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 quarterly report on Form 10-Q of ATEL Capital Equipment Fund XI, 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: August 13, 2012

/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 quarterly report on Form 10-Q of ATEL Capital Equipment Fund XI, 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: August 13, 2012

/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 Quarterly Report of ATEL Capital Equipment Fund XI, LLC (the “Company”) on Form 10-Q for the period ended June 30, 2012 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: August 13, 2012

/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 Quarterly Report of ATEL Capital Equipment Fund XI, LLC (the “Company”) on Form 10-Q for the period ended June 30, 2012 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: August 13, 2012

/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.

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Financing Receivable by Credit Quality Indicator and by Class of Financing Receivables (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Financing Receivable, Recorded Investment [Line Items]
Notes Receivable	$ 938	$ 1,097
Finance Leases	270	237
Pass
Financing Receivable, Recorded Investment [Line Items]
Finance Leases	240	188
Special Mention
Financing Receivable, Recorded Investment [Line Items]
Notes Receivable	921	1,097
Finance Leases	30	49
Substandard
Financing Receivable, Recorded Investment [Line Items]
Notes Receivable	$ 17

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Members' capital - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Other Members Capital Account [Line Items]
Other Members capital account, units issued	5,209,307	5,209,307
Other Members capital account, units outstanding	5,209,307	5,209,307
Other Members capital account, units authorized	15,000,000	15,000,000
Potential repurchase price of Units as Percentage of holder's capital account	100.00%

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Future Minimum Lease Payments Receivable (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012
Operating Leases
Six months ending December 31, 2012	$ 1,804
Year ending December 31, 2013	2,686
2014	1,823
2015	835
2016	158
2017	158
Thereafter	79
Operating Leases, Future Minimum Payments Receivable, Total	7,543
Direct Financing Leases
Six months ending December 31, 2012	154
Year ending December 31, 2013	150
2014	23
2015
2016
2017
Thereafter
Capital Leases, Future Minimum Payments Receivable, Total	327
Total
Six months ending December 31, 2012	1,958
Year ending December 31, 2013	2,836
2014	1,846
2015	835
2016	158
2017	158
Thereafter	79
Operating and Capital Leases, Future Minimum Payments, Receivable, Total	$ 7,870

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Distributions to Other Members (Detail) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Distribution Made to Member or Limited Partner [Line Items]
Distributions	$ 1,204	$ 1,204	$ 2,409	$ 2,409	$ 4,819
Weighted average number of Units outstanding	5,209,307	5,209,307	5,209,307	5,209,307
Weighted average distributions per Unit	$ 0.23	$ 0.23	$ 0.46	$ 0.46

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Property on Operating Leases (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended								6 Months Ended					6 Months Ended
	Jun. 30, 2012	Jun. 30, 2012 Transportation, rail	Jun. 30, 2012 Transportation, other	Jun. 30, 2012 Materials handling	Jun. 30, 2012 Mining	Dec. 31, 2011 Mining	Jun. 30, 2012 Aviation	Dec. 31, 2011 Aviation	Jun. 30, 2012 Construction	Jun. 30, 2012 Marine vessels	Dec. 31, 2011 Marine vessels	Jun. 30, 2012 Manufacturing	Dec. 31, 2011 Manufacturing	Jun. 30, 2012 Logging and lumber	Jun. 30, 2012 Property, Plant and Equipment, Other Types	Jun. 30, 2012 Property Plant and Equipment	Jun. 30, 2012 Accumulated Depreciation
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2011	$ 15,578	$ 11,723	$ 9,656	$ 11,374	$ 2,893	$ 2,893	$ 1,658	$ 1,658	$ 2,241	$ 1,415	$ 1,415	$ 953	$ 953	$ 781		$ 42,694	$ (27,116)
Additions	(1,596)																(1,596)
Reclassifications or Dispositions	(968)	(21)	(69)	(3,399)					(625)					(781)	4	(4,891)	3,923
Balance June 30, 2012	$ 13,014	$ 11,702	$ 9,587	$ 7,975	$ 2,893	$ 2,893	$ 1,658	$ 1,658	$ 1,616	$ 1,415	$ 1,415	$ 953	$ 953		$ 4	$ 37,803	$ (24,789)

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Notes receivable, net - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	6 Months Ended
	Sep. 30, 2011	Jun. 30, 2012	Dec. 31, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable, interest rates		11.58%
Net book value of notes receivable non-accrual status		$ 17
Fair value adjustment on notes receivable	2	8
Cost basis of non-accrual note		$ 7	$ 18
Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Terms of notes receivable		120 months
Notes receivable, interest rates		11.58%
Notes maturity Period		2016
Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable, interest rates		8.42%
Notes maturity Period		2012

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Fair Value Measurement of Impaired Assets Measured on Non-recurring Basis (Detail) (Fair Value, Measurements, Nonrecurring, USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired off-lease equipment	$ 110
Impaired investment securities	32	15
Impaired notes receivable, net	7	18
Level 3 Estimated Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired off-lease equipment	110
Impaired investment securities	32	15
Impaired notes receivable, net	$ 7	$ 18

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Related party transactions (Tables)

6 Months Ended

Jun. 30, 2012

AFS and/ or Affiliates Earned Fees, Commissions, and Billed for Reimbursements Pursuant to Operating

AFS and/or affiliates earned fees and commissions, and billed for reimbursements, pursuant to the Operating Agreement as follows during each of the three and six months ended June 30, 2012 and 2011 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Costs reimbursed to Managing Member and/or affiliates	$	103	$	114	$	216	$	234
Asset management fees to Managing Member and/or affiliates		84		87		172		177
Acquisition and initial direct costs paid to Managing Member		—		20		12		43
	$	187	$	221	$	400	$	454

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Non-recourse debt - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Debt Instrument [Line Items]
Gross operating lease rentals and future payments on direct financing leases	4.9
Carrying value of pledged assets	7.3
Minimum
Debt Instrument [Line Items]
Fixed Interest rate on note	4.33%
Note maturity year	2012
Maximum
Debt Instrument [Line Items]
Fixed Interest rate on note	5.95%
Note maturity year	2015

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Allowance for credit losses - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended	6 Months Ended
	Sep. 30, 2011	Jun. 30, 2012 Contract	Dec. 31, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of notes receivable, non-accrual status		1
Fair value adjustment on notes receivable	$ 2	$ 8
Cost basis of non-accrual note		$ 7	$ 18

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Allowance for Credit Losses (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance			$ 60	$ 24	$ 24
(Reversal of provision) provision for credit losses	(59)	10	(49)	46	36
Ending Balance	11		11		60
Accounts Receivable Allowance for Doubtful Accounts | Notes Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance				6	6
(Reversal of provision) provision for credit losses					(6)
Accounts Receivable Allowance for Doubtful Accounts | Operating Leases
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance			58	18	18
(Reversal of provision) provision for credit losses			(57)		40
Ending Balance	1		1		58
Valuation Adjustments on Financing Receivables | Notes Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance			2
(Reversal of provision) provision for credit losses			8		2
Ending Balance	$ 10		$ 10		$ 2

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Borrowing facilities - Additional Information (Detail) (USD $)	Jun. 30, 2012	Dec. 31, 2011
Line of Credit Facility [Line Items]
Maximum amount of credit facility	$ 60,000,000	$ 75,000,000
Credit Facility expiration date	2013-06
Tangible Net Worth requirement under the Credit Facility	10,000,000
Leverage ratio	0.41
Interest coverage ratio	19.68
Net Worth	11,100,000
Covenant Requirement | Maximum
Line of Credit Facility [Line Items]
Leverage ratio	1.25
Covenant Requirement | Minimum
Line of Credit Facility [Line Items]
Interest coverage ratio	2
Warehouse Agreement Borrowings
Line of Credit Facility [Line Items]
Outstanding borrowings under facility	2,300,000	5,600,000
Warehouse Agreement Borrowings | Maximum
Line of Credit Facility [Line Items]
Contingent obligation	$ 210,000	$ 590,000

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Components of Company's Investment in Direct Financing Leases (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Capital Leased Assets [Line Items]
Total minimum lease payments receivable	$ 327	$ 261
Estimated residual values of leased equipment (unguaranteed)	50	46
Investment in direct financing leases	377	307
Less unearned income	(107)	(70)
Net investment in direct financing leases	$ 270	$ 237

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Summary of significant accounting policies

6 Months Ended

Jun. 30, 2012

Summary of significant accounting policies

2. Summary of significant accounting policies:

Basis of presentation:

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q as mandated by the Securities and Exchange Commission. The unaudited interim financial statements reflect all adjustments which are, in the opinion of the Managing Member, necessary for a fair statement of financial position and results of operations for the interim periods presented. All such adjustments are of a normal recurring nature. Operating results for the three and six months ended June 30, 2012 are not necessarily indicative of the results to be expected for the full year.

Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications had no significant effect on the reported financial position or results of operations.

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

In preparing the accompanying unaudited financial statements, the Managing Member has reviewed events that have occurred after June 30, 2012 up until the issuance of the financial statements. No events were noted which would require disclosure in the footnotes to the financial statements, or adjustments thereto.

