EX-14.1

Exhibit 14.1

ATEL 12, LLC
 
CODE OF ETHICS FOR CHIEF EXECUTIVE OFFICER AND
CHIEF FINANCIAL AND OPERATING OFFICER

A. SCOPE

This Code of Ethics is applicable to ATEL 12, LLC (“Fund 12”), including the Chief Executive Officer and Chief Financial Officer and Chief Operating Officer of its Manager, ATEL Financial Services, LLC (“AFS”), or persons acting in such capacity (collectively the “Covered Officers”) on behalf of Fund 12, referred to herein as the “Company.”

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

B. PURPOSE

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

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

C. ETHICS STANDARDS

1. Honest and Ethical Conduct

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

2. Conflicts of Interest

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

Notwithstanding the foregoing, it is understood, as fully disclosed in the offering documents for the Company, that AFS as managing member of the Company has certain inherent conflicts of interest. The provisions of the Company’s Operating Agreement have been drafted to address the obligations, restrictions and limitations on the power and authority of AFS to manage the Company’s affairs, including restrictions prohibiting or limiting the terms of any transactions in which conflicts of interest may arise. Furthermore, AFS has a fiduciary duty to the Company as its

manager. It is therefore expressly understood by the Company and the Covered Officers that any and all actions by AFS and its personnel that comply with the provisions of the Company’s Operating Agreement, and which are consistent with AFS’s fiduciary duty to the Company, will not be considered material transactions or relationships which require disclosure or reporting under this Code of Ethics.

3. Timely and Truthful Disclosure

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

4. Legal Compliance

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

D. VIOLATIONS OF ETHICAL STANDARDS

1. Reporting Known or Suspected Violations

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

2. Accountability for Violations

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

EX-31.1

Exhibit 31.1

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

I, Dean L. Cash, certify that:

1. I have reviewed this annual report on Form 10-K of ATEL 12, LLC;

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

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

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

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

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

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

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

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

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

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

Date: March 14, 2014

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

EX-31.2

Exhibit 31.2

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

I, Paritosh K. Choksi, certify that:

1. I have reviewed this annual report on Form 10-K of ATEL 12, LLC;

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

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

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

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

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

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

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

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

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

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

Date: March 14, 2014

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

EX-32.1

Exhibit 32.1

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

In connection with the Annual Report of ATEL 12, LLC (the “Company”) on Form 10-K for the year ended December 31, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Dean L. Cash, Chairman of the Board, President and Chief Executive Officer of ATEL Financial Services, LLC, Managing Member of the Company, hereby certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

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

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

Date: March 14, 2014

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

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

EX-32.2

Exhibit 32.2

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

In connection with the Annual Report of ATEL 12, LLC (the “Company”) on Form 10-K for the year ended December 31, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Paritosh K. Choksi, Director, Executive Vice President and Chief Financial Officer and Chief Operating Officer of ATEL Financial Services, LLC, Managing Member of the Company, hereby certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

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

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

Date: March 14, 2014

/s/ Paritosh K. Choksi Paritosh K. Choksi Director, 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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Notes Receivable, Net (Initial Direct Costs, Amortization Expense Related to Notes Receivable and Company's Operating and Direct Finance Leases) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Initial Direct Costs Notes Receivable And Lease Assets [Line Items]
Amortization of initial direct costs	$ 33	$ 50
Notes Receivable [Member]
Initial Direct Costs Notes Receivable And Lease Assets [Line Items]
Amortization of initial direct costs	6	8
Lease Assets [Member]
Initial Direct Costs Notes Receivable And Lease Assets [Line Items]
Amortization of initial direct costs	$ 27	$ 42

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Borrowing Facilities (Narrative) (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Jan. 31, 2014 Subsequent Event [Member]	Dec. 31, 2013 Covenant Requirement [Member] Maximum [Member]	Dec. 31, 2013 Covenant Requirement [Member] Minimum [Member]	Dec. 31, 2013 Warehouse Facility [Member]	Dec. 31, 2012 Warehouse Facility [Member]
Line of Credit Facility [Line Items]
Maximum amount of Credit Facility	$ 60,000,000	$ 60,000,000	$ 75,000,000
Credit Facility expiration date	2014-06		2015-06
Tangible net worth requirement under the Credit Facility	7,500,000
Leverage ratio	0.41			1.25
Interest coverage ratio	35.10				2
Net Worth	9,600,000
Outstanding borrowings under facility	$ 0	$ 0				$ 0	$ 0

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Investments in Equipment and Leases, Net (Property on Operating Leases) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2012	$ 11,961
Additions	(1,872)
Reclassifications or Dispositions	(497)
Balance December 31, 2013	9,592
Transportation [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2012	4,935
Additions
Reclassifications or Dispositions
Balance December 31, 2013	4,935
Manufacturing [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2012	2,606
Additions	663
Reclassifications or Dispositions
Balance December 31, 2013	3,269
Construction [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2012	2,989
Additions
Reclassifications or Dispositions
Balance December 31, 2013	2,989
Mining [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2012	2,893
Additions
Reclassifications or Dispositions
Balance December 31, 2013	2,893
Aviation [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2012	2,167
Additions
Reclassifications or Dispositions
Balance December 31, 2013	2,167
Materials Handling [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2012	4,276
Additions
Reclassifications or Dispositions	(2,374)
Balance December 31, 2013	1,902
Computer [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2012
Additions	139
Reclassifications or Dispositions
Balance December 31, 2013	139
Other [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2012
Additions	93
Reclassifications or Dispositions	(3)
Balance December 31, 2013	90
Total Property Subject to or Available For Operating Lease [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2012	19,866
Additions	895
Reclassifications or Dispositions	(2,377)
Balance December 31, 2013	18,384
Less Accumulated Depreciation [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2012	(7,905)
Additions	(2,767)
Reclassifications or Dispositions	1,880
Balance December 31, 2013	$ (8,792)

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Borrowings Facilities (Borrowings Under Facility) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Line of Credit Facility [Line Items]
Total available under the financing arrangement	$ 60,000	$ 60,000
Amount borrowed	0	0
Total remaining available under the venture, acquisition and warehouse facilities	52,690	54,510
Related Party [Member]
Line of Credit Facility [Line Items]
Amount borrowed	$ (7,310)	$ (5,490)

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Investments in Equipment and Leases, Net (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Initial Direct Costs Notes Receivable And Lease Assets [Line Items]
Depreciation of operating lease assets	$ 2,767	$ 3,038
Average estimated residual value for assets on operating leases	29.00%	29.00%
Impairment losses	0	0
Amortization of initial direct costs	33	50
Lease Assets [Member]
Initial Direct Costs Notes Receivable And Lease Assets [Line Items]
Amortization of initial direct costs	$ 27	$ 42

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Summary of Significant Accounting Policies (Narrative) (Details) (USD $)	12 Months Ended
	Dec. 31, 2013 segment	Dec. 31, 2012
Fair value of warrants	$ 555,000
Number of operating segments	1
Number of reportable segments	1
Percentage of operating revenues	100.00%	100.00%
Provision for franchise fees and state income taxes	4,000	16,000
Period subject to income tax examination	3 years
Impairment of investment securities	5,000	0
Minimum [Member]
Required assets value of financial institutions for cash deposits	10,000,000,000
Operating leases, initial terms	36 months
Operating leases, period for non accrual status	90 days
Financing leases, period for non accrual status	90 days
Note receivable, period for non accrual status	90 days
Maximum [Member]
U.S. Treasury instruments maturity period	90 days
Cash deposits, insured amount	$ 250,000
Operating leases, initial terms	120 months
Equipment and lessee period of review for impairment	90 days
Financing leases, period of review for impairment	90 days
Note receivable, period of review for impairment	90 days

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Members' Capital (Narrative) (Details)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Other Members Capital Account [Line Items]
Other Members capital account, units issued	2,993,482	2,993,482
Other Members capital account, units outstanding	2,993,482	2,993,482
Other Members capital account, units authorized	20,000,000	20,000,000
Potential repurchase price of Units as percentage of holder's capital account	100.00%
Allocation of net income or net losses	100.00%
Other Members [Member]
Other Members Capital Account [Line Items]
Allocation of net Income or net losses from commencement until initial closing date	1.00%
Allocation of net Income or net losses commencing with initial closing date	92.50%
Percentage of fund distributions	92.50%
Managing Member [Member]
Other Members Capital Account [Line Items]
Allocation of net Income or net losses from commencement until initial closing date	99.00%
Allocation of net Income or net losses commencing with initial closing date	7.50%
Percentage of fund distributions	7.50%

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Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2013

Allowance for Credit Losses [Abstract]

Allowance for Credit Losses

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

		Accounts Receivable Allowance for Doubtful Accounts						Valuation Adjustments on Financing Receivables				Total Allowance for Credit Losses
		Notes Receivable		Finance Leases		Operating Leases		Notes Receivable		Finance Leases
Balance December 31, 2011	$	-	$	-	$	16	$	4	$	-	$	20
Provision (reversal of provision)		-		12		(6)		45		-		51
Balance December 31, 2012		-		12		10		49		-		71
Reversal of provision		-		(12)		(7)		(22)		-		(41)
Asset disposal		-		-		-		(27)		-		(27)
Balance December 31, 2013	$	-	$	-	$	3	$	-	$	-	$	3

Allowance for Credit Losses and Recorded Investment in Financing Receivables

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

December 31, 2013		Notes Receivable			Finance Leases		Total
Allowance for credit losses:
Ending balance	$	-		$	-	$	-
Ending balance: individually evaluated for impairment	$	-		$	-	$	-
Ending balance: collectively evaluated for impairment	$	-		$	-	$	-
Ending balance: loans acquired with deteriorated credit quality	$	-		$	-	$	-
Financing receivables:
Ending balance	$	1,701	1	$	200	$	1,901
Ending balance: individually evaluated for impairment	$	1,701		$	200	$	1,901
Ending balance: collectively evaluated for impairment	$	-		$	-	$	-
Ending balance: loans acquired with deteriorated credit quality	$	-		$	-	$	-
1Includes $5 of unamortized initial direct costs.
December 31, 2012		Notes Receivable			Finance Leases		Total
Allowance for credit losses:
Ending balance	$	49		$	-	$	49
Ending balance: individually evaluated for impairment	$	49		$	-	$	49
Ending balance: collectively evaluated for impairment	$	-		$	-	$	-
Ending balance: loans acquired with deteriorated credit quality	$	-		$	-	$	-
Financing receivables:
Ending balance	$	1,566	2	$	338	$	1,904
Ending balance: individually evaluated for impairment	$	1,566		$	338	$	1,904
Ending balance: collectively evaluated for impairment	$	-		$	-	$	-
Ending balance: loans acquired with deteriorated credit quality	$	-		$	-	$	-
2Includes $6 of unamortized initial direct costs.

