in units) | 2,410,142 | 2,410,142 | 1,475,864 | |
Ending Balance | $ 18,132 | $ 18,132 | $ 11,695 | |
Managing Member [Member] | ||||
Beginning Balance (in units) | 50 | 50 | ||
Beginning Balance | 1 | $ 1 | $ 1 | |
Ending Balance | $ 1 | $ 1 | $ 1 |
Statements of Changes in Membe5
Statements of Changes in Members' Capital (Parenthetical) - $ / shares | 3 Months Ended | 8 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2017 | Dec. 31, 2016 | |
Statements of Changes in Members' Capital [Abstract] | |||||
Distributions to Other Members, per unit | $ 0.20 | $ 0.20 | $ 0.53 | $ 0.60 | $ 0.73 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Operating activities: | ||||
Net loss | $ (99) | $ (148) | $ (337) | $ (180) |
Adjustment to reconcile net loss to net cash provided by (used in) operating activities: | ||||
Accretion of note discount - warrants | (5) | (14) | ||
Depreciation of operating lease assets | 259 | 100 | 660 | 179 |
Amortization of initial direct costs | 16 | 8 | 42 | 18 |
Provision for credit losses | 12 | 21 | ||
Unrealized loss (gain) on fair value adjustment for warrants | 2 | (19) | 6 | (19) |
Changes in operating assets and liabilities: | ||||
Accounts receivable | (31) | 35 | 5 | (20) |
Prepaid expenses and other assets | 6 | 122 | (15) | (15) |
Accounts payable, Managing Member | 4 | (3) | (4) | 1 |
Accrued distributions to Other Members | (63) | |||
Accounts payable, other | 19 | (51) | 14 | 12 |
Accrued liabilities, affiliates | (94) | (107) | (12) | 72 |
Unearned operating lease income | 8 | 16 | (40) | 43 |
Net cash provided by (used in) operating activities | 34 | (47) | 326 | 91 |
Investing activities: | ||||
Purchases of equipment on operating leases | (24) | (740) | (3,291) | (4,424) |
Payments of initial direct costs | (32) | (39) | (113) | (136) |
Note receivable and warrants advances | (500) | (500) | ||
Principal payments received on notes receivable | 111 | 357 | ||
Net cash provided by (used in) investing activities | 55 | (1,279) | (3,047) | (5,060) |
Financing activities: | ||||
Syndication costs paid to Managing Member and affiliates | (478) | (660) | (1,397) | (1,775) |
Capital contributions | 3,197 | 4,398 | 9,324 | 11,835 |
Net cash provided by financing activities | 2,365 | 3,569 | 6,863 | 9,800 |
Net increase in cash and cash equivalents | 2,454 | 2,243 | 4,142 | 4,831 |
Cash at beginning of period | 5,118 | 2,589 | 3,430 | 1 |
Cash at end of period | 7,572 | 4,832 | 7,572 | 4,832 |
Supplemental Cash Flow Information [Abstract] | ||||
Cash paid during the year for taxes | 1 | 2 | ||
Other Members [Member] | ||||
Operating activities: | ||||
Net loss | (337) | |||
Financing activities: | ||||
Distributions to Members | (354) | (169) | (1,064) | (260) |
Schedule of non-cash investing and financing transactions: | ||||
Distributions payable to Members at period-end | $ 206 | $ 84 | $ 206 | $ 84 |
Organization and Limited Liabil
Organization and Limited Liability Company Matters | 9 Months Ended |
Sep. 30, 2017 | |
Organization and Limited Liability Company Matters [Abstract] | |
Organization and Limited Liability Company Matters | 1. Organization and Limited Liability Company matters: ATEL 17, LLC (the “Company” or the “Fund”) was formed under the laws of the state of California on April 16, 2015 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 the “Manager” ), a Nevada limited liability corporation. The Managing Member is controlled by ATEL Financial Services, LLC (“AFS”), a wholly-owned subsidiary of ATEL Capital Group (“ACG” or “ATEL”) . The Fund may continue until terminated as provided in the ATEL 17, LLC limited liability company operating agreement dated April 24, 2015 (the “Operating Agreement”). Contributions in the amount of $500 were received as of April 28, 2015, 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 of the Company was granted effectiveness by the Securities and Exchange Commission as of January 5, 2016 . The offering will continue until the earlier of a period of two years from that date or until sales of the limited liability company units ( Units ) to the public reach $150 million . As of February 2, 2016 , 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. Pennsylvania subscriptions are subject to a separate escrow and are released to the Fund only at such time as total subscription proceeds received by the Fund from all subscribers, including the escrowed Pennsylvania subscriptions, equal not less than $7.5 million in gross proceeds. Such level of gross proceeds was eclipsed on July 6, 2016. As of September 30, 2017, cumulative contributions totaling approximately $24 . 1 million have been received, inclusive of the $500 initial member’s capital investment. As of such date , a total of 2, 41 0, 142 Units were issued and outstanding . The Fund is actively raising capital and, as of October 31, 2017 , has received cumulative contributions in the amount of $2 4 . 3 million , inclusive of the $500 i nitial member’s capital investment. The Fund, or Managing Member on behalf of the Fund, has and will continue to incur costs in connection with the organization, registration and issuance of the Units. The amount of such costs to be borne by the Fund is limited by certain provisions of the Operating Agreement. The Company’s principal objectives are to invest in a diversified portfolio of investments that will generate a favorable overall return to investors and (i) preserve, protect and return the Fund ’s invested capital; (ii) generate regular cash distributions to Unit holders during the Offering Stage and Operating Stage of the Fund, with any balance remaining after required minimum distributions, equal to not less than 8% nor more than 10% per annum on investors’ Original Invested Capital, to be used to purchase additional investments during the first six years after the year the offering terminates ; and (iii) provide additional cash distributions during the Liquidating Stage, commencing with the end of the six year reinvestment period and continuing until all investment portfolio assets have b een sold or otherwise disposed. 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, 2016, filed with the Securities and Exchange Commission. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 are not necessarily indicative of the results to be expected for the full year. In preparing the accompanying financial statements, the Company has reviewed, as determined necessary by the Managing Member, events that have occurred after September 30, 2017, up until the issuance of the financial statements. No events were noted which would require disclosure in the footnotes to the financial statements, or adjustments thereto. Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data. 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 determination of the allowance for doubtful accounts and reserve for credit losses on notes receivable . 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. Accounts receivable Accounts receivable represent the amounts billed under operating and direct financing lease contracts, and 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 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. 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 lease or note payments outstanding less than 90 days. Based upon management’s judgment, such leases or notes may be placed in non-accrual status. Leases or 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. Until such time, revenues on operating leases are recognized on a cash basis. All payments received on amounts billed under direct financing leases and notes receivable are applied only against outstanding principal balances. Financing receivables In addition to the allowance established for delinquent accounts receivable, the total allowance related solely to financing receivables also includes anticipated impairment charges on notes receivable and direct financing leases. 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. The asset underlying a direct financing lease contract is considered impaired if the estimated undiscounted future cash flows of the asset are less than its net book value. The estimated undiscounted future cash flows are the sum of the estimated residual value of the asset at the end of the asset’s expected holding period and estimates of undiscounted future rents. 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 market place 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. Investment in securities: From time to time, the Company may purchase securities of its borrowers or receive warrants to purchase securities in connection with its lending arrangements. 