Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 31, 2018 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | ATEL 12, LLC | |
Entity Central Index Key | 1,394,922 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Units Outstanding | 2,992,482 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 1,139 | $ 479 |
Accounts receivable, net | 4 | 42 |
Due from Managing Member | 33 | 10 |
Due from affiliates | 4 | |
Investment in securities | 39 | 27 |
Warrants, fair value | 159 | 149 |
Investments in equipment and leases, net | 1,640 | 1,924 |
Prepaid expenses and other assets | 31 | 25 |
Total assets | 3,049 | 2,656 |
Accounts payable and accrued liabilities: | ||
Managing Member | 13 | |
Affiliates | 5 | 36 |
Other | 195 | 257 |
Non-recourse debt | 103 | |
Unearned operating lease income | 53 | 37 |
Total liabilities | 266 | 433 |
Commitments and contingencies | ||
Members' capital: | ||
Other Members | 2,783 | 2,223 |
Total Members' capital | 2,783 | 2,223 |
Total liabilities and Members' capital | $ 3,049 | $ 2,656 |
Statements of Operations
Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Leasing and lending activities: | ||||
Operating leases | $ 328 | $ 297 | $ 990 | $ 1,005 |
Gain on sales of lease assets | 6 | 15 | ||
Gain on sales or dispositions of investment in securities | 11 | 75 | ||
Unrealized (loss) gain on fair value adjustment for investment in securities | (8) | 12 | ||
Unrealized gain (loss) on fair value adjustment for warrants | 3 | 0 | 10 | (2) |
Other | 1 | 1 | 27 | 11 |
Total revenues | 324 | 298 | 1,056 | 1,104 |
Expenses: | ||||
Depreciation of operating lease assets | 32 | 142 | 197 | 427 |
Asset management fees to Managing Member | 13 | 9 | 42 | 36 |
Cost reimbursements to Managing Member and/or affiliates | 14 | 39 | 99 | 130 |
Provision for (reversal of) credit losses | 34 | (37) | 42 | |
Impairment losses on equipment | 229 | 229 | ||
Interest expense | 2 | 7 | ||
Professional fees | 14 | 18 | 91 | 117 |
Outside services | 20 | 13 | 59 | 56 |
Taxes on income and franchise fees | 8 | 13 | 12 | 32 |
Insurance | 3 | 7 | ||
Other | 12 | 8 | 26 | 36 |
Total expenses | 116 | 507 | 496 | 1,112 |
Net income (loss) | 208 | (209) | 560 | (8) |
Net income (loss): | ||||
Managing Member | 66 | |||
Other Members | 208 | (209) | 560 | (74) |
Net income (loss) | $ 208 | $ (209) | $ 560 | $ (8) |
Net income (loss) per Limited Liability Company Unit (Other Members) | $ 0.07 | $ (0.07) | $ 0.19 | $ (0.02) |
Weighted average number of Units outstanding | 2,992,482 | 2,992,482 | 2,992,482 | 2,992,482 |
Statements of Changes in Member
Statements of Changes in Members' Capital - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Beginning Balance | $ 2,223 | $ 3,299 | $ 3,299 | |
Distributions to Others Members | (818) | (818) | ||
Distributions to Managing Member | (66) | |||
Net (loss) income | $ 208 | 560 | $ (8) | (192) |
Ending Balance | $ 2,783 | $ 2,783 | $ 2,223 | |
Other Members [Member] | ||||
Beginning Balance (in Units) | 2,992,482 | 2,992,482 | 2,992,482 | |
Beginning Balance | $ 2,223 | $ 3,299 | $ 3,299 | |
Distributions to Others Members | (818) | |||
Net (loss) income | $ 560 | $ (258) | ||
Ending Balance (in Units) | 2,992,482 | 2,992,482 | 2,992,482 | |
Ending Balance | $ 2,783 | $ 2,783 | $ 2,223 | |
Managing Member [Member] | ||||
Distributions to Managing Member | (66) | |||
Net (loss) income | $ 66 |
Statements of Changes in Memb_2
Statements of Changes in Members' Capital (Parenthetical) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2017 | |
Statements of Changes in Members' Capital [Abstract] | ||
Distributions to Other Members, per Unit | $ 0.27 | $ 0.27 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Operating activities: | |||||
Net income (loss) | $ 208 | $ (209) | $ 560 | $ (8) | $ (192) |
Adjustment to reconcile net income (loss) to cash provided by operating activities: | |||||
Gain on sales of lease assets | (6) | (15) | |||
Depreciation of operating lease assets | 32 | 142 | 197 | 427 | |
Provision for (reversal of) credit losses | 34 | (37) | 42 | ||
Impairment losses on equipment | 229 | 229 | 281 | ||
Gain on sales or dispositions of investment in securities | (11) | (75) | |||
Unrealized loss (gain) on fair value adjustment for investment in securities | 8 | (12) | |||
Unrealized (gain) loss on fair value adjustment for warrants | (3) | 0 | (10) | 2 | |
Changes in operating assets and liabilities: | |||||
Accounts receivable | (1) | (9) | 75 | 17 | |
Due from Managing Member and affiliates | (27) | (27) | |||
Prepaid expenses and other assets | (1) | (6) | (6) | (2) | |
Accounts payable, Managing Member and affiliates | 3 | (6) | (18) | (33) | |
Accounts payable, other | (5) | (10) | (62) | 28 | |
Unearned operating lease income | 23 | 4 | 16 | 36 | |
Net cash provided by operating activities | 237 | 169 | 659 | 648 | |
Investing activities: | |||||
Proceeds from sales of lease assets | 93 | 64 | |||
Proceeds from sales or dispositions of investment in securities | 11 | 99 | 11 | 99 | |
Principal payments recorded on direct financing leases | 1 | ||||
Net cash provided by investing activities | 11 | 99 | 104 | 164 | |
Financing activities: | |||||
Repayments under non-recourse debt | (116) | (103) | (346) | ||
Net cash used in financing activities | (520) | (103) | (1,479) | ||
Net increase (decrease ) in cash and cash equivalents | 248 | (252) | 660 | (667) | |
Cash and cash equivalents at beginning of period | 891 | 618 | 479 | 1,033 | 1,033 |
Cash and cash equivalents at end of period | $ 1,139 | 366 | 1,139 | 366 | 479 |
Supplemental disclosures of cash flow information: | |||||
Cash paid during the period for interest | 2 | 7 | |||
Cash paid during the period for taxes | 13 | 19 | 29 | ||
Other Members [Member] | |||||
Operating activities: | |||||
Net income (loss) | $ 560 | (258) | |||
Financing activities: | |||||
Distributions to Members | (374) | (1,048) | |||
Managing Member [Member] | |||||
Operating activities: | |||||
Net income (loss) | $ 66 | ||||
Financing activities: | |||||
Distributions to Members | $ (30) | $ (85) |
Organization and Limited Liabil
Organization and Limited Liability Company Matters | 9 Months Ended |
Sep. 30, 2018 | |
Organization and Limited Liability Company Matters [Abstract] | |
Organization and Limited Liability Company Matters | 1. Organization and Limited Liability Company matters: ATEL 12, LLC (the “Company” or the “Fund”) was formed under the laws of the state of California on January 25, 2007 for the purpose of equipment financing and acquiring equipment to engage in equipment leasing and sales activities . From its inception into the third quarter of 2013, the Managing Member was ATEL Associates 12, LLC (“AA12”), a Nevada limited liability company. Effective September 30 , 2013, AA12 was merged into ATEL Financial Services, LLC (“AFS” or “Managing Member” or “Manager”), a wholly-owned subsidiary of ATEL Capital Group. The Fund may continue until December 31, 2030 . As a limited liability company, the liability of any individual member for the obligations of the Fund is limited to the extent of capital contributions to the Fund by the individual member. As of September 30 , 2018 , cumulative contributions, net of rescissions and/or redemptions, totaling $ 29.9 million (inclusive of the $ 500 initial Member’s capital investment) have been received and 2,992,482 Units were issued and outstanding . The Company is governed by the ATEL 12, LLC amended and restated Limited Liability Company Operating Agreement dated April 3, 2007 (the “Operating Agreement”) . On January 1, 2016 , the Company commenced liquidation phase activities pursuant to the guidelines of the Operating Agreement. Prior thereto , the Company was in its acquisition phase and was making distributions on a monthly and quarterly basis. During the liquidation phase, p eriodic distributions are paid at the discretion of the Managing Member. 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, 2017 , filed with the Securities and Exchange Commission. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 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 from 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 September 30, 2018, up until the issuance of the financial statements. No events were noted which would require additional disclosure in the footnotes to the financial statements or adjustments thereto. Cash and cash equivalents: Cash and cash equivalents include cash in banks and cash equivalent investments such as U.S. Treasury instruments with original and/or purchased maturities of ninety days or less. Use of estimates: The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates. Such estimates primarily relate to the determination of 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. Segment reporting: The Company is organized into one operating segment for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in one reportable operating segment in the United States. The primary geographic region in which the Company sought leasing opportunities was North America. For the three and nine months ended September 30, 2018 and 2017, and as of September 30, 2018 and December 31, 2017 , 100 % of the Company’s operating revenues and long-lived assets relate to customers domiciled in the United States. Accounts receivable Accounts receivable represent the amounts billed under operating lease contracts which are currently due to the Company. Allowances for doubtful accounts are typically established based upon their aging and historical charge off and collection experience and the creditworthiness of specifically identified lessees and borrowers, and invoiced amounts. Accounts receivable deemed uncollectible are generally charged off against the allowance on a specific identification basis. Recoveries of amounts that were previously written-off are recorded as other income in the period received. Accounts receivable are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management periodically reviews the creditworthiness of companies with lease payments outstanding less than 90 days. Based upon management’s judgment, such leases may be placed in 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 receivable is probable. Until such time, revenues on operating leases are recognized on a cash basis. Investment in securities: From time to time, the Company may purchase securities of its borrowers or receive warrants in connection with its lending arrangements. Purchased securities The Company’s investment securities registered for public sale are carried at fair value. The Company’s investment securities 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 investment 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. Based upon the Company’s review of its portfolio, the Company recorded unrealized losses on fair value adjustments on investment in securities totaling $8 thousand and $12 thousand of unrealized gains on fair value adjustments during the respective three and nine months ended September 30, 2018. Purchased securities totaled $39 thousand and $27 thousand at September 30, 2018 and December 31, 2017 respectively. Warrants Warrants owned by the Company are not registered for public sale, but are considered derivatives and are reflected at an estimated fair value on the balance sheet as determined by the Managing Member . During the respective three months ended September 30, 2018 and 2017, the Company recorded $3 thousand and $0 of unrealized gains on fair value adjustments for warrants. During the respective nine months ended September 30, 2018 and 2017, the Company recorded $10 thousand of unrealized gains and $2 thousand of unrealized losses on fair value adjustments for warrants. As of September 30, 2018 and December 31, 2017, the estimated fair value of the Company’s portfolio of warrants amounted to $159 thousand and $149 thousand, respectively. There were no exercises of warrants, net or otherwise, during the three and nine months ended September 30, 2018 and 2017. Credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk include cash and cash equivalents, operating lease receivables, and accounts receivable. The Company places the majority of its cash deposits in non-interest bearing accounts with financial institutions that have no less than $10 billion in assets. Such deposits are insured up to $250,000 . The remainder of the Fund’s cash is temporarily invested in U.S. Treasury denominated instruments. The concentration of such deposits and temporary cash investments is not deemed to create a significant risk to the Company. Accounts receivable represent amounts due from 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 ASC 840-20-35-3, over the periods of the lease terms contained in each asset’s respective lease contract to the estimated residual value at the end of the lease contract. All lease assets are purchased only concurrent with the execution of a lease commitment by the lessee. Thus, the original depreciation period corresponds with the term of the original lease. Once the term of an original lease contract is completed, the subject property is typically sold to the existing user, re-leased to the existing user, or, when off-lease, is held for sale. Assets which are re-leased continue to be depreciated using the terms of the new lease agreements and the estimated residual values at the end of the new lease terms, adjusted downward as necessary. Assets classified as held-for-sale are carried at the lower of carrying amount, or the fair value less cost to sell (ASC 360-10-35-43). The Company does not use the equipment held in its portfolio, but holds it solely for lease and ultimate sale. In the course of marketing equipment that has come off-lease, management may determine at some point that re-leasing the assets may provide a superior return for investors and would then execute another lease. Upon entering into a new lease contract, management will estimate the residual value once again and resume depreciation. If, and when, the Company, at any time, determines that depreciation in value may have occurred with respect to an asset held-for-sale, the Company would review the value to determine whether a material reduction in value had occurred and recognize any appropriate impairment. All lease assets, including off-lease assets, are subject to the Company’s quarterly impairment analysis, as described below. Maintenance costs associated with the Fund’s portfolio of leased assets are expensed as incurred. Major additions and betterments are capitalized. Operating lease revenue is recognized on a straight-line basis over the term of the underlying leases. The initial lease terms will vary as to the type of equipment subject to the leases, the needs of the lessees and the terms to be negotiated, but initial leases are generally on terms from 36 to 120 months. The difference between rent received and rental revenue recognized is recorded as unearned operating lease income on the balance sheet. Operating leases are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management considers the equipment underlying the lease contracts for impairment and periodically reviews the credit worthiness of all operating lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related operating leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, revenues are recognized on a cash basis. Per Unit 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. Fair Value Measurement: 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, 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, 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 August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (“ASU 2018-13”), which amends the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. This ASU modifies disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. The amendments in this Update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted upon issuance of this Update. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this Update and delay adoption of the additional disclosures until their effective date. Management is currently evaluating the impact of this standard on the financial statements and related disclosure requirements . In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2016-15 —Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 addresses specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments in this Update are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. This guidance is effective for the Company beginning on January 1, 2018. The adoption of ASU 2016-15 did not have a material impact on its 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 net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018. Management is currently evaluating the standard and expects the Update may potentially result in an increase in the allowance for credit losses given the change to estimated losses over the contractual life adjusted for expected prepayments. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842) (“ASU 2016-02”). The new standard will require lessees to recognize lease assets and lease liabilities arising from operating leases with lease terms greater than 12 months in the statement of financial position. Lessor accounting per ASU 2016-02 is mostly unchanged from the previous lease accounting under GAAP. Certain changes were made to the lessor accounting guidance in order to align the lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. Similar to the previous guidance, lessors will classify leases as operating, direct financing, or sales-type. Lessors in operating leases will continue to recognize the underlying asset and recognize income on a straight-line basis. Lessors determine whether a lease is a sale of the underlying asset based on whether the lessee effectively obtains control of the underlying assets. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. While early adoption is permitted, the Company does not expect to elect that option. The Company expects to adopt the guidance in the first quarter 2019 using the modified retrospective method. Management is currently evaluating the impact of this standard on the financial statements and its operational and related disclosure requirements, including the impact on the Company’s current lease portfolio from a lessor perspective. As part of the adoption of the standard, the Company has selected and is in the process of implementing new lease accounting software. The Company is in the process of identifying and designing appropriate changes to its business processes, systems and controls to support the new standard. Given the limited changes to lessor accounting, Management does not expect material changes to recognition or measurement. In July 2018, the FASB issued Accounting Standards Update 2018-11, Leases (Topic 842) Targeted Improvements (“ASU 2018-11”). The new standard provides a new transition method and practical expedient to simplify the application of the new leasing standard. Under the new transition method, comparative periods presented in the financial statements in the period of adoption will not need to be restated. Instead, a Company would initially apply the new lease requirements at the effective date, and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company would continue to report comparative periods presented in the financial statements in the period of adoption under current GAAP and provide the applicable required disclosures for such periods. The new practical expedient allows lessors to avoid separating lease and associated nonlease components within a contract if certain criteria are met. If elected, lessors will be able to aggregate nonlease components that otherwise would be accounted for under the new revenue standard with the associated lease component if the following conditions are met (1) the timing and pattern of transfer of the nonlease component and the associated lease component are the same and (2) the stand-alone lease component would be classified as an operating lease if accounted for separately. For entities that have not adopted Topic 842 before the issuance of this Update, the effective date and transition requirements for the amendments in this Update related to separating components of a contract are the same as the effective date and transition requirements in Update 2016-02. The practical expedient may be elected either in the first reporting period following the issuance of this Update or at the original effective date of Topic 842 for that entity. The practical expedient may be applied either retrospectively or prospectively. Management is currently evaluating the impact of the standard on the financial statements and related disclosure requirements. The Company plans to adopt this guidance on January 1, 2019 and will prospectively apply the new lease requirements and recognize a cumulative effect adjustment upon adoption. The Company expects to utilize the package of practical expedients as provided in the standard. In January 2016, the FASB issued Accounting Standards Update 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). The new standard provides guidance related to accounting for equity investments and financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, and (v) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This guidance is effective for the Company beginning on January 1, 2018. The adoption of ASU 2016-01 did have an impact on its financial statements and disclosures. The Company’s investment securities registered for public sale with readily determinable fair values are measured at fair value with any changes in fair value recognized in the Company's results of operations. The Company elected to record equity investments without readily determinable fair values at cost, less impairment, and adjusted for changes in observable prices. Any changes in the basis of these equity investments are reported in current earnings. In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. On July 9, 2015, the FASB approved the deferral of the effective date of ASU 2014-09 by one year and in August 2015, issued Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”). ASU 2015-14 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 31, 2016, including interim reporting periods within that reporting period. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. This guidance wa s effective for the Company beginning on January 1, 2018. The adoption of ASU 2014-09 did not have a material impact on the Company’s financial statements and disclosures as the new revenue guideline does not affect revenue from leases and loans, which comprise the majority of the Company’s revenues . |
Investments in Equipment and Le
Investments in Equipment and Leases, Net | 9 Months Ended |
Sep. 30, 2018 | |
Investments in Equipment and Leases, Net [Abstract] | |
Investments in Equipment and Leases, Net | 3 . Investments in equipment and leases, net: The Company’s investment in equipment and leases consists of the following (in thousands): Reclassifications, Depreciation/ Amortization Balance Additions/ Expense or Balance December 31, Dispositions and Amortization September 30, 2017 Impairment Losses of Leases 2018 Net investment in operating leases $ 1,652 $ (15) $ (197) $ 1,440 Assets held for sale or lease, net 272 (72) - 200 Initial direct costs, net of accumulated amortization of $0 at September 30, 2018 and $3 at December 31, 2017 - - - - Total $ 1,924 $ (87) $ (197) $ 1,640 Impairment of investments in lease assets : 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 tha t an impairment existed and the Company recorded $229 thousand of impairment expense during the respective three and nine months ended September 30 , 2017 . The Company utilizes a straight line depreciation method over the term of the equipment for equipment on operating leases currently in its portfolio. Depreciation expense on the Company’s equipment totaled $32 thousand and $142 thousand for the respective three months ended September 30 , 2018 and 2017, and $197 thousand and $427 thousand for the respective nine months ended September 30, 2018 and 2017 . All of the Company’s leased property was acquired in the years 2008 through 2013. Operating leases: Property on operating leases consists of the following (in thousands): Balance Balance December 31, Reclassifications September 30, 2017 Additions or Dispositions 2018 Transportation $ 3,963 $ - $ (72) $ 3,891 Construction 2,741 - - 2,741 Aviation 2,077 - - 2,077 Other 104 - - 104 8,885 - (72) 8,813 Less accumulated depreciation (7,233) (197) 57 (7,373) Total $ 1,652 $ (197) $ (15) $ 1,440 The average estimated residual value for assets