Financing Receivables by Credit Quality Indicator and Class

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

		Notes Receivable				Finance Leases
		December 31, 2013		December 31, 2012		December 31, 2013		December 31, 2012
Pass	$	1,696	$	1,538	$	200	$	338
Special mention		-		22		-		-
Substandard		-		-		-		-
Doubtful		-		-		-		-
Total	$	1,696	$	1,560	$	200	$	338

Impaired Loans

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

			Impaired Loans
December 31, 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		107		107		49		146		18
Total		$	107	$	107	$	49	$	146	$	18

Net Investments in Financing Receivables by Age

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

December 31, 2013		31-60 Days Past Due		61-90 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables		Recorded Investment>90 Days and Accruing
Notes receivable	$	-	$	-	$	-	$	-	$	1,696	$	1,696	$	-
Finance leases		87		-		-		87		113		200		-
Total	$	87	$	-	$	-	$	87	$	1,809	$	1,896	$	-

December 31, 2012		31-60 Days Past Due		61-90 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables		Recorded Investment>90 Days and Accruing
Notes receivable	$	-	$	-	$	-	$	-	$	1,560	$	1,560	$	-
Finance leases		-		-		125		125		213		338		125
Total	$	-	$	-	$	125	$	125	$	1,773	$	1,898	$	125

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Investments in Equipment and Leases, Net (Future Minimum Lease Payments Receivable) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Operating Leases
Year ending December 31, 2014	$ 2,899
2015	1,174
2016	471
2017	471
2018	109
Operating leases, future minimum payments receivable	5,124
Direct Financing Leases
Year ending December 31, 2014	175
2015	109
2016	13
Capital leases, future minimum payments receivable	297
Total
Year ending December 31, 2014	3,074
2015	1,283
2016	484
2017	471
2018	109
Operating and financing leases, future minimum payments receivable, total	$ 5,421

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Allowance for Credit Losses (Recorded Investment in Financing Receivables) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013		Dec. 31, 2012
Allowances for credit losses:
Ending balance	$ 0		$ 49
Ending balance: individually evaluated for impairment			49
Ending balance: collectively evaluated for impairment
Ending balance: loans acquired with deteriorated credit quality
Financing receivables:
Ending balance	1,901		1,904
Ending balance: individually evaluated for impairment	1,901		1,904
Ending balance: collectively evaluated for impairment
Ending balance: loans acquired with deteriorated credit quality
Notes receivable unamortized initial direct cost	5		6
Notes Receivable [Member]
Allowances for credit losses:
Ending balance			49
Ending balance: individually evaluated for impairment			49
Ending balance: collectively evaluated for impairment
Ending balance: loans acquired with deteriorated credit quality
Financing receivables:
Ending balance	1,701	[1]	1,566	[2]
Ending balance: individually evaluated for impairment	1,701		1,566
Ending balance: collectively evaluated for impairment
Ending balance: loans acquired with deteriorated credit quality
Finance Leases [Member]
Allowances for credit losses:
Ending balance: collectively evaluated for impairment
Ending balance: loans acquired with deteriorated credit quality
Financing receivables:
Ending balance	200		338
Ending balance: individually evaluated for impairment	200		338
Ending balance: collectively evaluated for impairment
Ending balance: loans acquired with deteriorated credit quality

[1] Includes $5 of unamortized initial direct costs.

[2] Includes $6 of unamortized initial direct costs.

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Notes Receivable, Net (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended			12 Months Ended
	Mar. 31, 2013	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment, Past Due [Line Items]
Principal balance outstanding, impaired note					$ 85
Impaired notes receivable, net					58
Fair value adjustments on notes receivable		27	18	0	45
Gain on note receivable settlement	27
Fair value adjustments to reduce the fair value of impaired notes				$ 22
Minimum [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Terms of the notes receivable				36 months
Notes receivable, interest rate				11.37%	11.58%
Notes maturity period				2015
Maximum [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Terms of the notes receivable				42 months
Notes receivable, interest rate				14.30%	11.78%
Notes maturity period				2017

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Non-Recourse Debt (Narrative) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2013
Gross operating lease rentals and future payments on direct financing leases	$ 4.1
Carrying value of pledged assets	$ 7.3
Maximum [Member]
Fixed Interest rate on note	4.40%
Note maturity year	2018
Minimum [Member]
Fixed Interest rate on note	1.41%
Note maturity year	2014

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Fair Value Measurements (Fair Value Measurement of Assets And Liabilities Measured at Fair Value on a Non-Recurring Basis) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired notes receivable, net	$ 58
Level 1 Estimated Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired notes receivable, net
Level 2 Estimated Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired notes receivable, net
Level 3 Estimated Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired notes receivable, net	$ 58

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Investments in Equipment and Leases, Net (Investment in Leases) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Leases Disclosure [Line Items]
Balance December 31, 2012	$ 13,237
Reclassifications, Additions/ Dispositions	327
Depreciation/ Amortization Expense or Amortization of Leases	(2,911)
Balance December 31, 2013	10,653
Initial direct costs, accumulated amortization	85	96
Operating Leases [Member]
Leases Disclosure [Line Items]
Balance December 31, 2012	11,961
Reclassifications, Additions/ Dispositions	398
Depreciation/ Amortization Expense or Amortization of Leases	(2,767)
Balance December 31, 2013	9,592
Direct Financing Leases [Member]
Leases Disclosure [Line Items]
Balance December 31, 2012	338
Reclassifications, Additions/ Dispositions	(21)
Depreciation/ Amortization Expense or Amortization of Leases	(117)
Balance December 31, 2013	200
Assets Held-for-sale [Member]
Leases Disclosure [Line Items]
Balance December 31, 2012	885
Reclassifications, Additions/ Dispositions	(50)
Balance December 31, 2013	835
Initial Direct Cost [Member]
Leases Disclosure [Line Items]
Balance December 31, 2012	53
Depreciation/ Amortization Expense or Amortization of Leases	(27)
Balance December 31, 2013	$ 26

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2013

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2.  Summary of significant accounting policies:

Basis of presentation:

The accompanying balance sheets as of December 31, 2013 and 2012, and the related statements of income, changes in members’ capital, and cash flows for the years then ended, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission. Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications had no significant effect on the reported financial position or results of operations.  

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

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

Cash and cash equivalents:

Cash and cash equivalents include cash in banks and cash equivalent investments such as U.S. Treasury instruments with original and/or purchased maturities of ninety days or less.

Use of Estimates:

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

Accounts receivable:

Accounts receivable represent the amounts billed under operating and direct financing lease contracts, and notes receivable which are currently due to the Company. Allowances for doubtful accounts are typically established based on historical charge off and collection experience and the collectability of specifically identified lessees and borrowers, and invoiced amounts. Accounts receivable deemed uncollectible are generally charged off against the allowance on a specific identification basis. Recoveries of amounts that were previously written-off are recorded as other income in the period received.

Credit risk:

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

Equipment on operating leases and related revenue recognition:

Equipment subject to operating leases is stated at cost. Depreciation is recognized on a straight-line method over the terms of the related leases to the equipment’s estimated residual values. Off-lease equipment is generally not subject to depreciation. Maintenance costs associated with the Fund’s portfolio of leased assets are expensed as incurred. Major additions and betterments are capitalized.

Operating lease revenue is recognized on a straight-line basis over the term of the underlying leases. The initial lease terms will vary as to the type of equipment subject to the leases, the needs of the lessees and the terms to be negotiated, but initial leases are generally on terms from 36 to 120 months. The difference between rent received and rental revenue recognized is recorded as unearned operating lease income on the balance sheet.

Operating leases are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management considers the equipment underlying the lease contracts for impairment and periodically reviews the credit worthiness of all operating lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related operating leases may be placed on non-accrual status. Leases placed on non-accrual status are onlyreturned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, revenues are recognized on a cash basis.

Direct financing leases and related revenue recognition:

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

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

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

Notes receivable, unearned interest income and related revenue recognition:

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

Allowances for losses on notes receivable are typically established based on historical charge off and collection experience and the collectability of specifically identified borrowers and billed and unbilled receivables. Notes are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and/or interest when due according to the contractual terms of the note agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest 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.

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

Initial direct costs:

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

Acquisition expense:

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

Asset valuation:

Recorded values of the Company’s leased asset portfolio are periodically reviewed for impairment. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than their net book value. The estimated undiscounted future cash flows are the sum of the estimated residual value of the asset at the end of the asset’s expected holding period and estimates of undiscounted future rents. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the market place are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date.

Segment reporting:

The Company is organized into one operating segment for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in one reportable operating segment in the United States.

The Company’s principal decision makers are the Managing Member’s Chief Executive Officer and its Chief Financial Officer and Chief Operating Officer. The Company believes that its equipment leasing business operates as one reportable segment because:  a) the Company measures profit and loss at the equipment portfolio level as a whole; b) the principal decision makers do not review information based on any operating segment other than the equipment leasing transaction portfolio; c) the Company does not maintain discrete financial information on any specific segment other than its equipment financing operations; d) the Company has not chosen to organize its business around different products and services other than equipment lease financing; and e) the Company has not chosen to organize its business around geographic areas.

The primary geographic regions in which the Company sought leasing opportunities were North America and Europe. For the years ended December 31, 2013 and 2012, and as of December 31, 2013 and 2012,  100% of the Company’s operating revenues and long-lived assets are from customers domiciled in North America.

