Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 28, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | ATEL 12, LLC | ||
Entity Central Index Key | 0001394922 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Smaller Reporting Company | true | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Entity Units Outstanding | 2,992,482 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 1,524 | $ 479 |
Accounts receivable, net of allowance for doubtful accounts of $0 at December 31, 2018, and $37 at December 31, 2017 | 10 | 42 |
Due from Managing Member | 46 | 10 |
Investment in securities | 33 | 27 |
Warrants, fair value | 153 | 149 |
Investments in equipment and leases, net of accumulated depreciation of $6,692 at December 31, 2018 and $8,417 at December 31, 2017 | 1,542 | 1,924 |
Prepaid expenses and other assets | 27 | 25 |
Total assets | 3,335 | 2,656 |
Accounts payable and accrued liabilities: | ||
Affiliates | 36 | |
Other | 206 | 257 |
Non-recourse debt | 103 | |
Unearned operating lease income | 17 | 37 |
Total liabilities | 223 | 433 |
Commitments and contingencies | ||
Members' capital: | ||
Other Members | 3,112 | 2,223 |
Total Members' capital | 3,112 | 2,223 |
Total liabilities and Members' capital | $ 3,335 | $ 2,656 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Balance Sheets [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 0 | $ 37 |
Investments in equipment and leases, accumulated depreciation | $ 6,692 | $ 8,417 |
Statements of Operations
Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Leasing activities: | ||
Operating leases | $ 1,263 | $ 1,328 |
Gain on sales of lease assets | 175 | 22 |
Gain on sales or dispositions of investment in securities | 11 | 75 |
Unrealized gain on fair value adjustment for investment in securities | 5 | |
Unrealized gain (loss) on fair value adjustment for warrants | 4 | (10) |
Other | 27 | 13 |
Total revenues | 1,485 | 1,428 |
Expenses: | ||
Depreciation of operating lease assets | 229 | 570 |
Asset management fees to Managing Member | 50 | 37 |
Cost reimbursements to Managing Member and/or affiliates | 122 | 169 |
(Reversal of) provision for credit losses | (37) | 33 |
Impairment losses on equipment | 281 | |
Provision for impairment losses on investment in securities | 219 | |
Amortization of initial direct costs | 1 | |
Interest expense | 7 | |
Professional fees | 101 | 145 |
Outside services | 88 | 79 |
Taxes on income and franchise fees | 18 | 38 |
Printing and photocopying | 11 | 16 |
Other | 14 | 25 |
Total expenses | 596 | 1,620 |
Net income (loss) | 889 | (192) |
Net income (loss): | ||
Managing Member | 66 | |
Other Members | 889 | (258) |
Net income (loss) | $ 889 | $ (192) |
Net income (loss) per Limited Liability Company Unit (Other Members) | $ 0.30 | $ (0.09) |
Weighted average number of Units outstanding | 2,992,482 | 2,992,482 |
Statements of Changes in Member
Statements of Changes in Members' Capital - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Beginning Balance | $ 2,223 | $ 3,299 |
Distributions to Others Members | (818) | |
Distributions to Managing Member | (66) | |
Net income (loss) | 889 | (192) |
Ending Balance | $ 3,112 | $ 2,223 |
Other Members [Member] | ||
Beginning Balance (in Units) | 2,992,482 | 2,992,482 |
Beginning Balance | $ 2,223 | $ 3,299 |
Distributions to Others Members | (818) | |
Net income (loss) | $ 889 | $ (258) |
Ending Balance (in Units) | 2,992,482 | 2,992,482 |
Ending Balance | $ 3,112 | $ 2,223 |
Managing Member [Member] | ||
Distributions to Managing Member | (66) | |
Net income (loss) | $ 66 |
Statements of Changes in Memb_2
Statements of Changes in Members' Capital (Parenthetical) | 12 Months Ended |
Dec. 31, 2017$ / shares | |
Statements of Changes in Members' Capital [Abstract] | |
Distributions to Other Members, per Unit | $ 0.27 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities: | ||
Net income (loss) | $ 889 | $ (192) |
Adjustment to reconcile net income (loss) to cash provided by operating activities: | ||
Gain on sales of lease assets | (175) | (22) |
Depreciation of operating lease assets | 229 | 570 |
Amortization of initial direct costs | 1 | |
(Reversal of) provision for credit losses | (37) | 33 |
Provision for impairment losses on investment in securities | 219 | |
Impairment losses on equipment | 281 | |
Gain on sales or dispositions of investment in securities | (11) | (75) |
Unrealized gain on fair value adjustment for investment in securities | (5) | |
Unrealized (gain) loss on fair value adjustment for warrants | (4) | 10 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 69 | 3 |
Due from Managing Member and affiliates | (36) | |
Prepaid expenses and other assets | (2) | 1 |
Accounts payable, Managing Member | (36) | (25) |
Accounts payable, other | (51) | (7) |
Unearned operating lease income | (20) | 15 |
Net cash provided by operating activities | 810 | 812 |
Investing activities: | ||
Proceeds from sales of lease assets | 328 | 130 |
Proceeds from sales or dispositions of investment in securities | 10 | 99 |
Principal payments received on direct financing leases | 1 | |
Net cash provided by investing activities | 338 | 230 |
Financing activities: | ||
Repayments under non-recourse debt | (103) | (463) |
Net cash used in financing activities | (103) | (1,596) |
Net increase (decrease) in cash and cash equivalents | 1,045 | (554) |
Cash and cash equivalents at beginning of year | 479 | 1,033 |
Cash and cash equivalents at end of year | 1,524 | 479 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the year for interest | 7 | |
Cash paid during the year for taxes | 19 | 29 |
Other Members [Member] | ||
Operating activities: | ||
Net income (loss) | $ 889 | (258) |
Financing activities: | ||
Distributions to Members | (1,048) | |
Managing Member [Member] | ||
Operating activities: | ||
Net income (loss) | 66 | |
Financing activities: | ||
Distributions to Members | $ (85) |
Organization and Limited Liabil
Organization and Limited Liability Company Matters | 12 Months Ended |
Dec. 31, 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 (“Date of Inception”) 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, (“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. The Company conducted a public offering of 20,000,000 Limited Liability Company Units (“Units”), at a price of $10 per Unit. As of January 24, 2008, subscriptions for the minimum number of Units (120,000, representing $1.2 million), excluding subscriptions from Pennsylvania investors, had been received and the Fund requested subscription proceeds to be released from escrow. On that date, the Company commenced initial operations and continued in its development stage activities until transitioning to an operating enterprise during the second quarter of 2008. Pennsylvania subscriptions are subject to a separate escrow and are released to the Fund only when aggregate subscriptions for all investors equal to at least $7.5 million. Total contributions to the Fund exceeded $7.5 million on July 15, 2008, at which time a request was processed to release the Pennsylvania escrowed amounts. The offering was terminated on September 25, 2009. As of December 31, 2018, cumulative gross contributions, less rescissions and repurchases (net of distributions paid and allocated syndication costs, as applicable), totaling $29.9 million (inclusive of the $500 initial Member’s capital investment) have been received. As of the same date, 2,992,482 Units were issued and outstanding. The Company’s principal objectives have been to invest in a diversified portfolio of investments that will (i) preserve, protect and return the Company’s invested capital; (ii) generate regular cash distributions to Unitholders, with any balance remaining after required minimum distributions to be used to purchase additional investments during the Reinvestment Period (ending six calendar years after the completion of the Company’s public offering of Units) and (iii) provide additional cash distributions following the Reinvestment Period and until all investment portfolio assets has been sold or otherwise disposed. The Company is governed by the ATEL 12, LLC amended and restated Limited Liability Company Operating Agreement dated April 3, 2007 (the “Operating Agreement”). Pursuant to the terms of the Operating Agreement, the Managing Member and/or its affiliates receives compensation for services rendered and reimbursements for costs incurred on behalf of the Company (See Note 6, Related party transactions). The Company is required to maintain reasonable cash reserves for working capital, the repurchase of Units and contingencies. The repurchase of Units is solely at the discretion of the Managing Member. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of significant accounting policies: Basis of presentation: The accompanying balance sheets as of December 31, 2018 and 2017, and the related statements of operations, changes in members’ capital, and cash flows for the years then ended, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission. Certain prior year amounts may have been reclassified to conform to the current year presentation. These reclassifications had no significant effect on the reported financial position or results from operations. Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data. In preparing the accompanying financial statements, the Company has reviewed, as determined necessary by the Managing Member, events that have occurred after December 31, 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, and 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 for determination of the allowance for doubtful accounts and reserve for credit losses on notes receivable. Accounts receivable: Accounts receivable represent the amounts billed under operating and direct financing lease contracts, and notes receivable which are currently due to the Company. Allowances for doubtful accounts are typically established based on historical charge off and collection experience and the collectability of specifically identified lessees and borrowers, and invoiced amounts. Accounts receivable deemed uncollectible are generally charged off against the allowance on a specific identification basis. Recoveries of amounts that were previously written-off are recorded as other income in the period received. Credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk include cash and cash equivalents, operating and direct financing lease receivables, notes receivable and accounts receivable. The Company places the majority of its cash deposits in noninterest-bearing accounts with financial institutions that have no less than $10 billion in assets. Such deposits are insured up to $250 thousand. The remainder of the Funds’ cash is temporarily invested in U.S. Treasury denominated instruments. The concentration of such deposits and temporary cash investments is not deemed to create a significant risk to the Company. Accounts and notes receivable represent amounts due from lessees or borrowers in various industries, related to equipment on operating and direct financing leases or notes receivable. Equipment on operating leases and related revenue recognition: Equipment subject to operating leases is stated at cost. Depreciation is 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 the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“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 were 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. The Company does not use the equipment held in its portfolio, but holds it solely for lease and ultimate sale. In the course of marketing equipment that has come off-lease, management may determine at some point that re-leasing the assets may provide a superior return for investors and would then execute another lease. Upon entering into a new lease contract, management will estimate the residual value once again and resume depreciation. If, and when, the Company, at any time, determines that depreciation in value may have occurred with respect to an asset held-for-sale, the Company would review the value to determine whether a material reduction in value had occurred and recognize any appropriate impairment. All lease assets, including off-lease assets, are subject to the Company’s quarterly impairment analysis, as described below. Maintenance costs associated with the Fund’s portfolio of leased assets are expensed as incurred. Major additions and betterments are capitalized. Operating lease revenue is recognized on a straight-line basis over the term of the underlying leases. The initial lease terms will vary as to the type of equipment subject to the leases, the needs of the lessees and the terms to be negotiated, but initial leases are generally on terms from 36 to 120 months. The difference between rent received and rental revenue recognized is recorded as unearned operating lease income on the balance sheet. Operating leases are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management considers the equipment underlying the lease contracts for impairment and periodically reviews the credit worthiness of all operating lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related operating leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, revenues are recognized on a cash basis. Initial direct costs: The Company capitalizes initial direct costs (“IDC”) associated with the origination and funding of lease assets and investments in notes receivable. IDC includes both internal costs (e.g., the costs of employees’ activities in connection with successful lease and loan originations) and external broker fees incurred with such originations. The costs are amortized on a lease by lease (or note by note) basis based on actual lease term using a straight-line method for operating leases and the effective interest rate method for direct financing leases and notes receivable. Upon disposal of the underlying lease assets and notes receivable, both the initial direct costs and the associated accumulated amortization are relieved. Costs related to leases or notes receivable that are not consummated are not eligible for capitalization as initial direct costs and are expensed as acquisition expense. Acquisition expense: Acquisition expense represents costs which include, but are not limited to, legal fees and expenses, travel and communication expenses, cost of appraisals, accounting fees and expenses and miscellaneous expenses related to the selection and acquisition of equipment which are reimbursable to the Managing Member under the terms of the Operating Agreement. As the costs are not eligible for capitalization as initial direct costs, such amounts are expensed as incurred. Asset valuation: Recorded values of the Company’s leased asset portfolio are reviewed each quarter to confirm the reasonableness of established residual values and to determine whether there is indication that an asset impairment might have taken place. The Company uses a variety of sources and considers many factors in evaluating whether the respective book values of its assets are appropriate. In addition, the Company may direct a residual value review at any time if it becomes aware of issues regarding the ability of a lessee to continue to make payments on its lease contract. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than the net book value. The estimated undiscounted future cash flows are the sum of the residual value of the asset at the end of the asset’s lease contract and undiscounted future rents from the existing lease contract. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date. Upward adjustments for impairments recognized in prior periods are not made in any circumstances. Segment reporting: The Company is organized into one operating segment for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in one reportable operating segment in the United States. The Company’s principal decision makers are the Managing Member’s Chief Executive Officer and its Chief Financial Officer and Chief Operating Officer. The Company believes that its equipment leasing business operates as one reportable segment because: a) the Company measures profit and loss at the equipment portfolio level as a whole; b) the principal decision makers do not review information based on any operating segment other than the equipment leasing transaction portfolio; c) the Company does not maintain discrete financial information on any specific segment other than its equipment financing operations; d) the Company has not chosen to organize its business around different products and services other than equipment lease financing; and e) the Company has not chosen to organize its business around geographic areas. The primary geographic region in which the Company seeks leasing opportunities is North America. As of and for the years ended December 31, 2018 and 2017, all of the Company’s current operating revenues and long-lived assets relate to customers domiciled in the United States. Investment in securities: From time to time, the Company may purchase securities of its borrowers or receive warrants to purchase securities in connection with its lending arrangements. Purchased securities The Company’s investment securities registered for public sale are carried 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. The Company had $33 thousand and $27 thousand of purchased securities at December 31, 2018 and 2017, respectively. Based upon the Company’s review of its portfolio, the Company recorded fair value adjustments on investment in securities totaling $5 thousand and $0 during 2018 and 2017, respectively. The Company recorded an impairment loss on investment in securities of $0 and $219 thousand during 2018 and 2017, respectively. The Company recognized gains of $11 thousand and $75 thousand on sales of investment in securities during the years ended December 31, 2018 and 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. The Company recorded unrealized gain of $4 thousand and unrealized loss of $10 thousand on fair value adjustment of its warrants during 2018 and 2017, respectively. The unrealized gain recorded during 2018 increased the estimated fair value of the Company’s portfolio of warrants to $153 thousand at December 31, 2018 from $149 thousand at December 31, 2017. There were no exercise of warrants, net or otherwise, in 2018. Unearned operating lease income: The Company records prepayments on operating leases as a liability under the caption of unearned operating lease income. The liability is recorded when prepayments are received and recognized as operating lease revenue over the period to which the prepayments relate using a straight-line method. Income Taxes: The Company is treated as a partnership for federal income tax purposes. Pursuant to the provisions of Section 701 of the Internal Revenue Code, a partnership is not subject to federal income taxes. Accordingly, the Company has provided current franchise income taxes for only those states which levy income taxes on partnerships. For the years ended December 31, 2018 and 2017, the related provision for state income taxes was approximately $18 thousand and $38 thousand, respectively. The Company does not have any entity level uncertain tax positions. The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions and is generally subject to examination by U.S. federal (or state and local) income tax authorities for three years from the filing of a tax return. The tax bases of the Company’s net assets and liabilities vary from the amounts presented in these financial statements at December 31, 2018 and 2017 as follows (in thousands): 2018 2017 Financial statement basis of net assets $ 3,112 $ 2,223 Tax basis of net assets (unaudited) 6,760 5,672 Difference (unaudited) $ (3,648) $ (3,449) The primary differences between the tax bases of net assets and the amounts recorded in the financial statements are the result of differences in accounting for syndication costs and differences between the depreciation methods used in the financial statements and the Company’s tax returns. The following reconciles the net income (loss) reported in these financial statements to the income reported on the Company’s federal tax return (unaudited) for the years ended December 31, 2018 and 2017 (in thousands): 2018 2017 Net income (loss) per financial statements $ 889 $ (192) Tax adjustments (unaudited): Adjustment to depreciation expense 221 466 Provision for losses and doubtful accounts (37) 33 Adjustments to revenues/other expenses (23) 26 Adjustments to gain on sales of assets 38 105 Other — 300 Income per federal tax return (unaudited) $ 1,088 $ 738 Per Unit data: Net income and distributions per Unit are based upon the weighted average number of Other Members Units outstanding during the year. Recent accounting pronouncements: In November 2018, the FASB issued Accounting Standards Update 2018-19, Codification Improvements to Topic 326, Financial Instruments — Credit Losses (“ASU 2018-19”). The new standard clarifies certain aspects of the new current expected credit losses (CECL) impairment model in ASU 2016-13. The amendment clarifies that receivables arising from operating leases are within the scope of ASC 842, rather than ASC 326. The effective date and transition requirements in this Update are the same as the effective dates and transition requirements in Update 2016-13, as amended by this Update, which is for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Management is currently evaluating the impact of the standard on the financial statements and related disclosure requirements. 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 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. As part of the adoption, the Company has elected to apply the package of transitional practical expedients under which the Company will not reassess prior conclusions about lease identification, lease classification, and initial direct costs of existing leases as of the date of adoption. Under Topic 842, initial direct costs include only those incremental costs of a lease that would not have been incurred if the lease had not been executed. Therefore, only certain costs that the Company capitalized as initial direct costs under ASC Topic 840: Leases may be expensed as incurred under Topic 842. The Company expects an immaterial cumulative effect adjustment upon adoption. The Company plans to elect the lessor practical expedient to combine the lease and non-lease components. The Company expects that the lease components are the predominant component in the majority of its leasing arrangements and will account for the combined component as an operating lease under Topic 842. The Company currently does not believe the adoption will significantly affect the timing of the recognition of its combined lease and non-lease components. In December 2018, the FASB issued Accounting Standards Update 2018-20, Narrow-Scope Improvements for Lessors (“ASU 2018-20”). The new standard includes amendments related to sales taxes and other similar taxes collected from lessees, lessor costs paid by a lessee and recognition of variable payments for contracts with lease and non-lease components. The effective date in this Update is the same as that of ASU 2016-02, which is for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The adoption of ASU 2018-20 did not have a material impact on the Company’s financial statements and disclosures. 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 was 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 revenues calculated under the new guidelines were substantially the same as had previously been determined. |
Concentration of Credit Risk an
Concentration of Credit Risk and Major Customers | 12 Months Ended |
Dec. 31, 2018 | |
Concentration of Credit Risk and Major Customers [Abstract] | |
Concentration of Credit Risk and Major Customers | 3. Concentration of credit risk and major customers: The Company leases equipment to lessees and provides debt financing to borrowers in diversified industries. Leases and notes receivable are subject to the Managing Member’s credit committee review. The leases and notes receivable provide for the return of the equipment to the Company upon default. As of December 31, 2018 and 2017, there were concentrations (greater than or equal to 10% as a percentage of total equipment cost) of equipment leased to lessees and/or financed for borrowers in certain industries as follows: Industry 2018 2017 Air transportation 25 % 23 % Food products 25 % 18 % Retail 22 % 22 % Gas/Coal * % 17 % Business Services % * During 2018 and 2017, certain lessees and/or financial borrowers generated significant portions (defined as greater than or equal to 10%) of the Company’s total leasing and lending revenues, excluding gains or losses on disposition of assets, as follows: Percentage of Total Leasing Aircraft Service International, Inc. Revenues Lessee Type of Equipment 2018 2017 Aircraft Service International, Inc. Aviation 25 % 25 % Wal-Mart Transportation, LLC Transportation 21 % 21 % Tyson Sales & Distribution, Inc. Trucks and Trailers 15 % 15 % These percentages are not expected to be comparable in future periods due to anticipated changes in the mix of investments and/or lessees as a result of normal business activities. |
Investments in Equipment and Le
Investments in Equipment and Leases, Net | 12 Months Ended |
Dec. 31, 2018 | |
Investments in Equipment and Leases, Net [Abstract] | |
Investments in Equipment and Leases, Net | 4. Investments in equipment and leases, net: The Company’s investment in equipment and leases consists of the following (in thousands): Depreciation/ Reclassifications, Amortization Balance Additions/ Expense or Balance December 31, Dispositions and Amortization December 31, 2017 Impairment Losses of Leases 2018 Net investment in operating leases $ 1,652 $ (81) $ (229) $ 1,342 Assets held for sale or lease, net 272 (72) — 200 Total $ 1,924 $ (153) $ (229) $ 1,542 Impairment of investments in leases: There was no fair value adjustment for impairment losses on investment in equipment and leases during 2018. The Company recorded $281 thousand of fair value adjustments for impairment losses on its investments in equipment and leases during 2017. The Company utilizes a straight line depreciation method over the term of the equipment lease for equipment on operating leases currently in its portfolio . Depreciation expense on the Company’s equipment totaled $229 thousand and $570 thousand for the years ended December 31, 2018 and 2017, respectively. All of the Company’s lease asset purchases and capital improvements were made during the years from 2008 through 2013. Operating leases: Property on operating leases consists of the following (in thousands): Balance Balance December 31, Reclassifications December 31, 2017 Additions or Dispositions 2018 Transportation $ 3,963 $ — $ (121) $ 3,842 Construction 2,741 — (1,542) 1,199 Aviation 2,077 — — 2,077 Other 104 — — 104 8,885 — (1,663) 7,222 Less accumulated depreciation (7,233) (229) 1,582 (5,880) Total $ 1,652 $ (229) $ (81) $ 1,342 The average estimated residual value for assets on operating leases was 16% and 19% of the assets’ original cost at December 31, 2018 and 2017, respectively. There were no operating leases in non-accrual status at both December 31, 2018 and 2017. The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of December 31, 2018 and 2017, the respective useful lives of each category of lease assets in the Company’s portfolio are as follows (in years): Equipment category Useful Life Aviation 15 - 20 Construction 7 - 10 Materials handling 7 - 10 Transportation 7 - 10 Computer 3 - 5 |
Allowance for Credit Losses
Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2018 | |
Allowance for Credit Losses [Abstract] | |
Allowance for Credit Losses | 5. Allowance for credit losses: There was no allowance for credit losses at December 31, 2018. The Company’s allowance for credit losses totaled $37 thousand at December 31, 2017. All of such allowance were related to delinquent operating lease receivables. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 6. Related party transactions: The terms of the Operating Agreement provide that the Managing Member and/or affiliates are entitled to receive certain fees for equipment management and resale and for management of the Company. The Operating Agreement allows for the reimbursement of costs incurred by the Managing Member and/or affiliates for providing administrative services to the Company. Administrative services provided include Company accounting, investor relations, legal counsel and lease and equipment documentation. The Managing Member is not reimbursed for services whereby it is entitled to receive a separate fee as compensation for such services, such as management of investments. Each of AFS and ATEL Leasing Corporation (“ALC”) is a wholly-owned subsidiary of ATEL Capital Group, Inc. and performs services for the Company on behalf of the Managing Member. Acquisition services, equipment management, lease administration and asset disposition services are performed by ALC; investor relations, communications and general administrative services are performed by AFS. Cost reimbursements to the Managing Member or its affiliates are based on its costs incurred in performing administrative services for the Company. These costs are allocated to each managed entity based on certain criteria such as total assets, number of investors or contributed capital based upon the type of cost incurred. The Managing Member believes that the costs reimbursed are the lower of (i) actual costs incurred on behalf