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. During the respective three and nine months ended September 30 , 2017, the Company recorded unrealized losses of $ 2 thousand and $ 6 thousand on fair valuation of its warrants. The Company recorded $19 thousand of unrealized gain on the fair value adjustment of its warrants for both the three and nine months ended September 30, 2016. As of September 30 , 2017 and December 31, 2016, the estimated fair value of the Fund’s portfolio of warrants amounted to $4 5 thousand and $51 thousand, respectively. There have been no exercises of warrants, net or otherwise, during the three and nine months ended September 30 , 2017 and 2016 . Credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk include cash and cash equivalents, operating lease receivables, 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 Funds’ 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 receivab le represent amounts due from various industries, related to equipment on operating leases. Equipment on operating leases and related revenue recognition: Equipment subject to operating leases is stated at cost. Depreciation is being reco gnized on a straight-line basis 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 ASC 840-20-35-3, 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. Initial direct costs: The Company capitalizes initial direct costs (“IDC”) associated with the origination of lease assets . IDC includes both internal costs (e.g., the costs of employees’ activities in connection with successful lease originations) and external broker fees incurred with such originations. The costs are amortized on a lease by lease basis based on actual contract term using a straight-line method for operating leases. Upon disposal of the underlying lease assets, both the initial direct costs and the associated accumulated amortization are relieved. Costs related to leases that are not consummated are not eligible for capitalization as initial direct costs and are expensed as acquisition expense. Acquisition expense: Acquisition expense represents costs which include, but are not limited to, legal fees and expenses, travel and communication expenses, cost of appraisals, accounting fees and expenses and miscellaneous expenses related to the selection and acquisition of equipment which are reimbursable to the Managing Member under the terms of the Operating Agreement. As the costs are not eligible for capitalization as initial direct costs, such amounts are expensed as incurred. 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. Per Unit data: The Company issues only one class of Units, none of which are considered dilutive. Net loss and distributions per Unit are based upon the weighted average number of Other Members Units outstanding since commencement of its operations. Emerging growth company: Section 107 of the Jumpstart Our Business Startups Act (the “JOBS Act”) provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. However, we have chosen to “opt out” of such extended transition period and, as a result, we will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non- emerging growth companies. Section 107 of the JOBS Act provides that our decision to opt out of the extended transition period for complying with new or revised accounting standards is irrevocable. Recent accounting pronouncements: In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2016-15 — Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 addresses specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments in this Update are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. Management is currently evaluating the standard and its impact on operations and financial reporting. The adoption of ASU 2016-15 by the Company is not expected to have a material effect on its financial statements. In June 2016, the 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 February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842) (“ASU 2016-02”). The new standard will require lessees to recognize lease assets and lease liabilities arising from operating leases with lease terms greater than 12 months in the statement of financial position. Lessor accounting per ASU 2016-02 is mostly unchanged from the previous lease accounting GAAP. Certain changes were made to the lessor accounting guidance in order to align the lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. Similar to the previous guidance, lessors will classify leases as operating, direct financing, or sales-type. Lessors in operating leases will continue to recognize the underlying asset and recognize income on a straight-line basis. Lessors determine whether a lease is a sale of the underlying asset based on whether the lessee effectively obtains control of the underlying assets. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. While early adoption is permitted, the Company does not expect to elect that option. The Company expects to adopt the guidance in the first quarter 2019 using the modified retrospective method. Management is currently evaluating the impact of this standard on the financial statements and its operational and related disclosure requirements, including the impact on the Company’s current lease portfolio from a lessor perspective. Given the limited changes to lessor accounting, management does not expect material changes to recognition or measurement, but the Company is early in the implementation process and will continue to evaluate the impact. This adoption will primarily result in an increase in the assets and liabilities on the Company’s balance sheet. In January 2016, the FASB issued Accounting Standards Update 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). The new standard provides guidance related to accounting for equity investments and financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, and (v) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Management is currently evaluating the standard and its operational and related disclosure requirements. The Company’s implementation efforts include the identification of equity securities within the scope of the guidance, the evaluation of the measurement alternative available for equity securities without a readily determinable fair value, and the related impact to accounting policies, presentation and disclosures. In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. On July 9, 2015, the FASB approved the deferral of the effective date of ASU 2014-09 by one year and in August 2015, issued Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”). ASU 2015-14 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 31, 2016, including interim reporting periods within that reporting period. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company expects to adopt the Standards Update. A preliminary evaluation of the impact of such adoption on the financial statements of the Fund indicates that such impact is non-material as the new revenue guideline does not affect revenues from leases and loans, which comprise the majority of the Company’s revenues. Management expects that accounting policies will not materially change since the principles of revenue recognition from the standard are largely consistent with existing guidance and current practices applied by the Company . |
Notes Receivable, Net
Notes Receivable, Net | 9 Months Ended |
Sep. 30, 2017 | |
Note Receivable, Net [Abstract] | |
Notes Receivable, Net | 3. Notes receivable, net: The Company has various note s receivable s from borrower s who have financed the purchase of equipment through the Company. The term s of the note s receivable are 36 months and bear interest at rates ranging from 11.45% to 11.80% per annum. The note s are secured by the equipment financed . The notes mature from 2019 through 20 20 . There w ere neither impaired note s nor note s placed in non-accrual status as of September 30, 2017 and December 31, 2016 . As of September 30, 2017, the minimum future payments receivable are as follows (in thousands): Three months ending December 31, 2017 $ 146 Year ending December 31, 2018 584 2019 508 2020 50 1,288 Less: portion representing unearned interest income (147) 1,141 Less: warrants - notes receivable discount (39) Unamortized initial direct costs 3 Notes receivable, net $ 1,105 IDC (Initial Direct Cost) amortization expense related to notes receivable and the Company’s operating leases for the three and nine months ended September 30, 2017 and 2016 are as follows (in thousands) : Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 IDC amortization - notes receivable $ 1 $ - $ 2 $ - IDC amortization - lease assets 15 8 40 18 Total $ 16 $ 8 $ 42 $ 18 |