Investment in securities:

Purchased securities

Purchased securities are generally not registered for public sale and are carried at cost. Such securities are adjusted to fair value if the fair value is less than the carrying value and such impairment is deemed by the Managing Member to be other than temporary. Factors considered by the Managing Member in determining fair value include, but are not limited to, available financial information, the issuer’s ability to meet its current obligations and indications of the issuer’s subsequent ability to raise capital. Based upon the Company’s review of its portfolio, no fair value adjustment was deemed necessary at December 31, 2013 and 2012. Gains recognized on sales or dispositions of investment securities totaled $5 thousand for the year ended December 31, 2013. There were no sales or dispositions of investment securities during 2012.  

Warrants

Warrants owned by the Company are not registered for public sale, but are considered derivatives and are carried at an estimated fair value on the balance sheet at the end of the period, as determined by the Managing Member. At December 31, 2013, the Company’s portfolio of warrants had an estimated fair value of $555 thousand. At December 31, 2012, the Managing Member estimated the fair value of the warrants to be nominal in amount.

Unearned operating lease income:

The Company records prepayments on operating leases as a liability under the caption of unearned operating lease income. The liability is recorded when prepayments are received and recognized as operating lease revenue over the period to which the prepayments relate using a straight-line method.

Income Taxes:

The Company is treated as a partnership for federal income tax purposes. Pursuant to the provisions of Section 701 of the Internal Revenue Code, a partnership is not subject to federal income taxes. Accordingly, the Company has provided current franchise income taxes for only those states which levy income taxes on partnerships. For the years ended December 31, 2013 and 2012, the related provision for state income taxes was approximately $4 thousand and $16 thousand, respectively. The Company does not have any entity level uncertain tax positions. The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions and is generally subject to examination by U.S. federal (or state and local) income tax authorities for three years from the filing of a tax return.

The tax bases of the Company’s net assets and liabilities vary from the amounts presented in these financial statements at December 31, 2013 and 2012 as follows (in thousands):

		2013		2012
Financial statement basis of net assets	$	9,571	$	11,491
Tax basis of net assets (unaudited)		8,387		11,044
Difference	$	1,184	$	447

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

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

		2013		2012
Net income per financial statements	$	992	$	291
Tax adjustments (unaudited):
Adjustment to depreciation expense		(554)		(1,671)
Provision for losses and doubtful accounts		(19)		6
Adjustments to revenues / other expenses		42		219
Adjustments to gain on sales of assets		348		4
Other		(553)		54
Loss per federal tax return (unaudited)	$	256	$	(1,097)

Per Unit data:

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

Recent Accounting Pronouncements:

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

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Fair Value Measurements (Summary of Valuation Techniques and Significant Unobservable Inputs Used) (Details) (Recurring [Member], Warrant [Member], Black Scholes Model [Member], USD $)	12 Months Ended
	Dec. 31, 2013
Minimum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Share Price	$ 0.05
Exercise price	$ 0.05
Time to Maturity (in years)	1 year 11 months 16 days
Annual risk-free interest rate	0.38%
Annualized volatility	17.80%
Maximum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Share Price	$ 25.76
Exercise price	$ 25.76
Time to Maturity (in years)	9 years 11 months 23 days
Annual risk-free interest rate	3.04%
Annualized volatility	100.00%

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Allowance for Credit Losses (Financing Receivables by Credit Quality Indicator and Class) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable, Recorded Investment [Line Items]
Finance Leases	$ 200	$ 338
Notes Receivable	1,696	1,560
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Finance Leases	200	338
Notes Receivable	1,696	1,538
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Notes Receivable		22
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Finance Leases
Notes Receivable

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Borrowing Facilities (Tables)

12 Months Ended

Dec. 31, 2013

Borrowing Facilities [Abstract]

Borrowings Under Facility

As of December 31, 2013 and 2012, borrowings under the facility were as follows (in thousands):

		2013		2012
Total available under the financing arrangement	$	60,000	$	60,000
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		(7,310)		(5,490)
Total remaining available under the venture, acquisition and warehouse facilities	$	52,690	$	54,510

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Non-Recourse Debt (Tables)

12 Months Ended

Dec. 31, 2013

Non-Recourse Debt [Abstract]

Future Minimum Payments of Non-Recourse Debt

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

		Principal		Interest		Total
Year ending December 31, 2014	$	2,064	$	65	$	2,129
2015		873		30		903
2016		454		17		471
2017		464		7		471
2018		103		1		104
	$	3,958	$	120	$	4,078

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Commitments (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013
Disclosure Commitments Additional Information [Abstract]
Commitments to purchase lease assets	$ 0

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Allowance for Credit Losses (Schedule of Impaired Loans) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012
Allowance for Credit Losses [Abstract]
Notes receivable, With no allowance recorded, Recorded investment
Notes receivable, With an allowance recorded, Recorded investment	107
Recorded investment, Total	107
Notes receivable, With no allowance recorded, Unpaid Principal Balance
Notes receivable, With an allowance recorded, Unpaid Principal Balance	107
Unpaid Principal Balance, Total	107
Notes Receivable. With no allowance recorded, Related Allowance
Notes Receivable. With an allowance recorded, Related Allowance	49
Notes receivable, Related Allowance	49
Notes receivable, With no allowance recorded, Average Recorded Investment
Notes receivable, With an allowance recorded, Average Recorded Investment	146
Impaired Financing Receivable, Average Recorded Investment, Total	146
Notes receivable, With no allowance recorded, Interest Income Recognized
Notes receivable, With an allowance recorded, Interest Income Recognized	18
Interest Income Recognized, Total	$ 18

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Members' Capital (Tables)

12 Months Ended

Dec. 31, 2013

Members' Capital [Abstract]

Distributions to Other Members

Distributions to the Other Members for the years ended December 31, 2013 and 2012 were as follows (in thousands, except as to Units and per Unit data):

		2013		2012
Distributions	$	2,694	$	2,694
Weighted average number of Units outstanding		2,993,482		2,993,482
Weighted average distributions per Unit	$	0.90	$	0.90

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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value Measurements [Abstract]

Reconciliation of Level 3 Assets

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

		Level 3 assets
Balance at December 31, 2012	$	-
Unrealized gain on warrants, net recorded during the year		555
Balance at December 31, 2013	$	555

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

There were no impaired assets at December 31, 2013. The following table 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 December 31, 2012 (in thousands):

		December 31, 2012		Level 1 Estimated Fair Value		Level 2 Estimated Fair Value		Level 3 Estimated Fair Value
Impaired notes receivable, net	$	58	$	-	$	-	$	58

Summary of Valuation Techniques and Significant Unobservable Inputs Used

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

Name	Valuation Frequency	Valuation Technique	Unobservable Inputs	Range of Input Values
Warrants	Recurring	Black-Scholes Model	Stock Price	$0.05 - $25.76
			Exercise price	$0.05 - $25.76
			Time to Maturity (in years)	1.96 - 9.98
			Annual risk-free interest rate	0.38% - 3.04%
			Annualized volatility	17.80% - 100.00%

Estimated Fair Values of Financial Instruments

The following tables present estimated fair values of the Company’s financial instruments in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification at December 31, 2013 and 2012 (in thousands):

		Fair Value Measurements at December 31, 2013
		Carrying Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	857	$	857	$	-	$	-	$	857
Notes receivable, net		1,701		-		-		1,701		1,701
Investment in securities		275		-		-		275		275
Fair value of warrants		555		-		-		555		555
Financial liabilities:
Non-recourse debt		3,958		-		-		3,940		3,940
		Fair Value Measurements at December 31, 2012
		Carrying Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	319	$	319	$	-	$	-	$	319
Notes receivable, net		1,517		-		-		1,517		1,517
Investment in securities		289		-		-		289		289
Financial liabilities:
Non-recourse debt		3,400		-		-		3,412		3,412

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Organization and Limited Liability Company Matters

12 Months Ended

Dec. 31, 2013

Organization and Limited Liability Company Matters [Abstract]

Organization and Limited Liability Company Matters

1.  Organization and Limited Liability Company matters:

ATEL 12, LLC (the “Company” or the “Fund”) was formed under the laws of the state of California on January 25, 2007 for the purpose of equipment financing and acquiring equipment to engage in equipment leasing and sales activities, as well as in real estate, growth capital investment activities and green technologies (the “principal operations”). From its inception into the third quarter of 2013, the Company’s Managing Member was ATEL Associates 12, LLC (“AA12”), a Nevada limited liability corporation. Effective September 30, 2013, AA12 was merged into ATEL Financial Services, LLC (“AFS”) (the “Managing Member” or “Manager”), a Nevada limited liability corporation, which assumed the role of Managing Member of the Company. The Fund may continue until December 31, 2030. As a limited liability company, the liability of any individual member for the obligations of the Fund is limited to the extent of capital contributions to the Fund by the individual member.

The Company conducted a public offering of 20,000,000 Limited Liability Company Units (“Units”), at a price of $10 per Unit. On January 24, 2008, subscriptions for the minimum number of Units (120,000, representing $1.2 million), excluding subscriptions from Pennsylvania investors, had been received and the Fund requested subscription proceeds to be released from escrow. On that date, the Company commenced initial operations and continued in its development stage activities until transitioning to an operating enterprise during the second quarter of 2008. Pennsylvania subscriptions were subject to a separate escrow to be released to the Fund only when the Fund had received aggregate subscriptions for all investors equal to at least $7.5 million. Total contributions to the Fund exceeded $7.5 million on July 15, 2008. The offering was terminated on September 25, 2009.

As of December 31, 2013, cumulative contributions, net of rescissions and/or redemptions, totaling $29.9million (inclusive of the $500 initial Member’s capital investment) have been received and 2,993,482Units were issued and outstanding.  

The Fund, or Managing Member and/or affiliates on behalf of the Fund, has incurred costs in connection with the organization, registration and issuance of the Units. The amount of such costs to be borne by the Fund is limited by certain provisions of the ATEL 12, LLC Limited Liability Company Operating Agreement dated April 3, 2007 (the “Operating Agreement”).

