10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-K

⌧              Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

For the year ended December 31, 2020

◻         Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

For the transition period from        to

Commission File number 000-54931

ATEL 15, LLC

(Exact name of registrant as specified in its charter)

California	45-1625956
(State or other jurisdiction of incorporation or organization)	(I. R. S. Employer Identification No.)

The Transamerica Pyramid, 600 Montgomery Street, 9th Floor, San Francisco, California 94111

(Address of principal executive offices)

Registrant’s telephone number, including area code: (415) 989-8800

Securities registered pursuant to section 12(b) of the Act: None

Securities registered pursuant to section 12(g) of the Act: Limited Liability Company Units

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:	Trading Symbol	Name of each exchange on which registered:
N/A	N/A	N/A

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ◻ No ☒

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Act of 1934. Yes ◻ No ☒

Indicate by a check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit files).  Yes ☒  No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “accelerated filer, large accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐	Non-accelerated filer ☒	Smaller reporting company ☒
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

State the aggregate market value of voting stock held by non-affiliates of the registrant: Not applicable

The number of Limited Liability Company Units outstanding as of February 28, 2021 was 6,542,557.

DOCUMENTS INCORPORATED BY REFERENCE

None.

PART I

Item 1. BUSINESS

General Development of Business

ATEL 15, LLC (the “Company” or the “Fund”) was formed under the laws of the state of California on March 4, 2011 (“Date of Inception”) for the purpose of equipment financing and acquiring equipment to engage in equipment leasing and sales activities. The Managing Member of the Company is ATEL Managing Member, LLC (the “Managing Member” or “Manager”), a Nevada limited liability company. The Managing Member is controlled by ATEL Financial Services, LLC (“AFS”), a wholly-owned subsidiary of ATEL Capital Group. The Fund may continue until terminated in accordance with the provisions of the Operating Agreement. Contributions in the amount of $500 were received as of May 3, 2011, which represented the initial member’s capital investment. As a limited liability company, the liability of any individual member for the obligations of the Fund is limited to the extent of capital contributions to the Fund by the individual member.

The Company conducted a public offering of 15,000,000 Limited Liability Company Units (“Units”), at a price of $10 per Unit. As of December 21, 2011, subscriptions for the minimum number of Units (120,000, representing $1.2 million), excluding subscriptions from Pennsylvania investors, had been received and the Fund requested subscription proceeds to be released from escrow. On that date, the Company commenced initial operations and continued in its development stage activities until transitioning to an operating enterprise during the first quarter of 2012. Pennsylvania subscriptions are subject to a separate escrow and are released to the Fund only when aggregate subscriptions for all investors equal to at least $7.5 million. Total contributions to the Fund exceeded $7.5 million on April 4, 2012, at which time a request was processed to release the Pennsylvania escrowed amounts. The offering was terminated on October 28, 2013.

As of December 31, 2020, cumulative gross contributions, less rescissions and repurchases (net of distributions paid and allocated syndication costs, as applicable), totaling $65.9 million (inclusive of the $500 initial Member’s capital investment) have been received. As of the same date, 6,542,557 Units were issued and outstanding.

The Company’s principal objectives are to invest in a diversified portfolio of investments that will (i) preserve, protect and return the Company’s invested capital; (ii) generate regular cash distributions to members, with any balance remaining after required minimum distributions to be used to purchase additional investments during the Reinvestment Period (ending six calendar years after the completion of the Company’s public offering of Units) and (iii) provide additional cash distributions following the Reinvestment Period and until all investment portfolio assets has been sold or otherwise disposed. The Company is governed by the ATEL 15, LLC amended and restated Limited Liability Company Operating Agreement dated October 28, 2011 (the “Operating Agreement”).

Pursuant to the terms of the Operating Agreement, the Managing Member and/or its affiliates receives compensation for services rendered and reimbursements for costs incurred on behalf of the Company (See Note 7, Related party transactions as set forth in Part II, Item 8, Financial Statements and Supplemental Data). The Company is required to maintain reasonable cash reserves for working capital, the repurchase of Units and contingencies. The repurchase of Units is solely at the discretion of the Managing Member.

Narrative Description of Business

The Company has acquired and intends to acquire various types of new and used equipment subject to leases and to make loans secured by equipment acquired by its borrowers. The Company’s primary investment objective is to acquire investments primarily in low-technology, low-obsolescence equipment such as the core operating equipment used by companies in the manufacturing, mining and transportation industries. A portion of the portfolio will include some more technology-dependent equipment such as certain types of communications equipment, medical equipment, manufacturing equipment and office equipment. The Company will also seek investments in equipment or financing of equipment and business involving “green technologies” such as those involved in the following activities: materials recycling, water purification, sewage treatment pollution radiation, gas and other emission treatment, solid waste management, renewable energy generation, as well as many other similar industries and activities.

2

The Company only purchases equipment under pre-existing leases or for which a lease will be entered into concurrently at the time of the purchase. Through December 31, 2020, the Company had purchased equipment with a total acquisition price of $64.8 million. The Company had also funded investments in notes receivable totaling $9.4 million through December 31, 2020.

As of the date of the final commitment of its proceeds from the sale of Units, the Company’s objective is to have at least 75% of its investment portfolio (by cost) consist of equipment leased to lessees that the Manager deems to be high quality corporate creditors and/or leases guaranteed by such high quality corporate creditors. High quality corporate creditors are lessees or guarantors who have a credit rating by Moody’s Investors Service, Inc. of “Baa3” or better, or the credit equivalent as determined by the Manager, or are public and private corporations with substantial revenues and histories of profitable operations, as well as established hospitals with histories of profitability or municipalities. The remaining 25% of the initial investment portfolio may include equipment lease transactions, real property single tenant net leases and other debt or equity financing for companies which, although deemed creditworthy by the Manager, would not satisfy the specific credit criteria for the portfolio described above. Included in this 25% of the portfolio may be growth capital financing investments. No more than 20% of the initial portfolio, by cost, will consist of these growth capital financing investments and no more than 20% of the portfolio, by cost, will consist of real estate investments. The Company’s objective is to invest approximately 25% of its capital in assets that involve “green” technologies or applications as discussed above.

The equipment financing industry is highly competitive. Equipment manufacturers, corporations, partnerships and others offer users an alternative to the purchase of most types of equipment with payment terms that vary widely depending on the type of financing, the lease or loan term and type of equipment. The ability of the Company to keep the equipment leased and the terms of purchase, lease and sale of equipment depends on various factors (many of which neither the Managing Member nor the Company can control), such as general economic conditions, including the effects of inflation or recession, and fluctuations in supply and demand for various types of equipment resulting from, among other things, technological and economic obsolescence.

The Managing Member will use its best efforts to diversify lessees by geography and industry and to maintain an appropriate balance and diversity in the types of equipment acquired and the types of leases entered into by the Company, and will apply the following policies: (i) The Managing Member will seek to limit the amount invested in equipment or property leased to any single lessee to not more than 20% of the aggregate purchase price of investments as of the final commitment of net offering proceeds; (ii) in no event will the Company’s equity investment in equipment or property leased to a single lessee exceed an amount equal to 20% of the maximum capital from the sale of Units (or $30,000,000); and (iii) the Managing Member will seek to invest not more than 20% of the aggregate purchase price of equipment in equipment acquired from a single manufacturer. However, this last limitation is a general guideline only, and the Company may acquire equipment from a single manufacturer in excess of the stated percentage during the offering period and before the offering proceeds are fully invested, or if the Managing Member deems such a course of action to be in the Company’s best interest.

The primary geographic region in which the Company seeks leasing opportunities is North America. All of the Company’s current operating revenues and long-lived assets relate to customers domiciled in the United States.

The business of the Company is not seasonal. The Company has no full time employees. Employees of the Managing Member and affiliates provide the services the Company requires to effectively operate. The cost of these services is reimbursed by the Company to the Managing Member and affiliates per the Operating Agreement.

