EX-14.1

EXHIBIT 14.1

ATEL CAPITAL EQUIPMENT FUND IX, LLC
 
CODE OF ETHICS FOR CHIEF EXECUTIVE OFFICER AND
CHIEF FINANCIAL AND OPERATING OFFICER

A. SCOPE

This Code of Ethics is applicable to ATEL Capital Equipment Fund IX, LLC (“Fund IX”), including the Chief Executive Officer and Chief Financial and Operating Officer of its Manager, ATEL Financial Services, LLC (“AFS”), or persons acting in such capacity (collectively the “Covered Officers”) on behalf of Fund IX, referred to herein as the “Company.”

Accordingly, under the Securities and Exchange Commission’s interpretation of its disclosure rules, the Board of Directors of AFS functions as the de facto audit committee for the Company with respect to all procedural and disclosure requirements applicable to audit committees under Securities and Exchange Commission rules. The Board of Directors shall have oversight responsibility over the activities of the Company for purposes of this Code of Ethics.

B. PURPOSE

The Company is proud of the values with which it conducts business. It has and will continue to uphold the highest levels of business ethics and personal integrity in all types of transactions and interactions. To this end, this Code of Ethics serves to (1) emphasize the Company’s commitment to ethics and compliance with the law; (2) set forth basic standards of ethical and legal behavior; (3) provide reporting mechanisms for known or suspected ethical or legal violations; and (4) help prevent and detect wrongdoing. This Code of Ethics is intended to augment and supplement the standard of ethics and business conduct expected of all Company employees, and its limitation to Covered Officers is not intended to limit the obligation of all Company employees to adhere to the highest standards of business ethics and integrity in all transactions and interactions conducted while in the Company’s employ.

Given the variety and complexity of ethical questions that may arise in the course of business of the Company, this Code of Ethics serves only as a rough guide. Confronted with ethically ambiguous situations, the Covered Officers should remember the Company’s commitment to the highest ethical standards and seek independent advice, where necessary, to ensure that all actions they take on behalf of the Company honor this commitment.

C. ETHICS STANDARDS

1. Honest and Ethical Conduct

The Covered Officers shall behave honestly and ethically at all times and with all people. They shall act in good faith, with due care, and shall engage only in fair and open competition, by treating ethically competitors, suppliers, customers, and colleagues. They shall not misrepresent facts or engage in illegal, unethical, or anti-competitive practices for personal or professional gain.

2. Conflicts of Interest

This fundamental standard of honest and ethical conduct extends to the handling of conflicts of interest. The Covered Officers shall avoid any actual, potential, or apparent conflicts of interest with the Company, and any personal activities, investments, or associations that might give rise to such conflicts. They shall not compete with or use the Company, for personal gain, self-deal, or take advantage of any corporate opportunities. They shall act on behalf of the Company free from improper influence or the appearance of improper influence on their judgment or performance of duties. A Covered Officer shall disclose any material transaction or relationship that reasonably could be expected to give rise to such a conflict to the Company’s General Counsel or a member of the Company’s Board of Directors. No action may be taken with respect to such transaction or party unless and until the Company’s Board of Directors has approved such action.

Notwithstanding the foregoing, it is understood, as fully disclosed in the offering documents for the Company, that AFS as managing member of the Company has certain inherent conflicts of interest. The provisions of the Company’s Operating Agreement have been drafted to address the obligations, restrictions and limitations on the power and authority of AFS to manage the Company’s affairs, including restrictions prohibiting or limiting the terms of any transactions in which conflicts of interest may arise. Furthermore, AFS has a fiduciary duty to the Company as its manager. It is therefore expressly understood by the Company and the Covered Officers that any and all actions by AFS and its personnel that comply with the provisions of the Company’s Operating Agreement, and which are consistent with AFS’s fiduciary duty to the Company, will not be considered material transactions or relationships which require disclosure or reporting under this Code of Ethics.

3. Timely and Truthful Disclosure

In reports and documents filed with or submitted to the Securities and Exchange Commission and other regulators by the Company and in other public communications made by the Company, the Covered Officers shall make disclosures that are full, fair, accurate, timely, and understandable. The Covered Officers shall provide thorough and accurate financial and accounting data for inclusion in such disclosures. The Covered Officers shall not knowingly conceal or falsify information, misrepresent material facts, or omit material facts necessary to avoid misleading the Company’s independent public auditors or investors.

4. Legal Compliance

In conducting the business of the Company, the Covered Officers shall comply with applicable governmental laws, rules, and regulations at all levels of government in the United States and in any non-U.S. jurisdiction in which the Company does business, as well as applicable rules and regulations of self-regulatory organizations of which the Company is a member. If the Covered Officer is unsure whether a particular action would violate an applicable law, rule, or regulation, he or she should seek the advice of inside counsel (if available), and, where necessary, outside counsel before undertaking it.

D. VIOLATIONS OF ETHICAL STANDARDS

1. Reporting Known or Suspected Violations

The Covered Officers will promptly bring to the attention of the Company’s General Counsel or the Board of Directors any information concerning a material violation of any of the laws, rules or regulations applicable to the Company and the operation of its businesses, by the Company or any agent thereof, or of violation of this Code of Ethics. The Company’s General Counsel will investigate reports of violations and the findings communicated to the Company’s Board of Directors.

2. Accountability for Violations

If the Company’s Board of Directors determines that this Code of Ethics has been violated, either directly, by failure to report a violation, or by withholding information related to a violation, it may discipline the offending Covered Officer for non-compliance with penalties up to and including termination of employment. Violations of this Code of Ethics may also constitute violations of law and may result in criminal penalties and civil liabilities for the offending Covered Officer and the Company.

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO RULE 13a-14(a) OR RULE 15d-14(a)
OF THE SECURITIES EXCHANGE ACT OF 1934
AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Dean L. Cash, certify that:

1. I have reviewed this annual report on Form 10-K of ATEL Capital Equipment Fund IX, LLC;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 14, 2014

/s/ Dean L. Cash Dean L. Cash President and Chief Executive Officer of ATEL Financial Services, LLC (Managing Member)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO RULE 13a-14(a) OR RULE 15d-14(a)
OF THE SECURITIES EXCHANGE ACT OF 1934
AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Paritosh K. Choksi, certify that:

1. I have reviewed this annual report on Form 10-K of ATEL Capital Equipment Fund IX, LLC;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: March 14, 2014

/s/ Paritosh K. Choksi Paritosh K. Choksi Executive Vice President and Chief Financial Officer and Chief Operating Officer of ATEL Financial Services, LLC (Managing Member)

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. §1350,
AS ADOPTED PURSUANT TO
§906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of ATEL Capital Equipment Fund IX, LLC (the “Company”) on Form 10-K for the year ended December 31, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Dean L. Cash, President and Chief Executive Officer of ATEL Financial Services, LLC, Managing Member of the Company, hereby certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: March 14, 2014

/s/ Dean L. Cash Dean L. Cash President and Chief Executive Officer of ATEL Financial Services, LLC (Managing Member)

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. §1350,
AS ADOPTED PURSUANT TO
§906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of ATEL Capital Equipment Fund IX, LLC (the “Company”) on Form 10-K for the year ended December 31, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Paritosh K. Choksi, Executive Vice President and Chief Financial Officer and Chief Operating Officer of ATEL Financial Services, LLC, Managing Member of the Company, hereby certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: March 14, 2014

/s/ Paritosh K. Choksi Paritosh K. Choksi Executive Vice President and Chief Financial Officer and Chief Operating Officer of ATEL Financial Services, LLC (Managing Member)

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Notes Receivable, Net (Initial Direct Costs, Amortization Expense Related to Notes Receivable and Company's Operating and Direct Finance Leases) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Initial Direct Costs Notes Receivable And Lease Assets [Line Items]
Amortization of initial direct costs	$ 15	$ 25
Notes Receivable [Member]
Initial Direct Costs Notes Receivable And Lease Assets [Line Items]
Amortization of initial direct costs	1	2
Lease Assets [Member]
Initial Direct Costs Notes Receivable And Lease Assets [Line Items]
Amortization of initial direct costs	$ 14	$ 23

XML

Commitments and Contingencies (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013 item
Gain Contingencies [Line Items]
Gain contingency, number of vessels	3
Gain contingency, percentage of gross proceeds	10.00%
Gain contingency	$ 2,800
ATEL Capital Equipment Fund IX, LLC [Member]
Gain Contingencies [Line Items]
Gain contingency	$ 350

XML

Investments in Equipment and Leases, Net (Property on Operating Leases) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2012	$ 11,291
Additions	(2,226)
Reclassifications or Dispositions	(659)
Balance December 31, 2013	8,406
Transportation, Rail [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2012	11,891
Additions
Reclassifications or Dispositions	(256)
Balance December 31, 2013	11,635
Marine Vessels [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2012	8,958
Additions
Reclassifications or Dispositions	2,242
Balance December 31, 2013	11,200
Marine Transportation/Transportation, Other [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2012	10,439
Additions
Reclassifications or Dispositions	(5,800)
Balance December 31, 2013	4,639
Manufacturing [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2012	2,056
Additions
Reclassifications or Dispositions	118
Balance December 31, 2013	2,174
Natural Gas Compressors [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2012	1,671
Additions
Reclassifications or Dispositions
Balance December 31, 2013	1,671
Materials Handling [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2012	2,939
Additions
Reclassifications or Dispositions	(1,556)
Balance December 31, 2013	1,383
Agriculture [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2012	1,151
Additions
Reclassifications or Dispositions
Balance December 31, 2013	1,151
Construction [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2012	1,584
Additions
Reclassifications or Dispositions	(825)
Balance December 31, 2013	759
Other Properties [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2012	46
Additions
Reclassifications or Dispositions	11
Balance December 31, 2013	57
Total Property Subject To Or Available For Operating Lease [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2012	40,735
Additions
Reclassifications or Dispositions	(6,066)
Balance December 31, 2013	34,669
Less Accumulated Depreciation [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2012	(29,444)
Additions	(2,226)
Reclassifications or Dispositions	5,407
Balance December 31, 2013	$ (26,263)

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Members' Capital (Narrative) (Details)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Other Members Capital Account [Line Items]
Other Members capital account, units issued	12,055,016	12,055,016
Other Members capital account, units outstanding	12,055,016	12,055,016
Other Members capital account, units authorized	15,000,000	15,000,000
Potential repurchase price of Units as percentage of holder's capital account	100.00%
Other Members [Member]
Other Members Capital Account [Line Items]
Allocation of net income or net losses	92.50%
Managing Member [Member]
Other Members Capital Account [Line Items]
Managing members account, units issued	50	50
Allocation of net income or net losses	7.50%

XML

Investments in Equipment and Leases, Net (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2013	Dec. 31, 2012
IDC amortization expense related to operating leases and direct financing leases		$ 14	$ 23
Depreciation of operating lease assets		2,246	3,273
Average estimated residual value of assets on operating leases		17.00%	16.00%
Revenues from contingent rentals		48	32
Impairment losses on equipment		219	71
Amount due from settlement of lease asset casualty	440
Gain from settlement of lease asset casualty	$ 350		$ 350
Minimum [Member]
Financing leases, period for non accrual status		90 days
Accounts receivable, period for non-accrual status		90 days	90 days

XML

Summary of Significant Accounting Policies (Schedule of Differences Between Book Value and Tax Basis of Net Assets) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Summary of Significant Accounting Policies [Abstract]
Financial statement basis of net assets	$ 12,347	$ 14,940	$ 17,197
Tax basis of net assets (unaudited)	15,451	15,317
Difference	$ (3,104)	$ (377)

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Fair Value Measurements (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Fair Value Measurements [Abstract]
Assets or liabilities requiring measurement at fair value on a recurring basis	$ 0	$ 0
Fair value adjustment on notes receivable	0	54
Impairment losses on equipment	219	71
Fair value of warrants	$ 177

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Investments in Equipment and Leases, Net (Tables)

12 Months Ended

Dec. 31, 2013

Investments in Equipment and Leases, Net [Abstract]

Investment in Leases

The Company’s investment in leases consists of the following (in thousands):

		Balance December 31, 2012		Reclassifications, Additions / Dispositions and Impairment Losses		Depreciation/ Amortization Expense or Amortization of Leases		Balance December 31, 2013
Net investment in operating leases	$	11,291	$	(659)	$	(2,226)	$	8,406
Net investment in direct financing leases		12,453		(27)		(1,616)		10,810
Assets held for sale or lease, net		2,289		(1,613)		(20)		656
Initial direct costs, net of accumulated   amortization of $83 at December 31, 2013 and $82 at December 31, 2012		32		-		(14)		18
Total	$	26,065	$	(2,299)	$	(3,876)	$	19,890