The Company’s principal objectives are to invest in a diversified portfolio of investments that (i) preserves, protects and returns the Company’s invested capital; (ii) generates regular cash distributions to Unitholders, any balance remaining after required minimum distributions to be used to purchase additional investments during the Reinvestment Period (ending six calendar years after the completion of the Company’s public offering of Units) which ends on December 31, 2015 and (iii) provides additional cash distributions following the Reinvestment Period and until all investment portfolio assets have been sold or otherwise disposed. The Company is governed by its Operating Agreement, as amended.

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Organization and Limited Liability Company Matters (Narrative) (Details) (USD $)	0 Months Ended		51 Months Ended	83 Months Ended
	Jan. 24, 2008	Sep. 26, 2007	Dec. 31, 2013	Dec. 31, 2013	Dec. 31, 2012	Jul. 15, 2008 Minimum [Member]	Jan. 24, 2008 Minimum [Member]
Partnership termination date				Dec. 31, 2030
Public offering of Limited Company Units		20,000,000
Public offering of Limited Liability Company Units, price per unit		$ 10
Sale of Limited Liability Company Units, number of units	120,000
Proceeds from sale of Limited Liability Company Units	$ 1,200,000
Amount of aggregate subscriptions for Pennsylvania subscriptions to be released to the Fund							7,500,000
Contributions of capital			500	500
Contributions received, net of rescissions and/or redemptions			$ 29,900,000	$ 29,900,000		$ 7,500,000
Units issued			2,993,482	2,993,482	2,993,482
Units outstanding			2,993,482	2,993,482	2,993,482
Reinvestment period			6 years

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Allowance for Credit Losses (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Impairment losses	$ 0	$ 0
Minimum [Member]
Accounts receivable, period for non accrual status	90 days
Note receivable, period for non accrual status	90 days
Maximum [Member]
Accounts receivable, period of review for impairment	90 days

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Non-Recourse Debt (Future Minimum Payments of Non-Recourse Debt) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Principal
Year ending December 31, 2014	$ 2,064
2015	873
2016	454
2017	464
2018	103
Long-term debt, principal	3,958
Interest
Year ending December 31, 2014	65
2015	30
2016	17
2017	7
2018	1
Long-term debt, interest	120
Total
Year ending December 31, 2014	2,129
2015	903
2016	471
2017	471
2018	104
Long-term debt, principal and interest, total	$ 4,078

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Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
ASSETS
Cash and cash equivalents	$ 857	$ 319
Accounts receivable, net of allowance for doubtful accounts of $3 at December 31, 2013 and $22 at December 31, 2012	55	57
Notes receivable, net of unearned interest income of $255 and allowance for credit losses of $0 at December 31, 2013 and net of unearned interest income of $230 and allowance for credit losses of $49 at December 31, 2012	1,701	1,517
Investment in securities	275	289
Fair value of warrants	555
Investments in equipment and leases, net of accumulated depreciation of $11,046 at December 31, 2013 and $10,290 at December 31, 2012	10,653	13,237
Prepaid expenses and other assets	30	32
Total assets	14,126	15,451
Accounts payable and accrued liabilities:
Managing Member	55	72
Accrued distributions to Other Members	230	230
Other	211	136
Non-recourse debt	3,958	3,400
Unearned operating lease income	101	122
Total liabilities	4,555	3,960
Commitments and contingencies
Members' capital:
Managing Member
Other Members	9,571	11,491
Total Members' capital	9,571	11,491
Total liabilities and Members' capital	$ 14,126	$ 15,451

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Allowance for Credit Losses (Net Investment in Financing Receivables by Age) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable Recorded Investment Past Due [Line Items]
31-60 Days Past Due	$ 87
61-90 Days Past Due
Greater Than 90 Days		125
Total Past Due	87	125
Current	1,809	1,773
Total Financing Receivable	1,896	1,898
Recorded Investment > 90 Days and Accruing		125
Notes Receivable [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
31-60 Days Past Due
61-90 Days Past Due
Greater Than 90 Days
Total Past Due
Current	1,696	1,560
Total Financing Receivable	1,696	1,560
Recorded Investment > 90 Days and Accruing
Finance Leases [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
31-60 Days Past Due	87
61-90 Days Past Due
Greater Than 90 Days		125
Total Past Due	87	125
Current	113	213
Total Financing Receivable	200	338
Recorded Investment > 90 Days and Accruing		$ 125

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Statements of Changes in Members' Capital (Parenthetical) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Statements of Changes in Members' Capital [Abstract]
Distributions to Other Members, per unit	$ 0.90	$ 0.90

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Fair Value Measurements (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		12 Months Ended
	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Fair Value Measurements [Abstract]
Fair value adjustments on notes receivable	$ 27	$ 18	$ 0	$ 45
Fair value of warrants			$ 555

XML

Summary of Significant Accounting Policies (Reconciliation of Net Income Loss Reported in Financial Statements and Federal Tax Return) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Summary of Significant Accounting Policies [Abstract]
Net income per financial statements	$ 992	$ 291
Adjustment to depreciation expense	(554)	(1,671)
Provision for losses and doubtful accounts	(19)	6
Adjustments to revenues / other expenses	42	219
Adjustments to gain on sales of assets	348	4
Other	(553)	54
Loss per federal tax return (unaudited)	$ 256	$ (1,097)

XML

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2013

Summary of Significant Accounting Policies [Abstract]

Schedule of Differences Between Book Value and Tax Basis of Net Assets

The tax bases of the Company’s net assets and liabilities vary from the amounts presented in these financial statements at December 31, 2013 and 2012 as follows (in thousands):

		2013		2012
Financial statement basis of net assets	$	9,571	$	11,491
Tax basis of net assets (unaudited)		8,387		11,044
Difference	$	1,184	$	447

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

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

		2013		2012
Net income per financial statements	$	992	$	291
Tax adjustments (unaudited):
Adjustment to depreciation expense		(554)		(1,671)
Provision for losses and doubtful accounts		(19)		6
Adjustments to revenues / other expenses		42		219
Adjustments to gain on sales of assets		348		4
Other		(553)		54
Loss per federal tax return (unaudited)	$	256	$	(1,097)

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Concentration of Credit Risk and Major Customers (Schedule of Leasing and Lending Revenues) (Details)	12 Months Ended
	Dec. 31, 2013		Dec. 31, 2012
Gas/Coal [Member]
Concentration Risk [Line Items]
Percentage of concentration risk	23.00%		18.00%
Retail [Member]
Concentration Risk [Line Items]
Percentage of concentration risk	15.00%		11.00%
Business Services [Member]
Concentration Risk [Line Items]
Percentage of concentration risk	13.00%		23.00%
Air Transportation Equipment [Member]
Concentration Risk [Line Items]
Percentage of concentration risk	11.00%			[1]
Mining [Member] | Nomac Drilling, LLC [Member]
Concentration Risk [Line Items]
Percentage of concentration risk	17.00%		15.00%
Research [Member] | IBM Corporation [Member]
Concentration Risk [Line Items]
Percentage of concentration risk	16.00%		14.00%
Aviation [Member] | Aircraft Service International, Inc. [Member]
Concentration Risk [Line Items]
Percentage of concentration risk	10.00%			[1]
Transportation [Member] | Wal-Mart Transportation, LLC [Member]
Concentration Risk [Line Items]
Percentage of concentration risk	10.00%			[1]
Food Products [Member]
Concentration Risk [Line Items]
Percentage of concentration risk		[1]	10.00%
Rubber/Miscellaneous Plastics [Member]
Concentration Risk [Line Items]
Percentage of concentration risk		[1]	10.00%
Materials Handling [Member] | Newell Rubbermaid, Inc. [Member]
Concentration Risk [Line Items]
Percentage of concentration risk		[1]	15.00%

[1] Less than 10%

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Notes Receivable, Net (Tables)

12 Months Ended

Dec. 31, 2013

Notes Receivables, Net [Abstract]

Minimum Future Payments Receivable

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

Year ending December 31, 2014	$	893
2015		618
2016		400
2017		40
		1,951
Less: portion representing unearned interest income		(255)
		1,696
Unamortized initial direct costs		5
Notes receivable, net	$	1,701

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

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

		2013		2012
IDC amortization - notes receivable	$	6	$	8
IDC amortization - lease assets		27		42
Total	$	33	$	50

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Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Operating activities:
Net income	$ 992	$ 291
Adjustment to reconcile net income to cash provided by operating activities:
Gain on sales of lease assets and early termination of notes	(57)	(26)
Depreciation of operating lease assets	2,767	3,038
Amortization of initial direct costs	33	50
(Reversal of) provision for credit losses	(41)	51
Gain on sales or dispositions of securities	(5)
Unrealized gain on fair valuation of warrants	(555)
Changes in operating assets and liabilities:
Accounts receivable	21	21
Prepaid expenses and other assets	2	(22)
Accounts payable, Managing Member	(17)	30
Accounts payable, other	75	62
Unearned operating lease income	(21)	(44)
Net cash provided by operating activities	3,194	3,451
Investing activities:
Purchases of equipment on operating leases	(895)	(2,606)
Purchase of securities	(2)
Proceeds from sales of lease assets and early termination of notes	689	393
Payments of initial direct costs	(4)	(8)
Note receivable advances	(905)	(1,434)
Proceeds from sale of securities	21
Principal payments received on direct financing leases	117	263
Principal payments received on notes receivable	677	623
Net cash used in investing activities	(302)	(2,769)
Financing activities:
Borrowings under non-recourse debt	2,734	2,021
Repayments under non-recourse debt	(2,176)	(1,405)
Borrowings under acquisition facility		1,500
Repayments under acquisition facility		(1,500)
Net cash used in financing activities	(2,354)	(2,296)
Net increase (decrease) in cash and cash equivalents	538	(1,614)
Cash and cash equivalents at beginning of year	319	1,933
Cash and cash equivalents at end of year	857	319
Supplemental disclosures of cash flow information:
Cash paid during the year for interest	120	125
Cash paid during the year for taxes	4	18
Other Members [Member]
Operating activities:
Net income	774	73
Financing activities:
Distributions to Members	(2,694)	(2,694)
Schedule of non-cash transactions:
Distributions payable to Members at year-end	230	230
Managing Member [Member]
Operating activities:
Net income	218	218
Financing activities:
Distributions to Members	(218)	(218)
Schedule of non-cash transactions:
Distributions payable to Members at year-end	$ 19	$ 19

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Balance Sheets (Parenthetical) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Balance Sheets [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 3	$ 22
Notes receivable, unearned interest income	255	230
Notes receivable, allowance for credit losses	0	49
Investments in equipment and leases, accumulated depreciation	$ 11,046	$ 10,290

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Commitments

12 Months Ended

Dec. 31, 2013

Commitments [Abstract]

Commitments

10.  Commitments:

At December 31, 2013, the Company had no commitments to purchase lease assets or fund investments in notes receivable.  