Use of estimates:

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Such estimates primarily relate to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes and for determination of the allowance for doubtful accounts and reserve for credit losses on notes receivable.

Segment reporting:

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

The primary geographic regions in which the Company seeks leasing opportunities are North America and Europe. The table below summarizes geographic information relating to the sources, by nation, of the Company’s total revenues for the six months ended June 30, 2012 and 2011 and long-lived assets as of June 30, 2012 and December 31, 2011 (dollars in thousands):

	For The Six Months Ended June 30,
	2012		% of Total			2011		% of Total
Revenue
United States	$	3,253		94	%	$	3,481		92	%
United Kingdom		201		6	%		322		8	%
Total International		201		6	%		322		8	%
Total	$	3,454		100	%	$	3,803		100	%

	As of June 30,					As of December 31,
	2012		% of Total			2011		% of Total
Long-lived assets
United States	$	13,415		98	%	$	15,782		98	%
United Kingdom		273		2	%		362		2	%
Total International		273		2	%		362		2	%
Total	$	13,688		100	%	$	16,144		100	%

Investment in securities:

From time to time, the Company may purchase securities of its borrowers or receive warrants to purchase securities in connection with its lending arrangements.

Purchased securities

Purchased securities are generally not registered for public sale and are carried at cost. Such securities are adjusted to fair value if the fair value is less than the carrying value and such impairment is deemed by the Managing Member to be other than temporary. Factors considered by the Managing Member in determining fair value include, but are not limited to, available financial information, the issuer’s ability to meet its current obligations and indications of the issuer’s subsequent ability to raise capital. During the first three months of 2012, the Company recorded $32 thousand of fair value adjustments to reduce the cost basis of certain impaired investments. No additional fair value adjustment was deemed necessary through June 30, 2012. By comparison, $57 thousand of fair value adjustments relative to impaired investments were recorded during the first six months of 2011, $2 thousand of which was recorded during the three months ended June 30, 2011.

Warrants

Warrants owned by the Company are not registered for public sale, but are considered derivatives and are carried at an estimated fair value, as determined by the Managing Member, on the balance sheet as assets or liabilities. At June 30, 2012 and December 31, 2011, the Managing Member estimated the fair value of the warrants to be nominal in amount. During the three and six months ended June 30, 2012, the Company recorded unrealized gains of $6 thousand and $59 thousand, respectively, relative to the conversion of warrants associated with shares of a venture company. In addition, the Company recognized gains on the net exercise of certain warrants totaling $1 thousand during the three and six months ended June 30, 2012. By comparison, gains realized on the exercise of warrants totaled $25 thousand and $32 thousand for the respective three and six months ended June 30, 2011.

Foreign currency transactions:

Foreign currency transaction gains and losses are reported in the results of operations as “other income” or “other loss” in the period in which they occur. Currently, the Company does not use derivative instruments to hedge its economic exposure with respect to assets, liabilities and firm commitments as the foreign currency transactions risks to date have not been significant. The Company’s net foreign currency translation gains and losses were nominal during both the three- and six-month periods of 2012 and 2011.

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:

In May 2011, the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”) (collectively the “Boards”) issued Accounting Standards Update (“ASU”) No. 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs.” ASU 2011-04 created a uniform framework for applying fair value measurement principles for companies around the world and clarified existing guidance in US GAAP. ASU 2011-04 is effective for the first interim or annual reporting period beginning after December 15, 2011 and shall be applied prospectively. The Company adopted the provisions of ASU 2011-04 effective January 1, 2012. The fair value measurement provisions of ASU 2011-04 had no material impact on the Company’s financial position or results of operations.

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Investment in Leases (Detail) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2012
Leases Disclosure [Line Items]
Balance December 31, 2011	$ 16,144
Reclassifications, Additions/ Dispositions and Impairment Losses	(761)
Depreciation/ Amortization Expense or Amortization of Leases	(1,695)
Balance June 30, 2012	13,688
Operating Leases
Leases Disclosure [Line Items]
Balance December 31, 2011	15,578
Reclassifications, Additions/ Dispositions and Impairment Losses	(968)
Depreciation/ Amortization Expense or Amortization of Leases	(1,596)
Balance June 30, 2012	13,014
Direct Financing Leases
Leases Disclosure [Line Items]
Balance December 31, 2011	237
Reclassifications, Additions/ Dispositions and Impairment Losses	119
Depreciation/ Amortization Expense or Amortization of Leases	(86)
Balance June 30, 2012	270
Assets Held-For-Sale and Lease
Leases Disclosure [Line Items]
Balance December 31, 2011	287
Reclassifications, Additions/ Dispositions and Impairment Losses	88
Balance June 30, 2012	375
Initial Direct Cost
Leases Disclosure [Line Items]
Balance December 31, 2011	42
Depreciation/ Amortization Expense or Amortization of Leases	(13)
Balance June 30, 2012	$ 29

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Fair value measurements (Tables)

6 Months Ended

Jun. 30, 2012

Fair Value Measurement of Impaired Assets Measured on Non-recurring Basis

The following tables presents the fair value measurement of impaired assets measured at fair value on a non-recurring basis and the level within the hierarchy in which the fair value measurements fall at June 30, 2012 and December 31, 2011 (in thousands):

	June 30, 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 off-lease equipment	$	110	$	—	$	—	$	110
Impaired investment securities		32		—		—		32
Impaired notes receivable, net		7		—		—		7

	December 31, 2011		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	$	18	$	—	$	—	$	18
Impaired investment securities		15		—		—		15

Estimated Fair Values of Financial Instruments

The following table presents a summary of the carrying value and fair value by level of financial instruments not recorded at fair value on the Company’s balance sheet at June 30, 2012 and December 31, 2011 (in thousands):

	Fair Value Measurements at June 30, 2012
	Carrying Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	1,790	$	1,790	$	—	$	—	$	1,790
Notes receivable, net		928		—		—		928		928
Investment in securities		227		—		—		227		227
Financial liabilities:
Non-recourse debt		4,545		—		—		4,758		4,758

	December 31, 2011
	Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	$	1,416	$	1,416
Notes receivable, net		1,095		1,095
Investment in securities		200		200
Financial liabilities:
Non-recourse debt		5,542		5,825

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Members' capital (Tables)

6 Months Ended

Jun. 30, 2012

Distributions to Other Members

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Distributions	$	1,204	$	1,204	$	2,409	$	2,409
Weighted average number of Units outstanding		5,209,307		5,209,307		5,209,307		5,209,307
Weighted average distributions per Unit	$	0.23	$	0.23	$	0.46	$	0.46

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Fair value measurements - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended					6 Months Ended
	Jun. 30, 2012	Mar. 31, 2012	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Jun. 30, 2012	Jun. 30, 2011
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Impairment losses on operating off-lease equipment	$ 34			$ 37		$ 34	$ 37
Impairment losses on notes receivable			2			8
Impairment losses on investment securities				2		32	57
Fair Value, Measurements, Nonrecurring
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Impairment losses on operating off-lease equipment	34			37		34	37
Impairment losses on notes receivable			2			8
Impairment losses on investment securities		$ 32			$ 55		$ 2
Percentage of fair value adjustment	(66.00%)			(25.00%)	(87.00%)	(66.00%)	(25.00%)

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Investment in Leases (Parenthetical) (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Leases Disclosure [Line Items]
Initial direct costs, accumulated amortization	$ 101	$ 137

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Organization and Limited Liability Company matters - Additional Information (Detail) (USD $)	1 Months Ended				6 Months Ended
	Jun. 30, 2010	Apr. 30, 2006	Jul. 13, 2005	May 31, 2005	Jun. 30, 2012	Dec. 31, 2011
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Partnership termination date					Dec. 31, 2025
Public offering of Limited Liability Company Units				15,000,000
Public offering of Limited Liability Company Units, price per unit				$ 10
Sale of Limited Liability Company Units, number of units			958,274	120,000
Proceeds from sale of Limited Liability Company Units			$ 9,600,000	$ 1,200,000
Contributions net of rescissions	52,200,000
Gross contributions from Other Members	52,800,000
Repurchase of units, value	636,000
Units issued					5,209,307	5,209,307
Units outstanding					5,209,307	5,209,307
Reinvestment period		6 years
Minimum
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Amount of aggregate subscriptions for Pennsylvania subscriptions to be released to the Fund			$ 7,500,000

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Summary of significant accounting policies - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended			6 Months Ended
	Jun. 30, 2012	Mar. 31, 2012	Jun. 30, 2011	Jun. 30, 2012 Segment	Jun. 30, 2011
Summary Of Significant Accounting Policies [Line Items]
Number of reportable segments				1
Impairment of investment security		$ 32	$ 2		$ 57
Unrealized gain relative to the conversion of warrants	6			59
Gain on exercise of warrants	$ 1		$ 25	$ 1	$ 32

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Organization and Limited Liability Company matters

6 Months Ended

Jun. 30, 2012

Organization and Limited Liability Company matters

1. Organization and Limited Liability Company matters:

ATEL Capital Equipment Fund XI, LLC (the “Company”) was formed under the laws of the State of California on June 25, 2004. The Company was formed for the purpose of acquiring equipment to engage in equipment leasing, lending and sales activities. Also, from time to time, the Company may purchase securities of its borrowers or receive warrants to purchase securities in connection with its lending arrangements. The Managing Member or Manager of the Company is ATEL Financial Services, LLC (“AFS”), a California limited liability company. The Company may continue until December 31, 2025. Each Member’s personal liability for obligations of the Company generally will be limited to the amount of their respective contributions and rights to undistributed profits and assets of the Company.

