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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-K

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x

☒              Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

For the year ended December 31, 2023

☐         Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

For the transition period from        to

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Annual Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934.

For the year ended December 31, 2017

oTransition Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934.

For the transition period from to

Commission File number 333-203841

ATEL 17, LLC

(Exact name of registrant as specified in its charter)

California

90-1108275

California

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90-1108275

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(State or other jurisdiction of

incorporation or organization)

(I. R. S. Employer

Identification No.)

The Transamerica Pyramid, 600

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505 Montgomery Street, 9th Floor, 7th, , San Francisco, California94111

(Address of principal executive offices)

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Registrant’s telephone number, including area code:(415) (415) 989-8800

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Securities registered pursuant to section 12(b) of the Act:None

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Securities registered pursuant to section 12(g) of the Act:Limited Liability Company UnitsNone

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:

Trading Symbol

Name of each exchange on which registered:

N/A

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N/A

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N/A

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Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.YesoAct. Yes ☐ Nox☒

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Act of 1934.Yeso1934. Yes ☐ Nox☒

Indicate by a check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.Yesxdays. Yes ☒ Noo☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).Yesx. Yes ☒ Noo☐

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.x☒

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filero☐

Accelerated filero☐

Non-accelerated filero
☒

Smaller reporting companyx☒

Emerging growth companyx☐

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(Do not check if a smaller reporting company)

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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.o☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yeso☐ Nox☒

State the aggregate market value of voting stock held by non-affiliates of the registrant: Not applicable

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was sold, or the average bid and asked price of such common equity, as of a specified date within the past 60 days. (See definition of affiliate in Rule 12b-2 of the Exchange Act.) Not applicable

The number of Limited Liability Company Units outstanding as of February 28, 201829, 2024 was 2,565,749.

DOCUMENTS INCORPORATED BY REFERENCE

None.

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TABLE OF CONTENTS

PART I

Item 1. BUSINESS

General Development of Business

ATEL 17, LLC (the “Company” or the “Fund”) was formed under the laws of the state of California on April 16, 2015 (“Date of Inception”) for the purpose of equipment financing and acquiring equipment to engage in equipment leasing and sales activities. The Managing Member of the Company is ATEL Managing Member, LLC (the “Managing Member” or “Manager”), a Nevada limited liability company. The Managing Member is controlled by ATEL Financial Services, LLC (“AFS”), a wholly-owned subsidiary of ATEL Capital Group. The Fund may continue 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 and continued in its development stage activities until transitioning to an operating enterprise during the first quarter of 2016. Pennsylvania subscriptions are subject to a separate escrow and are released to the Fund only when aggregate subscriptions for all investors equal to at least $7.5 million. Total contributions to the Fund exceeded $7.5 million on July 6, 2016, at which time a request was processed to release the Pennsylvania escrowed amounts. The offering will terminate not later thanterminated on January 5, 2018.

As of December 31, 2017,2023, cumulative gross contributions less rescissions and repurchases (net of distributions paid and allocated syndication costs, as applicable) totaling $25.5$25.7 million (inclusive of the $500 initial Member’s capital investment) have been received. As of the same date, 2,551,7492,565,749 Units were issued and outstanding.

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 been sold or otherwise disposed.

Pursuant to the terms of the Operating Agreement, the Managing Member and/or its affiliates receives compensation for services rendered and reimbursements for costs incurred on behalf of the Company. (See Note 7,6, Related party transactions, as set forth in Part II, Item 8, Financial Statements and Supplementary Data.) The Company is required to maintain reasonable cash reserves for working capital, for the repurchase of Units and for contingencies. The repurchase of Units is solely at the discretion of the Managing Member.

Narrative Description of Business

The Company has acquired and intends to acquire various types of new and used equipment subject to leases and to make loans secured by equipment acquired by its borrowers. The Company’s primary investment objective is to acquire investments primarily in low-technology, low-obsolescence capital equipment such as the core operating equipment used by companies in the manufacturing, mining and transportation industries. A portion of the portfolio will include some more technology-dependent equipment such as certain types of communications equipment, medical equipment, manufacturing equipment and office equipment.

1

The Company only purchases equipment under pre-existing leases or for which a lease will be entered into concurrently at the time of the purchase. Through December 31, 2017,2023 the Company has purchased equipment with a total acquisition price of $11.2$16.7 million. The Company has also funded investments in notes receivable totaling $2.6$6.2 million through December 31, 2017.2023.

As of the date of the final commitment of its proceeds from the sale of Units, the Company’s objective is to have at least 75% of its investment portfolio (by cost) consist of equipment leased to lessees that the Manager deems to be

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TABLE OF CONTENTS

high quality corporate credits and/or leases guaranteed by such high quality corporate credits. High quality corporate credits are lessees or guarantors who have a credit rating by Moody’s Investors Service, Inc. of “Baa3” or better, or the credit equivalent as determined by the Manager, or are public and private corporations with substantial revenues and histories of profitable operations, as well as established hospitals with histories of profitability or municipalities. The remaining 25% of the initial investment portfolio may include equipment lease transactions and other debt or equity financing for companies which, although deemed creditworthy by the Manager, would not satisfy the specific credit criteria for the portfolio described above. Included in this 25% of the portfolio may be growth capital financing investments. No more than 25% of the initial portfolio, by cost, will consist of these growth capital financing investments.

The equipment financing industry is highly competitive. Equipment manufacturers, corporations, partnerships and others offer users an alternative to the purchase of most types of equipment with payment terms that vary widely depending on the type of financing, the lease or loan term and type of equipment. The ability of the Company to keep the equipment leased and the terms of purchase, lease and sale of equipment depends on various factors (many of which neither the Managing Member nor the Company can control), such as general economic conditions, including the effects of inflation or recession, and fluctuations in supply and demand for various types of equipment resulting from, among other things, technological and economic obsolescence.

The Managing Member will use its best efforts to diversify lessees by geography and industry and to maintain an appropriate balance and diversity in the types of equipment acquired and the types of leases entered into by the Company, and will apply the following policies: (i) The Managing Member will seek to limit the amount invested in equipment or property leased to any single lessee to not more than 20% of the aggregate purchase price of investments as of the final commitment of net offering proceeds; (ii) in no event will the Company’s equity investment in equipment or property leased to a single lessee exceed an amount equal to 20% of the maximum capital from the sale of Units (or $30,000,000); and (iii) the Managing Member will seek to invest not more than 20% of the aggregate purchase price of equipment in equipment acquired from a single manufacturer. However, this last limitation is a general guideline only, and the Company may acquire equipment from a single manufacturer in excess of the stated percentage during the offering period and before the offering proceeds are fully invested, or if the Managing Member deems such a course of action to be in the Company’s best interest.

The primary geographic region in which the Company seeks leasing opportunities is North America. All of the Company’s current operating revenues and long-lived assets relate to customers domiciled in North America.

The business of the Company is not seasonal. The Company has no full time employees. Employees of the Managing Member and affiliates provide the services the Company requires to effectively operate. The cost of these services is reimbursed by the Company to the Managing Member and affiliates per the Operating Agreement.

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TABLE OF CONTENTS

For further information refer to the financial statements and footnotes.

2

Equipment Leasing Activities

The Company has acquired a diversified portfolio of equipment. The equipment, all currently located in the U.S., has been leased to lessees in various industries. The following tables set forth the types of equipment acquired by the Company through December 31, 20172023 and the industries to which the assets have been leased:leased (dollars in thousands):

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​

​

​

​

​

​

    

Purchase Price

    

​

 

​

​

Excluding

​

Percentage of Total

 

Asset Types

​

Acquisition Fees

​

Acquisitions

 

Transportation, rail

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$

3,679

 

22.05

%

Construction

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2,891

 

17.33

%

Mining

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2,749

 

16.48

%

Aviation

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2,118

 

12.70

%

Materials handling

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1,330

 

7.97

%

Paper processing

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1,058

 

6.34

%

Marine vessels

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1,041

 

6.24

%

Containers

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860

 

5.15

%

Agriculture

​

 

742

 

4.45

%

Transportation, other

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215

 

1.29

%

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​

$

16,683

 

100.00

%

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Asset Types Purchase Price
Excluding
Acquisition Fees		 Percentage of Total
Acquisitions
Railroad $3,679   32.81% 
Mining  1,320   11.77% 
Construction  1,243   11.09% 
Paper processing  1,058   9.44% 
Marine  1,041   9.28% 
Containers  860   7.67% 
Agriculture  742   6.62% 
Material handling  711   6.34% 
Aviation  462   4.13% 
Transportation  96   0.85% 
   $  11,212   100.00% 

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​

​

​

​

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Purchase Price

    

​

 

​

​

Excluding

​

Percentage of Total

 

Industry of Lessee

​

Acquisition Fees

​

Acquisitions

 

Transportation, rail

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$

3,679

 

22.05

%

Chemical

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2,515

 

15.08

%

Transportation, air

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2,118

 

12.70

%

Agriculture

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1,818

 

10.90

%

Construction

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1,728

 

10.36

%

Industrial machinery

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1,569

 

9.40

%

Paper and allied products

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1,058

 

6.34

%

Utilities

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1,041

 

6.24

%

Refuse systems

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860

 

5.15

%

Transportation services, other

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297

 

1.78

%

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​

$

16,683

 

100.00

%

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Industry of Lessee Purchase Price
Excluding
Acquisition Fees		 Percentage of Total
Acquisitions
Transportation, rail $3,679   32.81% 
Construction  1,320   11.77% 
Agriculture  1,345   12.00% 
Paper and allied products  1,058   9.44% 
Utilities  1,041   9.28% 
Refuse systems  860   7.67% 
Chemical  844   7.53% 
Tramsportation, air  462   4.12% 
Industrial machinery  306   2.73% 
Transportation services, other  297   2.65% 
   $  11,212   100.00% 

From inception to December 31, 2017,2023, the Company has nothad disposed of anycertain leased assets.assets as set forth below (in thousands):

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Original

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Equipment Costs

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​

​

​

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​

​

​

Excluding

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​

​

​

​

​

Asset Types

​

Acquisition Fees

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Sale Price

​

Gross Rents

Agriculture

​

$

742

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$

301

​

$

824

Construction

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​

507

​

​

114

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​

545

Containers

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​

860

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​

353

​

​

822

Material Handling

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​

82

​

​

6

​

​

114

Transportation, rail

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​

1,956

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​

988

​

​

1,330

​

​

$

4,147

​

$

1,762

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$

3,635

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For further information regarding the Company’s equipment lease portfolio as of December 31, 2017,2023, see Note 5, Investments4, Investment in equipment and leases, net, as set forth in Part II, Item 8, Financial Statements and Supplementary Data.

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Notes Receivable Activities

The Company finances assets in diverse industries. The following tables set forth the types of assets financed by the Company through December 31, 20172023 and the industries to which the assets have been financed:financed (dollars in thousands):

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​

​

​

​

​

​

​

    

Amount Financed

    

​

 

​

​

Excluding

​

Percentage of Total

Asset Types

​

Acquisition Fees

​

Acquisitions

Research

​

$

1,599

 

25.89

%

Manufacturing

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​

871

​

14.10

%

Agriculture

​

​

706

​

11.43

%

Miscellaneous

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3,000

 

48.58

%

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​

$

6,176

 

100.00

%

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Asset Types Amount Financed
Excluding
Acquisition Fees		 Percentage of Total
Acquisitions
Research $1,125   42.86% 
Miscellaneous  1,500   57.14% 
   $    2,625   100.00% 

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​

​

​

​

​

    

Amount Financed

    

​

 

​

​

Excluding

​

Percentage of Total

Industry of Lessee

​

Acquisition Fees

​

Acquisitions

Business services

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$

1,500

​

24.29

%

Electrical

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​

1,125

 

18.22

%

Health services

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1,000

 

16.19

%

Computer engines

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​

871

​

14.10

%

Agriculture

​

​

706

​

11.43

%

Manufacturing

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​

500

​

8.10

%

Research & development

​

 

474

 

7.67

%

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​

$

6,176

 

100.00

%

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Industry of Lessee Amount Financed
Excluding
Acquisition Fees		 Percentage of Total
Acquisitions
Electrical $1,125   42.86% 
Health services  1,000   38.10% 
Manufacturing  500   19.04% 
   $    2,625   100.00% 

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From inception to December 31, 2017,2023, assets financed by the Company that are associated with terminated loans are as follows (in thousands):

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​

​

​

​

​

​

​

​

    

Amount Financed

    

Early

    

​

​

​

​

Excluding

​

Termination of

​

Total

Asset Types

​

Acquisition Fees

​

Notes Proceeds

​

Payments Received

Research

​

$

1,599

​

$

854

​

$

1,057

Manufacturing

​

​

871

​

​

-

​

​

1,100

Agriculture

​

​

706

​

​

76

​

​

795

Miscellaneous

​

​

3,000

​

​

359

​

​

3,048

​

​

$

6,176

​

$

1,289

​

$

6,000

​

   
Asset Types Amount Financed
Excluding
Acquisition Fees		 Early
Termination of
Notes Proceeds		 Total
Payments Received
Miscellaneous $     500  $     359  $     219 

For further information regarding the Company’sThe Company had no notes receivable portfolio as of December 31, 2017, see Note 2023 and 2022.

Item 1B. UNRESOLVED STAFF COMMENTS

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None.

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Item 1C. CYBERSECURITY

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The Company's information security program is designed with the goal of maintaining the safety and security of its systems and data. The risk management program is designed to identify, assess, and mitigate risks across various aspects of the company, including financial, operational, regulatory, and legal. Cybersecurity is a critical component of this program, given the increasing reliance on technology and potential cyber threats. With the departure of the Company’s Chief Information Officer during the first half of 2023, the Company has engaged a third-party cybersecurity expert to assess the security of the Company’s systems and networks. In addition, the Company engaged a third-party vendor, along with an in-house system administrator, together the “IT Management”, to service the Company’s information systems.

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4 Notes receivable, net, as set forth

The objective in Part II, Item 8, Financial Statementsmanaging cybersecurity risk is to avoid or minimize the impact of efforts to penetrate, disrupt or misuse Company systems or information. Cybersecurity helps to maintain an environment that encourages efficiency, innovation, and Supplementary Data.economic prosperity while promoting safety, security, business confidentiality, and privacy. IT Management is charged with cybersecurity and uses a layered approach to protect systems with ESET and Cylance.

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IT Management uses a risk-based framework core consisting of cybersecurity activities, outcomes, and references that provide guidance for developing individual organizational profiles. IT Management is tasked with and shall:

●Prioritize and scope. Identify organization objectives and priorities and determine the scope of systems and assets that support the selected business line or process.
●Orient. Identify Information Systems and assets, regulatory requirements, and overall risk approach, identify threats to, and vulnerabilities of, those systems and assets.
●Risk assessment. Identify the likelihood of a cybersecurity event and the impact on the organization. Consider emerging risks.
●Target Profile. Create a Target Profile focusing on categories, subcategories, and desired cybersecurity outcomes.
●Determine, Analyze, and Prioritize Gaps. Compare the Current Profile and the Target Profile to determine gaps and create a prioritized action plan to address those gaps.
●Implement Action Plan. Determine actions to take and monitor against the Target Profile.