XML

Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2013	Feb. 28, 2014	Jun. 30, 2013
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	FY
Entity Registrant Name	ATEL 12, LLC
Entity Central Index Key	0001394922
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Well-known Seasoned Issuer	No
Entity Public Float			$ 0
Entity Units Outstanding		2,993,482

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Guarantees

12 Months Ended

Dec. 31, 2013

Guarantees [Abstract]

Guarantees

11.  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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Statements of Income (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Leasing and lending activities:
Operating leases	$ 3,796	$ 4,215
Direct financing leases	123	141
Interest on notes receivable	146	141
Gain on sales of lease assets and early termination of notes	57	26
Gain on sales or dispositions of securities	5
Unrealized gain on fair valuation of warrants	555
Other	87	49
Total revenues	4,769	4,572
Expenses:
Depreciation of operating lease assets	2,767	3,038
Asset management fees to Managing Member	164	208
Acquisition expense	121	134
Cost reimbursements to Managing Member and affiliates	365	408
(Reversal of) provision for credit losses	(41)	51
Amortization of initial direct costs	33	50
Interest expense	117	121
Professional fees	83	87
Outside services	38	47
Other	130	137
Total operating expenses	3,777	4,281
Net income	992	291
Net income:
Managing Member	218	218
Other Members	774	73
Net income	$ 992	$ 291
Net income per Limited Liability Company Unit (Other Members)	$ 0.26	$ 0.02
Weighted average number of Units outstanding	2,993,482	2,993,482

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Allowance for Credit Losses

12 Months Ended

Dec. 31, 2013

Allowance for Credit Losses [Abstract]

Allowance for Credit Losses

5.  Allowance for credit losses:

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

		Accounts Receivable Allowance for Doubtful Accounts						Valuation Adjustments on Financing Receivables				Total Allowance for Credit Losses
		Notes Receivable		Finance Leases		Operating Leases		Notes Receivable		Finance Leases
Balance December 31, 2011	$	-	$	-	$	16	$	4	$	-	$	20
Provision (reversal of provision)		-		12		(6)		45		-		51
Balance December 31, 2012		-		12		10		49		-		71
Reversal of provision		-		(12)		(7)		(22)		-		(41)
Asset disposal		-		-		-		(27)		-		(27)
Balance December 31, 2013	$	-	$	-	$	3	$	-	$	-	$	3

Accounts Receivable

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

Allowances for doubtful accounts are typically established based upon their aging and historical charge off and collection experience and the creditworthiness of specifically identified lessees and borrowers, and invoiced amounts. Accounts receivable deemed uncollectible are generally charged off against the allowance on a specific identification basis. Recoveries of amounts that were previously written-off are recorded as other income in the period received.

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

Financing Receivables

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

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

The asset underlying a direct financing lease contract is considered impaired if the estimated undiscounted future cash flows of the asset are less than its net book value. The estimated undiscounted future cash flows are the sum of the estimated residual value of the asset at the end of the asset’s expected holding period and estimates of undiscounted future rents. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the market place are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date.

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

December 31, 2013		Notes Receivable			Finance Leases		Total
Allowance for credit losses:
Ending balance	$	-		$	-	$	-
Ending balance: individually evaluated for impairment	$	-		$	-	$	-
Ending balance: collectively evaluated for impairment	$	-		$	-	$	-
Ending balance: loans acquired with deteriorated credit quality	$	-		$	-	$	-
Financing receivables:
Ending balance	$	1,701	1	$	200	$	1,901
Ending balance: individually evaluated for impairment	$	1,701		$	200	$	1,901
Ending balance: collectively evaluated for impairment	$	-		$	-	$	-
Ending balance: loans acquired with deteriorated credit quality	$	-		$	-	$	-
1Includes $5 of unamortized initial direct costs.
December 31, 2012		Notes Receivable			Finance Leases		Total
Allowance for credit losses:
Ending balance	$	49		$	-	$	49
Ending balance: individually evaluated for impairment	$	49		$	-	$	49
Ending balance: collectively evaluated for impairment	$	-		$	-	$	-
Ending balance: loans acquired with deteriorated credit quality	$	-		$	-	$	-
Financing receivables:
Ending balance	$	1,566	2	$	338	$	1,904
Ending balance: individually evaluated for impairment	$	1,566		$	338	$	1,904
Ending balance: collectively evaluated for impairment	$	-		$	-	$	-
Ending balance: loans acquired with deteriorated credit quality	$	-		$	-	$	-
2Includes $6 of unamortized initial direct costs.

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

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

Special Mention – Any traditional corporate type account with potential weaknesses (e.g. large net losses or major industry downturns) or, any growth capital account that has less than three months of cash as of the end of the 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 December 31, 2013 and 2012, the Company’s financing receivables by credit quality indicator and by class of financing receivables are as follows (excludes initial direct costs) (in thousands):

		Notes Receivable				Finance Leases
		December 31, 2013		December 31, 2012		December 31, 2013		December 31, 2012
Pass	$	1,696	$	1,538	$	200	$	338
Special mention		-		22		-		-
Substandard		-		-		-		-
Doubtful		-		-		-		-
Total	$	1,696	$	1,560	$	200	$	338

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

			Impaired Loans
December 31, 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		107		107		49		146		18
Total		$	107	$	107	$	49	$	146	$	18

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

December 31, 2013		31-60 Days Past Due		61-90 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables		Recorded Investment>90 Days and Accruing
Notes receivable	$	-	$	-	$	-	$	-	$	1,696	$	1,696	$	-
Finance leases		87		-		-		87		113		200		-
Total	$	87	$	-	$	-	$	87	$	1,809	$	1,896	$	-

December 31, 2012		31-60 Days Past Due		61-90 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables		Recorded Investment>90 Days and Accruing
Notes receivable	$	-	$	-	$	-	$	-	$	1,560	$	1,560	$	-
Finance leases		-		-		125		125		213		338		125
Total	$	-	$	-	$	125	$	125	$	1,773	$	1,898	$	125

As discussed in Note 4, the Company had no notes in non-accrual status as of December 31, 2013 and 2012. As of December 31, 2012, the Company did, however, have three notes receivable that were deemed impaired, all of which have been settled by November 2013. There were no impaired notes as of December 31, 2013. See Note 4 for further discussion.

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

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Notes Receivable, Net

12 Months Ended

Dec. 31, 2013

Notes Receivables, Net [Abstract]

Notes Receivable, Net

4.  Notes receivable, net:

The Company has various notes receivable from borrowers who have financed the purchase of equipment through the Company. At December 31, 2013, the terms of the notes receivable are from 36 to 42 months and bear interest at rates ranging from 11.37% to 14.30% per annum. The notes are secured by the equipment financed and have maturity dates ranging from 2015 through 2017. 

As of December 31, 2013, the Company had neither notes in non-accrual status nor impaired notes. By comparison, as of December 31, 2012, the Company had no notes in non-accrual status. The Company did, however, have three notes receivable that were deemed impaired as of the same date.

Two of the three impaired notes at December 31, 2012 were placed in non-accrual status in 2010, at which time their terms were modified to defer the repayment of principal until April 2012 while maintaining interest-only payments at their original rates of 11.58% and 11.78%, respectively. During 2011, the notes were deemed impaired relative to their original payment terms. From April 1, 2012 well into the third quarter, the interest only payment arrangement was continued pending a final resolution of the terms of repayment. Prior to the end of the third quarter of 2012, a large dollar amount was received to significantly reduce the then outstanding principal balance. During the previous periods when interest only was being paid, all such payments were made in accordance with the then applicable note modification agreements. The notes were returned to accrual status effective October 1, 2012. Both impaired notes were fully settled during the fourth quarter of 2013. The Company had accumulated $22 thousand of fair value adjustments relative to the aforementioned notes through their settlement date.  

During the second quarter of 2012, an additional note was deemed to be impaired and placed in non-accrual status. As such, the Company recorded a fair value adjustment of $27 thousand which reduced the cost basis of the impaired note. As of December 31, 2012, the estimated impairment remained unchanged. As of the same date, the note reflected a principal balance and net investment balance outstanding of $85 thousand and $58 thousand, respectively. Just prior to the end of the third quarter of 2012, past due amounts associated with the impaired note were received bringing the note receivable outstanding current at September 30, 2012. The note was returned to accrual status effective October 1, 2012. The note was fully settled during the first quarter of 2013 prior to its scheduled maturity resulting in a gain of $27 thousand.

