Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 28, 2023 | Jun. 30, 2022 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Entity File Number | 000-54356 | ||
Entity Registrant Name | ATEL 14, LLC | ||
Entity Incorporation, State or Country Code | CA | ||
Entity Tax Identification Number | 26-4695354 | ||
Entity Address, Address Line One | The Transamerica Pyramid | ||
Entity Address, Address Line Two | 600 Montgomery Street, 9th Floor | ||
Entity Address, City or Town | San Francisco | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94111 | ||
City Area Code | 415 | ||
Local Phone Number | 989-8800 | ||
Title of 12(g) Security | Limited Liability Company Units | ||
No Trading Symbol Flag | true | ||
Security Exchange Name | NONE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Smaller Reporting Company | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Entity Units Outstanding | 8,246,919 | ||
Entity Central Index Key | 0001463389 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Auditor Name | Moss Adams LLP | ||
Auditor Firm ID | 659 | ||
Auditor Location | San Francisco |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 962 | $ 1,748 |
Accounts receivable, net | 41 | 39 |
Investment in equity securities | 128 | 133 |
Warrants, fair value | 0 | 3 |
Equipment under operating leases, net | 6,796 | 8,411 |
Prepaid expenses and other assets | 6 | 8 |
Total assets | 7,933 | 10,342 |
Accounts payable and accrued liabilities: | ||
Affiliates | 20 | 21 |
Other | 166 | 158 |
Non-recourse debt | 1,184 | 2,163 |
Unearned operating lease income | 13 | 25 |
Total liabilities | 1,383 | 2,367 |
Commitments and contingencies | ||
Members' capital: | ||
Managing Member | 0 | 0 |
Other Members | 6,550 | 7,975 |
Total Members' capital | 6,550 | 7,975 |
Total liabilities and Members' capital | $ 7,933 | $ 10,342 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Investment in equipment and leases, net | ||
Operating leases | $ 2,170,000 | $ 2,416,000 |
Gain on sales of operating lease assets | 361,000 | 83,000 |
Other revenue | 6,000 | 3,000 |
Total operating revenues | 2,537,000 | 2,502,000 |
Operating expenses: | ||
Depreciation of operating lease assets | 1,410,000 | 1,854,000 |
Asset management fees to Managing Member | 91,000 | 102,000 |
Cost reimbursements to Managing Member and/or affiliates | 335,000 | 393,000 |
Impairment losses on equipment | 0 | 671,000 |
Interest expense | 58,000 | 91,000 |
Professional fees | 156,000 | 143,000 |
Outside services | 51,000 | 83,000 |
Taxes on income and franchise fees | 111,000 | 121,000 |
Bank charges | 8,000 | 10,000 |
Storage fees | 3,000 | 84,000 |
Railcar maintenance | 142,000 | 259,000 |
Freight and shipping | 110,000 | |
Other expense | 73,000 | 53,000 |
Total operating expenses | 2,438,000 | 3,974,000 |
Income (loss) from operations | 99,000 | (1,472,000) |
Other (loss) income: | ||
Gain on sale of investment in equity securities | 13,000 | |
Unrealized (loss) gain on fair value adjustment for equity securities | (5,000) | 54,000 |
Unrealized loss on fair value adjustment for warrants | (3,000) | (28,000) |
Total other (loss) income | (8,000) | 39,000 |
Net income (loss) | 91,000 | (1,433,000) |
Net income (loss): | ||
Managing Member | 114,000 | 67,000 |
Other Members | (23,000) | (1,500,000) |
Net income (loss) | $ 91,000 | $ (1,433,000) |
Net income (loss) per Limited Liability Company Unit - Other Members | $ (0.18) | |
Weighted average number of Units outstanding | 8,246,919 | 8,246,919 |
Statements of Changes in Member
Statements of Changes in Members' Capital - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Beginning Balance | $ 7,975 | $ 10,382 |
Distributions to Other Members | (1,402) | (907) |
Distributions to Managing Member | (114) | (67) |
Net (loss) income | $ 91 | (1,433) |
Ending Balance (in Units) | 8,246,919 | |
Ending Balance | $ 6,550 | $ 7,975 |
Other Members [Member] | ||
Beginning Balance (in Units) | 8,246,919 | 8,246,919 |
Beginning Balance | $ 7,975 | $ 10,382 |
Distributions to Other Members | (1,402) | (907) |
Net (loss) income | $ (23) | $ (1,500) |
Ending Balance (in Units) | 8,246,919 | 8,246,919 |
Ending Balance | $ 6,550 | $ 7,975 |
Managing Member [Member] | ||
Distributions to Managing Member | (114) | (67) |
Net (loss) income | $ 114 | $ 67 |
Statements of Changes in Memb_2
Statements of Changes in Members' Capital (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Distributions to Other Members, per Unit | $ 0.17 | $ 0.11 |
Other Members [Member] | ||
Distributions to Other Members, per Unit | $ 0.17 | $ 0.11 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating activities: | ||
Net income (loss) | $ 91,000 | $ (1,433,000) |
Adjustment to reconcile net income (loss) to cash provided by operating activities: | ||
Gain on sales of operating lease assets | (361,000) | (83,000) |
Depreciation of operating lease assets | 1,410,000 | 1,854,000 |
Reversal of provision for doubtful accounts | (4,000) | (1,000) |
Impairment losses on equipment | 0 | 671,000 |
Gain on sale of investment in equity securities | (13,000) | |
Unrealized loss (gain) on fair value adjustment for equity securities | 5,000 | (54,000) |
Unrealized loss on fair value adjustment for warrants | 3,000 | 28,000 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 2,000 | 21,000 |
Prepaid expenses and other assets | 2,000 | 6,000 |
Accounts payable, Managing Member and affiliates | (1,000) | 52,000 |
Other accounts payable and accruals | 8,000 | (36,000) |
Unearned operating lease income | (12,000) | (49,000) |
Net cash provided by operating activities | 1,143,000 | 963,000 |
Investing activities: | ||
Proceeds from sales of investment securities | 239,000 | |
Proceeds from sales of operating lease assets | 566,000 | 1,556,000 |
Net cash provided by investing activities | 566,000 | 1,795,000 |
Financing activities: | ||
Repayments under non-recourse debt | (979,000) | (945,000) |
Net cash used in financing activities | (2,495,000) | (1,919,000) |
Net (decrease) increase in cash and cash equivalents | (786,000) | 839,000 |
Cash and cash equivalents at beginning of year | 1,748,000 | 909,000 |
Cash and cash equivalents at end of year | 962,000 | 1,748,000 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the year for interest | 58,000 | 91,000 |
Cash paid during the year for taxes | 117,000 | 92,000 |
Other Members [Member] | ||
Financing activities: | ||
Distributions to Members | (1,402,000) | (907,000) |
Managing Member [Member] | ||
Financing activities: | ||
Distributions to Members | $ (114,000) | $ (67,000) |
Organization and Limited Liabil
Organization and Limited Liability Company Matters | 12 Months Ended |
Dec. 31, 2022 | |
Organization and Limited Liability Company Matters [Abstract] | |
Organization and Limited Liability Company Matters | 1. Organization and Limited Liability Company matters: ATEL 14, LLC (the “Company” or the “Fund”) was formed under the laws of the state of California on April 1, 2009 (“Date of Inception”) for the purpose of equipment financing and acquiring equipment to engage in equipment leasing and sales activities. The Managing Member of the Company is ATEL Managing Member, LLC (the “Managing Member” or “Manager”), a Nevada limited liability company. Prior to May 9, 2011, the Manager was named ATEL Associates 14, LLC. The Managing Member is controlled by ATEL Financial Services, LLC (“AFS”), a wholly-owned subsidiary of ATEL Capital Group. The Fund may continue until December 31, 2030. Contributions in the amount of $500 were received as of May 8, 2009, which represented the initial member’s capital investment. As a limited liability company, the liability of any individual member for the obligations of the Fund is limited to the extent of capital contributions to the Fund by the individual member. The Company conducted a public offering of 15,000,000 Limited Liability Company Units (“Units”), at a price of $10 per Unit. As of December 2, 2009, subscriptions for the minimum number of Units (120,000, representing $1.2 million), excluding subscriptions from Pennsylvania investors, had been received and the Fund requested subscription proceeds to be released from escrow. On that date, the Company commenced initial operations and continued in its development stage activities until transitioning to an operating enterprise during the first quarter of 2010. 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 February 12, 2010, at which time a request was processed to release the Pennsylvania escrowed amounts. The offering was terminated on October 6, 2011. As of December 31, 2022, cumulative gross contributions, less rescissions and repurchases (net of distributions paid and allocated syndication costs, as applicable), totaling $83.5 million (inclusive of the $500 initial Member’s capital investment) have been received. As of the same date, 8,246,919 Units were issued and outstanding The Company’s principal objectives are to invest in a diversified portfolio of investments that will (i) preserve, protect and return the Company’s invested capital; (ii) generate regular cash distributions to Unitholders, with any balance remaining after required minimum distributions to be used to purchase additional investments during the Reinvestment Period (ending six 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 (Note 6). 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, 2022 | |