Property on Operating Leases

Property on operating leases consists of the following (in thousands):

		Balance December 31, 2012		Additions		Reclassifications, Dispositions and Impairment Losses		Balance December 31, 2013
Transportation, rail	$	11,891	$	-	$	(256)	$	11,635
Marine vessels		8,958		-		2,242		11,200
Transportation, other		10,439		-		(5,800)		4,639
Manufacturing		2,056		-		118		2,174
Natural gas compressors		1,671		-		-		1,671
Materials handling		2,939		-		(1,556)		1,383
Agriculture		1,151		-		-		1,151
Construction		1,584		-		(825)		759
Other		46		-		11		57
		40,735		-		(6,066)		34,669
Less accumulated depreciation		(29,444)		(2,226)		5,407		(26,263)
Total	$	11,291	$	(2,226)	$	(659)	$	8,406

Components of Company's Investment in Direct Financing Leases

As of December 31, 2013, investment in direct financing leases consists of mining equipment. As of December 31, 2012, such investment consisted of materials handling and mining equipment as well as office furniture. The following lists the components of the Company’s investment in direct financing leases as of December 31, 2013 and 2012 (in thousands):

		2013		2012
Total minimum lease payments receivable	$	12,584	$	17,118
Estimated residual values of leased equipment (unguaranteed)		3,542		3,569
Investment in direct financing leases		16,126		20,687
Less unearned income		(5,316)		(8,234)
Net investment in direct financing leases	$	10,810	$	12,453

Future Minimum Lease Payments Receivable

At December 31, 2013, the aggregate amounts of future minimum lease payments receivable are as follows (in thousands):

		Operating Leases		Direct Financing Leases		Total
Year ending December 31, 2014	$	3,464	$	4,450	$	7,914
2015		2,040		4,450		6,490
2016		372		3,684		4,056
2017		344		-		344
2018		182		-		182
Thereafter		228		-		228
	$	6,630	$	12,584	$	19,214

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Investments in Equipment and Leases, Net (Future Minimum Lease Payments Receivable) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Operating Leases
Year ending December 31, 2014	$ 3,464
2015	2,040
2016	372
2017	344
2018	182
Thereafter	228
Operating leases, future minimum payments receivable	6,630
Direct Financing Leases
Year ending December 31, 2014	4,450
2015	4,450
2016	3,684
2017
2018
Thereafter
Capital leases, future minimum payments receivable	12,584
Total
Year ending December 31, 2014	7,914
2015	6,490
2016	4,056
2017	344
2018	182
Thereafter	228
Operating and capital leases, future minimum payments receivable	$ 19,214

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Allowance for Credit Losses (Recorded Investment in Financing Receivables) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013		Dec. 31, 2012		Jun. 30, 2012
Allowances for credit losses:
Ending balance	$ 0		$ 54		$ 54
Ending balance: individually evaluated for impairment			54
Ending balance: collectively evaluated for impairment
Ending balance: loans acquired with deteriorated credit quality
Notes Receivable, Net [Abstract]
Ending balance	11,349		13,496
Ending balance: individually evaluated for impairment	11,349		13,496
Ending balance: collectively evaluated for impairment
Ending balance: loans acquired with deteriorated credit quality
Notes Receivable [Member]
Allowances for credit losses:
Ending balance			54
Ending balance: individually evaluated for impairment			54
Ending balance: collectively evaluated for impairment
Ending balance: loans acquired with deteriorated credit quality
Notes Receivable, Net [Abstract]
Ending balance	526		1,019	[1]
Ending balance: individually evaluated for impairment	526		1,019
Ending balance: collectively evaluated for impairment
Ending balance: loans acquired with deteriorated credit quality
Notes Receivable unamortized initial direct cost			1
Finance Leases [Member]
Allowances for credit losses:
Ending balance
Ending balance: individually evaluated for impairment
Ending balance: collectively evaluated for impairment
Ending balance: loans acquired with deteriorated credit quality
Notes Receivable, Net [Abstract]
Ending balance	10,823	[2]	12,477	[3]
Ending balance: individually evaluated for impairment	10,823		12,477
Ending balance: collectively evaluated for impairment
Ending balance: loans acquired with deteriorated credit quality
Notes Receivable unamortized initial direct cost	13
Finance leases unamortized initial direct cost			$ 24

[1] Includes $1 of unamortized initial direct costs

[2] Includes $13 of unamortized initial direct costs

[3] Includes $24 of unamortized initial direct costs

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Notes Receivable, Net (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Jun. 30, 2012
Financing Receivable, Recorded Investment, Past Due [Line Items]
Fair value adjustments which reduced the cost basis of impaired loans		$ 54	$ 54
Net investment balance outstanding		117
Gain on early settlement of notes receivable	$ 54
Minimum [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Terms of the notes receivable	36 months
Notes receivable, interest rate	8.50%
Notes maturity period	2014
Maximum [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Terms of the notes receivable	120 months
Notes receivable, interest rate	16.20%
Notes maturity period	2016

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Non-Recourse Debt (Narrative) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013
Gross operating lease rentals and future payments on direct financing leases	$ 14.0
Carrying value of pledged assets	$ 13.1
Minimum [Member]
Fixed Interest rate on note	6.16%
Note maturity year	2015
Maximum [Member]
Fixed Interest rate on note	6.66%
Note maturity year	2017

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Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Financial assets:
Cash and cash equivalents	$ 4,738	$ 5,217
Notes receivable, net	526	965
Investment in securities	5	5
Warrants	177
Financial liabilities:
Non-recourse debt	13,575	18,302
Carrying Amount [Member]
Financial assets:
Cash and cash equivalents	4,738	5,217
Notes receivable, net	526	965
Investment in securities	5	5
Warrants	177
Financial liabilities:
Non-recourse debt	13,105	17,384
Estimated Fair Value [Member] | Level 1 Estimated Fair Value [Member]
Financial assets:
Cash and cash equivalents	4,738	5,217
Notes receivable, net
Investment in securities
Warrants
Financial liabilities:
Non-recourse debt
Estimated Fair Value [Member] | Level 2 Estimated Fair Value [Member]
Financial assets:
Cash and cash equivalents
Notes receivable, net
Investment in securities
Warrants
Financial liabilities:
Non-recourse debt
Estimated Fair Value [Member] | Level 3 Estimated Fair Value [Member]
Financial assets:
Notes receivable, net	526	965
Investment in securities	5	5
Warrants	177
Financial liabilities:
Non-recourse debt	$ 13,575	$ 18,302

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Investments in Equipment and Leases, Net (Investment in Leases) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Leases Disclosure [Line Items]
Balance December 31, 2012	$ 26,065
Reclassifications, Additions/ Dispositions	(2,299)
Depreciation/ Amortization Expense or Amortization of Leases	(3,876)
Balance December 31, 2013	19,890
Initial direct costs, accumulated amortization	83	2,013
Operating Leases [Member]
Leases Disclosure [Line Items]
Balance December 31, 2012	11,291
Reclassifications, Additions/ Dispositions	(659)
Depreciation/ Amortization Expense or Amortization of Leases	(2,226)
Balance December 31, 2013	8,406
Direct Financing Leases [Member]
Leases Disclosure [Line Items]
Balance December 31, 2012	12,453
Reclassifications, Additions/ Dispositions	(27)
Depreciation/ Amortization Expense or Amortization of Leases	(1,616)
Balance December 31, 2013	10,810
Assets Held-for-sale or Lease[Member]
Leases Disclosure [Line Items]
Balance December 31, 2012	2,289
Reclassifications, Additions/ Dispositions	(1,613)
Depreciation/ Amortization Expense or Amortization of Leases	(20)
Balance December 31, 2013	656
Initial Direct Cost [Member]
Leases Disclosure [Line Items]
Balance December 31, 2012	32
Depreciation/ Amortization Expense or Amortization of Leases	(14)
Balance December 31, 2013	$ 18

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2013

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, 2013 and 2012, and the related statements of income, 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 have been reclassified to conform to the current year presentation. These reclassifications had no significant effect on the reported financial position or results of operations.

Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data.

In preparing the accompanying financial statements, the Company has reviewed, as determined necessary by the Managing Member, events that have occurred after December 31, 2013, up until the issuance of the financial statements. No events were noted which would require disclosure in the footnotes to the financial statements.

Use of estimates:

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Such estimates relate primarily to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes and determination of the allowance for doubtful accounts.

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.

Credit risk:

Financial instruments that potentially subject the Company to concentrations of credit risk include cash and cash equivalents, operating and direct financing lease receivables, notes receivable and accounts receivable. The Company generally places the majority of its cash deposits in noninterest-bearing accounts with financial institutions that have no less than $10 billion in assets. Such deposits are insured up to $250 thousand. The remainder of the Funds’ cash is temporarily invested in U.S. Treasury denominated instruments. The concentration of such deposits and temporary cash investments is not deemed to create a significant risk to the Company. Accounts and notes receivable represent amounts due from lessees or borrowers in various industries, related to equipment on operating and direct financing leases or notes receivable.

Accounts receivable:

Accounts receivable represent the amounts billed under operating and direct financing lease contracts, and notes receivable which are 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 charged off to the allowance on a specific identification basis. Amounts recovered that were previously written-off are recorded as other income in the period received.

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. 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.

The Company earns revenues from its marine vessel based on charter utilization of the vessel or a fixed term lease. When the vessel is chartered, contingent rentals and the associated expenses are recorded when earned and/or incurred. From time to time, the Company incurs “drydocking” costs on its vessel. Drydocking costs include labor and material costs related to refurbishing, overhauling and/or replacing engine and other major mechanical components of the vessel, hull maintenance and other repairs that bring the vessel into seaworthy compliance with U.S. marine codes in order to have it certified as available for charter. Such drydocking costs are capitalized and added to the equipment cost and depreciated over the period between scheduled drydockings, which generally occur every 24 to 30 months.

Direct financing leases and related revenue recognition:

Income from direct financing lease transactions is reported using the financing method of accounting, in which the Company’s investment in the leased property is reported as a receivable from the lessee to be recovered through future rentals. The interest income portion of each rental payment is calculated so as to generate a constant rate of return on the net receivable outstanding.

Allowances for losses on direct financing leases are typically established based on historical charge off and collection experience and the collectability of specifically identified lessees and billed and unbilled receivables. Direct financing leases are charged off to the allowance as they are deemed uncollectible.

Direct financing leases are generally placed in a non-accrual status (i.e., no revenue is recognized) and deemed impaired when payments are more than 90 days past due. Additionally, management periodically reviews the creditworthiness of all direct finance lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related direct financing 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, all payments received are applied only against outstanding principal balances.

Notes receivable, unearned interest income and related revenue recognition:

The Company records all future payments of principal and interest on notes as notes receivable which is then offset by the amount of any related unearned interest income. For financial statement purposes, the Company reports only the net amount of principal due on the balance sheet. The unearned interest is recognized over the term of the note and the income portion of each note payment is calculated so as to generate a constant rate of return on the net balance outstanding. Any fees or costs related to notes receivable are recorded as part of the net investment in notes receivable and amortized over the term of the loan.

Allowances for losses on notes receivable are typically established based on historical charge off and collection experience and the collectability of specifically identified borrowers and billed and unbilled receivables. Notes are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and/or interest when due according to the contractual terms of the note agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. If it is determined that a loan is impaired with regard to scheduled payments, the Company will perform an analysis of the note to determine if an impairment valuation reserve is necessary. This analysis considers the estimated cash flows from the note, or the collateral value of the property underlying the note when note repayment is collateral dependent. Any required valuation reserve is charged to earnings when determined; and notes are charged off to the allowance for losses as they are deemed uncollectible.

Notes receivable are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management periodically reviews the creditworthiness of companies with note payments outstanding less than 90 days. Based upon management’s judgment, notes may be placed in a non-accrual status. Notes placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid receivable is probable.Until such time, all payments received are applied only against outstanding principal balances.

Initial direct costs:

The Company capitalizes initial direct costs (“IDC”) associated with the origination and funding of lease assets and investments in notes receivable. IDC includes both internal costs (e.g., the costs of employees’ activities in connection with successful lease and loan originations) and external broker fees incurred with such originations. The costs are amortized on a lease by lease (or note by note) basis based on actual contract term using a straight-line method for operating leases and the effective interest rate method for direct financing leases and notes receivable. Upon disposal of the underlying lease or loan assets, both the initial direct costs and the associated accumulated amortization are relieved. Costs related to leases or notes receivable that are not consummated are not eligible for capitalization as initial direct costs and are expensed as acquisition expense.