of the Company or (ii) the amount the Company would be required to pay independent parties for comparable administrative services in the same geographic location. The Fund’s Operating Agreement places an annual and cumulative limit for cost reimbursements to AFS and/or its affiliates. Any reimbursable costs incurred by AFS and/or affiliates during the year exceeding the annual and/or cumulative limits cannot be reimbursed in the current year, though such costs may be reimbursable in future years to the extent such amounts may be payable if within the annual and cumulative limits in such future years. The Fund is a finite life and self-liquidating entity, and AFS and its affiliates have no recourse against the Fund for the amount of any unpaid excess reimbursable administrative expenses. The Fund will continue to require administrative services from AFS and its affiliates through the end of its term, and will therefore continue to incur reimbursable administrative expenses in each year. The Fund has determined that payment of any amounts in excess of the annual and cumulative limits is not probable, and the date any portion of such amount may be paid, if ever, is uncertain. When the Fund completes its liquidation stage and terminates, any unpaid amount will expire unpaid, with no claim by AFS or its affiliates against any liquidation proceeds or any party for the unpaid balance. As of December 31, 2018 and 2017, the Company has not exceeded the annual and/or cumulative limitations discussed above. The Managing Member and/or affiliates earned fees and billed for reimbursements, pursuant to the Operating Agreement, during the years ended December 31, 2018 and 2017 as follows (in thousands): 2018 2017 Administrative costs reimbursed to Managing Member and/or affiliates $ 122 $ 169 Asset management fees to Managing Member 50 37 $ 172 $ 206 |
Non-Recourse Debt
Non-Recourse Debt | 12 Months Ended |
Dec. 31, 2018 | |
Non-Recourse Debt [Abstract] | |
Non-Recourse Debt | 7. Non-recourse debt: At December 31, 2018, the non-recourse debt was paid off. At December 31, 2017, non-recourse debt consisted of notes payable to financial institutions. The notes were due in monthly installments. Interest on the notes was at fixed rates ranging from 1.97% to 2.39% per annum. The notes were secured by assignments of lease payments and pledges of assets. At December 31, 2017, gross operating lease rentals totaled approximately $109 thousand over the remaining lease terms; and the carrying value of the pledged assets was $657 thousand. The notes matured at various dates in 2018. The non-recourse debt did not contain any material financial covenants. The debt was secured by a specific lien granted by the Company to the non-recourse lender on (and only on) the discounted lease transactions. The lender had recourse only to the following collateral: the leased equipment; the related lease chattel paper; the lease receivables; and proceeds of the foregoing items. The non-recourse obligation was payable solely out of the respective specific security and the Company did not guarantee (nor was the Company otherwise contractually responsible for) the payment of the non-recourse debt as a general obligation or liability of the Company. Although the Company did not have any direct or general liability in connection with the non-recourse debt apart from the security granted, the Company was directly and generally liable and responsible for certain representations, warranties, and covenants made to the lender, such as warranties as to genuineness of the transaction parties’ signatures, as to the genuineness of the respective lease chattel paper or the transaction as a whole, or as to the Company’s good title to or perfected interest in the secured collateral, as well as similar representations, warranties and covenants typically provided by non-recourse borrowers and customary in the equipment finance industry, and were viewed by such industry as being consistent with non-recourse discount financing obligations. Accordingly, as there were no financial covenants or ratios imposed on the Company in connection with the non-recourse debt, the Company had determined that there were no material covenants with respect to the non-recourse debt that warranted footnote disclosure. At December 31, 2017, the remaining future minimum payments of non-recourse debt totaled $104 thousand, all of which were due and payable during 2018. The payments were comprised of principal payments totaling $103 thousand and interest payments totaling $1 thousand. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2018 | |
Commitments [Abstract] | |
Commitments | 8 . Commitments: At December 31, 2018, there were no commitments to purchase lease assets and fund investments in notes receivable. |
Guarantees
Guarantees | 12 Months Ended |
Dec. 31, 2018 | |
Guarantees [Abstract] | |
Guarantees | 9. Guarantees: The Company enters into contracts that contain a variety of indemnifications. The Company’s maximum exposure under these arrangements is unknown. However, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote. The Managing Member knows of no facts or circumstances that would make the Company’s contractual commitments outside standard mutual covenants applicable to commercial transactions between businesses. Accordingly, the Company believes that these indemnification obligations are made in the ordinary course of business as part of standard commercial and industry practice, and that any potential liability under the Company’s similar commitments is remote. Should any such indemnification obligation become payable, the Company would separately record and/or disclose such liability in accordance with GAAP. |
Members' Capital
Members' Capital | 12 Months Ended |
Dec. 31, 2018 | |
Members' Capital [Abstract] | |
Members' Capital | 10. Members’ capital: A total of 2,992,482 Units were issued and outstanding at December 31, 2018 and 2017, including the 50 Units issued to the initial Member (Managing Member). The Fund was authorized to issue up to 20,000,000 Units in addition to the Units issued to the initial Member. The Company has the right, exercisable at the Managing Member’s discretion, but not the obligation, to repurchase Units of a Unitholder who ceases to be a U.S. Citizen, for a price equal to 100% of the holder’s capital account. The Company is otherwise permitted, but not required, to repurchase Units upon a holder’s request. The repurchase of Fund units is made in accordance with Section 13 of the Amended and Restated Limited Liability Company Operating Agreement. The repurchase would be at the discretion of the Managing Member on terms it determines to be appropriate under given circumstances, in the event that the Managing Member deems such repurchase to be in the best interest of the Company; provided, the Company is never required to repurchase any Units. Upon the repurchase of any Units by the Fund, the tendered Units are cancelled. Units repurchased in prior periods were repurchased at amounts representing the original investment less cumulative distributions made to the Unitholder with respect to the Units. All Units repurchased during a quarter are deemed to be repurchased effective the last day of the preceding quarter, and are not deemed to be outstanding during, or entitled to allocations of net income, net loss or distributions for the quarter in which such repurchase occurs. No units were repurchased during 2018 or 2017. The Fund’s net income or net losses are to be allocated 100% to the Members. From the commencement of the Fund until the initial closing date, net income and net loss were allocated 99% to the Managing Member and 1% to the initial members. Commencing with the initial closing date, net income and net loss are to be allocated 92.5% to the Other Members and 7.5% to the Managing Member. Fund distributions are to be allocated 7.5% to the Managing Member and 92.5% to the Other Members. The Company commenced periodic distributions in December 2008. Distributions to the Other Members for the years ended December 31, 2018 and 2017 were as follows (in thousands except Units and per Unit data): 2018 2017 Distributions $ — $ 818 Weighted average number of Units outstanding 2,992,482 2,992,482 Weighted average distributions per Unit $ — $ 0.27 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 11. 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 December 31, 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. 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. During 2017, the Company had non-recurring adjustments to reduce the cost basis of certain assets deemed impaired. 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. 