on operating leases was 16 % and 19% of the assets’ original cost at September 30 , 2018 and December 31, 2017 , respectively. There were no operating leases in non-accrual status at September 30 , 2018 and December 31, 2017 . At September 30 , 2018, the aggregate amount of future minimum operating lease payments receivable is $45 thousand all of which is due and receivable during 2018 . The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of September 30, 2018 , the respective useful lives of each category of lease assets in the Company’s portfolio are as follows (in years): Equipment category Useful Life Aviation 15 - 20 Construction 7 - 10 Materials handling 7 - 10 Transportation 7 - 10 Computer 3 - 5 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 4 . Related party transactions: The terms of the Operating Agreement provide that the Managing Member and/or affiliates are entitled to receive certain fees for equipment management and resale and for management of the Company. The Operating Agreement allows for the reimbursement of costs incurred by Managing Member and/or affiliates for providing administrative services to the Company. Administrative services provided include Company accounting, investor relations, legal counsel and lease and equipment documentation. The Managing Member is not reimbursed for services whereby it is entitled to receive a separate fee as compensation for such services, such as management of investments. The Company would be liable for certain future costs to be incurred by the Managing Member to manage the administrative services provided to the Company. Each of AFS and ATEL Leasing Corporation (“ALC”) 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 and general administrative services are performed by AFS. Cost reimbursements to the Managing Member or its affiliates are based on its costs incurred in performing administrative services for the Company. These costs are allocated to each managed entity based on certain criteria such as managed assets, number of investors or contributed capital based upon the type of cost incurred. The Managing Member believes that the costs reimbursed are the lower of (i) actual costs incurred on behalf of the Company or (ii) the amount the Company would be required to pay independent parties for comparable administrative services in the same geographic location. The Managing Member and/or affiliates earned fees and billed for reimbursements, pursuant to the Operating Agreement during the three and nine months ended September 30, 2018 and 2017 as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Administrative costs reimbursed to Managing Member and/or affiliates $ 14 $ 39 $ 99 $ 130 Asset management fees to Managing Member 13 9 42 36 $ 27 $ 48 $ 141 $ 166 |
Non-Recourse Debt
Non-Recourse Debt | 9 Months Ended |
Sep. 30, 2018 | |
Non-Recourse Debt [Abstract] | |
Non-Recourse Debt | 5 . Non-recourse debt: At September 30, 2018, the non-recourse debt was paid off . At December 31 , 2017 , non-recourse debt consist ed of notes payable to financial institutions. The notes we re due in monthly installments. Interest on the notes wa s at fixed rates ranging from 1.97 % to 2.39 % per annum. The notes we re secured by assignments of lease payments and pledges of assets. |
Commitments
Commitments | 9 Months Ended |
Sep. 30, 2018 | |
Commitments [Abstract] | |
Commitments | 6 . Commitments: At September 30 , 2018 , the Company had no commitments to purchase lease assets or fund investments in notes receivable. |
Members' Capital
Members' Capital | 9 Months Ended |
Sep. 30, 2018 | |
Members' Capital [Abstract] | |
Members' Capital | 7 . Members’ capital: A total of 2,992,482 Units were issued and outstanding at both September 30 , 2018 and December 31, 2017 . The Fund was authorized to issue up to 20,000,000 total Units. Fund distributions are to be allocated 7.5 % to the Managing Member and 92.5 % to the 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, 2018 2017 2018 2017 Distributions $ - $ - $ - $ 818 Weighted average number of Units outstanding 2,992,482 2,992,482 2,992,482 2,992,482 Weighted average distributions per Unit $ - $ - $ - $ 0.27 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018, the Company’s investment in securities and warrants were measured on a recurring basis. At December 31, 2017, only the Company’s warrants were measured on a recurring basis . The 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, time to maturity, and a risk free interest rate for the term(s) of the warrant exercise(s). As of September 30 , 2018 and December 31, 2017 , the calculated fair value of the Fund’s warrant portf olio is $159 thousand and $149 thousand, respectively . Such valuations are classified within Level 3 of the valuation hierarchy. The fair value of warrants that were accounted for on a recurring basis as of the three and nine months ended September 30, 2018 and 2017 and classified as Level 3 are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Fair value of warrants at beginning of period $ 156 $ 157 $ 149 $ 159 Unrealized gain (loss) on fair valuation of warrants 3 - 10 (2) Fair value of warrants at end of period $ 159 $ 157 $ 159 $ 157 I n vestment securities (recurring) The Company’s investment securities registered for public sale, which are recurring, with readily determinable fair values are measured at fair value with any changes in fair value recognized in the Company’s results of operations. Factors considered by the Managing Member in determining fair value include, but are not limited to, available financial information, the issuer’s ability to meet its current obligations and indications of the issuer’s subsequent ability to raise capital. The fair value of investment securities that were accounted for on a recurring basis as of the three and nine month ended September 30, 2018 and classified as Level 1 are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2018 2018 Fair value of investment in securities at beginning of period $ 41 $ 21 Unrealized (loss) gain on fair valuation of investment in securities (8) 12 Fair value of investment in securities at end of period $ 33 $ 33 Impaired off-lease equipment (non-recurring) During 2017, the Company deemed certain off-lease equipment (assets) to be impaired and recorded fair value adjustments of $281 thousand to reduce the cost basis of the equipment. The aforementioned adjustments were non-recurring. Under the Fair Value Measurements Topic of the FASB Accounting Standards Codification, the fair values of such impaired equipment are classified within Level 3 of the valuation hierarchy as the data sources utilized for the valuation of the assets reflect significant inputs that are unobservable in the market. Such valuation utilizes a market approach technique and uses inputs that reflect the sales price of similar assets sold by affiliates and/or information from third party remarketing agents not readily available in the market. The following tables summarize the valuation techniques and significant unobservable inputs used for the Company’s recurring and non-recurring fair value calculation categorized as Level 3 in the fair value hierarchy at September 30, 2018 and December 31, 2017: September 30, 2018 Valuation Valuation Unobservable Range of Name Frequency Technique Inputs Input Values Warrants Recurring Black-Scholes formulation Stock price $0.02 - $32.07 Exercise price $0.36 - $38.64 Time to maturity (in years) 0 - 5.09 Risk-free interest rate 2.12% - 2.94% Annualized volatility 47.73% - 80.08% December 31, 2017 Valuation Valuation Unobservable Range of Name Frequency Technique Inputs Input Values Warrants Recurring Black-Scholes formulation Stock price $0.02 - $14.75 Exercise price $0.36 - $25.76 Time to maturity (in years) 0.75 - 5.84 Risk-free interest rate 1.65% - 2.25% Annualized volatility 48.32% - 83.3% Impaired off-lease equipment Non-recurring Market Approach Third Party Agents' Pricing $72,525 - $200,000 Equipment Condition Good 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. Investment in securities The Company’s purchased securities registered for public sale with readily determinable fair value are carried at fair value. These investment securities are valued based on their quoted market prices. Non-recourse debt The fair value of the Company’s non-recourse debt is estimated using discounted cash flow analyses, based upon 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 825 of the FASB Accounting Standards Codification at September 30, 2018 and December 31, 2017 (in thousands): Fair Value Measurements at September 30, 2018 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 1,139 $ 1,139 $ - $ - $ 1,139 Investment in securities 33 33 - - 33 Warrants, fair value 159 . - 159 159 Fair Value Measurements at December 31, 2017 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 479 $ 479 $ - $ - $ 479 Warrants, fair value 149 - - 149 149 Financial liabilities: Non-recourse debt 103 - - 102 102 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 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 from 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 September 30, 2018, up until the issuance of the financial statements. No events were noted which would require additional disclosure in the footnotes to the financial statements or adjustments thereto. |