Acquisition expense:

Acquisition expense represents costs which include, but are not limited to, legal fees and expenses, travel and communication expenses, cost of appraisals, accounting fees and expenses and miscellaneous expenses related to the selection and acquisition of equipment which are reimbursable to the Managing Member under the terms of the Operating Agreement. As the costs are not eligible for capitalization as initial direct costs, such amounts are expensed as incurred.

Asset valuation:

Recorded values of the Company’s leased asset portfolio are periodically reviewed for impairment. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than their net book value. The estimated undiscounted future cash flows are the sum of the estimated residual value of the asset at the end of the asset’s expected holding period and estimates of undiscounted future rents. 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 market place 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.

Segment reporting:

The Company is not organized by multiple operating segments for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in one reportable operating segment in the United States.

The 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 regions in which the Company seeks leasing and lending opportunities are North America and Europe. The table below summarizes geographic information relating to the sources, by nation, of the Company’s total revenues for the years ended December 31, 2013 and 2012 and long-lived assets as of December 31, 2013 and 2012 (dollars in thousands):

		For the year ended December 31,
		2013	% of Total		2012	% of Total
Revenue
United States	$	10,207	97%	$	12,653	95%
Canada		148	2%		361	3%
United Kingdom		138	1%		287	2%
Total International		286	3%		648	5%
Total	$	10,493	100%	$	13,301	100%
		As of December 31,
		2013	% of Total		2012	% of Total
Long-lived assets
United States	$	19,803	100%	$	25,571	98%
Canada		-	0%		340	1%
United Kingdom		87	0%		154	1%
Total International		87	0%		494	2%
Total	$	19,890	100%	$	26,065	100%

Foreign currency transactions:

Foreign currency transaction gains and losses are reported in the results of operations as “other income” or “other expense” in the period in which they occur. Currently, the Company does not use derivative instruments to hedge its economic exposure with respect to assets, liabilities and firm commitments as the foreign currency transactions risks to date have not been significant. During the year ended December 31, 2013, the Company’s foreign currency translations gains and losses netted to near $0. By comparison, during the year ended December 31, 2012, the Company recognized foreign currency losses totaling $8 thousand, which are included in other expense, net.

Investment in securities:

Purchased securities

Purchased securities are generally not registered for public sale and are carried at cost. Such securities are adjusted to fair value if the fair value is less than the carrying value and such impairment is deemed by the Managing Member to be other than temporary. Factors considered by the Managing Member in determining fair value include, but are not limited to, available financial information, the issuer’s ability to meet its current obligations and indications of the issuer’s subsequent ability to raise capital. There were neither impaired securities at December 31, 2013 and 2012 nor investment securities sold or disposed of during the years ended December 31, 2013 and 2012.

Warrants

Warrants owned by the Company are not registered for public sale, but are considered derivatives and are carried at an estimated fair value on the balance sheet at the end of the year, as determined by the Managing Member. At December 31, 2013, the Company’s portfolio of warrants had an estimated fair value of $177 thousand. At December 31, 2012, the Managing Member estimated the fair value of the warrants to be nominal in amount. During 2013, the Company recognized nominal gains on the net exercise of certain warrants. By comparison, gains recognized on the net exercise of warrants amounted to an approximate $16 thousand in 2012.

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 income taxes for only those states which levy income taxes on partnerships. For the years ended December 31, 2013 and 2012, the related provision for state income taxes was approximately $112 thousand and $99 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, 2013 and 2012 as follows (in thousands):

		2013		2012
Financial statement basis of net assets	$	12,347	$	14,940
Tax basis of net assets (unaudited)		15,451		15,317
Difference	$	(3,104)	$	(377)

The primary differences between the tax bases of net assets and the amounts recorded in the financial statements are the result of differences in accounting for syndication costs and differences between the depreciation methods used in the financial statements and the Company’s tax returns.

The following reconciles the net income reported in these financial statements to the income reported on the Company’s federal tax return (unaudited) for each of the years ended December 31, 2013 and 2012 (in thousands):

		2013		2012
Net income per financial statements	$	5,226	$	5,562
Tax adjustments (unaudited):
Adjustment to depreciation expense		337		(802)
Provision for losses and doubtful accounts		(51)		(15)
Adjustments to revenues / other expenses		1,671		1,414
Adjustments to gain on sales of assets		940		(87)
Other		(170)		125
Income per federal tax return (unaudited)	$	7,953	$	6,197

Other expense, net:

Other expense, net for the years ended December 31, 2013 and 2012 consisted solely of net losses on foreign exchange transactions. Such net losses were nominal during 2013 and totaled $8 thousand during the prior year.

Per Unit data:

Net income and distributions per Unit are based upon the weighted average number of Other Members’ Units outstanding during the period.

Recent accounting pronouncements:

Recent accounting standards updates as issued by the Financial Accounting Standards Board (FASB) were evaluated and determined to be not applicable to the Company.

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Allowance for Credit Losses (Financing Receivables by Credit Quality Indicator and by Class) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment [Line Items]
Finance Leases	$ 10,810	$ 12,453
Notes Receivable	526	1,018
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Finance Leases	10,810	12,426
Notes Receivable	526	259
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Finance Leases		27
Notes Receivable		759
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Finance Leases
Notes Receivable
Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Finance Leases
Notes Receivable

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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value Measurements [Abstract]

Reconciliation of Level 3 Assets

The following table reconciles the beginning and ending balances of the Company’s Level 3 recurring assets (in thousands):

		Level 3 assets
Balance at December 31, 2012	$	-
Unrealized gain on warrants, net recorded during the year		177
Balance at December 31, 2013	$	177

Fair Value Measurement of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

The following table presents the fair value measurement of assets and liabilities measured at fair value on a non-recurring basis and the level within the hierarchy in which the fair value measurements fall at December 31, 2013 and 2012 (in thousands):

		December 31, 2013		Level 1 Estimated Fair Value		Level 2 Estimated Fair Value		Level 3 Estimated Fair Value
Assets measured at fair value on a non-recurring basis:
Impaired off- lease equipment	$	3	$	-	$	-	$	3
		December 31, 2012		Level 1 Estimated Fair Value		Level 2 Estimated Fair Value		Level 3 Estimated Fair Value
Assets measured at fair value on a non-recurring basis:
Impaired notes receivable, net	$	117	$	-	$	-	$	117
Impaired off-lease equipment		2		-		-		2

Summary of Valuation Techniques and Significant Unobservable Inputs Used

The following table summarizes the valuation techniques and significant unobservable inputs used for the Company’s recurring and non-recurring fair value calculation/adjustments categorized as Level 3 in the fair value hierarchy at December 31, 2013:

Name	Valuation Frequency	Valuation Technique	Unobservable Inputs	Range of Input Values
Warrants	Recurring	Black-Scholes Model	Stock price	$1.12 - $5.094
			Exercise price	$0.16 - $5.09
			Time to Maturity (in years)	0.62 - 7.00
			Annual risk-free interest rate	0.11% - 2.28%
			Annualized volatility	17.80% - 100.00%
Lease Equipment	Non-recurring	Market Approach	Third Party Agents' Pricing Quotes - per equipment	$500 (total of $2,500)
			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, 2013 and 2012 (in thousands):

		Fair Value Measurements at December 31, 2013
		Carrying Amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	4,738	$	4,738	$	-	$	-	$	4,738
Notes receivable, net		526		-		-		526		526
Investment in securities		5		-		-		5		5
Warrants		177		-		-		177		177
Financial liabilities:
Non-recourse debt		13,105		-		-		13,575		13,575

		Fair Value Measurements at December 31, 2012
		Carrying Amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	5,217	$	5,217	$	-	$	-	$	5,217
Notes receivable, net		965		-		-		965		965
Investment in securities		5		-		-		5		5
Financial liabilities:
Non-recourse debt		17,384		-		-		18,302		18,302

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Members' Capital (Tables)

12 Months Ended

Dec. 31, 2013

Members' Capital [Abstract]

Distributions to Other Members

Distributions to the Other Members were as follows (in thousands, except Units and per Unit data):

		2013		2012
Distributions declared	$	7,233	$	7,233
Weighted average number of Units outstanding		12,055,016		12,055,016
Weighted average distributions per Unit	$	0.60	$	0.60

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Members' Capital (Distributions to Other Members) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Members' Capital [Abstract]
Distributions declared	$ 7,233	$ 7,233
Weighted average number of Units outstanding	12,055,016	12,055,016
Weighted average distributions per Unit	$ 0.60	$ 0.60

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Allowance for Credit Losses (Schedule of Impaired Loans) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Jun. 30, 2012
Allowance for Credit Losses [Abstract]
Notes receivable, With an allowance recorded, Recorded investment	$ 171
Recorded investment, Total	171
Notes receivable, With an allowance recorded, Unpaid Principal Balance	171
Unpaid Principal Balance, Total	171
Notes receivable, Related Allowance	54	54
Notes receivable, With an allowance recorded, Average Recorded Investment	230
Impaired Financing Receivable, Average Recorded Investment, Total	230
Notes receivable, With an allowance recorded, Interest Income Recognized	19
Interest Income Recognized, Total	$ 19

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Organization and Limited Liability Company Matters (Narrative) (Details) (USD $)	0 Months Ended	84 Months Ended	132 Months Ended	159 Months Ended
	Jan. 16, 2001	Dec. 31, 2009	Dec. 31, 2013	Dec. 31, 2013	Dec. 31, 2012	Jan. 15, 2003	Apr. 03, 2001	Dec. 31, 2000	Apr. 03, 2001 Minimum [Member]	Feb. 21, 2001 Minimum [Member]	Dec. 31, 2000 Atel Financial Services LLC [Member]	Dec. 31, 2000 Members Equity Contributions [Member] Atel Financial Services LLC [Member]
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Limited Liability Company, business cessation date				Dec. 31, 2020
Contributions of capital								$ 600	$ 7,500,000			$ 500
Capital investment											100
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						12,065,266	753,050			120,000
Proceeds from sale of Limited Liability Company Units						120,700,000				1,200,000
Repurchase of units, number of units			10,250
Amount of aggregate subscriptions for Pennsylvania subscriptions to be released to the Fund							$ 7,500,000
Units issued			12,055,016	12,055,016	12,055,016
Units outstanding			12,055,016	12,055,016	12,055,016
Reinvestment period		6 years

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Summary of Significant Accounting Policies (Narrative) (Details) (USD $)	12 Months Ended
	Dec. 31, 2013 segment	Dec. 31, 2012
Number of operating segments	1
Number of reportable segments	1
Foreign currency losses	$ 0	$ 8,000
Fair value of warrants	177,000
Gain on exercise of warrants		16,000
Provision for franchise fees and state income taxes	112,000	99,000
Period subject to income tax examination	3 years
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	90 days
Direct financing leases, period for non accrual status	90 days
Note receivable, period for non accrual status	90 days
Period of scheduled Vessel drydocking	24 months
Maximum [Member]
U.S. Treaasury 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
Direct financing leases, period of review for impairment	90 days
Note receivable, period of review for impairment	90 days
Period of scheduled Vessel drydocking	30 months

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Organization and Limited Liability Company Matters

12 Months Ended

Dec. 31, 2013

Organization and Limited Liability Company Matters [Abstract]

Organization and Limited Liability Company Matters

1.Organization and Limited Liability Company matters:

ATEL Capital Equipment Fund IX, LLC (the “Company” or the “Fund”) was formed under the laws of the State of California on September 27, 2000 for the purpose of engaging in the sale of limited liability company investment units and acquiring equipment to engage in equipment leasing, lending and sales activities, primarily in the United States. The Managing Member of the Company is ATEL Financial Services, LLC (“AFS”), a California limited liability company. The Company may continue until December 31, 2020. Contributions in the amount of $600 were received as of December 31, 2000, $100 of which represented AFS’s continuing interest, and $500 of which represented the Initial Member’s capital investment.

The Company conducted a public offering of 15,000,000 Limited Liability Company Units (“Units”), at a price of $10 per Unit. On February 21, 2001, subscriptions for the minimum number of Units (120,000, representing $1.2 million) had been received (excluding subscriptions from Pennsylvania investors) and AFS requested that the subscriptions be released to the Company. On that date, the Company commenced operations in its primary business (acquiring equipment to engage in equipment leasing, lending and sales activities). As of April 3, 2001, the Company had received subscriptions for 753,050 Units ($7.5 million), thus exceeding the $7.5 million minimum requirement for Pennsylvania, and AFS requested that the remaining funds in escrow (from Pennsylvania investors) be released to the Company.