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IT Management must also consider how the cybersecurity program might incorporate privacy principles such as:

●Individual consent to the use of personal information
●Collecting the minimum amount of personal information
●Controls over the use and disclosure of personal information
●Use and retention of personal information related to a cybersecurity incident
●Transparency for certain cybersecurity activities
●Accountability and auditing

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IT Management ensures that the Company’s risks are properly monitored, managed and mitigated to the extent possible; and oversees the implementation and maintenance of formal strategies that govern information resources.

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In addition, the Company has established processes and systems designed to mitigate cyber risk, including regular and on-going education and training for employees, preparedness simulations and tabletop exercises, and recovery and resilience tests. We engage in regular assessments of our infrastructure, software systems, and network architecture, using internal cybersecurity experts and third-party specialists.

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The Company also leverages internal and external auditors and independent external partners to periodically review its processes, systems, and controls, including with respect to our information security program, to assess their design and operating effectiveness and make recommendations to strengthen our risk management program. The Chief Operating Officer manages the Company’s IT and cybersecurity environment, which is reviewed at least semi-annually.

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Item 2. PROPERTIES

The Company does not own or lease any real property, plant or material physical properties other than the equipment held for lease as set forth in Item 1.

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Item 3. LEGAL PROCEEDINGS

In the ordinary course of conducting business, there may be certain claims, suits, and complaints filed against the Company. In the opinion of management, the outcome of such matters, if any, will not have a material impact on the Company’s financial position or results of operations. No material legal proceedings are currently pending against the Company or against any of its assets.

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Item 4. MINE SAFETY DISCLOSURES

Not applicable.

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PART II

Item 5.MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Item 5.  MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Market Information

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There are certain material conditions and restrictions on the transfer of Units imposed by the terms of the Operating Agreement. Consequently, there is no public market for Units and it is not anticipated that a public market for Units will develop. In the absence of a public market for the Units, there is no currently ascertainable fair market value for the Units.

Holders

As of December 31, 2017,2023, a total of 408412 investors were Unitholders of record in the Company.

Fund Valuation

Background to Fund Valuation

The Financial Industry Regulatory Authority (“FINRA”), in conjunction with the Securities and Exchange Commission (“SEC”) updated rules for the presentation of account statement values relative to pricing of Direct Placement Program (“DPP”) shares. Under FINRA Notice 15-02 (the “Notice”) the SEC approved amendments to National Association of Securities Dealers (“NASD”) Rule 2340, Customer Account Statements, and FINRA Rulerule 2310, which address a FINRA member firm’s participation in a public offering of a DPP. In summary, the amendments require a FINRA member firm to include in the account statements for customers holding DPP securities an estimateda per share value for the DPP. This per share value must be prepared by, or with the material assistance or confirmation of, a third-party valuation expert or service. The results of this valuation must be disclosed in the issuer’s reports filed under the Securities Exchange Act of 1934. A valuation in compliance with the Notice must be undertaken and published on at least an annual basis.

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The effective date of the Notice was April 11, 2016.

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Methodologies

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Broker dealers are required to provide a per share estimated value on the customer account statements for each non-listed DPP security held by their customers. Such estimated value must have been developed in a manner reasonably designed to provide a reliable value. Two valuation methodologies have been defined by FINRA, which by such designation are presumed to be reliable. The first is the “Net Investment Methodology” which may only be used to establish the estimated value per Unit for a period ending 150 days following the second anniversary of the issuer’s breaking escrow on achieving its minimum capitalization. Thereafter, issuers must use the “Appraised Value Methodology” prescribed in the Rules adopted as described in the Notice. As the Fund achieved its minimum capitalization and broke its minimum funding escrow February 2, 2016, the Fund has elected to use the “Net Investment Methodology” as described below.

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Net Investment Methodology

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The estimated per Unit valuation under this method isamendments to NASD Rule 2340(c)(1)(A) require “net investment” to be based on the “amount available for investment” percentage disclosed in the “Estimated Use of Proceeds” section of the Fund’s publicissuer’s offering prospectus. Consequently,In essence, such value is equal to the offering price less selling commissions, other offering and organization expenses, and capital reserves. This method may be used for up to 150 days following the second anniversary of a Fund breaking escrow.

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6

Appraised Value Methodology

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As amended, Rule NASD 2340(c)(1)(B) requires that the per share estimated value disclosed in an issuer’s most recent periodic or current report be based upon an appraisal of the assets and liabilities of the program by, or with the material assistance or confirmation of, a third-party valuation expert or service, in conformity with standard industry valuation practice as it relates to both the aforementioned assets and liabilities. No later than 150 days following the second anniversary of the issuer’s break of escrow for its minimum offering, this methodology must be used to establish the required estimated values.

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Unit Valuation

​

The per Unit valuation estimate forATEL 17, LLC has been conducted, and the results disclosed herein, in compliance with the mandates of the Notice.

The​

For ATEL 17, LLC, its estimated value per Unit reflects the Manager’s estimate of current portfolio valuation of all assets and liabilities of the Fund, calculated on a per Unit basis, and as such, does not represent a market value for the Units and may not accurately reflect the value of the Fund Units to the Unit holders if held over time to Fund maturity.

​

In connection with any estimate of per Unit value, Unit holders and all parties are reminded that no public market for theirthe Units exists. Additionally, in order to preserve the Fund’s pass-through status for federal income tax purposes, the Fund will not permit a secondary market or the substantial equivalent of a secondary market for the Units. In the absence of a public market for the Units, there is no currently ascertainable fair market value for the Units.

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TABLE OF CONTENTS

The estimate of per Unit value does not take into account any extraordinary potential future business activity of the Fund; rather the valuation represents a snapshot view of the Fund’s portfolio as of the valuation date. In addition, the Fund does not include any analysis of the distributions that have already been paid by the Fund, nor the anticipated returns to Unit holder over the full course of the Fund life cycle, which will be dependent on many factors.

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Disclosure

As noted above, the​

The estimated value per Unit reported in this Form 10-K has been calculated using the “Appraised Value Methodology” described above under “Methodologies” above, as of December 31, 2017 using the “Net Investment Methodology” described above under “Methodologies.”2023.

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ATEL 17, LLC, will satisfy the disclosure requirements for providing estimated per Unit values pursuant to the Notice as follows:

​

For these disclosure, subsequent to the Fund's initial compliance with FINRA 15-02, annual disclosures of estimated per unit values, through the termination of the Fund, will be accomplished and included on an annual basis in a document filed with the Securities and Exchange Commission available to the public.

​

Specifics Underlying Valuation Methodology:

Notes and Explanation of Valuation Components and Calculation

A.1.Fund Assets and Liabilities (other than as specifically identified below):  The estimated values for non-interest bearing items such as current assets and liabilities are assumed to equal their reported GAAP balances as an appropriate approximation of their fair values. Debt (interest bearing) is assumed to equal the fair values of the debt as disclosed in the footnotes of the financial statements.

​

7

B.ForInvestment in equipment and leases (net of fees and expenses): The estimated values for equipment are based on calculating the customer statementsfirst provided after April 11, 2016,present value of the disclosure was first made in a quarterly reportprojected future cash flows. Projected future cash flows include both the remaining contractual lease payments, plus assumptions on Form 10-Q filedlease renewals and sale value of the residuals. Projected future cash flows are net of projected future fees and expenses including:

​

●management fees applicable for the Fund (1.25% of the aggregate original equipment cost of Portfolio Assets during offering stage, 1.75% of the aggregate net Portfolio Assets during operating stage and 1.75% of the Book Value of the Fund Assets less total cash reported as of the end of the most recent prior fiscal quarter ended March 31, 2016.or year, as the case may be)
●2.carried interest applicable for the Fund (0.01% of distributions)
●Foroperating expenses which are assumed to be 3% of original equipment costs for the subsequent annual disclosuresFund

Projected future cash flows have been discounted back to present value at discount rates based on like-term U.S. Treasury yields (as of the valuation date) plus a 400 basis point spread, to account for the credit risk differentials between the instrument being valued and U.S. Treasury security yields.

Residual values assumptions used in the cash flow projections are as follows:

For On-Lease and Month-to-Month Lease:  Considers realized residual as a percent of book residual of 178.4%, based on ATEL’s historical track record as of December 31, 2023.

For Off-Lease:  A current fair market value of off-lease equipment is based upon estimates from ATEL’s seasoned Asset Management Group.

Special Situation Leases:  The valuation of certain leases has been performed outside of the above noted protocol based upon specific lease assumptions different than the macro assumptions above, due to the specific situations of those leases.

​

C.Investments in Notes Receivable:  The estimated values for Investments in Notes Receivable are 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 value techniques and market rates for similar types of lending arrangements, which may consider adjustments for impaired loans as deemed necessary.
D.Investments in Equity Securities:  The estimated per Unit values for Investments in Securities have been based on the estimated net book value as of December 31the valuation date (with impairment adjustments), plus any unrealized gain on equity. The unrealized gain on equity is based on either: a) the most recent round of 2017 and each succeeding year throughfinancing, b) the terminationmost recent 409A valuation provided by the underlying companies of the Fund, these FINRA compliantwarrants, or c) the Manager’s estimate of the company valuations based on all available information, including company financials, company valuation reports, public press releases, and other sources.
E.Warrants Outstanding:  The estimated pervalues for Warrants Outstanding considers the reported GAAP balances to be an appropriate approximation of their fair values.
F.Accrued distributions:  Accrued distributions, which are payable to the Unit valuesholders have been and will be calculated and included inremoved from the Fund’s annual Form 10-K filing for each year.balance sheet liability section because they are not a liability to a third party.

​

8

ATEL 17, LLC Unit Valuation

​

The Manager’s estimated value per Unit value ofATEL 17, LLC at December 31, 20172023 as determined, and derived under the guidelines of theNet Investment Appraised Value Methodology, and pursuant to the above specific enumerated component valuation methodologies and calculations, equals $8.70.$3.14. An independent national public accounting firm with valuation expertise was retained to examine, attest and confirm ATEL 17, LLC’s per Unit valuation and its component methodologies and calculation as it relates to compliance with the regulatory mandate defined in the Notice. In this regard, they examined the components of the valuation methodologies and determined them to be reasonable and within industry standards. Other component attributes, including the bases and related key assumptions of the calculation were tested for their completeness, underlying documentation support and mathematical accuracy. Upon completion of their efforts, their attestation report confirmed that the per unit valuation of ATEL 17, LLC, and the related notes, in all material respects, was based upon industry practice as described in the Manager’s valuation approach.

​

Disclaimer

The foregoing Fund valuation has been performed solely for the purpose of providing an estimated value per Unit in accordance with a regulatory mandate, in order to provide the broker dealer and custodian community with a valuation on a reasonable basis for use in assigning an estimation of a Unit holder’s account value. Any statement of such valuation is to be accompanied by statements that the value so calculated does not represent an estimate of the amount a Unit holder would receive if the Unit holder were to seek to sell the Units, and that the Fund intends to liquidate its assets in the ordinary course of its business and over the Fund’s term. Further, each Fund Valuation is to be accompanied by a disclosure that there can be no assurance as to (1) when the Fund will be fully liquidated, (2) the amount the Fund may actually receive if and when the Fund seeks to liquidate its assets, (3) the amount of lease or loan payments the Fund will actually receive over the remaining term, (4) the amount of asset disposition proceeds the Fund will actually receive over the remaining term, and (5) the amounts that may actually be received in distributions by Unit holders over the course of the remaining term.

Distributions

The Unitholders of record are entitled to certain distributions as provided under the Operating Agreement. The Company commenced periodic distributions beginning with the month of April 2016. Additional distributions have been consistently made through December 31, 2017.2023.

Cash distributions were paid by the Fund to Unitholders of record as of November 30, 2017,2023, and paid through December 31, 2017.2023. Distributions may be characterized for tax, accounting and economic purposes as a return of capital, a return on capital (including escrow interest) or a portion of each. Generally, the portion of each cash distribution by a company which exceeds its net income for the fiscal period would constitute a return of capital. The Fund is required by the terms of its Operating Agreement to distribute the net cash flow generated by its investments in certain minimum amounts during the Reinvestment Period before it can reinvest its operating cash flow in additional portfolio assets. See the discussion in the ATEL 17, LLC Prospectus dated January 5, 2016 (“Prospectus”) under “Income, Losses and Distributions — Reinvestment.” Accordingly, the amount of cash flow from Fund investments distributed to Unitholders will not be available for reinvestment in additional portfolio assets.

Cash distributions were based on current and anticipated gross revenues from the leases and loans acquired. During the Fund’s acquisition and operating stages, the Fund may incur short term borrowing to fund regular distributions of such gross revenues to be generated by newly acquired transactions during their respective initial fixed terms. As such, all Fund periodic cash distributions made during these stages have been, and are expected in the future to be, based on the Fund’s actual and anticipated gross revenues to be generated from the binding initial terms of the leases and loans acquired.

9

6

TABLE OF CONTENTS

The following table summarizes distribution activity for the Fund from inception through December 31, 20172023 (in thousands except for Units and Per Unit Data):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total

​

Weighted

​

​

​

​

Return of

​

​

​

Distribution

​

​

​

Total

​

​

​

Distribution

​

Average Units

Distribution Period (1)

  

Paid

  

Capital

  

​

  

of Income

  

​

  

Distribution

  

​

  

per Unit (2)

  

Outstanding (3)

Monthly and quarterly distributions

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

  

​

  

Feb 2016 - Nov 2016

​

Apr 2016 - Dec 2016

​

$

492

​

​

​

$

-

​

​

​

$

492

​

​

​

$

0.64

​

770,832

Dec 2016 - Nov 2017

​

Jan 2017 - Dec 2017

​

 

1,540

​

​

​

 

-

​

​

​

 

1,540

​

​

​

​

0.78

​

1,967,313

Dec 2017 - Nov 2018

​

Jan 2018 - Dec 2018

​

​

2,043

​

​

​

​

-

​

​

​

​

2,043

​

​

​

​

0.80

​

2,562,088

Dec 2018 - Nov 2019

​

Jan 2019 - Dec 2019

​

​

2,052

​

​

​

​

-

​

​

​

​

2,052

​

​

​

​

0.80

​

2,565,749

Dec 2019 - Nov 2020

​

Jan 2020 - Dec 2020

​

​

2,052

​

​

​

​

-

​

​

​

​

2,052

​

​

​

​

0.80

​

2,565,749

Dec 2020 - Nov 2021

​

Jan 2021 - Dec 2021

​

​

2,053

​

​

​

​

-

​

​

​

​

2,053

​

​

​

​

0.80

​

2,565,749

Dec 2021 - Nov 2022

​

Jan 2022 - Dec 2022

​

​

2,053

​

​

​

​

-

​

​

​

​

2,053

​

​

​

​

0.80

​

2,565,749

Dec 2022 - Nov 2023

​

Jan 2023 - Dec 2023

​

​

2,053

​

​

​

​

-

​

​

​

​

2,053

​

​

​

​

0.80

​

2,565,749

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

$

14,338

​

​

​

$

-

​

​

​

$

14,338

​

​

​

$

6.22

​

​

Source of distributions

​

​

​

 

​

​

​

​

 

  

​

​

​

 

​

​

​

​

 

​

 

​

Lease and loan payments and sales proceeds received

​

​

​

$

14,338

​

100.00%

​

$

-

​

0.00%

​

$

14,338

​

100.00%

​

 

​

 

​

         
         
Distribution Period(1) Paid Return
of Capital		  Distribution
of Income		  Total
Distribution		  Total Distribution per Unit(2) Weighted Average Units Outstanding(3)
Monthly and quarterly distributions
                                        
Feb 2016 – Nov 2016  Apr 2016 – 
Dec 2016		  $492       $—       $492        0.64   770,832 
Dec 2016 – November 2017  Jan 2017 – 
Dec 2017		   1,540      —      1,540      0.78   1,967,313 
      $2,032     $—     $2,032      1.42    
Source of distributions
                                             
Lease and loan payments and sales proceeds received    $2,032   100.00%  $—   0.00%  $2,032   100.00%       
      $  2,032   100.00%  $  —   0.00%  $ 2,032   100.00%       
(1)Investors may elect to receive their distributions either monthly or quarterly. See “Timing and Method of Distributions” on Page 67 of the Prospectus.
(2)Total distributions per Unit represents the per Unit distributions rate for those units which were outstanding for all of the applicable period.
(3)Balances shown represent weighted average units for the period from February 2 –- November 30, 2016, and from December 1, 2016 –- November 30, 2017, December 1, 2017 - November 30, 2018, December 1, 2018 - November 30, 2019, December 1, 2019 - November 30, 2020, December 1, 2020 - November 30, 2021, December 1, 2021 - November 30, 2022, and December 1, 2022 - November 30, 2023, respectively.