Allowance for Credit Losses
Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2017 | |
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): Accounts Receivable Allowance for Doubtful Accounts Operating Leases Balance December 31, 2016 $ - Provision of credit loss 21 Balance September 30, 2017 $ 21 The Company evaluates the credit quality of its financing receivables on a scale equivalent to the following quality indicators related to corporate risk profiles: Pass — Any account whose lessee/debtor, co-lessee/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 and leases as applicable. At September 30, 2017 and December 31, 2016, the Company’s financing receivables by credit quality indicator and by class of financing receivables are as follows (excludes initial direct costs) (in thousands): Notes Receivable September 30, 2017 December 31, 2016 Pass $ 1,141 $ 1,446 Special mention - - Substandard - - Doubtful - - Total $ 1,141 $ 1,446 At September 30, 2017 and December 31, 2016, investment in financing receivables is aged as follows (in thousands): September 30, 2017 31-60 Days Past Due 61-90 Days Past Due Greater Than 90 Days Total Past Due Current Total Financing Receivables Recorded Investment>90 Days and Accruing Notes receivable $ - $ - $ - $ - $ 1,141 $ 1,141 $ - Total $ - $ - $ - $ - $ 1,141 $ 1,141 $ - December 31, 2016 31-60 Days Past Due 61-90 Days Past Due Greater Than 90 Days Total Past Due Current Total Financing Receivables Recorded Investment>90 Days and Accruing Notes receivable $ - $ - $ - $ - $ 1,446 $ 1,446 $ - Total $ - $ - $ - $ - $ 1,446 $ 1,446 $ - The Company had no financing receivables on non-accrual or impaired status at September 30, 2017 and December 31, 2016. |
Investment in Equipment and Lea
Investment in Equipment and Leases, Net | 9 Months Ended |
Sep. 30, 2017 | |
Investments in Equipment and Leases, Net [Abstract] | |
Investments in Equipment and Leases, Net | 5 . Investment in equipment and leases, net: The Company’s investment in leases consists of the following (in thousands) : Balance Depreciation/ Balance December 31, Amortization September 30, 2016 Additions Expense 2017 Net investment in operating leases $ 6,766 $ 3,291 $ (660) $ 9,397 Initial direct costs, net of accumulated amortization of $67 at September 30, 2017 and $28 at December 31, 2016 167 114 (40) 241 Total $ 6,933 $ 3,405 $ (700) $ 9,638 Additions to net investment in operating lease assets are stated at cost. All of the Company’s leased property was acquired beginning in March 2016 through September 2017 . Impairment of investments in leases: 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, if any. 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. As a result of these reviews, management determined that no impairment losses existed during the three and nine months ended September 30, 2017 and 2016 . The Company utilizes a straight-line depreciation method for equipment in all of the categories currently in its portfolio of operating lease transactions. Depreciation expense on the Company’s equipment totaled $259 thousand and $100 thousand for the three months ended September 30 , 2017 and 2016, respectively , and $660 thousand and $179 thousand for the respective nine months ended September 30, 2017 and 2016 . IDC amortization expense related to the Company’s operating leases totaled $1 5 thousand and $ 8 thousand for the three months ended September 30, 2017 and 2016, and $ 40 thousand and $1 8 thousand for the nine months ended September 30, 2017 and 2016. Operating leases: Property on operating leases consists of the following (in thousands) : Balance Balance December 31, Reclassifications September 30, 2016 Additions or Dispositions 2017 Transportation, rail $ 1,956 $ 1,724 $ - $ 3,680 Paper processing 1,058 - - 1,058 Marine vessels 1,041 - - 1,041 Mining - 1,320 - 1,320 Containers 860 - - 860 Agriculture 742 - - 742 Materials handling 577 25 - 602 Aviation 462 - - 462 Construction 285 222 - 507 Transportation, other 96 - - 96 7,077 3,291 - 10,368 Less accumulated depreciation (311) (660) - (971) Total $ 6,766 $ 2,631 $ - $ 9,397 The average estimated residual value for assets on operating leases was 40% and 48% of the assets’ original cost at September 30, 2017 and December 31, 2016, respectively . There were no operating leases in non-accrual status at September 30, 2017 and December 31, 2016. At September 30, 2017 , the aggregate amounts of future minimum lease payments receivable are as follows (in thousands) : Operating Leases Three months ending December 31, 2017 $ 371 Year ending December 31, 2018 1,485 2019 1,465 2020 1,284 2021 799 2022 1,331 $ 6,735 The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of September 30, 2017 , 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 - 40 Marine vessel 20 - 30 Containers 15 - 20 Aviation 15 - 20 Mining 10 - 15 Paper processing 10 - 15 Agriculture 7 - 10 Construction 7 - 10 Materials handling 7 - 10 Transportation 7 - 10 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 6 . 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 acquisition and asset management services and to receive reimbursements for payments made on behalf of the Fund for certain operating expenses, which are more fully described in Section 8 of the Operating Agreement. 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 managed 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. Each of ATEL Leasing Corporation (“ALC”) and AFS is a wholly-owned subsidiary of ATEL Capital Group and perform services for the Company on behalf of the Managing Member . Acquisition services, equipment management, lease administration and asset disposition services are performed by ALC; and investor relations, communications services and general administrative services are performed by AFS. During its offering period, t he Fund will pay selling commissions of up to 9% of the selling price of the Units to ATEL Securities Corporation (‘‘ASC’’), an affiliate of the Managing Member acting as Dealer Manager for the group of selling broker-dealers. ASC will in turn pay to participating broker-dealers selling commissions of up to 7% of the price of the Units sold by them, retaining the balance of 2% . During the three and nine months ended September 30, 2017 and 2016 , the Managing Member and/or affiliates earned commissions and fees, and billed for reimbursements pursuant to the Operating Agreement as follows (in thousands) : For the Three Months Ended For the Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Selling commissions, equal to 9% of the selling price of the Limited Liability Company Units, deducted from Other Members capital $ 287 $ 396 $ 838 $ 1,065 Reimbursement of other syndication costs to Managing Member and/or affiliates, deducted from Other Members capital 191 264 559 710 Special discounts 6 - 19 Administrative costs reimbursed to Managing Member and/or affiliates 78 28 199 40 Asset management fees to Managing Member 37 14 95 22 Acquisition and initial direct costs paid to Managing Member 58 189 295 287 $ 657 $ 891 $ 2,005 $ 2,124 |
Syndication Costs
Syndication Costs | 9 Months Ended |
Sep. 30, 2017 | |
Syndication Costs [Abstract] | |
Syndication Costs | 7 . Syndication Costs: Syndication costs are reflected as a reduction to Members’ capital, as such costs are netted against the capital raised. The amount shown is primarily comprised of selling commissions, as well as fees pertaining to the organization of the Fund, document preparation, regulatory filing fees, and accounting and legal costs. Such costs relating to the comparative three and nine month periods ended September 30 , 2017 and 2016, are listed below. Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Administration and Other $ 191 $ 264 $ 559 $ 710 Selling Commissions 287 396 838 1,065 Total Syndication Costs $ 478 $ 660 $ 1,397 $ 1,775 The Operating Agreement places a limit for cost reimbursements to the Managing Member and/or affiliates. When added to selling commissions, such cost reimbursements may not exceed a total equal to 15% of all offering proceeds. As of September 30, 2017 , the Company had not recorded any syndication costs in excess of the limitation. The limitation on the amount of syndication costs pursuant to the Operating Agreement is determined on the date of termination of the offering. At such time, the Manager guarantees repayment of any excess syndication costs (above the limitation) which it may have collected from the Company , which guarantee is without recourse or reimbursement by the Fund. |
