Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 30, 2016 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | ATEL CAPITAL EQUIPMENT FUND XI, LLC | |
Entity Central Index Key | 1,297,667 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Units Outstanding | 5,209,307 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 2,340 | $ 3,132 |
Accounts receivable, net of allowance for doubtful accounts of $0 as of March 31, 2016 and $1 as of December 31, 2015 | 169 | 156 |
Investment in securities | 22 | 38 |
Fair value of warrants | 10 | 27 |
Investments in equipment and leases, net of accumulated depreciation of $13,284 as of March 31, 2016 and $13,316 as of December 31, 2015 | 2,587 | 2,712 |
Prepaid expenses and other assets | 28 | 31 |
Total assets | 5,156 | 6,096 |
Accounts payable and accrued liabilities: | ||
Managing Member | 44 | 106 |
Accrued distributions to Other Members | 1,303 | |
Other | 86 | 80 |
Unearned operating lease income | 145 | 14 |
Total liabilities | $ 275 | $ 1,503 |
Commitments and contingencies | ||
Members' capital: | ||
Managing Member | ||
Other Members | $ 4,881 | $ 4,593 |
Total Members' capital | 4,881 | 4,593 |
Total liabilities and Members' capital | $ 5,156 | $ 6,096 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Balance Sheets [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 0 | $ 1 |
Investments in equipment and leases, accumulated depreciation | $ 13,284 | $ 13,316 |
Statements of Income
Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Leasing and lending activities: | ||
Operating leases | $ 320 | $ 543 |
Direct financing leases | 1 | 4 |
Interest on notes receivable | 6 | |
Gain on sales of lease assets and early termination of notes | 270 | 139 |
Unrealized loss on fair valuation of warrants | (17) | |
Other | 3 | 126 |
Total revenues | 577 | 818 |
Expenses: | ||
Depreciation of operating lease assets | 103 | 264 |
Asset management fees to Managing Member | 32 | 30 |
Cost reimbursements to Managing Member and/or affiliates | 33 | 49 |
Reversal of credit losses | (1) | |
Impairment losses on investment in securities | 16 | |
Amortization of initial direct costs | 2 | 2 |
Interest expense | 8 | |
Professional fees | 80 | 74 |
Outside services | 15 | 13 |
Taxes on income and franchise fees | 53 | |
Other | 10 | 12 |
Total operating expenses | 290 | 505 |
Other income (loss), net | 1 | (1) |
Net income | $ 288 | $ 312 |
Net income: | ||
Managing Member | ||
Other Members | $ 288 | $ 312 |
Net income | $ 288 | $ 312 |
Net income per Limited Liability Company Unit (Other Members) | $ 0.06 | $ 0.06 |
Weighted average number of Units outstanding | 5,209,307 | 5,209,307 |
Statements of Changes in Member
Statements of Changes in Members' Capital - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Beginning Balance (in Units) | 5,209,307 | ||
Beginning Balance | $ 4,593 | $ 7,261 | $ 7,261 |
Distributions to Other Members | (3,647) | ||
Distributions to Managing Member | (295) | ||
Net income | $ 288 | $ 312 | $ 1,274 |
Ending Balance (in Units) | 5,209,307 | 5,209,307 | |
Ending Balance | $ 4,881 | $ 4,593 | |
Other Members [Member] | |||
Beginning Balance (in Units) | 5,209,307 | 5,209,307 | 5,209,307 |
Beginning Balance | $ 4,593 | $ 7,261 | $ 7,261 |
Distributions to Other Members | (3,647) | ||
Net income | $ 288 | $ 979 | |
Ending Balance (in Units) | 5,209,307 | 5,209,307 | |
Ending Balance | $ 4,881 | $ 4,593 | |
Managing Member [Member] | |||
Distributions to Managing Member | (295) | ||
Net income | $ 295 |
Statements of Changes in Membe6
Statements of Changes in Members' Capital (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Statements of Changes in Members' Capital [Abstract] | |||
Weighted average distributions per Unit | $ 0 | $ 0 | $ 0.70 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating activities: | ||
Net income | $ 288 | $ 312 |
Adjustment to reconcile net income to cash provided by operating activities: | ||
Gain on sales of lease assets and early termination of notes | (270) | (139) |
Depreciation of operating lease assets | 103 | 264 |
Amortization of initial direct costs | 2 | 2 |
Reversal of credit losses | (1) | |
Impairment losses on investment in securities | 16 | |
Unrealized loss on fair valuation of warrants | 17 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (12) | (71) |
Prepaid expenses and other assets | 3 | 4 |
Accounts payable, Managing Member | 43 | 41 |
Accounts payable, other | 6 | (140) |
Unearned operating lease income | 131 | 72 |
Net cash provided by operating activities | 326 | 345 |
Investing activities: | ||
Purchase of securities | (3) | |
Proceeds from sales of lease assets and early termination of notes | 287 | 221 |
Principal payments received on direct financing leases | 3 | 13 |
Principal payments received on notes receivable | 35 | |
Net cash provided by investing activities | 290 | 266 |
Financing activities: | ||
Repayments under non-recourse debt | (202) | |
Net cash used in financing activities | (1,408) | (1,047) |
Net decrease in cash and cash equivalents | (792) | (436) |
Cash and cash equivalents at beginning of period | 3,132 | 4,794 |
Cash and cash equivalents at end of period | 2,340 | 4,358 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for interest | 9 | |
Other Members [Member] | ||
Operating activities: | ||
Net income | 288 | |
Financing activities: | ||
Distributions to Members | (1,303) | (781) |
Managing Member [Member] | ||
Financing activities: | ||
Distributions to Members | $ (105) | $ (64) |
Organization and Limited Liabil
Organization and Limited Liability Company Matters | 3 Months Ended |
Mar. 31, 2016 | |
Organization and Limited Liability Company Matters [Abstract] | |
Organization and Limited Liability Company Matters | 1. Organization and Limited Liability Company matters: ATEL Capital Equipment Fund XI, LLC (the “Company” or the “Fund” ) was formed under the laws of the State of California on June 25, 2004. The Company was formed for the purpose of acquiring equipment to engage in equipment leasing, lending and sales activities. Also, from time to time, the Company may purchase securities of its borrowers or receive warrants to purchase securities in connection with its lending arrangements. The Managing Member or Manager of the Company is ATEL Financial Services, LLC (“AFS”), a California limited liability company. The Company may continue until December 31, 2025 . Each Member’s personal liability for obligations of the Company generally will be limited to the amount of their respective contributions and rights to undistributed profits and assets of the Company. The Company conducted a public offering of 15,000,000 Limited Liability Company Units (“Units”), at a price of $ 10 per Unit. On May 31, 2005, subscriptions for the minimum number of Units ( 120,000 , representing $ 1.2 million) had been received and AFS requested that the subscriptions be released to the Company. On that date, the Company commenced operations in its primary business (acquiring equipment to engage in equipment leasing, lending and sales activities). As of July 13, 2005, the Company had received subscriptions for 958,274 Units ($ 9.6 million), thus exceeding the $ 7.5 million minimum requirement for Pennsylvania, and AFS requested