Use of Proceeds from Registered Securities​

Information provided pursuant to § 229.701 (Item 701(f)) (formerly included in Form SR):​

(1)Effective date of the offering: January 5, 2016; File Number: 333-203841
(2)Offering commenced: January 5, 2016
(3)The offering did not terminate before any securities were sold.
(4)The managing underwriter is ATEL Securities Corporation.
(5)The title of the registered class of securities is “Units of Limited Liability Company Interest.”
(6)Aggregate amount and offering price of securities registered and sold as of December 31, 2017 (dollars in thousands):

    
Title of Security Amount
Registered		 Aggregate price
of offering
amount
registered		 Units sold Aggregate
price of
offering
amount sold
Units of Limited Company Interest  15,000,000  $150,000   2,551,749  $25,510 
(7)Costs incurred for the issuers’ account in connection with the issuance and distribution of the securities registered for each category listed below (in thousands):

   
 Direct or indirect payments to
directors, officers, Managing
Members of the issuer or their
associates, to persons owning
ten percent or more of any class of
equity securities of the issuer; and
to affiliates of the issuer		 Direct or
indirect
payments to
others		 Total
Underwriting discounts and commissions $509  $1,783  $2,292 
Other syndication costs  —   1,528   1,528 
Total expenses $    509  $    3,311  $    3,820 

(8)

Net offering proceeds to the issuer after the total expenses in item 7 (in thousands):

 $   21,690 

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TABLE OF CONTENTS

(9)The amount of the net offering proceeds to the issuer used for each of the purposes listed below (in thousands):

   
 Direct or indirect payments to
directors, officers, Managing
Members of the issuer or their
associates, to persons owning
ten percent or more of any class of
equity securities of the issuer; and
to affiliates of the issuer		 Direct or indirect payments to others Total
Purchase and installation of machinery and equipment $312  $11,212  $11,524 
Investment in notes receivable  7   2,625   2,632 
Distributions paid and accrued  —   2,249   2,249 
Other expenses  —   1,699   1,699 
   $    319  $   17,785  $18,104 

(10)

Net offering proceeds to the issuer after the total investments and distributions in item 9:

 $    3,587 
Item 6.SELECTED FINANCIAL DATA

Item 6. SELECTED FINANCIAL DATA

​

A smaller reporting company is not required to present selected financial data in accordance with item 301(c) of Regulation S-K.

10

​

​

Item 7.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Statements contained in this Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” (“MD&A”) and elsewhere in this Form 10-K, which are not historical facts, may be forward-looking statements. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. In particular, economic recession and changes in general economic conditions, including fluctuations in demand for equipment, lease rates, and interest rates, may result in delays in investment and reinvestment, delays in leasing, re-leasing, and disposition of equipment, and reduced returns on invested capital. The Company’s performance is subject to risks relating to lessee defaults and the creditworthiness of its lessees. The Company’s performance is also subject to risks relating to the value of its equipment at the end of its leases, which may be affected by the condition of the equipment, technological obsolescence and the markets for new and used equipment at the end of lease terms. Investors are cautioned not to attribute undue certainty to these forward-looking statements, which speak only as of the date of this Form 10-K. We undertake no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this Form 10-K or to reflect the occurrence of unanticipated events, other than as required by law.

Overview

ATEL 17, LLC (the “Company” or the “Fund”) was formed under the laws of the state of California on April 16, 2015 (“Date of Inception”) for the purpose of equipment financing and acquiring equipment to engage in equipment leasing and sales activities.

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 and continued in its development stage activities until transitioning to an operating enterprise during the first quarter of 2016. Pennsylvania subscriptions are subject to a separate escrow and are released to the Fund only when aggregate subscriptions for all investors equal to at least $7.5 million. Total contributions to the Fund exceeded $7.5 million on July 6, 2016, at which time a request was processed to release the Pennsylvania escrowed amounts. The offering will terminate not later thanwas terminated on January 5, 2018. As of December 31, 2017, 2,551,7492023, 2,565,749 Units were issued and outstanding.

During 2016, the Company initiated its initial acquisition stage with the investment of the net proceeds from the public offering of Units. Subsequently, during the reinvestment period (“Reinvestment Period”) (defined as six full years following the year the offering was terminated), the Company has reinvested and will reinvest cash flow in excess of

8

TABLE OF CONTENTS

certain amounts required to be distributed to the members and/or utilized its credit facilities to acquire additional equipment. Throughout the Reinvestment Period, which ends December 31, 2022,2024, the Company anticipates continued reinvestment of cash flow in excess of minimum distributions and other obligations. The Company is governed by its Operating Agreement.

The Company may continue until terminated as provided in the Operating Agreement. Periodic distributions are paid at the discretion of the Managing Member.

It isResults of Operations

The Company had net losses of $490 thousand and $556 thousand for the Company’s objectiveyears ended December 31, 2023 and 2022, respectively. Compared to maintain a 100% utilization rateprior year, the results for all equipment purchased2023 reflect decreases in any given year. All equipment transactions are acquired subjecttotal operating revenues partially offset by reductions in total operating expenses and other losses.

​

11

Total operating revenues declined by $256 thousand due to bindingthe absence of sales of lease commitments, so equipment utilization is expected to remain highassets during 2023 and reductions in both net operating lease revenue and other revenue. The absence of lease asset sales activity during the funding periodcurrent year resulted in a $202 thousand year over year decrease in gains realized on sales of lease assets. Moreover, net operating lease revenue declined by $31 thousand as a result of lease run-off and throughout the reinvestment stage. Initial lease termsimpact of these leases are generally from 36prior year asset dispositions on current year revenues; while other revenue decreased by $23 thousand due to 120 months,a year over year decline in deferred maintenance fees charged on certain returned equipment.

​

Total operating expenses declined by $101 thousand primarily due to lower professional fees, interest expense, bank charges, depreciation expense, and as they expire,cost reimbursements to Managing Member and/or affiliates. These decreases were partially offset by an increase in outside services.

​

Professional fees decreased by $28 thousand largely due to timing differences in receipt of services and billing; while interest expense decreased by $23 thousand due to the Company will attemptscheduled run-off of the Fund’s borrowings under non-recourse debt. In addition, bank charges decreased by $23 thousand due to re-lease or sell the equipment. Alltermination of the Company’s equipmentparticipation in a revolving credit facility at the end of 2022; and depreciation expense decreased by $19 thousand mainly attributable to lease run-off and the impact of prior year asset dispositions on lease was purchased in the years 2016 through 2017. The utilization percentage of existing assets under lease was 100% at both December 31, 2017 and 2016.

Costcurrent year depreciation. Moreover, cost reimbursements to the Managing Member and/or affiliates are based on itsdeclined by $15 thousand due to lower allocated costs incurredassociated with the continued decline of the Fund’s asset base. Partially offsetting the aforementioned decreases in performing administrativeexpenses was a $34 thousand increase in outside services, forwhich was attributable to costs related to the Company. These costs are allocatedimplementation of a new accounting system, and upgrades to each managed entity based on certain criteria such as total assets, number of investors or contributed capital based upon the type of cost incurred.existing systems.

2017 versus 2016

The Company had net loss of $481 thousand and $234 thousand for​

During the years ended December 31, 20172023 and 2016, respectively. Results for 20172022, the Company recorded net other losses totaling $69 thousand and $290 thousand, respectively, to reflect increases in both total revenuesunrealized and total expenses when compared to prior year.

Revenues

Total revenues for 2017 increased by a net $1.1 million, or 225%, as compared to prior year. Such increase was largely due to a $908 thousand, or 210%, increase in operating lease revenues, mainlyrealized gains and losses on the resultFund’s investment securities and warrants portfolio. Most of the Fund’s acquisition of new equipmentunrealized losses during both years, totaling $10 thousand for long term operating leases; a $1322023 and $287 thousand or 489%, increase in interest income on notes receivablefor 2022, were related to fundingone of new notes receivable investments; an $18 thousand, increase in gain on sales of lease assets and early termination of notes receivable, andthe Company’s publicly traded equity securities, which had experienced a $15 thousand, or 375%, favorable change in unrealized gains on fair value adjustment for warrants relative to warrant holdings.

Expenses

Total expenses for 2017 increased by $1.3 million, or 185%, as compared tosignificant price reduction during the prior year. The price of such equity securities continued to decline during the current year, albeit at a lower amount. In contrast, the Company’s unrealized losses related to the fair valuation of its warrants portfolio increased to $61 thousand for 2023 from $4 thousand for 2022. Such increase in total expensesunrealized losses related to the warrants was largely a result of a $620 thousand, or 199%, increase in depreciation expense, the result of approximately $5.3 million in purchase of lease assets in year 2017; a $206 thousand, or 278%, increase in cost reimbursements to Manager Member, due to increased indirect cost allocations, a resultadverse changes in prices of increased levels of portfolio assets and the refinement of cost allocation methodology; a $126 thousand, or 307%, increase in asset management fees paid to the Manager, primarily due to an increase in assets under management; a $78 thousand, or 49%, increase in acquisition expenses related to higher period over period acquisitions of operating lease assets; a $78 thousand, or 177%, increase in professional fees, due to year over year difference in timing and related billings for professional audit and tax services; a $52 thousand, or 168%, increase in outside services, indicative of additional efforts required to comply with certain regulatory requirements; and a $56 thousand, or 467%, increase in other expenses that are primarily related to miscellaneous expenses, printing and photocopying, dues and subscriptions and insurance.underlying securities.

​

Capital Resources and Liquidity

At December 31, 20172023 and 2016,2022, the Company’s cash and cash equivalents totaled $7.1$1.0 million and $3.4$2.6 million, respectively. The liquidity of the Company varies, increasing to the extent cash flows from leases and proceeds of asset sales exceed expenses and decreasing as leases and other assets are acquired, as distributions are made to the Members and to the extent expenses exceed cash flows from leases and proceeds from asset sales.

The Company currently believes it has adequate reserves available to meet its immediate cash requirements and those of the next twelve months, but in the event those reserves are found to be inadequate, the Company would likely be in a position to borrow against its current portfolio to meet such requirements. The Managing Member envisions no such requirements for operating purposes.

9

TABLE OF CONTENTS

Cash Flows

The following table sets forth summary cash flow data (in thousands):

​

​

​

​

​

​

​

​

​

2023

​

2022

Net cash provided by (used in):

​

​

​

​

​

​

Operating activities

​

$

918

​

$

843

Investing activities

​

 

13

​

 

337

Financing activities

​

 

(2,575)

​

 

(2,571)

Net decrease in cash and cash equivalents

​

$

(1,644)

​

$

(1,391)

​

  
 2017 2016
Net cash provided by (used in):
          
Operating activities $633  $160 
Investing activities  (4,563)   (8,777) 
Financing activities  7,592   12,046 
Net increase in cash and cash equivalents $    3,662  $    3,429 

12

2017 versus 2016

During 2017the years ended December 31, 2023 and 2016,2022, the Company’s primary sourcesmain source of liquidity werewas cash flows from members’ capital contributionsits portfolio of operating lease contracts. During the current year, the Company also received $13 thousand of proceeds from sales of securities. By comparison, during the prior year, the Company received $420 thousand of proceeds from sales of lease assets, and $50 thousand of proceeds from the sale of Units totaling $10.7 million and $14.8 million, respectively. The net cash provided byoptions – short position contracts. There were no such proceeds during the Company’s operating activities were $633 thousand and $160 thousand for 2017 and 2016, respectively. In addition, the Company realized $359 thousand and $0 thousand of proceeds from early termination of certain notes receivable for the respective years 2017 and 2016. The principal payments received on notes receivable were $458 thousand and $1 thousand for the respective years 2017 and 2016.current year.

​

During 2017 and 2016,the same respective years, cash was primarily used to pay distributions, repay borrowings under non-recourse debt and acquire lease assets totaling $4.1 million and $7.1 million, respectively.assets. Cash used to invest in notes receivablepay distributions totaled $1.1 million and $1.5$2.1 million for each of the respective years 2017 and 2016. The payment of selling commissions and syndication costs associated with the Company’s offering totaled $1.6 million and $2.2 million for 2017 and 2016, respectively. Distributions paid to Other Members totaled $1.5 million and $492 thousand atended December 31, 20172023 and 2016, respectively.

Revolving Credit facility

Effective June 30, 2017,2022; and repayments of non-recourse debt totaled $522 thousand and $518 thousand for 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 ofyears ended December 31, 2017,2023 and 2022, respectively. In addition, during the Credit Facility is for an amountprior year, $133 thousand of $75 millioncash used to acquire lease assets. There were no such acquisitions during the current year. Cash was also used to pay invoices related to management fees 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 anyexpenses, 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 December 31, 2017, approximately $69.2 million was available under the facility, and the Company had no outstanding borrowings under the facility.other payables in both years.

​

Distributions

The Company commenced periodic distributions beginning with the month of February 2016. Additional distributions have been consistently made through December 31, 2017.2023. See Item 5, Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities, for additional information regarding the distributions.

Commitments and Contingencies and Off-Balance Sheet Transactions

Commitments and Contingencies

At December 31, 2017,2023, there were twono commitments to purchase lease assets andor to fund investments in notes receivable totaling $1.1 million and $5.2 million, respectively. These amounts represent contract awards which may be canceled by the prospective borrower/investee or may not be accepted by the Company. There were no cancellations subsequent to year-end.receivable.

Off-Balance Sheet Transactions

None.

Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

See the Report of Independent Registered Public Accounting Firm, Financial Statements and Notes to Financial Statements attached hereto at pages 1114 through 3032.

​

13

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TABLE OF CONTENTS

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Member
Members

ATEL 17, LLC

Opinion on the Financial Statements

We have audited the accompanying balance sheets of ATEL 17, LLC (the “Company”), as of December 31, 20172023 and 2016,2022, the related statements of operations, changes in members’ capital, and cash flows for the years then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 20172023 and 2016,2022, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

​

Basis for Opinion

These financial statements are the responsibility of the Management of the Company’s Managing Member. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

​

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

​

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures to respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

​

Critical Audit Matters

​

Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters.