Special Discounts
Special Discounts | 9 Months Ended |
Sep. 30, 2017 | |
Special Discounts [Abstract] | |
Special Discounts | 8 . Special Discounts: The Fund will sell Units subject to volume discounts to investors who purchase more than $500 thousand of Units through the same broker dealer in this offering. In these instances the Fund will apply the reduced per unit price and appropriate scheduled sales commission, as detailed in the offering prospectus, to the entire purchase, not just the portion of the purchase price which exceeds the $500 thousand threshold. During the three and nine month periods ended September 30, 2017 volume discounts totaling $6 thousand and $1 9 thousand were granted, respectively. No volume discounts were granted in the comparative periods in 2016. These special discounts are reflected in the financial statements as a reduction to capital contributions in the Members’ Capital. |
Borrowing Facilities
Borrowing Facilities | 9 Months Ended |
Sep. 30, 2017 | |
Borrowing Facilities [Abstract] | |
Borrowing Facilities | 9 . Borrowing facilities: Effective June 30, 2017, the Company participated with ATEL Capital Group and certain subsidiaries and affiliated funds in a $75 million revolving credit facility (the “Credit Facility”) with a syndicate of financial institutions as lenders. The Credit Facility is comprised of a working capital facility, an acquisition facility (the “Acquisition Facility”) and a warehouse facility (the “Warehouse Facility”), the Company and affiliates, and a venture facility. As of September 30, 2017, the Credit Facility is for an amount of $75.0 million and has been extended to June 30 , 2019 . The lending syndicate providing the Credit Facility has a blanket lien on all of the Company's assets as collateral for any and all borrowings under the Acquisition Facility, and on a pro-rata basis under the Warehouse Facility. Such Credit Facility includes certain financial covenants. The interest rate on the Credit Facility is based on either the LIBOR/Eurocurrency rate of 1-, 2-, 3- or 6-month maturity plus a lender designated spread, or the bank's Prime rate, which re-prices daily. At September 30, 2017, approximately $72 million was available under the facility, and the Company had no outstanding borrowings under the facility. |
Commitments
Commitments | 9 Months Ended |
Sep. 30, 2017 | |
Commitments [Abstract] | |
Commitments | 10 . Commitments: At September 30, 2017, there were commitments to purchase lease assets and to fund investments in notes receivable totaling $ 2 . 0 million and $5 . 1 million, respectively. The amounts represent September 30, 2017 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, 2017 | |
Members' Capital [Abstract] | |
Members' Capital | 11 . Member s ’ Capital: T otal s of 2,410 , 142 and 1,475,864 Units were issued and outstanding as of September 30, 2017 and December 31, 2016 , respectively, including the 50 Units issued to the initial Member (Managing Member). The Fund is authorized to issue up to 15,000,000 Units in addition to the Units issued to the initial Member. Distributions to the Other Members for the three and nine months ended September 30, 2017 and for the th ree months and the period from February 2, 2016 (Date of Escrow) to September 30, 2016 were as follows (in thousands except Units and per Unit data) : Three Months Ended September 30, Nine Months Ended September 30, 2017 and For The Period From February 2, 2016 (Date of Escrow) Through September 30, 2016 2017 2016 2017 2016 Distributions $ 443 $ 191 $ 1,153 $ 344 Weighted average number of Units outstanding 2,213,264 955,719 1,924,222 644,277 Weighted average distributions per Unit $ 0.20 $ 0.20 $ 0.60 $ 0.53 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 12 . Fair value measurements: At September 30, 2017 and December 31, 2016 , only the Company’s warrants were measured on a recurring basis. As of the same dates, the Company had certain assets that required measurement at fair value on a non-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 stock pr ice(s), the exercise price(s), time to maturity, t he volatility of comparable venture companies, and a risk free interest rate for the term(s) of the warrant exercise(s). The calculated fair value of the Fund’s warrant portfolio was $4 5 thousand and $51 thousand at September 30, 2017 and December 31, 2016, respectively . Such valuation is classified within Level 3 of the valuation hierarchy. The following table reconciles the beginning and ending balances of the Com pany’s Level 3 recurring assets as of the three and nine months ended September 30, 2017 and 2016 as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Fair value of warrants at beginning of period $ 47 $ - $ 51 $ - Unrealized (loss) gain on fair valuation of warrants (2) 19 (6) 19 Fair value of warrants at end of period $ 45 $ 19 $ 45 $ 19 The following tables summarize the valuation techniques and significant unobservable inputs used for the Company’s recurring fair value calculation categorized as Level 3 in the fair value hierarchy at September 30, 2017 and December 31, 2016 : September 30, 2017 Valuation Valuation Unobservable Range of Name Frequency Technique Inputs Input Values Warrants Recurring Black-Scholes formulation Stock price $2.98 - $3.88 Exercise price $2.54 - $3.98 Time to maturity (in years) 8.88 - 14.20 Risk-free interest rate 2.27% - 2.46% Annualized volatility 39.01% - 42.46% December 31, 2016 Valuation Valuation Unobservable Range of Name Frequency Technique Inputs Input Values Warrants Recurring Black-Scholes formulation Stock price $2.54 - $2.98 Exercise price $2.54 - $3.98 Time to maturity (in years) 9.63 - 14.95 Risk-free interest rate 2.43% - 2.62% Annualized volatility 49.08% - 108.99% 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. 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 , 2017 and December 31, 2016 (in thousands): September 30, 2017 Carrying Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 7,572 $ 7,572 $ - $ - $ 7,572 Notes receivable, net 1,105 - - 1,105 1,105 Warrants, fair value 45 - - 45 45 December 31, 2016 Carrying Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 3,430 $ 3,430 $ - $ - $ 3,430 Notes receivable, net 1,451 - - 1,451 1,451 Warrants, fair value 51 - - 51 51 |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 are not necessarily indicative of the results to be expected for the full year. In preparing the accompanying financial statements, the Company has reviewed, as determined necessary by the Managing Member, events that have occurred after September 30, 2017, up until the issuance of the financial statements. No events were noted which would require disclosure in the footnotes to the financial statements, or adjustments thereto. Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data. |
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 determination of the allowance for doubtful accounts and reserve for credit losses on notes receivable . |
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. |
Accounts Receivable | Accounts receivable Accounts receivable represent the amounts billed under operating and direct financing lease contracts, and 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 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. 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 lease or note payments outstanding less than 90 days. Based upon management’s judgment, such leases or notes may be placed in non-accrual status. Leases or 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. Until such time, revenues on operating leases are recognized on a cash basis. All payments received on amounts billed under direct financing leases and notes receivable are applied only against outstanding principal balances. |