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, and a risk free interest rate for the term(s) of the warrant exercise(s). As of December 31, 2018 and 2017, the calculated fair value of the Fund’s warrant portfolio approximated $153 thousand and $149 thousand, respectively. Such valuations are classified within Level 3 of the valuation hierarchy. The following table reconciles the beginning and ending balances of the Company’s Level 3 recurring assets (in thousands): 2018 2017 Fair value of warrants at beginning of year $ 149 $ 159 Unrealized gain (loss) on fair valuation of warrants 4 (10) Fair value of warrants at end of year $ 153 $ 149 Investment 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 December 31, 2018 and classified as Level 1 are as follows (in thousands): 2018 Fair value of investment in securities at beginning of year $ 22 Unrealized gain on fair valuation of investment in securities 5 Fair value of investment in securities at end of year $ 27 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 table below presents the fair value measurement of assets and liabilities measured at fair value on a non-recurring basis and the level within the hierarchy in which the fair value measurements fall at December 31, 2017 (in thousands): Level 1 Level 2 Level 3 December 31, Estimated Estimated Estimated 2018 Fair Value Fair Value Fair Value Assets measured at fair value on a non-recurring basis Impaired off-lease equipment $ 273 $ — $ — $ 273 The following tables summarize the valuation techniques and significant unobservable inputs used for the Company’s recurring and non-recurring fair value calculation/adjustments categorized as Level 3 in the fair value hierarchy at December 31, 2018 and 2017: December 31, 2018 Valuation Valuation Unobservable Range of Name Frequency Technique Inputs Input Values Warrants Recurring Black-Scholes formulation Stock price $0.05 - $9.98 Exercise price $0.36 - $38.64 Time to maturity (in years) 1.99 - 4.84 Risk-free interest rate 2.47% - 2.51% Annualized volatility 47.58% - 70.27% 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% - 83.30% Impaired off-lease equipment Non-recurring Market Approach Third Party Agents’ pricing Quotes – Per Equipment $72,525 - $200,000 (total of $610,000) 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 determines the estimated fair value amounts by using market information and valuation methodologies that it considers appropriate and consistent with the fair value accounting guidance. Considerable judgment is required to interpret market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. 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 price. Non-recourse and Long-term debt The fair value of the Company’s non-recourse and long-term 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 of the FASB Accounting Standards Codification at December 31, 2018 and 2017 (in thousands): Fair Value Measurements at December 31, 2018 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 1,524 $ 1,524 $ — $ — $ 1,524 Investment in securities 27 27 — — 27 Warrants, fair value 153 — — 153 153 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) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation: The accompanying balance sheets as of December 31, 2018 and 2017, and the related statements of operations, changes in members’ capital, and cash flows for the years then ended, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission. Certain prior year amounts may have been reclassified to conform to the current year presentation. These reclassifications had no significant effect on the reported financial position or results from operations. Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data. In preparing the accompanying financial statements, the Company has reviewed, as determined necessary by the Managing Member, events that have occurred after December 31, 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, and 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 for determination of the allowance for doubtful accounts and reserve for credit losses on notes receivable. |
Accounts Receivable | Accounts receivable: Accounts receivable represent the amounts billed under operating and direct financing lease contracts, and notes receivable which are currently due to the Company. Allowances for doubtful accounts are typically established based on historical charge off and collection experience and the collectability of specifically identified lessees and borrowers, and invoiced amounts. Accounts receivable deemed uncollectible are generally charged off against the allowance on a specific identification basis. Recoveries of amounts that were previously written-off are recorded as other income in the period received. |
Credit Risk | Credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk include cash and cash equivalents, operating and direct financing lease receivables, notes receivable and accounts receivable. The Company places the majority of its cash deposits in noninterest-bearing accounts with financial institutions that have no less than $10 billion in assets. Such deposits are insured up to $250 thousand. The remainder of the Funds’ cash is temporarily invested in U.S. Treasury denominated instruments. The concentration of such deposits and temporary cash investments is not deemed to create a significant risk to the Company. Accounts and notes receivable represent amounts due from lessees or borrowers in various industries, related to equipment on operating and direct financing leases or notes receivable. |
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 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 the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“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 were 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. The Company does not use the equipment held in its portfolio, but holds it solely for lease and ultimate sale. In the course of marketing equipment that has come off-lease, management may determine at some point that re-leasing the assets may provide a superior return for investors and would then execute another lease. Upon entering into a new lease contract, management will estimate the residual value once again and resume depreciation. If, and when, the Company, at any time, determines that depreciation in value may have occurred with respect to an asset held-for-sale, the Company would review the value to determine whether a material reduction in value had occurred and recognize any appropriate impairment. All lease assets, including off-lease assets, are subject to the Company’s quarterly impairment analysis, as described below. Maintenance costs associated with the Fund’s portfolio of leased assets are expensed as incurred. Major additions and betterments are capitalized. Operating lease revenue is recognized on a straight-line basis over the term of the underlying leases. The initial lease terms will vary as to the type of equipment subject to the leases, the needs of the lessees and the terms to be negotiated, but initial leases are generally on terms from 36 to 120 months. The difference between rent received and rental revenue recognized is recorded as unearned operating lease income on the balance sheet. Operating leases are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management considers the equipment underlying the lease contracts for impairment and periodically reviews the credit worthiness of all operating lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related operating leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, revenues are recognized on a cash basis. |
Initial Direct Costs | Initial direct costs: The Company capitalizes initial direct costs (“IDC”) associated with the origination and funding of lease assets and investments in notes receivable. IDC includes both internal costs (e.g., the costs of employees’ activities in connection with successful lease and loan originations) and external broker fees incurred with such originations. The costs are amortized on a lease by lease (or note by note) basis based on actual lease term using a straight-line method for operating leases and the effective interest rate method for direct financing leases and notes receivable. Upon disposal of the underlying lease assets and notes receivable, both the initial direct costs and the associated accumulated amortization are relieved. Costs related to leases or notes receivable that are not consummated are not eligible for capitalization as initial direct costs and are expensed as acquisition expense. |
Acquisition Expense | Acquisition expense: Acquisition expense represents costs which include, but are not limited to, legal fees and expenses, travel and communication expenses, cost of appraisals, accounting fees and expenses and miscellaneous expenses related to the selection and acquisition of equipment which are reimbursable to the Managing Member under the terms of the Operating Agreement. As the costs are not eligible for capitalization as initial direct costs, such amounts are expensed as incurred. |
Asset Valuation | Asset valuation: Recorded values of the Company’s leased asset portfolio are reviewed each quarter to confirm the reasonableness of established residual values and to determine whether there is indication that an asset impairment might have taken place. The Company uses a variety of sources and considers many factors in evaluating whether the respective book values of its assets are appropriate. In addition, the Company may direct a residual value review at any time if it becomes aware of issues regarding the ability of a lessee to continue to make payments on its lease contract. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than the net book value. The estimated undiscounted future cash flows are the sum of the residual value of the asset at the end of the asset’s lease contract and undiscounted future rents from the existing lease contract. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date. Upward adjustments for impairments recognized in prior periods are not made in any circumstances. |
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 Company’s principal decision makers are the Managing Member’s Chief Executive Officer and its Chief Financial Officer and Chief Operating Officer. The Company believes that its equipment leasing business operates as one reportable segment because: a) the Company measures profit and loss at the equipment portfolio level as a whole; b) the principal decision makers do not review information based on any operating segment other than the equipment leasing transaction portfolio; c) the Company does not maintain discrete financial information on any specific segment other than its equipment financing operations; d) the Company has not chosen to organize its business around different products and services other than equipment lease financing; and e) the Company has not chosen to organize its business around geographic areas. The primary geographic region in which the Company seeks leasing opportunities is North America. As of and for the years ended December 31, 2018 and 2017, all of the Company’s current operating revenues and long-lived assets relate to customers domiciled in the United States. |