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, 2022 and 2021, 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, 2022, up until the issuance of the financial statements. No events were noted which would require additional disclosure in the footnotes to the financial statements. Cash and cash equivalents: Cash and cash equivalents include cash in banks and cash equivalent investments such as U.S. Treasury instruments with original and/or purchased maturities of ninety days or less. Use of Estimates: The preparation of 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 on accounts receivable. Accounts receivable: Accounts receivable represent the amounts billed under operating lease contracts which are currently due to the Company. Allowances for doubtful accounts are typically established based on historical charge off and collection experience and the collectability of specifically identified lessees and invoiced amounts. Accounts receivable deemed uncollectible are generally charged off against the allowance on a specific identification basis. Recoveries of amounts that were previously written-off are recorded as other income in the period received. Credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk include cash and cash equivalents, operating lease receivables, 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 receivable represent amounts due from lessees in various industries, related to equipment on operating leases. Equipment on operating leases and related revenue recognition: Equipment subject to operating leases is stated at cost. Depreciation is being recognized on a straight-line method over the terms of the related leases to the equipment’s estimated residual values. Off-lease equipment is generally not subject to depreciation. The Company depreciates all lease assets, in accordance with guidelines consistent with Accounting Standards Codification (“ASC”) 360-10-35-3, over the periods of the lease terms contained in each asset’s respective lease contract to the estimated residual value at the end of the lease contract. All lease assets are purchased only concurrent with the execution of a lease commitment by the lessee. Thus, the original depreciation period corresponds with the term of the original lease. Once the term of an original lease contract is completed, the subject property is typically sold to the existing user, re-leased to the existing user, or, when off-lease, is held for sale. Assets which are re-leased continue to be depreciated using the terms of the new lease agreements and the estimated residual values at the end of the new lease terms, adjusted downward as necessary. Assets classified as held-for-sale are carried at the lower of carrying amount, or the fair value less cost to sell (ASC 360-10-35-43). The Company does not use the equipment held in its portfolio, but holds it solely for lease and ultimate sale. In the course of marketing equipment that has come off-lease, management may determine at some point that re-leasing the assets may provide a superior return for investors and would then execute another lease. Upon entering into a new lease contract, management will estimate the residual value once again and resume depreciation. If, and when, the Company, at any time, determines that depreciation in value may have occurred with respect to an asset held-for-sale, the Company would review the value to determine whether a material reduction in value had occurred and recognize any appropriate impairment. All lease assets, including off-lease assets, are subject to the Company’s quarterly impairment analysis, as described below. Maintenance costs associated with the Fund’s portfolio of leased assets are expensed as incurred. Major additions and betterments are capitalized. Operating lease revenue is recognized on a straight-line basis over the term of the underlying leases. The initial lease terms will vary as to the type of equipment subject to the leases, the needs of the lessees and the terms to be negotiated, but initial leases are generally on terms from 36 to 120 months. The difference between rent received and rental revenue recognized is recorded as unearned operating lease income on the balance sheet. Operating leases are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management considers the equipment underlying the lease contracts for impairment and periodically reviews the credit worthiness of all operating lessees with payments outstanding less than 90 days . Based upon management’s judgment, the related operating leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, revenues are recognized on a cash basis. Provisions for doubtful accounts relating to operating leases are included in lease income in the Company’s financial statements. Initial direct costs: Incremental costs of a lease that would not have been incurred if the lease had not been obtained are capitalized and amortized over the lease term. All other costs associated with the execution of the Company’s leases are expensed as incurred. Asset valuation: Recorded values of the Company’s leased asset portfolio are reviewed each quarter to confirm the reasonableness of established residual values and to determine whether there is indication that an asset impairment might have taken place. The Company uses a variety of sources and considers many factors in evaluating whether the respective book values of its assets are appropriate. In addition, the Company may direct a residual value review at any time if it becomes aware of issues regarding the ability of a lessee to continue to make payments on its lease contract. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than 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. For the years ended December 31, 2022 and 2021, and as of December 31, 2022 and 2021, all of the Company’s current operating revenues and long-lived assets relate to customers domiciled in the United States. Investment securities: From time to time, the Company may receive the right to purchase equity securities of its borrowers or receive warrants in connection with its lending arrangements. Investment in equity securities The Company’s equity securities registered for public sale with readily determinable fair values are measured at fair value with any changes in fair value recognized in the Company’s results of operations. The Company’s equity securities that do not have readily determinable fair values are measured at cost minus impairment and adjusted for changes in observable prices. Factors considered by the Managing Member in determining fair value include, but are not limited to, available financial information, the issuer’s ability to meet its current obligations and indications of the issuer’s subsequent ability to raise capital. As of December 31, 2022 and 2021, equity securities totaled $128 thousand and $133 thousand, respectively. Such amounts included equity securities which do not have readily determinable market value totaling $125 thousand at both December 31, 2022 and 2021. During the years ended December 31, 2022 and 2021, the Company recorded unrealized losses of $5 thousand and $4 thousand, respectively, on equity securities with readily determinable fair values. There were no unrealized gains and losses recorded on equity securities that do not have readily determinable fair values during 2022. By comparison, unrealized gains of $58 thousand were recorded on such securities during 2021. Cumulative adjustments totaling $186 thousand have been recorded to reduce the value of equity securities that do not have readily determinable fair values held at December 31, 2022 based on changes in observable prices. There were no securities sold during the ended December 31, 2022. During the year ended December 31, 2021, the Company sold investment securities valued at approximately $226 thousand and realized a $13 thousand gain on the sales. 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. As of December 31, 2022, all of the Fund’s warrants have expired. At December 31, 2021, the estimated fair value of the Company’s portfolio of warrants totaled $3 thousand. 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, 2022 and 2021, the related provision for state income taxes was approximately $114 thousand and $121 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, 2022 and 2021 as follows (in thousands): 2022 2021 Financial statement basis of net assets $ 6,550 $ 7,975 Tax basis of net assets (unaudited) 17,068 18,519 Difference $ (10,518) $ (10,544) 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 loss reported in these financial statements to the income (loss) reported on the Company’s federal tax return (unaudited) for the years ended December 31, 2022 and 2021 (in thousands): 2022 2021 Net loss per financial statements $ 91 $ (1,433) Tax adjustments (unaudited): Adjustment to depreciation expense (229) 197 Provision for losses and doubtful accounts (4) (1) Adjustments to (expenses) revenues 561 (75) Adjustments to gain on sales of assets (361) 1,699 Other 6 703 Income per federal tax return (unaudited) $ 64 $ 1,090 Per Unit data: Net income (loss) and distributions per Unit are based upon the weighted average number of Other Members Units outstanding during the year. Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-03, Codification Improvements to Financial Instruments (“ASU 2020-03”). ASU 2020-03 improves and clarifies various financial instruments topics, including the current expected credit losses (CECL) standard issued in 2016. ASU 2020-03 includes seven different issues that describe the areas of improvement and the related amendments to GAAP that are intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The amendments have different effective dates. The Company adopted this new accounting guidance on January 1, 2023. Such adoption had no material impact on the Company’s financial statements and disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326) (“ASU 2016-13”). The main objective of this Update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments affect entities holding financial assets and equipment under operating leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, equipment under operating 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. The Company adopted this new accounting guidance on January 1, 2023. Such adoption had no material impact on the Company’s financial statements and disclosures. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments — Credit Losses (“ASU 2018-19”). The new standard clarifies certain aspects of the new CECL impairment model in ASU 2016-13. The amendment clarifies that receivables arising from operating leases are within the scope of ASC 842, rather than ASC 326. |