Cash and Cash Equivalents | Cash and cash equivalents: Cash and cash equivalents include cash in banks and cash equivalent investments such as U.S. Treasury instruments with original and/or purchased maturities of ninety days or less. |
Use of Estimates | Use of estimates: The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates. Such estimates primarily relate to the determination of 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. |
Segment Reporting | Segment reporting: The Company is organized into one operating segment for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in one reportable operating segment in the United States. The primary geographic region in which the Company sought leasing opportunities was North America. For the three and nine months ended September 30, 2018 and 2017, and as of September 30, 2018 and December 31, 2017 , 100 % of the Company’s operating revenues and long-lived assets relate to customers domiciled in the United States. |
Accounts Receivable | Accounts receivable Accounts receivable represent the amounts billed under operating lease contracts which are currently due to the Company. Allowances for doubtful accounts are typically established based upon their aging and historical charge off and collection experience and the creditworthiness of specifically identified lessees and borrowers, and invoiced amounts. Accounts receivable deemed uncollectible are generally charged off against the allowance on a specific identification basis. Recoveries of amounts that were previously written-off are recorded as other income in the period received. Accounts receivable are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management periodically reviews the creditworthiness of companies with lease payments outstanding less than 90 days. Based upon management’s judgment, such leases may be placed in 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 receivable is probable. Until such time, revenues on operating leases are recognized on a cash basis. |
Investment in Securities | Investment in securities: From time to time, the Company may purchase securities of its borrowers or receive warrants in connection with its lending arrangements. Purchased securities The Company’s investment securities registered for public sale are carried at fair value. The Company’s investment securities 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 investment 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. Based upon the Company’s review of its portfolio, the Company recorded unrealized losses on fair value adjustments on investment in securities totaling $8 thousand and $12 thousand of unrealized gains on fair value adjustments during the respective three and nine months ended September 30, 2018. Purchased securities totaled $39 thousand and $27 thousand at September 30, 2018 and December 31, 2017 respectively. Warrants Warrants owned by the Company are not registered for public sale, but are considered derivatives and are reflected at an estimated fair value on the balance sheet as determined by the Managing Member . During the respective three months ended September 30, 2018 and 2017, the Company recorded $3 thousand and $0 of unrealized gains on fair value adjustments for warrants. During the respective nine months ended September 30, 2018 and 2017, the Company recorded $10 thousand of unrealized gains and $2 thousand of unrealized losses on fair value adjustments for warrants. As of September 30, 2018 and December 31, 2017, the estimated fair value of the Company’s portfolio of warrants amounted to $159 thousand and $149 thousand, respectively. There were no exercises of warrants, net or otherwise, during the three and nine months ended September 30, 2018 and 2017. |
Credit Risk | Credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk include cash and cash equivalents, operating lease receivables, and accounts receivable. The Company places the majority of its cash deposits in non-interest bearing accounts with financial institutions that have no less than $10 billion in assets. Such deposits are insured up to $250,000 . The remainder of the Fund’s cash is temporarily invested in U.S. Treasury denominated instruments. The concentration of such deposits and temporary cash investments is not deemed to create a significant risk to the Company. Accounts receivable represent amounts due from 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 ASC 840-20-35-3, over the periods of the lease terms contained in each asset’s respective lease contract to the estimated residual value at the end of the lease contract. All lease assets are purchased only concurrent with the execution of a lease commitment by the lessee. Thus, the original depreciation period corresponds with the term of the original lease. Once the term of an original lease contract is completed, the subject property is typically sold to the existing user, re-leased to the existing user, or, when off-lease, is held for sale. Assets which are re-leased continue to be depreciated using the terms of the new lease agreements and the estimated residual values at the end of the new lease terms, adjusted downward as necessary. Assets classified as held-for-sale are carried at the lower of carrying amount, or the fair value less cost to sell (ASC 360-10-35-43). The Company does not use the equipment held in its portfolio, but holds it solely for lease and ultimate sale. In the course of marketing equipment that has come off-lease, management may determine at some point that re-leasing the assets may provide a superior return for investors and would then execute another lease. Upon entering into a new lease contract, management will estimate the residual value once again and resume depreciation. If, and when, the Company, at any time, determines that depreciation in value may have occurred with respect to an asset held-for-sale, the Company would review the value to determine whether a material reduction in value had occurred and recognize any appropriate impairment. All lease assets, including off-lease assets, are subject to the Company’s quarterly impairment analysis, as described below. Maintenance costs associated with the Fund’s portfolio of leased assets are expensed as incurred. Major additions and betterments are capitalized. Operating lease revenue is recognized on a straight-line basis over the term of the underlying leases. The initial lease terms will vary as to the type of equipment subject to the leases, the needs of the lessees and the terms to be negotiated, but initial leases are generally on terms from 36 to 120 months. The difference between rent received and rental revenue recognized is recorded as unearned operating lease income on the balance sheet. Operating leases are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management considers the equipment underlying the lease contracts for impairment and periodically reviews the credit worthiness of all operating lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related operating leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, revenues are recognized on a cash basis. |