that the remaining funds in escrow (from Pennsylvania investors) be released to the Company. The Company terminated sales of Units effective April 30, 2006. Life-to-date net contributions through March 31, 2016 totaled $ 52.2 million , consisting of approximately $ 52.8 million in gross contributions from Other Members purchasing Units under the public offering less rescissions and repurchases (net of distributions paid and allocated syndication costs, as applicable) of $ 636 thousand. As of March 31, 2016 , 5,209,307 Units were issued and outstanding . The Company’s principal objectives are 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 full years following the year the offering was terminated ), which ended December 31, 2012, and (iii) provides additional distributions following the Reinvestment Period and until all equipment has been sold. The Company is governed by its Limited Liability Company Operating Agreement (“Operating Agreement”), as amended. On January 1, 2013, the Company commenced liquidation phase activities pursuant to the guidelines of the Operating Agreement. Pursuant to the terms of the Operating Agreement, AFS and its affiliates receives compensation for services rendered and reimbursements for costs incurred on b ehalf 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’s 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, 2015, filed with the Securities and Exchange Commission. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
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 months ended March 31, 2016 are not necessarily indicative of the results to be expected for the full year. Certain prior period amounts may have been reclassified to conform to the current period presentation. These reclassifications had no significant effect on the reported financial position or results of operations. Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data. In preparing the accompanying unaudited financial statements, the Company has reviewed, as determined necessary by the Managing Member, events that have occurred after March 31, 2016 up until the issuance of the financial statements. No events were noted which would require additional disclosure in the footnotes to the financial statements, or adjustments thereto. 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 for determination of the allowance for doubtful accounts and reserve for credit losses on notes receivable. 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 United States. The primary geographic regions in which the Company seeks leasing opportunities are North America and Europe . The table below summarizes geographic information relating to the sources, by nation, of the Company’s total revenues for the three months ended March 31, 2016 and 2015 and long-lived assets as of March 31, 2016 and December 31, 2015 (dollars in thousands): For The Three Months Ended March 31, 2016 % of Total 2015 % of Total Revenue United States $ 570 99% $ 811 99% United Kingdom 7 1% 7 1% Total International 7 1% 7 1% Total $ 577 100% $ 818 100% As of March 31, As of December 31, 2016 % of Total 2015 % of Total Long-lived assets United States $ 2,584 100% $ 2,709 100% United Kingdom 3 0% 3 0% Total International 3 0% 3 0% Total $ 2,587 100% $ 2,712 100% 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 Purchased securities are generally not registered for public sale and are carried at cost. Such securities are adjusted to fair value if the fair value is less than the carrying value and such impairment is deemed by the Managing Member to be other than temporary. 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. Based upon the Company’s review of its portfolio, a fair value adjustment of $16 thousand was recorded for the three months ended March 31, 2016 to reduce the cost basis of an impaired investment security to zero. No such fair value adjustment was deemed necessary for the three months ended March 31, 2015. There were no sales or dispositions of securities during the three months ended March 31, 2016 and 2015. Warrants Warrants owned by the Company are not registered for public sale, but are considered derivatives and are reflected at an estimated fair value on the balance sheet as determined by the Managing Member. During the three months ended March 31, 2016, the Company recorded unrealized losses of $17 thousand on fair valuation of its warrants. There were no unrealized gains or losses recorded during the prior year period. As of March 31, 2016 and December 31, 2015, the estimated fair value of the Company’s portfolio of warrants amounted to $10 thousand and $27 thousand, respectively. There were no exercises of warrants, net or otherwise, during the three months ended March 31, 2016 and 2015. Foreign currency transactions: Foreign currency transaction gains and losses are reported in the results of operations as “other income” or “other loss” in the period in which they occur. Currently, the Company does not use derivative instruments to hedge its economic exposure with respect to assets, liabilities and firm commitments as the foreign currency transactions risks to date have not been significant. Per Un it data: The Company issues only one class of Units, none of which are considered dilutive. Net income and distributions per Unit are based upon the weighted average number of Other Members ’ Units outstanding during the period . Recent accounting pronouncements: In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2016-02, Leases (Topic 842) (“ASU 2016-02”). The new standard will require lessees to recognize lease assets and lease liabilities arising from operating leases with lease terms greater than 12 months in the statement of financial position. Lessor accounting per ASU 2016-02 is mostly unchanged from the previous lease accounting GAAP. Certain changes were made to the lessor accounting guidance in order to align the lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customer s . Similar to the previous guidance, lessors will classify leases as operating, direct financing, or sales-type. Lessors in operating leases will continue to recognize the underlying asset and recognize income on a straight-line basis. Lessors determine whether a lease is a sale of the underlying asset based on whether the lessee effectively obtains control of the underlying assets. ASU-2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. Management is currently evaluating the standard and its operational and related disclosure requirements. In January 2016, FASB issued Accounting Standards Update 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). The new standard provides guidance related to accounting for equity investments and financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Management is currently evaluating the standard and its operational and related disclosure requirements. In August 2014, the FASB issued Accounting Standards Update 2014-15, Presentation of Financi al Statements — Going Concern (S ubtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU-2014-15”). The new standard provides guidance relative to management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. Management does not expect the adoption of ASU 2014-15 to have a material impact on the Company’s financial statements or related disclosures. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. On July 9, 2015, the FASB approved the deferral of the effective date of ASU 2014-09 by one year and in August 2015, issued Revenue from Contracts from Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”). ASU 2015-14 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 31, 2016, including interim reporting periods within that reporting period. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company evaluated the impact of the new standard on its financial statements and has determined that such impact is virtually non-existent as the new revenue guideline does not affect revenues from leases and loans, which comprise the majority of the Company’s revenues. |