As of January 15, 2003, the offering was terminated. As of that date, the Company had received subscriptions for 12,065,266 Units ($120.7 million). Subsequent to January 15, 2003, Units totaling 10,250 were rescinded or repurchased and funds returned to investors (net of distributions paid and allocated syndication costs, as applicable). As of December 31, 2013,  12,055,016 Units remain issued and outstanding.

The Company’s principal objectives have been to invest in a diversified portfolio of equipment that (i) preserves, protects and returns the Company’s invested capital; (ii) generates regular distributions to the members of cash from operations and cash from sales or refinancing, with any balance remaining after certain minimum distributions to be used to purchase additional equipment during the reinvestment period (“Reinvestment Period”) (defined as six full years following the year the offering was terminated), which ended on December 31, 2009 and (iii) provides additional distributions following the Reinvestment Period and until all equipment has been sold. The Company is governed by the Limited Liability Company Operating Agreement (“Operating Agreement”), as amended. On January 1, 2010, the Company commenced liquidation phase activities pursuant to the guidelines of the Operating Agreement.

Pursuant to the terms of the Operating Agreement, AFS receives compensation and reimbursements for services rendered on behalf of the Company (See Note 7). The Company is required to maintain reasonable cash reserves for working capital, the repurchase of Units and contingencies. The repurchase of Units is solely at the discretion of AFS.

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Summary of Significant Accounting Policies (Summary of Geographic Information Relating to Sources, by Nation, of Partnership's Total Revenue And Long-Lived Assets) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 10,493	$ 13,301
Percentage of total revenue	100.00%	100.00%
Long-lived assets	19,890	26,065
Percentage of long lived assets	100.00%	100.00%
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	10,207	12,653
Percentage of total revenue	97.00%	95.00%
Long-lived assets	19,803	25,571
Percentage of long lived assets	100.00%	98.00%
United Kingdom [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	138	287
Percentage of total revenue	1.00%	2.00%
Long-lived assets	87	154
Percentage of long lived assets	0.00%	1.00%
Canada [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	148	361
Percentage of total revenue	2.00%	3.00%
Long-lived assets		340
Percentage of long lived assets	0.00%	1.00%
Total International [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	286	648
Percentage of total revenue	3.00%	5.00%
Long-lived assets	$ 87	$ 494
Percentage of long lived assets	0.00%	2.00%

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Allowance for Credit Losses (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended			12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Jun. 30, 2012	Dec. 31, 2013 Minimum [Member]	Dec. 31, 2012 Minimum [Member]	Dec. 31, 2013 Maximum [Member]
Notes receivable, period for non-accrual status				90 days
Accounts receivable, period for non-accrual status				90 days	90 days
Accounts receivable, period of review for impairment						90 days
Notes receivable, allowance for credit losses	$ 0	$ 54	$ 54
Equipment and lessee period of review for impairment						90 days
Operating leases, period for non accrual-status				90 days	90 days
Net investment balance outstanding		117
Gain on early settlement of notes receivable	$ 54

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Non-Recourse Debt (Future Minimum Payments of Non-Recourse Debt) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Principal
Year ending December 31, 2014	$ 4,568
2015	4,616
2016	3,743
2017	178
Long-term debt, total	13,105
Interest
Year ending December 31, 2014	726
2015	420
2016	133
2017	1
Long-term debt interest, total	1,280
Total
Year ending December 31, 2014	5,294
2015	5,036
2016	3,876
2017	179
Long-term debt principal and interest, total	$ 14,385

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Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
ASSETS
Cash and cash equivalents	$ 4,738	$ 5,217
Accounts receivable, net of allowance for doubtful accounts of $3 at December 31, 2013 and $55 at December 31, 2012	585	880
Notes receivable, net of unearned interest income of $57 and allowance for credit losses of $0 at December 31, 2013 and net of unearned interest income of $123 and allowance for credit losses of $54 as of December 31, 2012	526	965
Prepaid expenses and other assets	58	59
Investment in securities	5	5
Fair value of warrants	177
Investments in equipment and leases, net of accumulated depreciation of $28,006 at December 31, 2013 and $39,698 at December 31, 2012	19,890	26,065
Total assets	25,979	33,191
Accounts payable and accrued liabilities:
Managing Member	35	69
Other	306	454
Deposits due lessees		49
Non-recourse debt	13,105	17,384
Unearned operating lease income	186	295
Total liabilities	13,632	18,251
Commitments and contingencies
Members' capital:
Managing Member
Other Members	12,347	14,940
Total Members' capital	12,347	14,940
Total liabilities and Members' capital	$ 25,979	$ 33,191

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Allowance for Credit Losses (Net Investment in Financing Receivables by Age) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable Recorded Investment Past Due [Line Items]
31-60 Days Past Due		$ 22
61-90 Days Past Due
Greater Than 90 Days		1
Total Past Due		23
Current	11,336	13,448
Total financing receivable	11,336	13,471
Recorded Investment > 90 Days and Accruing		1
Notes Receivable [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
31-60 Days Past Due
61-90 Days Past Due
Greater Than 90 Days
Total Past Due
Current	526	1,018
Total financing receivable	526	1,018
Recorded Investment > 90 Days and Accruing
Finance Leases [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
31-60 Days Past Due		22
61-90 Days Past Due
Greater Than 90 Days		1
Total Past Due		23
Current	10,810	12,430
Total financing receivable	10,810	12,453
Recorded Investment > 90 Days and Accruing		$ 1

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Statements of Changes in Members' Capital (Parenthetical) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Statements of Changes in Members' Capitall [Abstract]
Distributions to Other Members, per unit	$ 0.60	$ 0.60

XML

Fair Value Measurements (Fair Value Measurement of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired notes receivable, net		$ 117
Impaired off-lease equipment	3	2
Level 1 Estimated Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired notes receivable, net
Impaired off-lease equipment
Level 2 Estimated Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired notes receivable, net
Impaired off-lease equipment
Level 3 Estimated Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired notes receivable, net		117
Impaired off-lease equipment	$ 3	$ 2

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Concentration of Credit Risk and Major Customers (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Concentration Risk [Line Items]
Concentration risk, lessee	During 2013, two lessees generated a significant portion of the Company's total leasing and lending revenues (excluding gains or losses on disposition of assets). With significant defined as greater than or equal to 10%
Operating leases revenue	$ 5,492	$ 8,934
Leases [Member] | Sabine Mining Company [Member]
Concentration Risk [Line Items]
Operating leases revenue	2,900	3,200
Percentage of concentration risk	34.00%	26.00%
Leases [Member] | Union Pacific Railroad Company [Member]
Concentration Risk [Line Items]
Operating leases revenue	$ 807
Percentage of concentration risk	10.00%

XML

Concentration of Credit Risk and Major Customers (Tables)

12 Months Ended

Dec. 31, 2013

Concentration of Credit Risk and Major Customers [Abstract]

Schedule of Equipment Leased, Credit Risk Concentration

As of December 31, 2013 and 2012, 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:

	2013	2012
Mining	29%	23%
Marine transportation/Transportation, other	28%	13%
Transportation, rail	24%	18%
Paper products	11%	*
*  Less than 10%

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Concentration of Credit Risk and Major Customers (Schedule of Leasing and Lending Revenues) (Details)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Mining [Member]
Concentration Risk [Line Items]
Percentage of concentration risk	29.00%	23.00%
Marine Transportation/Transportation, Other [Member]
Concentration Risk [Line Items]
Percentage of concentration risk	28.00%	13.00%
Transportation, Rail [Member]
Concentration Risk [Line Items]
Percentage of concentration risk	24.00%	18.00%
Paper Products [Member]
Concentration Risk [Line Items]
Percentage of concentration risk	11.00%		[1]

[1] Less than 10%

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Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2013

Allowance for Credit Losses [Abstract]

Activity in Allowance for Doubtful Accounts

The Company’s allowance for credit losses are as follows (in thousands):

		Accounts Receivable Allowance for Doubtful Accounts						Valuation Adjustments on Financing Receivables				Total Allowance for Credit Losses
		Notes Receivable		Finance Leases		Operating Leases		Notes Receivable		Finance Leases
Balance December 31, 2011	$	-	$	10	$	60	$	-	$	-	$	70
(Reversal of provision) provision		-		(3)		(12)		54		-		39
Balance December 31, 2012		-		7		48		54		-		109
Reversal of provision		-		(7)		(45)		-		-		(52)
Asset disposal		-		-		-		(54)		-		(54)
Balance December 31, 2013	$	-	$	-	$	3	$	-	$	-	$	3

Recorded Investment in Financing Receivables

As of December 31, 2013 and 2012, the Company’s allowance for credit losses (related solely to financing receivables) and its recorded investment in financing receivables were as follows (in thousands):

December 31, 2013		Notes Receivable		Finance Leases			Total
Allowance for credit losses:
Ending balance	$	-	$	-		$	-
Ending balance: individually evaluated for impairment	$	-	$	-		$	-
Ending balance: collectively evaluated for impairment	$	-	$	-		$	-
Ending balance: loans acquired with deteriorated credit quality	$	-	$	-		$	-
Financing receivables:
Ending balance	$	526	$	10,823	1	$	11,349
Ending balance: individually evaluated for impairment	$	526	$	10,823		$	11,349
Ending balance: collectively evaluated for impairment	$	-	$	-		$	-
Ending balance: loans acquired with deteriorated credit quality	$	-	$	-		$	-
1Includes $13 of unamortized initial direct costs

December 31, 2012		Notes Receivable			Finance Leases			Total
Allowance for credit losses:
Ending balance	$	54		$	-		$	54
Ending balance: individually evaluated for impairment	$	54		$	-		$	54
Ending balance: collectively evaluated for impairment	$	-		$	-		$	-
Ending balance: loans acquired with deteriorated credit quality	$	-		$	-		$	-
Financing receivables:
Ending balance	$	1,019	2	$	12,477	3	$	13,496
Ending balance: individually evaluated for impairment	$	1,019		$	12,477		$	13,496
Ending balance: collectively evaluated for impairment	$	-		$	-		$	-
Ending balance: loans acquired with deteriorated credit quality	$	-		$	-		$	-
2Includes $1 of unamortized initial direct costs
3Includes $24 of unamortized initial direct costs

Financing Receivables by Credit Quality Indicator and by Class

At December 31, 2013 and 2012, the Company’s financing receivables by credit quality indicator and by class of financing receivables are as follows (excludes initial direct costs) (in thousands):

		Notes Receivable				Finance Leases
		2013		2012		2013		2012
Pass	$	526	$	259	$	10,810	$	12,426
Special mention		-		759		-		27
Substandard		-		-		-		-
Doubtful		-		-		-		-
Total	$	526	$	1,018	$	10,810	$	12,453

Schedule of Impaired Loans

There were no impaired loans as of December 31, 2013. As of December 31, 2012, the Company’s impaired loans were as follows (in thousands):

		Impaired Loans
		Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded
Notes receivable	$	-	$	-	$	-	$	-	$	-
With an allowance recorded
Notes receivable		171		171		54		230		19
Total	$	171	$	171	$	54	$	230	$	19

Net Investment in Financing Receivables by Age

As of December 31, 2013 and 2012 the investment in financing receivables is aged as follows (in thousands):

December 31, 2013		31-60 Days Past Due		61-90 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables		Recorded Investment > 90 Days and Accruing
Notes receivable	$	-	$	-	$	-	$	-	$	526	$	526	$	-
Finance leases		-		-		-		-		10,810		10,810		-
Total	$	-	$	-	$	-	$	-	$	11,336	$	11,336	$	-

December 31, 2012		31-60 Days Past Due		61-90 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables		Recorded Investment > 90 Days and Accruing
Notes receivable	$	-	$	-	$	-	$	-	$	1,018	$	1,018	$	-
Finance leases		22		-		1		23		12,430		12,453		1
Total	$	22	$	-	$	1	$	23	$	13,448	$	13,471	$	1

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Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Operating activities:
Net income	$ 5,226	$ 5,562
Adjustment to reconcile net income to cash provided by operating activities:
Gain on sales of lease assets and early termination of notes receivable	(1,615)	(377)
Gain from settelent of lease asset casualty		(350)
Unrealized gain on securities		(5)
Gain on sales or dispositions of securities and warrants	(1)	(16)
Unrealized gain on fair valuation of warrants	(177)
Depreciation of operating lease assets	2,246	3,273
Amortization of initial direct costs	15	25
(Reversal of provision) provision for credit losses	(52)	39
Impairment losses	219	71
Changes in operating assets and liabilities:
Accounts receivable	347	35
Prepaid expenses and other assets	1	(23)
Accounts payable, Managing Member	(34)	(7)
Accounts payable, other	(148)	(13)
Deposits due lessees	(49)
Unearned operating lease income	(109)	36
Net cash provided by operating activities	5,869	8,250
Investing activities:
Proceeds from sales of lease assets and early termination of notes receivable	3,783	673
Proceeds from settlement of lease asset casualty		440
Proceeds from sales or dispositions of securities and warrants	1	16
Principal payments received on direct financing leases	1,616	1,374
Principal payments received on notes receivable	350	700
Net cash provided by investing activities	5,750	3,203
Financing activities:
Repayments of non-recourse debt	(4,279)	(4,010)
Net cash used in financing activities	(12,098)	(11,829)
Net decrease in cash and cash equivalents	(479)	(376)
Cash and cash equivalents at beginning of year	5,217	5,593
Cash and cash equivalents at end of year	4,738	5,217
Supplemental disclosures of cash flow information:
Cash paid during the year for interest	1,014	1,285
Cash paid during the year for taxes	77	139
Other Members [Member]
Operating activities:
Net income	4,640	4,976
Financing activities:
Distributions to Members	(7,233)	(7,233)
Managing Member [Member]
Operating activities:
Net income	586	586
Financing activities:
Distributions to Members	$ (586)	$ (586)

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Balance Sheets (Parenthetical) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Balance Sheets [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 3	$ 55
Notes receivable, unearned interest income	57	123
Notes receivable, allowance for credit losses	0	54
Investments in equipment and leases, accumulated depreciation	$ 28,006	$ 39,698

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Guarantees

12 Months Ended

Dec. 31, 2013

Guarantees [Abstract]

Guarantees

10.  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.