Financing Receivables | Financing receivables In addition to the allowance established for delinquent accounts receivable, the total allowance related solely to financing receivables also includes anticipated impairment charges on notes receivable and direct financing leases. 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. The asset underlying a direct financing lease contract is considered impaired if the estimated undiscounted future cash flows of the asset are less than its net book value. The estimated undiscounted future cash flows are the sum of the estimated residual value of the asset at the end of the asset’s expected holding period and estimates of undiscounted future rents. 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 market place 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. |
Investment in Securities | Investment in securities: From time to time, the Company may purchase securities of its borrowers or receive warrants to purchase securities in connection with its lending arrangements. 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. During the respective three and nine months ended September 30 , 2017, the Company recorded unrealized losses of $ 2 thousand and $ 6 thousand on fair valuation of its warrants. The Company recorded $19 thousand of unrealized gain on the fair value adjustment of its warrants for both the three and nine months ended September 30, 2016. As of September 30 , 2017 and December 31, 2016, the estimated fair value of the Fund’s portfolio of warrants amounted to $4 5 thousand and $51 thousand, respectively. There have been no exercises of warrants, net or otherwise, during the three and nine months ended September 30 , 2017 and 2016 . |
Credit Risk | Credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk include cash and cash equivalents, operating lease receivables, 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 Funds’ 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 receivab le represent amounts due from various industries, related to equipment on operating leases. |
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 reco gnized on a straight-line basis 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 ASC 840-20-35-3, 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. |
Initial Direct Costs | Initial direct costs: The Company capitalizes initial direct costs (“IDC”) associated with the origination of lease assets . IDC includes both internal costs (e.g., the costs of employees’ activities in connection with successful lease originations) and external broker fees incurred with such originations. The costs are amortized on a lease by lease basis based on actual contract term using a straight-line method for operating leases. Upon disposal of the underlying lease assets, both the initial direct costs and the associated accumulated amortization are relieved. Costs related to leases that are not consummated are not eligible for capitalization as initial direct costs and are expensed as acquisition expense. |
Acquisition Expense | Acquisition expense: Acquisition expense represents costs which include, but are not limited to, legal fees and expenses, travel and communication expenses, cost of appraisals, accounting fees and expenses and miscellaneous expenses related to the selection and acquisition of equipment which are reimbursable to the Managing Member under the terms of the Operating Agreement. As the costs are not eligible for capitalization as initial direct costs, such amounts are expensed as incurred. |
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. |
Per Unit Data | Per Unit data: The Company issues only one class of Units, none of which are considered dilutive. Net loss and distributions per Unit are based upon the weighted average number of Other Members Units outstanding since commencement of its operations. |
Emerging Growth Company | Emerging growth company: Section 107 of the Jumpstart Our Business Startups Act (the “JOBS Act”) provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. However, we have chosen to “opt out” of such extended transition period and, as a result, we will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non- emerging growth companies. Section 107 of the JOBS Act provides that our decision to opt out of the extended transition period for complying with new or revised accounting standards is irrevocable. |
Recent Accounting Pronouncements | Recent accounting pronouncements: In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2016-15 — Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 addresses specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments in this Update are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. Management is currently evaluating the standard and its impact on operations and financial reporting. The adoption of ASU 2016-15 by the Company is not expected to have a material effect on its financial statements. In June 2016, the 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 February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842) (“ASU 2016-02”). The new standard will require lessees to recognize lease assets and lease liabilities arising from operating leases with lease terms greater than 12 months in the statement of financial position. Lessor accounting per ASU 2016-02 is mostly unchanged from the previous lease accounting GAAP. Certain changes were made to the lessor accounting guidance in order to align the lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. Similar to the previous guidance, lessors will classify leases as operating, direct financing, or sales-type. Lessors in operating leases will continue to recognize the underlying asset and recognize income on a straight-line basis. Lessors determine whether a lease is a sale of the underlying asset based on whether the lessee effectively obtains control of the underlying assets. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. While early adoption is permitted, the Company does not expect to elect that option. The Company expects to adopt the guidance in the first quarter 2019 using the modified retrospective method. Management is currently evaluating the impact of this standard on the financial statements and its operational and related disclosure requirements, including the impact on the Company’s current lease portfolio from a lessor perspective. Given the limited changes to lessor accounting, management does not expect material changes to recognition or measurement, but the Company is early in the implementation process and will continue to evaluate the impact. This adoption will primarily result in an increase in the assets and liabilities on the Company’s balance sheet. In January 2016, the FASB issued Accounting Standards Update 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). The new standard provides guidance related to accounting for equity investments and financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, and (v) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Management is currently evaluating the standard and its operational and related disclosure requirements. The Company’s implementation efforts include the identification of equity securities within the scope of the guidance, the evaluation of the measurement alternative available for equity securities without a readily determinable fair value, and the related impact to accounting policies, presentation and disclosures. In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. On July 9, 2015, the FASB approved the deferral of the effective date of ASU 2014-09 by one year and in August 2015, issued Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”). ASU 2015-14 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 31, 2016, including interim reporting periods within that reporting period. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company expects to adopt the Standards Update. A preliminary evaluation of the impact of such adoption on the financial statements of the Fund indicates that such impact is non-material as the new revenue guideline does not affect revenues from leases and loans, which comprise the majority of the Company’s revenues. Management expects that accounting policies will not materially change since the principles of revenue recognition from the standard are largely consistent with existing guidance and current practices applied by the Company . |
Notes Receivable, Net (Tables)
Notes Receivable, Net (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Note Receivable, Net [Abstract] | |
Minimum Future Payments Receivable | As of September 30, 2017, the minimum future payments receivable are as follows (in thousands): Three months ending December 31, 2017 $ 146 Year ending December 31, 2018 584 2019 508 2020 50 1,288 Less: portion representing unearned interest income (147) 1,141 Less: warrants - notes receivable discount (39) Unamortized initial direct costs 3 Notes receivable, net $ 1,105 |