Notes Receivable, Net
Notes Receivable, Net | 3 Months Ended |
Mar. 31, 2016 | |
Notes Receivable, Net [Abstract] | |
Notes Receivable, Net | 3 . Notes receivable, net: The Company has had various notes receivable from borrowers who have financed the purchase of equipment through the Company. The notes were secured by the equipment financed. The Company had one note receivable which remained unsettled as of March 31, 2015. As of such date, the note had an outstanding balance of $297 thousand, an annual interest rate of 8.51% , and a maturity date of January 1, 2016 . Interest income on the note amounted to $6 thousand during the first three months of 2015. Such note was fully settled in December 2015. |
Investment in Equipment and Lea
Investment in Equipment and Leases, Net | 3 Months Ended |
Mar. 31, 2016 | |
Investment in Equipment and Leases, Net [Abstract] | |
Investment in Equipment and Leases, Net | 4 . Investment in equipment and leases, net: The Company’s investment in leases consists of the following (in thousands): Balance December 31, 2015 Reclassifications, Additions/ Dispositions Depreciation/ Amortization Expense or Amortization of Leases Balance March 31, 2016 Net investment in operating leases $ 2,688 $ (17) $ (103) $ 2,568 Net investment in direct financing leases 9 - (3) 6 Initial direct costs, net of accumulated amortization of $29 at March 31, 2016 and $27 at December 31, 2015 15 - (2) 13 Total $ 2,712 $ (17) $ (108) $ 2,587 Impairment of investments in leases and assets held for sale or lease: Recorded values of the Company’s leased asset portfolio are reviewed each quarter to confirm the reasonableness of established residual values and to determine whether there is indication that an asset impairment might have taken place. The Company uses a variety of sources and considers many factors in evaluating whether the respective book values of its assets are appropriate. In addition, the Company may direct a residual value review at any time if it becomes aware of issues regarding the ability of a lessee to continue to make payments on its lease contract. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than their net book value. The estimated undiscounted future cash flows are the sum of the residual value of the asset at the end of the asset’s lease contract and undiscounted future rents from the existing lease contract, if any. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date. Upward adjustments for impairments recognized in prior periods are not made in any circumstances. As a result of these reviews, management determined that no impairment losses existed during the three months ended March 31, 2016 and 2015. 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 $103 thousand and $264 thousand for the respective three months ended March 31, 2016 and 2015. Initial direct costs amortization expense related to the Company’s operating and direct financing leases amounted to $2 thousand for each of the three-month periods ended March 31, 2016 and 2015. All of the leased property was acquired during the years 2005 through 2011. Operating leases: Property on operating leases consists of the following (in thousands): Balance December 31, 2015 Additions Reclassifications or Dispositions Balance March 31, 2016 Transportation, rail $ 10,503 $ - $ - $ 10,503 Aviation 1,658 - - 1,658 Transportation, other 1,475 - - 1,475 Marine vessels 1,415 - - 1,415 Manufacturing 467 - - 467 Materials handling 338 - (147) 191 Construction 148 - (5) 143 16,004 - (152) 15,852 Less accumulated depreciation (13,316) (103) 135 (13,284) Total $ 2,688 $ (103) $ (17) $ 2,568 The average estimated residual value for assets on operating leases was 8% of the assets’ original cost at both March 31, 2016 and December 31, 2015 . There were no operating lease contracts placed in non-accrual status at March 31, 2016 and December 31, 2015. Direct financing leases: As of March 31, 2016 and December 31, 2015, investment in direct financing leases consists of construction equipment. The components of the Company’s investment in direct financing leases as of March 31, 2016 and December 31, 2015 are as follows (in thousands): March 31, 2016 December 31, 2015 Total minimum lease payments receivable $ 6 $ 11 Estimated residual values of leased equipment (unguaranteed) 1 1 Investment in direct financing leases 7 12 Less unearned income (1) (3) Net investment in direct financing leases $ 6 $ 9 There were no investment s in direct financing lease assets in non-accrual status at March 31, 2016 and December 31, 2015. At March 31, 2016 , the aggregate amounts of future minimum lease payments to be received are as follows (in thousands): Operating Leases Direct Financing Leases Total Nine months ending December 31, 2016 $ 828 $ 6 $ 834 Year ending December 31, 2017 894 - 894 2018 429 - 429 2019 322 - 322 2020 265 - 265 2021 78 78 $ 2,816 $ 6 $ 2,822 The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of March 31, 2016, the respective useful lives of each category of lease assets in the Company’s portfolio are as follows (in years): Equipment category Useful Life Transportation, rail 35 - 40 Marine vessels 20 - 30 Aviation 15 - 20 Manufacturing 10 - 15 Construction 7 - 10 Materials handling 7 - 10 Transportation, other 7 - 10 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2016 | |
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. 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; and investor relations, communications services and general administrative services 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 s uch as managed assets, number of investors or contributed capital based upon the type of cost incurred. The Operating Agreement places an annual limit and a cumulative limit for cost reimbursements to AFS and/or 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 of the cumulative limit. As of March 31, 2016, the Company has not exceeded the annual and/or cumulative limitations discussed above. AFS and/or affiliates earned fees and billed for reimbursements of costs and expenses pursuant to the Operating Agreement as follows during the three months ended March 31, 2016 and 2015 (in thousands): Three Months Ended March 31, 2016 2015 Costs reimbursed to Managing Member and/or affiliates $ 33 $ 49 Asset management fees to Managing Member 32 30 $ 65 $ 79 |
Commitments
Commitments | 3 Months Ended |
Mar. 31, 2016 | |
Commitments [Abstract] | |