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Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2013	Feb. 28, 2014	Jun. 30, 2013
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	FY
Entity Registrant Name	ATEL CAPITAL EQUIPMENT FUND IX LLC
Entity Central Index Key	0001125264
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Well-known Seasoned Issuer	No
Trading Symbol	zzhjc
Entity Public Float			$ 0
Entity Units Outstanding		12,055,016

XML

Members' Capital

12 Months Ended

Dec. 31, 2013

Members' Capital [Abstract]

Members' Capital

11.  Members’ capital:

As of December 31, 2013 and 2012,  12,055,016 Units were issued and outstanding. The Company was authorized to issue up to 15,000,000 Units in addition to the Units issued to the initial member  (50 Units).

The Company has the right, exercisable in the Manager’s discretion, but not the obligation, to repurchase Units of a Unitholder who ceases to be a U.S. Citizen, for a price equal to 100% of the holder’s capital account. The Company is otherwise permitted, but not required, to repurchase Units upon a holder’s request. The repurchase of Fund units is made in accordance with Section 13 of the Amended and Restated Limited Liability Company Operating Agreement. The repurchase would be at the discretion of the Manager on terms it determines to be appropriate under given circumstances, in the event that the Manager deems such repurchase to be in the best interest of the Company; provided,the Company is never required to repurchase any Units. Upon the repurchase of any Units by the Fund, the tendered Units are cancelled. 

Units repurchased in prior periods were repurchased at amounts representing the original investment less cumulative distributions made to the Unitholder with respect to the Units. All Units repurchased during a quarter are deemed to be repurchased effective the last day of the preceding quarter, and are not deemed to be outstanding during, or entitled to allocations of net income, net loss or distributions for the quarter in which such repurchase occurs.

As defined in the Operating Agreement, the Company’s Net Income, Net Losses, and Distributions are to be allocated 92.5% to the Members and 7.5% to AFS. In accordance with the terms of the Operating Agreement, additional allocations of income were made to AFS in 2013 and 2012. The amounts allocated were determined to bring AFS’s ending capital account balance to zero at the end of each year.

Distributions to the Other Members were as follows (in thousands, except Units and per Unit data):

		2013		2012
Distributions declared	$	7,233	$	7,233
Weighted average number of Units outstanding		12,055,016		12,055,016
Weighted average distributions per Unit	$	0.60	$	0.60

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Statements of Income (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Leasing and lending activities:
Operating leases	$ 5,492	$ 8,934
Direct financing leases	2,917	3,345
Interest on notes receivable	60	132
Gain on sales of lease assets and early termination of notes receivable	1,615	377
Gain from settlement of lease asset casualty		350
Unrealized gain on securities		5
Unrealized gain on fair valuation of warrants	177
Gain on sales or dispositions of securities and warrants	1	16
Other revenue	231	142
Total revenues	10,493	13,301
Expenses:
Depreciation of operating lease assets	2,246	3,273
Asset management fees to Managing Member and/or affiliates	376	592
Cost reimbursements to Managing Member and/or affiliates	676	835
(Reversal of provision) provision for credit losses	(52)	39
Impairment losses	219	71
Amortization of initial direct costs	15	25
Other management fees	35	94
Interest expense	991	1,263
Professional fees	100	147
Outside services	60	55
Insurance	53	92
Marine vessel maintenance and other operating costs	103	887
Railcar and equipment maintenance	151	118
Franchise fees and state taxes	112	99
Other	182	141
Total operating expenses	5,267	7,731
Other expense, net		(8)
Net income	5,226	5,562
Net income:
Managing Member	586	586
Other Members	4,640	4,976
Net income	$ 5,226	$ 5,562
Net income per Limited Liability Company Unit (Other Members)	$ 0.38	$ 0.41
Weighted average number of Units outstanding	12,055,016	12,055,016

XML

Allowance for Credit Losses

12 Months Ended

Dec. 31, 2013

Allowance for Credit Losses [Abstract]

Allowance for Credit Losses

5.Allowance for credit losses:

The Company’s allowance for credit losses are as follows (in thousands):

		Accounts Receivable Allowance for Doubtful Accounts						Valuation Adjustments on Financing Receivables				Total Allowance for Credit Losses
		Notes Receivable		Finance Leases		Operating Leases		Notes Receivable		Finance Leases
Balance December 31, 2011	$	-	$	10	$	60	$	-	$	-	$	70
(Reversal of provision) provision		-		(3)		(12)		54		-		39
Balance December 31, 2012		-		7		48		54		-		109
Reversal of provision		-		(7)		(45)		-		-		(52)
Asset disposal		-		-		-		(54)		-		(54)
Balance December 31, 2013	$	-	$	-	$	3	$	-	$	-	$	3

Accounts Receivable

Accounts receivable represent the amounts billed under operating and direct financing lease contracts, and notes receivable which are currently due to the Company.

Allowances for doubtful accounts are typically established based upon their aging and historical charge off and collection experience and the creditworthiness of specifically identified lessees and borrowers, and invoiced amounts. Accounts receivable deemed uncollectible are generally charged off against the allowance on a specific identification basis. Recoveries of amounts that were previously written-off are recorded as other income in the period received. Accounts receivable are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management periodically reviews the creditworthiness of companies with lease or note payments outstanding less than 90 days. Based upon management’s judgment, such leases or notes may be placed in non-accrual status. Leases or notes placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid receivable is probable. Until such time, revenues on operating leases are recognized on a cash basis. All payments received on amounts billed under direct financing leases contracts and notes receivable are applied only against outstanding principal balances.

Financing Receivables

In addition to the allowance established for delinquent accounts receivable, the total allowance related solely to financing receivables also includes anticipated impairment charges on notes receivable and direct financing leases.

Notes are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and/or interest when due according to the contractual terms of the note agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest when due. If it is determined that a loan is impaired with regard to scheduled payments, the Company will perform an analysis of the note to determine if an impairment valuation reserve is necessary. This analysis considers the estimated cash flows from the note, or the collateral value of the property underlying the note when note repayment is collateral dependent. Any required valuation reserve is charged to earnings when determined; and notes are charged off to the allowance as they are deemed uncollectible.

The asset underlying a direct financing lease contract is considered impaired if the estimated undiscounted future cash flows of the asset are less than its net book value. The estimated undiscounted future cash flows are the sum of the estimated residual value of the asset at the end of the asset’s expected holding period and estimates of undiscounted future rents. 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 market place 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.

As of December 31, 2013 and 2012, the Company’s allowance for credit losses (related solely to financing receivables) and its recorded investment in financing receivables were as follows (in thousands):

December 31, 2013		Notes Receivable		Finance Leases			Total
Allowance for credit losses:
Ending balance	$	-	$	-		$	-
Ending balance: individually evaluated for impairment	$	-	$	-		$	-
Ending balance: collectively evaluated for impairment	$	-	$	-		$	-
Ending balance: loans acquired with deteriorated credit quality	$	-	$	-		$	-
Financing receivables:
Ending balance	$	526	$	10,823	1	$	11,349
Ending balance: individually evaluated for impairment	$	526	$	10,823		$	11,349
Ending balance: collectively evaluated for impairment	$	-	$	-		$	-
Ending balance: loans acquired with deteriorated credit quality	$	-	$	-		$	-
1Includes $13 of unamortized initial direct costs

December 31, 2012		Notes Receivable			Finance Leases			Total
Allowance for credit losses:
Ending balance	$	54		$	-		$	54
Ending balance: individually evaluated for impairment	$	54		$	-		$	54
Ending balance: collectively evaluated for impairment	$	-		$	-		$	-
Ending balance: loans acquired with deteriorated credit quality	$	-		$	-		$	-
Financing receivables:
Ending balance	$	1,019	2	$	12,477	3	$	13,496
Ending balance: individually evaluated for impairment	$	1,019		$	12,477		$	13,496
Ending balance: collectively evaluated for impairment	$	-		$	-		$	-
Ending balance: loans acquired with deteriorated credit quality	$	-		$	-		$	-
2Includes $1 of unamortized initial direct costs
3Includes $24 of unamortized initial direct costs

The Company evaluates the credit quality of its financing receivables on a scale equivalent to the following quality indicators related to corporate risk profiles:

Pass – Any account whose lessee/debtor, co-lessee/debtor or any guarantor has a credit rating on publicly traded or privately placed debt issues as rated by Moody’s or S&P for either Senior Unsecured debt, Long Term Issuer rating or Issuer rating that are in the tiers of ratings generally recognized by the investment community as constituting an Investment Grade credit rating; or, has been determined by the Manager to be an Investment Grade Equivalent or High Quality Corporate Credit per its Credit Policy or has a Not Rated internal rating by the Manager and the account is not considered by the Chief Credit Officer of the manager to fall into one of the three risk profiles below.

Special Mention – Any traditional corporate type account with potential weaknesses (e.g. large net losses or major industry downturns) or, any growth capital account that has less than three months of cash as of the end of the calendarquarter to fund their continuing operations. These accounts deserve management’s close attention. If left uncorrected, those potential weaknesses may result in deterioration of the Fund’s receivable at some future date.

Substandard – Any account that is inadequately protected by the current worth and paying capacity of the borrower or of the collateral pledged, if any. Accounts that are so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Fund will sustain some loss as the likelihood of fully collecting all receivables may be questionable if the deficiencies are not corrected. Such accounts are on the Manager’s Credit Watch List.

Doubtful – Any account where the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Accordingly, an account that is so classified is on the Manager’s Credit Watch List, and has been declared in default and the Manager has repossessed, or is attempting to repossess, the equipment it financed.This category includes impaired notes and leases as applicable.

At December 31, 2013 and 2012, the Company’s financing receivables by credit quality indicator and by class of financing receivables are as follows (excludes initial direct costs) (in thousands):

		Notes Receivable				Finance Leases
		2013		2012		2013		2012
Pass	$	526	$	259	$	10,810	$	12,426
Special mention		-		759		-		27
Substandard		-		-		-		-
Doubtful		-		-		-		-
Total	$	526	$	1,018	$	10,810	$	12,453

There were no impaired loans as of December 31, 2013. As of December 31, 2012, the Company’s impaired loans were as follows (in thousands):

		Impaired Loans
		Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded
Notes receivable	$	-	$	-	$	-	$	-	$	-
With an allowance recorded
Notes receivable		171		171		54		230		19
Total	$	171	$	171	$	54	$	230	$	19

As of December 31, 2013 and 2012 the investment in financing receivables is aged as follows (in thousands):

December 31, 2013		31-60 Days Past Due		61-90 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables		Recorded Investment > 90 Days and Accruing
Notes receivable	$	-	$	-	$	-	$	-	$	526	$	526	$	-
Finance leases		-		-		-		-		10,810		10,810		-
Total	$	-	$	-	$	-	$	-	$	11,336	$	11,336	$	-

December 31, 2012		31-60 Days Past Due		61-90 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables		Recorded Investment > 90 Days and Accruing
Notes receivable	$	-	$	-	$	-	$	-	$	1,018	$	1,018	$	-
Finance leases		22		-		1		23		12,430		12,453		1
Total	$	22	$	-	$	1	$	23	$	13,448	$	13,471	$	1

As discussed in Note 4, no notes receivable were impaired or in non-accrual status as of December 31, 2013. As of December 31, 2012, the Company had an impaired note which was deemed so during the second quarter of 2012. As such, the Fund recorded a $54 thousand fair value adjustment during the second quarter of 2012 to reduce the cost basis of the impaired note.As of December 31, 2012, the amount of the estimated impairment remained the same and the net investment balance outstanding approximated $117 thousand.