Per Unit Data | Per Unit 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. |
Fair Value Measurement: | Fair Value Measurement: 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, 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, 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 August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (“ASU 2018-13”), which amends the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. This ASU modifies disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. The amendments in this Update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted upon issuance of this Update. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this Update and delay adoption of the additional disclosures until their effective date. Management is currently evaluating the impact of this standard on the financial statements and related disclosure requirements . In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2016-15 —Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 addresses specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments in this Update are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. This guidance is effective for the Company beginning on January 1, 2018. The adoption of ASU 2016-15 did not have a material impact on its 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 net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018. Management is currently evaluating the standard and expects the Update may potentially result in an increase in the allowance for credit losses given the change to estimated losses over the contractual life adjusted for expected prepayments. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842) (“ASU 2016-02”). The new standard will require lessees to recognize lease assets and lease liabilities arising from operating leases with lease terms greater than 12 months in the statement of financial position. Lessor accounting per ASU 2016-02 is mostly unchanged from the previous lease accounting under GAAP. Certain changes were made to the lessor accounting guidance in order to align the lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. Similar to the previous guidance, lessors will classify leases as operating, direct financing, or sales-type. Lessors in operating leases will continue to recognize the underlying asset and recognize income on a straight-line basis. Lessors determine whether a lease is a sale of the underlying asset based on whether the lessee effectively obtains control of the underlying assets. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. While early adoption is permitted, the Company does not expect to elect that option. The Company expects to adopt the guidance in the first quarter 2019 using the modified retrospective method. Management is currently evaluating the impact of this standard on the financial statements and its operational and related disclosure requirements, including the impact on the Company’s current lease portfolio from a lessor perspective. As part of the adoption of the standard, the Company has selected and is in the process of implementing new lease accounting software. The Company is in the process of identifying and designing appropriate changes to its business processes, systems and controls to support the new standard. Given the limited changes to lessor accounting, Management does not expect material changes to recognition or measurement. In July 2018, the FASB issued Accounting Standards Update 2018-11, Leases (Topic 842) Targeted Improvements (“ASU 2018-11”). The new standard provides a new transition method and practical expedient to simplify the application of the new leasing standard. Under the new transition method, comparative periods presented in the financial statements in the period of adoption will not need to be restated. Instead, a Company would initially apply the new lease requirements at the effective date, and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company would continue to report comparative periods presented in the financial statements in the period of adoption under current GAAP and provide the applicable required disclosures for such periods. The new practical expedient allows lessors to avoid separating lease and associated nonlease components within a contract if certain criteria are met. If elected, lessors will be able to aggregate nonlease components that otherwise would be accounted for under the new revenue standard with the associated lease component if the following conditions are met (1) the timing and pattern of transfer of the nonlease component and the associated lease component are the same and (2) the stand-alone lease component would be classified as an operating lease if accounted for separately. For entities that have not adopted Topic 842 before the issuance of this Update, the effective date and transition requirements for the amendments in this Update related to separating components of a contract are the same as the effective date and transition requirements in Update 2016-02. The practical expedient may be elected either in the first reporting period following the issuance of this Update or at the original effective date of Topic 842 for that entity. The practical expedient may be applied either retrospectively or prospectively. Management is currently evaluating the impact of the standard on the financial statements and related disclosure requirements. The Company plans to adopt this guidance on January 1, 2019 and will prospectively apply the new lease requirements and recognize a cumulative effect adjustment upon adoption. The Company expects to utilize the package of practical expedients as provided in the standard. In January 2016, the FASB issued Accounting Standards Update 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). The new standard provides guidance related to accounting for equity investments and financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, and (v) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. This guidance is effective for the Company beginning on January 1, 2018. The adoption of ASU 2016-01 did have an impact on its financial statements and disclosures. The Company’s investment securities registered for public sale with readily determinable fair values are measured at fair value with any changes in fair value recognized in the Company's results of operations. The Company elected to record equity investments without readily determinable fair values at cost, less impairment, and adjusted for changes in observable prices. Any changes in the basis of these equity investments are reported in current earnings. In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. On July 9, 2015, the FASB approved the deferral of the effective date of ASU 2014-09 by one year and in August 2015, issued Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”). ASU 2015-14 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 31, 2016, including interim reporting periods within that reporting period. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. This guidance wa s effective for the Company beginning on January 1, 2018. The adoption of ASU 2014-09 did not have a material impact on the Company’s financial statements and disclosures as the new revenue guideline does not affect revenue from leases and loans, which comprise the majority of the Company’s revenues . |
Investments in Equipment and _2
Investments in Equipment and Leases, Net (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments in Equipment and Leases, Net [Abstract] | |
Investment in Leases | The Company’s investment in equipment and leases consists of the following (in thousands): Reclassifications, Depreciation/ Amortization Balance Additions/ Expense or Balance December 31, Dispositions and Amortization September 30, 2017 Impairment Losses of Leases 2018 Net investment in operating leases $ 1,652 $ (15) $ (197) $ 1,440 Assets held for sale or lease, net 272 (72) - 200 Initial direct costs, net of accumulated amortization of $0 at September 30, 2018 and $3 at December 31, 2017 - - - - Total $ 1,924 $ (87) $ (197) $ 1,640 |