​

​

/s/   Moss Adams LLP

San Francisco, California

March 26, 201820, 2024

We have served as the Company’s auditor since 2007.2015.

​

14

11

TABLE OF CONTENTS

ATEL 17, LLC

BALANCE SHEETS

DECEMBER 31, 20172023 AND 2016
2022

(In Thousands)

​

​

​

​

​

​

​

​

    

2023

    

2022

​

​

​

​

​

​

ASSETS

 

​

  

 

​

  

Cash and cash equivalents

​

$

1,000

​

$

2,644

Accounts receivable, net

​

 

52

​

 

42

Investment in equity securities

​

 

-

​

 

21

Warrants, fair value

​

 

77

​

 

138

Investments in equipment and leases, net

​

 

5,211

​

 

6,589

Prepaid expenses and other assets

​

 

4

​

 

6

Total assets

​

$

6,344

​

$

9,440

​

​

​

​

​

​

​

LIABILITIES AND MEMBERS' CAPITAL

​

 

  

​

 

  

​

​

​

​

​

​

​

Accounts payable and accrued liabilities:

​

 

  

​

 

  

Due to Managing Member and affiliates

​

$

31

​

$

40

Accrued distributions to Other Members

​

​

228

​

​

228

Other

​

 

65

​

 

59

Non-recourse debt

​

​

593

​

​

1,115

Unearned operating lease income

​

 

78

​

 

106

Total liabilities

​

 

995

​

 

1,548

​

​

​

​

​

​

​

Commitments and contingencies (Note 9)

​

​

​

​

​

​

​

​

​

​

​

​

​

Members’ capital:

​

 

  

​

 

  

Managing Member

​

​

1

​

​

1

Other Members

​

 

5,348

​

 

7,891

Total Members’ capital

​

 

5,349

​

 

7,892

Total liabilities and Members’ capital

​

$

6,344

​

$

9,440

​

  
 2017 2016
ASSETS
          
Cash and cash equivalents $7,092  $3,430 
Accounts receivable, net of allowance for doubtful accounts of $18 at Decmeber 31, 2017 and $0 at December 31, 2016  66   109 
Notes receivable, net of unearned interest income of $359 at December 31, 2017 and $259 at December 31, 2016  1,794   1,451 
Warrants, fair value  62   51 
Investments in equipment and leases, net of accumulated depreciation of $1,242 at December 31, 2017 and $311 at December 31, 2016  10,200   6,933 
Prepaid expenses and other assets  12   16 
Total assets $19,226  $11,990 
LIABILITIES AND MEMBERS’ CAPITAL
          
Accounts payable and accrued liabilities:
          
Managing Member $34  $4 
Affiliates  74   55 
Accrued distributions to Other Members  217   117 
Other  30   15 
Unearned operating lease income  164   103 
Total liabilities  519   294 
Commitments and contingencies
          
Members’ capital:
          
Managing Member  1   1 
Other Members  18,706   11,695 
Total Members’ capital  18,707   11,696 
Total liabilities and Members’ capital $   19,226  $    11,990 

​

See accompanying notes.

​

1215

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ATEL 17, LLC

STATEMENTS OF OPERATIONS

FOR THE YEARS ENDED DECEMBER 31, 20172023 AND 2016
2022

(In Thousands Except for Units and Per Unit Data)

​

​

​

​

​

​

​

​

​

2023

    

2022

Operating revenues:

​

​

  

 

​

  

Leasing and lending activities:

​

​

  

 

​

  

Operating lease revenue, net

​

$

1,733

​

$

1,764

Gain on sales of lease assets

​

​

-

​

​

202

Other revenue

​

 

2

​

 

25

Total operating revenues

​

 

1,735

​

 

1,991

​

​

​

​

​

​

​

Operating expenses:

​

 

​

​

 

​

Depreciation of operating lease assets

​

 

1,356

​

 

1,375

Asset management fees to Managing Member

​

 

219

​

 

224

Acquisition expense

​

 

-

​

 

4

Cost reimbursements to Managing Member and/or affiliates

​

 

287

​

 

302

Amortization of initial direct costs

​

 

22

​

 

27

Interest expense

​

​

37

​

​

60

Professional fees

​

 

118

​

 

146

Outside services

​

 

81

​

 

47

Taxes on income and franchise fees

​

 

4

​

 

5

Bank charges

​

 

8

​

 

31

Other expense

​

 

24

​

 

36

Total operating expenses

​

 

2,156

​

 

2,257

Net loss from operations

​

​

(421)

​

​

(266)

​

​

​

​

​

​

​

Other gain (loss):

​

​

​

​

​

​

Gain on sale of securities

​

​

2

​

​

-

Realized gain on sale of options

​

​

-

​

​

1

Unrealized loss on fair value adjustment for equity securities

​

​

(10)

​

​

(287)

Unrealized loss on fair value adjustment for warrants

​

 

(61)

​

 

(4)

Total other loss

​

​

(69)

​

​

(290)

Net loss

​

$

(490)

​

$

(556)

​

​

​

​

​

​

​

Net loss:

​

 

  

​

 

  

Managing Member

​

$

-

​

$

-

Other Members

​

​

(490)

​

​

(556)

​

​

$

(490)

​

$

(556)

​

​

​

​

​

​

​

Net loss per Limited Liability Company Unit -
Other Members

​

$

(0.19)

​

$

(0.22)

Weighted average number of Units outstanding

​

 

2,565,749

​

 

2,565,749

​

  
 2017 2016
Revenues:
          
Leasing and lending activities:
          
Operating leases $1,340  $432 
Notes receivable interest income  159   27 
Gain on sales of lease assets and early termination of notes receivable  18   — 
Unrealized gain (loss) on fair value adjustment for warrants  11   (4) 
Other  8   18 
Total revenues  1,536   473 
Expenses:
          
Depreciation of operating lease assets  931   311 
Asset management fees to Managing Member  167   41 
Acquisition expense  236   158 
Cost reimbursements to Managing Member and/or affiliates  280   74 
Provision for credit losses  18   — 
Amortization of initial direct costs  58   28 
Professional fees  122   44 
Outside services  83   31 
Taxes on income and franchise fees  7   8 
Bank charges  47   — 
Other  68   12 
Total expenses  2,017   707 
Net loss $(481)  $(234) 
Net loss:
          
Managing Member $—  $— 
Other Members  (481)   (234) 
   $(481)  $(234) 
Net loss per Limited Liability Company Unit (Other Members) $(0.23)   (0.28) 
Weighted average number of Units outstanding  2,058,512   832,350 

​

See accompanying notes.

​

1316

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ATEL 17, LLC

STATEMENTS OF CHANGES IN MEMBERS’ CAPTIAL

CAPITAL

FOR THE YEARS ENDED DECEMBER 31, 20172023 AND 2016
2022

(In Thousands Except for Units and Per Unit Data)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Amount

​

 

​

​

​

​

​

Other

​

Managing

​

​

​

​

​

Units

​

Members

​

Member

​

Total

Balance December 31, 2021

​

2,565,749

​

$

10,500

​

$

1

​

$

10,501

Distributions to Other Members ($0.80 per Unit)

 

-

​

 

(2,053)

​

 

-

​

 

(2,053)

Net loss

 

-

​

 

(556)

​

 

-

​

 

(556)

Balance December 31, 2022

 

2,565,749

​

​

7,891

​

​

1

​

​

7,892

Distributions to Other Members ($0.80 per Unit)

 

-

​

 

(2,053)

​

 

-

​

 

(2,053)

Net loss

 

-

​

 

(490)

​

 

-

​

 

(490)

Balance December 31, 2023

 

2,565,749

​

$

5,348

​

$

1

​

$

5,349

​

​

​

​

​

​

​

​

​

​

​

​

​

    
  Amount
   Units Other
Members		 Managing Member Total
Balance December 31, 2015  50  $—  $1  $1 
Capital contributions  1,475,814   14,751   —   14,751 
Syndication costs  —   (2,213)   —   (2,213) 
Distributions to Other Members ($0.73 per Unit)  —   (609)   —   (609) 
Net loss  —   (234)   —   (234) 
Balance December 31, 2016  1,475,864  $11,695   1  $11,696 
Capital contributions  1,075,885   10,740   —   10,740 
Syndication costs  —   (1,608)   —   (1,608) 
Distributions to Other Members ($0.80 per Unit)  —   (1,640)   —   (1,640) 
Net loss  —   (481)   —   (481) 
Balance December 31, 2017  2,551,749  $  18,706  $    1  $  18,707 

See accompanying notes.

17

14

TABLE OF CONTENTS

ATEL 17, LLC

STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 20172023 AND 2016
2022

(In Thousands)

​

​

​

​

​

​

​

​

2023

    

2022

Operating activities:

​

  

 

​

  

Net loss

$

(490)

​

$

(556)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

​

​

 

  

Gain on sales of lease assets

 

-

​

 

(202)

Depreciation of operating lease assets

​

1,356

​

​

1,375

Amortization of initial direct costs

​

22

​

​

27

Gain on sale of securities

​

(2)

​

​

-

Realized gain on sale of options

​

-

​

​

(1)

Unrealized loss on fair value adjustment for equity securities

​

10

​

​

287

Unrealized loss on fair value adjustment for warrants

 

61

​

 

4

Changes in operating assets and liabilities:

 

​

​

 

​

Accounts receivable

 

(10)

​

 

(16)

Due from/to Managing Member and affiliates

 

(9)

​

 

22

Prepaid expenses and other assets

​

2

​

​

3

Accounts payable, other

​

6

​

​

(99)

Unearned operating lease income

 

(28)

​

 

(1)

Net cash provided by operating activities

 

918

​

 

843

​

​

​

​

​

​

Investing activities:

 

  

​

 

  

Purchases of equipment under operating leases

 

-

​

 

(133)

Proceeds from sale of securities

​

13

​

​

-

Proceeds from sale of options

​

-

​

​

50

Proceeds from sales of equipment under operating leases

​

-

​

​

420

Net cash provided by investing activities

 

13

​

 

337

​

​

​

​

​

​

Financing activities:

 

  

​

 

  

Repayments under non-recourse debt

​

(522)

​

​

(518)

Distributions to Other Members

 

(2,053)

​

 

(2,053)

Net cash used in financing activities

 

(2,575)

​

 

(2,571)

​

​

​

​

​

​

Net decrease in cash and cash equivalents

 

(1,644)

​

 

(1,391)

Cash at beginning of year

 

2,644

​

 

4,035

Cash at end of year

$

1,000

​

$

2,644

​

​

​

​

​

​

Supplemental disclosures of cash flow information:

 

  

​

 

  

Cash paid during the year for interest

$

39

​

$

61

Cash paid during the year for taxes

$

1

​

$

13

​

​

​

​

​

​

Schedule of non-cash investing and financing transactions:

 

  

​

 

  

Distributions payable to Other Members at year-end

$

228

​

$

228

​

​

  
 2017 2016
Operating activities:
          
Net loss $(481)  $(234) 
Adjustment to reconcile net loss to net cash provided by operating activities:
          
Accretion of note discount – warrants  (18)   (2) 
Gain on early termination of notes receivable  (18)   — 
Depreciation of operating lease assets  931   311 
Amortization of initial direct costs  58   28 
Provision for credit losses  18   — 
Unrealized (gain) loss on fair value adjustment for warrants  (11)   4 
Changes in operating assets and liabilities:
          
Accounts receivable  25   (109) 
Prepaid expenses and other assets  4   (16) 
Accounts payable, Managing Member  30   4 
Accounts payable, other  15   15 
Accrued liabilities, affiliates  19   56 
Unearned operating lease income  61   103 
Net cash provided by operating activities  633   160 
Investing activities:
          
Proceeds from early termination of notes receivable  359   — 
Purchases of equipment on operating leases  (4,135)   (7,077) 
Payments of initial direct costs  (120)   (201) 
Note receivable and warrants advances  (1,125)   (1,500) 
Principal payments received on notes receivable  458   1 
Net cash used in investing activities  (4,563)   (8,777) 
Financing activities:
          
Syndication costs  (1,608)   (2,213) 
Distributions to Other Members  (1,540)   (492) 
Capital contributions  10,740   14,751 
Net cash provided by financing activities  7,592   12,046 
Net increase in cash and cash equivalents  3,662   3,429 
Cash at beginning of year  3,430   1 
Cash at end of year $7,092  $3,430 
Supplemental disclosures of cash flow information:
          
Cash paid during the year for taxes $1  $2 
Schedule of non-cash investing and financing transactions:
          
Distributions payable to Other Members at year-end $      217  $      117 

​

​

See accompanying notes.

​

​

​

1518

TABLE OF CONTENTS

ATEL 17, LLC



NOTES TO THE FINANCIAL STATEMENTS

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 (“Date of Inception”) for the purpose of equipment financing and acquiring equipment to engage in equipment leasing and sales activities. The Managing Member of the Company is ATEL Managing Member, LLC (the “Managing Member” or “Manager”), a Nevada limited liability company. The Managing Member is controlled by ATEL Financial Services, LLC (“AFS”), a wholly-owned subsidiary of ATEL Capital Group. The Fund may continue as provided in the ATEL 17, LLC limited liability 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 and continued in its development stage activities until transitioning to an operating enterprise during the first quarter of 2016. Pennsylvania subscriptions are subject to a separate escrow and are released to the Fund only when aggregate subscriptions for all investors equal to at least $7.5 million. Total contributions to the Fund exceeded $7.5 million on July 6, 2016, at which time a request was processed to release the Pennsylvania escrowed amounts. The offering terminated on January 5, 2018.

As of December 31, 2017,2023, cumulative gross contributions, less rescissions and repurchases (net of distributions paid and allocated syndication costs, as applicable), totaling $25.5$25.7 million (inclusive of the $500 initial Member’s capital investment) have been received. As of the same date, 2,551,7492,565,749 Units were issued and outstanding.

The Company’s principal objectives are to invest in a diversified portfolio of investments that will (i) preserve, protect and return the Company’s invested capital; (ii) generate regular cash distributions to members, with any balance remaining after required minimum distributions to be used to purchase additional investments during the Reinvestment Period (ending six calendar years after the completion of the Company’s public offering of Units) and (iii) provide additional cash distributions following the Reinvestment Period and until all investment portfolio assets have been sold or otherwise disposed.

Pursuant to the terms of the Operating Agreement, the Managing Member and/or its affiliates receives compensation for services rendered and reimbursements for costs incurred on behalf of the Company. (See Note 7,6, Related party transactions.) The Company is required to maintain reasonable cash reserves for working capital, for the repurchase of Units and for contingencies. The repurchase of Units is solely at the discretion of the Managing Member.

2. Summary of significant accounting policies:

Basis of presentation:

The accompanying balance sheets as of December 31, 20172023 and 2016,2022, and the related statements of operations, changes in members'members’ capital, and cash flows for the years then ended, have been prepared in accordance with accounting principles generally accepted in the United States of America (‘GAAP’) and the rules and regulations of the Securities and Exchange Commission. Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications had no significant effect on the reported financial position or results from operations.

Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data.

19

ATEL 17, LLC

NOTES TO THE FINANCIAL STATEMENTS

In preparing the accompanying financial statements, the Company has reviewed, as determined necessary by the Managing Member, events that have occurred after December 31, 2017,2023, up until the issuance of the financial statements. No events were noted which would require additional disclosure in the footnotes to the financial statements, and adjustments thereto.statements.