The Company conducted a public offering of 15,000,000 Limited Liability Company Units (“Units”), at a price of $10 per Unit. On May 31, 2005, subscriptions for the minimum number of Units (120,000, representing $1.2 million) had been received and AFS requested that the subscriptions be released to the Company. On that date, the Company commenced operations in its primary business (acquiring equipment to engage in equipment leasing, lending and sales activities). As of July 13, 2005, the Company had received subscriptions for 958,274 Units ($9.6 million), thus exceeding the $7.5 million minimum requirement for Pennsylvania, and AFS requested that the remaining funds in escrow (from Pennsylvania investors) be released to the Company. The Company terminated sales of Units effective April 30, 2006. Life-to-date net contributions through June 2010 totaled $52.2 million, consisting of approximately $52.8 million in gross contributions from Other Members purchasing Units under the public offering less rescissions and repurchases (net of distributions paid and allocated syndication costs, as applicable) of $636 thousand. As of June 30, 2012, 5,209,307 Units were issued and outstanding.

The Company’s principal objectives are to invest in a diversified portfolio of equipment that (i) preserves, protects and returns the Company’s invested capital; (ii) generates regular distributions to the Members of cash from operations and cash from sales or refinancing, with any balance remaining after certain minimum distributions to be used to purchase additional equipment during the reinvestment period (“Reinvestment Period”) (defined as six full years following the year the offering was terminated), which ends December 31, 2012, and (iii) provides additional distributions following the Reinvestment Period and until all equipment has been sold. The Company is governed by its Limited Liability Company Operating Agreement (“Operating Agreement”), as amended.

Pursuant to the terms of the Operating Agreement, AFS receives compensation for services rendered and reimbursements for costs incurred on behalf of the Company (See Note 6). The Company is required to maintain reasonable cash reserves for working capital, the repurchase of Units and contingencies. The repurchase of Units is solely at the discretion of AFS.

The Company’s unaudited interim financial statements should be read in conjunction with the financial statements and notes thereto contained in the report on Form 10-K for the year ended December 31, 2011, filed with the Securities and Exchange Commission.

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Summary of Geographic Information Relating to Sources, by Nation, of Company's Total Revenues and Long-lived Assets (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 1,567	$ 1,860	$ 3,454	$ 3,803
Percentage of total revenue			100.00%	100.00%
Long-lived assets (net)	13,688		13,688		16,144
Percentage of long-lived assets (net)	100.00%		100.00%		100.00%
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues			3,253	3,481
Percentage of total revenue			94.00%	92.00%
Long-lived assets (net)	13,415		13,415		15,782
Percentage of long-lived assets (net)	98.00%		98.00%		98.00%
United Kingdom
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues			201	322
Percentage of total revenue			6.00%	8.00%
Long-lived assets (net)	273		273		362
Percentage of long-lived assets (net)	2.00%		2.00%		2.00%
Total International
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues			201	322
Percentage of total revenue			6.00%	8.00%
Long-lived assets (net)	$ 273		$ 273		$ 362
Percentage of long-lived assets (net)	2.00%		2.00%		2.00%

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Impaired Loans (Detail) (Notes Receivable, USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Notes Receivable
Financing Receivable, Impaired [Line Items]
Impaired Loans with No Related Allowance Recorded, Recorded Investment
Impaired Loans with No Related Allowance Recorded, Unpaid Principal Balance
Impaired Loans with No Related Allowance Recorded, Related Allowance
Impaired Loans with No Related Allowance Recorded, Average Recorded Investment
Impaired Loans with No Related Allowance Recorded, Interest Income Recognized
Impaired Loans with an Allowance Recorded, Recorded Investment	17	20
Impaired Loans with an Allowance Recorded, Unpaid Principal Balance	17	20
Impaired Loans with an Allowance Recorded, Related Allowance	10	2
Impaired Loans with an Allowance Recorded, Average Recorded Investment	19	20
Impaired Loans with an Allowance Recorded, Interest Income Recognized
Impaired Loans, Recorded Investment	17	20
Impaired Loans, Unpaid Principal Balance	17	20
Impaired Loans, Related Allowance	10	2
Impaired Loans, Average Recorded Investment	19	20
Impaired Loans, Interest Income

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Borrowings Under Facility (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Line of Credit Facility [Line Items]
Total available under the financing arrangement	$ 60,000	$ 75,000
Total remaining available under the working capital, acquisition and warehouse facilities	57,693	67,524
Affiliated partnerships and limited liability companies
Line of Credit Facility [Line Items]
Amount borrowed	$ (2,307)	$ (7,476)

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BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
ASSETS
Cash and cash equivalents	$ 1,790	$ 1,416
Accounts receivable, net of allowance for doubtful accounts of $1 as of June 30, 2012 and $58 as of December 31, 2011	155	411
Notes receivable, net of unearned interest income of $149 and allowance for credit losses of $10 at June 30, 2012 and net of unearned interest income of $191 and allowance for credit losses of $2 at December 31, 2011	928	1,095
Investment in securities	227	200
Investments in equipment and leases, net of accumulated depreciation of $26,145 as of June 30, 2012 and $27,956 as of December 31, 2011	13,688	16,144
Prepaid expenses and other assets	75	10
Total assets	16,863	19,276
Accounts payable and accrued liabilities:
Managing Member	50	111
Accrued distributions to Other Members	551	551
Other	438	321
Non-recourse debt	4,545	5,542
Unearned operating lease income	199	166
Total liabilities	5,783	6,691
Commitments and contingencies
Members' capital:
Managing Member
Other Members	11,080	12,585
Total Members' capital	11,080	12,585
Total liabilities and Members' capital	$ 16,863	$ 19,276

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Investment in equipment and leases, net - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Leases Disclosure [Line Items]
Impairment losses on operating off-lease equipment	$ 34	$ 37	$ 34	$ 37
Depreciation of operating lease assets	$ 793	$ 1,092	$ 1,596	$ 2,393
Average estimated residual value of assets on operating leases	21.00%		21.00%		21.00%

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STATEMENTS OF CHANGES IN MEMBERS' CAPITAL (Parenthetical) (USD $)	6 Months Ended	12 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Distributions to Other Members, per Unit	$ 0.46	$ 0.93

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Investment in Notes Receivable Placed in Non-Accrual Status (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net investment in notes receivable placed in non-accrual status	$ 7	$ 18

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Notes receivable, net (Tables)

6 Months Ended

Jun. 30, 2012

Minimum Future Payments Receivable

The minimum future payments receivable as of June 30, 2012 are as follows (in thousands):

Six months ending December 31, 2012	$	218
Year ending December 31, 2013		295
2014		221
2015		166
2016		187
		1,087
Less: portion representing unearned interest income		(149	)
		938
Less: Reserve for impairment		(10	)
Notes receivable, net	$	928

Investment in Note Receivable Placed in Non-Accrual Status

	June 30, 2012		December 31, 2011
Net investment in notes receivable placed in non-accrual status	$	7	$	18

Initial Direct Costs Amortization Expense Related to Notes Receivable and Operating and Direct Financing Leases

Initial direct costs (“IDC”) amortization expense related to notes receivable and the Company’s operating and direct financing leases for the three and six months ended June 30, 2012 and 2011 are as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
IDC amortization – notes receivable	$	—	$	—	$	—	$	1
IDC amortization – lease assets		6		10		13		25
Total	$	6	$	10	$	13	$	26

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Initial Direct Costs Amortization Expense Related to Notes Receivable and Operating and Direct Financing Leases (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Initial Direct Costs, Notes Receivable and Lease Assets [Line Items]
Amortization of initial direct costs	$ 6	$ 10	$ 13	$ 26
Notes Receivable
Initial Direct Costs, Notes Receivable and Lease Assets [Line Items]
Amortization of initial direct costs				1
Lease Assets
Initial Direct Costs, Notes Receivable and Lease Assets [Line Items]
Amortization of initial direct costs	$ 6	$ 10	$ 13	$ 25

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Investment in equipment and leases, net (Tables)

6 Months Ended

Jun. 30, 2012

Investment in Leases

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

	Balance December 31, 2011		Reclassifications, Additions/ Dispositions and Impairment Losses			Depreciation/ Amortization Expense or Amortization of Leases			Balance June 30, 2012
Net investment in operating leases	$	15,578	$	(968	)	$	(1,596	)	$	13,014
Net investment in direct financing leases		237		119			(86	)		270
Assets held for sale or lease, net		287		88			—			375
Initial direct costs, net of accumulated amortization of $101 at June 30, 2012 and $137 at December 31, 2011		42		—			(13	)		29
Total	$	16,144	$	(761	)	$	(1,695	)	$	13,688