Initial Direct Costs, Amortization Expense Related to Notes Receivable and Company's Operating and Direct Finance Leases | IDC (Initial Direct Cost) amortization expense related to notes receivable and the Company’s operating leases for the three and nine months ended September 30, 2017 and 2016 are as follows (in thousands) : Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 IDC amortization - notes receivable $ 1 $ - $ 2 $ - IDC amortization - lease assets 15 8 40 18 Total $ 16 $ 8 $ 42 $ 18 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Allowance for Credit Losses [Abstract] | |
Activity in Allowance for Doubtful Accounts and Credit Losses | The Company’s allowance for credit losses are as follows (in thousands): Accounts Receivable Allowance for Doubtful Accounts Operating Leases Balance December 31, 2016 $ - Provision of credit loss 21 Balance September 30, 2017 $ 21 |
Financing Receivables by Credit Quality Indicator and by Class | At September 30, 2017 and December 31, 2016, the Company’s financing receivables by credit quality indicator and by class of financing receivables are as follows (excludes initial direct costs) (in thousands): Notes Receivable September 30, 2017 December 31, 2016 Pass $ 1,141 $ 1,446 Special mention - - Substandard - - Doubtful - - Total $ 1,141 $ 1,446 |
Net Investment in Financing Receivables by Age | At September 30, 2017 and December 31, 2016, investment in financing receivables is aged as follows (in thousands): September 30, 2017 31-60 Days Past Due 61-90 Days Past Due Greater Than 90 Days Total Past Due Current Total Financing Receivables Recorded Investment>90 Days and Accruing Notes receivable $ - $ - $ - $ - $ 1,141 $ 1,141 $ - Total $ - $ - $ - $ - $ 1,141 $ 1,141 $ - December 31, 2016 31-60 Days Past Due 61-90 Days Past Due Greater Than 90 Days Total Past Due Current Total Financing Receivables Recorded Investment>90 Days and Accruing Notes receivable $ - $ - $ - $ - $ 1,446 $ 1,446 $ - Total $ - $ - $ - $ - $ 1,446 $ 1,446 $ - |
Investment in Equipment and L22
Investment in Equipment and Leases, Net (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investments in Equipment and Leases, Net [Abstract] | |
Investment in Leases | The Company’s investment in leases consists of the following (in thousands) : Balance Depreciation/ Balance December 31, Amortization September 30, 2016 Additions Expense 2017 Net investment in operating leases $ 6,766 $ 3,291 $ (660) $ 9,397 Initial direct costs, net of accumulated amortization of $67 at September 30, 2017 and $28 at December 31, 2016 167 114 (40) 241 Total $ 6,933 $ 3,405 $ (700) $ 9,638 |
Property on Operating Leases | Property on operating leases consists of the following (in thousands) : Balance Balance December 31, Reclassifications September 30, 2016 Additions or Dispositions 2017 Transportation, rail $ 1,956 $ 1,724 $ - $ 3,680 Paper processing 1,058 - - 1,058 Marine vessels 1,041 - - 1,041 Mining - 1,320 - 1,320 Containers 860 - - 860 Agriculture 742 - - 742 Materials handling 577 25 - 602 Aviation 462 - - 462 Construction 285 222 - 507 Transportation, other 96 - - 96 7,077 3,291 - 10,368 Less accumulated depreciation (311) (660) - (971) Total $ 6,766 $ 2,631 $ - $ 9,397 |
Future Minimum Lease Payments Receivable | At September 30, 2017 , the aggregate amounts of future minimum lease payments receivable are as follows (in thousands) : Operating Leases Three months ending December 31, 2017 $ 371 Year ending December 31, 2018 1,485 2019 1,465 2020 1,284 2021 799 2022 1,331 $ 6,735 |
Schedule of Useful Lives of Assets | As of September 30, 2017 , 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 - 40 Marine vessel 20 - 30 Containers 15 - 20 Aviation 15 - 20 Mining 10 - 15 Paper processing 10 - 15 Agriculture 7 - 10 Construction 7 - 10 Materials handling 7 - 10 Transportation 7 - 10 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Managing Members and/or Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement | During the three and nine months ended September 30, 2017 and 2016 , the Managing Member and/or affiliates earned commissions and fees, and billed for reimbursements pursuant to the Operating Agreement as follows (in thousands) : For the Three Months Ended For the Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Selling commissions, equal to 9% of the selling price of the Limited Liability Company Units, deducted from Other Members capital $ 287 $ 396 $ 838 $ 1,065 Reimbursement of other syndication costs to Managing Member and/or affiliates, deducted from Other Members capital 191 264 559 710 Special discounts 6 - 19 Administrative costs reimbursed to Managing Member and/or affiliates 78 28 199 40 Asset management fees to Managing Member 37 14 95 22 Acquisition and initial direct costs paid to Managing Member 58 189 295 287 $ 657 $ 891 $ 2,005 $ 2,124 |
Syndication Costs (Tables)
Syndication Costs (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Syndication Costs [Abstract] | |
Schedule of Syndication Costs | The amount shown is primarily comprised of selling commissions, as well as fees pertaining to the organization of the Fund, document preparation, regulatory filing fees, and accounting and legal costs. Such costs relating to the comparative three and nine month periods ended September 30 , 2017 and 2016, are listed below. Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Administration and Other $ 191 $ 264 $ 559 $ 710 Selling Commissions 287 396 838 1,065 Total Syndication Costs $ 478 $ 660 $ 1,397 $ 1,775 |
Members' Capital (Tables)
Members' Capital (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Members' Capital [Abstract] | |
Distributions to Other Members | Distributions to the Other Members for the three and nine months ended September 30, 2017 and for the th ree months and the period from February 2, 2016 (Date of Escrow) to September 30, 2016 were as follows (in thousands except Units and per Unit data) : Three Months Ended September 30, Nine Months Ended September 30, 2017 and For The Period From February 2, 2016 (Date of Escrow) Through September 30, 2016 2017 2016 2017 2016 Distributions $ 443 $ 191 $ 1,153 $ 344 Weighted average number of Units outstanding 2,213,264 955,719 1,924,222 644,277 Weighted average distributions per Unit $ 0.20 $ 0.20 $ 0.60 $ 0.53 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Measurements [Abstract] | |
Fair Value of Warrants that were Accounted for on a Recurring Basis Classified as Level 3 Assets | The following table reconciles the beginning and ending balances of the Com pany’s Level 3 recurring assets as of the three and nine months ended September 30, 2017 and 2016 as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Fair value of warrants at beginning of period $ 47 $ - $ 51 $ - Unrealized (loss) gain on fair valuation of warrants (2) 19 (6) 19 Fair value of warrants at end of period $ 45 $ 19 $ 45 $ 19 |
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 fair value calculation categorized as Level 3 in the fair value hierarchy at September 30, 2017 and December 31, 2016 : September 30, 2017 Valuation Valuation Unobservable Range of Name Frequency Technique Inputs Input Values Warrants Recurring Black-Scholes formulation Stock price $2.98 - $3.88 Exercise price $2.54 - $3.98 Time to maturity (in years) 8.88 - 14.20 Risk-free interest rate 2.27% - 2.46% Annualized volatility 39.01% - 42.46% December 31, 2016 Valuation Valuation Unobservable Range of Name Frequency Technique Inputs Input Values Warrants Recurring Black-Scholes formulation Stock price $2.54 - $2.98 Exercise price $2.54 - $3.98 Time to maturity (in years) 9.63 - 14.95 Risk-free interest rate 2.43% - 2.62% Annualized volatility 49.08% - 108.99% |
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 , 2017 and December 31, 2016 (in thousands): September 30, 2017 Carrying Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 7,572 $ 7,572 $ - $ - $ 7,572 Notes receivable, net 1,105 - - 1,105 1,105 Warrants, fair value 45 - - 45 45 December 31, 2016 Carrying Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 3,430 $ 3,430 $ - $ - $ 3,430 Notes receivable, net 1,451 - - 1,451 1,451 Warrants, fair value 51 - - 51 51 |
Organization and Limited Liab27
Organization and Limited Liability Company Matters (Narrative) (Details) - USD ($) | 9 Months Ended | 29 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2017 | Oct. 31, 2017 | Dec. 31, 2016 | Feb. 02, 2016 | Apr. 28, 2015 | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||||