During the third quarter of 2012, all past due amounts on this note were received bringing it current at September 30, 2012. Accordingly, the note was returned to accrual status effective October 1, 2012. During the first quarter of 2013, the note was settled prior to its scheduled maturity resulting in a gain of $54 thousand.

As of December 31, 2013, there were no investments in financing receivables with related accounts receivable past due more than 90 days which were still on an accrual basis. As of December 31, 2012, certain investments in financing receivables with related accounts receivable past due more than 90 days were still on an accrual basis based on management’s assessment of the collectability of such receivables. However, these accounts receivable were fully reserved and included in the allowance for doubtful accounts.

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Notes Receivable, Net

12 Months Ended

Dec. 31, 2013

Notes Receivable, Net [Abstract]

Notes Receivable, Net

4.Notes receivable, net:

The Company has various notes receivable from borrowers who have financed the purchase of equipment through the Company. At December 31, 2013, the original terms of the notes receivable are36 to 120 months and bear interest at rates ranging from 8.5% to 16.2%. The notes are secured by the equipment financed. The notes mature from 2014 through 2016.  

There were no notes receivabledeemed impaired or in non-accrual status as of December 31, 2013. There were also no notes receivable in non-accrual status as of December 31, 2012. However, as of the same date, the Company had an impaired note which was deemed so during the second quarter of 2012. As such, the Fund recorded a $54 thousand fair value adjustment during the second quarter of 2012 to reduce the cost basis of the impaired note. As of December 31, 2012, the amount of the estimated impairment remained the same and the net investment balance outstanding approximated $117 thousand.

During the third quarter of 2012, all past due amounts on this note were received bringing it current at September 30, 2012. The note was returned to accrual status effective October 1, 2012, and was fully settled during the first quarter of 2013 prior to its scheduled maturity resulting in a gain of $54 thousand which is reflected on the income statement as part of gain on sales of lease assets and early termination of notes receivable.

As of December 31, 2013, the minimum future payments receivable are as follows (in thousands):

Year ending December 31, 2014	$	229
2015		166
2016		188
		583
Less: portion representing unearned interest income		(57)
Notes receivable, net	$	526

IDC amortization expense related to notes receivable and the Company’s operating and direct financing leases for the years ended December 31, 2013 and 2012 are as follows (in thousands):

		2013		2012
IDC amortization - notes receivable	$	1	$	2
IDC amortization - lease assets		14		23
Total	$	15	$	25

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Notes Receivable, Net (Tables)

12 Months Ended

Dec. 31, 2013

Notes Receivable, Net [Abstract]

Minimum Future Payments Receivable

As of December 31, 2013, the minimum future payments receivable are as follows (in thousands):

Year ending December 31, 2014	$	229
2015		166
2016		188
		583
Less: portion representing unearned interest income		(57)
Notes receivable, net	$	526

Initial Direct Costs, Amortization Expense Related to Notes Receivable and Company's Operating and Direct Finance Leases

IDC amortization expense related to notes receivable and the Company’s operating and direct financing leases for the years ended December 31, 2013 and 2012 are as follows (in thousands):

		2013		2012
IDC amortization - notes receivable	$	1	$	2
IDC amortization - lease assets		14		23
Total	$	15	$	25

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Fair Value Measurements

12 Months Ended

Dec. 31, 2013

Fair Value Measurements [Abstract]

Fair Value Measurements

12.  Fair value measurements:

Fair value measurements and disclosures are based on a fair value hierarchy as determined by significant inputs used to measure fair value. The three levels of inputs within the fair value hierarchy are defined as follows:

Level 1 – Quoted prices in active markets for identical assets or liabilities. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, generally on a national exchange.

Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuations in which all significant inputs are observable in the market.

Level 3 – Valuation is modeled using significant inputs that are unobservable in the market. These unobservable inputs reflect the Company's own estimates of assumptions that market participants would use in pricing the asset or liability.

At December 31, 2013, only the Company’s warrants were measured on a recurring basis. In addition, the Company recorded non-recurring adjustments to reflect the fair values of certain impaired lease and off-lease equipment during 2013. By comparison, the Company had no assets or liabilities that required measurement at fair value on a recurring basis at December 31, 2012; however, the Company recorded non-recurring adjustments to reflect the fair values of certain impaired notes receivable and off-lease equipment during 2012. Balances shown at December 31, 2013 and 2012 reflect the fair value of the then existing impaired assets.

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.

The measurement methodologies are as follows:

Warrants (recurring)

Warrants owned by the Company are not registered for public sale, but are considered derivatives and are carried on the balance sheet at an estimated fair value at the end of the period. The valuation of the warrants was determined using a Black-Scholes formulation of value based upon the stock price(s), the exercise price(s), the volatility of comparable venture companies, and a risk free interest rate for the term(s) of the warrant exercise(s). As of December 31, 2013, the calculated fair value of the Fund’s warrant portfolio approximated $177 thousand. Such valuation is classified within Level 3 of the valuation hierarchy. As of December 31, 2012, the Managing Member estimated the fair value of the warrants to be nominal in amount.

Impaired notes receivable

The fair value of the Company’s notes receivable is estimated using either third party appraisals of collateral or discounted cash flow analyses based upon current market rates for similar types of lending arrangements, with adjustments for non-accrual loans as deemed necessary. The Company had no fair value adjustments relative to impaired notes receivable during 2013. During 2012, the Company had recorded $54 thousand of fair value adjustments to reduce the cost basis of a note deemed impaired. The adjustment was non-recurring and was based upon an independent appraisal of the underlying collateral. Under the Fair Value Measurements Topic of the FASB Accounting Standards Codification, the fair value of the impaired note receivable is classified within Level 3 of the valuation hierarchy. Such valuation utilizes a market approach technique and uses inputs from third party appraisers that utilize current market transactions as adjusted for certain factors specific to the underlying collateral. The note was subsequently settled during the first quarter of 2013 prior to its scheduled maturity.  

Impaired off-lease equipment

During 2013 and 2012, the Company recorded $219 thousand and $71 thousand respectively, of fair value adjustments which reduced the fair value of certain impaired lease and off-lease equipment. All of the aforementioned adjustments were non-recurring. Under the Fair Value Measurements Topic of the FASB Accounting Standards Codification, the fair values of such impaired equipment are classified within Level 3 of the valuation hierarchy as the data sources utilized for the valuation of the assets reflect significant inputs that are unobservable in the market. Such valuation utilizes a market approach technique and uses inputs that reflect the sales price of similar assets sold by affiliates and/or information from third party remarketing agents not readily available in the market. As of December 31, 2013, all impaired lease equipment were either disposed of or were re-categorized to off-lease equipment.

The following table reconciles the beginning and ending balances of the Company’s Level 3 recurring assets (in thousands):

		Level 3 assets
Balance at December 31, 2012	$	-
Unrealized gain on warrants, net recorded during the year		177
Balance at December 31, 2013	$	177

The following table presents the fair value measurement of assets and liabilities measured at fair value on a non-recurring basis and the level within the hierarchy in which the fair value measurements fall at December 31, 2013 and 2012 (in thousands):

		December 31, 2013		Level 1 Estimated Fair Value		Level 2 Estimated Fair Value		Level 3 Estimated Fair Value
Assets measured at fair value on a non-recurring basis:
Impaired off- lease equipment	$	3	$	-	$	-	$	3
		December 31, 2012		Level 1 Estimated Fair Value		Level 2 Estimated Fair Value		Level 3 Estimated Fair Value
Assets measured at fair value on a non-recurring basis:
Impaired notes receivable, net	$	117	$	-	$	-	$	117
Impaired off-lease equipment		2		-		-		2

The following table summarizes 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, 2013:

Name	Valuation Frequency	Valuation Technique	Unobservable Inputs	Range of Input Values
Warrants	Recurring	Black-Scholes Model	Stock price	$1.12 - $5.094
			Exercise price	$0.16 - $5.09
			Time to Maturity (in years)	0.62 - 7.00
			Annual risk-free interest rate	0.11% - 2.28%
			Annualized volatility	17.80% - 100.00%
Lease Equipment	Non-recurring	Market Approach	Third Party Agents' Pricing Quotes - per equipment	$500 (total of $2,500)
			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.

The Company has determined the estimated fair value amounts by using market information and valuation methodologies that it considers appropriate and consistent with the fair value accounting guidance. Considerable judgment is required to interpret market data to develop the estimates of fair value. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

Cash and cash equivalents

The recorded amounts of the Company’s cash and cash equivalents approximate fair value because of the liquidity and short-term maturity of these instruments.

Notes receivable

The fair value of the Company’s notes receivable is estimated using either third party appraisals of collateral or discounted cash flow analyses based upon current market rates for similar types of lending arrangements, with credit risk or estimated collateral liquidation adjustments for impaired loans as deemed necessary.

Investment in securities

The Company’s investment securities are not registered for public sale and are carried at cost which management believes approximates fair value, as appropriately adjusted for impairment.

Non-recourse debt

The fair value of the Company’s non-recourse debt is estimated using discounted cash flow analyses, based upon current market borrowing rates for similar types of borrowing arrangements.

Commitments and Contingencies

Management has determined that 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, 2013 and 2012 (in thousands):

		Fair Value Measurements at December 31, 2013
		Carrying Amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	4,738	$	4,738	$	-	$	-	$	4,738
Notes receivable, net		526		-		-		526		526
Investment in securities		5		-		-		5		5
Warrants		177		-		-		177		177
Financial liabilities:
Non-recourse debt		13,105		-		-		13,575		13,575

		Fair Value Measurements at December 31, 2012
		Carrying Amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	5,217	$	5,217	$	-	$	-	$	5,217
Notes receivable, net		965		-		-		965		965
Investment in securities		5		-		-		5		5
Financial liabilities:
Non-recourse debt		17,384		-		-		18,302		18,302

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Non-Recourse Debt

12 Months Ended

Dec. 31, 2013

Non-Recourse Debt [Abstract]

Non-Recourse Debt

8.Non-recourse debt:

At December 31, 2013, non-recourse debt consists of notes payable to financial institutions. The notes are due in monthly installments. Interest on the notes is at fixed rates ranging from 6.16% to 6.66%. The notes are secured by assignments of lease payments and pledges of assets. At December 31, 2013, gross operating lease rentals and future payments on direct financing leases totaled approximately $14.0 million over the remaining lease terms; and the carrying value of the pledged assets is $13.1 million. The notes mature from 2015 through 2017.

The non-recourse debt does not contain any material financial covenants. The debt is secured by liens granted by the Company to the non-recourse lenders on (and only on) the discounted lease transactions. The lenders have recourse only to the following collateral: the specific 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 lenders, 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 inthe 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, 2014	$	4,568	$	726	$	5,294
2015		4,616		420		5,036
2016		3,743		133		3,876
2017		178		1		179
	$	13,105	$	1,280	$	14,385

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Fair Value Measurements (Summary of Valuation Techniques and Significant Unobservable Inputs Used) (Details) (USD $)	12 Months Ended
	Dec. 31, 2013
Nonrecurring [Member] | Lease Equipment [Member] | Market Approach Valuation Technique [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair value inputs, third party agents' pricing quotes per equipment	$ 500
Fair value inputs, third party agents' pricing quotes, total	$ 2,500
Minimum [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Model [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Share Price	$ 1.12
Exercise price	$ 0.16
Time to Maturity (in years)	7 months 13 days
Annual risk-free interest rate	0.11%
Annualized volatility	17.80%
Maximum [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Model [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Share Price	$ 5.094
Exercise price	$ 5.09
Time to Maturity (in years)	7 years
Annual risk-free interest rate	2.28%
Annualized volatility	100.00%

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Investments in Equipment and Leases, Net

12 Months Ended

Dec. 31, 2013

Investments in Equipment and Leases, Net [Abstract]

Investments in Equipment and Leases, Net

6.Investment in equipment and leases, net:

The Company’s investment in leases consists of the following (in thousands):

		Balance December 31, 2012		Reclassifications, Additions / Dispositions and Impairment Losses		Depreciation/ Amortization Expense or Amortization of Leases		Balance December 31, 2013
Net investment in operating leases	$	11,291	$	(659)	$	(2,226)	$	8,406
Net investment in direct financing leases		12,453		(27)		(1,616)		10,810
Assets held for sale or lease, net		2,289		(1,613)		(20)		656
Initial direct costs, net of accumulated   amortization of $83 at December 31, 2013 and $82 at December 31, 2012		32		-		(14)		18
Total	$	26,065	$	(2,299)	$	(3,876)	$	19,890

For the years ended December 31, 2013 and 2012, IDC amortization expense related to operating leases and direct financing leases was $14 thousand and $23 thousand, respectively (See Note 4).