Commitments | 6 . Commitments: At March 31, 2016 , the Company had no commitments to either purchase lease assets or fund loans. |
Guarantees
Guarantees | 3 Months Ended |
Mar. 31, 2016 | |
Guarantees [Abstract] | |
Guarantees | 7 . Guarantees: The Company enters into contracts that contain a variety of indemnifications. The Company’s maximum exposure under these arrangements is unknown. However, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote. The Managing Member knows of no facts or circumstances that would make the Company’s contractual commitments outside standard mutual covenants applicable to commercial transactions between businesses. Accordingly, the Company believes that these indemnification obligations are made in the ordinary course of business as part of standard commercial and industry practice, and that any potential liability under the Company’s similar commitments is remote. Should any such indemnification obligation become payable, the Company would separately record and/or disclose such liability in accordance with GAAP. |
Members' Capital
Members' Capital | 3 Months Ended |
Mar. 31, 2016 | |
Members' Capital [Abstract] | |
Members' Capital | 8 . Members’ capital: A total of 5,209,307 Units were issued and outstanding as of March 31, 2016 and December 31, 2015. The Fund was authorized to issue up to 15,000,000 Units in addition to the Units issued to the initial members ( 50 Units) . The Company terminated sales of Units effective April 30, 2006. The Company has the right, exercisable at the Manager’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 Manager on terms it determines to be appropriate under given circumstances, in the event that the Manager deems such repurchase to be in the best interest of the Company; provided, the Company is never required to repurchase any Units. Upon the repurchase of any Units by the Fund, the tendered Units are cancelled. Units repurchased in prior periods were repurchased at amounts representing the original investment less cumulative distributions made to the Unitholder with respect to the Units. All Units repurchased during a quarter are deemed to be repurchased effective the last day of the preceding quarter, and are not deemed to be outstanding during, or entitled to allocations of net income, net loss or distributions for the quarter in which such repurchase occurs. The monthly distributions were discontinued in 2013 as the Company entered its liquidation phase. The rates and frequency of periodic distributions paid by the Fund during its liquidation phase are solely at the discretion of the Manager. There were no distributions declared or paid during the three months ended March 31, 2016 and 2015. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 9 . Fair value measurements: 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. At March 31, 2016 and December 31, 2015, only the Company’s warrants were measured on a recurring basis. In addition, certain investment securities deemed impaired were measured at fair value on a non-recurring basis as of March 31, 2016 and December 31, 2015. The Company’s valuation policy is determined by members of the Asset Management, Credit and Accounting departments. Whenever possible, the policy is to obtain quoted market prices in active markets to estimate fair values for recognition and disclosure purposes. Where quoted market prices in active markets are not available, fair values are estimated using discounted cash flow analyses, broker quotes, information from third party remarketing agents, third party appraisals of collateral and/or other valuation techniques. These techniques are significantly affected by certain of the Company’s assumptions, including discount rates and estimates of future cash flows. Potential taxes and other transaction costs are not considered in estimating fair values. As the Company is responsible for determining fair value, an analysis is performed on prices obtained from third parties. Such analysis is performed by asset management and credit department personnel who are familiar with the Company’s investments in equipment, notes receivable and equity securities of venture companies. The analysis may include a periodic review of price fluctuations and validation of numbers obtained from a specific third party by reference to multiple representative sources. Such fair value adjustments utilized the following methodology: Warrants (recurring) Warrants owned by the Company are not registered for public sale, but are considered derivatives and are carried on the balance sheet at an estimated fair value at the end of the period. The valuation of the warrants was determined using a Black-Scholes formulation of value based upon the stock price(s), the exercise price(s), the volatility of comparable venture companies, and a risk free interest rate for the term(s) of the warrant exercise(s). As of March 31, 2016 and December 31, 2015, the calculated fair value of the Company’s warrant portfolio approximated $10 thousand and $27 thousand, respectively. Such valuations are classified within Level 3 of the valuation hierarchy. The following table reconciles the beginning and ending balances of the Company’s Level 3 recurring assets (in thousand s ): Level 3 Assets Balance at December 31, 2015 $ 27 Unrealized loss on warrants, net recorded during the period (17) Balance at March 31, 2016 $ 10 Impaired investment securities (non-recurring) The Company’s investment securities are not registered for public sale and are carried at cost. The investment securities are adjusted for impairment, if any, based upon factors which 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. During the first quarter of 2016, the Company recorded a $16 thousand fair value adjustment to reduce the cost basis of an impaired investment security to zero. The 100% reduction in value was based on a market approach technique and uses inputs that reflect qualitative and quantitative information provided by the management of the investee. Such information indicated a significantly reduced value as evidenced by the purchase price of the investee as contemplated in its acquisition terms. During 2015, the Company recorded a fair value adjustment of $6 thousand to reduce the cost basis of an impaired investment security. Such adjustment was recorded subsequent to the first quarter of 2015. The reduction in value was based on a market approach technique and uses inputs that reflect qualitative and quantitative information provided by the management of the investee, which indicated reduced growth opportunity and eventual reduction in cash flows and revenues. Under the Fair Value Measurements Topic of the FASB Accounting Standards Codification, the fair value of the aforementioned impaired investment securities were classified within Level 3 of the valuation hierarchy . As previously mentioned, the fair value of the investment security impaired during the first quarter of 2016 was zero as of March 31, 2016. The following table presents the fair value measurements of impaired investment securities measured at fair value on a non-recurring basis and the level within the hierarchy in which the fair value measurements fall at December 31, 2015 (in thousands): December 31, 2015 Level 1 Estimated Fair Value Level 2 Estimated Fair Value Level 