16

TABLE OF CONTENTS

ATEL 17, LLC

NOTES TO THE FINANCIAL STATEMENTS

2. Summary of significant accounting policies: - (continued)

The Company began operations in 2016.

Cash and cash equivalents:

Cash and cash equivalents include cash in banks and cash equivalent investments such as U.S. Treasury instruments with original and/or purchased maturities of ninety days or less.

Use of Estimates:

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates. Such estimates primarily relate to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes and for determination of the allowance for doubtful accounts and reserve for credit losses on notesaccounts receivable.

Accounts receivable:

Accounts receivable represent the amounts billed under operating lease contracts, and notes receivable which are currently due to the Company. Allowances for doubtful accounts are typically established based on historical charge off and collection experience and the collectability of specifically identified lessees and borrowers, and invoiced amounts. Accounts receivable deemed uncollectible are generally charged off against the allowance on a specific identification basis. Recoveries of amounts that were previously written-off are recorded as other income in the period received.

Credit risk:

Financial instruments that potentially subject the Company to concentrations of credit risk include cash and cash equivalents, operating lease receivable, notes receivablereceivables, and accounts receivable. The Company places the majority of its cash deposits in noninterest-bearing accounts with financial institutions that have no less than $10 billion in assets. Such deposits are insured up to $250 thousand. The remainder of the 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 and notes receivable represent amounts due from lessees or borrowers in various industries, related to equipment on operating leases or notes receivable.leases.

Equipment on operating leases and related revenue recognition:

Equipment subject to operating leases is stated at cost. Depreciation is being recognized on a straight-line method over the terms of the related leases to the equipment’s estimated residual values. Off-lease equipment is generally not subject to depreciation. The Company depreciates all lease assets, in accordance with guidelines consistent with ASC 840-20-35-3,Accounting Standards Codification (“ASC”) 360-10-35-3, over the periods of the lease terms contained in each asset’s respective lease contract to the estimated residual value at the end of the lease contract. All lease assets are purchased only concurrent with the execution of a lease commitment by the lessee. Thus, the original depreciation period corresponds with the term of the original lease. Once the term of an original lease contract is completed, the subject property is typically sold to the existing user, re-leased to the existing user, or, when off-lease, is held for sale. Assets which are re-leased continue to be depreciated using the terms of the new lease agreements and the estimated residual values at the end of the new lease terms, adjusted downward as necessary. Assets classified as held-for-sale are carried at the lower of carrying amount, or the fair value less cost to sell.

20

ATEL 17, LLC

NOTES TO THE FINANCIAL STATEMENTS

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

17

TABLE OF CONTENTS

ATEL 17, LLC

NOTES TO THE FINANCIAL STATEMENTS

2. Summary of significant accounting policies: - (continued)

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.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.

Notes receivable, unearned interest income and related revenue recognition:

The Company records all future paymentsInitial direct costs:

Incremental costs of principal and interest on notes as notes receivable, whicha lease that would not have been incurred if the lease had not been obtained are then offset by the amount of any related unearned interest income. For financial statement purposes, the Company reports only the net amount of principal due on the balance sheet. The unearned interest is recognized over the term of the note and the income portion of each note payment is calculated so as to generate a constant rate of return on the net balance outstanding. Any fees or costs related to notes receivable are recorded as part of the net investment in notes receivablecapitalized and amortized over the term of the loan.

Allowances for losses on notes receivable are typically established based on historical charge off and collection experience and the collectability of specifically identified borrowers and billed and unbilled receivables. 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 payments 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.

Notes receivable are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management periodically reviews the creditworthiness of companies with note payments outstanding less than 90 days. Based upon management’s judgment, the related notes may be placed on non-accrual status. Notes placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid receivable is probable. Until such time, all payments received are applied only against outstanding principal balances.

Initial direct costs:

The Company capitalizes initial directlease term. All other costs (“IDC”) associated with the origination and funding of lease assets and investments in notes receivable. IDC includes both internal costs (e.g., the costs of employees’ activities in connection with successful lease and loan originations) and external broker fees incurred with such originations. The costs are amortized on a lease by lease (or note by note) basis based on actual lease term using a straight-line method for operating leases and the effective interest rate method for notes receivable. Upon disposalexecution of the underlying lease assets and notes receivable, both the initial direct costs and the associated accumulated amortization are relieved. Costs related toCompany’s leases or notes receivable that are not consummated are not eligible for capitalization as initial direct costs and are expensed as acquisition expense.incurred.

​

18

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ATEL 17, LLC

NOTES TO THE FINANCIAL STATEMENTS

2. Summary of significant accounting policies: - (continued)

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.

Asset valuation:

Recorded values of the Company’s leased asset portfolio are reviewed each quarter to confirm the reasonableness of established residual values and to determine whether there is indication that an asset impairment might have taken place. The Company uses a variety of sources and considers many factors in evaluating whether the respective book values of its assets are appropriate. In addition, the Company may direct a residual value review at any time if it becomes aware of issues regarding the ability of a lessee to continue to make payments on its lease contract. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than the net book value. The estimated undiscounted future cash flows are the sum of the residual value of the asset at the end of the asset’s lease contract and undiscounted future rents from the existing lease contract. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date. Upward adjustments for impairments recognized in prior periods are not made in any circumstances.

21

ATEL 17, LLC

NOTES TO THE FINANCIAL STATEMENTS

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 Company’s principal decision makers are the Managing Member’s Chief Executive Officer and its Chief Financial Officer and Chief Operating Officer. The Company believes that its equipment leasing business operates as one reportable segment because: a) the Company measures profit and loss at the equipment portfolio level as a whole; b) the principal decision makers do not review information based on any operating segment other than the equipment leasing transaction portfolio; c) the Company does not maintain discrete financial information on any specific segment other than its equipment financing operations; d) the Company has not chosen to organize its business around different products and services other than equipment lease financing; and e) the Company has not chosen to organize its business around geographic areas.

The primary geographic region in which the Company seeks leasing opportunities is North America. For the yearyears ended December 31, 2017,2023 and 2022, all of the Company’s current operating revenues and long-lived assets relate to customers domiciled in the United States.

Investment in securities:

From time to time, the Company may receive rights to purchase equity securities of its borrowers or receive warrants in connection with its lending arrangements.

Investment in equity securities

The Company’s equity securities registered for public sale with readily determinable fair values are measured at fair value with any changes in fair value recognized in the Company’s results of operations. The Company’s equity securities that do not have readily determinable fair values are measured at cost minus impairment, and adjusted for changes in observable prices. Factors considered by the Managing Member in determining fair value include, but are not limited to, available financial information, the issuer’s ability to meet its current obligations and indications of the issuer’s subsequent ability to raise capital. The fair value of the Company’s investment equity securities was de minimis as of December 31, 2023, and was $21 thousand as of December 31, 2022. All of such securities were publicly held and had readily determinable fair values. The Company recorded $10 thousand and $287 thousand of unrealized losses on its investment equity securities for the years ended December 31, 2023 and 2022, respectively. During 2023, the Company sold investment securities valued at approximately $11 thousand and realized a gain of $2 thousand on the sale. There was no such sale during the prior year.

​

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. The Company recorded unrealized gains of $11 thousand and unrealized losses of $4 thousand on fair valuation of its warrants during 2017 and 2016, respectively. The estimated fair value of the Company’s portfolio of warrants was $62$77 thousand and $51$138 thousand foras of December 31, 2023 and 2022, respectively. The Company recorded unrealized losses of $61 thousand and $4 thousand on fair valuation of its warrants during 2023 and 2022, respectively.

​

Options - short position

During the yearsyear ended December 31, 20172021, the Company had sold options contracts on a publicly traded investment security. Such contracts were sold in two tranches as follows: 125 options at a premium of $3.00 and 2016,75 options at $1.64 per share. Accordingly, the Company recorded a liability for the initial options value totaling $50 thousand. The options contracts both expired on January 21, 2022 with a strike price of $15.00 and $12.50, respectively. The Company realized gains totaling $1 thousand related to the expiration of the options during the year ended December 31, 2022.

22

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ATEL 17, LLC



NOTES TO THE FINANCIAL STATEMENTS

2. Summary of significant accounting policies: - (continued)

Unearned operating lease income:

The Company records prepayments on operating leases as a liability under the caption of unearned operating lease income. The liability is recorded when prepayments are received and recognized as operating lease revenue over the period to which the prepayments relate using a straight-line method.

Income Taxes:

The Company is treated as a partnership for federal income tax purposes. Pursuant to the provisions of Section 701 of the Internal Revenue Code, a partnership is not subject to federal income taxes. Accordingly, the Company has provided current franchise income taxes for only those states which levy income taxes on partnerships. For the years ended December 31, 2017 and 2016, theThe related provision for state income taxes was approximately $7$4 thousand and $8$5 thousand for the years ended December 31, 2023 and 2022, respectively. The Company does not have any entity level uncertain tax positions. The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions and is generally subject to examination by U.S. federal (or state and local) income tax authorities for three years from the filing of a tax return.

​

The tax bases of the Company’s net assets and liabilities vary from the amounts presented in these financial statements at December 31, 20172023 and 20162022 as follows (in thousands):

​

​

​

​

​

​

​

​

    

2023

    

2022

Financial statement basis of net assets

​

$

5,349

​

$

7,892

Tax basis of net assets (unaudited)

 

​

5,331

 

​

7,266

Difference

​

$

18

​

$

626

​

 
 2017 2016
Financial statement basis of net assets $18,707  $11,696 
Tax basis of net assets (unaudited)  20,689   13,445 
Difference $    (1,982)  $    (1,749) 

The primary differences between the tax bases of net assets and the amounts recorded in the financial statements are the result of differences in accounting for syndication costs and differences between the depreciation methods used in the financial statements and the Company’s tax returns.

The following reconciles the net lossincome reported in these financial statements to the loss reported on the Company’s federal tax return (unaudited) for the years ended December 31, 20172023 and 20162022 (in thousands):

​

​

​

​

​

​

​

​

    

2023

    

2022

Net income per financial statements

​

$

(490)

​

$

(556)

Tax adjustments (unaudited):

 

​

  

 

​

  

Adjustment to depreciation expense

 

​

622

 

​

242

Provision for losses and doubtful accounts

 

​

-

 

​

-

Adjustments to revenues

 

​

(19)

 

​

673

Adjustments to (loss) gain on sales of assets

​

​

-

​

​

(252)

Other

 

​

4

 

​

(2)

Income per federal tax return (unaudited)

​

$

117

​

$

105

​

 
 2017 2016
Net loss per financial statements $(481)  $(234) 
Tax adjustments (unaudited):
          
Adjustment to depreciation expense  (1,550)   (694) 
Provision for losses and doubtful accounts  18   — 
Adjustments to revenues  50   108 
Other  7   7 
Loss per federal tax return (unaudited) $ (1,956)  $    (813) 

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.

Per Unit data:

Net loss and distributions per Unit are based upon the weighted average number of members Units outstanding during the year.

20

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ATEL 17, LLC

NOTES TO THE FINANCIAL STATEMENTS

2. Summary of significant accounting policies: - (continued)

Recent accounting pronouncements:

In August 2016,March 2020, 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 PaymentsASU No. 2020-03, Codification Improvements to Financial Instruments (“ASU 2016-15”2020-03”). ASU 2016-15 addresses specific cash flow2020-03 improves and clarifies various financial instruments topics, including the current expected credit losses (CECL) standard issued in 2016. ASU 2020-03 includes seven different issues withthat describe the objectiveareas of reducingimprovement and the existing diversity in practice.related amendments to GAAP that are intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The amendments inhave different effective dates. The Company adopted this Update are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Thisnew accounting guidance is effective for the Company beginning on January 1, 2018. The2023. Such adoption of ASU 2016-15 did not have ahad no material impact on itsthe Company’s financial statements and disclosures.

​

23

ATEL 17, LLC

NOTES TO THE FINANCIAL STATEMENTS

In June 2016, the FASB issued Accounting Standards UpdateASU 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 inequipment under operating leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments inequipment under operating leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. EarlyThe Company adopted this new accounting guidance on January 1, 2023. Such adoption is permitted for fiscal years beginning after December 15, 2018. Management is currently evaluatinghad no material impact on the standardCompany’s financial statements 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.disclosures.

​

In February 2016,November 2018, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842)ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments — Credit Losses (“ASU 2016-02”2018-19”). The new standard will require lessees to recognize lease assets and lease liabilitiesclarifies certain aspects of the new CECL impairment model in ASU 2016-13. The amendment clarifies that receivables arising from operating leases with lease terms greaterare within the scope of ASC 842, rather than 12 months in the statement of financial position. Lessor accounting per ASU 2016-02 is mostly unchanged from the previous lease accounting under 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.ASC 326.

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.

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

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ATEL 17, LLC

NOTES TO THE FINANCIAL STATEMENTS

2. Summary of significant accounting policies: - (continued)

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. This guidance is effective for the Company beginning on January 1, 2018. The adoption of ASU 2016-01 did not have a material impact on its financial statements 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. This guidance is effective for the Company beginning on January 1, 2018. Management’s 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.

3. Concentration of credit risk and major customers:

The Company leases equipment to lessees and provides debt financing to borrowers in diversified industries. Leases and notes receivable are subject to the Managing Member’s credit committee review. The leases and notes receivable provide for the return of the equipment to the Company upon default.

As of December 31, 20172023 and 2016,2022, there were concentrations (greater than or equal to 10% as a percentage of total equipment cost) of equipment leased to lessees and/or financed for borrowers in certain industries as follows:

​

​

​

​

​

​

​

​

​

Percentage

​

​

​

of Total Equipment Cost

Industry

​

2023

​

2022

Construction

 

24

%  

​

24

%  

Chemical

 

20

%  

​

20

%  

Transportation, air

 

17

%  

​

17

%

Transportation, rail

 

14

%  

​

14

%  

​

  
 Percentage of
Total Equipment Cost
Industry 2017 2016
Railroad  33%   28% 
Agriculture  12%   16% 
Construction  12%   * 
Paper processing  *   15% 
Utilities  *   15% 
Refuse systems  *   12% 
*Less than 10%

During 20172023 and 2016,2022, certain lessees and/or financial borrowers generated significant portions (defined as greater than or equal to 10%) of the Company’s total leasing and lending revenues, excluding gains or losses on disposition of assets, as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

Percentage of Total Leasing

 

​

​

​

​

and Lending Revenues

Lessee

    

Type of Equipment

    

2023

​

2022

Holcim - Acm Management, Inc.

 

Mining

​

26

%  

​

26

%  

Mosaic Fertilizer, LLC

 

Material Handling

​

20

%  

​

20

%  

Union Pacific Railroad Company

​

Railroad

 

12

%  

​

12

%  

Signature Flight Support LLC

​

Aviation

​

11

%  

​

11

%  

​

 

​

 

​

​

​

​

​

​

 

​

​

​

​

​

​

​

​

   
  Percentage of Total Leasing
and Lending Revenues
Lessee Type of Equipment 2017 2016
Union Pacific Railroad Company  Railroad   26%   * 
Cargill, Inc.  Agriculture/Construction   16%   25% 
Indiana Michigan Power Company  Marine   10%   20% 
Waste Management of New York, LLC  Containers/Refuse systems   10%   18% 
Schenker, Inc.  Materials handling   *   10% 
*Less than 10%

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ATEL 17, LLC

NOTES TO THE FINANCIAL STATEMENTS

3. Concentration of credit risk and major customers: - (continued)

These percentages are not expected to be comparable in future periods due to anticipated changes in the mix of investments and/or lessees as a result of normal business activities.

