Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 31, 2021 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2021 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-50687 | |
Entity Registrant Name | ATEL CAPITAL EQUIPMENT FUND X LLC | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 68-0517690 | |
Entity Address, Address Line One | The Transamerica Pyramid | |
Entity Address, Address Line Two | 600 Montgomery Street, 9th Floor | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94111 | |
City Area Code | 415 | |
Local Phone Number | 989-8800 | |
Title of 12(g) Security | Limited Liability Company Units | |
No Trading Symbol Flag | true | |
Security Exchange Name | NONE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Smaller Reporting Company | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001186258 | |
Amendment Flag | false | |
Entity Units Outstanding | 13,971,486 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 1,183 | $ 1,401 |
Accounts receivable, net | 21 | 33 |
Investment in securities | 336 | 200 |
Equipment under operating leases, net | 2,223 | 3,222 |
Prepaid expenses and other assets | 81 | 6 |
Total assets | 3,844 | 4,862 |
Accounts payable and accrued liabilities: | ||
Due to Managing Member and/or affiliates | 22 | 12 |
Other | 196 | 50 |
Deposits due lessees | 1 | 1 |
Unearned operating lease income | 51 | 42 |
Total liabilities | 270 | 105 |
Commitments and contingencies | ||
Members' capital: | ||
Managing Member | 0 | 0 |
Other Members | 3,574 | 4,757 |
Total Members' capital | 3,574 | 4,757 |
Total liabilities and Members' capital | $ 3,844 | $ 4,862 |
Statements of Operations
Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Leasing activities: | ||||
Operating leases revenues, net | $ 297 | $ 259 | $ 880 | $ 803 |
Gain on sales of equipment under operating leases | 26 | 0 | 148 | 32 |
Other revenue | 28 | 1 | 47 | 1 |
Total operating revenues | 351 | 260 | 1,075 | 836 |
Operating expenses: | ||||
Depreciation of operating lease assets | 34 | 55 | 110 | 133 |
Asset management fees to Managing Member and/or affiliates | 0 | 19 | 7 | 54 |
Costs reimbursed to Managing Member and/or affiliates | 36 | 37 | 112 | 119 |
Amortization of initial direct costs | 1 | 1 | 2 | 2 |
Impairment losses on equipment | 0 | 0 | 58 | 0 |
Railcar maintenance | 113 | 29 | 311 | 85 |
Professional fees | 12 | 19 | 153 | 132 |
Franchise fees and taxes | 3 | 1 | 11 | 6 |
Outside services | 29 | 31 | 65 | 64 |
Insurance | 30 | 4 | 33 | 20 |
Storage fees | 25 | 35 | 114 | 103 |
Freight and shipping | 314 | 1 | 333 | 7 |
Other expenses | 20 | 22 | 59 | 73 |
Total operating expenses | 617 | 254 | 1,368 | 798 |
(Loss) income from operations | (266) | 6 | (293) | 38 |
Other (loss) income: | ||||
Loss on sales of investment securities | (4) | 0 | (4) | 0 |
Unrealized (loss) gain on fair value adjustment for investment securities | (262) | 0 | 247 | 0 |
Total other (loss) income | (266) | 0 | 243 | 0 |
Net (loss) income | (532) | 6 | (50) | 38 |
Net (loss) income: | ||||
Managing Member | 0 | 0 | 85 | 119 |
Other Members | (532) | 6 | (135) | (81) |
Net (loss) income | $ (532) | $ 6 | $ (50) | $ 38 |
Net (loss) income per Limited Liability Company Unit (Other Members) | $ (0.04) | $ 0 | $ (0.01) | $ (0.01) |
Weighted average number of Units outstanding | 13,971,486 | 13,971,486 | 13,971,486 | 13,971,486 |
Statements of Changes in Member
Statements of Changes in Members' Capital - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Beginning Balance | $ 4,106 | $ 4,415 | $ 4,757 | $ 5,969 |
Distributions to Other Members | (1,048) | (1,467) | ||
Distributions to Managing Member | (85) | (119) | ||
Net (loss) income | (532) | 6 | (50) | 38 |
Ending Balance | $ 3,574 | $ 4,421 | $ 3,574 | $ 4,421 |
Other Members [Member] | ||||
Beginning Balance (in Units) | 13,971,486 | 13,971,486 | 13,971,486 | 13,971,486 |
Beginning Balance | $ 4,106 | $ 4,415 | $ 4,757 | $ 5,969 |
Distributions to Other Members | 0 | 0 | (1,048) | (1,467) |
Net (loss) income | $ (532) | $ 6 | $ (135) | $ (81) |
Ending Balance (in Units) | 13,971,486 | 13,971,486 | 13,971,486 | 13,971,486 |
Ending Balance | $ 3,574 | $ 4,421 | $ 3,574 | $ 4,421 |
Managing Member [Member] | ||||
Distributions to Managing Member | (85) | (119) | ||
Net (loss) income | $ 85 | $ 119 |
Statements of Changes in Memb_2
Statements of Changes in Members' Capital (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Other Members [Member] | ||||
Weighted average distributions per Unit | $ 0 | $ 0 | $ 0.08 | $ 0.11 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating activities: | ||
Net (loss) income | $ (50) | $ 38 |
Adjustments to reconcile net (loss) income to cash (used in) provided by operating activities: | ||
Gain on sales of equipment under operating leases | (148) | (32) |
Loss on sales of investment in securities | 4 | 0 |
Unrealized gains on fair value adjustment for investment securities | (247) | 0 |
Depreciation of operating lease assets | 110 | 133 |
Amortization of initial direct costs | 2 | 2 |
Impairment losses on equipment | 58 | 0 |
Provision for credit losses | 0 | 141 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 12 | (111) |
Prepaid expenses and other assets | (40) | 69 |
Accounts payable, Managing Member and affiliates | 10 | (2) |
Accounts payable, other | 146 | (27) |
Unearned operating lease income | 9 | 142 |
Net cash (used in) provided by operating activities | (134) | 353 |
Investing activities: | ||
Proceeds from sales of investment securities | 107 | 0 |
Proceeds from sales of equipment under operating leases | 942 | 64 |
Net cash provided by investing activities | 1,049 | 64 |
Financing activities: | ||
Net cash used in financing activities | (1,133) | (1,586) |
Net decrease in cash and cash equivalents | (218) | (1,169) |
Cash and cash equivalents at beginning of period | 1,401 | 2,041 |
Cash and cash equivalents at end of period | 1,183 | 872 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for taxes | 6 | 12 |
Managing Member [Member] | ||
Operating activities: | ||
Net (loss) income | 85 | 119 |
Financing activities: | ||
Distributions to Members | (85) | (119) |
Other Members [Member] | ||
Operating activities: | ||
Net (loss) income | (135) | (81) |
Financing activities: | ||
Distributions to Members | $ (1,048) | $ (1,467) |
Organization and Limited Liabil
Organization and Limited Liability Company Matters | 9 Months Ended |
Sep. 30, 2021 | |
Organization and Limited Liability Company Matters [Abstract] | |
Organization and Limited Liability Company Matters | 1. Organization and Limited Liability Company matters: ATEL Capital Equipment Fund X, LLC (the “Company” or the “Fund”) was formed under the laws of the State of California on August 12, 2002 for the purpose of engaging in the sale of limited liability company investment units and acquiring equipment to engage in equipment leasing, lending and sales activities, primarily in the United States. The managing member of the Company is ATEL Financial Services, LLC (“AFS” or the “Managing Member), a California limited liability company. The Company may continue until December 31, 2022. The Company conducted a public offering of 15,000,000 Limited Liability Company Units (“Units”), at a price of $10 per Unit. On April 9, 2003, subscriptions for the minimum number of Units (120,000, representing $1.2 million) had been received (excluding subscriptions from Pennsylvania investors) and AFS requested that the subscriptions be released to the Company. On that date, the Company commenced operations in its primary business. As of March 11, 2005, the offering was terminated. As of that date, subscriptions for 14,059,136 Units ($140.6 million) had been received, of which 87,650 Units ($720 thousand) were subsequently rescinded or repurchased (net of distributions paid and allocated syndication costs, as applicable) by the Company through September 30, 2021. As of September 30, 2021, 13,971,486 Units remain issued and outstanding The Company’s principal objectives have been to invest in a diversified portfolio of equipment that (i) preserves, protects and returns the Company’s invested capital; (ii) generates regular distributions to the members of cash from operations and cash from sales or refinancing, with any balance remaining after certain minimum distributions to be used to purchase additional equipment during the reinvestment period (“Reinvestment Period”) (defined as six Pursuant to the terms of the Operating Agreement, AFS receives compensation and reimbursements for services rendered on behalf of the Company (See Note 5). The Company is required to maintain reasonable cash reserves for working capital, the repurchase of Units and contingencies. The repurchase of Units is solely at the discretion of AFS. The Company will pay AFS and affiliates of AFS substantial fees which may result in a conflict of interest. The Company will pay substantial fees to AFS and its affiliates before distributions are paid to investors even if the Company does not produce profits. Therefore, the financial position of the Company could change significantly. These unaudited interim financial statements should be read in conjunction with the financial statements and notes thereto contained in the report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of significant accounting policies: Basis of presentation: The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (‘‘GAAP’’) for interim financial information and with the instructions to Form 10-Q as mandated by the Securities and Exchange Commission. The unaudited interim financial statements reflect all adjustments which are, in the opinion of the Managing Member, necessary for a fair statement of financial position and results of operations for the interim periods presented. All such adjustments are of a normal recurring nature. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the full year. Footnote and tabular amounts are presented in thousands except as to Units and per Unit data. In preparing the accompanying financial statements, the Company has reviewed, as determined necessary by the Managing Member, events that have occurred after September 30, 2021, up until the issuance of the financial statements. No events were noted which would require disclosure in the footnotes to the financial statements. Cash and cash equivalents: Cash and cash equivalents include cash in banks and cash equivalent investments such as U.S. Treasury instruments with original and/or purchased maturities of ninety days or less. Use of estimates: The preparation of 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 those estimates. Such estimates primarily relate to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes and determination of the allowances for doubtful accounts. Accounts receivable: Accounts receivable represent the amounts billed under operating lease contracts which are due to the Company. Allowances for credit losses 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 charged off to the allowance on a specific identification basis. Amounts recovered 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 and accounts receivable. The Company places the majority of its cash deposits in noninterest-bearing accounts with financial institutions that have no less than $10 billion in assets. Such deposits are insured up to $250 thousand. The remainder of the Company’s cash is temporarily invested in U.S. Treasury denominated instruments. The concentration of such deposits and temporary cash investments is not deemed to create a significant risk to the Company. Accounts receivable represent amounts due from lessees or borrowers in various industries, related to equipment on operating leases. Equipment on operating leases and related revenue recognition: Equipment subject to operating leases is stated at cost. Depreciation is being recognized on a straight-line method over the terms of the related leases to the equipment’s estimated residual values. Off-lease equipment is generally not subject to depreciation. The Company depreciates all lease assets, in accordance with guidelines consistent with Accounting Standards Codification (“ASC”) 360-20-35-3, over the periods of the lease terms contained in each asset’s respective lease contract to the estimated residual value at the end of the lease contract. All lease assets are purchased only concurrent with the execution of a lease commitment by the lessee. Thus, the original depreciation period corresponds with the term of the original lease. Once the term of an original lease contract is completed, the subject property is typically sold to the existing user, re-leased to the existing user, or, when off-lease, is held for sale. Assets which are re-leased continue to be depreciated using the terms of the new lease agreements and the estimated residual values at the end of the new lease terms, adjusted downward as necessary. Assets classified as held-for-sale are carried at the lower of carrying amount, or the fair value less cost to sell (ASC 360-10-35-43). The Company does not use the equipment held in its portfolio, but holds it solely for lease and ultimate sale. In the course of marketing equipment that has come off-lease, management may determine at some point that re-leasing the assets may provide a superior return for investors and would then execute another lease. Upon entering into a new lease contract, management will estimate the residual value once again and resume depreciation. If, and when, the Company, at any time, determines that depreciation in value may have occurred with respect to an asset held-for-sale, the Company would review the value to determine whether a material reduction in value had occurred and recognize any appropriate impairment. All lease assets, including off-lease assets, are subject to the Company’s quarterly impairment analysis, as described below. Maintenance costs associated with the Fund’s portfolio of leased assets are expensed as incurred. Major additions and betterments are capitalized. Operating lease revenue is recognized on a straight-line basis over the term of the underlying leases. The initial lease terms will vary as to the type of equipment subject to the leases, the needs of the lessees and the terms to be negotiated, but initial leases are generally on terms from 36 to 120 months. The difference between rent received and rental revenue recognized is recorded as unearned operating lease income on the balance sheet. Operating leases are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management considers the equipment underlying the lease contracts for impairment and periodically reviews the credit worthiness of all operating lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related operating leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, revenues are recognized on a cash basis. Initial direct costs: Incremental costs of a lease that would not have been incurred if the lease had not been obtained are capitalized and amortized over the lease term. All other costs associated with the execution of the Company’s leases are expensed as incurred. Asset valuation: Recorded values of the Company’s leased asset portfolio are reviewed each quarter to confirm the reasonableness of established residual values and to determine whether there is indication that an asset impairment might have taken place. The Company uses a variety of sources and considers many factors in evaluating whether the respective book values of its assets are appropriate. In addition, the company may direct a residual value review at any time if it becomes aware of issues regarding the ability of a lessee to continue to make payments on its lease contract. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than their net book value. The estimated undiscounted future cash flows are the sum of the residual value of the asset at the end of the asset’s lease contract and undiscounted future rents from the existing lease contract. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date. Upward adjustments for impairments recognized in prior periods are not made in any circumstances. Segment reporting: The Company is not organized by multiple operating segments for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in one reportable operating segment in the North America. 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 sought leasing opportunities was North America. The table below summarizes geographic information relating to the sources, by nation, of the Company’s total revenues for the three and nine months ended September 30, 2021 and 2020, and long-lived tangible assets as of September 30, 2021 and December 31, 2020 (dollars in thousands): Three Months Ended September 30, 2021 % of Total 2020 % of Total Revenue United States $ 337 96 % $ 242 93 % Canada 14 4 % 18 7 % Total $ 351 100 % $ 260 100 % Nine Months Ended September 30, 2021 % of Total 2020 % of Total Revenue United States $ 1,037 97 % $ 784 94 % Canada 38 3 % 52 6 % Total $ 1,075 100 % $ 836 100 % As of September 30, As of December 31, 2021 % of Total 2020 % of Total Long-lived assets United States $ 2,155 97 % $ 3,163 98 % Canada 68 3 % 59 2 % Total $ 2,223 100 % $ 3,222 100 % Investment in securities: From time to time, the Company may purchase securities of its borrowers or receive warrants to purchase securities in connection with its lending arrangements. Purchased securities The Company’s purchased securities registered for public sale with readily determinable fair values are measured at fair value with any changes in fair value recognized in the Company’s results of operations. The Company’s purchased securities that do not have readily determinable fair values are measured at cost minus impairment and adjusted for changes in observable prices. Factors considered by the Managing Member in determining fair value include, but are not limited to, available financial information, the issuer’s ability to meet its current obligations and indications of the issuer’s subsequent ability to raise capital. As of September 30, 2021 and December 31, 2020, investment in equity securities totaled $336 thousand and $200 thousand, respectively. The entire amount at September 30, 2021 reflected the value of securities with readily determinable fair values. By contrast, the entire value of investment securities at December 31, 2020 related to securities that do not have readily determinable fair values. During the three months ended September 30, 2021, the Company recorded $262 thousand of unrealized losses on investment securities with readily determinable fair values. Unrealized gains of $247 thousand were recorded during the nine months ended September 30, 2021. These changes in unrealized gains and losses reflect the fair market value of a privately held security which converted to a publicly traded security upon completion of the borrower’s initial public offering in February 2021. Prior to December 31, 2020, the Company only held securities that do not have readily determinable fair values. The Company did not hold any private equities at September 30, 2021. Cumulative adjustments totaling $98 thousand have been recorded to reduce the value of investment securities that do not have readily determinable fair values held as of September 30, 2021 based on changes in observable prices. During the three and nine months ended September 30, 2021, the company sold investment securities with a value of approximately $111 thousand and realized a loss of $4 thousand on the sale. There were no such sales for the same respective periods in 2020. In addition, there were no impairment losses on investment securities during the three- and nine-month periods ended at September 30, 2021 and 2020. Per Unit data: Net (loss) income and distributions per Unit are based upon the weighted average number of Other Members’ Units outstanding during the period. Fair value: Fair value measurements and disclosures are based on a fair value hierarchy as determined by significant inputs used to measure fair value. The three levels of inputs within the fair value hierarchy are defined as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, generally on a national exchange. Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuations in which all significant inputs are observable in the market. Level 3 – Valuation is modeled using significant inputs that are unobservable in the market. These unobservable inputs reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. The Company’s valuation policy is determined by members of the Asset Management, Credit and Accounting departments. Whenever possible, the policy is to obtain quoted market prices in active markets to estimate fair values for recognition and disclosure purposes. Where quoted market prices in active markets are not available, fair values are estimated using discounted cash flow analyses, broker quotes, and information from third party remarketing agents, third party appraisals of collateral and/or other valuation techniques. These techniques are significantly affected by certain of the Company’s assumptions, including discount rates and estimates of future cash flows. Potential taxes and other transaction costs are not considered in estimating fair values. As the Company is responsible for determining fair value, an analysis is performed on prices obtained from third parties. Such analysis is performed by asset management and credit department personnel who are familiar with the Company’s investments in equipment, notes receivable and equity securities of venture companies. The analysis may include a periodic review of price fluctuations and validation of numbers obtained from a specific third party by reference to multiple representative sources. Recent accounting pronouncements: In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-03, Codification Improvements to Financial Instruments (“ASU 2020-03”). ASU 2020-03 improves and clarifies various financial instruments topics, including the current expected credit losses (CECL) standard issued in 2016. ASU 2020-03 includes seven different issues that describe the areas of improvement and the related amendments to GAAP that are intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The amendments have different effective dates. Management is currently evaluating the effect of adopting this new accounting guidance but does not expect adoption will have a material impact on the Fund’s financial statements and disclosures. In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments — Credit Losses (Topic 326) (“ASU 2016-13”). The main objective of this Update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments affect entities holding financial assets and equipment under operating leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, equipment under operating lease, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. Management is currently evaluating the standard and expects the update may potentially result in the increase in the allowance for credit losses given the change to estimated losses over the contractual life adjusted for expected prepayments. In November 2018, the FASB issued Accounting Standards Update 2018-19, Codification Improvements to Topic 326, Financial Instruments — Credit Losses (“ASU 2018-19”). The new standard clarifies certain aspects of the new CECL impairment model in ASU 2016-13. The amendment clarifies that receivables arising from operating leases are within the scope of ASC 842, rather than ASC 326. Management is currently evaluating the impact of the standard on the financial statements and related disclosure requirements. On August 15, 2019, the FASB issued a proposed ASU that would grant certain companies additional time to implement FASB standards on CECL, and hedging. The proposed ASU defers the effective date for CECL to fiscal periods beginning after December 15, 2022, including interim periods within those fiscal years; and defers the effective dates for hedging to fiscal periods beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The ASU was approved on October 16, 2019. In February 2020, the FASB issued ASU 2020-02 and delayed the effective date of Topic 326 until fiscal year beginning after December 15, 2022. |
Allowance for Credit Losses
Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2021 | |
Allowance for Credit Losses [Abstract] | |
Allowance for Credit Losses | 3. Allowance for credit losses: The Company’s allowance for credit losses are as follows (in thousands): Allowance for Doubtful Accounts Operating Leases Balance December 31, 2019 $ 190 Provision for credit losses 141 Balance September 30, 2020 $ 331 Balance December 31, 2020 $ 217 Provision for credit losses — Write-off (217) Balance September 30, 2021 $ — |
Equipment Under Operating Lease
Equipment Under Operating Leases, Net | 9 Months Ended |
Sep. 30, 2021 | |
Equipment Under Operating Leases, Net [Abstract] | |
Equipment Under Operating Leases, Net | 4. Equipment under operating leases, net: The Company’s equipment under operating leases, net consists of the following (in thousands): Depreciation/ Amortization Balance Reclassifications Expense or Balance December 31, Additions / Dispositions Amortization September 30, 2020 and Impairment Losses of Leases 2021 Equipment under operating leases, net $ 1,978 $ (771) $ (110) $ 1,097 Assets held for sale or lease, net 1,240 (118) — 1,122 Initial direct costs, net 4 2 (2) 4 Total $ 3,222 $ (887) $ (112) $ 2,223 The Company utilizes a straight line depreciation method for equipment in all of the categories currently in its portfolio of operating lease transactions. Depreciation expense on the Company’s equipment totaled $34 thousand and $55 thousand for the respective three months ended September 30, 2021 and 2020. For the nine months ended September 30, 2021 and 2020, depreciation expense totaled $110 thousand and $133 thousand, respectively. Total depreciation for the nine-months periods of 2021 includes $3 thousand of additional depreciation which were recorded to reflect year-to-date changes in estimated residual values of certain equipment generating revenue under month-to-month extensions. All of such adjustments were recorded prior to the three-month period ended September 30, 2021. The 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 estimated reduction in value. In addition, impairment losses totaling $58 thousand were recorded on equipment during the nine-months period ended September 30, 2021, none of which was recorded during the third quarter. There were no impairment losses recorded during the three and nine months ended September 30, 2020. Initial direct costs (“IDC”) amortization related to the Company’s operating leases were de minimis for both three months ended September 30, 2021 and 2020. IDC amortization also totaled All of the leased property was acquired in the years beginning with 2005 through 2011. As of September 30, 2021 and December 31, 2020, there were no lease contracts placed in non-accrual status. As of the same dates, the Company had certain other leases that have related accounts receivable aged 90 days or more that have not been placed on non-accrual status. In accordance with Company policy, such receivables are fully reserved. Management continues to closely monitor these leases, and all other lease contracts, for any actual change in collectability status and indication of necessary valuation adjustments. Operating leases: Property on operating leases consisted of the following (in thousands): Balance Balance December 31, Reclassification September 30, 2020 Additions /Dispositions 2021 Transportation, rail $ 11,062 $ — $ (3,366) $ 7,696 Trucks and trailers 344 — — 344 Aircraft 293 — — 293 Manufacturing 624 — — 624 Petro/natural gas 470 — (470) — Materials handling 90 — — 90 12,883 — (3,836) 9,047 Less accumulated depreciation (10,905) (110) 3,065 (7,950) Total $ 1,978 $ (110) $ (771) $ 1,097 The average estimated residual value for assets on operating leases was 10% and 13% of the assets’ original cost at September 30, 2021 and December 31, 2020, respectively. At September 30, 2021, the aggregate amounts of future minimum lease payments receivable were as follows (in thousands): Operating Leases Three months ending December 31, 2021 $ 178 Year ending December 31, 2022 623 2023 163 2024 77 2025 19 Thereafter 43 $ 1,103 The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of September 30, 2021, the respective useful lives of each category of lease assets in the Company’s portfolio were as follows (in years): Equipment category Useful Life Transportation, rail 35 - 50 Aircraft 20 - 30 Manufacturing 10 - 15 Petro/natural gas 10 - 15 Materials handling 7 - 10 Transportation, other 7 - 10 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 5. Related party