3 Estimated Fair Value Assets measured at fair value on a non-recurring basis: Impaired investment securities $ 4 $ - $ - $ 4 The following table summarizes the valuation techniques and significant unobservable inputs used for the Company’s recurring and non-recurring fair value calculation categorized as Level 3 in the fair value hierarchy at March 31, 2016 and December 31, 2015: March 31, 2016 Name Valuation Frequency Valuation Technique Unobservable Inputs Range of Input Values Warrants Recurring Black-Scholes formulation Stock price $0.35 - $1.25 Exercise price $0.91 - $1.25 Time to maturity (in years) 2.16 - 2.50 Risk-free interest rate 0.75% - 0.80% Annualized volatility 100.00% Investment Securities Non-recurring Market Approach Qualitative and quantitative information (Investee Management) Not Applicable December 31, 2015 Name Valuation Frequency Valuation Technique Unobservable Inputs Range of Input Values Warrants Recurring Black-Scholes formulation Stock price $0.35 - $1.25 Exercise price $0.91 - $1.25 Time to maturity (in years) 2.41 - 2.75 Risk-free interest rate 1.16% - 1.25% Annualized volatility 100.00% Investment Securities Non-recurring Market Approach Qualitative and quantitative information (Investee Management) Not Applicable 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. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize or has realized in a current market exchange. 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. Non-recourse debt The fair value of the Company’s non-recourse debt is estimated using discounted cash flow analyses, based upon the current market borrowing rates for similar types of borrowing arrangements. Commitments and Contingencies Management has determined that no recognition for the fair value of the Company’s loan commitments is necessary because their terms are made on a market rate basis and require borrowers to be in compliance with the Company’s credit requirements at the time of funding. The fair value of contingent liabilities (or guarantees) is not considered material because management believes there has been no event that has occurred wherein a guarantee liability has been incurred or will likely be incurred. The following tables present estimated fair values of the Company’s financial instruments in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification at March 31, 2016 and December 31, 2015 (in thousands): Fair Value Measurements at March 31, 2016 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 2,340 $ 2,340 $ - $ - $ 2,340 Investment in securities 22 - - 22 22 Fair value of warrants 10 - - 10 10 Fair Value Measurements at December 31, 2015 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 3,132 $ 3,132 $ - $ - $ 3,132 Investment in securities 38 - - 38 38 Fair value of warrants 27 - - 27 27 |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Policy) | 3 Months Ended |
Mar. 31, 2016 | |
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 months ended March 31, 2016 are not necessarily indicative of the results to be expected for the full year. Certain prior period amounts may have been reclassified to conform to the current period presentation. These reclassifications had no significant effect on the reported financial position or results of operations. Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data. In preparing the accompanying unaudited financial statements, the Company has reviewed, as determined necessary by the Managing Member, events that have occurred after March 31, 2016 up until the issuance of the financial statements. No events were noted which would require additional disclosure in the footnotes to the financial statements, or adjustments thereto. |
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 for determination of the allowance for doubtful accounts and reserve for credit losses on notes receivable. |
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 United States. The primary geographic regions in which the Company seeks leasing opportunities are North America and Europe . The table below summarizes geographic information relating to the sources, by nation, of the Company’s total revenues for the three months ended March 31, 2016 and 2015 and long-lived assets as of March 31, 2016 and December 31, 2015 (dollars in thousands): For The Three Months Ended March 31, 2016 % of Total 2015 % of Total Revenue United States $ 570 99% $ 811 99% United Kingdom 7 1% 7 1% Total International 7 1% 7 1% Total $ 577 100% $ 818 100% As of March 31, As of December 31, 2016 % of Total 2015 % of Total Long-lived assets United States $ 2,584 100% $ 2,709 100% United Kingdom 3 0% 3 0% Total International 3 0% 3 0% Total $ 2,587 100% $ 2,712 100% |
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 Purchased securities are generally not registered for public sale and are carried at cost. Such securities are adjusted to fair value if the fair value is less than the carrying value and such impairment is deemed by the Managing Member to be other than temporary. 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. Based upon the Company’s review of its portfolio, a fair value adjustment of $16 thousand was recorded for the three months ended March 31, 2016 to reduce the cost basis of an impaired investment security to zero. No such fair value adjustment was deemed necessary for the three months ended March 31, 2015. There were no sales or dispositions of securities during the three months ended March 31, 2016 and 2015. Warrants Warrants owned by the Company are not registered for public sale, but are considered derivatives and are reflected at an estimated fair value on the balance sheet as determined by the Managing Member. During the three months ended March 31, 2016, the Company recorded unrealized losses of $17 thousand on fair valuation of its warrants. There were no unrealized gains or losses recorded during the prior year period. As of March 31, 2016 and December 31, 2015, the estimated fair value of the Company’s portfolio of warrants amounted to $10 thousand and $27 thousand, respectively. There were no exercises of warrants, net or otherwise, during the three months ended March 31, 2016 and 2015. |
Foreign Currency Transactions | Foreign currency transactions: Foreign currency transaction gains and losses are reported in the results of operations as “other income” or “other loss” in the period in which they occur. Currently, the Company does not use derivative instruments to hedge its economic exposure with respect to assets, liabilities and firm commitments as the foreign currency transactions risks to date have not been significant. |
Per Unit Data | Per Un it data: The Company issues only one class of Units, none of which are considered dilutive. Net income and distributions per Unit are based upon the weighted average number of Other Members ’ Units outstanding during the period . |