Property on Operating Leases | Property on operating leases consists of the following (in thousands): Balance Balance December 31, Reclassifications September 30, 2017 Additions or Dispositions 2018 Transportation $ 3,963 $ - $ (72) $ 3,891 Construction 2,741 - - 2,741 Aviation 2,077 - - 2,077 Other 104 - - 104 8,885 - (72) 8,813 Less accumulated depreciation (7,233) (197) 57 (7,373) Total $ 1,652 $ (197) $ (15) $ 1,440 |
Schedule of Useful Lives of Assets | As of September 30, 2018 , the respective useful lives of each category of lease assets in the Company’s portfolio are as follows (in years): Equipment category Useful Life Aviation 15 - 20 Construction 7 - 10 Materials handling 7 - 10 Transportation 7 - 10 Computer 3 - 5 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement | The Managing Member and/or affiliates earned fees and billed for reimbursements, pursuant to the Operating Agreement during the three and nine months ended September 30, 2018 and 2017 as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Administrative costs reimbursed to Managing Member and/or affiliates $ 14 $ 39 $ 99 $ 130 Asset management fees to Managing Member 13 9 42 36 $ 27 $ 48 $ 141 $ 166 |
Members' Capital (Tables)
Members' Capital (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 2017 2018 2017 Distributions $ - $ - $ - $ 818 Weighted average number of Units outstanding 2,992,482 2,992,482 2,992,482 2,992,482 Weighted average distributions per Unit $ - $ - $ - $ 0.27 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Summary of Valuation Techniques and Significant Unobservable Inputs Used | The following tables summarize the valuation techniques and significant unobservable inputs used for the Company’s recurring and non-recurring fair value calculation categorized as Level 3 in the fair value hierarchy at September 30, 2018 and December 31, 2017: September 30, 2018 Valuation Valuation Unobservable Range of Name Frequency Technique Inputs Input Values Warrants Recurring Black-Scholes formulation Stock price $0.02 - $32.07 Exercise price $0.36 - $38.64 Time to maturity (in years) 0 - 5.09 Risk-free interest rate 2.12% - 2.94% Annualized volatility 47.73% - 80.08% |
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 825 of the FASB Accounting Standards Codification at September 30, 2018 and December 31, 2017 (in thousands): Fair Value Measurements at September 30, 2018 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 1,139 $ 1,139 $ - $ - $ 1,139 Investment in securities 33 33 - - 33 Warrants, fair value 159 . - 159 159 Fair Value Measurements at December 31, 2017 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 479 $ 479 $ - $ - $ 479 Warrants, fair value 149 - - 149 149 Financial liabilities: Non-recourse debt 103 - - 102 102 |
Warrant [Member] | |
Fair Value of Assets Measured on a Recurring Basis | The fair value of warrants that were accounted for on a recurring basis as of the three and nine months ended September 30, 2018 and 2017 and classified as Level 3 are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Fair value of warrants at beginning of period $ 156 $ 157 $ 149 $ 159 Unrealized gain (loss) on fair valuation of warrants 3 - 10 (2) Fair value of warrants at end of period $ 159 $ 157 $ 159 $ 157 |
Investment Securities [Member] | |
Fair Value of Assets Measured on a Recurring Basis | The fair value of investment securities that were accounted for on a recurring basis as of the three and nine month ended September 30, 2018 and classified as Level 1 are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2018 2018 Fair value of investment in securities at beginning of period $ 41 $ 21 Unrealized (loss) gain on fair valuation of investment in securities (8) 12 Fair value of investment in securities at end of period $ 33 $ 33 |
Organization and Limited Liab_2
Organization and Limited Liability Company Matters (Narrative) (Details) - USD ($) | 9 Months Ended | 140 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business activities, description | equipment financing and acquiring equipment to engage in equipment leasing and sales activities | |||
Business formation date | Jan. 25, 2007 | |||
Business formation State | California | |||
Business termination date | Dec. 31, 2030 | |||
Contributions received, net of rescissions and/or redemptions | $ 29,900,000 | $ 29,900,000 | ||
Other Members [Member] | ||||
Units issued | 2,992,482 | 2,992,482 | 2,992,482 | |
Units outstanding | 2,992,482 | 2,992,482 | 2,992,482 | 2,992,482 |
Managing Member [Member] | ||||
Contributions of capital by initial Members | $ 500 | $ 500 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Narrative) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)segment | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Summary of Significant Accounting Policies [Line Items] | ||||||||
Operating lease equipment, depreciation method | straight-line | |||||||
Warrants, fair value | $ 159,000 | $ 157,000 | $ 159,000 | $ 157,000 | $ 149,000 | $ 156,000 | $ 157,000 | $ 159,000 |
Number of operating segments | segment | 1 | |||||||
Number of reportable segments | segment | 1 | |||||||
Taxes on income and franchise fees | 8,000 | 13,000 | $ 12,000 | 32,000 | ||||
Investment in securities | 39,000 | 39,000 | $ 27,000 | |||||
Unrealized (loss) gain on fair value adjustment for investment in securities | (8,000) | 12,000 | ||||||
Unrealized gain (loss) on fair value adjustment for warrants | 3,000 | 0 | 10,000 | (2,000) | ||||
Gain (loss) on exercises of warrants | 0 | $ 0 | $ 0 | $ 0 | ||||
Long-Lived Assets [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Percentage of concentration risk from customers domiciled in North America | 100.00% | 100.00% | 100.00% | |||||
Operating Revenues [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Percentage of concentration risk from customers domiciled in North America | 100.00% | 100.00% | ||||||
Minimum [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
Required assets value of financial institutions for cash deposits | $ 10,000,000,000 | |||||||
Operating leases, initial terms | 36 months | |||||||
Accounts receivable, period for non-accrual status | 90 days | |||||||
Operating leases, period for non accrual status | 90 days | |||||||
Maximum [Member] | ||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||
U.S. Treasury instruments maturity period | 90 days | |||||||
Cash deposits, insured amount | $ 250,000 | $ 250,000 | ||||||
Operating leases, initial terms | 120 months | |||||||
Accounts receivable, period of review for impairment | 90 days | |||||||
Operating leases, period of review for impairment | 90 days |
Investments in Equipment and _3
Investments in Equipment and Leases, Net (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Investments in Equipment and Leases, Net [Abstract] | |||||
Depreciation of operating lease assets | $ 32 | $ 142 | $ 197 | $ 427 | |
Impairment losses on equipment | 229 | 229 | $ 281 | ||
Average estimated residual value for assets on operating leases | 16.00% | 16.00% | 19.00% | ||
Fair value adjustments on equipment | $ 229 | $ 229 | $ 281 | ||
Operating leases, future minimum payments receivable | $ 45 | $ 45 |
Investments in Equipment and _4
Investments in Equipment and Leases, Net (Investment in Leases) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Leases Disclosure [Line Items] | ||
Balance December 31, 2017 | $ 1,924 | |
Reclassifications, Additions/Dispositions and Impairment Losses | (87) | |
Depreciation/Amortization Expense or Amortization of Leases | (197) | |
Balance September 30, 2018 | 1,640 | |
Initial direct costs, accumulated amortization | 0 | $ 3 |
Operating Leases [Member] | ||
Leases Disclosure [Line Items] | ||
Balance December 31, 2017 | 1,652 | |
Reclassifications, Additions/Dispositions and Impairment Losses | (15) | |
Depreciation/Amortization Expense or Amortization of Leases | (197) | |
Balance September 30, 2018 | 1,440 | |
Assets Held-for-sale [Member] | ||
Leases Disclosure [Line Items] | ||
Balance December 31, 2017 | 272 | |
Reclassifications, Additions/Dispositions and Impairment Losses | (72) | |
Balance September 30, 2018 | 200 | |
Initial Direct Cost | ||
Leases Disclosure [Line Items] | ||
Balance December 31, 2017 | ||
Reclassifications, Additions/Dispositions and Impairment Losses | ||