For further information refer to the financial statements and the footnotes.

3

Equipment Leasing Activities

The Company has acquired a diversified portfolio of equipment. The equipment, all currently located in the United States, has been leased to lessees in various industries. The following tables set forth the types of equipment acquired by the Company through December 31, 2020 and the industries to which the assets have been leased (dollars in thousands):

	Purchase Price		Percentage of
	Excluding		Total
Asset Types	Acquisition Fees		Acquisitions
Marine vessel	$	19,410	29.96	%
Manufacturing		11,328	17.49	%
Transportation, rail		11,295	17.44	%
Food Processing		5,200	8.03	%
Coal terminal		5,084	7.85	%
Material handling		4,147	6.40	%
Agriculture		3,788	5.85	%
Construction		2,590	4.00	%
Research		574	0.89	%
Aviation		443	0.68	%
Computers		393	0.61	%
Other		530	0.80	%
	$	64,782	100.00	%

	Purchase Price		Percentage of
	Excluding		Total
Industry of Lessee	Acquisition Fees		Acquisitions
Oil/Gas field services	$	20,859	32.20	%
Manufacturing		11,276	17.41	%
Food & kindred products		5,323	8.22	%
Utilities		5,200	8.03	%
Wholesale nondurables		5,084	7.85	%
Transportation, rail		4,220	6.51	%
Business services		3,491	5.39	%
Wholesale plastics		2,395	3.70	%
Lumber/Wood		1,787	2.76	%
Transportation		1,482	2.29	%
Non-metallic materials		877	1.35	%
Chemical/Allied products		871	1.34	%
Industrial machinery		710	1.10	%
Other		1,207	1.85	%
	$	64,782	100.00	%

4

From inception to December 31, 2020, the Company has disposed of certain leased assets as set forth below (in thousands):

	Original
	Equipment Cost
	Excluding
Asset Types	Acquisition Fees		Sale Price		Gross Rents
Food processing	$	5,200	$	3,907	$	3,271
Material handling		3,946		836		4,121
Manufacturing		3,491		2,084		1,932
Transportation, rail		1,916		585		1,368
Computers		580		110		576
Construction		393		46		753
Other		826		303		950
	$	16,352	$	7,871	$	12,971

For further information regarding the Company’s equipment lease portfolio as of December 31, 2020, see Note 5 to the financial statements, Equipment under operating leases, net, as set forth in Part II, Item 8, Financial Statements and Supplementary Data.

Notes Receivable Activities

The Company financed assets in diverse industries. The following tables set forth the types of assets financed by the Company through December 31, 2020 and the industries to which the assets have been financed (dollars in thousands):

	Amount Financed		Percentage of
	Excluding		Total
Asset Types	Acquisition Fees		Fundings
Computers	$	2,743	29.22	%
Manufacturing		1,684	17.94	%
Research		900	9.59	%
Furniture & fixtures		700	7.46	%
Chemical processing		300	3.20	%
Vending equipment		250	2.66	%
Food processing		193	2.06	%
Other		2,617	27.87	%
	$	9,387	100.00	%

	Amount Financed		Percentage of
	Excluding		Total
Industry of Borrower	Acquisition Fees		Fundings
Manufacturing	$	3,850	41.01	%
Engineering/Management services		2,000	21.31	%
Electronics		1,234	13.15	%
Computer engines		800	8.52	%
Business services		743	7.92	%
Refuse system		250	2.66	%
Telecommunications		250	2.66	%
Food processing		193	2.06	%
Chemical/Allied products		67	0.71	%
	$	9,387	100.00	%

5

From inception to December 31, 2020, assets financed by the Company that are associated with terminated loans are as follows (in thousands):

	Amount Financed
	Excluding		Disposition		Total Payments
Asset Types	Acquisition Fees		Proceeds		Received
Computers	$	2,743	$	725	$	2,602
Manufacturing		1,434		272		1,509
Furniture & fixtures		800		81		947
Research		900		34		1,047
Vending equipment		250		213		88
Chemical processing		200		102		145
Food processing		193		—		247
Other		2,550		546		2,509
	$	9,070	$	1,973	$	9,094

Item 2. PROPERTIES

The Company does not own or lease any real property, plant or material physical properties other than the equipment held for lease as set forth in Item 1.

Item 3. LEGAL PROCEEDINGS

In the ordinary course of conducting business, there may be certain claims, suits, and complaints filed against the Company. In the opinion of management, the outcome of such matters, if any, will not have a material impact on the Company’s financial position or results of operations. No material legal proceedings are currently pending against the Company or against any of its assets.

Item 4. MINE SAFETY DISCLOSURES

Not applicable.

6

PART II

Item 5.  MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Market Information

There are certain material conditions and restrictions on the transfer of Units imposed by the terms of the Operating Agreement. Consequently, there is no public market for Units and it is not anticipated that a public market for Units will develop. In the absence of a public market for the Units, there is no currently ascertainable fair market value for the Units.

Fund Valuation

Background to Fund Valuation

The Financial Industry Regulatory Authority (“FINRA”), in conjunction with the Securities and Exchange Commission (“SEC”) updated rules for the presentation of account statement values relative to pricing of Direct Placement Program (“DPP”) shares. Under FINRA Notice 15-02 (the “Notice”) the SEC approved amendments to National Association of Securities Dealers (“NASD”) Rule 2340, Customer Account Statements, and FINRA rule 2310, which address a FINRA member firm’s participation in a public offering of a DPP. In summary, the amendments require a FINRA member firm to include in the account statements for customers holding DPP securities a per share value for the DPP. This per share value must be prepared by, or with the material assistance or confirmation of, a third-party valuation expert or service. The results of this valuation must be disclosed in the issuer’s reports filed under the Securities Exchange Act of 1934. A valuation in compliance with the Notice must be undertaken and published on at least an annual basis.

The effective date of the Notice was April 11, 2016.

Methodologies

Broker dealers are required to provide a per share estimated value on the customer account statements for each non-listed DPP security held by their customers. Such estimated value must have been developed in a manner reasonably designed to provide a reliable value. Two valuation methodologies have been defined by FINRA, which by such designation are presumed to be reliable.

Net Investment Methodology

The amendments to NASD Rule 2340(c)(1)(A) require “net investment” to be based on the “amount available for investment” percentage disclosed in the “Estimated Use of Proceeds” section of the issuer’s offering prospectus. In essence, such value is equal to the offering price less selling commissions, other offering and organization expenses, and capital reserves. This method may be used for up to 150 days following the second anniversary of a Fund breaking escrow.

Appraised Value Methodology

As amended, Rule NASD 2340(c)(1)(B) requires that the per share estimated value disclosed in an issuer’s most recent periodic or current report be based upon an appraisal of the assets and liabilities of the program by, or with the material assistance or confirmation of, a third-party valuation expert or service, in conformity with standard industry valuation practice as it relates to both the aforementioned assets and liabilities. No later than 150 days following the second anniversary of the issuer’s break of escrow for its minimum offering, this methodology must be used to establish the required estimated values.

7

Unit Valuation

The per Unit valuation estimate for ATEL 15, LLC has been conducted, and the results disclosed herein, in compliance with the mandates of the Notice.

For ATEL 15, LLC, its estimated value per Unit reflects the Manager’s estimate of current portfolio valuation of all assets and liabilities of the Fund, calculated on a per Unit basis, and as such, does not represent a market value for the Units and may not accurately reflect the value of the Fund Units to the Unit holders if held over time to Fund maturity.

In connection with any estimate of per Unit value, Unit holders and all parties are reminded that no public market for the Units exists. Additionally, in order to preserve the Fund’s pass-through status for federal income tax purposes, the Fund will not permit a secondary market or the substantial equivalent of a secondary market for the Units. In the absence of a public market for the Units, there is no currently ascertainable fair market value for the Units.