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

Year ending December 31, 2014	$	893
2015		618
2016		400
2017		40
		1,951
Less: portion representing unearned interest income		(255)
		1,696
Unamortized initial direct costs		5
Notes receivable, net	$	1,701

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

		2013		2012
IDC amortization - notes receivable	$	6	$	8
IDC amortization - lease assets		27		42
Total	$	33	$	50

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Concentration of Credit Risk and Major Customers (Tables)

12 Months Ended

Dec. 31, 2013

Concentration of Credit Risk and Major Customers [Abstract]

Schedule of Equipment Leased

As of December 31, 2013 and 2012, there were concentrations (greater than or equal to 10% as a percentage of total equipment cost) of equipment leased to lessees and/or financed for borrowers in certain industries as follows:

Industry	2013	2012
Gas/Coal	23%	18%
Retail	15%	11%
Business services	13%	23%
Air transportation	11%	*
Food products	*	10%
Rubber/Miscellaneous plastics	*	10%

* Less than 10%

Schedule of Major Customers Credit Risk Concentration

During 2013 and 2012, certain lessees and/or financial borrowers generated significant portions (defined as greater than or equal to 10%) of the Company’s total leasing and lending revenues, excluding gains or losses on disposition of assets as follows:

		Percentage of Total Leasing and Lending Revenues
Lessee	Type of Equipment	2013	2012
Nomac Drilling, LLC	Mining	17%	15%
IBM Corporation	Research	16%	14%
Aircraft Service International, Inc.	Aviation	10%	*
Wal-Mart Transportation, LLC	Transportation	10%	*
Newell Rubbermaid, Inc.	Materials handling	*	15%

*  Less than 10%

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Members' Capital

12 Months Ended

Dec. 31, 2013

Members' Capital [Abstract]

Members' Capital

12.  Members’ capital:

A total of 2,993,482 Units were issued and outstanding as of December 31, 2013 and 2012, respectively. The Fund was authorized to issue up to 20,000,000 total Units.

The Company has the right, exercisable in the Manager’s discretion, but not the obligation, to repurchase Units of a Unitholder who ceases to be a U.S. Citizen, for a price equal to 100% of the holder’s capital account. The Company is otherwise permitted, but not required, to repurchase Units upon a holder’s request. The repurchase of Fund Units is made in accordance with Section 13 of the Amended and Restated Limited Liability Company Operating Agreement. The repurchase would be at the discretion of the Manager on terms it determines to be appropriate under given circumstances, in the event that the Manager deems such repurchase to be in the best interest of the Company; provided,the Company is never required to repurchase any Units. Upon the repurchase of any Units by the Fund, the tendered Units are cancelled. Units repurchased in prior periods were repurchased at amounts representing the original investment less cumulative distributions made to the Unitholder with respect to the Units. All Units repurchased during a quarter are deemed to be repurchased effective the last day of the preceding quarter, and are not deemed to be outstanding during, or entitled to allocations of net income, net loss or distributions for the quarter in which such repurchase occurs.

The Fund’s net income or net losses are to be allocated 100% to the Members. From the commencement of the Fund until the initial closing date, as defined in the Company’s Operating Agreement, net income and net loss shall be allocated 99% to the Managing Member and 1% to the initial Other Members. Commencing with the initial closing date, net income and net loss shall be allocated 92.5% to the Other Members and 7.5% to the Managing Member.

Fund distributions are to be allocated 7.5% to the Managing Member and 92.5% to the Other Members. Distributions to the Other Members for the years ended December 31, 2013 and 2012 were as follows (in thousands, except as to Units and per Unit data):

		2013		2012
Distributions	$	2,694	$	2,694
Weighted average number of Units outstanding		2,993,482		2,993,482
Weighted average distributions per Unit	$	0.90	$	0.90

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Non-Recourse Debt

12 Months Ended

Dec. 31, 2013

Non-Recourse Debt [Abstract]

Non-Recourse Debt

8.  Non-recourse debt:

At December 31, 2013, non-recourse debt consists of notes payable to financial institutions. The notes are due in monthly installments. Interest on the notes is at fixed rates ranging from 1.41% to 4.40% per annum. The notes are secured by assignments of lease payments and pledges of assets. At December 31, 2013, gross lease rentals totaled approximately $4.1 million over the remaining lease terms; and the carrying value of the pledged assets is approximately $7.3 million. The notes mature at various dates from 2014 through 2018.

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
Year ending December 31, 2014	$	2,064	$	65	$	2,129
2015		873		30		903
2016		454		17		471
2017		464		7		471
2018		103		1		104
	$	3,958	$	120	$	4,078

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Fair Value Measurements (Reconciliation of Level 3 Assets) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unrealized gain on warrants, net recorded during the year	$ 555
Level 3 Estimated Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Balance at December 31, 2012
Unrealized gain on warrants, net recorded during the year	555
Balance at December 31, 2013	$ 555

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Investments in Equipment and Leases, Net

12 Months Ended

Dec. 31, 2013

Investments in Equipment and Leases, Net [Abstract]

Investments In Equipment and Leases, Net

6.  Investments in equipment and leases, net:

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

		Balance December 31, 2012		Reclassifications, Additions / Dispositions		Depreciation/ Amortization Expense or Amortization of Leases		Balance December 31, 2013
Net investment in operating leases	$	11,961	$	398	$	(2,767)	$	9,592
Net investment in direct financing leases		338		(21)		(117)		200
Assets held for sale or lease, net		885		(50)		-		835
Initial direct costs, net of accumulated  amortization of $85 at December 31, 2013  and $96 at December 31, 2012		53		-		(27)		26
Total	$	13,237	$	327	$	(2,911)	$	10,653

Impairment of investments in leases:

Management periodically reviews the carrying values of its assets on leases. Impairment losses are recorded as an adjustment to the net investment in operating leases. No impairment losses were recorded during 2013 and 2012.

The Company utilizes a straight line depreciation method for equipment in all of the categories currently in its portfolio of lease transactions. Depreciation expense on the Company’s equipment totaled $2.8 million and $3.0 million for the years ended December 31, 2013 and 2012, respectively.

As shown in Note 4, IDC amortization expense related to the Company’s operating and direct financing leases totaled $27 thousand and $42 thousand for the years ended December 31, 2013 and 2012, respectively.

All of the Company’s leased property was acquired during the period from 2008 to2013.  

Operating leases:

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

		Balance December 31, 2012		Additions		Reclassifications or Dispositions		Balance December 31, 2013
Transportation	$	4,935	$	-	$	-	$	4,935
Manufacturing		2,606		663		-		3,269
Construction		2,989		-		-		2,989
Mining		2,893		-		-		2,893
Aviation		2,167		-		-		2,167
Materials handling		4,276		-		(2,374)		1,902
Computer		-		139		-		139
Other		-		93		(3)		90
		19,866		895		(2,377)		18,384
Less accumulated depreciation		(7,905)		(2,767)		1,880		(8,792)
Total	$	11,961	$	(1,872)	$	(497)	$	9,592

The average estimated residual value for assets on operating leases was 29% of the assets’ original cost at both December 31, 2013 and 2012. There were no operating leases in non-accrual status at December 31, 2013 and 2012.

Direct financing leases:

As of December 31, 2013, investment in direct financing leases consists of various types of manufacturing and materials handling equipment. As of December 31, 2012, such investment in direct financing leases consisted of various types of manufacturing, cleaning services and materials handling equipment such as sweepers, forklifts and lift trucks. The components of the Company’s investment in direct financing leases as of December 31, 2013 and 2012 are as follows (in thousands):

		2013		2012
Total minimum lease payments receivable	$	297	$	538
Estimated residual values of leased equipment (unguaranteed)		12		33
Investment in direct financing leases		309		571
Less unearned income		(109)		(233)
Net investment in direct financing leases	$	200	$	338

There were no investments in direct financing leases in non-accrual status at December 31, 2013 and 2012.

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

		Operating Leases		Direct Financing Leases		Total
Year ending December 31, 2014	$	2,899	$	175	$	3,074
2015		1,174		109		1,283
2016		471		13		484
2017		471		-		471
2018		109		-		109
	$	5,124	$	297	$	5,421

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Related Party Transactions

12 Months Ended

Dec. 31, 2013

Related Party Transactions [Abstract]

Related Party Transactions

7.  Related party transactions:

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

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

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

Cost reimbursements to the Managing Member or its affiliates are based on its costs incurred in performing administrative services for the Company. These costs are allocated to each managed entity based on certain criteria such as managed assets, number of investors or contributed capital based upon the type of cost incurred. The Managing Member believes that the costs reimbursed are the lower of (i) actual costs incurred on behalf of the Company or (ii) the amount the Company would be required to pay independent parties for comparable administrative services in the same geographic location.

During the years ended December 31, 2013 and 2012, the Managing Member and/or affiliates earned commissions and billed for reimbursements, pursuant to the Operating Agreement as follows (in thousands):

		2013		2012
Administrative costs reimbursed to Managing Member and/or affiliates	$	365	$	408
Asset management fees to Managing Member and/or affiliates		164		208
Acquisition and initial direct costs paid to Managing Member and/or affiliates		125		142
	$	654	$	758

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Borrowing Facilities

12 Months Ended

Dec. 31, 2013

Borrowing Facilities [Abstract]

Borrowing Facilities

9.  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 was for an amount up to $60 million and set to expire in June2014.  During January 2014, the line was increased to $75 million and expiration extended to June 2015.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 December 31, 2013 and 2012, borrowings under the facility were as follows (in thousands):

		2013		2012
Total available under the financing arrangement	$	60,000	$	60,000
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		(7,310)		(5,490)
Total remaining available under the venture, acquisition and warehouse facilities	$	52,690	$	54,510

The Company and its affiliates pay an annual commitment fee to have access to this line of credit. As of December 31, 2013, 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 December 31, 2013, the Company’s Tangible Net Worth requirement under the Credit Facility was $7.5 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 $9.6 million, 0.41 to 1, and 35.10 to 1, respectively, as of December 31, 2013. As such, as of December 31, 2013, 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. There were no borrowings outstanding as of December 31, 2013 and 2012. During the first six months of 2012, the Company borrowed and repaid $1.5 million. The year-to-date weighted average rate on such borrowings was 3.30%.  

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 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 December 31, 2013, the investment program participants were the Company, 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 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.

There were no borrowings under the Warehouse Facility as of December 31, 2013 and December 31, 2012.