Contributions of capital, initial | $ 500 | |||||
Initial offering expiration period | 2 years | |||||
Limited liability company, minimum required proceeds from initial offering | $ 150,000,000 | |||||
Sale of limited liability Company Units, number of Units | 120,000 | |||||
Proceeds from sale of Limited Liability Company Units | $ 24,100,000 | $ 24,100,000 | $ 1,200,000 | |||
Members capital account, Units issued | 2,410,142 | 2,410,142 | 1,475,864 | |||
Members capital account, Units outstanding | 2,410,142 | 2,410,142 | 1,475,864 | |||
Subsequent Event [Member] | ||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||||
Proceeds from sale of Limited Liability Company Units | $ 24,300,000 | |||||
Minimum [Member] | ||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||||
Amount of aggregate subscriptions for Pennsylvania subscriptions to be released to the Fund | $ 7,500,000 | |||||
Percentage of distributions on original invested capital | 8.00% | |||||
Maximum [Member] | ||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||||
Percentage of distributions on original invested capital | 10.00% |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Narrative) (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)segment | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Summary of Significant Accounting Policies [Line Items] | |||||
Unrealized (loss) gain on fair valuation of warrants | $ (2,000) | $ 19,000 | $ (6,000) | $ 19,000 | |
Warrants, fair value | 45,000 | $ 45,000 | $ 51,000 | ||
Number of operating segments | segment | 1 | ||||
Number of reportable segments | segment | 1 | ||||
Revenues [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Percentage of concentration risk from customers domiciled in North America | 100.00% | ||||
Minimum [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Required assets value of financial institutions for cash deposits | $ 10,000,000,000 | ||||
Operating leases, initial terms | 36 months | ||||
Accounts receivable, period for non-accrual status | 90 days | ||||
Operating leases, Period for non-accrual status | 90 days | ||||
Maximum [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Cash deposits, insured amount | $ 250,000 | $ 250,000 | |||
Operating leases, initial terms | 120 months | ||||
Accounts receivable, period for review of impairment | 90 days | ||||
Equipment and lessee period of review for impairment | 90 days |
Notes Receivable, Net (Narrativ
Notes Receivable, Net (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2017 | |
Notes receivable term | 36 months |
Notes receivable, maturity date description | The notes mature from 2019 through 2020 |
Minimum [Member] | |
Notes receivable interest rate | 11.45% |
Maximum [Member] | |
Notes receivable interest rate | 11.80% |
Notes Receivable, Net (Minimum
Notes Receivable, Net (Minimum Future Payments Receivable) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Note Receivable, Net [Abstract] | ||
Three months ending December 31, 2017 | $ 146 | |
Year ending December 31, 2018 | 584 | |
2,019 | 508 | |
2,020 | 50 | |
Financing receivable, gross | 1,288 | |
Less: portion representing unearned interest income | (147) | |
Less: warrants - notes receivable discount | (39) | |
Notes receivable | 1,141 | $ 1,446 |
Unamortized initial direct cost | 3 | |
Notes receivable, net | $ 1,105 | $ 1,451 |
Notes Receivable, Net (Initial
Notes Receivable, Net (Initial Direct Costs, Amortization Expense Related to Notes Receivable and Company's Operating and Direct Finance Leases) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amortization of initial direct costs | $ 16 | $ 8 | $ 42 | $ 18 |
Lease Assets [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amortization of initial direct costs | 15 | $ 8 | 40 | $ 18 |
Notes Receivable [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amortization of initial direct costs | $ 1 | $ 2 |
Allowance for Credit Losses (Ac
Allowance for Credit Losses (Activity in Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Note Receivable, Net [Abstract] | ||
Beginning Balance | ||
Provision for credit losses | $ 12 | 21 |
Ending Balance | $ 21 | $ 21 |
Allowance for Credit Losses (Fi
Allowance for Credit Losses (Financing Receivables by Credit Quality Indicator and by Class) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Notes Receivable | $ 1,141 | $ 1,446 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Notes Receivable | $ 1,141 | $ 1,446 |
Allowance for Credit Losses (Ne
Allowance for Credit Losses (Net Investment in Financing Receivables by Age) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Current | 1,141 | 1,446 |
Total Financing Receivables | 1,141 | 1,446 |
Recorded Investment > 90 Days and Accruing | ||
31-60 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
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 | ||
Notes Receivable [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Current | 1,141 | 1,446 |
Total Financing Receivables | 1,141 | 1,446 |
Recorded Investment > 90 Days and Accruing | ||
Notes Receivable [Member] | 31-60 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Notes Receivable [Member] | 61-90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Notes Receivable [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due |
Investment in Equipment and L35
Investment in Equipment and Leases, Net (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Property Subject to or Available for Operating Lease [Line Items] | |||||
Amortization of initial direct costs | $ 16 | $ 8 | $ 42 | $ 18 | |
Depreciation of operating lease assets | $ 259 | 100 | $ 660 | 179 | |
Average estimated residual value of assets on operating leases | 40.00% | 40.00% | 48.00% | ||
Asset impairment losses | $ 0 | 0 | $ 0 | 0 | |
Lease Assets [Member] | |||||
Property Subject to or Available for Operating Lease [Line Items] | |||||
Amortization of initial direct costs | $ 15 | $ 8 | 40 | 18 | |
Depreciation of operating lease assets | $ 660 | $ 179 |
Investment in Equipment and L36
Investment in Equipment and Leases, Net (Investment in Leases) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Property Subject to or Available for Operating Lease [Line Items] | ||
Balance December 31, 2016 | $ 6,933 | |
Additions | 3,405 | |
Depreciation/ Amortization Expense | (700) | |
Balance September 30, 2017 | 9,638 | |
Initial direct costs, accumulated amortization | 67 | $ 28 |
Initial Direct Cost [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Balance December 31, 2016 | 167 | |
Additions | 114 | |
Depreciation/ Amortization Expense | (40) | |
Balance September 30, 2017 | 241 | |
Operating Leases [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Balance December 31, 2016 | 6,766 | |
Additions | 3,291 | |
Depreciation/ Amortization Expense | (660) | |
Balance September 30, 2017 | $ 9,397 |
Investment in Equipment and L37
Investment in Equipment and Leases, Net (Property on Operating Leases) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | $ 10,368 | $ 7,077 |
Less accumulated depreciation | (971) | (311) |
Property on operating leases, net | 9,397 | 6,766 |
Additions, gross | 3,291 | |
Additions, less accumulated depreciation | (660) | |
Additions, net | 2,631 | |
Transportation, Rail [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 3,680 | 1,956 |
Additions, gross | 1,724 | |
Paper Processing [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 1,058 | 1,058 |
Marine Vessel [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 1,041 | 1,041 |
Mining [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 1,320 | |
Additions, gross | 1,320 | |
Containers [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 860 | 860 |
Agriculture [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 742 | 742 |
Materials Handling [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 602 | 577 |
Additions, gross | 25 | |
Aviation [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 462 | 462 |
Construction [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 507 | 285 |
Additions, gross | 222 | |
Transportation [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | $ 96 | $ 96 |
Investment in Equipment and L38
Investment in Equipment and Leases, Net (Future Minimum Lease Payments Receivable) (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Operating Leases | |
Three months ending December 31, 2017 | $ 371 |
Year ending December 31, 2018 | 1,485 |
2,019 | 1,465 |