Concentration of Credit Risk an
Concentration of Credit Risk and Major Customers | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 and 2021, there were concentrations (greater than or equal to 10% as a percentage of total equipment cost) of equipment leased to lessees and/or financed for borrowers in certain industries as follows: Percentage of Total Equipment Cost Industry 2022 2021 Oil/Gas field services 83 % 81 % Transportation 15 % 16 % During 2022 and 2021, certain lessees and/or financial borrowers generated significant portions (defined as greater than or equal to 10%) of the Company’s total leasing and lending revenues, excluding gains or losses on disposition of assets, as follows: Percentage of Total Leasing and Lending Revenues Lessee Type of Equipment 2022 2021 Halliburton Overseas Limited Marine vessel 48 % 43 % Finger Lakes Railway Corp Transportation, rail 13 % * GE Aviation Manufacturing 10 % 22 % Danisco US Inc. Transportation, rail 10 % * * Less than 10% 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. |
Investment in equipment and lea
Investment in equipment and leases, net | 12 Months Ended |
Dec. 31, 2022 | |
Investment in equipment and leases, net [Abstract] | |
Equipment under operating leases, net | 4. Investment in equipment and leases, net: The Company’s investment in equipment and leases consists of the following (in thousands): Depreciation/ Amortization Balance Reclassifications Expense or Balance December 31, Additions and Amortization December 31, 2021 Dispositions of Leases 2022 Equipment under operating leases, net $ 7,852 $ (135) $ (1,408) $ 6,309 Assets held for sale or lease, net 559 (70) (2) 487 Total $ 8,411 $ (205) $ (1,410) $ 6,796 The Company utilizes a straight line depreciation method over the term of the equipment lease for equipment under operating leases currently in its portfolio. Depreciation expense on the Company’s equipment totaled $1.4 million and $1.9 million for the years ended December 31, 2022 and 2021, respectively. Depreciation expense for the respective years ended December 31, 2022 and 2021 include $46 thousand and $454 thousand of additional depreciation recorded to reflect year-to-date changes in estimated residual values of certain equipment generating revenue under month to-month extensions. Such estimated residual values of equipment associated with leases on month-to-month extensions are evaluated at least semi-annually, and depreciation recorded for the change in the estimated reduction in value. There was no impairment loss recorded on equipment during 2022. By comparison, impairment losses totaling $671 thousand were recorded during 2021. All of the Company’s lease asset purchases and capital improvements were made during the years from 2009 through 2020. Operating leases: Property under operating leases consists of the following (in thousands): Balance Balance December 31, Reclassifications December 31, 2021 Additions or Disposition 2022 Marine vessel $ 19,410 $ — $ — $ 19,410 Transportation, rail 4,032 — (552) 3,480 Transportation 208 — — 208 Manufacturing 3,119 — (2,022) 1,097 Materials handling 125 — (4) 121 Construction 582 — — 582 Agriculture 542 — (263) 279 28,018 — (2,841) 25,177 Less accumulated depreciation (20,166) (1,408) 2,706 (18,868) Total $ 7,852 $ (1,408) $ (135) $ 6,309 The average estimated residual value for assets on operating leases was 20% of the assets’ original cost at both December 31, 2022 and 2021. There were no operating leases in non-accrual status at both December 31, 2022 and 2021. At December 31, 2022, the aggregate amounts of future minimum lease payments receivable are as follows (in thousands): Operating Leases Year ending December 31, 2023 $ 1,399 2024 422 2025 209 2026 52 $ 2,082 The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of December 31, 2022 and 2021, the respective useful lives of each category of lease assets in the Company’s portfolio are as follows (in years): Equipment category Useful Life Transportation, rail 35 - 50 Marine vessel 20 - 30 Manufacturing 10 -15 Agriculture 7 - 10 Construction 7 - 10 Materials handling 7 - 10 Transportation, trucks and trailers 7 - 10 |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts | 12 Months Ended |
Dec. 31, 2022 | |
Allowance for Doubtful Accounts [Abstract] | |
Allowance for Credit Losses | 5. Allowance for doubtful accounts: The Company’s allowance for doubtful accounts are as follows (in thousands): Allowance for Doubtful Accounts Operating Leases Balance December 31, 2020 $ 5 Reversal of provision for doubtful accounts (1) Balance December 31, 2021 $ 4 Balance December 31, 2021 $ 4 Reversal of provision for doubtful accounts (4) Balance December 31, 2022 $ — The Company had no financing receivables as of December 31, 2022 and 2021. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
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. AFS and ATEL Leasing Corporation (“ALC”) are wholly-owned subsidiaries of ATEL Capital Group 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. Pursuant to the Operating Agreement, the Managing Member and/or affiliates earned fees and billed for reimbursements during the years ended December 31, 2022 and 2021 as follows (in thousands): 2022 2021 Administrative costs reimbursed to Managing Member and/or affiliates $ 335 $ 393 Asset management fees to Managing Member 91 102 $ 426 $ 495 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, 2022 and 2021, the Company has not exceeded the annual and/or cumulative limitations discussed above. |
Non-Recourse Debt
Non-Recourse Debt | 12 Months Ended |
Dec. 31, 2022 | |
Non-Recourse Debt [Abstract] | |
Non-Recourse Debt | 7. Non-recourse debt: At December 31, 2022, non-recourse debt consists of a note payable to financial institutions. Such note is due in monthly installments. Interest on the note is at 3.40% per annum. The note is secured by assignments of lease payments and pledges of assets. At December 31, 2022, gross operating lease rentals totaled approximately $1.2 million; and the carrying value of the pledged assets is $5.3 million. The note matures in 2024. The non-recourse debt does not contain any material financial covenants. The debt is secured by a specific lien granted by the Company to the non-recourse lender on (and only on) the discounted lease transactions. The lender has 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 is payable solely out of the respective specific security and the Company does not guarantee (nor is the Company otherwise contractually responsible for) the payment of the non-recourse debt as a general obligation or liability of the Company. Although the Company does not have any direct or general liability in connection with the non-recourse debt apart from the security granted, the Company is directly and generally liable and responsible for certain representations, warranties, and covenants made to the 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 are viewed by such industry as being consistent with non-recourse discount financing obligations. Accordingly, as there are no financial covenants or ratios imposed on the Company in connection with the non-recourse debt, the Company has determined that there are no material covenants with respect to the non-recourse debt that warrant footnote disclosure. Future minimum payments of non-recourse debt are as follows (in thousands): Principal Interest Total Year ending December 31, 2023 $ 1,012 $ 25 $ 1,037 2024 172 1 173 $ 1,184 $ 26 $ 1,210 The non-recourse debt balance represents the remaining portion of half of a $9.2 million non-recourse promissory note executed on May 20, 2019. The non-recourse promissory note was split evenly between the Fund and its affiliate, ATEL 15, LLC, and was used to pay off the senior long-term debt. The non-recourse promissory note is to be serviced by the cash flows generated under a renewed bareboat charter. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2022 | |
Commitments [Abstract] | |
Commitments and Contingencies | 8. Commitments: At December 31, 2022, there were no commitments to purchase lease assets and fund investments in notes receivable. |
Guarantees
Guarantees | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 | |
Members' Capital [Abstract] | |
Members' Capital | 10. Members’ capital: A total of 8,246,919 Units were issued and outstanding at December 31, 2022 and 2021, inclusive of the 50 Units issued to the initial Member (Managing Member). The Fund was authorized to issue up to 15,000,000 Units in addition to the Units issued to the initial Member. The Company has the right, exercisable at the Managing Member’s discretion, but not the obligation, to repurchase Units of a Unitholder who ceases to be a U.S. Citizen, for a price equal to 100% of the holder’s capital account. The Company is otherwise permitted, but not required, to repurchase Units upon a holder’s request. The repurchase of Fund units is made in accordance with Section 13 of the Amended and Restated Limited Liability Company Operating Agreement. The repurchase would be at the discretion of the Managing Member on terms it determines to be appropriate under given circumstances, in the event that the Managing Member deems such repurchase to be in the best interest of the Company; provided, the Company is never required to repurchase any Units. Upon the repurchase of any Units by the Fund, the tendered Units are cancelled. Units repurchased in prior periods were repurchased at amounts representing the original investment less cumulative distributions made to the Unitholder with respect to the Units. All Units repurchased during a quarter are deemed to be repurchased effective the last day of the preceding quarter, and are not deemed to be outstanding during, or entitled to allocations of net income, net loss or distributions for the quarter in which such repurchase occurs. The Fund’s net income or net losses are to be allocated 100% to the Members. From the commencement of the Fund until the initial closing date, net income and net loss were allocated 99% to the Managing Member and 1% to the initial Other 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 2009. Distributions to the Other Members for the years ended December 31, 2022 and 2021 were as follows (in thousands except Units and per Unit data): 2022 2021 Distributions declared $ 1,402 $ 907 Weighted average number of Units outstanding 8,246,919 8,246,919 Weighted average distributions per Unit $ 0.17 $ 0.11 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