transactions: The terms of the Operating Agreement provide that AFS 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 AFS in providing administrative services to the Company. Administrative services provided include Company accounting, finance/treasury, investor relations, legal counsel and lease and equipment documentation. AFS is not reimbursed for services whereby it is entitled to receive a separate fee as compensation for such services, such as management of equipment. The Company will be liable for certain future costs to be incurred by AFS to manage the administrative services provided to the Company. Each of ATEL Leasing Corporation (“ALC”) and AFS is a wholly-owned subsidiary of ATEL Capital Group and performs services for the Company. Acquisition services, equipment management, lease administration and asset disposition services are performed by ALC; investor relations, communications services and general administrative services for the Company are performed by AFS. Cost reimbursements to the Managing Member 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. During the three and nine months ended September 30, 2021 and 2020, AFS and/or affiliates earned fees and billed for reimbursements, pursuant to the Operating Agreement, as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Costs reimbursed to Managing Member and/or affiliates $ 36 $ 37 $ 112 $ 119 Asset management fees and adjustments to Managing Member and/or affiliates — 19 7 54 $ 36 $ 56 $ 119 $ 173 The Company’s Operating Agreement places an annual and cumulative limit for cost reimbursements to AFS and/or its affiliates. Any reimbursable costs incurred by AFS and/or affiliates during the year exceeding the annual and/or cumulative limits cannot be reimbursed in the current year, though such costs may be reimbursable in future years to the extent such amounts may be payable if within the annual and cumulative limits in such future years. The Fund is a finite life and self-liquidating entity, and AFS and its affiliates have no recourse against the Fund for the amount of any unpaid excess reimbursable administrative expenses. The Fund will continue to require administrative services from AFS and its affiliates through the end of its term, and will therefore continue to incur reimbursable administrative expenses in each year. The Fund has determined that payment of any amounts in excess of the annual and cumulative limits is not probable, and the date any portion of such amount may be paid, if ever, is uncertain. When the Fund completes its liquidation stage and terminates, any unpaid amount will expire unpaid, with no claim by AFS or its affiliates against any liquidation proceeds or any party for the unpaid balance. As of September 30, 2021 and December 31, 2020, the Company has not exceeded the annual and/or cumulative limitations discussed above. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 6. Commitments and contingencies: At September 30, 2021, the Company had no commitments to purchase lease assets or fund investments in notes receivable. |
Members' Capital
Members' Capital | 9 Months Ended |
Sep. 30, 2021 | |
Members' Capital [Abstract] | |
Members' Capital | 7. Members’ capital: Units issued and outstanding were 13,971,486 at both September 30, 2021 and December 31, 2020. The Company was authorized to issue up to 15,000,000 Units in addition to the Units issued to the initial members (50 Units). The Company ceased offering Units on March 11, 2005. The Company has the right, exercisable at the Managing Member’s discretion, but not the obligation, to repurchase Units of a Unitholder who ceases to be a U.S. Citizen, for a price equal to 100% of the holder’s capital account. The Company is otherwise permitted, but not required, to repurchase Units upon a holder’s request. The repurchase of Fund Units is made in accordance with Section 13 of the Amended and Restated Limited Liability Company Operating Agreement. The repurchase would be at the discretion of the Managing Member’s on terms it determines to be appropriate under given circumstances, in the event that the Managing Member’s 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. As defined in the Operating Agreement, the Company’s Net Income, Net Losses, and Distributions are to be allocated 92.5% to the Members and 7.5% to AFS. In accordance with the terms of the Operating Agreement, additional allocations of income were made to AFS for the nine months ended at September 30, 2021 and 2020. The amounts allocated were determined to bring AFS’s ending capital account balance to zero at the end of each year. Distributions to the Other Members were as follows (in thousands, except as to Units and per Unit data): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Distributions declared $ — $ — $ 1,048 $ 1,467 Weighted average number of Units outstanding 13,971,486 13,971,486 13,971,486 13,971,486 Weighted average distributions per Unit $ — $ — $ 0.08 $ 0.11 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 8. Fair value measurements: Under applicable accounting standards, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. At September 30, 2021, the Company’s investment securities were measured on a recurring basis. In addition, as of the same date, certain equipment deemed impaired were measured at fair value on a non-recurring basis. At September 30, 2020, the calculated fair value of the Company’s investment securities were deemed nominal. Such fair value adjustments utilized the following methodology: Investment in securities (recurring) The Company’s investment in securities registered for public sale that have 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 investments in publicly traded investment securities are valued based on their quoted market prices. The fair value of investment securities that were accounted for on a recurring basis for the three and nine months ended September 30, 2021 and 2020, and classified as Level 1 are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Fair value of securities at the beginning of period $ 709 $ — $ — $ — Conversion of previously held private securities — — 200 — Securities sold (111) — (111) — Unrealized (loss) gain on fair market valuation of securities (262) — 247 — Fair value of investment securities at the end of period $ 336 $ — $ 336 $ — Impaired lease and off-lease equipment (non-recurring) During the nine months ended September 30, 2021, the Company recorded fair value adjustments totaling $58 thousand to reduce the cost basis of certain transportation, rail and research equipment . Level 1 Level 2 Level 3 September 30, Estimated Estimated Estimated 2021 Fair Value Fair Value Fair Value Assets measured at fair value on a non-recurring basis (in thousands): Impaired lease and off-lease equipment $ 361 $ — $ — $ 361 The following table summarizes the valuation techniques and significant unobservable inputs used for the Company’s non-recurring fair value adjustment categorized as Level 3 in the fair value hierarchy at September 30, 2021. There was no adjustment at December 31, 2020. September 30, 2021 Valuation Unobservable Name Frequency Technique Inputs (Weighted Average) Lease and off-lease equipment Non-recurring Market Approach Third Party Agents' Pricing $0 - $9,500 Quotes - per equipment (total of $361,000) Equipment Condition Poor to Average The following disclosure of the estimated fair value of financial instruments is made in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification. Fair value estimates, methods and assumptions, set forth below for the Company’s financial instruments, are made solely to comply with the requirements of the Financial Instruments Topic and should be read in conjunction with the Company’s financial statements and related notes. The Company has determined the estimated fair value amounts by using market information and valuation methodologies that it considers appropriate and consistent with the fair value accounting guidance. Considerable judgment is required to interpret market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. Cash and cash equivalents The recorded amounts of the Company’s cash and cash equivalents approximate fair value because of the liquidity and short-term maturity of these instruments. Commitments and Contingencies Management has determined that no recognition for the fair value of the Company’s loan commitments is necessary because their terms are made on a market rate basis and require borrowers to be in compliance with the Company’s credit requirements at the time of funding. The fair value of contingent liabilities (or guarantees) is not considered material because management believes there has been no event that has occurred wherein a guarantee liability has been incurred or will likely be incurred. The following tables present a summary of the carrying value and fair value by level of financial instruments on the Company’s balance sheet at September 30, 2021 and December 31, 2020 (in thousands): Fair Value Measurements at September 30, 2021 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 1,183 $ 1,183 $ — $ — $ 1,183 Investment in securities 336 336 — — 336 Fair Value Measurements at December 31, 2020 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 1,401 $ 1,401 $ — $ — $ 1,401 |
Global Health Emergency
Global Health Emergency | 9 Months Ended |
Sep. 30, 2021 | |
Global Health Emergency [Abstract] | |