​

​

24

ATEL 17, LLC

NOTES TO THE FINANCIAL STATEMENTS

4. Notes receivable, net:

The Company has various notes receivable from borrowers who have financed the purchase of equipment through the Company. As of December 31, 2017, the original terms of the notes are 36 months with interest rates ranging from 11.80% to 16.07% per annum. The notes are secured by the equipment financed and have maturity dates ranging from 2020 to 2021.

As of December 31, 2017, the minimum future payments receivable are as follows (in thousands):

 
Year ending December 31, 2018 $    862 
2019  793 
2020  461 
2021  56 
    2,172 
Less: portion representing unearned interest income  (359) 
    1,813 
Less: warrants – notes receivable discount  (24) 
Unamortized initial direct costs  5 
Notes receivable, net $1,794 

IDC amortization expense related to notes receivable and the Company’s operating leases for the years ended December 31, 2017 and 2016 are as follows (in thousands):

  
 2017 2016
IDC amortization – notes receivable $      4  $      — 
IDC amortization – lease assets  54   28 
Total $58  $28 

5. InvestmentsInvestment in equipment and leases, net:

The Company’s investment in equipment and leases consists of the following (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance

​

Additions/

​

Depreciation/

​

Balance

​

​

December 31, 

​

Dispositions/

​

Amortization

​

​

December 31, 

​

2022

    

Reclassifications

    

Expense

    

2023

Equipment under operating leases, net

$

6,543

​

$

-

​

$

(1,356)

​

$

5,187

Initial direct costs, net

 

46

​

 

-

​

 

(22)

​

 

24

Total

$

6,589

​

$

-

​

$

(1,378)

​

$

5,211

​

    
 Balance
December 31,
2016		 Additions Depreciation/
Amortization
Expense		 Balance
December 31,
2017
Net investment in operating leases $    6,766  $    4,135  $     (931)  $    9,970 
Initial direct costs, net of accumulated amortization of $82 at December 31, 2017 and $28 at December 31, 2016  167   117   (54)   230 
Total $6,933  $4,252  $(985)  $10,200 

Impairment of equipment:

As a result of impairment reviews, management determined that no impairment losses existed for the years ended December 31, 2023 and 2022.

The Company utilizes a straight line depreciation method over the term of the equipment lease for equipment onunder operating leases currently in its portfolio. Depreciation expense on the Company’s equipment totaled $931 thousand and $311 thousand$1.4 million for each of the respective years ended December 31, 20172023 and 2016. 2022. Total depreciation for 2023 and 2022 included $4 thousand and $14 thousand, respectively, of additional depreciation recorded to reflect year-to-date changes in estimated residual values of certain equipment generating revenue under month-to-month extensions. Such estimated residual values of equipment associated with leases on month-to-month extensions are evaluated at least semi-annually, and depreciation recorded for the change in the estimated reduction in value.

IDC amortization expense related to the Company’s operating leases totaled $54$22 thousand and $28$27 thousand for 2017the years ended December 31, 2023 and 2016,2022, respectively.

All of the Company’s lease asset purchases and capital improvements were made during the years from 2016 through 2017.2022.

23

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ATEL 17, LLC

NOTES TO THE FINANCIAL STATEMENTS

5. Investments in equipment and leases, net: - (continued)

Operating leases:

Property onunder operating leases consists of the following (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance

​

​

​

​

​

​

​

Balance

​

​

December 31, 

​

​

​

​

Reclassifications

​

December 31, 

​

    

2022

    

Additions

    

or Dispositions

    

2023

Construction

​

$

3,218

​

$

-

​

$

-

​

$

3,218

Mining

​

 

2,749

​

 

-

​

 

-

​

 

2,749

Aviation

​

 

2,327

​

 

-

​

 

-

​

 

2,327

Transportation, rail

​

​

1,723

​

​

-

​

​

-

​

​

1,723

Materials handling

​

 

1,249

​

 

-

​

 

-

​

 

1,249

Paper processing

​

 

1,058

​

 

-

​

 

-

​

 

1,058

Transportation, other

​

 

215

​

 

-

​

 

-

​

 

215

​

​

 

12,539

​

 

-

​

 

-

​

 

12,539

Less accumulated depreciation

​

 

(5,996)

​

 

(1,356)

​

 

-

​

 

(7,352)

Total

​

$

6,543

​

$

(1,356)

​

$

-

​

$

5,187

​

    
 Balance
December 31,
2016		 Additions Reclassifications

or Dispositions		 Balance
December 31,
2017
Transportation, rail $    1,956  $    1,723  $      —  $    3,679 
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   134   —   711 
Aviation  462   —   —   462 
Construction  285   957   —   1,242 
Transportation, other  96   1   —   97 
    7,077   4,135   —   11,212 
Less accumulated depreciation  (311)   (931)   —   (1,242) 
Total $6,766  $3,204  $—  $9,970 

The average estimated residual value for assets on operating leases was 39% and 48%27% of the assets’ original cost at both December 31, 20172023 and 2016, respectively.2022. There were no operating leases in non-accrual status at both December 31, 20172023 and 2016.2022.

25

ATEL 17, LLC

NOTES TO THE FINANCIAL STATEMENTS

At December 31, 2017,2023, the aggregate amounts of future minimum lease payments receivable are as follows (in thousands):

​

​

​

​

​

    

Operating

​

​

Leases

Year ending December 31, 2024

​

$

1,287

2025

​

 

632

2026

​

 

397

2027

​

 

329

2028

​

​

166

​

​

$

2,811

​

 
 Operating
Leases
Year ending December 31, 2018 $    1,597 
2019  1,576 
2020  1,395 
2021  910 
2022  697 
Thereafter  962 
   $7,137 

The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of December 31, 2017,2023, 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

- 50

Marine vessel

Aviation

15 - 20 – 30

Containers

Mining

10 - 15 – 20

Aviation

Paper processing

10 - 15 – 20

Mining

Construction

7 - 10 – 15

Paper processing

Materials handling

7 - 10 – 15

Agriculture

Transportation, other

7 –  - 10

Construction7 – 10
Materials handling7 – 10
Transportation7 – 10

​

24​

TABLE OF CONTENTS

ATEL 17, LLC

NOTES TO THE FINANCIAL STATEMENTS

6.5. Allowance for credit losses:

The Company's allowance for credit losses are as follows (in thousands):doubtful accounts:

 
 Accounts
Receivable
Allowance for
Doubtful
Accounts
   Operating
Leases
Balance December 31, 2016        — 
Provision of credit loss  18 
Balance December 31, 2017 $18 

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 December 31, 2017 and 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
   2017 2016
Pass $    1,813  $    1,446 
Special mention  —   — 
Substandard  —   — 
Doubtful  —   — 
Total $1,813  $1,446 

25

TABLE OF CONTENTS

ATEL 17, LLC

NOTES TO THE FINANCIAL STATEMENTS

6. Allowance for credit losses: - (continued)

At December 31, 2017 and December 31, 2016, investment in financing receivables is aged as follows (in thousands):

       
December 31, 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 $      —  $      —  $      —  $      —  $   1,813  $   1,813  $      — 
Total $—  $—  $—  $—  $1,813  $1,813  $— 

       
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 atallowance for doubtful accounts for the years ended December 31, 20172023 and 2016.2022.

7.

​

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 management and resale and for management of the Company.

The Operating Agreement allows for the reimbursement of costs incurred by the Managing Member and/or affiliates for providing administrative services to the Company. Administrative services provided include Company accounting, investor relations, legal counsel and lease and equipment documentation. The Managing Member is not reimbursed for services whereby it is entitled to receive a separate fee as compensation for such services, such as management of investments.

Each of AFS and ATEL Leasing Corporation (“ALC”) is a wholly-owned subsidiary of ATEL Capital Group, Inc. and performs services for the Company on behalf of the Managing Member. Acquisition services, equipment management, lease administration and asset disposition services are performed by ALC; investor relations, communications and general administrative services are performed by AFS.

Cost reimbursements to the Managing Member or its affiliates are based on its costs incurred in performing administrative services for the Company. These costs are allocated to each managed entity based on certain criteria such as total assets, number of investors or contributed capital based upon the type of cost incurred. The Managing Member believes that the costs reimbursed are the lower of (i) actual costs incurred on behalf of the Company or (ii) the amount the Company would be required to pay independent parties for comparable administrative services in the same geographic location.

The26

ATEL 17, LLC

NOTES TO THE FINANCIAL STATEMENTS

Pursuant to the Operating Agreement, the Managing Member and/or affiliates earned fees and billed for reimbursements pursuant to the Operating Agreement, during the years ended December 31, 20172023 and 20162022 as follows (in thousands):

​

​

​

​

​

​

​

​

​

2023

    

2022

Administrative costs reimbursed to Managing Member and/or affiliates

​

$

287

​

$

302

Asset management fees to Managing Member

​

 

219

​

 

224

Acquisition and initial direct costs paid to Managing Member

​

​

-

​

​

4

​

​

$

506

​

$

530

​

​

7. Non-recourse debt:

At December 31, 2023, non-recourse debt consists of notes payable to financial institutions. The note payments are due in monthly installments. Interest on the notes range from 3.82% to 4.66% per annum. The notes are secured by assignments of lease payments and pledges of assets. At December 31, 2023, gross operating lease rentals totaled approximately $643 thousand over the remaining lease terms and the carrying value of the pledged assets was $1.6 million. The notes mature from 2024 through 2028.

The non-recourse debt does not contain any material financial covenants. The debt is secured by a lien granted by the Company to the non-recourse lenders on (and only on) the discounted lease transactions. The lenders have recourse only to the following collateral: the specific leased equipment; the related lease chattel paper; the lease receivables; and proceeds of the foregoing items. The non-recourse obligation is payable solely out of the respective specific security and the Company does not guarantee (nor is the Company otherwise contractually responsible for) the payment of the non-recourse debt as a general obligation or liability of the Company. Although the Company does not have any direct or general liability in connection with the non-recourse debt apart from the security granted, the Company is directly and generally liable and responsible for certain representations, warranties, and covenants made to the lenders, such as warranties as to genuineness of the transaction parties’ signatures, as to the genuineness of the respective lease chattel paper or the transaction as a whole, or as to the Company’s good title to or perfected interest in the secured collateral, as well as similar representations, warranties and covenants typically provided by non-recourse borrowers and customary in the equipment finance industry, and are viewed by such industry as being consistent with non-recourse discount financing obligations. Accordingly, as there are no financial covenants or ratios imposed on the Company in connection with the non-recourse debt, the Company has determined that there are no material covenants with respect to the non-recourse debt that warrant footnote disclosure.

Future minimum payments of non-recourse debt are as follows (in thousands):

​

  
 2017 2016
Selling commissions, equal to 9% of the selling price of the Limited Liability Company Units, deducted from Other Members capital $    965  $    1,328 
Reimbursement of other syndication costs to Managing Member and/or affiliates, deducted from Other Members capital  643   885 
Special discounts  19   — 
Administrative costs reimbursed to Managing Member and/or affiliates  280   74 
Asset management fees to Managing Member  167   41 
Acquisition and initial direct costs paid to Managing Member  339   359 
   $    2,413  $    2,687 

​

​

​

​

​

​

​

​

​

​

​

    

Principal

    

Interest

    

Total

Year ending December 31, 2024

​

$

288

​

$

20

​

$

308

2025

​

​

73

​

​

13

​

​

86

2026

​

​

76

​

​

9

​

​

85

2027

​

​

80

​

​

6

​

​

86

2028

​

​

76

​

​

2

​

​

78

​

 

$

593

 

$

50

 

$

643

26

TABLE OF CONTENTS

ATEL 17, LLC

NOTES TO THE FINANCIAL STATEMENTS

8. 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, well as fees pertaining to the organization of the Fund, document preparation, regulatory filing fees, and accounting and legal costs. Syndication costs totaled $1.6 million and $2.2 million for the respective years ended December 31, 2017 and 2016.​

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 December 31, 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.​

9.

8. Borrowing facilities:

Effective June 30, 2017,2021, the Company entered into an amended and restated revolving credit facility agreement (the “Credit Facility”) which replaced a previous agreement which had an expiration date of June 2021. The Company participated with ATEL Capital Group and certain subsidiaries and affiliated funds in a $75 million revolving credit facility (the “Credit Facility”)entities as borrowers, with a syndicate of financial institutions as lenders. The Credit Facility had an aggregate amount of $55 million and is comprised of a working capital facility, an acquisition facility (the “Acquisition Facility”)sub-facility, institutional leasing sub-facility, and a warehouse facility (the “Warehouse Facility”)venture line sub-facility. The Company participates in the acquisition sub-facility and the institutional leasing sub-facility, on a several, but not joint, basis (i.e., the Company is liable only for the amount of the advances extended to the Company under those sub facilities, and affiliates, and a venture facility Asnot as to amounts extended to any co-borrower). The Company’s reinvestment period ended as of December 31, 2017,2022. As such, the Company will no longer purchase lease assets and does not have a need to use the Credit Facility. Accordingly, effective as of December 12, 2022, the Credit Facility is for an amount of $75 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 December 31, 2017, approximately $69 million was available under the facility,amended and the Company had no outstanding borrowings underceased to be a participant in the facility.Credit Facility.

10. Commitments:

27

ATEL 17, LLC

NOTES TO THE FINANCIAL STATEMENTS

9. Commitments and contingencies:

At December 31, 2017,2023, there were twono commitments to purchase lease assets andor to fund investments in notes receivable totaling $1.1 million and $5.2 million, respectively. These amounts represent contract awards which may be canceled by the prospective borrower/investee or may not be accepted by the Company. There were no cancellations subsequent to year-end.receivable.

11.

10. Guarantees:

The Company enters into contracts that contain a variety of indemnifications. The Company’s maximum exposure under these arrangements is unknown. However, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

The Managing Member knows of no facts or circumstances that would make the Company’s contractual commitments outside standard mutual covenants applicable to commercial transactions between businesses. Accordingly, the Company believes that these indemnification obligations are made in the ordinary course of business as part of standard commercial and industry practice, and that any potential liability under the Company’s similar commitments is remote. Should any such indemnification obligation become payable, the Company would separately record and/or disclose such liability in accordance with GAAP.

12.

11. Members’ capital:

A total of 2,551,7492,565,749 Units were issued and outstanding at both December 31, 2017, including2023 and 2022, inclusive of the 50 Units issued to the initial Member (Managing Member). The Fund was authorized to issue up to 15,000,000 Units in addition to the Units issued to the initial Member.