Recent Accounting Pronouncements | Recent accounting pronouncements: In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2016-02, Leases (Topic 842) (“ASU 2016-02”). The new standard will require lessees to recognize lease assets and lease liabilities arising from operating leases with lease terms greater than 12 months in the statement of financial position. Lessor accounting per ASU 2016-02 is mostly unchanged from the previous lease accounting GAAP. Certain changes were made to the lessor accounting guidance in order to align the lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customer s . Similar to the previous guidance, lessors will classify leases as operating, direct financing, or sales-type. Lessors in operating leases will continue to recognize the underlying asset and recognize income on a straight-line basis. Lessors determine whether a lease is a sale of the underlying asset based on whether the lessee effectively obtains control of the underlying assets. ASU-2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. Management is currently evaluating the standard and its operational and related disclosure requirements. In January 2016, FASB issued Accounting Standards Update 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). The new standard provides guidance related to accounting for equity investments and financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Management is currently evaluating the standard and its operational and related disclosure requirements. In August 2014, the FASB issued Accounting Standards Update 2014-15, Presentation of Financi al Statements — Going Concern (S ubtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU-2014-15”). The new standard provides guidance relative to management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. Management does not expect the adoption of ASU 2014-15 to have a material impact on the Company’s financial statements or related disclosures. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. On July 9, 2015, the FASB approved the deferral of the effective date of ASU 2014-09 by one year and in August 2015, issued Revenue from Contracts from Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”). ASU 2015-14 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 31, 2016, including interim reporting periods within that reporting period. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company evaluated the impact of the new standard on its financial statements and has determined that such impact is virtually non-existent as the new revenue guideline does not affect revenues from leases and loans, which comprise the majority of the Company’s revenues. |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 months ended March 31, 2016 and 2015 and long-lived assets as of March 31, 2016 and December 31, 2015 (dollars in thousands): For The Three Months Ended March 31, 2016 % of Total 2015 % of Total Revenue United States $ 570 99% $ 811 99% United Kingdom 7 1% 7 1% Total International 7 1% 7 1% Total $ 577 100% $ 818 100% As of March 31, As of December 31, 2016 % of Total 2015 % of Total Long-lived assets United States $ 2,584 100% $ 2,709 100% United Kingdom 3 0% 3 0% Total International 3 0% 3 0% Total $ 2,587 100% $ 2,712 100% |
Investment in Equipment and L19
Investment in Equipment and Leases, Net (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Investment in Equipment and Leases, Net [Abstract] | |
Investment in Leases | The Company’s investment in leases consists of the following (in thousands): Balance December 31, 2015 Reclassifications, Additions/ Dispositions Depreciation/ Amortization Expense or Amortization of Leases Balance March 31, 2016 Net investment in operating leases $ 2,688 $ (17) $ (103) $ 2,568 Net investment in direct financing leases 9 - (3) 6 Initial direct costs, net of accumulated amortization of $29 at March 31, 2016 and $27 at December 31, 2015 15 - (2) 13 Total $ 2,712 $ (17) $ (108) $ 2,587 |
Property on Operating Leases | Property on operating leases consists of the following (in thousands): Balance December 31, 2015 Additions Reclassifications or Dispositions Balance March 31, 2016 Transportation, rail $ 10,503 $ - $ - $ 10,503 Aviation 1,658 - - 1,658 Transportation, other 1,475 - - 1,475 Marine vessels 1,415 - - 1,415 Manufacturing 467 - - 467 Materials handling 338 - (147) 191 Construction 148 - (5) 143 16,004 - (152) 15,852 Less accumulated depreciation (13,316) (103) 135 (13,284) Total $ 2,688 $ (103) $ (17) $ 2,568 |
Components of Company's Investment in Direct Financing Leases | As of March 31, 2016 and December 31, 2015, investment in direct financing leases consists of construction equipment. The components of the Company’s investment in direct financing leases as of March 31, 2016 and December 31, 2015 are as follows (in thousands): March 31, 2016 December 31, 2015 Total minimum lease payments receivable $ 6 $ 11 Estimated residual values of leased equipment (unguaranteed) 1 1 Investment in direct financing leases 7 12 Less unearned income (1) (3) Net investment in direct financing leases $ 6 $ 9 |
Future Minimum Lease Payments Receivable | At March 31, 2016 , the aggregate amounts of future minimum lease payments to be received are as follows (in thousands): Operating Leases Direct Financing Leases Total Nine months ending December 31, 2016 $ 828 $ 6 $ 834 Year ending December 31, 2017 894 - 894 2018 429 - 429 2019 322 - 322 2020 265 - 265 2021 78 78 $ 2,816 $ 6 $ 2,822 |
Schedule of Useful Lives of Assets | The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of March 31, 2016, the respective useful lives of each category of lease assets in the Company’s portfolio are as follows (in years): Equipment category Useful Life Transportation, rail 35 - 40 Marine vessels 20 - 30 Aviation 15 - 20 Manufacturing 10 - 15 Construction 7 - 10 Materials handling 7 - 10 Transportation, other 7 - 10 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement | AFS and/or affiliates earned fees and billed for reimbursements of costs and expenses pursuant to the Operating Agreement as follows during the three months ended March 31, 2016 and 2015 (in thousands): Three Months Ended March 31, 2016 2015 Costs reimbursed to Managing Member and/or affiliates $ 33 $ 49 Asset management fees to Managing Member 32 30 $ 65 $ 79 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Measurements [Abstract] | |
Reconciliation of Level 3 Assets | The following table reconciles the beginning and ending balances of the Company’s Level 3 recurring assets (in thousand s ): Level 3 Assets Balance at December 31, 2015 $ 27 Unrealized loss on warrants, net recorded during the period (17) Balance at March 31, 2016 $ 10 |
Fair Value Measurement of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis | The following table presents the fair value measurements of impaired investment securities measured at fair value on a non-recurring basis and the level within the hierarchy in which the fair value measurements fall at December 31, 2015 (in thousands): December 31, 2015 Level 1 Estimated Fair Value Level 2 Estimated Fair Value Level 3 Estimated Fair Value Assets measured at fair value on a non-recurring basis: Impaired investment securities $ 4 $ - $ - $ 4 |