Investment in Securities | Investment in securities: From time to time, the Company may purchase securities of its borrowers or receive warrants to purchase securities in connection with its lending arrangements. Purchased securities The Company’s investment securities registered for public sale are carried 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. The Company had $33 thousand and $27 thousand of purchased securities at December 31, 2018 and 2017, respectively. Based upon the Company’s review of its portfolio, the Company recorded fair value adjustments on investment in securities totaling $5 thousand and $0 during 2018 and 2017, respectively. The Company recorded an impairment loss on investment in securities of $0 and $219 thousand during 2018 and 2017, respectively. The Company recognized gains of $11 thousand and $75 thousand on sales of investment in securities during the years ended December 31, 2018 and 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. The Company recorded unrealized gain of $4 thousand and unrealized loss of $10 thousand on fair value adjustment of its warrants during 2018 and 2017, respectively. The unrealized gain recorded during 2018 increased the estimated fair value of the Company’s portfolio of warrants to $153 thousand at December 31, 2018 from $149 thousand at December 31, 2017. There were no exercise of warrants, net or otherwise, in 2018. |
Unearned Operating Lease Income | Unearned operating lease income: The Company records prepayments on operating leases as a liability under the caption of unearned operating lease income. The liability is recorded when prepayments are received and recognized as operating lease revenue over the period to which the prepayments relate using a straight-line method. |
Income Taxes | Income Taxes: The Company is treated as a partnership for federal income tax purposes. Pursuant to the provisions of Section 701 of the Internal Revenue Code, a partnership is not subject to federal income taxes. Accordingly, the Company has provided current franchise income taxes for only those states which levy income taxes on partnerships. For the years ended December 31, 2018 and 2017, the related provision for state income taxes was approximately $18 thousand and $38 thousand, respectively. The Company does not have any entity level uncertain tax positions. The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions and is generally subject to examination by U.S. federal (or state and local) income tax authorities for three years from the filing of a tax return. The tax bases of the Company’s net assets and liabilities vary from the amounts presented in these financial statements at December 31, 2018 and 2017 as follows (in thousands): 2018 2017 Financial statement basis of net assets $ 3,112 $ 2,223 Tax basis of net assets (unaudited) 6,760 5,672 Difference (unaudited) $ (3,648) $ (3,449) The primary differences between the tax bases of net assets and the amounts recorded in the financial statements are the result of differences in accounting for syndication costs and differences between the depreciation methods used in the financial statements and the Company’s tax returns. The following reconciles the net income (loss) reported in these financial statements to the income reported on the Company’s federal tax return (unaudited) for the years ended December 31, 2018 and 2017 (in thousands): 2018 2017 Net income (loss) per financial statements $ 889 $ (192) Tax adjustments (unaudited): Adjustment to depreciation expense 221 466 Provision for losses and doubtful accounts (37) 33 Adjustments to revenues/other expenses (23) 26 Adjustments to gain on sales of assets 38 105 Other — 300 Income per federal tax return (unaudited) $ 1,088 $ 738 |
Per Unit Data | Per Unit data: Net income and distributions per Unit are based upon the weighted average number of Other Members Units outstanding during the year. |
Recent Accounting Pronouncements | Recent accounting pronouncements: In November 2018, the FASB issued Accounting Standards Update 2018-19, Codification Improvements to Topic 326, Financial Instruments — Credit Losses (“ASU 2018-19”). The new standard clarifies certain aspects of the new current expected credit losses (CECL) impairment model in ASU 2016-13. The amendment clarifies that receivables arising from operating leases are within the scope of ASC 842, rather than ASC 326. The effective date and transition requirements in this Update are the same as the effective dates and transition requirements in Update 2016-13, as amended by this Update, which is for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Management is currently evaluating the impact of the standard on the financial statements and related disclosure requirements. 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 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. As part of the adoption, the Company has elected to apply the package of transitional practical expedients under which the Company will not reassess prior conclusions about lease identification, lease classification, and initial direct costs of existing leases as of the date of adoption. Under Topic 842, initial direct costs include only those incremental costs of a lease that would not have been incurred if the lease had not been executed. Therefore, only certain costs that the Company capitalized as initial direct costs under ASC Topic 840: Leases may be expensed as incurred under Topic 842. The Company expects an immaterial cumulative effect adjustment upon adoption. The Company plans to elect the lessor practical expedient to combine the lease and non-lease components. The Company expects that the lease components are the predominant component in the majority of its leasing arrangements and will account for the combined component as an operating lease under Topic 842. The Company currently does not believe the adoption will significantly affect the timing of the recognition of its combined lease and non-lease components. In December 2018, the FASB issued Accounting Standards Update 2018-20, Narrow-Scope Improvements for Lessors (“ASU 2018-20”). The new standard includes amendments related to sales taxes and other similar taxes collected from lessees, lessor costs paid by a lessee and recognition of variable payments for contracts with lease and non-lease components. The effective date in this Update is the same as that of ASU 2016-02, which is for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The adoption of ASU 2018-20 did not have a material impact on the Company’s financial statements and disclosures. 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 was 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 revenues calculated under the new guidelines were substantially the same as had previously been determined. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Differences Between Book Value and Tax Basis of Net Assets | The tax bases of the Company’s net assets and liabilities vary from the amounts presented in these financial statements at December 31, 2018 and 2017 as follows (in thousands): 2018 2017 Financial statement basis of net assets $ 3,112 $ 2,223 Tax basis of net assets (unaudited) 6,760 5,672 Difference (unaudited) $ (3,648) $ (3,449) |
Reconciliation of Net Income (Loss) Reported in Financial Statements and Federal Tax Return | The following reconciles the net income (loss) reported in these financial statements to the income reported on the Company’s federal tax return (unaudited) for the years ended December 31, 2018 and 2017 (in thousands): 2018 2017 Net income (loss) per financial statements $ 889 $ (192) Tax adjustments (unaudited): Adjustment to depreciation expense 221 466 Provision for losses and doubtful accounts (37) 33 Adjustments to revenues/other expenses (23) 26 Adjustments to gain on sales of assets 38 105 Other — 300 Income per federal tax return (unaudited) $ 1,088 $ 738 |
Concentration of Credit Risk _2
Concentration of Credit Risk and Major Customers (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Concentration of Credit Risk and Major Customers [Abstract] | |
Schedule of Equipment Leased | As of December 31, 2018 and 2017, there were concentrations (greater than or equal to 10% as a percentage of total equipment cost) of equipment leased to lessees and/or financed for borrowers in certain industries as follows: Industry 2018 2017 Air transportation 25 % 23 % Food products 25 % 18 % Retail 22 % 22 % Gas/Coal * % 17 % Business Services % * |
Schedule of Major Customers Credit Risk Concentration | Industry 2018 2017 Air transportation 25 % 23 % Food products 25 % 18 % Retail 22 % 22 % Gas/Coal * % 17 % Business Services % * During 2018 and 2017, certain lessees and/or financial borrowers generated significant portions (defined as greater than or equal to 10%) of the Company’s total leasing and lending revenues, excluding gains or losses on disposition of assets, as follows: Percentage of Total Leasing Aircraft Service International, Inc. Revenues Lessee Type of Equipment 2018 2017 Aircraft Service International, Inc. Aviation 25 % 25 % Wal-Mart Transportation, LLC Transportation 21 % 21 % Tyson Sales & Distribution, Inc. Trucks and Trailers 15 % 15 % |
Investments in Equipment and _2
Investments in Equipment and Leases, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments in Equipment and Leases, Net [Abstract] | |
Investment in Leases | Depreciation/ Reclassifications, Amortization Balance Additions/ Expense or Balance December 31, Dispositions and Amortization December 31, 2017 Impairment Losses of Leases 2018 Net investment in operating leases $ 1,652 $ (81) $ (229) $ 1,342 Assets held for sale or lease, net 272 (72) — 200 Total $ 1,924 $ (153) $ (229) $ 1,542 |