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. Fair value measurements and disclosures are based on a fair value hierarchy as determined by significant inputs used to measure fair value. The three levels of inputs within the fair value hierarchy are defined as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, generally on a national exchange. Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuations in which all significant inputs are observable in the market. Level 3 – Valuation is modeled using significant inputs that are unobservable in the market. These unobservable inputs reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. The Company’s valuation policy is determined by members of the Asset Management, Credit and Accounting departments. Whenever possible, the policy is to obtain quoted market prices in active markets to estimate fair values for recognition and disclosure purposes. Where quoted market prices in active markets are not available, fair values are estimated using discounted cash flow analyses, broker quotes, information from third party remarketing agents, third party appraisals of collateral and/or other valuation techniques. These techniques are significantly affected by certain of the Company’s assumptions, including discount rates and estimates of future cash flows. Potential taxes and other transaction costs are not considered in estimating fair values. As the Company is responsible for determining fair value, an analysis is performed on prices obtained from third parties. Such analysis is performed by asset management and credit department personnel who are familiar with the Company’s investments in equipment, notes receivable and equity securities of venture companies. The analysis may include a periodic review of price fluctuations and validation of numbers obtained from a specific third party by reference to multiple representative sources. At December 31, 2022 and 2021, the Company’s investment in equity securities were measured on a recurring basis. At December 31, 2021, the Company’s warrants were also measured on a recurring basis. In addition, certain equipment deemed impaired were measured at fair value on a non-recurring basis as of December 31, 2022 and 2021. Such fair value adjustments utilized the following methodology: Warrants (recurring) Warrants owned by the Company are not registered for public sale, but are considered derivatives and are carried on the balance sheet at an estimated fair value at the end of the period. The valuation of the warrants was determined using a Black-Scholes formulation of value based upon the stock price(s), the exercise price(s), the volatility of comparable venture companies, time to maturity, and a risk free interest rate for the term(s) of the warrant exercise(s). At December 31, 2022, all of the Fund’s warrants were expired. At December 31, 2021, the calculated fair value of the Fund’s warrants portfolio totaled thousand. The fair value of warrants that were accounted for on a recurring basis for the years ended December 31, 2022 and 2021 and classified as Level 3 are as follows (in thousands): 2022 2021 Fair value of warrants at beginning of the year $ 3 $ 31 Unrealized loss on fair value adjustment for warrants (3) (28) Fair value of warrants at end of the year $ — $ 3 Investment in equity securities (recurring) The Company’s equity securities registered for public sale with readily determinable fair values are measured at fair value with any changes in fair value recognized in the Company’s results of operations. As of December 31, 2022 and 2021, the fair value of such equity securities totaled $3 thousand and $8 thousand, respectively. The fair value of equity securities that were accounted for on a recurring basis for the year ended December 31, 2022 and 2021, and classified as Level 1 are as follows (in thousands): 2022 2021 Fair value of securities at beginning of the year $ 8 $ 238 Securities sold — (226) Unrealized loss on fair value of securities (5) (4) Fair value of investment securities at end of year $ 3 $ 8 Impaired lease and off-lease equipment (non-recurring) During 2021, the Company recorded fair value adjustments totaling $671 thousand to reduce the cost basis of certain transportation, rail and research equipment. There was no impairment loss on equipment during 2022. Level 1 Level 2 Level 3 December 31, Estimated Estimated Estimated 2022 Fair Value Fair Value Fair Value Assets measured at fair value on a non-recurring basis (in thousands): Impaired lease and off-lease equipment $ 8 $ — $ — $ 8 Level 1 Level 2 Level 3 December 31, Estimated Estimated Estimated 2021 Fair Value Fair Value Fair Value Assets measured at fair value on a non-recurring basis (in thousands): Impaired lease and off-lease equipment $ 148 $ — $ — $ 148 Under the Fair Value Measurements Topic of the FASB Accounting Standards Codification, the fair value of impaired lease assets were classified within Level 3 of the valuation hierarchy as the data sources utilized for the valuation of such assets reflect significant inputs that are unobservable in the market. Such valuation utilizes a market approach technique and uses inputs that reflect the sales price of similar assets sold by affiliates and/or information from third party remarketing agents not readily available in the market. The following tables summarize the valuation techniques and significant unobservable inputs used for the Company’s recurring and non-recurring fair value calculation/adjustments categorized as Level 3 in the fair value hierarchy at December 31, 2022 and 2021: December 31, 2022 Valuation Valuation Unobservable Range of Input Values Name Frequency Technique Inputs (Weighted Average) Lease and off-lease equipment Non-recurring Market Approach Third Party Agents' Pricing $0 - $8,000 Quotes - per equipment (total of $8,000) Equipment Condition Poor to Average December 31, 2021 Valuation Valuation Unobservable Range of Input Values Name Frequency Technique Inputs (Weighted Average) Warrants Recurring Black-Scholes formulation Stock price $21.93 - $21.93 ($21.93) Exercise price $38.64 - $38.64 ($38.64) Time to maturity (in years) 1.00 - 1.00 (1.00) Risk-free interest rate 0.42% - 0.42% (0.42%) Annualized volatility 167.22% - 167.22% (167.22%) Lease and off-lease equipment Non-recurring Market Approach Third Party Agents' Pricing $0 - $148,000 Quotes - per equipment (total of $148,000) Equipment Condition Poor to Average The following disclosure of the estimated fair value of financial instruments is made in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification. Fair value estimates, methods and assumptions, set forth below for the Company’s financial instruments, are made solely to comply with the requirements of the Financial Instruments Topic and should be read in conjunction with the Company’s financial statements and related notes. The Company 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 equity securities The Company’s equity securities registered for public sale with readily determinable fair value are carried at fair value. These investment in equity securities are valued based on their quoted market price. Non-recourse debt The fair value of the Company’s non-recourse and senior 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, 2022 and 2021 (in thousands): Fair Value Measurements at December 31, 2022 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 962 $ 962 $ — $ — $ 962 Investment in securities 3 3 — — 3 Financial liabilities: Non-recourse debt 1,184 — — 1,166 1,166 Fair Value Measurements at December 31, 2021 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 1,748 $ 1,748 $ — $ — $ 1,748 Investment in securities 8 8 — — 8 Warrants, fair value 3 — — 3 3 Financial liabilities: Non-recourse debt 2,163 — — 2,197 2,197 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation: The accompanying balance sheets as of December 31, 2022 and 2021, 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, 2022, up until the issuance of the financial statements. No events were noted which would require additional disclosure in the footnotes to the financial statements. |
Cash and Cash Equivalents | Cash and cash equivalents: Cash and cash equivalents include cash in banks and cash equivalent investments such as U.S. Treasury instruments with original and/or purchased maturities of ninety days or less. |
Use of Estimates | Use of Estimates: The preparation of 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 on accounts receivable. |
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. For the years ended December 31, 2022 and 2021, and as of December 31, 2022 and 2021, all of the Company’s current operating revenues and long-lived assets relate to customers domiciled in the United States. |
Accounts Receivable | Accounts receivable: Accounts receivable represent the amounts billed under operating lease contracts which are currently due to the Company. Allowances for doubtful accounts are typically established based on historical charge off and collection experience and the collectability of specifically identified lessees 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. |