Property on Operating Leases

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

	Balance December 31, 2011			Additions			Reclassifications or Dispositions			Balance June 30, 2012
Transportation, rail	$	11,723		$	—		$	(21	)	$	11,702
Transportation, other		9,656			—			(69	)		9,587
Materials handling		11,374			—			(3,399	)		7,975
Mining		2,893			—			—			2,893
Aviation		1,658			—			—			1,658
Construction		2,241			—			(625	)		1,616
Marine vessels		1,415			—			—			1,415
Manufacturing		953			—			—			953
Logging and lumber		781			—			(781	)		—
Other		—			—			4			4
		42,694			—			(4,891	)		37,803
Less accumulated depreciation		(27,116	)		(1,596	)		3,923			(24,789	)
Total	$	15,578		$	(1,596	)	$	(968	)	$	13,014

Components of Company's Investment in Direct Financing Leases

The components of the Company’s investment in direct financing leases as of June 30, 2012 and December 31, 2011 are as follows (in thousands):

	June 30, 2012			December 31, 2011
Total minimum lease payments receivable	$	327		$	261
Estimated residual values of leased equipment (unguaranteed)		50			46
Investment in direct financing leases		377			307
Less unearned income		(107	)		(70	)
Net investment in direct financing leases	$	270		$	237

Future Minimum Lease Payments Receivable

At June 30, 2012, the aggregate amounts of future minimum lease payments to be received are as follows (in thousands):

	Operating Leases		Direct Financing Leases		Total
Six months ending December 31, 2012	$	1,804	$	154	$	1,958
Year ending December 31, 2013		2,686		150		2,836
2014		1,823		23		1,846
2015		835		—		835
2016		158		—		158
2017		158		—		158
Thereafter		79		—		79
	$	7,543	$	327	$	7,870

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STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Operating activities:
Net income	$ 448	$ 321	$ 1,099	$ 406
Adjustment to reconcile net income to cash provided by operating activities:
(Gain) loss on sales of lease assets and early termination of notes	(77)	6	(200)	1
Depreciation of operating lease assets	793	1,092	1,596	2,393
Amortization of initial direct costs	6	10	13	26
Impairment losses on equipment	34	37	34	37
(Reversal of provision) provision for credit losses	(59)	10	(49)	46
Provision for losses on investment in securities		2	32	57
Gain on sales or dispositions of securities	(1)	(25)	(1)	(32)
Unrealized gain on securities	(6)		(59)
Changes in operating assets and liabilities:
Accounts receivable	200	111	313	(26)
Prepaid expenses and other assets	(68)	6	(65)	9
Accounts payable, Managing Member	(65)	27	(61)	(111)
Accounts payable, other	123	(30)	117	41
Unearned operating lease income	25	(199)	33	(73)
Net cash provided by operating activities	1,353	1,368	2,802	2,774
Investing activities:
Proceeds from sales of lease assets and early termination of notes	418	143	927	220
Principal payments received on direct financing leases	43	58	86	94
Proceeds from sales or dispositions of securities	1	25	1	72
Principal payments received on notes receivable	79	89	159	174
Net cash provided by investing activities	541	315	1,173	560
Financing activities:
Repayments under non-recourse debt	(484)	(585)	(997)	(1,298)
Net cash used in financing activities	(1,786)	(1,887)	(3,601)	(3,902)
Net increase (decrease) in cash and cash equivalents	108	(204)	374	(568)
Cash and cash equivalents at beginning of period	1,682	2,628	1,416	2,992
Cash and cash equivalents at end of period	1,790	2,424	1,790	2,424
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	74	109	156	224
Cash paid during the period for taxes	45	29	45	29
Schedule of non-cash transactions:
Securities acquired through conversion of warrants	6		59
Purchases of equipment on operating leases		1,224		1,224
Other Members Capital
Financing activities:
Distributions to Members	(1,204)	(1,204)	(2,409)	(2,409)
Schedule of non-cash transactions:
Distributions payable at period-end	551	551	551	551
Managing Members
Financing activities:
Distributions to Members	(98)	(98)	(195)	(195)
Schedule of non-cash transactions:
Distributions payable at period-end	$ 45	$ 45	$ 45	$ 45

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BALANCE SHEETS (Parenthetical) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Accounts receivable, allowance for doubtful accounts	$ 1	$ 58
Notes receivable, unearned interest income	149	191
Notes receivable, allowance for credit losses	10	2
Investments in equipment and leases, accumulated depreciation	$ 26,145	$ 27,956

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Guarantees

6 Months Ended

Jun. 30, 2012

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	6 Months Ended
	Jun. 30, 2012	Jul. 31, 2012
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2
Entity Registrant Name	ATEL CAPITAL EQUIPMENT FUND XI, LLC
Entity Central Index Key	0001297667
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Units Outstanding		5,209,307

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Members' capital

6 Months Ended

Jun. 30, 2012

Members' capital

11. Members’ capital:

A total of 5,209,307 Units were issued and outstanding as of June 30, 2012 and December 31, 2011. The Fund was authorized to issue up to 15,000,000 Units. The Company terminated sales of Units effective April 30, 2006.

The Company has the right, exercisable in the Manager’s discretion, but not the obligation, to repurchase Units of a Unit- holder 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.

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Distributions	$	1,204	$	1,204	$	2,409	$	2,409
Weighted average number of Units outstanding		5,209,307		5,209,307		5,209,307		5,209,307
Weighted average distributions per Unit	$	0.23	$	0.23	$	0.46	$	0.46

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STATEMENTS OF INCOME (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Leasing and lending activities:
Operating leases	$ 1,415	$ 1,786	$ 3,071	$ 3,638
Direct financing leases	33	27	45	54
Interest on notes receivable	19	26	41	55
Gain (loss) of sales of lease assets and early termination of notes	77	(6)	200	(1)
Gain on sales or dispositions of securities	1	25	1	32
Unrealized gain on securities	6		59
Other	16	2	37	25
Total revenues	1,567	1,860	3,454	3,803
Expenses:
Depreciation of operating lease assets	793	1,092	1,596	2,393
Asset management fees to Managing Member	84	87	172	177
Acquisition expense		20	12	43
Cost reimbursements to Managing Member	103	114	216	234
(Reversal of provision) provision for credit losses	(59)	10	(49)	46
Impairment losses on equipment	34	37	34	37
Provision for losses on investment in securities		2	32	57
Amortization of initial direct costs	6	10	13	26
Interest expense	72	107	152	224
Professional fees	16	16	65	74
Outside services	24	7	32	15
Other	46	37	81	71
Total operating expenses	1,119	1,539	2,356	3,397
Other income, net			1
Net income	448	321	1,099	406
Net income:
Managing Member	98	98	195	195
Other Members	350	223	904	211
Net income	$ 448	$ 321	$ 1,099	$ 406
Net income per Limited Liability Company Unit (Other Members)	0.07	0.04	0.17	0.04
Weighted average number of Units outstanding	5,209,307	5,209,307	5,209,307	5,209,307

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Investment in equipment and leases, net

6 Months Ended

Jun. 30, 2012

Investment in equipment and leases, net

5. Investment in equipment and leases, net:

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

	Balance December 31, 2011		Reclassifications, Additions/ Dispositions and Impairment Losses			Depreciation/ Amortization Expense or Amortization of Leases			Balance June 30, 2012
Net investment in operating leases	$	15,578	$	(968	)	$	(1,596	)	$	13,014
Net investment in direct financing leases		237		119			(86	)		270
Assets held for sale or lease, net		287		88			—			375
Initial direct costs, net of accumulated amortization of $101 at June 30, 2012 and $137 at December 31, 2011		42		—			(13	)		29
Total	$	16,144	$	(761	)	$	(1,695	)	$	13,688

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 three months ended June 30, 2012 and 2011, the Company deemed certain off-lease equipment to be impaired and accordingly, recorded fair value adjustments of $34 thousand and $37 thousand, respectively, which reduced the cost basis of the impaired equipment. Such amounts also represent the total fair value adjustments for the respective six months ended June 30, 2012 and 2011.

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 $793 thousand and $1.1 million for the respective three months ended June 30, 2012 and 2011, and was approximately $1.6 million and $2.4 million for the respective six months ended June 30, 2012 and 2011.

All of the leased property was acquired during the years 2005 through 2011.

Operating leases:

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

	Balance December 31, 2011			Additions			Reclassifications or Dispositions			Balance June 30, 2012
Transportation, rail	$	11,723		$	—		$	(21	)	$	11,702
Transportation, other		9,656			—			(69	)		9,587
Materials handling		11,374			—			(3,399	)		7,975
Mining		2,893			—			—			2,893
Aviation		1,658			—			—			1,658
Construction		2,241			—			(625	)		1,616
Marine vessels		1,415			—			—			1,415
Manufacturing		953			—			—			953
Logging and lumber		781			—			(781	)		—
Other		—			—			4			4
		42,694			—			(4,891	)		37,803
Less accumulated depreciation		(27,116	)		(1,596	)		3,923			(24,789	)
Total	$	15,578		$	(1,596	)	$	(968	)	$	13,014

The average estimated residual value for assets on operating leases was 21% of the assets’ original cost at both June 30, 2012 and December 31, 2011.