Global Health Emergency | 9. Global health emergency: On January 30, 2020, the World Health Organization declared the novel coronavirus outbreak a public health emergency. The Fund’s operations is located in California, which has restricted gatherings of people due to the coronavirus outbreak. At present, the Fund’s operations have not been adversely affected and continues to function effectively. Due to the dynamic nature of these unprecedented circumstances and possible business disruption, the Fund will continue to monitor the situation closely, but given the uncertainty about the situation, an estimate of the future impact, if any, cannot be made at this time. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation: The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (‘‘GAAP’’) for interim financial information and with the instructions to Form 10-Q as mandated by the Securities and Exchange Commission. The unaudited interim financial statements reflect all adjustments which are, in the opinion of the Managing Member, necessary for a fair statement of financial position and results of operations for the interim periods presented. All such adjustments are of a normal recurring nature. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the full year. Footnote and tabular amounts are presented in thousands except as to Units and per Unit data. In preparing the accompanying financial statements, the Company has reviewed, as determined necessary by the Managing Member, events that have occurred after September 30, 2021, up until the issuance of the financial statements. No events were noted which would require disclosure in the footnotes to the financial statements. |
Cash and cash equivalents | Cash and cash equivalents: Cash and cash equivalents include cash in banks and cash equivalent investments such as U.S. Treasury instruments with original and/or purchased maturities of ninety days or less. |
Use of estimates | Use of estimates: The preparation of 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 those estimates. Such estimates primarily relate to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes and determination of the allowances for doubtful accounts. |
Accounts receivable | Accounts receivable: Accounts receivable represent the amounts billed under operating lease contracts which are due to the Company. Allowances for credit losses 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 charged off to the allowance on a specific identification basis. Amounts recovered that were previously written-off are recorded as other income in the period received. |
Credit risk | Credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk include cash and cash equivalents and accounts receivable. The Company places the majority of its cash deposits in noninterest-bearing accounts with financial institutions that have no less than $10 billion in assets. Such deposits are insured up to $250 thousand. The remainder of the Company’s cash is temporarily invested in U.S. Treasury denominated instruments. The concentration of such deposits and temporary cash investments is not deemed to create a significant risk to the Company. Accounts receivable represent amounts due from lessees or borrowers in various industries, related to equipment on operating leases. |
Equipment on operating leases and related revenue recognition | Equipment on operating leases and related revenue recognition: Equipment subject to operating leases is stated at cost. Depreciation is being recognized on a straight-line method over the terms of the related leases to the equipment’s estimated residual values. Off-lease equipment is generally not subject to depreciation. The Company depreciates all lease assets, in accordance with guidelines consistent with Accounting Standards Codification (“ASC”) 360-20-35-3, over the periods of the lease terms contained in each asset’s respective lease contract to the estimated residual value at the end of the lease contract. All lease assets are purchased only concurrent with the execution of a lease commitment by the lessee. Thus, the original depreciation period corresponds with the term of the original lease. Once the term of an original lease contract is completed, the subject property is typically sold to the existing user, re-leased to the existing user, or, when off-lease, is held for sale. Assets which are re-leased continue to be depreciated using the terms of the new lease agreements and the estimated residual values at the end of the new lease terms, adjusted downward as necessary. Assets classified as held-for-sale are carried at the lower of carrying amount, or the fair value less cost to sell (ASC 360-10-35-43). The Company does not use the equipment held in its portfolio, but holds it solely for lease and ultimate sale. In the course of marketing equipment that has come off-lease, management may determine at some point that re-leasing the assets may provide a superior return for investors and would then execute another lease. Upon entering into a new lease contract, management will estimate the residual value once again and resume depreciation. If, and when, the Company, at any time, determines that depreciation in value may have occurred with respect to an asset held-for-sale, the Company would review the value to determine whether a material reduction in value had occurred and recognize any appropriate impairment. All lease assets, including off-lease assets, are subject to the Company’s quarterly impairment analysis, as described below. Maintenance costs associated with the Fund’s portfolio of leased assets are expensed as incurred. Major additions and betterments are capitalized. Operating lease revenue is recognized on a straight-line basis over the term of the underlying leases. The initial lease terms will vary as to the type of equipment subject to the leases, the needs of the lessees and the terms to be negotiated, but initial leases are generally on terms from 36 to 120 months. The difference between rent received and rental revenue recognized is recorded as unearned operating lease income on the balance sheet. Operating leases are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management considers the equipment underlying the lease contracts for impairment and periodically reviews the credit worthiness of all operating lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related operating leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, revenues are recognized on a cash basis. |
Initial direct costs | Initial direct costs: Incremental costs of a lease that would not have been incurred if the lease had not been obtained are capitalized and amortized over the lease term. All other costs associated with the execution of the Company’s leases are expensed as incurred. |
Asset valuation | Asset valuation: Recorded values of the Company’s leased asset portfolio are reviewed each quarter to confirm the reasonableness of established residual values and to determine whether there is indication that an asset impairment might have taken place. The Company uses a variety of sources and considers many factors in evaluating whether the respective book values of its assets are appropriate. In addition, the company may direct a residual value review at any time if it becomes aware of issues regarding the ability of a lessee to continue to make payments on its lease contract. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than their net book value. The estimated undiscounted future cash flows are the sum of the residual value of the asset at the end of the asset’s lease contract and undiscounted future rents from the existing lease contract. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date. Upward adjustments for impairments recognized in prior periods are not made in any circumstances. |
Segment reporting | Segment reporting: The Company is not organized by multiple operating segments for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in one reportable operating segment in the North America. 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 sought leasing opportunities was North America. The table below summarizes geographic information relating to the sources, by nation, of the Company’s total revenues for the three and nine months ended September 30, 2021 and 2020, and long-lived tangible assets as of September 30, 2021 and December 31, 2020 (dollars in thousands): Three Months Ended September 30, 2021 % of Total 2020 % of Total Revenue United States $ 337 96 % $ 242 93 % Canada 14 4 % 18 7 % Total $ 351 100 % $ 260 100 % Nine Months Ended September 30, 2021 % of Total 2020 % of Total Revenue United States $ 1,037 97 % $ 784 94 % Canada 38 3 % 52 6 % Total $ 1,075 100 % $ 836 100 % As of September 30, As of December 31, 2021 % of Total 2020 % of Total Long-lived assets United States $ 2,155 97 % $ 3,163 98 % Canada 68 3 % 59 2 % Total $ 2,223 100 % $ 3,222 100 % |