Property on Operating Leases | Property on operating leases consists of the following (in thousands): Balance Balance December 31, Reclassifications December 31, 2017 Additions or Dispositions 2018 Transportation $ 3,963 $ — $ (121) $ 3,842 Construction 2,741 — (1,542) 1,199 Aviation 2,077 — — 2,077 Other 104 — — 104 8,885 — (1,663) 7,222 Less accumulated depreciation (7,233) (229) 1,582 (5,880) Total $ 1,652 $ (229) $ (81) $ 1,342 |
Schedule of Useful Lives of Assets | As of December 31, 2018 and 2017, the respective useful lives of each category of lease assets in the Company’s portfolio are as follows (in years): Equipment category Useful Life Aviation 15 - 20 Construction 7 - 10 Materials handling 7 - 10 Transportation 7 - 10 Computer 3 - 5 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2018 and 2017 as follows (in thousands): 2018 2017 Administrative costs reimbursed to Managing Member and/or affiliates $ 122 $ 169 Asset management fees to Managing Member 50 37 $ 172 $ 206 |
Members' Capital (Tables)
Members' Capital (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Members' Capital [Abstract] | |
Distributions to Other Members | Distributions to the Other Members for the years ended December 31, 2018 and 2017 were as follows (in thousands except Units and per Unit data): 2018 2017 Distributions $ — $ 818 Weighted average number of Units outstanding 2,992,482 2,992,482 Weighted average distributions per Unit $ — $ 0.27 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Measurement of Impaired Assets at Fair Value on Non-recurring Basis | The table below presents the fair value measurement of assets and liabilities measured at fair value on a non-recurring basis and the level within the hierarchy in which the fair value measurements fall at December 31, 2017 (in thousands): Level 1 Level 2 Level 3 December 31, Estimated Estimated Estimated 2018 Fair Value Fair Value Fair Value Assets measured at fair value on a non-recurring basis Impaired off-lease equipment $ 273 $ — $ — $ 273 |
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/adjustments categorized as Level 3 in the fair value hierarchy at December 31, 2018 and 2017: December 31, 2018 Valuation Valuation Unobservable Range of Name Frequency Technique Inputs Input Values Warrants Recurring Black-Scholes formulation Stock price $0.05 - $9.98 Exercise price $0.36 - $38.64 Time to maturity (in years) 1.99 - 4.84 Risk-free interest rate 2.47% - 2.51% Annualized volatility 47.58% - 70.27% 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% - 83.30% Impaired off-lease equipment Non-recurring Market Approach Third Party Agents’ pricing Quotes – Per Equipment $72,525 - $200,000 (total of $610,000) Equipment Condition Good |
Estimated Fair Values of Financial Instruments | The following tables present estimated fair values of the Company’s financial instruments in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification at December 31, 2018 and 2017 (in thousands): Fair Value Measurements at December 31, 2018 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 1,524 $ 1,524 $ — $ — $ 1,524 Investment in securities 27 27 — — 27 Warrants, fair value 153 — — 153 153 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 |
Warrants [Member] | |
Reconciliation of Assets | The following table reconciles the beginning and ending balances of the Company’s Level 3 recurring assets (in thousands): 2018 2017 Fair value of warrants at beginning of year $ 149 $ 159 Unrealized gain (loss) on fair valuation of warrants 4 (10) Fair value of warrants at end of year $ 153 $ 149 |
Investment Securities [Member] | |
Reconciliation of Assets | The fair value of investment securities that were accounted for on a recurring basis as of December 31, 2018 and classified as Level 1 are as follows (in thousands): 2018 Fair value of investment in securities at beginning of year $ 22 Unrealized gain on fair valuation of investment in securities 5 Fair value of investment in securities at end of year $ 27 |
Organization and Limited Liab_2
Organization and Limited Liability Company Matters (Narrative) (Details) - USD ($) | Jan. 24, 2008 | Sep. 26, 2007 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jul. 15, 2008 |
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 | |||||||
Public offering of Limited Company Units | 20,000,000 | |||||||
Public offering of Limited Liability Company Units, price per unit | $ 10 | |||||||
Sale of Limited Liability Company Units, number of units | 120,000 | |||||||
Proceeds from sale of Limited Liability Company Units | $ 1,200,000 | |||||||
Contributions received, net of rescissions and/or redemptions | $ 29,900,000 | $ 29,900,000 | $ 29,900,000 | |||||
Reinvestment period | 6 years | |||||||
Minimum [Member] | ||||||||
Amount of aggregate subscriptions for Pennsylvania subscriptions to be released to the Fund | $ 7,500,000 | |||||||
Contributions received, net of rescissions and/or redemptions | $ 7,500,000 | |||||||
Other Members [Member] | ||||||||
Units issued | 2,992,482 | 2,992,482 | 2,992,482 | 2,992,482 | ||||
Units outstanding | 2,992,482 | 2,992,482 | 2,992,482 | 2,992,482 | 2,992,482 | |||
Managing Member [Member] | ||||||||
Contributions of capital by initial Members | $ 500 | $ 500 | $ 500 | |||||
Units issued | 50 | 50 | 50 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | |
Summary of Significant Accounting Policies [Line Items] | ||
Equipment on operating leases, depreciation method | straight-line | |
Provision for impairment losses on investment in securities | $ 219 | |
Warrants, fair value | $ 153 | 149 |
Number of operating segments | segment | 1 | |
Number of reportable segments | segment | 1 | |
Taxes on income and franchise fees | $ 18 | 38 |
Investment in securities | 33 | 27 |
Gain on sales or dispositions of investment in securities | $ 11 | 75 |
Period subject to income tax examination | 3 years | |
Unrealized gain (loss) on fair value adjustment for warrants | $ 4 | $ (10) |
Unrealized gain on fair value adjustment for investment in securities | 5 | |
Minimum [Member] | ||
Summary of Significant Accounting Policies [Line Items] | ||
Required assets value of financial institutions for cash deposits | $ 10,000,000 | |
Operating leases, initial terms | 36 months | |
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 | |
Operating leases, initial terms | 120 months | |
Operating leases, period of review for impairment | 90 days |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Schedule of Differences Between Book Value and Tax Basis of Net Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Summary of Significant Accounting Policies [Abstract] | |||
Financial statement basis of net assets | $ 3,112 | $ 2,223 | $ 3,299 |
Tax basis of net assets | 6,760 | 5,672 | |
Difference | $ (3,648) | $ (3,449) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Reconciliation of Net Income (Loss) Reported in Financial Statements and Federal Tax Return) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | ||
Net income (loss) per financial statements | $ 889 | $ (192) |
Adjustment to depreciation expense | 221 | 466 |
Provision for losses and doubtful accounts | (37) | 33 |
Adjustments to revenues / other expenses | (23) | 26 |
Adjustments to gain on sales of assets | 38 | 105 |
Other | 300 | |
Income per federal tax return (unaudited) | $ 1,088 | $ 738 |
Concentration of Credit Risk _3
Concentration of Credit Risk and Major Customers (Schedule of Leasing and Lending Revenues) (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Air Transportation [Member] | Equipment Cost [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentration risk | 25.00% | 23.00% |
Retail [Member] | Equipment Cost [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentration risk | 22.00% | 22.00% |
Food Products [Member] | Equipment Cost [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentration risk | 25.00% | 18.00% |
Natural Gas/Coal [Member] | Equipment Cost [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentration risk | 17.00% | |
Business Services [Member] | Equipment Cost [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentration risk | 13.00% | |
Aviation [Member] | Aircraft Service International, Inc. [Member] | Operating Revenues [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentration risk | 25.00% | 25.00% |
Transportation [Member] | Wal-Mart Transportation, LLC [Member] | Operating Revenues [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentration risk | 21.00% | 21.00% |
Trucks Trailers Member] | Tyson Sales & Distribution, Inc. [Member] | Operating Revenues [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentration risk | 15.00% | 15.00% |
Investments in Equipment and _3
Investments in Equipment and Leases, Net (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Investments in Equipment and Leases, Net [Abstract] | ||
Depreciation of operating lease assets | $ 229 | $ 570 |
Average estimated residual value for assets on operating leases | 16.00% | 19.00% |
Fair value adjustments on equipment | $ 281 |
Investments in Equipment and _4
Investments in Equipment and Leases, Net (Investment in Leases) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Leases Disclosure [Line Items] | |
Balance December 31, 2017 | $ 1,924 |
Reclassifications, Additions/Dispositions and Impairment Losses | (153) |
Depreciation/Amortization Expense or Amortization of Leases | (229) |
Balance December 31, 2018 | 1,542 |
Operating Leases [Member] | |
Leases Disclosure [Line Items] | |
Balance December 31, 2017 | 1,652 |
Reclassifications, Additions/Dispositions and Impairment Losses | (81) |
Depreciation/Amortization Expense or Amortization of Leases | (229) |
Balance December 31, 2018 | 1,342 |
Assets Held-for-Sale or Lease [Member] | |
Leases Disclosure [Line Items] | |