There were no operating lease contracts placed in non-accrual status at June 30, 2012 and December 31, 2011. As of the same dates, the Company has certain other leases that have related accounts receivables aged 90 days or more that have not been placed on non-accrual status. In accordance with Company policy, such receivables are fully reserved. Management continues to closely monitor these leases for any actual change in collectability status and indication of necessary valuation adjustments.

Direct financing leases:

As of June 30, 2012 and December 31, 2011, investment in direct financing leases primarily consists of materials handling, furniture and fixtures, and research equipment. The components of the Company’s investment in direct financing leases as of June 30, 2012 and December 31, 2011 are as follows (in thousands):

	June 30, 2012			December 31, 2011
Total minimum lease payments receivable	$	327		$	261
Estimated residual values of leased equipment (unguaranteed)		50			46
Investment in direct financing leases		377			307
Less unearned income		(107	)		(70	)
Net investment in direct financing leases	$	270		$	237

There were no investments in direct financing lease assets in non-accrual status at June 30, 2012 and December 31, 2011.

At June 30, 2012, the aggregate amounts of future minimum lease payments to be received are as follows (in thousands):

	Operating Leases		Direct Financing Leases		Total
Six months ending December 31, 2012	$	1,804	$	154	$	1,958
Year ending December 31, 2013		2,686		150		2,836
2014		1,823		23		1,846
2015		835		—		835
2016		158		—		158
2017		158		—		158
Thereafter		79		—		79
	$	7,543	$	327	$	7,870

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Allowance for credit losses

6 Months Ended

Jun. 30, 2012

Allowance for credit losses

4. 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, 2010	$	6		$	—	$	18		$	—	$	—	$	24
(Reversal of provision) provision for credit losses		(6	)		—		40			2		—		36
Balance December 31, 2011		—			—		58			2		—		60
(Reversal of provision) provision for credit losses		—			—		(57	)		8		—		(49	)
Balance June 30, 2012	$	—		$	—	$	1		$	10	$	—	$	11

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 June 30, 2012 and December 31, 2011, the Company’s allowance for credit losses (related solely to financing receivables) and its recorded investment in financing receivables were as follows (in thousands):

June 30, 2012	Notes Receivable		Finance Leases		Total
Allowance for credit losses:
Ending balance	$	10	$	—	$	10
Ending balance: individually evaluated for impairment	$	10	$	—	$	10
Ending balance: collectively evaluated for impairment	$	—	$	—	$	—
Ending balance: loans acquired with deteriorated credit quality	$	—	$	—	$	—
Financing receivables:
Ending balance	$	938	$	270	$	1,208
Ending balance: individually evaluated for impairment	$	938	$	270	$	1,208
Ending balance: collectively evaluated for impairment	$	—	$	—	$	—
Ending balance: loans acquired with deteriorated credit quality	$	—	$	—	$	—

December 31, 2011	Notes Receivable		Finance Leases		Total
Allowance for credit losses:
Ending balance	$	2	$	—	$	2
Ending balance: individually evaluated for impairment	$	2	$	—	$	2
Ending balance: collectively evaluated for impairment	$	—	$	—	$	—
Ending balance: loans acquired with deteriorated credit quality	$	—	$	—	$	—
Financing receivables:
Ending balance	$	1,097	$	237	$	1,334
Ending balance: individually evaluated for impairment	$	1,097	$	237	$	1,334
Ending balance: collectively evaluated for impairment	$	—	$	—	$	—
Ending balance: loans acquired with deteriorated credit quality	$	—	$	—	$	—

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 calendar quarter 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 June 30, 2012 and December 31, 2011, 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
	June 30, 2012		December 31, 2011		June 30, 2012		December 31, 2011
Pass	$	—	$	—	$	240	$	188
Special mention		921		1,097		30		49
Substandard		17		—		—		—
Doubtful		—		—		—		—
Total	$	938	$	1,097	$	270	$	237

As of June 30, 2012 and December 31, 2011, the Company’s impaired loans were as follows (in thousands):

	Impaired Loans
June 30, 2012	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		17		17		10		19		—
Total	$	17	$	17	$	10	$	19	$	—

	Impaired Loans
December 31, 2011	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		20		20		2		20		—
Total	$	20	$	20	$	2	$	20	$	—

At June 30, 2012 and December 31, 2011, investment in financing receivables is aged as follows (in thousands):

June 30, 2012	30 – 59 Days Past Due		60 – 89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables		Recorded Investment >90 Days and Accruing
Notes receivable	$	—	$	—	$	—	$	—	$	938	$	938	$	—
Finance leases		31		—		—		31		239		270		—
Total	$	31	$	—	$	—	$	31	$	1,177	$	1,208	$	—

December 31, 2011	30 – 59 Days Past Due		60 – 89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables		Recorded Investment >90 Days and Accruing
Notes receivable	$	—	$	—	$	—	$	—	$	1,097	$	1,097	$	—
Finance leases		12		6		41		59		178		237		41
Total	$	12	$	6	$	41	$	59	$	1,275	$	1,334	$	41

As discussed in Note 3, one of the Company’s note receivable continues to be in non-accrual status at June 30, 2012 and was considered impaired relative to its payment terms. The Company has recorded fair value adjustments of $8 thousand during the first six months of 2012 and $2 thousand during the third quarter of 2011 to reduce the cost basis of the non-accrual note to $7 thousand.

As of June 30, 2012, there were no accounts receivable related to net investments in financing receivables placed in non-accrual status. As of December 31, 2011, certain investments in financing receivables with related accounts receivable past due more than 90 days are still on an accrual basis based on management’s assessment of the collectability of such receivables. However, these accounts receivable are fully reserved and included in the allowance for doubtful accounts presented above.

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Allowance for credit losses (Tables)

6 Months Ended

Jun. 30, 2012

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, 2010	$	6		$	—	$	18		$	—	$	—	$	24
(Reversal of provision) provision for credit losses		(6	)		—		40			2		—		36
Balance December 31, 2011		—			—		58			2		—		60
(Reversal of provision) provision for credit losses		—			—		(57	)		8		—		(49	)
Balance June 30, 2012	$	—		$	—	$	1		$	10	$	—	$	11

Allowance for Credit Losses and Recorded Investment in Financing Receivables

As of June 30, 2012 and December 31, 2011, the Company’s allowance for credit losses (related solely to financing receivables) and its recorded investment in financing receivables were as follows (in thousands):

June 30, 2012	Notes Receivable		Finance Leases		Total
Allowance for credit losses:
Ending balance	$	10	$	—	$	10
Ending balance: individually evaluated for impairment	$	10	$	—	$	10
Ending balance: collectively evaluated for impairment	$	—	$	—	$	—
Ending balance: loans acquired with deteriorated credit quality	$	—	$	—	$	—
Financing receivables:
Ending balance	$	938	$	270	$	1,208
Ending balance: individually evaluated for impairment	$	938	$	270	$	1,208
Ending balance: collectively evaluated for impairment	$	—	$	—	$	—
Ending balance: loans acquired with deteriorated credit quality	$	—	$	—	$	—

December 31, 2011	Notes Receivable		Finance Leases		Total
Allowance for credit losses:
Ending balance	$	2	$	—	$	2
Ending balance: individually evaluated for impairment	$	2	$	—	$	2
Ending balance: collectively evaluated for impairment	$	—	$	—	$	—
Ending balance: loans acquired with deteriorated credit quality	$	—	$	—	$	—
Financing receivables:
Ending balance	$	1,097	$	237	$	1,334
Ending balance: individually evaluated for impairment	$	1,097	$	237	$	1,334
Ending balance: collectively evaluated for impairment	$	—	$	—	$	—
Ending balance: loans acquired with deteriorated credit quality	$	—	$	—	$	—

Financing Receivable by Credit Quality Indicator and by Class of Financing Receivables

At June 30, 2012 and December 31, 2011, 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
	June 30, 2012		December 31, 2011		June 30, 2012		December 31, 2011
Pass	$	—	$	—	$	240	$	188
Special mention		921		1,097		30		49
Substandard		17		—		—		—
Doubtful		—		—		—		—
Total	$	938	$	1,097	$	270	$	237

Impaired Loans

As of June 30, 2012 and December 31, 2011, the Company’s impaired loans were as follows (in thousands):

	Impaired Loans
June 30, 2012	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		17		17		10		19		—
Total	$	17	$	17	$	10	$	19	$	—

	Impaired Loans
December 31, 2011	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		20		20		2		20		—
Total	$	20	$	20	$	2	$	20	$	—

Investment in Financing Receivables by Age

At June 30, 2012 and December 31, 2011, investment in financing receivables is aged as follows (in thousands):

June 30, 2012	30 – 59 Days Past Due		60 – 89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables		Recorded Investment >90 Days and Accruing
Notes receivable	$	—	$	—	$	—	$	—	$	938	$	938	$	—
Finance leases		31		—		—		31		239		270		—
Total	$	31	$	—	$	—	$	31	$	1,177	$	1,208	$	—

December 31, 2011	30 – 59 Days Past Due		60 – 89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables		Recorded Investment >90 Days and Accruing
Notes receivable	$	—	$	—	$	—	$	—	$	1,097	$	1,097	$	—
Finance leases		12		6		41		59		178		237		41
Total	$	12	$	6	$	41	$	59	$	1,275	$	1,334	$	41

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Fair value measurements

6 Months Ended

Jun. 30, 2012

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 June 30, 2012 and December 31, 2011, the Company had no assets or liabilities that require measurement at fair value on a recurring basis.