Depreciation/Amortization Expense or Amortization of Leases | ||
Balance September 30, 2018 |
Investments in Equipment and _5
Investments in Equipment and Leases, Net (Property on Operating Leases) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | $ 8,813 | $ 8,885 |
Less accumulated depreciation | (7,373) | (7,233) |
Property on operating leases, net | 1,440 | 1,652 |
Additions, gross | ||
Additions, less accumulated depreciation | (197) | |
Additions, net | (197) | |
Reclassifications or dispositions, gross | (72) | |
Reclassifications or dispositions, less accumulated depreciation | 57 | |
Reclassifications or dispositions, net | (15) | |
Transportation, Rail [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 3,891 | 3,963 |
Additions, gross | ||
Reclassifications or dispositions, gross | (72) | |
Construction [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 2,741 | 2,741 |
Additions, gross | ||
Reclassifications or dispositions, gross | ||
Aviation [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 2,077 | 2,077 |
Additions, gross | ||
Reclassifications or dispositions, gross | ||
Other [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 104 | $ 104 |
Additions, gross | ||
Reclassifications or dispositions, gross |
Investments in Equipment and _6
Investments in Equipment and Leases, Net (Schedule of Useful Lives of Assets) (Details) | 9 Months Ended |
Sep. 30, 2018 | |
Minimum [Member] | Aviation [Member] | |
Property Subject To Or Available For Operating Lease [Line Items] | |
Useful lives of lease assets | 15 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, Rail [Member] | |
Property Subject To Or Available For Operating Lease [Line Items] | |
Useful lives of lease assets | 7 years |
Minimum [Member] | Computer [Member] | |
Property Subject To Or Available For Operating Lease [Line Items] | |
Useful lives of lease assets | 3 years |
Maximum [Member] | Aviation [Member] | |
Property Subject To Or Available For Operating Lease [Line Items] | |
Useful lives of lease assets | 20 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, Rail [Member] | |
Property Subject To Or Available For Operating Lease [Line Items] | |
Useful lives of lease assets | 10 years |
Maximum [Member] | Computer [Member] | |
Property Subject To Or Available For Operating Lease [Line Items] | |
Useful lives of lease assets | 5 years |
Related Party Transactions (Aff
Related Party Transactions (Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Related Party Transactions [Abstract] | ||||
Administrative costs reimbursed to Managing Member and/or affiliates | $ 14 | $ 39 | $ 99 | $ 130 |
Asset management fees to Managing Member | 13 | 9 | 42 | 36 |
Related party transaction, total | $ 27 | $ 48 | $ 141 | $ 166 |
Non-Recourse Debt (Narrative) (
Non-Recourse Debt (Narrative) (Details) - Non-Recourse Debt [Member] | 9 Months Ended |
Sep. 30, 2018 | |
Debt Instrument [Line Items] | |
Note maturity date, description | At September 30, 2018, the non-recourse debt was paid off |
Maximum [Member] | |
Debt Instrument [Line Items] | |
Fixed Interest rate on note | 2.39% |
Minimum [Member] | |
Debt Instrument [Line Items] | |
Fixed Interest rate on note | 1.97% |
Commitments (Narrative) (Detail
Commitments (Narrative) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Commitments [Abstract] | |
Commitments to purchase lease assets | $ 0 |
Members' Capital (Narrative) (D
Members' Capital (Narrative) (Details) - shares | 9 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Members [Member] | |||
Other Members Capital Account [Line Items] | |||
Members capital account, Units issued | 2,992,482 | 2,992,482 | |
Members capital account, Units outstanding | 2,992,482 | 2,992,482 | 2,992,482 |
Percentage of fund distributions | 92.50% | ||
Other Members [Member] | Maximum [Member] | |||
Other Members Capital Account [Line Items] | |||
Members capital account, Units authorized | 20,000,000 | 20,000,000 | |
Managing Member [Member] | |||
Other Members Capital Account [Line Items] | |||
Percentage of fund distributions | 7.50% |
Members' Capital (Distributions
Members' Capital (Distributions to Other Members) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Members' Capital [Abstract] | |||||
Distributions | $ 818 | $ 818 | |||
Weighted average number of Units outstanding | 2,992,482 | 2,992,482 | 2,992,482 | 2,992,482 | |
Weighted average distributions per Unit | $ 0.27 | $ 0.27 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Sep. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2016 | |
Fair Value Measurements [Abstract] | |||||||
Warrants, fair value | $ 157 | $ 157 | $ 149 | $ 159 | $ 156 | $ 157 | $ 159 |
Fair value adjustments on equipment | $ 229 | $ 229 | $ 281 |
Fair Value Measurements (Warran
Fair Value Measurements (Warrants Measured on a Recurring Basis and Classified as Level 3) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Fair Value Measurements [Abstract] | ||||
Fair value of warrants at beginning of period | $ 156 | $ 157 | $ 149 | $ 159 |
Unrealized (loss) gain on fair valuation of warrants | 3 | 0 | 10 | (2) |
Fair value of warrants at end of period | $ 159 | $ 157 | $ 159 | $ 157 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value of Securities Measured on a Recurring Basis) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Fair Value Measurements [Abstract] | ||
Fair value of investment in securities at beginning of period | $ 41 | $ 21 |
Unrealized (loss) gain on fair value adjustment for investment in securities | (8) | 12 |
Fair value of investment in securities at end of period | $ 33 | $ 33 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary of Valuation Techniques and Significant Unobservable Inputs Used) (Details) - Level 3 Estimated Fair Value [Member] - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Minimum [Member] | Recurring [Member] | Warrant [Member] | Black Scholes Model [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Stock price | $ 0.02 | $ 0.02 |
Exercise price | $ 0.36 | $ 0.36 |
Time to maturity (in years) | 0 years | 9 months |
Risk-free interest rate | 2.12% | 1.65% |
Annualized volatility | 47.73% | 48.32% |
Minimum [Member] | Fair Value, Measurements, Nonrecurring [Member] | Lease Equipment [Member] | Market Approach [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair value inputs, third party agents' pricing quotes per equipment | $ 72,525 | |
Maximum [Member] | Recurring [Member] | Warrant [Member] | Black Scholes Model [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Stock price | $ 32.07 | $ 14.75 |
Exercise price | $ 38.64 | $ 25.76 |
Time to maturity (in years) | 5 years 1 month 2 days | 5 years 10 months 2 days |
Risk-free interest rate | 2.94% | 2.25% |
Annualized volatility | 80.08% | 83.30% |
Maximum [Member] | Fair Value, Measurements, Nonrecurring [Member] | Lease Equipment [Member] | Market Approach [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair value inputs, third party agents' pricing quotes per equipment | $ 200,000 |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Financial assets: | ||||||
Warrants, fair value | $ 159 | $ 156 | $ 149 | $ 157 | $ 157 | $ 159 |
Carrying Amount [Member] | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 1,139 | 479 | ||||
Investment in securities | 33 | |||||
Warrants, fair value | 159 | 149 | ||||
Financial liabilities: | ||||||
Non-recourse debt | 103 | |||||
Estimated Fair Value [Member] | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 1,139 | 479 | ||||
Investment in securities | 33 | |||||
Warrants, fair value | 159 | 149 | ||||
Financial liabilities: | ||||||
Non-recourse debt | 102 | |||||
Estimated Fair Value [Member] | Level 1 Estimated Fair Value [Member] | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 1,139 | 479 | ||||
Investment in securities | 33 | |||||
Warrants, fair value | ||||||
Estimated Fair Value [Member] | Level 2 Estimated Fair Value [Member] | ||||||
Financial assets: | ||||||
Cash and cash equivalents | ||||||
Investment in securities | ||||||
Warrants, fair value | ||||||
Estimated Fair Value [Member] | Level 3 Estimated Fair Value [Member] | ||||||
Financial assets: | ||||||
Warrants, fair value | $ 159 | 149 | ||||
Financial liabilities: | ||||||
Non-recourse debt | $ 102 |