Investment in securities | Investment in securities: From time to time, the Company may purchase securities of its borrowers or receive warrants to purchase securities in connection with its lending arrangements. Purchased securities The Company’s purchased securities registered for public sale with readily determinable fair values are measured at fair value with any changes in fair value recognized in the Company’s results of operations. The Company’s purchased securities that do not have readily determinable fair values are measured at cost minus impairment and adjusted for changes in observable prices. Factors considered by the Managing Member in determining fair value include, but are not limited to, available financial information, the issuer’s ability to meet its current obligations and indications of the issuer’s subsequent ability to raise capital. As of September 30, 2021 and December 31, 2020, investment in equity securities totaled $336 thousand and $200 thousand, respectively. The entire amount at September 30, 2021 reflected the value of securities with readily determinable fair values. By contrast, the entire value of investment securities at December 31, 2020 related to securities that do not have readily determinable fair values. During the three months ended September 30, 2021, the Company recorded $262 thousand of unrealized losses on investment securities with readily determinable fair values. Unrealized gains of $247 thousand were recorded during the nine months ended September 30, 2021. These changes in unrealized gains and losses reflect the fair market value of a privately held security which converted to a publicly traded security upon completion of the borrower’s initial public offering in February 2021. Prior to December 31, 2020, the Company only held securities that do not have readily determinable fair values. The Company did not hold any private equities at September 30, 2021. Cumulative adjustments totaling $98 thousand have been recorded to reduce the value of investment securities that do not have readily determinable fair values held as of September 30, 2021 based on changes in observable prices. During the three and nine months ended September 30, 2021, the company sold investment securities with a value of approximately $111 thousand and realized a loss of $4 thousand on the sale. There were no such sales for the same respective periods in 2020. In addition, there were no impairment losses on investment securities during the three- and nine-month periods ended at September 30, 2021 and 2020. |
Per Unit data | Per Unit data: Net (loss) income and distributions per Unit are based upon the weighted average number of Other Members’ Units outstanding during the period. |
Fair value | Fair value: Fair value measurements and disclosures are based on a fair value hierarchy as determined by significant inputs used to measure fair value. The three levels of inputs within the fair value hierarchy are defined as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, generally on a national exchange. Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuations in which all significant inputs are observable in the market. Level 3 – Valuation is modeled using significant inputs that are unobservable in the market. These unobservable inputs reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. The Company’s valuation policy is determined by members of the Asset Management, Credit and Accounting departments. Whenever possible, the policy is to obtain quoted market prices in active markets to estimate fair values for recognition and disclosure purposes. Where quoted market prices in active markets are not available, fair values are estimated using discounted cash flow analyses, broker quotes, and information from third party remarketing agents, third party appraisals of collateral and/or other valuation techniques. These techniques are significantly affected by certain of the Company’s assumptions, including discount rates and estimates of future cash flows. Potential taxes and other transaction costs are not considered in estimating fair values. As the Company is responsible for determining fair value, an analysis is performed on prices obtained from third parties. Such analysis is performed by asset management and credit department personnel who are familiar with the Company’s investments in equipment, notes receivable and equity securities of venture companies. The analysis may include a periodic review of price fluctuations and validation of numbers obtained from a specific third party by reference to multiple representative sources. |
Recent accounting pronouncements | Recent accounting pronouncements: In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-03, Codification Improvements to Financial Instruments (“ASU 2020-03”). ASU 2020-03 improves and clarifies various financial instruments topics, including the current expected credit losses (CECL) standard issued in 2016. ASU 2020-03 includes seven different issues that describe the areas of improvement and the related amendments to GAAP that are intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The amendments have different effective dates. Management is currently evaluating the effect of adopting this new accounting guidance but does not expect adoption will have a material impact on the Fund’s financial statements and disclosures. In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments — Credit Losses (Topic 326) (“ASU 2016-13”). The main objective of this Update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments affect entities holding financial assets and equipment under operating leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, equipment under operating lease, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. Management is currently evaluating the standard and expects the update may potentially result in the increase in the allowance for credit losses given the change to estimated losses over the contractual life adjusted for expected prepayments. In November 2018, the FASB issued Accounting Standards Update 2018-19, Codification Improvements to Topic 326, Financial Instruments — Credit Losses (“ASU 2018-19”). The new standard clarifies certain aspects of the new CECL impairment model in ASU 2016-13. The amendment clarifies that receivables arising from operating leases are within the scope of ASC 842, rather than ASC 326. Management is currently evaluating the impact of the standard on the financial statements and related disclosure requirements. On August 15, 2019, the FASB issued a proposed ASU that would grant certain companies additional time to implement FASB standards on CECL, and hedging. The proposed ASU defers the effective date for CECL to fiscal periods beginning after December 15, 2022, including interim periods within those fiscal years; and defers the effective dates for hedging to fiscal periods beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The ASU was approved on October 16, 2019. In February 2020, the FASB issued ASU 2020-02 and delayed the effective date of Topic 326 until fiscal year beginning after December 15, 2022. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Geographic Information Relating to Sources, by Nation, of Partnership's Total Revenue and Long-Lived Assets | The table below summarizes geographic information relating to the sources, by nation, of the Company’s total revenues for the three and nine months ended September 30, 2021 and 2020, and long-lived tangible assets as of September 30, 2021 and December 31, 2020 (dollars in thousands): Three Months Ended September 30, 2021 % of Total 2020 % of Total Revenue United States $ 337 96 % $ 242 93 % Canada 14 4 % 18 7 % Total $ 351 100 % $ 260 100 % Nine Months Ended September 30, 2021 % of Total 2020 % of Total Revenue United States $ 1,037 97 % $ 784 94 % Canada 38 3 % 52 6 % Total $ 1,075 100 % $ 836 100 % As of September 30, As of December 31, 2021 % of Total 2020 % of Total Long-lived assets United States $ 2,155 97 % $ 3,163 98 % Canada 68 3 % 59 2 % Total $ 2,223 100 % $ 3,222 100 % |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Allowance for Credit Losses [Abstract] | |
Activity in Allowance for Credit Losses | The Company’s allowance for credit losses are as follows (in thousands): Allowance for Doubtful Accounts Operating Leases Balance December 31, 2019 $ 190 Provision for credit losses 141 Balance September 30, 2020 $ 331 Balance December 31, 2020 $ 217 Provision for credit losses — Write-off (217) Balance September 30, 2021 $ — |
Equipment Under Operating Lea_2
Equipment Under Operating Leases, Net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equipment Under Operating Leases, Net [Abstract] | |
Investment in Leases | The Company’s equipment under operating leases, net consists of the following (in thousands): Depreciation/ Amortization Balance Reclassifications Expense or Balance December 31, Additions / Dispositions Amortization September 30, 2020 and Impairment Losses of Leases 2021 Equipment under operating leases, net $ 1,978 $ (771) $ (110) $ 1,097 Assets held for sale or lease, net 1,240 (118) — 1,122 Initial direct costs, net 4 2 (2) 4 Total $ 3,222 $ (887) $ (112) $ 2,223 |
Property on Operating Leases | Property on operating leases consisted of the following (in thousands): Balance Balance December 31, Reclassification September 30, 2020 Additions /Dispositions 2021 Transportation, rail $ 11,062 $ — $ (3,366) $ 7,696 Trucks and trailers 344 — — 344 Aircraft 293 — — 293 Manufacturing 624 — — 624 Petro/natural gas 470 — (470) — Materials handling 90 — — 90 12,883 — (3,836) 9,047 Less accumulated depreciation (10,905) (110) 3,065 (7,950) Total $ 1,978 $ (110) $ (771) $ 1,097 |
Future Minimum Lease Payments Receivable | At September 30, 2021, the aggregate amounts of future minimum lease payments receivable were as follows (in thousands): Operating Leases Three months ending December 31, 2021 $ 178 Year ending December 31, 2022 623 2023 163 2024 77 2025 19 Thereafter 43 $ 1,103 |
Schedule of Useful Lives of Lease Assets | The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of September 30, 2021, the respective useful lives of each category of lease assets in the Company’s portfolio were as follows (in years): Equipment category Useful Life Transportation, rail 35 - 50 Aircraft 20 - 30 Manufacturing 10 - 15 Petro/natural gas 10 - 15 Materials handling 7 - 10 Transportation, other 7 - 10 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