The estimate of per Unit value does not take into account any extraordinary potential future business activity of the Fund; rather the valuation represents a snapshot view of the Fund’s portfolio as of the valuation date. In addition, the Fund does not include any analysis of the distributions that have already been paid by the Fund, nor the anticipated returns to Unit holder over the full course of the Fund life cycle, which will be dependent on many factors.

Disclosure

The estimated value per Unit reported in this Form 10-K has been calculated using the “Appraised Value Methodology” described above under “Methodologies” above, as of December 31, 2020.

ATEL 15, LLC, will satisfy the disclosure requirements for providing estimated per Unit values pursuant to the Notice as follows:

For these disclosures, subsequent to the Fund’s initial compliance with FINRA 15-02, annual disclosures of estimated per Unit values, through the termination of the Fund; will be accomplished and included on an annual basis in a document filed with the Securities and Exchange Commission available to the public.

Specifics Underlying Valuation Methodology:

Notes and Explanation of Valuation Components and Calculation

A. Fund Assets and Liabilities (other than as specifically identified below):  The estimated values for non-interest bearing items such as current assets and liabilities are assumed to equal their reported GAAP balances as an appropriate approximation of their fair values. Debt (interest bearing) is assumed to equal the fair values of the debt as disclosed in the footnotes of the financial statements.

B. Equipment under operating leases (net of fees and expenses):  The estimated values for equipment under operating leases are based on calculating the present value of the projected future cash flows. Projected future cash flows include both the remaining contractual lease payments, plus assumptions on lease renewals and sale value of the residuals. Projected future cash flows are net of projected future fees and expenses including:

● management fees applicable for the Fund (4.00% of revenue)

● carried interest applicable for the Fund (7.50% of distributions)

● operating expenses which are assumed to be 3% of original equipment costs for the Fund

Projected future cash flows have been discounted back to present value at discount rates based on like-term U.S. Treasury yields (as of the valuation date) plus a 400 basis point spread, to account for the credit risk differentials between the instrument being valued and U.S. Treasury security yields.

8

Residual values assumptions used in the cash flow projections are as follows:

For On-Lease and Month-to-Month Lease: Considers realized residual as a percent of book residual of 169.5%, based on ATEL’s historical track record as of December 31, 2020.

For Off-Lease:  A fair value of off-lease equipment based upon estimates from ATEL’s seasoned Asset Management Group.

Special Situation Leases:  The valuation of certain leases has been performed outside of the above noted protocol based upon specific lease assumptions different than the macro assumptions above, due to the specific situations of those leases.

C. Investments in Notes Receivable:  The estimated values for Investments in Notes Receivable are estimated based upon various methodologies deployed by financial and credit management including, but not limited to, credit analysis, third party appraisal and/or discounted cash flow analysis based upon current market value techniques and market rates for similar types of lending arrangements, which may consider adjustments for impaired loans as deemed necessary.

D. Investments in Securities:  The estimated values for Investments in Securities have been based on the estimated net book value as of the valuation date (with impairment adjustments), plus any unrealized gain on equity. The unrealized gain on equity is based on either: a) the most recent round of financing, b) the most recent 409A valuation provided by the underlying companies of the warrants, or c) the Manager’s estimate of the company valuations based on all available information, including company financials, company valuation reports, public press releases, and other sources.

E. Warrants Outstanding:  The estimated values for Warrants Outstanding considers the reported GAAP balances to be an appropriate approximation of their fair values.

F. Accrued distributions:  Accrued distributions, which are payable to the Unit holders have been removed from the balance sheet liability section because they are not a liability to a third party.

ATEL 15, LLC Unit Valuation

The Manager’s estimated per Unit value of ATEL 15, LLC at December 31, 2020 as determined, and derived under the guidelines of the Appraised Value Methodology, and pursuant to the above specific enumerated component valuation methodologies and calculations, equals $3.63.An independent national public accounting firm with valuation expertise was retained to examine, attest and confirm ATEL 15, LLC’s per Unit valuation and its component methodologies and calculation as it relates to compliance with the regulatory mandate defined in the Notice. In this regard, they examined the components of the valuation methodologies and determined them to be reasonable and within industry standards. Other component attributes, including the bases and related key assumptions of the calculation were tested for their completeness, underlying documentation support and mathematical accuracy. Upon completion of their efforts, their attestation report confirmed that the per unit valuation of ATEL 15, LLC, and the related notes, in all material respects, was based upon industry practice as described in the Manager’s valuation approach.

9

Disclaimer

The foregoing Fund per Unit valuation has been performed solely for the purpose of providing an estimated value per Unit in accordance with a regulatory mandate, in order to provide the broker dealer and custodian community with a valuation on a reasonable and attested basis for use in assigning an estimation of a Unit holder’s account value. Any report or disclosure of such estimated per Unit valuation is to be accompanied by statements that the value does not represent an estimate of the amount a Unit holder would receive if the Unit holder were to seek to sell the Units, and that the Fund intends to liquidate its assets in the ordinary course of its business and over the Fund’s term. Further, each statement of the Fund’s estimated per Unit valuation is to be accompanied by a disclosure that there can be no assurance as to (1) when the Fund will be fully liquidated, (2) the amount the Fund may actually receive if and when the Fund seeks to liquidate its assets, (3) the amount of lease or loan payments the Fund will actually receive over the remaining term, (4) the amount of asset disposition proceeds the Fund will actually receive over the remaining term, and (5) the amounts that may actually be received in distributions by Unit holders over the course of the remaining term.

Distributions

The members of record are entitled to certain distributions as provided under the Operating Agreement. The Company commenced periodic distributions beginning with the month of January 2012. Additional distributions have been consistently made through December 31, 2020.

Cash distributions were paid by the Fund to members of record as of June 30, 2020, and paid through July 31, 2020. Distributions may be characterized for tax, accounting and economic purposes as a return of capital, a return on capital (including escrow interest) or a portion of each. Generally, the portion of each cash distribution by a company which exceeds its net income for the fiscal period would constitute a return of capital.

The Fund is required by the terms of its Operating Agreement to distribute the net cash flow generated by its investments in certain minimum amounts during the Reinvestment Period before it can reinvest its operating cash flow in additional portfolio assets. See the discussion in the ATEL 15, LLC Prospectus dated October 28, 2011 (“Prospectus”) under “Income, Losses and Distributions — Reinvestment.” Accordingly, the amount of cash flow from Fund investments distributed to members will not be available for reinvestment in additional portfolio assets.

As net cash flows from operations are anticipated to fluctuate during the remaining life of the Fund, distributions will only be paid on an annual basis beginning with March of 2018. The amount of all future distributions is dependent upon the timing of lease payments, renewals and asset sales, which will vary during the year.

Through December 31, 2020, the Fund has made annualized distributions of 5% of the investors’ original capital contributions, commencing with the closing of the Fund. At this time, early investors have received distributions in excess of 65.5% of their original investment.

Cash distributions were based on current and anticipated gross revenues from the leases and loans acquired. During the Fund’s acquisition and operating stages, the Fund may incur short term borrowing to fund regular distributions of such gross revenues to be generated by newly acquired transactions during their respective initial fixed terms. As such, all Fund periodic cash distributions made during these stages have been, and are expected in the future to be, based on the Fund’s actual and anticipated gross revenues to be generated from the binding initial terms of the leases and loans acquired.