During the first six months of 2012, the Company recorded non-recurring adjustments to reflect the fair value of impaired off-lease equipment, notes receivable and investment securities. Likewise, during the first half of 2011, the Company recorded non-recurring adjustments to impaired off-lease equipment, notes receivable and investment securities. Amounts at June 30, 2012 and December 31, 2011 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.

Such fair value adjustments utilized the following methodology:

Impaired operating lease and off-lease equipment

During the second quarter of 2012, the Company deemed certain off-lease equipment (assets) to be impaired and accordingly, recorded fair value adjustments of $34 thousand which reduced the cost basis of the equipment. Such amount also represents the total fair value adjustments for the six months ended June 30, 2012. The adjustments are non-recurring. Under the Fair Value Measurements Topic of the FASB Accounting Standards Codification, the fair value of impaired lease assets are classified within Level 3 of the valuation hierarchy as the data sources utilized for the valuation of such assets reflect significant inputs that are unobservable in the market. Such valuation utilizes a market approach technique and uses inputs that reflect the sales price of similar assets sold by affiliates and/or information from third party remarketing agents not readily available in the market.

During the first half of 2011, the Company had recorded $37 thousand of non-recurring fair value adjustments to reduce the cost basis of certain impaired off-lease equipment. The fair values of the impaired equipment were classified with Level 3 of the valuation hierarchy. No additional fair value adjustments were recorded through December 31, 2011.

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 impaired loans as deemed necessary. As of June 30, 2012, the Company had an impaired note receivable which was originally deemed impaired in 2011. The Company has recorded fair value adjustments of $8 thousand during the first six months of 2012 and $2 thousand during the third quarter of 2011 to reduce the cost basis of the impaired note. The adjustments were 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 notes receivable was classified within Level 3 of the valuation hierarchy. Such valuation utilized a market approach technique and used inputs from third party appraisers that utilize current market transactions as adjusted for certain factors specific to the underlying collateral.

Impaired investment securities

The Company’s investment securities are not registered for public sale and are carried at cost. The investment securities are adjusted for impairment, if any, based upon factors which include, but are not limited to, available financial information, the issuer’s ability to meet its current obligations and indications of the issuer’s subsequent ability to raise capital. During the first quarter of 2012, the Company recorded a $32 thousand non-recurring fair value adjustment which reduced the cost basis of an investment security as of March 31, 2012. Such amount also represents the total fair value adjustments for the six months ended June 30, 2012. The adjustment was based on an approximate 66% reduction in valuation as determined by the cash burn rate of the investee, current liquidity, and potential necessity for additional capital infusion by other venture investors.

During the first half of 2011, the Company had recorded fair value adjustments of $2 thousand and $55 thousand which reduced the cost basis of investments deemed impaired at June 30, 2011 and March 31, 2011, respectively. The non-recurring fair value adjustment at June 30, 2011 was based on an approximate 25% reduction in valuation based on the expected value of shares of the venture company as contemplated in its merger agreement terms; and, the non-recurring fair value adjustment at March 31, 2011 was based on an approximate 87% reduction in valuation as determined by the cash burn rate of the investee, current liquidity, and potential necessity for additional capital infusion by other venture investors. No additional fair value adjustments were recorded through December 31, 2011.

Under the Fair Value Measurements Topic of the FASB Accounting Standards Codification, the fair values of the impaired investment securities are classified within Level 3 of the valuation hierarchy at both measurement periods due to the significant inputs that are unobservable in the market.

The following tables presents the fair value measurement of impaired assets measured at fair value on a non-recurring basis and the level within the hierarchy in which the fair value measurements fall at June 30, 2012 and December 31, 2011 (in thousands):

	June 30, 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 off-lease equipment	$	110	$	—	$	—	$	110
Impaired investment securities		32		—		—		32
Impaired notes receivable, net		7		—		—		7

	December 31, 2011		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	$	18	$	—	$	—	$	18
Impaired investment securities		15		—		—		15

The following disclosure of the estimated fair value of financial instruments is made in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification. Fair value estimates, methods and assumptions, set forth below for the Company’s financial instruments, are made solely to comply with the requirements of the Financial Instruments Topic and should be read in conjunction with the Company’s financial statements and related notes.

The Company has determined the estimated fair value amounts by using market information and valuation methodologies that it considers appropriate and consistent with the fair value accounting guidance. Considerable judgment is required to interpret market data to develop the estimates of fair value. 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 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 the current market borrowing rates for similar types of borrowing arrangements.

Commitments and Contingencies

Management has determined that no recognition for the fair value of the Company’s loan commitments is necessary because their terms are made on a market rate basis and require borrowers to be in compliance with the Company’s credit requirements at the time of funding.

The fair value of contingent liabilities (or guarantees) is not considered material because management believes there has been no event that has occurred wherein a guarantee liability has been incurred or will likely be incurred.

The following table presents a summary of the carrying value and fair value by level of financial instruments not recorded at fair value on the Company’s balance sheet at June 30, 2012 and December 31, 2011 (in thousands):

	Fair Value Measurements at June 30, 2012
	Carrying Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	1,790	$	1,790	$	—	$	—	$	1,790
Notes receivable, net		928		—		—		928		928
Investment in securities		227		—		—		227		227
Financial liabilities:
Non-recourse debt		4,545		—		—		4,758		4,758

	December 31, 2011
	Carrying Amount		Estimated Fair Value
Financial assets:
Cash and cash equivalents	$	1,416	$	1,416
Notes receivable, net		1,095		1,095
Investment in securities		200		200
Financial liabilities:
Non-recourse debt		5,542		5,825

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Borrowing facilities

6 Months Ended

Jun. 30, 2012

Borrowing facilities

8. Borrowing facilities:

The Company participates with AFS and certain of its affiliates in a revolving credit facility (the “Credit Facility”) comprised of a working capital facility to AFS, an acquisition facility (the “Acquisition Facility”) and a warehouse facility (the “Warehouse Facility”) to AFS, the Company and affiliates, and a venture facility available to an affiliate with a syndicate of financial institutions which Credit Facility includes certain financial covenants. The Credit Facility is for an amount up to $60 million and expires in June 2013. The lending syndicate providing the Credit Facility has a blanket lien on all of the Company’s assets as collateral for any and all borrowings under the Acquisition Facility, and on a pro-rata basis under the Warehouse Facility.

As of June 30, 2012 and December 31, 2011, borrowings under the facility were as follows (in thousands):

	June 30, 2012			December 31, 2011
Total available under the financing arrangement	$	60,000		$	75,000
Amount borrowed by the Company under the acquisition facility		—			—
Amounts borrowed by affiliated partnerships and Limited Liability Companies under the venture, acquisition and warehouse facilities		(2,307	)		(7,476	)
Total remaining available under the venture, acquisition and warehouse facilities	$	57,693		$	67,524

The Company and its affiliates pay an annual commitment fee to have access to this line of credit. As of June 30, 2012, the aggregate amount of the Credit Facility is potentially available to the Company, subject to certain sub-facility and borrowing-base limitations. However, as amounts are drawn on the Credit Facility by each of the Company and the affiliates who are borrowers under the Credit Facility, the amount remaining available to all borrowers to draw under the Credit Facility is reduced. As the Warehousing Facility is a short term bridge facility, any amounts borrowed under the Warehousing Facility, and then repaid by the affiliated borrowers (including the Company) upon allocation of an acquisition to a specific purchaser, become available under the Warehouse Facility for further short term borrowing.

As of June 30, 2012, the Company’s Tangible Net Worth requirement under the Credit Facility was $10 million, the permitted maximum leverage ratio was not to exceed 1.25 to 1, and the required minimum interest coverage ratio was not to be less than 2 to 1. The Company was in compliance with these financial covenants under the Credit Facility with a minimum Tangible Net Worth, leverage ratio and interest coverage ratio, as calculated per the Credit Facility agreement of $11.1 million, 0.41 to 1, and 19.68 to 1, respectively, as of June 30, 2012. As such, as of June 30, 2012, the Company was in compliance with all material financial covenants, and with all other material conditions of the Credit Facility. The Company does not anticipate any covenant violations nor does it anticipate that any of these covenants will restrict its operations or its ability to procure additional financing.

Fee and interest terms

The interest rate on the Credit Facility is based on either the LIBOR/Eurocurrency rate of 1-, 2-, 3- or 6-month maturity plus a lender designated spread, or the bank’s Prime rate, which re-prices daily. Principal amounts of loans made under the Credit Facility that are prepaid may be re-borrowed on the terms and subject to the conditions set forth under the Credit Facility. At both June 30, 2012 and December 31, 2011, the Company had no outstanding borrowings under the acquisition facility.