Impairment of investments in leases and assets held for sale or lease:

Management periodically reviews the carrying values of its assets on leases and assets held for lease or sale. Impairment losses are recorded as an adjustment to the net investment in operating leases. During the year ended December 31, 2013, the Company recorded fair value adjustments totaling $219 thousand to reduce the cost basis of certain impaired lease and off-lease equipment. By comparison, fair value adjustments totaling $71 thousand were recorded during the prior year to reduce the cost basis of impaired off-lease equipment.

As of December 31, 2013 and 2012, there were no lease contracts placed in non-accrual status. As of the same dates, the Company had certain other leases with related accounts receivable aged 90 days or more that had not been placed on non-accrual status. In accordance with Company policy, the related accounts receivable were fully reserved. Management continues to closely monitor these leases for any actual change in collectability status and indication of necessary valuation adjustments.

The Company utilizes a straight line depreciation method for equipment in all of the categories currently in its portfolio of operating lease transactions. Depreciation expense on the Company’s equipment was approximately $2.2 million and $3.3 million for the respective years ended December 31, 2013 and 2012. All of the leased property was acquired during the years 2001 through 2010.

Operating leases:

Property on operating leases consists of the following (in thousands):

		Balance December 31, 2012		Additions		Reclassifications, Dispositions and Impairment Losses		Balance December 31, 2013
Transportation, rail	$	11,891	$	-	$	(256)	$	11,635
Marine vessels		8,958		-		2,242		11,200
Transportation, other		10,439		-		(5,800)		4,639
Manufacturing		2,056		-		118		2,174
Natural gas compressors		1,671		-		-		1,671
Materials handling		2,939		-		(1,556)		1,383
Agriculture		1,151		-		-		1,151
Construction		1,584		-		(825)		759
Other		46		-		11		57
		40,735		-		(6,066)		34,669
Less accumulated depreciation		(29,444)		(2,226)		5,407		(26,263)
Total	$	11,291	$	(2,226)	$	(659)	$	8,406

The average estimated residual value for assets on operating leases was 17% and 16% of the assets’ original cost at December 31, 2013 and 2012, respectively.  There were no operating leases placed in non-accrual status as of December 31, 2013 and 2012.

The Company may earn revenues from its containers, marine vessel and certain other assets based on utilization of such assets or a fixed-term lease. Contingent rentals (i.e., short-term, operating charter hire payments) and the associated expenses are recorded when earned and/or incurred. The revenues associated with these rentals are included as a component of Operating Lease Revenues and totaled $48 thousand and $32 thousand during the years ended December 31, 2013 and 2012, respectively.

During the third quarter of 2012, certain operating lease equipment suffered a total casualty loss. Pursuant to the lease agreement, the Company recorded a receivable totaling $440 thousand, of which $350 thousand represents calculated gain on the casualty loss. The receivable represented a combination of proceeds for the value of the lost asset and related lost revenue for the remaining term of the lease. There was no such loss during 2013.

Direct financing leases:

As of December 31, 2013, investment in direct financing leases consists of mining equipment. As of December 31, 2012, such investment consisted of materials handling and mining equipment as well as office furniture. The following lists the components of the Company’s investment in direct financing leases as of December 31, 2013 and 2012 (in thousands):

		2013		2012
Total minimum lease payments receivable	$	12,584	$	17,118
Estimated residual values of leased equipment (unguaranteed)		3,542		3,569
Investment in direct financing leases		16,126		20,687
Less unearned income		(5,316)		(8,234)
Net investment in direct financing leases	$	10,810	$	12,453

There was no investment in direct financing lease assets in non-accrual status at December 31, 2013 and 2012. However, at December 31, 2012, the Company had certain direct financing leases with related accounts receivable aged 90 days or more that have not been placed on non-accrual status. In accordance with Company policy, the related receivables were fully reserved and included in the allowance for doubtful accounts presented in Note 5.

At December 31, 2013, the aggregate amounts of future minimum lease payments receivable are as follows (in thousands):

		Operating Leases		Direct Financing Leases		Total
Year ending December 31, 2014	$	3,464	$	4,450	$	7,914
2015		2,040		4,450		6,490
2016		372		3,684		4,056
2017		344		-		344
2018		182		-		182
Thereafter		228		-		228
	$	6,630	$	12,584	$	19,214

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Related Party Transactions

12 Months Ended

Dec. 31, 2013

Related Party Transactions [Abstract]

Related Party Transactions

7.Related party transactions:

The terms of the Operating Agreement provide that AFS and/or affiliates are entitled to receive certain fees for equipment management and resale and for management of the Company.

The Operating Agreement allows for the reimbursement of costs incurred by AFS for providing administrative services to the Company. Administrative services provided include Company accounting, finance/treasury, investor relations, legal counsel and lease and equipment documentation. AFS is not reimbursed for services whereby it is entitled to receive a separate fee as compensation for such services, such as management of equipment. The Company will be liable for certain future costs to be incurred by AFS to manage the administrative services provided to the Company.

Each of ATEL Leasing Corporation (“ALC”) and AFS is a wholly-owned subsidiary of ATEL Capital Group and performs services for the Company. Acquisition services, equipment management, lease administration and asset disposition services are performed by ALC; investor relations, communications services and general administrative services for the Company are performed by AFS.

Cost reimbursements to the Managing Member are based on its costs incurred in performing administrative services for the Company. These costs are allocated to each managed entity based on certain criteria such as total assets, number of investors or contributed capital based upon the type of cost incurred. The Operating Agreement places an annual limit and a cumulative limit for cost reimbursements to AFS and/or affiliates. Any reimbursable costs incurred by AFS and/or affiliates during the year exceeding the annual and/or cumulative limits cannot be reimbursed in the current year, though such costs may be recovered in future years to the extent of the cumulative limit. As of December 31, 2013, the Company has not exceeded the annual and/or cumulative limitations discussed above.

AFS and/or affiliates earned fees, commissions and reimbursements, pursuant to the Operating Agreement as follows during each of the years ended December 31, 2013 and 2012 (in thousands):

		2013		2012
Costs reimbursed to Managing Member and/or affiliates	$	676	$	835
Asset management fees to Managing Member and/or affiliates		376		592
	$	1,052	$	1,427

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2013

Commitments and Contingencies [Abstract]

Commitments and Contingencies

9.  Commitments and contingencies:

At December 31, 2013, the Company had nocommitments to purchase lease assets or fund investments in notes receivable.

Gain Contingency

ATEL filed a claim on behalf of the Company and certain affiliated entities in Federal court in New Orleans for the under-reporting of revenue by a fleet manager of three marine vessels, seeking to recover an approximate amount of 10% of gross proceeds, which in the aggregate for all affiliated entities represents $2.8 million for the years 2005-2007 (of which the Company’s portion is an approximate $350 thousand). The annual allocable portion of the claim is not considered material to the Company in any given year. The trial was concluded during the first week of August 2012. In October 2012, the matter was remitted to the Federal Judge to render a decision on both the law and the facts. The decision of the Court was rendered at the end of June 2013 and the court found in favor of the defendants. The Company filed an appeal of the court’s decision and remainshopeful for a recovery of all or portion of its asserted claims.  As a result of the ruling, the defendants filed a claim for legal fees and costs, however, this was denied. The outcome of the Company’s claim remains uncertain as of this date.

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Summary of Significant Accounting Policies (Reconciliation of Net Income Loss Reported in Financial Statements and Federal Tax Return) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Summary of Significant Accounting Policies [Abstract]
Net income per financial statements	$ 5,226	$ 5,562
Adjustment to depreciation expense	337	(802)
Provision for losses and doubtful accounts	(51)	(15)
Adjustments to revenues / other expenses	1,671	1,414
Adjustments to gain on sales of assets	940	(87)
Other	(170)	125
Income per federal tax return (unaudited)	$ 7,953	$ 6,197

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Related Party Transactions (Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Related Party Transactions [Abstract]
Costs reimbursed to Managing Member and/or affiliates	$ 676	$ 835
Asset management fees to Managing Member and/or affiliates	376	592
Total expenses from transactions with related party	$ 1,052	$ 1,427

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Summary Of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2013

Summary of Significant Accounting Policies [Abstract]

Summary of Geographic Information Relating to Sources, by Nation, of Partnership's Total Revenue and Long-Lived Assets

The table below summarizes geographic information relating to the sources, by nation, of the Company’s total revenues for the years ended December 31, 2013 and 2012 and long-lived assets as of December 31, 2013 and 2012 (dollars in thousands):

		For the year ended December 31,
		2013	% of Total		2012	% of Total
Revenue
United States	$	10,207	97%	$	12,653	95%
Canada		148	2%		361	3%
United Kingdom		138	1%		287	2%
Total International		286	3%		648	5%
Total	$	10,493	100%	$	13,301	100%
		As of December 31,
		2013	% of Total		2012	% of Total
Long-lived assets
United States	$	19,803	100%	$	25,571	98%
Canada		-	0%		340	1%
United Kingdom		87	0%		154	1%
Total International		87	0%		494	2%
Total	$	19,890	100%	$	26,065	100%

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, 2013 and 2012 as follows (in thousands):

		2013		2012
Financial statement basis of net assets	$	12,347	$	14,940
Tax basis of net assets (unaudited)		15,451		15,317
Difference	$	(3,104)	$	(377)

Reconciliation of Net Income Loss Reported in Financial Statements and Federal Tax Return

The following reconciles the net income reported in these financial statements to the income reported on the Company’s federal tax return (unaudited) for each of the years ended December 31, 2013 and 2012 (in thousands):

		2013		2012
Net income per financial statements	$	5,226	$	5,562
Tax adjustments (unaudited):
Adjustment to depreciation expense		337		(802)
Provision for losses and doubtful accounts		(51)		(15)
Adjustments to revenues / other expenses		1,671		1,414
Adjustments to gain on sales of assets		940		(87)
Other		(170)		125
Income per federal tax return (unaudited)	$	7,953	$	6,197

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Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2013

Related Party Transactions [Abstract]

Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement

AFS and/or affiliates earned fees, commissions and reimbursements, pursuant to the Operating Agreement as follows during each of the years ended December 31, 2013 and 2012 (in thousands):

		2013		2012
Costs reimbursed to Managing Member and/or affiliates	$	676	$	835
Asset management fees to Managing Member and/or affiliates		376		592
	$	1,052	$	1,427

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Investments in Equipment and Leases, Net (Components of Investment in Direct Financing Leases) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Investments in Equipment and Leases, Net [Abstract]
Total minimum lease payments receivable	$ 12,584	$ 17,118
Estimated residual values of leased equipment (unguaranteed)	3,542	3,569
Investment in direct financing leases	16,126	20,687
Less unearned income	(5,316)	(8,234)
Net investment in direct financing leases	$ 10,810	$ 12,453

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Allowance for Credit Losses (Activity in Allowance for Doubtful Accounts) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance	$ 109	$ 70
(Reversal of provision) provision for doubtful accounts	(52)	39
Asset disposal	(54)
Ending Balance	3	109
Allowance For Doubtful Accounts [Member] | Operating Leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance	48	60
(Reversal of provision) provision for doubtful accounts	(45)	(12)
Ending Balance	3	48
Allowance For Doubtful Accounts [Member] | Finance Leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance	7	10
(Reversal of provision) provision for doubtful accounts	(7)	(3)
Ending Balance		7
Valuation Adjustments on Financing Receivables [Member] | Notes Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance	54
(Reversal of provision) provision for doubtful accounts		54
Asset disposal	(54)
Ending Balance		54
Valuation Adjustments on Financing Receivables [Member] | Finance Leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance
(Reversal of provision) provision for doubtful accounts
Asset disposal
Ending Balance

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Statements of Changes in Members' Capital (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Beginning Balance	$ 14,940	$ 17,197
Distributions to Other Members ($0.60 per Unit)	(7,233)	(7,233)
Distributions to Managing Member	(586)	(586)
Net income	5,226	5,562
Ending Balance	12,347	14,940
Other Members [Member]
Beginning Balance (in units)	12,055,016	12,055,016
Beginning Balance	14,940	17,197
Distributions to Other Members ($0.60 per Unit)	(7,233)	(7,233)
Net income	4,640	4,976
Ending Balance (in units)	12,055,016	12,055,016
Ending Balance	12,347	14,940
Managing Member [Member]
Distributions to Managing Member	(586)	(586)
Net income	$ 586	$ 586

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Concentration of Credit Risk and Major Customer

12 Months Ended

Dec. 31, 2013

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 AFS’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, 2013 and 2012, 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:

	2013	2012
Mining	29%	23%
Marine transportation/Transportation, other	28%	13%
Transportation, rail	24%	18%
Paper products	11%	*
*  Less than 10%

During 2013, two lessees generated a significant portion of the Company’s total leasing and lending revenues (excluding gains or losses on disposition of assets). With significant defined as greater than or equal to 10%, The Sabine Mining Company and Union Pacific Railroad Company’s lease revenues to the Company approximated $2.9 million and $807 thousand for 2013, respectively, or 34% and 10% of the Company’s total leasing and lending revenues. By comparison, during 2012, only The Sabine Mining Company generated more than 10% of the Company’s total leasing and lending revenues, with revenues to the Company of $3.2 million or 26%. The 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.