Investment in Securities | Investment securities: From time to time, the Company may receive the right to purchase equity securities of its borrowers or receive warrants in connection with its lending arrangements. Investment in equity securities The Company’s equity securities registered for public sale with readily determinable fair values are measured at fair value with any changes in fair value recognized in the Company’s results of operations. The Company’s equity securities that do not have readily determinable fair values are measured at cost minus impairment and adjusted for changes in observable prices. Factors considered by the Managing Member in determining fair value include, but are not limited to, available financial information, the issuer’s ability to meet its current obligations and indications of the issuer’s subsequent ability to raise capital. As of December 31, 2022 and 2021, equity securities totaled $128 thousand and $133 thousand, respectively. Such amounts included equity securities which do not have readily determinable market value totaling $125 thousand at both December 31, 2022 and 2021. During the years ended December 31, 2022 and 2021, the Company recorded unrealized losses of $5 thousand and $4 thousand, respectively, on equity securities with readily determinable fair values. There were no unrealized gains and losses recorded on equity securities that do not have readily determinable fair values during 2022. By comparison, unrealized gains of $58 thousand were recorded on such securities during 2021. Cumulative adjustments totaling $186 thousand have been recorded to reduce the value of equity securities that do not have readily determinable fair values held at December 31, 2022 based on changes in observable prices. There were no securities sold during the ended December 31, 2022. During the year ended December 31, 2021, the Company sold investment securities valued at approximately $226 thousand and realized a $13 thousand gain on the sales. 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. As of December 31, 2022, all of the Fund’s warrants have expired. At December 31, 2021, the estimated fair value of the Company’s portfolio of warrants totaled $3 thousand. |
Credit Risk | Credit risk: Financial instruments that potentially subject the Company to concentrations of credit risk include cash and cash equivalents, operating lease receivables, and accounts receivable. The Company places the majority of its cash deposits in 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 receivable represent amounts due from lessees in various industries, related to equipment on operating leases. |
Equipment on Operating Leases and Related Revenue Recognition | Equipment on operating leases and related revenue recognition: Equipment subject to operating leases is stated at cost. Depreciation is being recognized on a straight-line method over the terms of the related leases to the equipment’s estimated residual values. Off-lease equipment is generally not subject to depreciation. The Company depreciates all lease assets, in accordance with guidelines consistent with Accounting Standards Codification (“ASC”) 360-10-35-3, over the periods of the lease terms contained in each asset’s respective lease contract to the estimated residual value at the end of the lease contract. All lease assets are purchased only concurrent with the execution of a lease commitment by the lessee. Thus, the original depreciation period corresponds with the term of the original lease. Once the term of an original lease contract is completed, the subject property is typically sold to the existing user, re-leased to the existing user, or, when off-lease, is held for sale. Assets which are re-leased continue to be depreciated using the terms of the new lease agreements and the estimated residual values at the end of the new lease terms, adjusted downward as necessary. Assets classified as held-for-sale are carried at the lower of carrying amount, or the fair value less cost to sell (ASC 360-10-35-43). The Company does not use the equipment held in its portfolio, but holds it solely for lease and ultimate sale. In the course of marketing equipment that has come off-lease, management may determine at some point that re-leasing the assets may provide a superior return for investors and would then execute another lease. Upon entering into a new lease contract, management will estimate the residual value once again and resume depreciation. If, and when, the Company, at any time, determines that depreciation in value may have occurred with respect to an asset held-for-sale, the Company would review the value to determine whether a material reduction in value had occurred and recognize any appropriate impairment. All lease assets, including off-lease assets, are subject to the Company’s quarterly impairment analysis, as described below. Maintenance costs associated with the Fund’s portfolio of leased assets are expensed as incurred. Major additions and betterments are capitalized. Operating lease revenue is recognized on a straight-line basis over the term of the underlying leases. The initial lease terms will vary as to the type of equipment subject to the leases, the needs of the lessees and the terms to be negotiated, but initial leases are generally on terms from 36 to 120 months. The difference between rent received and rental revenue recognized is recorded as unearned operating lease income on the balance sheet. Operating leases are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management considers the equipment underlying the lease contracts for impairment and periodically reviews the credit worthiness of all operating lessees with payments outstanding less than 90 days . Based upon management’s judgment, the related operating leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, revenues are recognized on a cash basis. Provisions for doubtful accounts relating to operating leases are included in lease income in the Company’s financial statements. |
Initial Direct Costs | Initial direct costs: Incremental costs of a lease that would not have been incurred if the lease had not been obtained are capitalized and amortized over the lease term. All other costs associated with the execution of the Company’s leases are expensed as incurred. |
Asset Valuation | Asset valuation: Recorded values of the Company’s leased asset portfolio are reviewed each quarter to confirm the reasonableness of established residual values and to determine whether there is indication that an asset impairment might have taken place. The Company uses a variety of sources and considers many factors in evaluating whether the respective book values of its assets are appropriate. In addition, the Company may direct a residual value review at any time if it becomes aware of issues regarding the ability of a lessee to continue to make payments on its lease contract. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than 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. |
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, 2022 and 2021, the related provision for state income taxes was approximately $114 thousand and $121 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, 2022 and 2021 as follows (in thousands): 2022 2021 Financial statement basis of net assets $ 6,550 $ 7,975 Tax basis of net assets (unaudited) 17,068 18,519 Difference $ (10,518) $ (10,544) 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 loss reported in these financial statements to the income (loss) reported on the Company’s federal tax return (unaudited) for the years ended December 31, 2022 and 2021 (in thousands): 2022 2021 Net loss per financial statements $ 91 $ (1,433) Tax adjustments (unaudited): Adjustment to depreciation expense (229) 197 Provision for losses and doubtful accounts (4) (1) Adjustments to (expenses) revenues 561 (75) Adjustments to gain on sales of assets (361) 1,699 Other 6 703 Income per federal tax return (unaudited) $ 64 $ 1,090 |
Per Unit Data | Per Unit data: Net income (loss) and distributions per Unit are based upon the weighted average number of Other Members Units outstanding during the year. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 and 2021 as follows (in thousands): 2022 2021 Financial statement basis of net assets $ 6,550 $ 7,975 Tax basis of net assets (unaudited) 17,068 18,519 Difference $ (10,518) $ (10,544) |
Reconciliation of Net Income (Loss) Reported in Financial Statements and Federal Tax Return | The following reconciles the net loss reported in these financial statements to the income (loss) reported on the Company’s federal tax return (unaudited) for the years ended December 31, 2022 and 2021 (in thousands): 2022 2021 Net loss per financial statements $ 91 $ (1,433) Tax adjustments (unaudited): Adjustment to depreciation expense (229) 197 Provision for losses and doubtful accounts (4) (1) Adjustments to (expenses) revenues 561 (75) Adjustments to gain on sales of assets (361) 1,699 Other 6 703 Income per federal tax return (unaudited) $ 64 $ 1,090 |
Concentration of Credit Risk _2
Concentration of Credit Risk and Major Customers (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Concentration of Credit Risk and Major Customers [Abstract] | |
Schedule of Equipment Leased | As of December 31, 2022 and 2021, there were concentrations (greater than or equal to 10% as a percentage of total equipment cost) of equipment leased to lessees and/or financed for borrowers in certain industries as follows: Percentage of Total Equipment Cost Industry 2022 2021 Oil/Gas field services 83 % 81 % Transportation 15 % 16 % |