AFS and /or Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement | During the three and nine months ended September 30, 2021 and 2020, AFS and/or affiliates earned fees and billed for reimbursements, pursuant to the Operating Agreement, as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Costs reimbursed to Managing Member and/or affiliates $ 36 $ 37 $ 112 $ 119 Asset management fees and adjustments to Managing Member and/or affiliates — 19 7 54 $ 36 $ 56 $ 119 $ 173 |
Members' Capital (Tables)
Members' Capital (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Members' Capital [Abstract] | |
Distributions to Other Members | Distributions to the Other Members were as follows (in thousands, except as to Units and per Unit data): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Distributions declared $ — $ — $ 1,048 $ 1,467 Weighted average number of Units outstanding 13,971,486 13,971,486 13,971,486 13,971,486 Weighted average distributions per Unit $ — $ — $ 0.08 $ 0.11 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Measurements [Abstract] | |
Fair Value, Investment Securities Measured on Recurring Basis | The fair value of investment securities that were accounted for on a recurring basis for the three and nine months ended September 30, 2021 and 2020, and classified as Level 1 are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Fair value of securities at the beginning of period $ 709 $ — $ — $ — Conversion of previously held private securities — — 200 — Securities sold (111) — (111) — Unrealized (loss) gain on fair market valuation of securities (262) — 247 — Fair value of investment securities at the end of period $ 336 $ — $ 336 $ — |
Fair Value Measurement of Impaired Assets at Fair Value on Non-recurring Basis | During the nine months ended September 30, 2021, the Company recorded fair value adjustments totaling $58 thousand to reduce the cost basis of certain transportation, rail and research equipment . Level 1 Level 2 Level 3 September 30, Estimated Estimated Estimated 2021 Fair Value Fair Value Fair Value Assets measured at fair value on a non-recurring basis (in thousands): Impaired lease and off-lease equipment $ 361 $ — $ — $ 361 |
Summary of Valuation Techniques and Significant Unobservable Inputs Used | The following table summarizes the valuation techniques and significant unobservable inputs used for the Company’s non-recurring fair value adjustment categorized as Level 3 in the fair value hierarchy at September 30, 2021. There was no adjustment at December 31, 2020. September 30, 2021 Valuation Unobservable Name Frequency Technique Inputs (Weighted Average) Lease and off-lease equipment Non-recurring Market Approach Third Party Agents' Pricing $0 - $9,500 Quotes - per equipment (total of $361,000) Equipment Condition Poor to Average |
Estimated Fair Values of Financial Instruments | The following tables present a summary of the carrying value and fair value by level of financial instruments on the Company’s balance sheet at September 30, 2021 and December 31, 2020 (in thousands): Fair Value Measurements at September 30, 2021 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 1,183 $ 1,183 $ — $ — $ 1,183 Investment in securities 336 336 — — 336 Fair Value Measurements at December 31, 2020 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 1,401 $ 1,401 $ — $ — $ 1,401 |
Organization and Limited Liab_2
Organization and Limited Liability Company Matters (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 11, 2005 | Apr. 09, 2003 | Mar. 12, 2003 | Sep. 30, 2021 | Dec. 31, 2011 | Sep. 30, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Business formation date | Aug. 12, 2002 | |||||||||||
Business formation State | California | |||||||||||
Business activities, description | sale of limited liability company investment units and acquiring equipment to engage in equipment leasing, lending and sales activities | |||||||||||
Business termination date | Dec. 31, 2022 | |||||||||||
Public offering of Limited Liability Company Units | 15,000,000 | |||||||||||
Public offering of Limited Liability Company Units, price per Unit | $ 10 | |||||||||||
Sale of Limited Liability Company Units, number of Units | 14,059,136 | 120,000 | ||||||||||
Proceeds from sale of Limited Liability Company Units | $ 140,600 | $ 1,200 | ||||||||||
Repurchase of Units, number of Units | 87,650 | |||||||||||
Repurchase of Units, value | $ 720 | |||||||||||
Reinvestment period | 6 years | |||||||||||
Other Members [Member] | ||||||||||||
Members capital account, Units issued | 13,971,486 | 13,971,486 | 13,971,486 | 13,971,486 | ||||||||
Members capital account, Units outstanding | 13,971,486 | 13,971,486 | 13,971,486 | 13,971,486 | 13,971,486 | 13,971,486 | 13,971,486 | 13,971,486 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Investment in securities | $ 336 | $ 336 | $ 200 | ||
Unrealized gain (loss) on fair valuation of securities | (262) | $ 0 | 247 | $ 0 | |
Investment securities without readily determinable fair value impairment Loss, cumulative | 98 | 98 | |||
Sale of investment in equity securities | 111 | 0 | 111 | 0 | |
Loss on sales of investment securities | (4) | 0 | $ (4) | 0 | |
Equipment on operating leases, depreciation method | straight-line method | ||||
Number of operating segments | segment | 1 | ||||
Number of reportable segments | segment | 1 | ||||
Impairment losses on investment in securities | $ 0 | $ 0 | $ 0 | $ 0 | |
Minimum [Member] | |||||
Required assets value of financial institutions for cash deposits | $ 10,000,000 | ||||
Operating leases, initial terms | 36 months | 36 months | |||
Operating leases, period for non accrual status | 90 days | ||||
Maximum [Member] | |||||
U.S. Treasury instruments maturity period | 90 days | ||||
Cash deposits, insured amount | $ 250 | $ 250 | |||
Operating leases, initial terms | 120 months | 120 months | |||
Operating leases, period of review for impairment | 90 days |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Summary of Geographic Information Relating to Sources, by Nation, of Partnership's Total Revenue and Long-Lived Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 351 | $ 260 | $ 1,075 | $ 836 | |
Long-lived assets | 2,223 | 2,223 | $ 3,222 | ||
Operating Revenues [Member] | Geographic Concentration Risk [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 351 | $ 260 | $ 1,075 | $ 836 | |
Percentage of total | 100.00% | 100.00% | 100.00% | 100.00% | |
Long-lived Assets [Member] | Geographic Concentration Risk [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Long-lived assets | $ 2,223 | $ 2,223 | $ 3,222 | ||
Percentage of total | 100.00% | 100.00% | |||
United States [Member] | Operating Revenues [Member] | Geographic Concentration Risk [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 337 | $ 242 | $ 1,037 | $ 784 | |
Percentage of total | 96.00% | 93.00% | 97.00% | 94.00% | |
United States [Member] | Long-lived Assets [Member] | Geographic Concentration Risk [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Long-lived assets | $ 2,155 | $ 2,155 | $ 3,163 | ||
Percentage of total | 97.00% | 98.00% | |||
Canada [Member] | Operating Revenues [Member] | Geographic Concentration Risk [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 14 | $ 18 | $ 38 | $ 52 | |
Percentage of total | 4.00% | 7.00% | 3.00% | 6.00% | |
Canada [Member] | Long-lived Assets [Member] | Geographic Concentration Risk [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Long-lived assets | $ 68 | $ 68 | $ 59 | ||
Percentage of total | 3.00% | 2.00% |
Allowance for Credit Losses (Ac
Allowance for Credit Losses (Activity in Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Provision for credit losses | $ 0 | $ 141 |
Allowance For Doubtful Accounts [Member] | Operating Leases [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning Balance | 217 | 190 |
Provision for credit losses | 0 | 141 |
Write-off | (217) | |
Ending Balance | $ 0 | $ 331 |
Equipment Under Operating Lea_3
Equipment Under Operating Leases, Net (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Lessor, Lease, Description [Line Items] | |||||
Impairment losses on equipment | $ 0 | $ 0 | $ 58 | $ 0 | |
Long-lived assets | 2,223 | 2,223 | $ 3,222 | ||
Depreciation of operating lease assets | 34 | 55 | 110 | 133 | |
Amortization of initial direct costs | $ 1 | $ 1 | 2 | $ 2 | |
Additional depreciation of operating lease assets | $ 3 | ||||
Average estimated residual value of assets on operating leases | 10.00% | 10.00% | 13.00% | ||
Operating leases placed in non-accrual status | $ 0 | $ 0 | $ 0 | ||
Minimum [Member] | |||||
Lessor, Lease, Description [Line Items] | |||||
Accounts receivable, period for non accrual status | 90 days |
Equipment Under Operating Lea_4
Equipment Under Operating Leases, Net (Investment in Leases) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Lessor, Lease, Description [Line Items] | |
Balance December 31, 2020 | $ 3,222 |
Reclassifications Additions / Dispositions and Impairment Losses | (887) |
Depreciation/ Amortization Expense or Amortization of Leases | (112) |
Balance September 30, 2021 | 2,223 |
Operating Leases [Member] | |
Lessor, Lease, Description [Line Items] | |
Balance December 31, 2020 | 1,978 |
Reclassifications Additions / Dispositions and Impairment Losses | (771) |
Depreciation/ Amortization Expense or Amortization of Leases | (110) |
Balance September 30, 2021 | 1,097 |
Asset Held for Sale or Lease [Member] | |
Lessor, Lease, Description [Line Items] | |
Balance December 31, 2020 | 1,240 |
Reclassifications Additions / Dispositions and Impairment Losses | (118) |