Summary Valuation Techniques and Significant Unobservable Inputs Used | The following table summarizes the valuation techniques and significant unobservable inputs used for the Company’s recurring and non-recurring fair value calculation categorized as Level 3 in the fair value hierarchy at March 31, 2016 and December 31, 2015: March 31, 2016 Name Valuation Frequency Valuation Technique Unobservable Inputs Range of Input Values Warrants Recurring Black-Scholes formulation Stock price $0.35 - $1.25 Exercise price $0.91 - $1.25 Time to maturity (in years) 2.16 - 2.50 Risk-free interest rate 0.75% - 0.80% Annualized volatility 100.00% Investment Securities Non-recurring Market Approach Qualitative and quantitative information (Investee Management) Not Applicable December 31, 2015 Name Valuation Frequency Valuation Technique Unobservable Inputs Range of Input Values Warrants Recurring Black-Scholes formulation Stock price $0.35 - $1.25 Exercise price $0.91 - $1.25 Time to maturity (in years) 2.41 - 2.75 Risk-free interest rate 1.16% - 1.25% Annualized volatility 100.00% Investment Securities Non-recurring Market Approach Qualitative and quantitative information (Investee Management) Not Applicable |
Estimated Fair Values of Financial Instruments | The following tables present estimated fair values of the Company’s financial instruments in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification at March 31, 2016 and December 31, 2015 (in thousands): Fair Value Measurements at March 31, 2016 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 2,340 $ 2,340 $ - $ - $ 2,340 Investment in securities 22 - - 22 22 Fair value of warrants 10 - - 10 10 Fair Value Measurements at December 31, 2015 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 3,132 $ 3,132 $ - $ - $ 3,132 Investment in securities 38 - - 38 38 Fair value of warrants 27 - - 27 27 |
Organization and Limited Liab22
Organization and Limited Liability Company Matters (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 13, 2005 | Apr. 11, 2005 | May. 31, 2005 | Dec. 31, 2012 | Mar. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||
Business cessation date | Dec. 31, 2025 | ||||||
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 | 958,274 | 120,000 | |||||
Proceeds from sale of Limited Liability Company Units | $ 9,600 | $ 1,200 | |||||
Contribution of rescissions | $ 52,200 | ||||||
Gross contributions from Other Members | 52,800 | ||||||
Repurchase of Units, value | $ 636 | ||||||
Units issued | 5,209,307 | 5,209,307 | 5,209,307 | ||||
Units outstanding | 5,209,307 | 5,209,307 | 5,209,307 | ||||
Reinvestment period | 6 years | ||||||
Minimum [Member] | |||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||||
Amount of aggregate subscriptions for Pennsylvania subscriptions to be released to the Fund | $ 7,500 |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016USD ($)segment | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | |
Summary of Significant Accounting Policies [Abstract] | |||
Number of operating segments | segment | 1 | ||
Number of reportable segments | segment | 1 | ||
Impairment losses on investment in securities | $ 16 | ||
Unrealized losses relative to the conversion of warrants | (17) | ||
Gain on exercise of warrants | 0 | $ 0 | |
Estimated fair value of warrants | $ 10 | $ 27 |
Summary of Significant Accoun24
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 | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 577 | $ 818 | |
Percentage of total revenue | 100.00% | 100.00% | |
Long-lived assets | $ 2,587 | $ 2,712 | |
Percentage of long lived assets | 100.00% | 100.00% | |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 570 | $ 811 | |
Percentage of total revenue | 99.00% | 99.00% | |
Long-lived assets | $ 2,584 | $ 2,709 | |
Percentage of long lived assets | 100.00% | 100.00% | |
United Kingdom [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 7 | $ 7 | |
Percentage of total revenue | 1.00% | 1.00% | |
Long-lived assets | $ 3 | $ 3 | |
Percentage of long lived assets | 0.00% | 0.00% | |
Total International [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 7 | $ 7 | |
Percentage of total revenue | 1.00% | 1.00% | |
Long-lived assets | $ 3 | $ 3 | |
Percentage of long lived assets | 0.00% | 0.00% |
Notes Receivable, Net (Narrativ
Notes Receivable, Net (Narrative) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2015USD ($) | |
Notes Receivable, Net [Abstract] | |
Notes receivable, annual interest rate | 8.51% |
Notes maturity date | Jan. 1, 2016 |
Notes receivable, net | $ 297 |
Interest on notes receivable | $ 6 |
Investment in Equipment and L26
Investment in Equipment and Leases, Net (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Investment in Equipment and Leases, Net [Abstract] | |||
Depreciation of operating lease assets | $ 103 | $ 264 | |
Amortization of initial direct costs | $ 2 | $ 2 | |
Average estimated residual value of assets on operating leases | 8.00% | 8.00% |
Investment in Equipment and L27
Investment in Equipment and Leases, Net (Investment in Leases) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Leases Disclosure [Line Items] | ||
Balance December 31, 2015 | $ 2,712 | |
Reclassifications, Additions/Dispositions | (17) | |
Depreciation/Amortization Expense or Amortization of Leases | (108) | |
Balance March 31, 2016 | 2,587 | |
Initial direct costs, accumulated amortization | 29 | $ 27 |
Operating Leases [Member] | ||
Leases Disclosure [Line Items] | ||
Balance December 31, 2015 | 2,688 | |
Reclassifications, Additions/Dispositions | (17) | |
Depreciation/Amortization Expense or Amortization of Leases | (103) | |
Balance March 31, 2016 | 2,568 | |
Direct Financing Leases [Member] | ||
Leases Disclosure [Line Items] | ||
Balance December 31, 2015 | 9 | |
Depreciation/Amortization Expense or Amortization of Leases | (3) | |
Balance March 31, 2016 | 6 | |
Initial Direct Cost [Member] | ||
Leases Disclosure [Line Items] | ||
Balance December 31, 2015 | 15 | |
Depreciation/Amortization Expense or Amortization of Leases | (2) | |
Balance March 31, 2016 | $ 13 |
Investment in Equipment and L28
Investment in Equipment and Leases, Net (Property on Operating Leases) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | $ 15,852 | $ 16,004 |
Less accumulated depreciation | (13,284) | (13,316) |
Property on operating leases, net | $ 2,568 | 2,688 |
Additions, gross | ||
Additions, less accumulated depreciation | $ (103) | |
Additions, net | (103) | |
Reclassifications or dispositions, gross | (152) | |
Reclassifications or dispositions, less accumulated depreciation | 135 | |
Reclassifications or dispositions, net | (17) | |
Transportation, Rail [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | $ 10,503 | 10,503 |
Additions, gross | ||
Reclassifications or dispositions, gross | ||
Aviation [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | $ 1,658 | 1,658 |
Additions, gross | ||
Reclassifications or dispositions, gross | ||
Transportation, Other [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | $ 1,475 | 1,475 |
Additions, gross | ||
Reclassifications or dispositions, gross | ||
Marine Vessels [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | $ 1,415 | 1,415 |
Additions, gross | ||
Reclassifications or dispositions, gross | ||
Manufacturing [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | $ 467 | 467 |
Additions, gross | ||
Reclassifications or dispositions, gross | ||
Materials Handling [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | $ 191 | 338 |
Additions, gross | ||
Reclassifications or dispositions, gross | $ (147) | |
Construction [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | $ 143 | $ 148 |