Balance December 31, 2017 | 272 |
Reclassifications, Additions/Dispositions and Impairment Losses | (72) |
Balance December 31, 2018 | $ 200 |
Investments in Equipment and _5
Investments in Equipment and Leases, Net (Property on Operating Leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | $ 7,222 | $ 8,885 |
Less accumulated depreciation | (5,880) | (7,233) |
Property on operating leases, net | 1,342 | 1,652 |
Additions, less accumulated depreciation | (229) | |
Additions, net | (229) | |
Reclassifications or dispositions, gross | (1,663) | |
Reclassifications or dispositions, less accumulated depreciation | 1,582 | |
Reclassifications or dispositions, net | (81) | |
Transportation [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 3,842 | 3,963 |
Reclassifications or dispositions, gross | (121) | |
Construction [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 1,199 | 2,741 |
Reclassifications or dispositions, gross | (1,542) | |
Air Transportation [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | 2,077 | 2,077 |
Other [Member] | ||
Property Subject to or Available for Operating Lease [Line Items] | ||
Property on operating leases, gross | $ 104 | $ 104 |
Investments in Equipment and _6
Investments in Equipment and Leases, Net (Schedule of Useful Lives of Assets) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Minimum [Member] | Air Transportation [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 [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] | Air Transportation [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 [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 |
Allowance for Credit Losses (Na
Allowance for Credit Losses (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Allowance for Credit Losses [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 0 | $ 37 |
Related Party Transactions (Aff
Related Party Transactions (Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transactions [Abstract] | ||
Administrative costs reimbursed to Managing Member and/or affiliates | $ 122 | $ 169 |
Asset management fees to Managing Member | 50 | 37 |
Related party transaction, total | $ 172 | $ 206 |
Non-Recourse Debt (Narrative) (
Non-Recourse Debt (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Long-term debt, principal and interest | $ 104 | |
Non-recourse debt | 103 | |
Long-term debt, interest | 1 | |
Non-Recourse Debt [Member] | ||
Debt Instrument [Line Items] | ||
Gross operating lease rentals and future payments on direct financing leases | 109 | |
Carrying value of pledged assets | $ 657 | |
Note maturity date, description | The notes matured at various dates in 2018. | |
Maximum [Member] | Non-Recourse Debt [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest rate on note | 2.39% | |
Minimum [Member] | Non-Recourse Debt [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Interest rate on note | 1.97% |
Commitments (Narrative) (Detail
Commitments (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Commitments [Abstract] | |
Commitments to purchase lease assets | $ 0 |
Members' Capital (Narrative) (D
Members' Capital (Narrative) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Members Capital Account [Line Items] | |||
Allocation of net income and net losses | 100.00% | ||
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 |
Allocation of net income and net losses from commencement until initial closing date | 1.00% | ||
Allocation of net income and net losses commencing with initial closing date | 92.50% | ||
Percentage of fund distributions | 92.50% | ||
Managing Member [Member] | |||
Other Members Capital Account [Line Items] | |||
Members capital account, Units issued | 50 | ||
Allocation of net income and net losses from commencement until initial closing date | 99.00% | ||
Allocation of net income and net losses commencing with initial closing date | 7.50% | ||
Percentage of fund distributions | 7.50% | ||
Maximum [Member] | Other Members [Member] | |||
Other Members Capital Account [Line Items] | |||
Members capital account, Units authorized | 20,000,000 | 20,000,000 |
Members' Capital (Distributions
Members' Capital (Distributions to Other Members) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Members' Capital [Abstract] | ||
Distributions | $ 818 | |
Weighted average number of Units outstanding | 2,992,482 | 2,992,482 |
Weighted average distributions per Unit | $ 0.27 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2018 | |
Fair Value Measurements [Abstract] | ||
Fair value adjustments on equipment | $ 281 | |
Warrants, fair value | 149 | $ 153 |
Fair value adjustments on investment in securities | $ 219 |
Fair Value Measurements (Reconc
Fair Value Measurements (Reconciliation of Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of warrants at beginning of year | $ 149 | |
Unrealized gain (loss) on fair valuation of warrants | 4 | $ (10) |
Fair value of warrants at end of year | 153 | 149 |
Unrealized gain on fair valuation of investment in securities | 5 | |
Fair value of investment in securities at end of year | 27 | |
Level 3 Estimated Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of warrants at beginning of year | 149 | 159 |
Unrealized gain (loss) on fair valuation of warrants | 4 | (10) |
Fair value of warrants at end of year | 153 | 149 |
Level 1 Estimated Fair Value [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value of investment in securities at beginning of year | 22 | |
Unrealized gain on fair valuation of investment in securities | 5 | |
Fair value of investment in securities at end of year | $ 27 | $ 22 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurement of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impaired off-lease equipment | $ 273 |
Level 1 Estimated Fair Value [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impaired off-lease equipment | |
Level 2 Estimated Fair Value [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impaired off-lease equipment | |
Level 3 Estimated Fair Value [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Impaired off-lease equipment | $ 273 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary of Valuation Techniques and Significant Unobservable Inputs Used) (Details) - Level 3 Estimated Fair Value [Member] | Dec. 31, 2018Y$ / shares | Dec. 31, 2017USD ($)Y$ / shares |
Non-recurring [Member] | Impaired off-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 | $ | $ 610,000 | |
Minimum [Member] | Recurring [Member] | Warrants [Member] | Black Scholes Model [Member] | Unobservable Inputs, Stock Price [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | 0.05 | 0.02 |
Minimum [Member] | Recurring [Member] | Warrants [Member] | Black Scholes Model [Member] | Unobservable Inputs, Exercise Price [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | 0.36 | 0.36 |
Minimum [Member] | Recurring [Member] | Warrants [Member] | Black Scholes Model [Member] | Unobservable Inputs, Time to Maturity (in Years) [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | Y | 1.99 | 0.75 |
Minimum [Member] | Recurring [Member] | Warrants [Member] | Black Scholes Model [Member] | Unobservable Inputs, Risk Free Interest Rate [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | 0.0247 | 0.0165 |
Minimum [Member] | Recurring [Member] | Warrants [Member] | Black Scholes Model [Member] | Unobservable Inputs, Annualized Volatility [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | 0.4758 | 0.4832 |
Minimum [Member] | Non-recurring [Member] | Impaired off-lease Equipment [Member] | Market Approach [Member] | Unobservable Inputs, Third Party Agents' pricing Quotes - Per Equipment [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired off-lease equipment, Range of Input Values | $ | $ 72,525 | |
Maximum [Member] | Recurring [Member] | Warrants [Member] | Black Scholes Model [Member] | Unobservable Inputs, Stock Price [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | 9.98 | 14.75 |
Maximum [Member] | Recurring [Member] | Warrants [Member] | Black Scholes Model [Member] | Unobservable Inputs, Exercise Price [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | 38.64 | 25.76 |
Maximum [Member] | Recurring [Member] | Warrants [Member] | Black Scholes Model [Member] | Unobservable Inputs, Time to Maturity (in Years) [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | Y | 4.84 | 5.84 |
Maximum [Member] | Recurring [Member] | Warrants [Member] | Black Scholes Model [Member] | Unobservable Inputs, Risk Free Interest Rate [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | 0.0251 | 0.0225 |
Maximum [Member] | Recurring [Member] | Warrants [Member] | Black Scholes Model [Member] | Unobservable Inputs, Annualized Volatility [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Warrants, Range of Input Values | 0.7027 | 0.833 |
Maximum [Member] | Non-recurring [Member] | Impaired off-lease Equipment [Member] | Market Approach [Member] | Unobservable Inputs, Third Party Agents' pricing Quotes - Per Equipment [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired off-lease equipment, Range of Input Values | $ | $ 200,000 |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financial assets: | |||
Cash and cash equivalents | $ 1,524 | $ 479 | |
Investment in securities | 27 | ||
Warrants, fair value | 153 | 149 | |
Financial liabilities: | |||
Non-recourse debt | 102 | ||
Level 1 Estimated Fair Value [Member] | |||
Financial assets: | |||
Cash and cash equivalents | 1,524 | 479 | |
Investment in securities | 27 | 22 | |
Level 3 Estimated Fair Value [Member] | |||
Financial assets: | |||
Warrants, fair value | 153 | 149 | $ 159 |
Financial liabilities: | |||
Non-recourse debt | 102 | ||
Carrying Amount [Member] | |||
Financial assets: | |||
Cash and cash equivalents | 1,524 | 479 | |
Investment in securities | 27 | ||
Warrants, fair value | $ 153 | 149 | |
Financial liabilities: | |||
Non-recourse debt | $ 103 |