Schedule of Major Customers Credit Risk Concentration | During 2022 and 2021, certain lessees and/or financial borrowers generated significant portions (defined as greater than or equal to 10%) of the Company’s total leasing and lending revenues, excluding gains or losses on disposition of assets, as follows: Percentage of Total Leasing and Lending Revenues Lessee Type of Equipment 2022 2021 Halliburton Overseas Limited Marine vessel 48 % 43 % Finger Lakes Railway Corp Transportation, rail 13 % * GE Aviation Manufacturing 10 % 22 % Danisco US Inc. Transportation, rail 10 % * * Less than 10% |
Investment in equipment and l_2
Investment in equipment and leases, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investment in equipment and leases, net [Abstract] | |
Investment in Leases | The Company’s investment in equipment and leases consists of the following (in thousands): Depreciation/ Amortization Balance Reclassifications Expense or Balance December 31, Additions and Amortization December 31, 2021 Dispositions of Leases 2022 Equipment under operating leases, net $ 7,852 $ (135) $ (1,408) $ 6,309 Assets held for sale or lease, net 559 (70) (2) 487 Total $ 8,411 $ (205) $ (1,410) $ 6,796 |
Property On Operating Leases | Property under operating leases consists of the following (in thousands): Balance Balance December 31, Reclassifications December 31, 2021 Additions or Disposition 2022 Marine vessel $ 19,410 $ — $ — $ 19,410 Transportation, rail 4,032 — (552) 3,480 Transportation 208 — — 208 Manufacturing 3,119 — (2,022) 1,097 Materials handling 125 — (4) 121 Construction 582 — — 582 Agriculture 542 — (263) 279 28,018 — (2,841) 25,177 Less accumulated depreciation (20,166) (1,408) 2,706 (18,868) Total $ 7,852 $ (1,408) $ (135) $ 6,309 |
Future Minimum Lease Payments Receivable | At December 31, 2022, the aggregate amounts of future minimum lease payments receivable are as follows (in thousands): Operating Leases Year ending December 31, 2023 $ 1,399 2024 422 2025 209 2026 52 $ 2,082 |
Schedule of Useful Lives of Lease Assets | The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of December 31, 2022 and 2021, the respective useful lives of each category of lease assets in the Company’s portfolio are as follows (in years): Equipment category Useful Life Transportation, rail 35 - 50 Marine vessel 20 - 30 Manufacturing 10 -15 Agriculture 7 - 10 Construction 7 - 10 Materials handling 7 - 10 Transportation, trucks and trailers 7 - 10 |
Allowance for Doubtful Accoun_2
Allowance for Doubtful Accounts (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Allowance for Doubtful Accounts [Abstract] | |
Activity in Allowance for Doubtful Accounts | The Company’s allowance for doubtful accounts are as follows (in thousands): Allowance for Doubtful Accounts Operating Leases Balance December 31, 2020 $ 5 Reversal of provision for doubtful accounts (1) Balance December 31, 2021 $ 4 Balance December 31, 2021 $ 4 Reversal of provision for doubtful accounts (4) Balance December 31, 2022 $ — |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Managing Member and/or Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement | Pursuant to the Operating Agreement, the Managing Member and/or affiliates earned fees and billed for reimbursements during the years ended December 31, 2022 and 2021 as follows (in thousands): 2022 2021 Administrative costs reimbursed to Managing Member and/or affiliates $ 335 $ 393 Asset management fees to Managing Member 91 102 $ 426 $ 495 |
Non-Recourse Debt (Tables)
Non-Recourse Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Non-Recourse Debt [Abstract] | |
Future Minimum Payments of Non-Recourse Debt | Future minimum payments of non-recourse debt are as follows (in thousands): Principal Interest Total Year ending December 31, 2023 $ 1,012 $ 25 $ 1,037 2024 172 1 173 $ 1,184 $ 26 $ 1,210 |
Members' Capital (Tables)
Members' Capital (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Members' Capital [Abstract] | |
Distributions to Other Members | Distributions to the Other Members for the years ended December 31, 2022 and 2021 were as follows (in thousands except Units and per Unit data): 2022 2021 Distributions declared $ 1,402 $ 907 Weighted average number of Units outstanding 8,246,919 8,246,919 Weighted average distributions per Unit $ 0.17 $ 0.11 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurements [Abstract] | |
Fair Value, Warrants Measured on Recurring Basis | The fair value of warrants that were accounted for on a recurring basis for the years ended December 31, 2022 and 2021 and classified as Level 3 are as follows (in thousands): 2022 2021 Fair value of warrants at beginning of the year $ 3 $ 31 Unrealized loss on fair value adjustment for warrants (3) (28) Fair value of warrants at end of the year $ — $ 3 |
Fair Value, Investment Securities Measured on Recurring Basis | The Company’s equity securities registered for public sale with readily determinable fair values are measured at fair value with any changes in fair value recognized in the Company’s results of operations. As of December 31, 2022 and 2021, the fair value of such equity securities totaled $3 thousand and $8 thousand, respectively. The fair value of equity securities that were accounted for on a recurring basis for the year ended December 31, 2022 and 2021, and classified as Level 1 are as follows (in thousands): 2022 2021 Fair value of securities at beginning of the year $ 8 $ 238 Securities sold — (226) Unrealized loss on fair value of securities (5) (4) Fair value of investment securities at end of year $ 3 $ 8 |
Fair Value Measurement of Impaired Assets at Fair Value on Non-Recurring Basis | During 2021, the Company recorded fair value adjustments totaling $671 thousand to reduce the cost basis of certain transportation, rail and research equipment. There was no impairment loss on equipment during 2022. Level 1 Level 2 Level 3 December 31, Estimated Estimated Estimated 2022 Fair Value Fair Value Fair Value Assets measured at fair value on a non-recurring basis (in thousands): Impaired lease and off-lease equipment $ 8 $ — $ — $ 8 Level 1 Level 2 Level 3 December 31, Estimated Estimated Estimated 2021 Fair Value Fair Value Fair Value Assets measured at fair value on a non-recurring basis (in thousands): Impaired lease and off-lease equipment $ 148 $ — $ — $ 148 |
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, 2022 and 2021: December 31, 2022 Valuation Valuation Unobservable Range of Input Values Name Frequency Technique Inputs (Weighted Average) Lease and off-lease equipment Non-recurring Market Approach Third Party Agents' Pricing $0 - $8,000 Quotes - per equipment (total of $8,000) Equipment Condition Poor to Average December 31, 2021 Valuation Valuation Unobservable Range of Input Values Name Frequency Technique Inputs (Weighted Average) Warrants Recurring Black-Scholes formulation Stock price $21.93 - $21.93 ($21.93) Exercise price $38.64 - $38.64 ($38.64) Time to maturity (in years) 1.00 - 1.00 (1.00) Risk-free interest rate 0.42% - 0.42% (0.42%) Annualized volatility 167.22% - 167.22% (167.22%) Lease and off-lease equipment Non-recurring Market Approach Third Party Agents' Pricing $0 - $148,000 Quotes - per equipment (total of $148,000) Equipment Condition Poor to Average |
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, 2022 and 2021 (in thousands): Fair Value Measurements at December 31, 2022 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 962 $ 962 $ — $ — $ 962 Investment in securities 3 3 — — 3 Financial liabilities: Non-recourse debt 1,184 — — 1,166 1,166 Fair Value Measurements at December 31, 2021 Carrying Value Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 1,748 $ 1,748 $ — $ — $ 1,748 Investment in securities 8 8 — — 8 Warrants, fair value 3 — — 3 3 Financial liabilities: Non-recourse debt 2,163 — — 2,197 2,197 |
Organization and Limited Liab_2
Organization and Limited Liability Company Matters (Narrative) (Details) - USD ($) | 12 Months Ended | 72 Months Ended | 195 Months Ended | ||||||
Dec. 02, 2009 | Oct. 08, 2009 | Dec. 31, 2022 | Oct. 06, 2017 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Feb. 12, 2010 | May 08, 2009 | |
Business formation date | Apr. 01, 2009 | ||||||||
Business formation State | California | ||||||||
Business activities, description | equipment financing and acquiring equipment to engage in equipment leasing and sales activities | ||||||||
Business termination date | Dec. 31, 2030 | ||||||||
Public offering of Limited Liability Company Units | 15,000,000 | ||||||||
Public offering of Limited Liability Company Units, price per unit | $ 10 | ||||||||
Sale of Limited Liability Company Units, number of units | 120,000 | ||||||||
Proceeds from sale of Limited Liability Company Units | $ 1,200,000 | ||||||||
Contributions received, net of rescissions | $ 83,500,000 | $ 83,500,000 | |||||||
Units outstanding | 8,246,919 | 8,246,919 | |||||||
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 | $ 7,500,000 | ||||||||
Other Members [Member] | |||||||||
Units issued | 8,246,919 | 8,246,919 | 8,246,919 | ||||||
Units outstanding | 8,246,919 | 8,246,919 | 8,246,919 | 8,246,919 | |||||
Initial Member [Member] | |||||||||
Contributions of capital | $ 500 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | |
Number of operating segments | segment | 1 | |
Number of reportable segments | segment | 1 | |
Investment in equity securities | $ 128,000 | $ 133,000 |
Unrealized (loss) gain on fair value adjustment for equity securities | (5,000) | 54,000 |
Investment securities without readily determinable market value, cumulative amount | 186,000 | |
Value of securities sold, but proceed not received | 226,000 | |
Gain (loss) on sale of investment in securities | 13,000 | |
Warrants, fair value | 0 | 3,000 |
Unrealized gain (loss) on fair value adjustment for warrants | $ (3,000) | (28,000) |
Equipment on operating leases, depreciation method | straight-line | |
Provision for franchise fees and state taxes | $ 114,000 | 121,000 |
Income tax examination, description | 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 | |
Proceeds from sales of investment securities | 239,000 | |
Securities with Readily Determinable Fair Values [Member] | ||