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Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Financial assets:
Cash and cash equivalents	$ 857	$ 319
Notes receivable, net	1,701	1,517
Investment in securities	275	289
Fair value of warrants	555
Financial liabilities:
Non-recourse debt	3,940	3,412
Level 1 Estimated Fair Value [Member]
Financial assets:
Cash and cash equivalents	857	319
Notes receivable, net
Investment in securities
Fair value of warrants
Financial liabilities:
Non-recourse debt
Level 2 Estimated Fair Value [Member]
Financial assets:
Cash and cash equivalents
Notes receivable, net
Investment in securities
Fair value of warrants
Financial liabilities:
Non-recourse debt
Level 3 Estimated Fair Value [Member]
Financial assets:
Notes receivable, net	1,701	1,517
Investment in securities	275	289
Fair value of warrants	555
Financial liabilities:
Non-recourse debt	3,940	3,412
Carrying Amount [Member]
Financial assets:
Cash and cash equivalents	857	319
Notes receivable, net	1,701	1,517
Investment in securities	275	289
Fair value of warrants	555
Financial liabilities:
Non-recourse debt	$ 3,958	$ 3,400

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Summary of Significant Accounting Policies (Schedule of Differences Between Book Value and Tax Basis of Net Assets) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Summary of Significant Accounting Policies [Abstract]
Financial statement basis of net assets	$ 9,571	$ 11,491	$ 14,112
Tax basis of net assets (unaudited)	8,387	11,044
Difference	$ 1,184	$ 447

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Related Party Transactions (Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Disclosure Managing Member And Or Affiliates Earned Commissions And Billed For Reimbursements Pursuant To Operating Agreement [Abstract]
Administrative costs reimbursed to Managing Member and/or affiliates	$ 365	$ 408
Asset management fees to Managing Member and/or affiliates	164	208
Acquisition and initial direct costs paid to Managing Member and/or affiliates	125	142
Related party transaction, total	$ 654	$ 758

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Summary of Significant Accounting Policies (Policy)

12 Months Ended

Dec. 31, 2013

Summary of Significant Accounting Policies [Abstract]

Basis of Presentation

Basis of presentation:

The accompanying balance sheets as of December 31, 2013 and 2012, and the related statements of income, changes in members’ capital, and cash flows for the years then ended, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission. Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications had no significant effect on the reported financial position or results of operations.  

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

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

Cash and Cash Equivalents

Cash and cash equivalents:

Cash and cash equivalents include cash in banks and cash equivalent investments such as U.S. Treasury instruments with original and/or purchased maturities of ninety days or less.

Use of Estimates

Use of Estimates:

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

Accounts Receivable

Accounts receivable:

Accounts receivable represent the amounts billed under operating and direct financing lease contracts, and notes receivable which are currently due to the Company. Allowances for doubtful accounts are typically established based on historical charge off and collection experience and the collectability of specifically identified lessees and borrowers, and invoiced amounts. Accounts receivable deemed uncollectible are generally charged off against the allowance on a specific identification basis. Recoveries of amounts that were previously written-off are recorded as other income in the period received.

Credit Risk

Credit risk:

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

Equipment on Operating Leases and Related Revenue Recognition

Equipment on operating leases and related revenue recognition:

Equipment subject to operating leases is stated at cost. Depreciation is recognized on a straight-line method over the terms of the related leases to the equipment’s estimated residual values. Off-lease equipment is generally not subject to depreciation. Maintenance costs associated with the Fund’s portfolio of leased assets are expensed as incurred. Major additions and betterments are capitalized.

Operating lease revenue is recognized on a straight-line basis over the term of the underlying leases. The initial lease terms will vary as to the type of equipment subject to the leases, the needs of the lessees and the terms to be negotiated, but initial leases are generally on terms from 36 to 120 months. The difference between rent received and rental revenue recognized is recorded as unearned operating lease income on the balance sheet.

Operating leases are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management considers the equipment underlying the lease contracts for impairment and periodically reviews the credit worthiness of all operating lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related operating leases may be placed on non-accrual status. Leases placed on non-accrual status are onlyreturned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, revenues are recognized on a cash basis.

Direct Financing Leases and Related Revenue Recognition

Direct financing leases and related revenue recognition:

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

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

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

Notes Receivable, Unearned Interest Income and Related Revenue Recognition

Notes receivable, unearned interest income and related revenue recognition:

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

Allowances for losses on notes receivable are typically established based on historical charge off and collection experience and the collectability of specifically identified borrowers and billed and unbilled receivables. Notes are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and/or interest when due according to the contractual terms of the note agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest 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.

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

Initial Direct Costs

Initial direct costs:

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

Acquisition Expense

Acquisition expense:

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

Asset Valuation

Asset valuation:

Recorded values of the Company’s leased asset portfolio are periodically reviewed for impairment. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than their net book value. The estimated undiscounted future cash flows are the sum of the estimated residual value of the asset at the end of the asset’s expected holding period and estimates of undiscounted future rents. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the market place are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date.

Segment Reporting

Segment reporting:

The Company is organized into one operating segment for the purpose of making operating decisions or assessing performance. Accordingly, the Company operates in one reportable operating segment in the United States.

The Company’s principal decision makers are the Managing Member’s Chief Executive Officer and its Chief Financial Officer and Chief Operating Officer. The Company believes that its equipment leasing business operates as one reportable segment because:  a) the Company measures profit and loss at the equipment portfolio level as a whole; b) the principal decision makers do not review information based on any operating segment other than the equipment leasing transaction portfolio; c) the Company does not maintain discrete financial information on any specific segment other than its equipment financing operations; d) the Company has not chosen to organize its business around different products and services other than equipment lease financing; and e) the Company has not chosen to organize its business around geographic areas.

The primary geographic regions in which the Company sought leasing opportunities were North America and Europe. For the years ended December 31, 2013 and 2012, and as of December 31, 2013 and 2012,  100% of the Company’s operating revenues and long-lived assets are from customers domiciled in North America.

Investment in Securities

Investment in securities:

Purchased securities

Purchased securities are generally not registered for public sale and are carried at cost. Such securities are adjusted to fair value if the fair value is less than the carrying value and such impairment is deemed by the Managing Member to be other than temporary. Factors considered by the Managing Member in determining fair value include, but are not limited to, available financial information, the issuer’s ability to meet its current obligations and indications of the issuer’s subsequent ability to raise capital. Based upon the Company’s review of its portfolio, no fair value adjustment was deemed necessary at December 31, 2013 and 2012. Gains recognized on sales or dispositions of investment securities totaled $5 thousand for the year ended December 31, 2013. There were no sales or dispositions of investment securities during 2012.  

Warrants

Warrants owned by the Company are not registered for public sale, but are considered derivatives and are carried at an estimated fair value on the balance sheet at the end of the period, as determined by the Managing Member. At December 31, 2013, the Company’s portfolio of warrants had an estimated fair value of $555 thousand. At December 31, 2012, the Managing Member estimated the fair value of the warrants to be nominal in amount.

Unearned Operating Lease Income

Unearned operating lease income:

The Company records prepayments on operating leases as a liability under the caption of unearned operating lease income. The liability is recorded when prepayments are received and recognized as operating lease revenue over the period to which the prepayments relate using a straight-line method.

Income Taxes

Income Taxes:

The Company is treated as a partnership for federal income tax purposes. Pursuant to the provisions of Section 701 of the Internal Revenue Code, a partnership is not subject to federal income taxes. Accordingly, the Company has provided current franchise income taxes for only those states which levy income taxes on partnerships. For the years ended December 31, 2013 and 2012, the related provision for state income taxes was approximately $4 thousand and $16 thousand, respectively. The Company does not have any entity level uncertain tax positions. The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions and is generally subject to examination by U.S. federal (or state and local) income tax authorities for three years from the filing of a tax return.

The tax bases of the Company’s net assets and liabilities vary from the amounts presented in these financial statements at December 31, 2013 and 2012 as follows (in thousands):

		2013		2012
Financial statement basis of net assets	$	9,571	$	11,491
Tax basis of net assets (unaudited)		8,387		11,044
Difference	$	1,184	$	447

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

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

		2013		2012
Net income per financial statements	$	992	$	291
Tax adjustments (unaudited):
Adjustment to depreciation expense		(554)		(1,671)
Provision for losses and doubtful accounts		(19)		6
Adjustments to revenues / other expenses		42		219
Adjustments to gain on sales of assets		348		4
Other		(553)		54
Loss per federal tax return (unaudited)	$	256	$	(1,097)

Per Unit Data

Per Unit data:

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

Recent Accounting Pronouncements

Recent Accounting Pronouncements:

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

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Investments in Equipment and Leases, Net (Tables)

12 Months Ended

Dec. 31, 2013

Investments in Equipment and Leases, Net [Abstract]

Investment in Leases

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

		Balance December 31, 2012		Reclassifications, Additions / Dispositions		Depreciation/ Amortization Expense or Amortization of Leases		Balance December 31, 2013
Net investment in operating leases	$	11,961	$	398	$	(2,767)	$	9,592
Net investment in direct financing leases		338		(21)		(117)		200
Assets held for sale or lease, net		885		(50)		-		835
Initial direct costs, net of accumulated  amortization of $85 at December 31, 2013  and $96 at December 31, 2012		53		-		(27)		26
Total	$	13,237	$	327	$	(2,911)	$	10,653

Property on Operating Leases

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

		Balance December 31, 2012		Additions		Reclassifications or Dispositions		Balance December 31, 2013
Transportation	$	4,935	$	-	$	-	$	4,935
Manufacturing		2,606		663		-		3,269
Construction		2,989		-		-		2,989
Mining		2,893		-		-		2,893
Aviation		2,167		-		-		2,167
Materials handling		4,276		-		(2,374)		1,902
Computer		-		139		-		139
Other		-		93		(3)		90
		19,866		895		(2,377)		18,384
Less accumulated depreciation		(7,905)		(2,767)		1,880		(8,792)
Total	$	11,961	$	(1,872)	$	(497)	$	9,592

Components of Company's Investment in Direct Financing Leases

of December 31, 2013, investment in direct financing leases consists of various types of manufacturing and materials handling equipment. As of December 31, 2012, such investment in direct financing leases consisted of various types of manufacturing, cleaning services and materials handling equipment such as sweepers, forklifts and lift trucks. The components of the Company’s investment in direct financing leases as of December 31, 2013 and 2012 are as follows (in thousands):

		2013		2012
Total minimum lease payments receivable	$	297	$	538
Estimated residual values of leased equipment (unguaranteed)		12		33
Investment in direct financing leases		309		571
Less unearned income		(109)		(233)
Net investment in direct financing leases	$	200	$	338