The Company has the right, exercisable at the Managing Member’s discretion, but not the obligation, to repurchase Units of a Unitholder who ceases to be a U.S. Citizen, for a price equal to 100% of the holder’s capital account. The Company is otherwise permitted, but not required, to repurchase Units upon a holder’s request. The repurchase of

27

TABLE OF CONTENTS

ATEL 17, LLC

NOTES TO THE FINANCIAL STATEMENTS

12. Members’ capital: - (continued)

Fund Units is made in accordance with Section 13 of the Amended and Restated Limited Liability Company Operating Agreement. The repurchase would be at the discretion of the Managing Member on terms it determines to be appropriate under given circumstances, in the event that the Managing Member deems such repurchase to be in the best interest of the Company; provided, the Company is never required to repurchase any Units. Upon the repurchase of any Units by the Fund, the tendered Units are cancelled. Units repurchased in prior periods were repurchased at amounts representing the original investment less cumulative distributions made to the Unitholder with respect to the Units. All Units repurchased during a quarter are deemed to be repurchased effective the last day of the preceding quarter, and are not deemed to be outstanding during, or entitled to allocations of net income, net loss or distributions for the quarter in which such repurchase occurs.

The Fund’s net income or net losses are to be allocated 100% to the members. From the commencement of the Fund until the initial closing date, net income and net loss were allocated 99% to the Managing Member and 1% to the initial members. Commencing with the initial closing date, net income and net loss are to be allocated 99.99% to the Other Members and 0.01% to the Managing Member.

Fund distributions are to be allocated 0.01% to the Managing Member and 99.99% to the Other Members. The Company commenced periodic distributions in February 2016.

​

28

ATEL 17, LLC

NOTES TO THE FINANCIAL STATEMENTS

Distributions to the Other Members for the years ended December 31, 20172023 and 20162022 were as follows (in thousands except Units and per Unit data):

​

​

​

​

​

​

​

​

​

2023

    

2022

Distributions

​

$

2,053

​

$

2,053

Weighted average number of Units outstanding

​

 

2,565,749

​

 

2,565,749

Weighted average distributions per Unit

​

$

0.80

​

$

0.80

​

  
 2017 2016
Distributions $1,640  $609 
Weighted average number of Units outstanding  2,058,512   832,350 
Weighted average distributions per Unit $      0.80  $      0.73 

13.

​

12. Fair value measurements:

Under applicable accounting standards, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

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, generally on a national exchange.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.

At December 31, 2017 and 2016, only the Company’s warrants were measured on a recurring basis. 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 portfolio, 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.

At December 31, 2023 and 2022, the Company’s warrants and investments securities were measured at fair value on a recurring basis. There were no assets or liabilities measured at fair value on a non-recurring basis as of December 31, 2023 and 2022.

2829

TABLE OF CONTENTS

ATEL 17, LLC



NOTES TO THE FINANCIAL STATEMENTS

13. Fair value measurements: - (continued)

Such fair value adjustments utilized the following methodology:

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 are determined using a Black-Scholes formulation of value based upon the stock price(s), the exercise price(s), the volatility of comparable venture companies, the time to maturity, and a risk free interest rate for the term(s) of the warrant exercise(s). As of December 31, 20172023 and 2016,2022, the calculated fair value of the Fund’s warrant portfolio approximated $62$77 thousand and $51$138 thousand, respectively. Such valuations are classified within Level 3 of the valuation hierarchy.

The following table reconciles the beginning and ending balances of the Company’s Level 3 recurring assets (in thousands):

​

​

​

​

​

​

​

​

​

Year Ended

​

​

December 31, 

​

​

2023

    

2022

Fair value of warrants at beginning of year

​

$

138

​

$

142

Unrealized loss on fair value adjustment for warrants

​

 

(61)

​

 

(4)

Fair value of warrants at end of year

​

$

77

​

$

138

​

Investment in equity securities (recurring)

The Company’s equity securities registered for public sale with readily determinable fair values are measured at fair value with any changes in fair value recognized in the Company’s results of operations. As of December 31, 2023, the fair value of the Company’s investment securities was deemed de minimis. As of December 31, 2022, the calculated fair value of such securities was $21 thousand. Such valuation is classified within Level 1 of the valuation hierarchy.

The fair value of investment securities that were accounted for on a recurring basis as of the December 31, 2023 and 2022, and classified as Level 1 are as follows (in thousands):

​

​

​

​

​

​

​

​

​

Year Ended

​

​

December 31, 

​

​

2023

​

2022

Fair value of securities at the beginning of year

​

$

21

​

$

308

Proceeds from securities sold

​

​

(13)

​

​

-

Realized gain on sales of securities

​

​

2

​

​

-

Unrealized loss on fair value adjustment for equity securities

​

​

(10)

​

​

(287)

Fair value of investment securities at the end of year

​

$

-

​

$

21

​

  
 2017 2016
Fair value of warrants at beginning of year $    51  $    — 
Fair value of new warrants, recorded during the year (included as a discount on notes receivable)  —   55 
Unrealized (loss) gain on fair valuation of warrants  11   (4) 
Fair value of warrants at end of year $62  $51 

30

ATEL 17, LLC

NOTES TO THE FINANCIAL STATEMENTS

The following table summarizes the valuation techniques and significant unobservable inputs used for the Company’s recurring and non-recurring fair value calculation/adjustments categorized as Level 3 in the fair value hierarchy at December 31, 20172023 and 2016:2022:

​

​

​

​

​

​

​

​

​

December 31, 20172023

Name

​

Valuation Frequency

Valuation Technique

Unobservable Inputs

Range of Input Values

Warrants

Name

​

Recurring

Frequency

​

Black-Scholes formulation

Technique

​

Stock price

Inputs

​

$3.88 – $4.59

(Weighted Average)

Warrants

Recurring

Black-Scholes formulation

Exercise

Stock price

​

$2.54 – $3.980.01 - $9.34 ($0.06)

​

Exercise price

​

$0.02 - $9.00 ($0.07)

​

Time to maturity (in years)

8.63 – 13.95

3.91 - 7.94 (4.08)

​

Risk-free interest rate

Annualized volatility

2.37% – 2.47%

31.90% - 83.00% (43.07%)

​

​

​

​

​

​

​

​

​

​

Annualized volatility37.63% – 42.49%

December 31, 2022

December 31, 2016
Name

​

Valuation Frequency

Valuation Technique

Unobservable Inputs

Range of Input Values

Warrants

Name

​

Recurring

Frequency

​

Black-Scholes formulation

Technique

​

Stock price

Inputs

​

$2.54 – $2.98

(Weighted Average)

Warrants

Recurring

Black-Scholes formulation

Exercise

Stock price

​

$2.54 – $3.980.01 - $11.71 ($0.07)

​

Exercise price

​

$0.02 - $9.00 ($0.07)

​

Time to maturity (in years)

​

9.63 – 14.95

4.91 - 8.94 (5.07)

​

Risk-free interest rate2.43% – 2.62%

Annualized volatility

​

49.08% – 108.99%

41.18% - 83.00% (51.34%)

​

The following disclosure of the estimated fair value of financial instruments is made in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification. Fair value estimates, methods and assumptions, set forth below for the Company’s financial instruments, are made solely to comply with the requirements of the Financial Instruments Topic and should be read in conjunction with the Company’s financial statements and related notes.

The Company determines the estimated fair value amounts by using market information and valuation methodologies that it considers appropriate and consistent with the fair value accounting guidance. Considerable judgment is required to interpret market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

29

TABLE OF CONTENTS

ATEL 17, LLC

NOTES TO THE FINANCIAL STATEMENTS

13. Fair value measurements: - (continued)

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

Non-recourse debt

The fair value of the Company’s notes receivablenon-recourse debt is generally estimated based upon various methodologies deployed by financial and credit management including, but not limited to, credit analysis, third party appraisal and/orusing discounted cash flow analysisanalyses, based upon current market valuation techniques and marketborrowing rates for similar types of lending arrangements, which may consider adjustments for impaired loans as deemed necessary.borrowing arranagements.

Commitments and Contingencies

Management has determined that no recognition for the fair value of the Company’s loan commitments is necessary because their terms are made on a market rate basis and require borrowers to be in compliance with the Company’s credit requirements at the time of funding.

The fair value of contingent liabilities (or guarantees) is not considered material because management believes there has been no event that has occurred wherein a guarantee liability has been incurred or will likely be incurred.

31

ATEL 17, LLC

NOTES TO THE FINANCIAL STATEMENTS

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 December 31, 20172023 and 20162022 (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements at December 31, 2023

​

    

Carrying

    

​

​

    

​

​

    

​

​

    

​

​

​

​

Amount

​

Level 1

​

Level 2

​

Level 3

​

Total

Financial assets:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Cash and cash equivalents

​

$

1,000

​

$

1,000

​

$

-

​

$

-

​

$

1,000

Warrants, fair value

​

 

77

​

 

-

​

 

-

​

 

77

​

 

77

Financial liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Non-recourse debt

​

​

593

​

​

-

​

​

-

​

​

579

​

​

579

​

     
 December 31, 2017
 Carrying
Amount		 Level 1 Level 2 Level 3 Total

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Fair Value Measurements at December 31, 2022

​

    

Carrying

    

​

​

    

​

​

    

​

​

    

​

​

​

​

Amount

​

Level 1

​

Level 2

​

Level 3

​

Total

Financial assets:
                         

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Cash and cash equivalents $    7,092  $    7,092  $      —  $      —  $    7,092 

​

$

2,644

​

$

2,644

​

$

-

​

$

-

​

$

2,644

Notes receivable, net  1,794   —   —   1,794   1,794 

Investment in equity securities

​

 

21

​

​

21

​

 

-

​

​

-

​

 

21

Warrants, fair value  62   —   —   62   62 

​

​

138

​

 

-

​

 

-

​

 

138

​

 

138

Financial liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Non-recourse debt

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1,115

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-

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-

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1,086

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1,086

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 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 

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Item 9.CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES

Item 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND

FINANCIAL DISCLOSURES

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None.

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Item 9A.CONTROLS AND PROCEDURES

Item 9A.  CONTROLS AND PROCEDURES

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Evaluation of disclosure controls and procedures

The Company’s Managing Member’s Chief Executive Officer, and Executive Vice President and Chief Financial and Operating Officer (“Management”), evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e)) as of the end of the period covered by this report. Based on the evaluation of the Company’s disclosure controls and procedures, the Chief Executive Officer and Executive Vice President and Chief Financial and Operating Officer concluded that as of the end of the period covered by this report, the design and operation of these disclosure controls and procedures were effective.

The Company does not control the financial reporting process, and is solely dependent on the Management of the Managing Member, who is responsible for providing the Company with financial statements in accordance with generally accepted accounting principles in the United States. The Managing Member’s disclosure controls and procedures, as they are applicable to the Company, means controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Act (15 U.S.C. 78aet seq.) is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Management’s Annual Report on Internal Control over Financial Reporting

The Management of the Managing Member is responsible for establishing and maintaining adequate internal control over financial reporting as that term is defined in Exchange Act Rule 13a-15(f) for the Company, and for performing an assessment of the effectiveness of internal control over financial reporting as of December 31, 2017.2023. The internal control process of the Managing Member, as it is applicable to the Company, was designed to provide reasonable assurance to Management regarding the preparation and fair presentation of published financial statements, and includes those policies and procedures that:

(1)Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles in the United States, and that the Company’s receipts and expenditures are being made only in accordance with authorization of the Management of the Managing Member; and
(2)Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.

All internal control processes, no matter how well designed, have inherent limitations. Therefore, even those processes determined to be effective can provide only reasonable assurance with respect to the reliability of financial statement preparation and presentation. Further, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

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Management of the Managing Member assessed the effectiveness of its internal control over financial reporting, as it is applicable to the Company, as of December 31, 2017.2023. In making this assessment, it used the criteria set forth inInternal Control — Integrated Framework (2013)issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on its assessment, Management of the Managing Member concluded that the Managing Member’s internal control over financial reporting, as it is applicable to the Company, was effective as of December 31, 2017.2023.

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This annual report does not include an audit report of the Company’s independent registered public accounting firm regarding internal control over financial reporting. Management’s internal control over financial reporting was not subject to audit by the Company’s independent registered public accounting firm pursuant to Section 989G of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which exempts non-accelerated filers from Section 404(b) of the Sarbanes-Oxley Act of 2002.

Changes in internal control

There were no changes in the Managing Member’s internal control over financial reporting, as it is applicable to the Company, during the year ended December 31, 20172023 that has materially affected, or is reasonably likely to materially affect, the Managing Member’s internal control over financial reporting, as it is applicable to the Company.

Item 9B. OTHER INFORMATION

None.

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PART III

Item 10.DIRECTORS AND EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT

Item 10. DIRECTORS AND EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT

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The registrant is a Limited Liability Company and has no officers or directors.

ATEL Managing Member, LLC (the “Managing Member” or “Manager”) is the Company’s Managing Member. The Managing Member is controlled by ATEL Financial Services, LLC (“AFS”), a wholly-owned subsidiary of ATEL Capital Group (“ACG” or “ATEL”). The outstanding voting capital stock of ATEL is owned 100% by Dean L. Cash.

Each of AFS and ATEL Leasing Corporation (“ALC”) is a wholly-owned subsidiary of ACG and performs services for the Company on behalf of the Managing Member. Acquisition services, equipment management, lease administration and asset disposition services are performed by ALC; investor relations and communications services, and general administrative services are performed by AFS. ATEL Securities Corporation (“ASC”), a wholly-owned subsidiary of AFS, performs distribution services in connection with the Company’s public offering of its Units.

The officers and directors of ATEL and its affiliates are as follows:

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Dean L. Cash

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Chairman of the Board, President and Chief Executive Officer of ATEL Managing Member, LLC (Managing Member)

Paritosh K. Choksi

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Director, Executive Vice President and Chief Financial Officer and Chief Operating Officer of ATEL Managing Member, LLC (Managing Member)

Vasco H. Morais

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Executive Vice President, Secretary and General Counsel of
ATEL Managing Member, LLC (Managing Member)

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Dean L. Cash, age 67,73, became chairman, president and chief executive officer of ATEL in April 2001. Mr. Cash joined ATEL as director of marketing in 1980 and served as a vice president since 1981, executive vice president since 1983 and a director since 1984. Prior to joining ATEL, Mr. Cash was a senior marketing representative for Martin Marietta Corporation, data systems division, from 1979 to 1980. From 1977 to 1979, he was employed by General Electric Corporation, where he was an applications specialist in the medical systems division and a marketing representative in the information services division. Mr. Cash was a systems engineer with Electronic Data Systems from 1975 to 1977, and was involved in maintaining and developing software for commercial applications. Mr. Cash received a B.S. degree in psychology and mathematics in 1972 and an M.B.A. degree with a concentration in finance in 1975 from Florida State University. Mr. Cash is an arbitrator with the American Arbitration Association and is qualified as a registered principal with the Financial Industry Regulatory Authority.

Paritosh K. Choksi, age 64,70, joined ATEL in 1999 as a director, senior vice president and its chief financial officer. He became its executive vice president and CFO/COO in April 2001. Prior to joining ATEL, Mr. Choksi was chief financial officer at Wink Communications, Inc. from 1997 to 1999. From 1977 to 1997, Mr. Choksi was with Phoenix American Incorporated, a financial services and management company, where he held various positions during his tenure, and was senior vice president, chief financial officer and director when he left the company. Mr. Choksi was involved in all corporate matters at Phoenix and was responsible for Phoenix’s capital market needs. He also served on the credit committee overseeing all corporate investments, including its venture lease portfolio. Mr. Choksi was a part of the executive management team which caused Phoenix’s portfolio to increase from $50 million in assets to over $2 billion. Mr. Choksi is a member of the board of directors of Syntel, Inc. Mr. Choksi received a bachelor of technology degree in mechanical engineering from the Indian Institute of Technology, Bombay; and an M.B.A. degree from the University of California, Berkeley.