Warehouse facility

To hold the assets under the Warehousing Facility prior to allocation to specific investor programs, a Warehousing Trust has been entered into by the Company, AFS, ALC, and certain of the affiliated partnerships and limited liability companies. The Warehousing Trust is used by the Warehouse Facility borrowers to acquire and hold, on a short-term basis, certain lease transactions that meet the investment objectives of each of such entities. Each of the leasing programs sponsored by AFS and ALC currently in its acquisition stage is a pro rata participant in the Warehousing Trust, as described below. When a program no longer has a need for short term financing provided by the Warehousing Facility, it is removed from participation, and as new leasing investment entities are formed by AFS and ALC and commence their acquisition stages, these new entities are added.

As of June 30, 2012, the investment program participants were ATEL Capital Equipment Fund X, LLC, the Company, ATEL 12, LLC, ATEL 14, LLC and ATEL 15, LLC. Pursuant to the Warehousing Trust, the benefit of the lease transaction assets, and the corresponding liabilities under the Warehouse Facility, inure to each of such entities based upon each entity’s pro-rata share in the Warehousing Trust estate. The “pro-rata share” is calculated as a ratio of the net worth of each entity over the aggregate net worth of all entities benefiting from the Warehousing Trust estate, excepting that the trustees, AFS and ALC, are both jointly and severally liable for the pro rata portion of the obligations of each of the affiliated partnerships and limited liability companies participating under the Warehouse Facility. Transactions are financed through this Warehouse Facility only until the transactions are allocated to a specific program for purchase or are otherwise disposed by AFS and ALC. When a determination is made to allocate the transaction to a specific program for purchase by the program, the purchaser repays the debt associated with the asset, either with cash or by means of proceeds of a draw under the Acquisition Facility, and the asset is removed from the Warehouse Facility collateral, and ownership of the asset and any debt obligation associated with the asset are assumed solely by the purchasing entity.

Borrowings of $2.3 million and $5.6 million were outstanding under the Warehouse Facility as of June 30, 2012 and December 31, 2011, respectively. The Company’s maximum contingent obligation on the outstanding warehouse balances at June 30, 2012 and December 31, 2011 was $210 thousand and $590 thousand, respectively.

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Related party transactions

6 Months Ended

Jun. 30, 2012

Related party transactions

6. Related party transactions:

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

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

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

Cost reimbursements to the Managing Member are based on its costs incurred in performing administrative services for the Company. These costs are allocated to each managed entity based on certain criteria such as managed assets, number of investors or contributed capital based upon the type of cost incurred.

The Operating Agreement places an annual limit and a cumulative limit for cost reimbursements to AFS and/or affiliates. Any reimbursable costs incurred by AFS and/or affiliates during the year exceeding the annual and/or cumulative limits cannot be reimbursed in the current year, though such costs may be reimbursable in future years to the extent of the cumulative limit. As of June 30, 2012, the Company has not exceeded the annual and/or cumulative limitations discussed above.

AFS and/or affiliates earned fees and commissions, and billed for reimbursements, pursuant to the Operating Agreement as follows during each of the three and six months ended June 30, 2012 and 2011 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Costs reimbursed to Managing Member and/or affiliates	$	103	$	114	$	216	$	234
Asset management fees to Managing Member and/or affiliates		84		87		172		177
Acquisition and initial direct costs paid to Managing Member		—		20		12		43
	$	187	$	221	$	400	$	454

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Non-recourse debt

6 Months Ended

Jun. 30, 2012

Non-recourse debt

7. Non-recourse debt:

At June 30, 2012, 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 4.33% to 5.95%. The notes are secured by assignments of lease payments and pledges of assets. At June 30, 2012,gross lease rentals totaled approximately $4.9 million over the remaining lease terms; and the carrying value of the pledged assets is approximately $7.3 million. The notes mature from 2012 through 2015.

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 in the equipment finance industry, and are viewed by such industry as being consistent with non-recourse discount financing obligations. Accordingly, as there are no financial covenants or ratios imposed on the Company in connection with the non-recourse debt, the Company has determined that there are no material covenants with respect to the non-recourse debt that warrant footnote disclosure.

Future minimum payments of non-recourse debt are as follows (in thousands):

	Principal		Interest		Total
Six months ending December 31, 2012	$	893	$	111	$	1,004
Year ending December 31, 2013		1,700		155		1,855
2014		1,313		73		1,386
2015		639		17		656
	$	4,545	$	356	$	4,901

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Commitments

6 Months Ended

Jun. 30, 2012

Commitments

9. Commitments:

At June 30, 2012, the Company had no commitments to either purchase lease assets or fund loans.

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Minimum Future Payments Receivable (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
Six months ending December 31, 2012	$ 218
Year ending December 31, 2013	295
2014	221
2015	166
2016	187
Financing Receivable, Gross, Total	1,087
Less: portion representing unearned interest income	(149)	(191)
Notes Receivable	938	1,097
Less: Reserve for impairment	(10)	(2)
Notes receivable, net	$ 928	$ 1,095

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Future Minimum Payments of Non-recourse Debt (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012
Principal
Six months ending December 31, 2012	$ 893
Year ending December 31, 2013	1,700
2014	1,313
2015	639
Long-term Debt, Total	4,545
Interest
Six months ending December 31, 2012	111
Year ending December 31, 2013	155
2014	73
2015	17
Long Term Debt Interest, Total	356
Total
Six months ending December 31, 2012	1,004
Year ending December 31, 2013	1,855
2014	1,386
2015	656
Long Term Debt Principal and Interest, Total	$ 4,901

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Summary of significant accounting policies (Tables)

6 Months Ended

Jun. 30, 2012

Summary of Geographic Information Relating to Sources, by Nation, of Company's Total Revenues and Long-lived Assets

The table below summarizes geographic information relating to the sources, by nation, of the Company’s total revenues for the six months ended June 30, 2012 and 2011 and long-lived assets as of June 30, 2012 and December 31, 2011 (dollars in thousands):

	For The Six Months Ended June 30,
	2012		% of Total			2011		% of Total
Revenue
United States	$	3,253		94	%	$	3,481		92	%
United Kingdom		201		6	%		322		8	%
Total International		201		6	%		322		8	%
Total	$	3,454		100	%	$	3,803		100	%

	As of June 30,					As of December 31,
	2012		% of Total			2011		% of Total
Long-lived assets
United States	$	13,415		98	%	$	15,782		98	%
United Kingdom		273		2	%		362		2	%
Total International		273		2	%		362		2	%
Total	$	13,688		100	%	$	16,144		100	%

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Non-recourse debt (Tables)

6 Months Ended

Jun. 30, 2012

Future Minimum Payments of Non-recourse Debt

Future minimum payments of non-recourse debt are as follows (in thousands):

	Principal		Interest		Total
Six months ending December 31, 2012	$	893	$	111	$	1,004
Year ending December 31, 2013		1,700		155		1,855
2014		1,313		73		1,386
2015		639		17		656
	$	4,545	$	356	$	4,901

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AFS and/ or Affiliates Earned Fees, Commissions, and Billed for Reimbursements Pursuant to Operating Agreement (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Related Party Transaction [Line Items]
Costs reimbursed to Managing Member and/or affiliates	$ 103	$ 114	$ 216	$ 234
Asset management fees to Managing Member and/or affiliates	84	87	172	177
Acquisition and initial direct costs paid to Managing Member		20	12	43
Related Party Transaction, Expenses from Transactions with Related Party, Total	$ 187	$ 221	$ 400	$ 454

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Investment in Financing Receivables by Age (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	$ 31	$ 12
60 - 89 Days Past Due		6
Greater Than 90 Days		41
Total Past Due	31	59
Current	1,177	1,275
Total Financing Receivables	1,208	1,334
Recorded Investment >90 Days and Accruing		41
Notes Receivable
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	938	1,097
Total Financing Receivables	938	1,097
Finance Leases
Financing Receivable, Recorded Investment, Past Due [Line Items]
30 - 59 Days Past Due	31	12
60 - 89 Days Past Due		6
Greater Than 90 Days		41
Total Past Due	31	59
Current	239	178
Total Financing Receivables	270	237
Recorded Investment >90 Days and Accruing		$ 41

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STATEMENTS OF CHANGES IN MEMBERS' CAPITAL (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended	6 Months Ended		12 Months Ended
	Jun. 30, 2012	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Beginning Balance		$ 12,585	$ 16,384	$ 16,384
Distributions to Other Members ($0.46 per Unit in 2012 and $0.93 per Unit in 2011)	(1,204)	(2,409)	(2,409)	(4,819)
Distributions to Managing Member		(195)		(391)
Net income	448	1,099	406	1,411
Ending Balance	11,080	11,080		12,585
Other Members
Beginning Balance (in units)		5,209,307	5,209,307	5,209,307
Ending Balance (in units)	5,209,307	5,209,307		5,209,307
Beginning Balance		12,585	16,384	16,384
Distributions to Other Members ($0.46 per Unit in 2012 and $0.93 per Unit in 2011)		(2,409)		(4,819)
Net income		904		1,020
Ending Balance	11,080	11,080		12,585
Managing Member
Distributions to Managing Member		(195)		(391)
Net income		$ 195		$ 391

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Notes receivable, net

6 Months Ended

Jun. 30, 2012

Notes receivable, net

3. Notes receivable, net:

The Company has various notes receivable from borrowers who have financed the purchase of equipment through the Company. The terms of the notes receivable are generally up to 120 months and bear interest at rates ranging from 8.42% to 11.58%. The notes are secured by the equipment financed, and mature from 2012 through 2016.