10

The following table summarizes distribution activity for the Fund from inception through December 31, 2020 (in thousands except for Units and Per Unit Data):

														Total		Weighted
		Return of				Distribution				Total				Distribution		Average Units
Distribution Period (1)	Paid	Capital				of Income				Distribution				per Unit(2)		Outstanding(3)
Monthly and quarterly distributions
Oct 2011 – Dec 2011 (Distribution of escrow interest)	Feb 2012 – Jun 2012	$	—			$	—			$	—			$	n/a	n/a
Jan 2012 – Nov 2012	Feb 2012 – Dec 2012		1,173				—				1,173				0.79	1,476,249
Dec 2012 – Nov 2013	Jan 2013 – Dec 2013		4,191				—				4,191				0.88	4,758,784
Dec 2013 – Nov 2014	Jan 2014 – Dec 2014		5,952				—				5,952				0.90	6,620,428
Dec 2014 – Nov 2015	Jan 2015 – Dec 2015		5,951				—				5,951				0.90	6,612,560
Dec 2015 – Nov 2016	Jan 2016 – Dec 2016		5,934				—				5,934				0.90	6,606,921
Dec 2016 – Nov 2017	Jan 2017 – Dec 2017		5,892				—				5,892				0.90	6,567,800
Dec 2017 – Nov 2018	Jan 2018 – Dec 2018		1,918				—				1,918				0.29	6,554,450
Dec 2018 – Nov 2019	Jan 2019 – Dec 2019		2,958				—				2,958				0.45	6,542,557
Dec 2019 – Jun 2020	Jan 2020 – Jul 2020		3,271				—				3,271				0.50	6,542,557
		$	37,240			$	—			$	37,240			$	6.51
Source of distributions
Lease and loan payments and sales proceeds received		$	37,240	100.00	%	$	—	0.00	%	$	37,240	100.00	%
Interest Income			—	0.00	%		—	0.00	%		—	0.00	%
Debt against non-cancellable firm term payments on leases and loans			—	0.00	%		—	0.00	%		—	0.00	%
		$	37,240	100.00	%	$	—	0.00	%	$	37,240	100.00	%

(1) Investors may elect to receive their distributions either monthly or quarterly (See “Timing and Method of Distributions” on Page 67 of the Prospectus).

(2) Total distributions per Unit represents the per Unit distribution rate for those units which were outstanding for all of the applicable period.

(3) Balances shown represent weighted average units for the period from January 1, 2012 to November 30, 2012, December 1, 2012 to November 30, 2013, December 1, 2013 to November 30, 2014, December 1, 2014 to November 30, 2015, December 1, 2015 to November 30, 2016, December 1, 2016 to November 30, 2017, December 1, 2017 to November 30, 2018, December 1, 2018 to Novermber 30, 2019, December 1, 2019 to June 30, 2020, respectively.

Item 6.  SELECTED FINANCIAL DATA

A smaller reporting company is not required to present selected financial data in accordance with item 301(c) of Regulation S-K.

Item 7.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Statements contained in this Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” (“MD&A”) and elsewhere in this Form 10-K, which are not historical facts, may be forward-looking statements. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. In particular, economic recession and changes in general economic conditions, including fluctuations in demand for equipment, lease rates, and interest rates, may result in delays in investment and reinvestment, delays in leasing, re-leasing, and disposition of equipment, and reduced returns on invested capital. The Company’s performance is subject to risks relating to lessee defaults and the creditworthiness of its lessees. The Company’s performance is also subject to risks relating to the value of its equipment at the end of its leases, which may be affected by the condition of the equipment, technological obsolescence and the markets for new and used equipment at the end of lease terms. Investors are cautioned not to attribute undue certainty to these forward-looking statements, which speak only as of the date of this Form 10-K. We undertake no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this Form 10-K or to reflect the occurrence of unanticipated events, other than as required by law.

11

Overview

ATEL 15, LLC (the “Company” or the “Fund”) was formed under the laws of the state of California on March 4, 2011 (“Date of Inception”) for the purpose of equipment financing and acquiring equipment to engage in equipment leasing and sales activities.

The Company conducted a public offering of 15,000,000 Limited Liability Company Units (“Units”), at a price of $10 per Unit. As of December 21, 2011, subscriptions for the minimum number of Units (120,000, representing $1.2 million), excluding subscriptions from Pennsylvania investors, had been received and the Fund requested subscription proceeds to be released from escrow. On that date, the Company commenced initial operations and continued in its development stage activities until transitioning to an operating enterprise during the first quarter of 2012. Pennsylvania subscriptions are subject to a separate escrow and are released to the Fund only when aggregate subscriptions for all investors equal to at least $7.5 million. Total contributions to the Fund exceeded $7.5 million on April 4, 2012, at which time a request was processed to release the Pennsylvania escrowed amounts. The offering was terminated on October 28, 2013 with a total of 6,620,971 Units subscribed, representing contributions, net of rescissions and repurchases, approximating $65.9 million. As of December 31, 2020, 6,542,557 Units were issued and outstanding.

During 2012, the Company began its acquisition stage with the investment of the net proceeds from the public offering of Units. During the reinvestment period (“Reinvestment Period”) (defined as six full years following the year the offering was terminated), the Company has reinvested and will reinvest cash flow in excess of certain amounts required to be distributed to the members and/or utilize its credit facilities to acquire additional equipment. Throughout the Reinvestment Period, which ended December 31, 2019, the Company anticipated continued reinvestment of cash flow in excess of minimum distributions and other obligations. The Company is governed by its Limited Liability Company Operating Agreement dated October 28, 2011 (“Operating Agreement”).

The Company shall continue until terminated in accordance with the provisions of the Operating Agreement. Periodic distributions are paid at the discretion of the Managing Member.

Results of Operations

TheCompanyhad netlossesof$872thousandand$425thousandfortheyearsendedDecember31,2020and2019, respectively.TheresultsfortheyearendedDecember31,2020 primarily reflect adecreaseinoperating revenues partially offset by an increase in other income when compared to the prior year.

Totaloperatingrevenueswere$4.1millionand$4.6millionfortheyearsendedDecember31,2020and2019, respectively.The$522 thousand,or 11%,declineinoperatingrevenues wasprimarilydueto decreasesin operating lease revenues, otherrevenue and interest on notes receivablepartiallyoffsetby a favorable change in gains/lossesrecordedonsales ofoperatingleaseassets.

Operatingleaserevenuesdecreasedby$706 thousandprimarilyduetocontinuedrun-offanddispositionofleaseassets sinceDecember31, 2019. Otherrevenuedeclinedby$514 thousandastheprioryearamountincludedanapproximate$584thousandofdeferred maintenancefeesforexcesswearandtearoncertainequipmentreturned resulting from a lease termination duringthesecondquarterof2019; and interest income on notes receivable decreased by $56 thousand as the Fund’s investment in notes receivable have all matured during 2019. Partially offsetting such reductions in operating revenues was a $754 thousand favorable change in gains/losses recorded on sales of lease assets as the Fund recorded a $181 thousand current year gain as compared to losses of $573 thousand in the prior year. Such favorable variance was primarily attributable to a change in the mix of assets sold.

Totaloperatingexpenseswere$5.1million for each of the years endedDecember31,2020and2019. While the year over year variance was insignificant in total, such variance was comprised of offsetting changes related to increases in impairment losses and other expense; and decreases in depreciation,professionalfees,taxesonincomeand franchisefees,asset managementfees,andcostsreimbursedtothe Manager.

12

During the year ended December 31, 2020, the Company recorded $995 thousand of impairment losses to reduce the book value of certain equipment deemed impaired. There were no such losses in 2019. In addition, other expense increased by $128 thousand due to higher freight and shipping, railcar maintenance and insurance costs. Depreciation decreased by $880thousand primarily due to the impact of run-off, sales and an increase in the number of assets fully depreciated to their residual values. Such decrease is net of $372 thousand of additional depreciationrecordedtoreflectyear-to-datechangesinestimatedresidualvaluesofcertainequipmentgenerating revenueundermonth-to-monthextensions.Professionalfeesdecreasedby$72thousandasa resultof loweraudit-relatedandtax servicesbillings; and taxesonincomeand franchisefeesdecreasedby$53thousand duetoa lowerestimatedtaxliability. In addition, asset management fees were lower by $38 thousand duetothedeclineinmanaged assetsandrelatedrents;andcostsreimbursedtotheManagerdecreasedby$32thousandduetolowerallocatedcosts reflectiveoftheFund’sdecliningassets.