Vasco H. Morais, age 59, joined ATEL in 1989 as general counsel. Mr. Morais manages ATEL’s legal department, which provides legal and contractual support in the negotiating, documenting, drafting, reviewing and funding of lease transactions. In addition, Mr. Morais advises on general corporate law matters, and assists on securities law issues. From 1986 to 1989, Mr. Morais was employed by the BankAmeriLease Companies, Bank of America’s equipment leasing subsidiaries, providing in-house legal support on the documentation of tax-oriented and non-tax oriented direct and leveraged lease transactions, vendor leasing programs and general corporate matters. Prior to the BankAmeriLease Companies, Mr. Morais was with the Consolidated Capital Companies in the Corporate and Securities Legal Department involved in drafting and reviewing contracts, advising on corporate law matters and securities law issues. Mr. Morais received a B.A. degree in 1982 from the University of California in Berkeley, a J.D. degree in 1986 from

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Golden Gate University Law School; and an M.B.A. (Finance) degree from Golden Gate University in 1997. Mr. Morais, an active member of the State Bar of California since 1986, served as co-chair of the Uniform Business Law Section of the State Bar of California and was inducted as a fellow of the American College of Commercial Finance Lawyers in 2010.

Audit Committee

The board of directors of the Managing Member acts as the audit committee of the Company. Dean L. Cash and Paritosh K. Choksi are members of the board of directors of the Managing Member and are deemed to be financial experts. They are not independent of the Company.

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Section 16(a) Beneficial Ownership Reporting Compliance

Based solely on a review of Forms 3, 4, and 5, the Company is not aware of any failures to file reports of beneficial ownership required to be filed during or for the year ended December 31, 2017.2023.

Code of Ethics

A Code of Ethics that is applicable to the Company, including the Chief Executive Officer and Chief Financial Officer and Chief Operating Officer of its Manager, ATEL Managing Member, LLC, or persons acting in such capacity on behalf of the Company, is included as Exhibit 14.1 to this report.

Item 11. EXECUTIVE COMPENSATION

The registrant has no officers or directors.

Set forth hereinafter is a description of the nature of remuneration paid and to be paid to the Manager and its affiliates. The amount of such remuneration paid for the years ended December 31, 20172023 and 20162022 is set forth in Item 8 of this report under the caption “Financial Statements and Supplementary Data — Notes to Financial Statements — Related party transactions,” at Note 76 thereof, which information is hereby incorporated by reference.

Asset Management Fee and Carried Interest

The Company pays the Manager an annual Asset Management Fee in an amount equal to 1.25% of the aggregate Purchase Price of Portfolio Assets acquired by the Fund through the end of each month during the period. Upon commencement of the Operating State; the period starting with the final sale of Units and ending six calendar years after the final sale of units, and the first two years of the Liquidating Stage; the period occurring after the Operating Stage until the final sale of units, the Company will pay the Manager an annual Asset Management Fee in an amount equal to an annualized 1.75% of the aggregate net Portfolio Assets, calculated for each month during the period as the aggregate Purchase Price of Portfolio Assets as of the end of the month, less the amount of the aggregate Purchase Price of Portfolio Assets attributable to Portfolio Assets which have been sold or otherwise disposed by the Fund through the end of the month. The Asset Management Fee payable for services rendered during the reminder of the Liquidating Stage will be equal to an annualized 1.75% of the Book Value of Fund Assets less total cash reported as of the end of the most recent prior fiscal quarter or year, as the case may be. The Asset Management Fee is paid on a monthly basis.

The Manager supervises performance of all management activities, including, among other activities: the acquisition and financing of the investment portfolio, collection of lease and loan revenues, monitoring compliance by lessees borrowers with their contract terms, assuring that investment assets are being used in accordance with all operative contractual arrangements, paying operating expenses and arranging for necessary maintenance and repair of equipment and property in the event a lessee fails to do so, monitoring property, sales and use tax compliance and preparation of operating financial data. The Manager intends to delegate all or a portion of its duties and the Asset Management Fee to one or more of its affiliates who are in the business of providing such services.

The Manager also receives, as its Carried Interest, an amount equal to 0.01% of all Company Distributions.

Limitations on Fees

The Fund has adopted a single Asset Management Fee plus the Carried Interest as a means of compensating the Manager for sponsoring the Fund and managing its operations. While this compensation structure is intended to simplify management compensation for purposes of investor’s understanding, state securities administrators use a more

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complicated compensation structure in their review of equipment program offerings in order to assure that those offerings are fair under the states’ merit review guidelines. The total of all Front End Fees, the Carried Interest and the Asset Management Fee will be subject to the Asset Management Fee Limit in order to assure these state administrators that the Fund will not bear greater fees than permitted under the state merit review guidelines. The North American Securities Administrators Association, Inc. (“NASAA”) is an organization of state securities administrators, those state

36

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government agencies responsible for qualifying securities offerings in their respective states. NASAA has established standards for the qualification of a number of different types of securities offerings and investment products, including its Statement of Policy on Equipment Programs (the “NASAA Equipment Leasing Guidelines”). Article IV, Sections C through G of the NASAA Equipment Leasing Guidelines establish the standards for payment of reasonable carried interests, promotional interests and fees for equipment acquisition, management, resale and releasing services to equipment leasing program sponsors. Article IV, Sections C through G of the NASAA Equipment Leasing Guidelines set the maximum compensation payable to the sponsor and its affiliates from an equipment leasing program such as the Fund. The Asset Management Fee Limit will equal the maximum compensation payable under Article IV, Sections C through G of the NASAA Equipment Leasing Guidelines as in effect on the date of the Fund’s prospectus (the “NASAA Fee Limitation”). Under the Asset Management Fee Limit, the Fund will calculate the maximum fees payable under the NASAA Fee Limitation and guarantee that the Asset Management Fee it will pay the Manager and its Affiliates, when added to its Carried Interest, will never exceed the fees and interest payable to a sponsor and its affiliates under the NASAA Fee Limitation.

Asset Management Fee Limit. The Asset Management Fee Limit will be calculated each year during the Fund’s term by calculating the maximum amount of fees that would be payable to the Manager from the Initial Closing Date though the end of the year in question under Article IV, Sections C through G, and Article V, Section F, of the North American Securities Administrators Association Statement of Policy on Equipment Programs in effect as of the initial effective date of the Fund’s Registration Statement on Form S-1 for the initial public offering of its Units (the “NASAA Guidelines”). For purposes of the application of the NASAA Guidelines, all Portfolio Assets will be deemed “Equipment” as defined in the NASAA Guidelines. To the extent that the total amount paid to the Manager through the end of such year as the Asset Management Fee and the Carried Interest would cause the total compensation to exceed the aggregate amount of fees that would have been payable a calculated under the NASAA Guidelines through the end of that year, the Asset Management Fee and/or Carried Interest for the year will be reduced to equal the maximum aggregate fees that would have been payable under the NASAA Guidelines through the end of that year. The limitations set forth in this Section 8.3 will be subject to adjustment pursuant to the limitations imposed under Section 15.7 relating to the Minimum Investment in Equipment.

Minimum Investment in Equipment/Maximum Front-End Fees. The Manager must commit not less than 85.875% of the Gross Proceeds to Investment in Equipment, with the balance thereof available to pay Organization and Offering Expenses and Front End Fees, however designated. Under the North American Securities Administrators Association, Inc. (“NASAA”) Statement of Policy concerning Equipment Programs in effect as of the initial effective date of the Fund’s Registration Statement on Form S-1 for the initial public offering of its Units (referred to herein as the “NASAA Guidelines”), the Fund is required to commit a minimum percentage of the Gross Proceeds to Investment in Equipment, which shall be deemed to be Portfolio Assets for the purposes of this Agreement, calculated as the greater of: (i) 80% of the Gross Proceeds reduced by 0.0625% for each 1% of indebtedness encumbering the Fund’s Portfolio Assets; or (ii) 75% of such Gross Proceeds. The maximum amounts to be paid under the terms of this Agreement are subject to the application of the Asset Management Fee Limit provided in Section 8.3, which limits the annual amount payable to the Manager and its Affiliates as the Asset Management Fee and the Carried Interest to an aggregate not to exceed the maximum amount of fees that would be payable to the Manager under specified provisions of the NASAA Guidelines. Upon completion of the offering of Units, final commitment of Net Proceeds to acquisition of Portfolio Assets and establishment of final levels of permanent portfolio debt encumbering such Portfolio Assets, the Manager shall calculate the maximum carried interest and promotional interest payable to the Manager and its Affiliates under the NASS Guidelines and compare such total permitted fees to the total of the Asset Management Fee and Carried Interest. If and to the extent that the fees exceed the Asset Management Fee Limit provided in Section 8.3, the fees payable to the Manager and its Affiliates shall be reduced as described herein. In such event, Section 8.3 of this Agreement shall be amended immediately to reduce the amounts calculated as the Carried Interest by an amount sufficient to cause the total of such compensation to comply with the limitations in the NASAA Guidelines on the aggregate of promotional interests and carried interests. A comparison of the Front End Fees actually paid by the End and the NASAA Guideline maximums fixed as set forth above shall be repeated, and any required adjustments shall be made, at least annually thereafter.

See Note 76 to the financial statements as set forth in Part II, Item 8, Financial Statements and Supplementary Data, for amounts paid.

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Item 12.SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

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Security Ownership of Certain Beneficial Owners

At December 31, 2017,2023, no investor is known to hold beneficially more than 5% of the issued and outstanding Units.

Security Ownership of Management

The parent of ATEL Managing Member, LLC is the beneficial owner of Limited Liability Company Units as follows:

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(1)


Title of Class

(2)

Name and Address of

Beneficial Owner

(3)

Amount and Nature of

Beneficial Ownership

(4)

Percent of

Class

Limited Liability Company Units

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ATEL Financial Services, LLC

The Transamerica Pyramid
600
505 Montgomery Street, 9th7th Floor
San Francisco, CA 94111

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Initial Limited Liability

Company Units

50 Units ($500)

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0.0020%

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Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

See Item 8 of this report under the caption “Financial Statements and Supplementary Data — Notes to Financial Statements — Related party transactions” at Note 76 thereof.

Item 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

During the years ended December 31, 20172023 and 2016,2022, the Company incurred audit fees with its principal auditors totaling $111$76 thousand and $31$107 thousand, respectively.

Audit fees consist of the aggregate fees and expenses billed in connection with the audit of the Company’s annual financial statements and the review of the financial statements included in the Company’s quarterly reports on Form 10-Q.10- Q.

The board of directors of the Managing Member acts as the audit committee of the registrant. Engagements for audit services, audit related services and tax services are approved in advance by the Chief Financial Officer of the Managing Member acting on behalf of the board of directors of the Managing Member in its role as the audit committee of the Company.

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PART IV

Item 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

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(a)

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(a)

Financial Statements and Schedules

1.Financial Statements

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1.

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Financial Statements

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Included in Part II of this report:

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Report of Independent Registered Public Accounting Firm (Moss Adams LLP, San Francisco, CA, PCAOB ID: 659)

11

14

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Balance Sheets at December 31, 20172023 and 20162022

12

15

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StatementStatements of Operations for the years ended December 31, 20172023 and 20162022

13

16

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Statements of Changes in Members’ Capital for the years ended December 31, 20172023 and 20162022

14

17

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Statements of Cash Flows for the years ended December 31, 20172023 and 20162022

15

18

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Notes to Financial Statements

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16

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2.

2.

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Financial Statement Schedules

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All schedules for which provision is made in the applicable accounting regulations of the Securities and Exchange Commission are not required under the related instructions or are inapplicable and, therefore, have been omitted.

(b)Exhibits

(3) and (4) Amended and Restated Limited Liability Company Operating Agreement, included as exhibit B to the Prospectus effective January 5, 2016 as filed on December 15, 2015 (File Number 333-203841) is hereby incorporated herein by reference

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(14.1)

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(b)

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Exhibits

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(3) and (4) Amended and Restated Limited Liability Company Operating Agreement, included as exhibit B to the Prospectus effective January 5, 2016 as filed on December 15, 2015 (File Number 333-203841) is hereby incorporated herein by reference

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(4.1)

Description of the Registrant’s Securities

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(14.1)

Code of Ethics

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(31.1)

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(31.1)

Certification of Dean L. Cash pursuant to Rules 13a-14(a)/15d-14(a)

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(31.2)

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(31.2)

Certification of Paritosh K. Choksi pursuant to Rules 13a-14(a)/15d-14(a)

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(32.1)

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(32.1)

Certification of Dean L. Cash pursuant to 18 U.S.C. section 1350

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(32.2)

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(32.2)

Certification of Paritosh K. Choksi pursuant to 18 U.S.C. section 1350

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(101.INS)

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(101.INS)

Inline XBRL Instance Document

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(101.SCH)

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(101.SCH)

Inline XBRL Taxonomy Extension Schema Document

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(101.CAL)

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(101.CAL)

Inline XBRL Taxonomy Extension Calculation Linkbase Document

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(101.LAB)

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(101.LAB)

Inline XBRL Taxonomy Extension Label Linkbase Document

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(101.PRE)

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(101.PRE)

Inline XBRL Taxonomy Extension Presentation Linkbase Document

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(101.DEF)

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(101.DEF)

Inline XBRL Taxonomy Extension Definition Linkbase Document

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(104)

The cover page for the Company’s Annual Report on Form 10-K for the year ended

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December 31, 2023 has been formatted in Inline XBRL

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: March 26, 201820, 2024

ATEL 17, LLC (Registrant)

(Registrant)

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By:

ATEL Managing Member, LLC

Managing Member of Registrant

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By:

/s/ Dean L. Cash

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Dean L. Cash

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Chairman of the Board, President and
Chief Executive Officer of ATEL Managing Member, LLC
(Managing (Managing Member)

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By:

/s/ Paritosh K. Choksi

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Paritosh K. Choksi

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Director, Executive Vice President and Chief Financial Officer
and Chief Operating Officer of ATEL Managing Member, LLC
(Managing (Managing Member)

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By:

/s/ Samuel Schussler

Samuel Schussler,
Raymond A. Rigo

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Raymond A. Rigo

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Senior Vice President, and Chief Accounting OfficerFund Controller of
ATEL Managing

Member, LLC (Managing Member)

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

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SIGNATURE

CAPACITIES

DATE

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/s/ Dean L. Cash

Dean L. Cash

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Chairman of the Board, President and Chief Executive
Officer of ATEL Managing Member, LLC (Managing Member)

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March 26, 201820, 2024

Dean L. Cash

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/s/ Paritosh K. Choksi

Paritosh K. Choksi

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Director, Executive Vice President and Chief Financial
Officer and Chief Operating Officer of ATEL Managing Member, LLC (Managing Member)

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March 26, 201820, 2024

Paritosh K. Choksi

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/s/ Samuel Schussler

Samuel SchusslerRaymond A. Rigo

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Senior Vice President, and Chief Accounting OfficerFund Controller of
ATEL Managing Member, LLC (Managing Member)

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March 26, 201820, 2024

Raymond A. Rigo

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No proxy materials have been or will be sent to security holders. An annual report will be furnished to security holders subsequent to the filing of this report on Form 10-K, and copies thereof will be furnished supplementally to the Commission when forwarded to the security holders.

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