Unrealized (loss) gain on fair value adjustment for equity securities | $ (5,000) | (4,000) |
Securities without Readily Determinable Fair Values [Member] | ||
Investment in equity securities | 125,000 | 125,000 |
Unrealized (loss) gain on fair value adjustment for equity securities | 0 | $ 58,000 |
Minimum [Member] | ||
Required assets value of financial institutions for cash deposits | $ 10,000,000,000 | |
Operating leases, initial terms | 36 months | |
Operating leases, period for non-accrual status | 90 days | |
Maximum [Member] | ||
U.S. Treasury instruments maturity period | 90 days | |
Cash deposits, insured amount | $ 250,000 | |
Operating leases, initial terms | 120 months | |
Equipment and lessee 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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Summary of Significant Accounting Policies [Abstract] | |||
Financial statement basis of net assets | $ 6,550 | $ 7,975 | $ 10,382 |
Tax basis of net assets (unaudited) | 17,068 | 18,519 | |
Difference | $ (10,518) | $ (10,544) |
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, 2022 | Dec. 31, 2021 | |
Summary of Significant Accounting Policies [Abstract] | ||
Net income (loss) | $ 91 | $ (1,433) |
Adjustment to depreciation expense | (229) | 197 |
Provision for losses and doubtful accounts | (4) | (1) |
Adjustments to (expenses) revenues | 561 | (75) |
Adjustments to gain on sales of assets | (361) | 1,699 |
Other | 6 | 703 |
Income (loss) per federal tax return (unaudited) | $ 64 | $ 1,090 |
Concentration of Credit Risk _3
Concentration of Credit Risk and Major Customers (Schedule of Leasing and Lending Revenues) (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Natural Gas [Member] | Customer Concentration Risk [Member] | Equipment Cost [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentration risk | 83% | 81% |
Marine Vessel [Member] | Product Concentration Risk [Member] | Halliburton Overseas Limited [Member] | Sales Revenue, Net [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentration risk | 48% | 43% |
Transportation, Rail [Member] | Product Concentration Risk [Member] | Finger Lakes Railway Corporation [Member] | Sales Revenue, Net [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentration risk | 13% | |
Transportation, Rail [Member] | Product Concentration Risk [Member] | Danisco US incorporated [Member] | Sales Revenue, Net [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentration risk | 10% | |
Manufacturing [Member] | Product Concentration Risk [Member] | GE Aviation [Member] | Sales Revenue, Net [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentration risk | 10% | 22% |
Transportation [Member] | Customer Concentration Risk [Member] | Equipment Cost [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentration risk | 15% | 16% |
Investment in equipment and l_3
Investment in equipment and leases, net (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Impairment losses on equipment | $ 0 | $ 671,000 |
Depreciation of operating lease assets | $ 1,410,000 | $ 1,854,000 |
Average estimated residual value of assets on operating leases | 20% | 20% |
Operating leases in non-accrual status | $ 0 | $ 0 |
Operating Leases [Member] | ||
Depreciation of operating lease assets | 1,400,000 | 1,900,000 |
Additional depreciation recorded to reflect month-to-month extensions | $ 46,000 | $ 454,000 |
Investment in equipment and l_4
Investment in equipment and leases, net (Investment in Leases) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Lessor, Lease, Description [Line Items] | |
Balance December 31, 2021 | $ 8,411 |
Reclassifications/ Additions and Dispositions | (205) |
Depreciation/Amortization Expense or Amortization of Leases | (1,410) |
Balance September 30, 2022 | 6,796 |
Operating Leases [Member] | |
Lessor, Lease, Description [Line Items] | |
Balance December 31, 2021 | 7,852 |
Reclassifications/ Additions and Dispositions | (135) |
Depreciation/Amortization Expense or Amortization of Leases | (1,408) |
Balance September 30, 2022 | 6,309 |
Assets Held for Sale or Lease, Net [Member] | |
Lessor, Lease, Description [Line Items] | |
Balance December 31, 2021 | 559 |
Reclassifications/ Additions and Dispositions | (70) |
Depreciation/Amortization Expense or Amortization of Leases | (2) |
Balance September 30, 2022 | $ 487 |
Investment in equipment and l_5
Investment in equipment and leases, net (Property on Operating Leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Lessor, Lease, Description [Line Items] | ||
Property on operating leases, gross | $ 25,177 | $ 28,018 |
Less accumulated depreciation | (18,868) | (20,166) |
Property on operating leases, net | 6,309 | 7,852 |
Additions, gross | 0 | |
Additions, less accumulated depreciation | (1,408) | |
Additions, net | (1,408) | |
Reclassifications or dispositions, gross | (2,841) | |
Reclassifications or dispositions, less accumulated depreciation | 2,706 | |
Reclassifications or dispositions, net | (135) | |
Marine Vessel [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Property on operating leases, gross | 19,410 | 19,410 |
Additions, gross | 0 | |
Transportation, Rail [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Property on operating leases, gross | 3,480 | 4,032 |
Additions, gross | 0 | |
Reclassifications or dispositions, gross | (552) | |
Transportation [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Property on operating leases, gross | 208 | 208 |
Additions, gross | 0 | |
Reclassifications or dispositions, gross | 0 | |
Manufacturing [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Property on operating leases, gross | 1,097 | 3,119 |
Additions, gross | 0 | |
Reclassifications or dispositions, gross | (2,022) | |
Materials Handling [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Property on operating leases, gross | 121 | 125 |
Additions, gross | 0 | |
Reclassifications or dispositions, gross | (4) | |
Construction [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Property on operating leases, gross | 582 | 582 |
Additions, gross | 0 | |
Reclassifications or dispositions, gross | 0 | |
Agriculture [Member] | ||
Lessor, Lease, Description [Line Items] | ||
Property on operating leases, gross | 279 | $ 542 |
Additions, gross | 0 | |
Reclassifications or dispositions, gross | $ (263) |
Investment in equipment and l_6
Investment in equipment and leases, net (Future Minimum Lease Payments Receivable) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Operating Leases | |
Year ending December 31, 2023 | $ 1,399 |
2024 | 422 |
2025 | 209 |
2026 | 52 |
Operating leases, future minimum payments receivable, total | $ 2,082 |
Investment in equipment and l_7
Investment in equipment and leases, net (Schedule of Useful Lives of Lease Assets) (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Transportation, Rail [Member] | Minimum [Member] | |
Lessor, Lease, Description [Line Items] | |
Useful lives of lease assets | 35 years |
Transportation, Rail [Member] | Maximum [Member] | |
Lessor, Lease, Description [Line Items] | |
Useful lives of lease assets | 50 years |
Marine Vessel [Member] | Minimum [Member] | |
Lessor, Lease, Description [Line Items] | |
Useful lives of lease assets | 20 years |
Marine Vessel [Member] | Maximum [Member] | |
Lessor, Lease, Description [Line Items] | |
Useful lives of lease assets | 30 years |
Manufacturing [Member] | Minimum [Member] | |
Lessor, Lease, Description [Line Items] | |
Useful lives of lease assets | 10 years |
Manufacturing [Member] | Maximum [Member] | |
Lessor, Lease, Description [Line Items] | |
Useful lives of lease assets | 15 years |
Agriculture [Member] | Minimum [Member] | |
Lessor, Lease, Description [Line Items] | |
Useful lives of lease assets | 7 years |
Agriculture [Member] | Maximum [Member] | |
Lessor, Lease, Description [Line Items] | |
Useful lives of lease assets | 10 years |
Construction [Member] | Minimum [Member] | |
Lessor, Lease, Description [Line Items] | |
Useful lives of lease assets | 7 years |
Construction [Member] | Maximum [Member] | |
Lessor, Lease, Description [Line Items] | |
Useful lives of lease assets | 10 years |
Materials Handling [Member] | Minimum [Member] | |
Lessor, Lease, Description [Line Items] | |
Useful lives of lease assets | 7 years |
Materials Handling [Member] | Maximum [Member] | |
Lessor, Lease, Description [Line Items] | |
Useful lives of lease assets | 10 years |
Transportation [Member] | Minimum [Member] | |
Lessor, Lease, Description [Line Items] | |
Useful lives of lease assets | 7 years |
Transportation [Member] | Maximum [Member] | |
Lessor, Lease, Description [Line Items] | |
Useful lives of lease assets | 10 years |
Allowance for Doubtful Accoun_3
Allowance for Doubtful Accounts (Activity in Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Reversal of provision for doubtful accounts | $ (4) | $ (1) |
Notes Receivable | 0 | 0 |
Allowance For Doubtful Accounts [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning Balance | 4 | 5 |
Reversal of provision for doubtful accounts | (4) | (1) |
Ending Balance | $ 0 | $ 4 |
Related Party Transactions (Man
Related Party Transactions (Managing Member and Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transactions [Abstract] | ||
Administrative costs reimbursed to Managing Member and/or affiliates | $ 335 | $ 393 |
Asset management fees to Managing Member | 91 | 102 |
Related party transaction, total | $ 426 | $ 495 |
Non-Recourse Debt (Narrative) (
Non-Recourse Debt (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | May 20, 2019 | |
Debt Instrument [Line Items] | |||
Total non-recourse debt | $ 1,184 | $ 2,163 | |
Non-Recourse Debt [Member] | |||
Debt Instrument [Line Items] | |||
Fixed interest rate on note | 3.40% | ||
Gross operating lease rentals and future payments on direct financing leases | $ 1,200 | ||
Carrying value of pledged assets | $ 5,300 | ||
Note maturity date, description | The note matures in 2024. | ||
Atel 15, LLC [Member] | |||