2,020 | 1,284 |
2,021 | 799 |
2,022 | 1,331 |
Operating leases, total | $ 6,735 |
Investment in Equipment and L39
Investment in Equipment and Leases, Net (Schedule of Useful Lives of Lease Assets) (Details) | 9 Months Ended |
Sep. 30, 2017 | |
Transportation, Rail [Member] | Minimum [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 35 years |
Transportation, Rail [Member] | Maximum [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 40 years |
Marine Vessel [Member] | Minimum [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 20 years |
Marine Vessel [Member] | Maximum [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 30 years |
Containers [Member] | Minimum [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 15 years |
Containers [Member] | Maximum [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 20 years |
Aviation [Member] | Minimum [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 15 years |
Aviation [Member] | Maximum [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 20 years |
Mining [Member] | Minimum [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 10 years |
Mining [Member] | Maximum [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 15 years |
Paper Processing [Member] | Minimum [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 10 years |
Paper Processing [Member] | Maximum [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 15 years |
Construction [Member] | Minimum [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 7 years |
Construction [Member] | Maximum [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 10 years |
Materials Handling [Member] | Minimum [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 7 years |
Materials Handling [Member] | Maximum [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 10 years |
Agriculture [Member] | Minimum [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 7 years |
Agriculture [Member] | Maximum [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 10 years |
Transportation [Member] | Minimum [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 7 years |
Transportation [Member] | Maximum [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 10 years |
Related Party Transactions (Aff
Related Party Transactions (Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Related Party Transaction [Line Items] | ||||
Selling commissions, equal to 9% of the selling price of the Limited Liability Company Units, deducted from Other Members capital | $ 287 | $ 396 | $ 838 | $ 1,065 |
Reimbursement of other syndication costs to Managing Member and/or affiliates, deducted from Other Members capital | 191 | 264 | 559 | 710 |
Special discounts | 6 | 19 | ||
Administrative costs reimbursed to Managing Member and/or affiliates | 78 | 28 | 199 | 40 |
Asset management fees to Managing Member | 37 | 14 | 95 | 22 |
Acquisition and initial direct costs paid to Managing Member | 58 | 189 | 295 | 287 |
Related party transaction, total | $ 657 | $ 891 | $ 2,005 | $ 2,124 |
Selling commission rate | 9.00% | 9.00% | 9.00% | 9.00% |
Atel Securities Corporation [Member] | ||||
Related Party Transaction [Line Items] | ||||
Selling commission rate | 2.00% | |||
Broker-Dealers [Member] | ||||
Related Party Transaction [Line Items] | ||||
Selling commission rate | 7.00% |
Syndication Costs (Narrative) (
Syndication Costs (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2017 | |
Syndication Costs [Abstract] | |
Percentage of offering proceeds, limit on reimbursements to Managing Members and/or affiliates | 15.00% |
Syndication Costs (Schedule of
Syndication Costs (Schedule of Syndication Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Syndication costs | $ 478 | $ 660 | $ 1,397 | $ 1,775 |
Administration and Other [Member] | ||||
Syndication costs | 191 | 264 | 559 | 710 |
Selling Commissions [Member] | ||||
Syndication costs | $ 287 | $ 396 | $ 838 | $ 1,065 |
Special Discounts (Narrative) (
Special Discounts (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Special Discounts [Abstract] | ||
Special volume discount to investors, qualifying threshold amount | $ 500 | |
Special volume discounts to investors | $ 6 | $ 19 |
Borrowing Facilities (Narrative
Borrowing Facilities (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Line of Credit Facility [Line Items] | ||
Maximum amount of Credit Facility | $ 75 | |
Line of Credit Facility, expiration date | Jun. 30, 2019 | |
Credit facility, Interest rate description | The interest rate on the Credit Facility is based on either the LIBOR/Eurocurrency rate of 1-, 2-, 3- or 6-month maturity plus a lender designated spread, or the bank's Prime rate, which re-prices daily. | |
Warehouse Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum amount of Credit Facility | $ 72 | |
Outstanding borrowings under the facility | $ 0 | $ 0 |
Commitments (Narrative) (Detail
Commitments (Narrative) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Commitments [Abstract] | |
Commitments to purchase lease assets | $ 2 |
Commitments to fund investments in notes receivable | $ 5.1 |
Members' Capital (Narrative) (D
Members' Capital (Narrative) (Details) - shares | Sep. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Members Capital Account [Line Items] | |||
Members capital account, Units issued | 2,410,142 | 1,475,864 | |
Members capital account, Units outstanding | 2,410,142 | 1,475,864 | |
Members capital account, units authorized | 15,000,000 | 15,000,000 | |
Other Members [Member] | |||
Members Capital Account [Line Items] | |||
Members capital account, Units outstanding | 2,410,142 | 1,475,864 | |
Managing Member [Member] | |||
Members Capital Account [Line Items] | |||
Members capital account, Units issued | 50 | 50 | |
Members capital account, Units outstanding | 50 |
Members' Capital (Distributions
Members' Capital (Distributions to Other Members) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 8 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Members' Capital [Abstract] | ||||||
Distributions declared | $ 443 | $ 191 | $ 344 | $ 1,153 | $ 609 | |
Weighted average number of Units outstanding | 2,213,264 | 955,719 | 644,277 | 1,924,222 | 569,033 | |
Weighted average distributions per Unit | $ 0.20 | $ 0.20 | $ 0.53 | $ 0.60 | $ 0.73 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value Measurements [Abstract] | ||
Warrants, fair value | $ 45 | $ 51 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value of Warrants that Were Accounted for on a Recurring Basis ) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Unrealized (loss) gain on fair valuation of warrants | $ (2) | $ 19 | $ (6) | $ 19 |
Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of warrants at beginning of period | 47 | 51 | ||
Unrealized (loss) gain on fair valuation of warrants | (2) | 19 | (6) | 19 |
Fair value of warrants at end of period | $ 45 | $ 19 | $ 45 | $ 19 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary of Valuation Techniques and Significant Unobservable Inputs) (Details) - Fair Value, Inputs, Level 3 [Member] - Recurring [Member] - Black Scholes Model [Member] - Warrant [Member] - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Minimum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Stock price | $ 2.98 | $ 2.54 |
Exercise price | $ 2.54 | $ 2.54 |
Time to maturity (in years) | 8 years 10 months 17 days | 9 years 7 months 17 days |
Risk-free interest rate | 2.27% | 2.43% |
Annualized volatility | 39.01% | 49.08% |
Maximum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Stock price | $ 3.88 | $ 2.98 |
Exercise price | $ 3.98 | $ 3.98 |
Time to maturity (in years) | 14 years 2 months 12 days | 14 years 11 months 12 days |
Risk-free interest rate | 2.46% | 2.62% |
Annualized volatility | 42.46% | 108.99% |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Financial assets: | ||
Fair value of warrants | $ 45 | $ 51 |
Carrying Amount [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 7,572 | 3,430 |
Notes receivable, net | 1,105 | 1,451 |
Fair value of warrants | 45 | 51 |
Estimated Fair Value [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 7,572 | 3,430 |
Notes receivable, net | 1,105 | 1,451 |
Fair value of warrants | 45 | 51 |
Fair Value, Inputs, Level 1 [Member] | Estimated Fair Value [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 7,572 | 3,430 |
Fair Value, Inputs, Level 3 [Member] | Estimated Fair Value [Member] | ||
Financial assets: | ||
Notes receivable, net | 1,105 | 1,451 |
Fair value of warrants | $ 45 | $ 51 |