Duringthe current year, the Companyrecordedotherincome totaling$78 thousandrelatedtothefairvaluation ofits warrants and investmentsecurities. Such other income was comprised of $128 thousand of unrealized gain on the fair valuation of warrants, a $36 thousand loss on the sale of certain investment securities, and unrealized losses of $14 thousand on fair valuation of investment securities. By comparison, other income /loss for the prior year netted to zero as the $17 thousand unrealized gains on the fair valuation of the Company’s warrants was fully offset by the $17 thousand unrealized loss on the valuation of its investment securities.

Capital Resources and Liquidity

AtDecember31,2020and 2019,the Company’scashandcashequivalentstotaled$1.3millionand$3.0million, respectively.Theliquidityofthe Companyvaries,increasingtotheextentcashflows fromleasesandproceedsofasset salesexceedexpensesanddecreasingasdistributionsaremadetotheMembersandtotheextentexpensesexceedcash flows fromleasesandproceedsfromassetsales.

TheCompanycurrentlybelievesit hasadequatereservesavailabletomeetitsimmediatecashrequirementsandthoseof the nexttwelvemonths,butintheeventthosereserveswerefoundtobeinadequate,the Companywouldlikelybeina positiontoborrowagainstits currentportfoliotomeetsuchrequirements.

Cash Flows

The following table sets forth summary cash flow data (in thousands):

	2020		2019
Net cash provided by (used in):
Operating activities	$	2,492	$	3,142
Investing activities		283		559
Financing activities		(4,505)		(2,390)
Net (decrease) increase in cash and cash equivalents	$	(1,730)	$	1,311

During the years ended December31,2020and2019,the Company’sprimarysourceofliquiditywascashflowfromitsportfolioof operatingleasecontracts.Duringthe samerespectiveperiods,the Companyreceived$286thousandand $579thousandofproceedsfromsalesofleaseassets. In addition, duringthefirsthalfof2019,the Companyobtained$4.6 millionofborrowingsundernon-recoursedebt.Therewereno suchborrowingsin2020.

During the years ended December31,2020and2019,cashwasprimarilyusedtopaydistributions,andto repayborrowingsundernon-recoursedebt.DistributionspaidtotheOtherMembersandtheManagingMembertotaled$3.5millionand$3.2million during 2020 and 2019, respectively;andcashusedtoreducenon-recoursedebttotaled$959thousandand $1.7millionforthe samerespectiveperiods.Inaddition,during2019,repaymentsweremadeto settle the$2.1millionoutstandingbalanceonthe seniorlong-termdebt.Cashwasalsousedtopayinvoicesrelatedto managementfeesandexpenses,andotherpayablesin both years.

13

Borrowing facilities:

The Company was a party with ATEL Capital Group and certain subsidiaries, and affiliated funds in a $75 million revolving credit facility with a syndicate of financial institutions as lenders. The credit facility was renewed during the fourth quarter of 2019, whereupon, the Company ceased to be a participant.

Distributions

The Company commenced periodic distributions beginning with the month of January 2012. Additional distributions have been consistently made through December 31, 2020. See Item 5, Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities, for additional information regarding the distributions.

Commitments and Contingencies and Off-Balance Sheet Transactions

Commitments and Contingencies

At December 31, 2020, there were no commitments to purchase lease assets or to fund investments in notes receivable.

Off-Balance Sheet Transactions

None.

Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

See the Report of Independent Registered Public Accounting Firm, Financial Statements and Notes to Financial Statements attached hereto at pages 15 through 33.

14

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Members

ATEL 15, LLC

Opinion on the Financial Statements

We have audited the accompanying balance sheets of ATEL 15, LLC (the “Company”), as of December 31, 2020 and 2019, the related statements of operations, changes in members’ capital, and cash flows for the years then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2020 and 2019, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Management of the Company’s Managing Member. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures to respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters.

/s/ Moss Adams LLP

San Francisco, California

March 29, 2021

We have served as the Company’s auditor since 2011.

15

ATEL 15, LLC

BALANCE SHEETS

DECEMBER 31, 2020 AND 2019

(In Thousands)

	2020		2019
ASSETS
Cash and cash equivalents	$	1,297	$	3,027
Accounts receivable, net		46		73
Due from Managing Member and affiliates		55		—
Investment in securities		445		316
Warrants, fair value		20		225
Equipment under operating leases, net		14,812		18,314
Prepaid expenses and other assets		15		21
Total assets	$	16,690	$	21,976
LIABILITIES AND MEMBERS’ CAPITAL
Accounts payable and accrued liabilities:
Due to Managing Member and affiliates	$	—	$	155
Accrued distributions to Other Members		—		1,472
Other		228		138
Non-recourse debt		3,108		4,067
Unearned operating lease income		106		69
Total liabilities		3,442		5,901
Commitments and contingencies
Members’ capital:
Managing Member		—		—
Other Members		13,248		16,075
Total Members’ capital		13,248		16,075
Total liabilities and Members’ capital	$	16,690	$	21,976

See accompanying notes.

16

ATEL 15, LLC

STATEMENTS OF OPERATIONS

FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019

(In Thousands Except for Units and Per Unit Data)

	2020		2019
Operating revenues:
Leasing and lending activities:
Operating leases revenue, net	$	3,829	$	4,535
Interest on notes receivable		—		56
Gain (loss) on sales of operating lease assets		181		(573)
Other revenue		101		615
Total operating revenues		4,111		4,633
Operating expenses:
Depreciation of operating lease assets		2,400		3,280
Asset management fees to Managing Member		147		185
Cost reimbursements to Managing Member and/or affiliates		537		569
Provision for credit losses		—		13
Impairment losses on equipment		995		—
Impairment losses on investment in securities		17		—
Amortization of initial direct costs		2		26
Interest expense		123		140
Professional fees		159		231
Outside services		76		90
Taxes on income and franchise fees		109		162
Storage fees		133		127
Other expense		363		235
Total operating expenses		5,061		5,058
Loss from operations		(950)		(425)
Other income (loss):
Loss on sale of investment in securities		(36)		—
Unrealized loss on fair value adjustment for securities		(14)		(17)
Unrealized gain on fair value adjustment for warrants		128		17
Total other income		78		—
Net loss	$	(872)	$	(425)
Net loss:
Managing Member	$	156	$	359
Other Members		(1,028)		(784)
	$	(872)	$	(425)
Net loss per Limited Liability Company Unit (Other Members)	$	(0.16)	$	(0.12)
Weighted average number of Units outstanding		6,542,557		6,542,557

See accompanying notes.

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ATEL 15, LLC

STATEMENTS OF CHANGES IN MEMBERS’ CAPITAL

FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019

(In Thousands Except for Units and Per Unit Data)

		Amount
		Other		Managing
	Units	Members		Member		Total
Balance December 31, 2018	6,542,557	$	21,289	$	—	$	21,289
Distributions to Other Members ($0.68 per Unit)	—		(4,430)		—		(4,430)
Distributions to Managing Member	—		—		(359)		(359)
Net (loss) income	—		(784)		359		(425)
Balance December 31, 2019	6,542,557		16,075		—		16,075
Distributions to Other Members ($0.27 per Unit)	—		(1,799)		—		(1,799)
Distributions to Managing Member	—		—		(156)		(156)
Net (loss) income	—		(1,028)		156		(872)
Balance December 31, 2020	6,542,557	$	13,248	$	—	$	13,248

See accompanying notes.