Debt Instrument [Line Items] | |||
Non-recourse promissory note | $ 9,200 |
Non-Recourse Debt (Future Minim
Non-Recourse Debt (Future Minimum Payments of Non-Recourse Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Principal | ||
Year ending December 31, 2023 | $ 1,012 | |
2024 | 172 | |
Non-recourse debt | 1,184 | $ 2,163 |
Interest | ||
Year ending December 31, 2023 | 25 | |
2024 | 1 | |
Long-term debt interest, total | 26 | |
Total | ||
Year ending December 31, 2023 | 1,037 | |
2024 | 173 | |
Long-term debt principal and interest, total | $ 1,210 |
Commitments (Narrative) (Detail
Commitments (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Commitments [Abstract] | |
Commitments to purchase lease assets and fund investments in notes receivable | $ 0 |
Members' Capital (Narrative) (D
Members' Capital (Narrative) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Members Capital Account [Line Items] | |||
Members capital account, units outstanding | 8,246,919 | ||
Potential repurchase price of Units as percentage of holder's capital account | 100% | ||
Allocation of net income or net losses | 100% | ||
Managing Member [Member] | |||
Other Members Capital Account [Line Items] | |||
Operating company net income loss allocation percentage from commencement until initial closing date | 99% | ||
Operating company net income loss allocation percentage commencing with initial closing date | 7.50% | ||
Percentage of fund distribution | 7.50% | ||
Other Members [Member] | |||
Other Members Capital Account [Line Items] | |||
Members capital account, units issued | 8,246,919 | 8,246,919 | |
Members capital account, units outstanding | 8,246,919 | 8,246,919 | 8,246,919 |
Operating company net income loss allocation percentage from commencement until initial closing date | 1% | ||
Operating company net income loss allocation percentage commencing with initial closing date | 92.50% | ||
Percentage of fund distribution | 92.50% | ||
Maximum [Member] | Other Members [Member] | |||
Other Members Capital Account [Line Items] | |||
Members capital account, units authorized | 15,000,000 | 15,000,000 | |
Maximum [Member] | Initial Member [Member] | |||
Other Members Capital Account [Line Items] | |||
Members capital account, units issued | 50 | 50 |
Members' Capital (Distributions
Members' Capital (Distributions to Other Members) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||
Distributions declared | $ 1,402 | $ 907 |
Weighted average number of Units outstanding | 8,246,919 | 8,246,919 |
Weighted average distributions per Unit | $ 0.17 | $ 0.11 |
Other Members [Member] | ||
Distribution Made to Limited Liability Company (LLC) Member [Line Items] | ||
Distributions declared | $ 1,402 | $ 907 |
Weighted average distributions per Unit | $ 0.17 | $ 0.11 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Investment in equity securities | $ 3,000 | $ 8,000 |
Warrants, fair value | 0 | 3,000 |
Impairment losses on equipment | 0 | 671,000 |
Securities with Readily Determinable Fair Values [Member] | ||
Investment in equity securities | $ 3,000 | $ 8,000 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value, Warrants Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair value of warrants at beginning of year | $ 3 | |
Unrealized loss on fair value adjustment for warrants | 3 | $ 28 |
Fair value of warrants at end of year | 0 | 3 |
Level 3 Estimated Fair Value [Member] | ||
Fair value of warrants at beginning of year | 3 | 31 |
Unrealized loss on fair value adjustment for warrants | 3 | 28 |
Fair value of warrants at end of year | $ 3 | $ 3 |
Fair Value Measurements (Fair_2
Fair Value Measurements (Fair Value, Investment Securities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair value of securities at beginning of period | $ 8 | |
Unrealized loss (gain) on fair value adjustment for equity securities | 5 | $ (54) |
Fair value of investment securities at end of period | 3 | 8 |
Level 1 Estimated Fair Value [Member] | ||
Fair value of securities at beginning of period | 8 | 238 |
Securities sold | 0 | (226) |
Unrealized loss (gain) on fair value adjustment for equity securities | (5) | (4) |
Fair value of investment securities at end of period | $ 3 | $ 8 |
Fair Value Measurements (Fair_3
Fair Value Measurements (Fair Value Measurement of Impaired Assets at Fair Value on Non-Recurring Basis) (Details) - Nonrecurring [Member] - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired lease and off-lease equipment | $ 8 | $ 148 |
Level 1 Estimated Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired lease and off-lease equipment | 0 | 0 |
Level 2 Estimated Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired lease and off-lease equipment | 0 | 0 |
Level 3 Estimated Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired lease and off-lease equipment | $ 8 | $ 148 |
Fair Value Measurements (Summar
Fair Value Measurements (Summary of Valuation Techniques and Significant Unobservable Inputs Used) (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Nonrecurring [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired lease and off-lease equipment | $ 8,000 | $ 148,000 |
Level 3 Estimated Fair Value [Member] | Nonrecurring [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired lease and off-lease equipment | 8,000 | 148,000 |
Level 3 Estimated Fair Value [Member] | Nonrecurring [Member] | Impaired Off-Lease Equipment [Member] | Market Approach Valuation Technique [Member] | Measurement Inputs, Third Party Agents' Estimate of the Value of Collateral [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired lease and off-lease equipment | 8,000 | $ 148,000 |
Level 3 Estimated Fair Value [Member] | Minimum [Member] | Recurring [Member] | Warrant [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 | 21.93 | |
Level 3 Estimated Fair Value [Member] | Minimum [Member] | Recurring [Member] | Warrant [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 | 1 | |
Level 3 Estimated Fair Value [Member] | Minimum [Member] | Recurring [Member] | Warrant [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 | 0.0042 | |
Level 3 Estimated Fair Value [Member] | Minimum [Member] | Recurring [Member] | Warrant [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 | 1.6722 | |
Level 3 Estimated Fair Value [Member] | Minimum [Member] | Recurring [Member] | Impaired Off-Lease Equipment [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 | |
Level 3 Estimated Fair Value [Member] | Minimum [Member] | Nonrecurring [Member] | Impaired Off-Lease Equipment [Member] | Market Approach Valuation Technique [Member] | Measurement Inputs, Third Party Agents' Estimate of the Value of Collateral [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired lease and off-lease equipment | 0 | $ 0 |
Level 3 Estimated Fair Value [Member] | Maximum [Member] | Recurring [Member] | Warrant [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 | 21.93 | |
Level 3 Estimated Fair Value [Member] | Maximum [Member] | Recurring [Member] | Warrant [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 | 1 | |
Level 3 Estimated Fair Value [Member] | Maximum [Member] | Recurring [Member] | Warrant [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 | 0.0042 | |
Level 3 Estimated Fair Value [Member] | Maximum [Member] | Recurring [Member] | Warrant [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 | 1.6722 | |
Level 3 Estimated Fair Value [Member] | Maximum [Member] | Recurring [Member] | Impaired Off-Lease Equipment [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 | |
Level 3 Estimated Fair Value [Member] | Maximum [Member] | Nonrecurring [Member] | Impaired Off-Lease Equipment [Member] | Market Approach Valuation Technique [Member] | Measurement Inputs, Third Party Agents' Estimate of the Value of Collateral [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired lease and off-lease equipment | $ 8,000 | $ 148,000 |
Level 3 Estimated Fair Value [Member] | Weighted Average [Member] | Recurring [Member] | Warrant [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 | 21.93 | |
Level 3 Estimated Fair Value [Member] | Weighted Average [Member] | Recurring [Member] | Warrant [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 | |
Level 3 Estimated Fair Value [Member] | Weighted Average [Member] | Recurring [Member] | Warrant [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 | 1 | |
Level 3 Estimated Fair Value [Member] | Weighted Average [Member] | Recurring [Member] | Warrant [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 | 0.0042 | |
Level 3 Estimated Fair Value [Member] | Weighted Average [Member] | Recurring [Member] | Warrant [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 | 1.6722 |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Financial assets: | |||
Cash and cash equivalents | $ 962 | $ 1,748 | |
Investment in equity securities | 3 | 8 | |
Warrants, fair value | 0 | 3 | |
Financial liabilities: | |||
Non-recourse debt | 1,166 | 2,197 | |
Level 1 Estimated Fair Value [Member] | |||
Financial assets: | |||
Cash and cash equivalents | 962 | 1,748 | |
Investment in equity securities | 3 | 8 | $ 238 |
Warrants, fair value | 0 | ||
Financial liabilities: | |||
Non-recourse debt | 0 | 0 | |
Level 2 Estimated Fair Value [Member] | |||
Financial assets: | |||
Cash and cash equivalents | 0 | 0 | |
Investment in equity securities | 0 | 0 | |
Warrants, fair value | 0 | ||
Financial liabilities: | |||
Non-recourse debt | 0 | 0 | |
Level 3 Estimated Fair Value [Member] | |||
Financial assets: | |||
Cash and cash equivalents | 0 | 0 | |
Investment in equity securities | 0 | 0 | |
Warrants, fair value | 3 | 3 | $ 31 |
Financial liabilities: | |||
Non-recourse debt | 1,166 | 2,197 | |
Carrying Amount [Member] | |||
Financial assets: | |||
Cash and cash equivalents | 962 | 1,748 | |
Investment in equity securities | 3 | 8 | |
Warrants, fair value | 3 | ||
Financial liabilities: | |||
Non-recourse debt | $ 1,184 | $ 2,163 |