Future Minimum Lease Payments Receivable

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

		Operating Leases		Direct Financing Leases		Total
Year ending December 31, 2014	$	2,899	$	175	$	3,074
2015		1,174		109		1,283
2016		471		13		484
2017		471		-		471
2018		109		-		109
	$	5,124	$	297	$	5,421

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Investments in Equipment and Leases, Net (Components of Investment in Direct Financing Leases) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Investments in Equipment and Leases, Net [Abstract]
Total minimum lease payments receivable	$ 297	$ 538
Estimated residual values of leased equipment (unguaranteed)	12	33
Investment in direct financing leases	309	571
Less unearned income	(109)	(233)
Net investment in direct financing leases	$ 200	$ 338

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Allowance for Credit Losses (Activity in Allowance for Doubtful Accounts) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance	$ 71	$ 20
Provision (reversal of provision)	(41)	51
Asset disposal	(27)
Ending Balance	3	71
Notes Receivable [Member] | Valuation Adjustments On Financing Receivables [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance	49	4
Provision (reversal of provision)	(22)	45
Asset disposal	(27)
Ending Balance		49
Operating Leases [Member] | Allowance for Doubtful Accounts [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance	10	16
Provision (reversal of provision)	(7)	(6)
Ending Balance	3	10
Finance Leases [Member] | Allowance for Doubtful Accounts [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance	12
Provision (reversal of provision)	(12)	12
Ending Balance		$ 12

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Statements of Changes in Members' Capital (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Beginning Balance	$ 11,491	$ 14,112
Distributions to Other Members ($0.90 per Unit)	(2,694)	(2,694)
Distributions to Managing Member	(218)	(218)
Net income	992	291
Ending Balance	9,571	11,491
Other Members [Member]
Beginning Balance (in units)	2,993,482	2,993,482
Beginning Balance	11,491	14,112
Distributions to Other Members ($0.90 per Unit)	(2,694)	(2,694)
Net income	774	73
Ending Balance (in units)	2,993,482	2,993,482
Ending Balance	9,571	11,491
Managing Member [Member]
Distributions to Managing Member	(218)	(218)
Net income	$ 218	$ 218

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Concentration of Credit Risk and Major Customers

12 Months Ended

Dec. 31, 2013

Concentration of Credit Risk and Major Customers [Abstract]

Concentration of Credit Risk and Major Customers

3.  Concentration of credit risk and major customers:

The Company leases equipment to lessees and provides debt financing to borrowers in diversified industries. Leases and notes receivable are subject to the Managing Member’s credit committee review. The leases and notes receivable provide for the return of the equipment to the Company upon default.

As of December 31, 2013 and 2012, there were concentrations (greater than or equal to 10% as a percentage of total equipment cost) of equipment leased to lessees and/or financed for borrowers in certain industries as follows:

Industry	2013	2012
Gas/Coal	23%	18%
Retail	15%	11%
Business services	13%	23%
Air transportation	11%	*
Food products	*	10%
Rubber/Miscellaneous plastics	*	10%

* Less than 10%

During 2013 and 2012, certain lessees and/or financial borrowers generated significant portions (defined as greater than or equal to 10%) of the Company’s total leasing and lending revenues, excluding gains or losses on disposition of assets as follows:

		Percentage of Total Leasing and Lending Revenues
Lessee	Type of Equipment	2013	2012
Nomac Drilling, LLC	Mining	17%	15%
IBM Corporation	Research	16%	14%
Aircraft Service International, Inc.	Aviation	10%	*
Wal-Mart Transportation, LLC	Transportation	10%	*
Newell Rubbermaid, Inc.	Materials handling	*	15%

*  Less than 10%

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Members' Capital (Distributions to Other Members) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Members' Capital [Abstract]
Distributions	$ 2,694	$ 2,694
Weighted average number of Units outstanding	2,993,482	2,993,482
Weighted average distributions per Unit	$ 0.90	$ 0.90

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Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2013

Related Party Transactions [Abstract]

Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement

During the years ended December 31, 2013 and 2012, the Managing Member and/or affiliates earned commissions and billed for reimbursements, pursuant to the Operating Agreement as follows (in thousands):

		2013		2012
Administrative costs reimbursed to Managing Member and/or affiliates	$	365	$	408
Asset management fees to Managing Member and/or affiliates		164		208
Acquisition and initial direct costs paid to Managing Member and/or affiliates		125		142
	$	654	$	758

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Notes Receivable, Net (Minimum Future Payments Receivable) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Notes Receivables, Net [Abstract]
Year ending December 31, 2014	$ 893
2015	618
2016	400
2017	40
Notes receivable, gross	1,951
Less: portion representing unearned interest income	(255)	(230)
Notes receivable	1,696	1,560
Unamortized initial direct costs	5	6
Notes receivable, net	$ 1,701	$ 1,517

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Fair Value Measurements

12 Months Ended

Dec. 31, 2013

Fair Value Measurements [Abstract]

Fair Value Measurements

13.  Fair value measurements:

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

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

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

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

At December 31, 2013, only the Company’s warrants were measured on a recurring basis. As of the same date, there were no non-recurring fair value adjustments. No assets or liabilities required measurement at fair value on a recurring basis at December 31, 2012; however, the Company recorded non-recurring adjustments to reflect the fair values of certain impaired notes receivable during 2012. Amounts at December 31, 2012 reflect the fair value of the then existing impaired assets.

The Company’s valuation policy is determined by members of the Asset Management, Credit and Accounting departments. Whenever possible, the policy is to obtain quoted market prices in active markets to estimate fair values for recognition and disclosure purposes. Where quoted market prices in active markets are not available, fair values are estimated using discounted cash flow analyses, broker quotes, information from third party remarketing agents, third party appraisals of collateral and/or other valuation techniques. These techniques are significantly affected by certain of the Company’s assumptions, including discount rates and estimates of future cash flows. Potential taxes and other transaction costs are not considered in estimating fair values. As the Company is responsible for determining fair value, an analysis is performed on prices obtained from third parties. Such analysis is performed by asset management and credit department personnel who are familiar with the Company’s investments in equipment, notes receivable and equity securities of venture companies. The analysis may include a periodic review of price fluctuations and validation of numbers obtained from a specific third party by reference to multiple representative sources.

The measurement methodologies are as follows:

Warrants (recurring)

Warrants owned by the Company are not registered for public sale, but are considered derivatives and are carried on the balance sheet at an estimated fair value at the end of the period. The valuation of the warrants was determined using a Black-Scholes formulation of value based upon the stock price(s), the exercise price(s), the volatility of comparable venture companies, and a risk free interest rate for the term(s) of the warrant exercise(s). As of December 31, 2013, the calculated fair value of the Fund’s warrant portfolio approximated $555 thousand. Such valuation is classified within Level 3 of the valuation hierarchy. As of December 31, 2012, the Managing Member estimated the fair value of the warrants to be nominal in amount.

Impaired notes receivable

The fair value of the Company’s notes receivable, when impairment adjustments are required, is estimated using either third party appraisals or estimations of the value of collateral (for collateral dependent loans) or discounted cash flow analyses (by discounting estimated future cash flows) using the effective interest rate contained in the terms of the original loan. The Company had no fair value adjustments relative to impaired notes receivable during the year ended December 31, 2013.

During 2012, the Company had recorded fair value adjustments totaling $45 thousand relative to three impaired notes: $18 thousand relative to incremental fair value adjustments recorded during the first quarter of 2012 to further reduce the cost basis of two impaired notes originally deemed impaired in 2011,and an initial fair value of $27 thousand, recorded during the second quarter of 2012, for an additional impaired note.

All of the fair value adjustments recorded in 2012 were non-recurring and were based upon an estimated valuation of underlying collateral. Under the Fair Value Measurements Topic of the FASB Accounting Standards Codification, the fair value of the impaired notes receivable is classified within Level 3 of the valuation hierarchy. The valuation utilizes a market approach technique and uses inputs from third party appraisers that utilize current market transactions as adjusted for certain factors specific to the underlying collateral.

The aforementioned impaired notes were settled by November 2013. There were no impaired notes as of December 31, 2013.  

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

		Level 3 assets
Balance at December 31, 2012	$	-
Unrealized gain on warrants, net recorded during the year		555
Balance at December 31, 2013	$	555

There were no impaired assets at December 31, 2013. The following table 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 December 31, 2012 (in thousands):

		December 31, 2012		Level 1 Estimated Fair Value		Level 2 Estimated Fair Value		Level 3 Estimated Fair Value
Impaired notes receivable, net	$	58	$	-	$	-	$	58

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

Name	Valuation Frequency	Valuation Technique	Unobservable Inputs	Range of Input Values
Warrants	Recurring	Black-Scholes Model	Stock Price	$0.05 - $25.76
			Exercise price	$0.05 - $25.76
			Time to Maturity (in years)	1.96 - 9.98
			Annual risk-free interest rate	0.38% - 3.04%
			Annualized volatility	17.80% - 100.00%

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

The Company has determined the estimated fair value amounts by using market information and valuation methodologies that it considers appropriate and consistent with the fair value accounting guidance. Considerable judgment is required to interpret market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize or has realized in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

Cash and cash equivalents

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

Notes receivable

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

Investment in securities

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

Non-recourse debt

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

Commitments and Contingencies

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

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

The following tables present estimated fair values of the Company’s financial instruments in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification at December 31, 2013 and 2012 (in thousands):

		Fair Value Measurements at December 31, 2013
		Carrying Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	857	$	857	$	-	$	-	$	857
Notes receivable, net		1,701		-		-		1,701		1,701
Investment in securities		275		-		-		275		275
Fair value of warrants		555		-		-		555		555
Financial liabilities:
Non-recourse debt		3,958		-		-		3,940		3,940
		Fair Value Measurements at December 31, 2012
		Carrying Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	319	$	319	$	-	$	-	$	319
Notes receivable, net		1,517		-		-		1,517		1,517
Investment in securities		289		-		-		289		289
Financial liabilities:
Non-recourse debt		3,400		-		-		3,412		3,412