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ATEL 15, LLC

STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019

(In Thousands)

	2020		2019
Operating activities:
Net loss	$	(872)	$	(425)
Adjustment to reconcile net loss to cash provided by operating activities:
(Gain) loss on sales of operating lease assets		(181)		573
Loss on sale of investment in securities		36		—
Depreciation of operating lease assets		2,400		3,280
Amortization of initial direct costs		2		26
Provision for credit losses		2		13
Impairment losses on investment in securities		17		—
Impairment losses on equipment		995		—
Unrealized loss on fair value adjustment for securities		14		17
Unrealized gain on fair value adjustment for warrants		(128)		(17)
Changes in operating assets and liabilities:
Accounts receivable		25		(11)
Due from Managing Member and affiliates		(55)		—
Prepaid expenses and other assets		6		9
Due to Managing Member and affiliates		104		(5)
Accounts payable, other		90		(326)
Unearned operating lease income		37		8
Net cash provided by operating activities		2,492		3,142
Investing activities:
Purchase of securities		(3)		(20)
Proceeds from sales of operating lease assets		286		579
Net cash provided by investing activities		283		559
Financing activities:
Borrowings under non-recourse debt		—		4,624
Repayments under non-recourse debt		(959)		(1,748)
Repayments under senior long term debt		—		(2,068)
Distributions to Other Members		(3,271)		(2,958)
Distributions to Managing Member		(275)		(240)
Net cash used in financing activities		(4,505)		(2,390)
Net (decrease) increase in cash and cash equivalents		(1,730)		1,311
Cash and cash equivalents at beginning of year		3,027		1,716
Cash and cash equivalents at end of year	$	1,297	$	3,027
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	$	123	$	106
Cash paid during the period for taxes	$	103	$	120
Schedule of non-cash investing and financing transactions:
Distributions payable to Other Members at year-end	$	—	$	1,472
Distributions payable to Managing Member at year-end	$	—	$	119
Conversion of warrants to equity securities	$	333	$	168

See accompanying notes.

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ATEL 15, LLC

NOTES TO FINANCIAL STATEMENTS

1. Organization and Limited Liability Company matters:

ATEL 15, LLC (the “Company” or the “Fund”) was formed under the laws of the state of California on March 4, 2011 for the purpose of raising capital and originating equipment financing transactions and acquiring equipment to engage in equipment leasing and sales activities. The Managing Member of the Company is ATEL Managing Member, LLC (the “Managing Member” or “Manager”), a Nevada limited liability company. The Managing Member is controlled by ATEL Financial Services (“AFS”), a wholly-owned subsidiary of ATEL Capital Group. The Fund may continue until terminated as provided in the ATEL 15, LLC Amended and Restated Limited Liability Company Operating Agreement dated October 28, 2011 (the ”Operating Agreement”). Contributions in the amount of $500 were received as of May 3, 2011, which represented the initial member’s capital investment. As a limited liability company, the liability of any individual member for the obligations of the Fund is limited to the extent of capital contributions to the Fund by the individual member.

The Company conducted a public offering of 15,000,000 Limited Liability Company Units (“Units”), at a price of $10 per Unit. As of December 21, 2011, subscriptions for the minimum number of Units (120,000, representing $1.2 million), excluding subscriptions from Pennsylvania investors, had been received and the Fund requested subscription proceeds to be released from escrow. On that date, the Company commenced initial operations and continued in its development stage activities until transitioning to an operating enterprise during the first quarter of 2012. Pennsylvania subscriptions are subject to a separate escrow and are released to the Fund only when aggregate subscriptions for all investors equal to at least $7.5 million. Total contributions to the Fund exceeded $7.5 million on April 14, 2012, at which time a request was processed to release the Pennsylvania escrowed amounts. The offering was terminated on October 28, 2013.

As of December 31, 2020, cumulative gross contributions, less rescissions and repurchases (net of distributions paid and allocated syndication costs, as applicable), totaling $65.9 million  (inclusive of the $500 initial Member’s capital investment) have been received.  As of the same date, 6,542,557 Units were issued and outstanding.

The Company’s principal objectives are to invest in a diversified portfolio of investments that will (i) preserve, protect and return the Company’s invested capital; (ii) generate regular cash distributions to unitholders, with any balance remaining after required minimum distributions to be used to purchase additional investments during the Reinvestment Period (ending six calendar years after the completion of the Company’s public offering of Units) and (iii) provide additional cash distributions following the Reinvestment Period and until all investment portfolio assets has been sold or otherwise disposed. The Company is governed by the ATEL 15, LLC amended and restated Limited Liability Company Operating Agreement dated October 28, 2011 (the “Operating Agreement”).

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

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ATEL 15, LLC

NOTES TO FINANCIAL STATEMENTS

2. Summary of significant accounting policies:

Basis of presentation:

The accompanying balance sheets as of December 31, 2020 and 2019, and the related statements of operations, changes in members’ capital, and cash flows for the years then ended, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission. Certain prior year amounts may have been reclassified to conform to the current year presentation. These reclassifications had no significant effect on the reported financial position or results from operations.

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

In preparing the accompanying financial statements, the Company has reviewed, as determined necessary by the Managing Member, events that have occurred after December 31, 2020, 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 for determination of the allowance for doubtful accounts and reserve for credit losses on notes receivable.

Accounts receivable:

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

Credit risk:

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

21

ATEL 15, LLC

NOTES TO FINANCIAL STATEMENTS

Equipment on operating leases and related revenue recognition:

Equipment subject to operating leases is stated at cost. Depreciation is being recognized on a straight-line method over the terms of the related leases to the equipment’s estimated residual values. Off-lease equipment is generally not subject to depreciation. The Company depreciates all lease assets, in accordance with guidelines consistent with Accounting Standards Codification (ASC) 360-10-35-3, over the periods of the lease terms contained in each asset’s respective lease contract to the estimated residual value at the end of the lease contract. All lease assets are purchased only concurrent with the execution of a lease commitment by the lessee. Thus, the original depreciation period corresponds with the term of the original lease. Once the term of an original lease contract is completed, the subject property is typically sold to the existing user, re-leased to the existing user, or, when off-lease, is held for sale. Assets which are re-leased continue to be depreciated using the terms of the new lease agreements and the estimated residual values at the end of the new lease terms, adjusted downward as necessary. Assets classified as held-for-sale are carried at the lower of carrying amount, or the fair value less cost to sell (ASC 360-10-35-43).

The Company does not use the equipment held in its portfolio, but holds it solely for lease and ultimate sale. In the course of marketing equipment that has come off-lease, management may determine at some point that re-leasing the assets may provide a superior return for investors and would then execute another lease. Upon entering into a new lease contract, management will estimate the residual value once again and resume depreciation. If, and when, the Company, at any time, determines that depreciation in value may have occurred with respect to an asset held-for-sale, the Company would review the value to determine whether a material reduction in value had occurred and recognize any appropriate impairment. All lease assets, including off-lease assets, are subject to the Company’s quarterly impairment analysis, as described below. Maintenance costs associated with the Fund’s portfolio of leased assets are expensed as incurred. Major additions and betterments are capitalized.

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

Operating leases are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management considers the equipment underlying the lease contracts for impairment and periodically reviews the credit worthiness of all operating lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related operating leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, revenues are recognized on a cash basis. Uponadoptionof Accounting Standards Update (“ASU”) 2016-02,provisionsfor creditlossesrelatingto operatingleasesare now includedin lease income in theCompany’s financial statements.ProvisionsforcreditlossespriortoJanuary1,2019were previously includedin operating expensesin theCompany’sfinancial statements.

Initial direct costs:

Incremental costs of a lease that would not have been incurred if the lease had not been obtained are capitalized and amortized over the lease term. All other costs associated with the execution of the Company’s leases are expensed as incurred.

Asset valuation:

Recorded values of the Company’s leased asset portfolio are reviewed each quarter to confirm the reasonableness of established residual values and to determine whether there is indication that an asset impairment might have taken place. The Company uses a variety of sources and considers many factors in evaluating whether the respective book values of its assets are appropriate. In addition, the Company may direct a residual value review at any time if it becomes aware of issues regarding the ability of a lessee to continue to make payments on its lease contract. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than the net book value. The estimated undiscounted future cash flows are the sum of the residual value of the asset at the end of the asset’s lease contract and undiscounted future rents from the existing lease contract. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date. Upward adjustments for impairments recognized in prior periods are not made in any circumstances.