Depreciation/ Amortization Expense or Amortization of Leases | 0 |
Balance September 30, 2021 | 1,122 |
Initial Direct Cost [Member] | |
Lessor, Lease, Description [Line Items] | |
Balance December 31, 2020 | 4 |
Reclassifications Additions / Dispositions and Impairment Losses | 2 |
Depreciation/ Amortization Expense or Amortization of Leases | (2) |
Balance September 30, 2021 | $ 4 |
Equipment Under Operating Lea_5
Equipment Under Operating Leases, Net (Property on Operating Leases) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Lessor, Lease, Description [Line Items] | ||
Property on operating leases, gross | $ 9,047 | $ 12,883 |
Less accumulated depreciation | (7,950) | (10,905) |
Property on operating leases, net | 1,097 | 1,978 |
Additions, gross | 0 | |
Additions, less accumulated depreciation | (110) | |
Additions, net | (110) | |
Reclassifications or dispositions, gross | (3,836) | |
Reclassifications or dispositions, less accumulated depreciation | 3,065 | |
Reclassifications or dispositions, net | (771) | |
Transportation, Rail [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Property on operating leases, gross | 7,696 | 11,062 |
Additions, gross | 0 | |
Reclassifications or dispositions, gross | (3,366) | |
Trucks and trailers [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Property on operating leases, gross | 344 | 344 |
Additions, gross | 0 | |
Reclassifications or dispositions, gross | 0 | |
Aviation [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Property on operating leases, gross | 293 | 293 |
Additions, gross | 0 | |
Reclassifications or dispositions, gross | 0 | |
Manufacturing [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Property on operating leases, gross | 624 | 624 |
Additions, gross | 0 | |
Reclassifications or dispositions, gross | 0 | |
Petro/Natural Gas [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Property on operating leases, gross | 0 | 470 |
Additions, gross | 0 | |
Reclassifications or dispositions, gross | (470) | |
Materials Handling [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Property on operating leases, gross | 90 | $ 90 |
Additions, gross | 0 | |
Reclassifications or dispositions, gross | $ 0 |
Equipment Under Operating Lea_6
Equipment Under Operating Leases, Net (Future Minimum Lease Payments Receivable) (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Operating Leases | |
Three months ending December 31, 2021 | $ 178 |
Year ending December 31, 2022 | 623 |
2023 | 163 |
2024 | 77 |
2025 | 19 |
Thereafter | 43 |
Operating leases, future minimum payments receivable, total | $ 1,103 |
Equipment Under Operating Lea_7
Equipment Under Operating Leases, Net (Schedule of Useful Lives of Assets) (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Minimum [Member] | Transportation, Rail [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives of lease assets | 35 years |
Minimum [Member] | Aviation [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives of lease assets | 20 years |
Minimum [Member] | Manufacturing [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives of lease assets | 10 years |
Minimum [Member] | Petro/Natural Gas [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives of lease assets | 10 years |
Minimum [Member] | Materials Handling [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives of lease assets | 7 years |
Minimum [Member] | Transportation, Other [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives of lease assets | 7 years |
Maximum [Member] | Transportation, Rail [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives of lease assets | 50 years |
Maximum [Member] | Aviation [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives of lease assets | 30 years |
Maximum [Member] | Manufacturing [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives of lease assets | 15 years |
Maximum [Member] | Petro/Natural Gas [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives of lease assets | 15 years |
Maximum [Member] | Materials Handling [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives of lease assets | 10 years |
Maximum [Member] | Transportation, Other [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful lives of lease assets | 10 years |
Related Party Transactions (AFS
Related Party Transactions (AFS and/or Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Related Party Transactions [Abstract] | ||||
Costs reimbursed to Managing Member and/or affiliates | $ 36 | $ 37 | $ 112 | $ 119 |
Asset management fees and adjustments to Managing Member and/or affiliates | 0 | 19 | 7 | 54 |
Related party transactions, total | $ 36 | $ 56 | $ 119 | $ 173 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Commitments and Contingencies [Abstract] | |
Commitments to purchase lease assets | $ 0 |
Members' Capital (Narrative) (D
Members' Capital (Narrative) (Details) - shares | 9 Months Ended | |||||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Other Members Capital Account [Line Items] | ||||||
Potential repurchase price of Units as percentage of holder's capital account | 100.00% | |||||
Other Members [Member] | ||||||
Other Members Capital Account [Line Items] | ||||||
Members capital account, Units issued | 13,971,486 | 13,971,486 | ||||
Members capital account, Units outstanding | 13,971,486 | 13,971,486 | 13,971,486 | 13,971,486 | 13,971,486 | 13,971,486 |
Allocation of net income or net losses | 92.50% | 92.50% | ||||
Other Members [Member] | Maximum [Member] | ||||||
Other Members Capital Account [Line Items] | ||||||
Other Members capital account, Units authorized | 15,000,000 | 15,000,000 | ||||
Managing Member [Member] | ||||||
Other Members Capital Account [Line Items] | ||||||
Allocation of net income or net losses | 7.50% | 7.50% | ||||
Initial Members [Member] | ||||||
Other Members Capital Account [Line Items] | ||||||
Members capital account, Units issued | 50 | 50 |
Members' Capital (Distributions
Members' Capital (Distributions to Other Members) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||||
Distributions declared | $ 1,048 | $ 1,467 | ||
Weighted average number of Units outstanding | 13,971,486 | 13,971,486 | 13,971,486 | 13,971,486 |
Other Members [Member] | ||||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||||
Distributions declared | $ 0 | $ 0 | $ 1,048 | $ 1,467 |
Weighted average number of Units outstanding | 13,971,486 | 13,971,486 | 13,971,486 | 13,971,486 |
Weighted average distributions per Unit | $ 0 | $ 0 | $ 0.08 | $ 0.11 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fair Value Measurements [Abstract] | ||||
Impaired off-lease Equipment | $ 0 | $ 0 | $ 58 | $ 0 |
Fair Value Measurements (Invest
Fair Value Measurements (Investment Securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fair Value Measurements [Abstract] | ||||
Fair value of securities at the beginning of period | $ 709 | $ 0 | $ 0 | $ 0 |
Conversion of previously held private securities | 0 | 0 | 200 | 0 |
Securities sold | (111) | 0 | (111) | 0 |
Unrealized gain (loss) on fair valuation of securities | (262) | 0 | 247 | 0 |
Fair value of securities at the end of period | $ 336 | $ 0 | $ 336 | $ 0 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurement of Impaired Assets On Non-recurring Basis) (Details) | Sep. 30, 2021USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impaired lease and off-lease equipment | $ 361,000 |
Level 1 Estimated Fair Value [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impaired lease and off-lease equipment | 0 |
Level 2 Estimated Fair Value [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impaired lease and off-lease equipment | 0 |
Level 3 Estimated Fair Value [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impaired lease and off-lease equipment | $ 361,000 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary of Valuation Techniques And Significant Unobservable Inputs) (Details) | Sep. 30, 2021USD ($) |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Impaired lease and off-lease equipment | $ 361,000 |
Level 3 Estimated Fair Value [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Impaired lease and off-lease equipment | 361,000 |
Level 3 Estimated Fair Value [Member] | Minimum [Member] | Market Approach [Member] | Off-Lease Equipment [Member] | Nonrecurring [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Impaired lease and off-lease equipment | 0 |
Level 3 Estimated Fair Value [Member] | Maximum [Member] | Market Approach [Member] | Off-Lease Equipment [Member] | Nonrecurring [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Impaired lease and off-lease equipment | $ 9,500 |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Financial assets: | ||||||
Investment in securities | $ 336 | $ 709 | $ 0 | $ 0 | $ 0 | $ 0 |
Carrying Amount [Member] | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 1,183 | 1,401 | ||||
Investment in securities | 336 | |||||
Estimate of Fair Value [Member] | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 1,183 | 1,401 | ||||
Investment in securities | 336 | |||||
Level 1 Estimated Fair Value [Member] | Estimate of Fair Value [Member] | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 1,183 | 1,401 | ||||
Investment in securities | 336 | |||||
Level 2 Estimated Fair Value [Member] | Estimate of Fair Value [Member] | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Investment in securities | 0 | |||||
Level 3 Estimated Fair Value [Member] | Estimate of Fair Value [Member] | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 0 | $ 0 | ||||
Investment in securities | $ 0 |