Additions, gross | ||
Reclassifications or dispositions, gross | $ (5) |
Investment in Equipment and L29
Investment in Equipment and Leases, Net (Components of Investment in Direct Financing Leases) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Investment in Equipment and Leases, Net [Abstract] | ||
Total minimum lease payments receivable | $ 6 | $ 11 |
Estimated residual values of leased equipment (unguaranteed) | 1 | 1 |
Investment in direct financing leases | 7 | 12 |
Less unearned income | (1) | (3) |
Net investment in direct financing leases | $ 6 | $ 9 |
Investment in Equipment and L30
Investment in Equipment and Leases, Net (Future Minimum Lease Payments Receivable) (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Operating Leases | |
Nine months ending December 31, 2016 | $ 828 |
Year ending December 31, 2017 | 894 |
2,018 | 429 |
2,019 | 322 |
2,020 | 265 |
2,021 | 78 |
Operating leases, future minimum payments receivable, total | 2,816 |
Direct Financing Leases | |
Nine months ending December 31, 2016 | $ 6 |
Year ending December 31, 2017 | |
2,018 | |
2,019 | |
2,020 | |
2,021 | |
Capital leases, future minimum payments receivable, total | $ 6 |
Total | |
Nine months ending December 31, 2016 | 834 |
Year ending December 31, 2017 | 894 |
2,018 | 429 |
2,019 | 322 |
2,020 | 265 |
2,021 | 78 |
Operating and capital leases, future minimum payments, Receivable, total | $ 2,822 |
Investment in Equipment and L31
Investment in Equipment and Leases, Net (Schedule of Useful Lives of Lease Assets) (Details) | 3 Months Ended |
Mar. 31, 2016 | |
Minimum [Member] | Transportation, Rail [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 35 years |
Minimum [Member] | Marine Vessels [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 20 years |
Minimum [Member] | Aviation [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 15 years |
Minimum [Member] | Manufacturing [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 10 years |
Minimum [Member] | Construction [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 7 years |
Minimum [Member] | Materials Handling [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 7 years |
Minimum [Member] | Transportation, Other [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 7 years |
Maximum [Member] | Transportation, Rail [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 40 years |
Maximum [Member] | Marine Vessels [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 30 years |
Maximum [Member] | Aviation [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 20 years |
Maximum [Member] | Manufacturing [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 15 years |
Maximum [Member] | Construction [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 10 years |
Maximum [Member] | Materials Handling [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 10 years |
Maximum [Member] | Transportation, Other [Member] | |
Property Subject to or Available for Operating Lease [Line Items] | |
Useful lives of lease assets | 10 years |
Related Party Transactions (Aff
Related Party Transactions (Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Related Party Transactions [Abstract] | ||
Cost reimbursements to Managing Member and/or affiliates | $ 33 | $ 49 |
Asset management fees to Managing Member | 32 | 30 |
Related party transaction, total | $ 65 | $ 79 |
Commitments (Narrative) (Detail
Commitments (Narrative) (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Commitments [Abstract] | |
Commitments to purchase lease assets or fund loans | $ 0 |
Members' Capital (Narrative) (D
Members' Capital (Narrative) (Details) - $ / shares | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Members Capital Account [Line Items] | ||||
Units issued | 5,209,307 | 5,209,307 | ||
Units outstanding | 5,209,307 | 5,209,307 | ||
Other Members capital account, Units authorized | 15,000,000 | 15,000,000 | ||
Potential repurchase price of Units as percentage of holder's capital account | 100.00% | |||
Weighted average distributions per Unit | $ 0 | $ 0 | $ 0.70 | |
Other Members [Member] | ||||
Other Members Capital Account [Line Items] | ||||
Units outstanding | 5,209,307 | 5,209,307 | 5,209,307 | |
Managing Member [Member] | ||||
Other Members Capital Account [Line Items] | ||||
Units issued | 50 | 50 | 50 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Fair Value Measurements [Abstract] | ||
Estimated fair value of warrants | $ 10 | $ 27 |
Fair value adjustments which reduced the cost basis of impaired loans | $ 16 | $ 6 |
Percentage of fair value adjustments | 100.00% |
Fair Value Measurements (Reconc
Fair Value Measurements (Reconciliation of Level 3 Assets) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Fair Value Measurements [Abstract] | |
Balance at December 31, 2015 | $ 27 |
Unrealized loss on warrants, net recorded during the period | (17) |
Balance at March 31, 2016 | $ 10 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurement of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impaired investment securities | $ 4 |
Level 1 Estimated Fair Value [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impaired investment securities | |
Level 2 Estimated Fair Value [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impaired investment securities | |
Level 3 Estimated Fair Value [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impaired investment securities | $ 4 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary Valuation Techniques and Significant Unobservable Inputs Used) (Details) - Recurring [Member] - Black-Scholes [Member] - Warrants [Member] - Level 3 Estimated Fair Value [Member] - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Annualized volatility | 100.00% | 100.00% |
Minimum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Stock price | $ 0.35 | $ 0.35 |
Exercise price | $ 0.91 | $ 0.91 |
Time to maturity (in years) | 2 years 1 month 28 days | 2 years 4 months 28 days |
Risk-free interest rate | 0.75% | 1.16% |
Maximum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Stock price | $ 1.25 | $ 1.25 |
Exercise price | $ 1.25 | $ 1.25 |
Time to maturity (in years) | 2 years 6 months | 2 years 9 months |
Risk-free interest rate | 0.80% | 1.25% |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Financial assets: | ||
Fair value of warrants | $ 10 | $ 27 |
Carrying Amount [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 2,340 | 3,132 |
Investment in securities | 22 | 38 |
Fair value of warrants | 10 | 27 |
Estimated Fair Value [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 2,340 | 3,132 |
Investment in securities | 22 | 38 |
Fair value of warrants | 10 | 27 |
Estimated Fair Value [Member] | Level 1 Estimated Fair Value [Member] | ||
Financial assets: | ||
Cash and cash equivalents | $ 2,340 | 3,132 |
Investment in securities | ||
Fair value of warrants | ||
Estimated Fair Value [Member] | Level 2 Estimated Fair Value [Member] | ||
Financial assets: | ||
Cash and cash equivalents | ||
Investment in securities | ||
Fair value of warrants | ||
Estimated Fair Value [Member] | Level 3 Estimated Fair Value [Member] | ||
Financial assets: | ||
Investment in securities | $ 22 | 38 |
Fair value of warrants | $ 10 | $ 27 |