The Company had a note in non-accrual status at June 30, 2012 and December 31, 2011. The note was originally placed in non-accrual status in 2010, at which time, its term was modified to defer the repayment of principal until April 2012 while maintaining interest-only payments at the original rate of 11.58%. During the period from April 1, 2012 through the quarter end, the interest only payment arrangement was continued pending a final resolution of the note or a further restructuring of its terms. As of June 30, 2012, the aforementioned note reflects a principal balance outstanding of $17 thousand. The Company has recorded fair value adjustments of $8 thousand during the first six months of 2012 and $2 thousand during the third quarter of 2011 to reduce the cost basis of the non-accrual note to $7 thousand.

The minimum future payments receivable as of June 30, 2012 are as follows (in thousands):

Six months ending December 31, 2012	$	218
Year ending December 31, 2013		295
2014		221
2015		166
2016		187
		1,087
Less: portion representing unearned interest income		(149	)
		938
Less: Reserve for impairment		(10	)
Notes receivable, net	$	928

	June 30, 2012		December 31, 2011
Net investment in notes receivable placed in non-accrual status	$	7	$	18

Initial direct costs (“IDC”) amortization expense related to notes receivable and the Company’s operating and direct financing leases for the three and six months ended June 30, 2012 and 2011 are as follows (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
IDC amortization – notes receivable	$	—	$	—	$	—	$	1
IDC amortization – lease assets		6		10		13		25
Total	$	6	$	10	$	13	$	26

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Estimated Fair Values of Financial Instruments (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Carrying Amount
Financial assets:
Cash and cash equivalents	$ 1,790	$ 1,416
Notes receivable, net	928	1,095
Investment in securities	227	200
Financial liabilities:
Non-recourse debt	4,545	5,542
Estimated Fair Value
Financial assets:
Cash and cash equivalents	1,790	1,416
Notes receivable, net	928	1,095
Investment in securities	227	200
Financial liabilities:
Non-recourse debt	4,758	5,825
Estimated Fair Value | Level 1 Estimated Fair Value
Financial assets:
Cash and cash equivalents	1,790
Estimated Fair Value | Level 3 Estimated Fair Value
Financial assets:
Notes receivable, net	928
Investment in securities	227
Financial liabilities:
Non-recourse debt	$ 4,758

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Borrowing facilities (Tables)

6 Months Ended

Jun. 30, 2012

Borrowings under Facility

As of June 30, 2012 and December 31, 2011, borrowings under the facility were as follows (in thousands):

	June 30, 2012			December 31, 2011
Total available under the financing arrangement	$	60,000		$	75,000
Amount borrowed by the Company under the acquisition facility		—			—
Amounts borrowed by affiliated partnerships and Limited Liability Companies under the venture, acquisition and warehouse facilities		(2,307	)		(7,476	)
Total remaining available under the venture, acquisition and warehouse facilities	$	57,693		$	67,524

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Allowance for Credit Losses and Recorded Investment in Financing Receivables (Detail) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2012	Dec. 31, 2011
Allowance for credit losses:
Ending balance	$ 10	$ 2
Ending balance: individually evaluated for impairment	10	2
Ending balance: collectively evaluated for impairment
Ending balance: loans acquired with deteriorated credit quality
Financing receivables:
Ending balance	1,208	1,334
Ending balance: individually evaluated for impairment	1,208	1,334
Ending balance: collectively evaluated for impairment
Ending balance: loans acquired with deteriorated credit quality
Notes Receivable
Allowance for credit losses:
Ending balance	10	2
Ending balance: individually evaluated for impairment	10	2
Ending balance: collectively evaluated for impairment
Ending balance: loans acquired with deteriorated credit quality
Financing receivables:
Ending balance	938	1,097
Ending balance: individually evaluated for impairment	938	1,097
Ending balance: collectively evaluated for impairment
Ending balance: loans acquired with deteriorated credit quality
Finance Leases
Allowance for credit losses:
Ending balance: collectively evaluated for impairment
Ending balance: loans acquired with deteriorated credit quality
Financing receivables:
Ending balance	270	237
Ending balance: individually evaluated for impairment	270	237
Ending balance: collectively evaluated for impairment
Ending balance: loans acquired with deteriorated credit quality

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Summary of significant accounting policies (Policies)

6 Months Ended

Jun. 30, 2012

Basis of presentation

Basis of presentation:

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q as mandated by the Securities and Exchange Commission. The unaudited interim financial statements reflect all adjustments which are, in the opinion of the Managing Member, necessary for a fair statement of financial position and results of operations for the interim periods presented. All such adjustments are of a normal recurring nature. Operating results for the three and six months ended June 30, 2012 are not necessarily indicative of the results to be expected for the full year.

Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications had no significant effect on the reported financial position or results of operations.

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

In preparing the accompanying unaudited financial statements, the Managing Member has reviewed events that have occurred after June 30, 2012 up until the issuance of the financial statements. No events were noted which would require disclosure in the footnotes to the financial statements, or adjustments thereto.

Use of estimates

Use of estimates:

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Such estimates primarily relate to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes and for determination of the allowance for doubtful accounts and reserve for credit losses on notes receivable.

Segment reporting

Segment reporting:

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

The primary geographic regions in which the Company seeks leasing opportunities are North America and Europe. The table below summarizes geographic information relating to the sources, by nation, of the Company’s total revenues for the six months ended June 30, 2012 and 2011 and long-lived assets as of June 30, 2012 and December 31, 2011 (dollars in thousands):

	For The Six Months Ended June 30,
	2012		% of Total			2011		% of Total
Revenue
United States	$	3,253		94	%	$	3,481		92	%
United Kingdom		201		6	%		322		8	%
Total International		201		6	%		322		8	%
Total	$	3,454		100	%	$	3,803		100	%

	As of June 30,					As of December 31,
	2012		% of Total			2011		% of Total
Long-lived assets
United States	$	13,415		98	%	$	15,782		98	%
United Kingdom		273		2	%		362		2	%
Total International		273		2	%		362		2	%
Total	$	13,688		100	%	$	16,144		100	%

Investment in securities

Investment in securities:

From time to time, the Company may purchase securities of its borrowers or receive warrants to purchase securities in connection with its lending arrangements.

Purchased securities

Purchased securities are generally not registered for public sale and are carried at cost. Such securities are adjusted to fair value if the fair value is less than the carrying value and such impairment is deemed by the Managing Member to be other than temporary. Factors considered by the Managing Member in determining fair value include, but are not limited to, available financial information, the issuer’s ability to meet its current obligations and indications of the issuer’s subsequent ability to raise capital. During the first three months of 2012, the Company recorded $32 thousand of fair value adjustments to reduce the cost basis of certain impaired investments. No additional fair value adjustment was deemed necessary through June 30, 2012. By comparison, $57 thousand of fair value adjustments relative to impaired investments were recorded during the first six months of 2011, $2 thousand of which was recorded during the three months ended June 30, 2011.

Warrants

Warrants owned by the Company are not registered for public sale, but are considered derivatives and are carried at an estimated fair value, as determined by the Managing Member, on the balance sheet as assets or liabilities. At June 30, 2012 and December 31, 2011, the Managing Member estimated the fair value of the warrants to be nominal in amount. During the three and six months ended June 30, 2012, the Company recorded unrealized gains of $6 thousand and $59 thousand, respectively, relative to the conversion of warrants associated with shares of a venture company. In addition, the Company recognized gains on the net exercise of certain warrants totaling $1 thousand during the three and six months ended June 30, 2012. By comparison, gains realized on the exercise of warrants totaled $25 thousand and $32 thousand for the respective three and six months ended June 30, 2011.

Foreign currency transactions

Foreign currency transactions:

Foreign currency transaction gains and losses are reported in the results of operations as “other income” or “other loss” in the period in which they occur. Currently, the Company does not use derivative instruments to hedge its economic exposure with respect to assets, liabilities and firm commitments as the foreign currency transactions risks to date have not been significant. The Company’s net foreign currency translation gains and losses were nominal during both the three- and six-month periods of 2012 and 2011.

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:

In May 2011, the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”) (collectively the “Boards”) issued Accounting Standards Update (“ASU”) No. 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs.” ASU 2011-04 created a uniform framework for applying fair value measurement principles for companies around the world and clarified existing guidance in US GAAP. ASU 2011-04 is effective for the first interim or annual reporting period beginning after December 15, 2011 and shall be applied prospectively. The Company adopted the provisions of ASU 2011-04 effective January 1, 2012. The fair value measurement provisions of ASU 2011-04 had no material impact on the Company’s financial position or results of operations.