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Fair Value Measurements (Reconciliation of Level 3 Assets) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unrealized gain on warrants, net recorded during the year	$ 177
Level 3 Estimated Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Balance at December 31, 2012
Unrealized gain on warrants, net recorded during the year	177
Balance at December 31, 2013	$ 177

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Non-Recourse Debt (Tables)

12 Months Ended

Dec. 31, 2013

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, 2014	$	4,568	$	726	$	5,294
2015		4,616		420		5,036
2016		3,743		133		3,876
2017		178		1		179
	$	13,105	$	1,280	$	14,385

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Notes Receivable, Net (Minimum Future Payments Receivable) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Notes Receivable, Net [Abstract]
Year ending December 31, 2014	$ 229
2015	166
2016	188
Notes receivable, gross	583
Less: portion representing unearned interest income	(57)	(123)
Notes receivable, net	$ 526	$ 965

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Summary of Significant Accounting Policies (Policy)

12 Months Ended

Dec. 31, 2013

Summary of Significant Accounting Policies [Abstract]

Basis of Presentation

Basis of presentation:

The accompanying balance sheets as of December 31, 2013 and 2012, and the related statements of income, 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 have been reclassified to conform to the current year presentation. These reclassifications had no significant effect on the reported financial position or results of operations.

Footnote and tabular amounts are presented in thousands, except as to Units and per Unit data.

In preparing the accompanying financial statements, the Company has reviewed, as determined necessary by the Managing Member, events that have occurred after December 31, 2013, up until the issuance of the financial statements. No events were noted which would require disclosure in the footnotes to the financial statements.

Use of Estimates

Use of estimates:

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Such estimates relate primarily to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes and determination of the allowance for doubtful accounts.

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.

Credit Risk

Credit risk:

Financial instruments that potentially subject the Company to concentrations of credit risk include cash and cash equivalents, operating and direct financing lease receivables, notes receivable and accounts receivable. The Company generally places the majority of its cash deposits in noninterest-bearing accounts with financial institutions that have no less than $10 billion in assets. Such deposits are insured up to $250 thousand. The remainder of the Funds’ cash is temporarily invested in U.S. Treasury denominated instruments. The concentration of such deposits and temporary cash investments is not deemed to create a significant risk to the Company. Accounts and notes receivable represent amounts due from lessees or borrowers in various industries, related to equipment on operating and direct financing leases or notes receivable.

Accounts Receivable

Accounts receivable:

Accounts receivable represent the amounts billed under operating and direct financing lease contracts, and notes receivable which are 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 charged off to the allowance on a specific identification basis. Amounts recovered that were previously written-off are recorded as other income in the period received.

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. 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.

The Company earns revenues from its marine vessel based on charter utilization of the vessel or a fixed term lease. When the vessel is chartered, contingent rentals and the associated expenses are recorded when earned and/or incurred. From time to time, the Company incurs “drydocking” costs on its vessel. Drydocking costs include labor and material costs related to refurbishing, overhauling and/or replacing engine and other major mechanical components of the vessel, hull maintenance and other repairs that bring the vessel into seaworthy compliance with U.S. marine codes in order to have it certified as available for charter. Such drydocking costs are capitalized and added to the equipment cost and depreciated over the period between scheduled drydockings, which generally occur every 24 to 30 months.

Direct Financing Leases and Related Revenue Recognition

Direct financing leases and related revenue recognition:

Income from direct financing lease transactions is reported using the financing method of accounting, in which the Company’s investment in the leased property is reported as a receivable from the lessee to be recovered through future rentals. The interest income portion of each rental payment is calculated so as to generate a constant rate of return on the net receivable outstanding.

Allowances for losses on direct financing leases are typically established based on historical charge off and collection experience and the collectability of specifically identified lessees and billed and unbilled receivables. Direct financing leases are charged off to the allowance as they are deemed uncollectible.

Direct financing leases are generally placed in a non-accrual status (i.e., no revenue is recognized) and deemed impaired when payments are more than 90 days past due. Additionally, management periodically reviews the creditworthiness of all direct finance lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related direct financing 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, all payments received are applied only against outstanding principal balances.

Notes Receivable, Unearned Interest Income and Related Revenue Recognition

Notes receivable, unearned interest income and related revenue recognition:

The Company records all future payments of principal and interest on notes as notes receivable which is then offset by the amount of any related unearned interest income. For financial statement purposes, the Company reports only the net amount of principal due on the balance sheet. The unearned interest is recognized over the term of the note and the income portion of each note payment is calculated so as to generate a constant rate of return on the net balance outstanding. Any fees or costs related to notes receivable are recorded as part of the net investment in notes receivable and amortized over the term of the loan.

Allowances for losses on notes receivable are typically established based on historical charge off and collection experience and the collectability of specifically identified borrowers and billed and unbilled receivables. Notes are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and/or interest when due according to the contractual terms of the note agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. If it is determined that a loan is impaired with regard to scheduled payments, the Company will perform an analysis of the note to determine if an impairment valuation reserve is necessary. This analysis considers the estimated cash flows from the note, or the collateral value of the property underlying the note when note repayment is collateral dependent. Any required valuation reserve is charged to earnings when determined; and notes are charged off to the allowance for losses as they are deemed uncollectible.

Notes receivable are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management periodically reviews the creditworthiness of companies with note payments outstanding less than 90 days. Based upon management’s judgment, notes may be placed in a non-accrual status. Notes placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid receivable is probable.Until such time, all payments received are applied only against outstanding principal balances.

Initial Direct Costs

Initial direct costs:

The Company capitalizes initial direct costs (“IDC”) associated with the origination and funding of lease assets and investments in notes receivable. IDC includes both internal costs (e.g., the costs of employees’ activities in connection with successful lease and loan originations) and external broker fees incurred with such originations. The costs are amortized on a lease by lease (or note by note) basis based on actual contract term using a straight-line method for operating leases and the effective interest rate method for direct financing leases and notes receivable. Upon disposal of the underlying lease or loan assets, both the initial direct costs and the associated accumulated amortization are relieved. Costs related to leases or notes receivable that are not consummated are not eligible for capitalization as initial direct costs and are expensed as acquisition expense.

Acquisition Expense

Acquisition expense:

Acquisition expense represents costs which include, but are not limited to, legal fees and expenses, travel and communication expenses, cost of appraisals, accounting fees and expenses and miscellaneous expenses related to the selection and acquisition of equipment which are reimbursable to the Managing Member under the terms of the Operating Agreement. As the costs are not eligible for capitalization as initial direct costs, such amounts are expensed as incurred.

Asset Valuation

Asset valuation:

Recorded values of the Company’s leased asset portfolio are periodically reviewed for impairment. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than their net book value. The estimated undiscounted future cash flows are the sum of the estimated residual value of the asset at the end of the asset’s expected holding period and estimates of undiscounted future rents. 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 market place 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.

Segment Reporting

Segment reporting:

The Company is not organized by multiple operating segments for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in one reportable operating segment in the United States.

The 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 regions in which the Company seeks leasing and lending opportunities are North America and Europe. The table below summarizes geographic information relating to the sources, by nation, of the Company’s total revenues for the years ended December 31, 2013 and 2012 and long-lived assets as of December 31, 2013 and 2012 (dollars in thousands):

		For the year ended December 31,
		2013	% of Total		2012	% of Total
Revenue
United States	$	10,207	97%	$	12,653	95%
Canada		148	2%		361	3%
United Kingdom		138	1%		287	2%
Total International		286	3%		648	5%
Total	$	10,493	100%	$	13,301	100%
		As of December 31,
		2013	% of Total		2012	% of Total
Long-lived assets
United States	$	19,803	100%	$	25,571	98%
Canada		-	0%		340	1%
United Kingdom		87	0%		154	1%
Total International		87	0%		494	2%
Total	$	19,890	100%	$	26,065	100%

Foreign Currency Transactions

Foreign currency transactions:

Foreign currency transaction gains and losses are reported in the results of operations as “other income” or “other expense” in the period in which they occur. Currently, the Company does not use derivative instruments to hedge its economic exposure with respect to assets, liabilities and firm commitments as the foreign currency transactions risks to date have not been significant. During the year ended December 31, 2013, the Company’s foreign currency translations gains and losses netted to near $0. By comparison, during the year ended December 31, 2012, the Company recognized foreign currency losses totaling $8 thousand, which are included in other expense, net.

Investment in Securities

Investment in securities:

Purchased securities

Purchased securities are generally not registered for public sale and are carried at cost. Such securities are adjusted to fair value if the fair value is less than the carrying value and such impairment is deemed by the Managing Member to be other than temporary. Factors considered by the Managing Member in determining fair value include, but are not limited to, available financial information, the issuer’s ability to meet its current obligations and indications of the issuer’s subsequent ability to raise capital. There were neither impaired securities at December 31, 2013 and 2012 nor investment securities sold or disposed of during the years ended December 31, 2013 and 2012.

Warrants

Warrants owned by the Company are not registered for public sale, but are considered derivatives and are carried at an estimated fair value on the balance sheet at the end of the year, as determined by the Managing Member. At December 31, 2013, the Company’s portfolio of warrants had an estimated fair value of $177 thousand. At December 31, 2012, the Managing Member estimated the fair value of the warrants to be nominal in amount. During 2013, the Company recognized nominal gains on the net exercise of certain warrants. By comparison, gains recognized on the net exercise of warrants amounted to an approximate $16 thousand in 2012.

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 income taxes for only those states which levy income taxes on partnerships. For the years ended December 31, 2013 and 2012, the related provision for state income taxes was approximately $112 thousand and $99 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, 2013 and 2012 as follows (in thousands):

		2013		2012
Financial statement basis of net assets	$	12,347	$	14,940
Tax basis of net assets (unaudited)		15,451		15,317
Difference	$	(3,104)	$	(377)

The primary differences between the tax bases of net assets and the amounts recorded in the financial statements are the result of differences in accounting for syndication costs and differences between the depreciation methods used in the financial statements and the Company’s tax returns.

The following reconciles the net income reported in these financial statements to the income reported on the Company’s federal tax return (unaudited) for each of the years ended December 31, 2013 and 2012 (in thousands):

		2013		2012
Net income per financial statements	$	5,226	$	5,562
Tax adjustments (unaudited):
Adjustment to depreciation expense		337		(802)
Provision for losses and doubtful accounts		(51)		(15)
Adjustments to revenues / other expenses		1,671		1,414
Adjustments to gain on sales of assets		940		(87)
Other		(170)		125
Income per federal tax return (unaudited)	$	7,953	$	6,197

Other Expense, Net

Other expense, net:

Other expense, net for the years ended December 31, 2013 and 2012 consisted solely of net losses on foreign exchange transactions. Such net losses were nominal during 2013 and totaled $8 thousand during the prior year.

Per Unit Data

Per Unit data:

Net income and distributions per Unit are based upon the weighted average number of Other Members’ Units outstanding during the period.

Recent Accounting Pronouncements

Recent accounting pronouncements:

Recent accounting standards updates as issued by the Financial Accounting Standards Board (FASB) were evaluated and determined to be not applicable to the Company.