22

ATEL 15, LLC

NOTES TO FINANCIAL STATEMENTS

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 primary geographic region in which the Company seeks leasing opportunities is North America. For the years ended December 31, 2020 and 2019, and as of December 31, 2020 and 2019, all of the Company’s current operating revenues and long-lived assets relate to customers domiciled in the United States.

Investment in securities:

Purchased securities

The Company’s purchased securities registered for public sale with readily determinable fair values are measured at fair value with any changes in fair value recognized in the Company’s results of operations. The Company’s purchased securities that do not have readily determinable fair values are measured at cost minus impairment and adjusted for changes in observable prices. Factors considered by the Managing Member in determining fair value include, but are not limited to, available financial information, the issuer’s ability to meet its current obligations and indications of the issuer’s subsequent ability to raise capital. The Company had $445 thousand and $316 thousand of purchased securities at December 31, 2020 and 2019, respectively. An approximate $249 thousand of the purchased securities balance at December 31, 2020 reflects the fair market value of certain warrants converted to equity securities during the current year. Such conversion related to a borrower’s completion of an initial public offering in June 2020. During the respective years ended December 31, 2020 and 2019, the Company recorded $14 thousand and $17 thousand of unrealized losses on investment securities with readily determinable fair values. In addition, during the year ended December 31, 2020, the Company recorded a $17 thousand adjustment to reduce the value of certain impaired securities to zero as of December 31, 2020. There was no such adjustment during the prior year. Also, during 2020, the Company sold investment securities valued at approximately $176 thousand and realized a $36 thousand loss on the sale. There were no such sales in 2019.

Warrants

Warrants owned by the Company are not registered for public sale, but are considered derivatives and are reflected at an estimated fair value on the balance sheet, as determined by the Managing Member. As of December 31, 2020 and 2019, the estimated fair value of the Company’s portfolio of warrants was $20 thousand and $225 thousand, respectively. During the years ended December 31, 2020 and 2019, the Company recorded unrealized gains of $128 thousand and $17 thousand, respectively, on fair valuation of its warrants. There were net exercises of warrants in exchange for securities totaling $333 thousand during the third quarter of 2020 and $168 thousand during the first quarter of 2019. No other warrant exercises occurred during the years ended December 31, 2020 and 2019.

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, 2020 and 2019, the related provision for state income taxes was approximately $109 thousand and $162 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.

23

ATEL 15, LLC

NOTES TO FINANCIAL STATEMENTS

The tax bases of the Company’s net assets and liabilities vary from the amounts presented in these financial statements at December 31, 2020 and 2019 as follows (in thousands):

	2020		2019
Financial statement basis of net assets	$	13,248	$	16,075
Tax basis of net assets (unaudited)		18,892		22,174
Difference	$	(5,644)	$	(6,099)

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

The following reconciles the net loss reported in these financial statements to the income reported on the Company’s federal tax return (unaudited) for the years ended December 31, 2020 and 2019 (in thousands):

	2020		2019
Net loss per financial statements	$	(872)	$	(425)
Tax adjustments (unaudited):
Adjustment to depreciation expense		(126)		(525)
Provision for losses and doubtful accounts		2		—
Adjustments to revenues		99		12
Adjustments to gain on sales of assets		106		1,017
Other		1,055		92
Income per federal tax return (unaudited)	$	264	$	171

Per Unit data:

The Company issues only one class of Units, none of which are considered dilutive. Net loss and distributions per Unit is based upon the weighted average number of Other Members Units outstanding during the year.

Recent accounting pronouncements:

In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-03, Codification Improvements to Financial Instruments (“ASU 2020-03”). ASU 2020-03 improves and clarifies various financial instruments topics, including the current expected credit losses (CECL) standard issued in 2016. ASU 2020-03 includes seven different issues that describe the areas of improvement and the related amendments to GAAP that are intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The amendments have different effective dates. Management is currently evaluating the effect of adopting this new accounting guidance but does not expect adoption will have a material impact on the Fund’s financial statements and disclosures.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326) (“ASU 2016-13”). The main objective of this Update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments affect entities holding financial assets and equipment under operating leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, equipment under operating leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. Management is currently evaluating the standard and expects the update may potentially result in the increase in the allowance for credit losses given the change to estimated losses over the contractual life adjusted for expected prepayments.

24

ATEL 15, LLC

NOTES TO FINANCIAL STATEMENTS

In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments — Credit Losses (“ASU 2018-19”). The new standard clarifies certain aspects of the new CECL impairment model in ASU 2016-13. The amendment clarifies that receivables arising from operating leases are within the scope of ASC 842, rather than ASC 326. Management is currently evaluating the impact of the standard on the financial statements and related disclosure requirements.

On August 15, 2019, the FASB issued a proposed ASU that would grant certain companies additional time to implement the FASB standards on CECL and hedging. The proposed ASU defers the effective date for CECL to fiscal periods beginning after December 15, 2022, including interim periods within those fiscal years; and defers the effective date for hedging to fiscal periods beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The ASU was approved on October 16, 2019. In February 2020, the FASB issued ASU 2020-02 and delayed the effective date of Topic 326 until the fiscal years beginning after December 15, 2022.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (“ASU 2018-13”), which amends the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. This ASU modifies disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. The amendments in this Update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The Fund adopted ASU 2018-13 on January 1, 2020. Such adoption did not have a significant impact on the Fund’s financial statements and related disclosure requirements.

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, 2020 and 2019, 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	2020		2019
Oil/Gas extraction	43	%	43	%
Manufacturing	18	%	13	%
Elec/Gas/Sanitation	11	%	10	%

During 2020 and 2019, 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	2020		2019
Halliburton Overseas Limited	Marine vessel	27	%	27	%
GE Aviation	Manufacturing	22	%	19	%
Cargill, Inc.	Material handling	14	%	15	%
Aep Generating Company	Facility - Other	10	%	12	%

These percentages are not expected to be comparable in future periods due to anticipated changes in the mix of investments and/or lessees as a result of normal business activities.

25

ATEL 15, LLC

NOTES TO FINANCIAL STATEMENTS

4. Notes receivable, net:

During 2019, the Company had various notes receivable from borrowers who have financed the purchase of equipment through the Company. As of December 31, 2019, all of the notes were paid in full and have been terminated.

5. Equipment under operating leases, net:

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

				Reclassifications	Depreciation/
			& Additions /		Amortization
	Balance		Dispositions and		Expense or		Balance
	December 31,			Impairment	Amortization		December 31,
	2019			Losses	of Leases		2020
Equipment under operating leases, net	$	15,159	$	(1,610)	$	(2,400)	$	11,149
Assets held for sale or lease, net		3,149		510		—		3,659
Initial direct costs, net		6		—		(2)		4
Total	$	18,314	$	(1,100)	$	(2,402)	$	14,812

During the year ended December 31, 2020, the Company recorded $995 thousand of impairment adjustment to reduce the book value of certain leases deemed impaired. The Company did not record such adjustment during the year ended December 31, 2019.

The Company utilizes a straight line depreciation method over the term of the equipment lease for equipment on operating leases currently in its portfolio. Depreciation expense on the Company’s equipment totaled $2.4 million and $3.3 million for the years ended December 31, 2020 and 2019, respectively. The total for 2020 includes $372 thousand of additional depreciation recorded to reflect year-to-date changes in estimated residual values of certain equipment generating revenue under month-to-month extensions. Such estimated residual values of equipment associated with leases on month-to-month extensions are evaluated at least semi-annually, and depreciation recorded for the change in the estimated reduction in value. There were no such additional adjustments to depreciation recorded as of December 31, 2019. IDC amortization expense related to the Company’s operating leases totaled $2 thousand and $26 thousand for 2020 and 2019, respectively.

All of the Company’s lease asset purchases and capital improvements were made during the years from 2011 through 2015.

Operating leases:

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

	Balance				Reclassifications		Balance
	December 31,				or Dispositions		December 31,
	2019		Additions		Impairment losses		2020
Marine vessel	$	19,410	$	—	$	—	$	19,410
Manufacturing		6,437		—		(2,079)		4,358
Transportation, rail		5,094		—		—		5,094
Facility – other		5,084		—		—		5,084
Agriculture		2,112		—		(2,112)		—
Construction		1,775		—		—		1,775
Other		1,158		—		—		1,158
		41,070		—		(4,191)		36,879
Less accumulated depreciation		(25,911)		(2,400)		2,581		(25,730)
Total	$	15,159	$	(2,400)	$	(1,610)	$	11,149

26

ATEL 15, LLC

NOTES TO FINANCIAL STATEMENTS

The average estimated residual value for assets on operating leases was 18% and 23% of the assets’ original cost at December 31, 2020 and 2019, respectively. There were no operating leases on non-accrual status at December 31, 2020 and 2019.

As of December 31, 2020, the aggregate amounts of future minimum lease payments receivable are as follows (in thousands):

	Operating
	Leases
Year ending December 31, 2021	$	2,251
2022		2,063
2023		1,175
2024		254
2025		16
	$	5,759

The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of December 31, 2020 and 2019, the respective useful lives of each category of lease assets in the Company’s portfolio are as follows (in years):

Equipment category	Useful Life
Transportation, rail	35 – 50
Marine vessel	20 – 30
Manufacturing	10 – 15
Agriculture	7 – 10
Construction	7 – 10
Facility - other	7 – 10
Other	7 – 10

6. Allowance for credit losses:

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

	Allowance for		Valuation
	Doubtful		Adjustments		Total
	Accounts		on		Allowance for
	Operating Leases		Notes Receivable		Credit Losses
Balance December 31, 2018	$	—	$	67	$	67
Provision for credit losses		—		13		13
Write-off		—		(80)		(80)
Balance December 31, 2019		—		—		—
Provision for credit losses		2		—		2
Balance December 31, 2020	$	2	$	—	$	2

The Fund had no financing receivables as of December 31, 2020 and 2019.

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 the Managing Member and/or affiliates for providing administrative services to the Company. Administrative services provided include Company accounting, investor relations, legal counsel and lease and equipment documentation. The Managing Member is not reimbursed for services whereby it is entitled to receive a separate fee as compensation for such services, such as management of investments.

27

ATEL 15, LLC

NOTES TO FINANCIAL STATEMENTS

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

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

The Managing Member and/or affiliates earned fees and billed for reimbursements, pursuant to the Operating Agreement, during the years ended December 31, 2020 and 2019 as follows (in thousands):

	2020		2019
Administrative costs reimbursed to Managing Member and/or affiliates	$	537	$	569
Asset management fees to Managing Member		147		185
	$	684	$	754

8. Non-recourse debt:

At December 31, 2020, non-recourse debt consists of notes payable to financial institutions. The note payments are due in monthly installments. Interest on the note is 3.40% per annum. The note is secured by assignments of lease payments and pledges of assets. At December 31, 2020, gross operating lease rentals totaled approximately $3.3 million over the remaining lease terms and the carrying value of the pledged assets is $7.4 million. The note matures in 2024.

The non-recourse debt does not contain any material financial covenants. The debt is secured by a specific lien granted by the Company to the non-recourse lender on (and only on) the discounted lease transactions. The lender has recourse only to the following collateral: the leased equipment; the related lease chattel paper; the lease receivables; and proceeds of the foregoing items. The non-recourse obligation is payable solely out of the respective specific security and the Company does not guarantee (nor is the Company otherwise contractually responsible for) the payment of the non-recourse debt as a general obligation or liability of the Company. Although the Company does not have any direct or general liability in connection with the non-recourse debt apart from the security granted, the Company is directly and generally liable and responsible for certain representations, warranties, and covenants made to the lender, such as warranties as to genuineness of the transaction parties’ signatures, as to the genuineness of the respective lease chattel paper or the transaction as a whole, or as to the Company’s good title to or perfected interest in the secured collateral, as well as similar representations, warranties and covenants typically provided by non-recourse borrowers and customary in the equipment finance industry, and are viewed by such industry as being consistent with non-recourse discount financing obligations. Accordingly, as there are no financial covenants or ratios imposed on the Company in connection with the non-recourse debt, the Company has determined that there are no material covenants with respect to the non-recourse debt that warrant footnote disclosure.

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

	Principal		Interest		Total
Year ending December 31, 2021	$	945	$	91	$	1,036
2022		979		58		1,037
2023		1,012		25		1,037
2024		172		1		173
Total	$	3,108	$	175	$	3,283

The non-recourse debt represents half of a $9.2 million non-recourse promissory note executed on May 20, 2019. The non-recourse promissory note was split evenly between the Fund and its affiliate, ATEL 14, LLC, and was used to pay off the senior long-term debt. The non-recourse promissory note is to be serviced by the cash flows generated under a renewed bareboat charter.

28

ATEL 15, LLC

NOTES TO FINANCIAL STATEMENTS

9. Borrowing facilities:

The Company was a party with ATEL Capital Group and certain subsidiaries, and affiliated funds in a $75 million revolving credit facility with a syndicate of financial institutions as lenders. The credit facility was renewed during the fourth quarter of 2019, whereupon, the Company ceased to be a participant.

10. Commitments:

At December 31, 2020, there were no commitments to purchase lease assets or to fund investments in notes receivable.

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.

12. Members’ capital:

A total of 6,542,557 Units were issued and outstanding at both December 31, 2020 and 2019, respectively, including the 50 Units issued to the initial Member (Managing Member). The Fund was authorized to issue up to 15,000,000 Units in addition to the Units issued to the initial Member.

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

The Fund’s net income or net losses are to be allocated 100% to the members. From the commencement of the Fund until the initial closing date, net income and net loss were allocated 99% to the Managing Member and 1% to the initial members. Commencing with the initial closing date, net income and net loss are to be allocated 92.5% to the 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 members. The Company commenced periodic distributions during the first quarter of 2012.

29

ATEL 15, LLC

NOTES TO FINANCIAL STATEMENTS

Distributions to the Other Members for the years ended December 31, 2020 and 2019 were as follows (in thousands except Units and per Unit data):

	2020		2019
Distributions declared	$	1,799	$	4,430
Weighted average number of Units outstanding		6,542,557		6,542,557
Weighted average distributions per Unit	$	0.27	$	0.68

13. Fair value measurements:

Under applicable accounting standards, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

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

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

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

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

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

At December 31, 2020 and 2019, the Company’s warrants and investment in securities were measured on a recurring basis. In addition, certain equipment deemed impaired were measured at fair value on a non-recurring basis as of December 31, 2020. There was no equipment measured at fair value as of December 31, 2019.

The measurement methodology is 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, 2020 and 2019, the calculated fair value of the Fund’s warrant portfolio approximated $20 thousand and $225 thousand, respectively. Such valuations are classified within Level 3 of the valuation hierarchy.

30

ATEL 15, LLC

NOTES TO FINANCIAL STATEMENTS

The fair value of warrants that were accounted for on a recurring basis and classified as Level 3 are as follows (in thousands):

	2020		2019
Fair value of warrants at beginning of year	$	225	$	376
Unrealized gain on fair market valuation of warrants		128		17
Warrants converted to securities		(333)		(168)
Fair value of warrants at end of year	$	20	$	225

Investment securities (recurring)

The Company’s investment securities registered for public sale with readily determinable fair values are measured at fair value with any changes in fair value recognized in the Company’s results of operations. As of December 31, 2020 and 2019, the fair value of such investment securities totaled $422 thousand and $70 thousand respectively.

The fair value of investment securities that were accounted for on a recurring basis as of the years ended December 31, 2020 and 2019 classified as Level 1 are as follows (in thousands):

		2020		2019
Fair value of securities at the beginning of year	$	70	$	127
Conversion of previously held private securities		53		—
Securities sold		(176)		—
Warrants converted to securities		333		—
Unrealized gain (loss) on fair market valuation of securities		142		(57)
Fair value of investment securities at the end of year	$	422	$	70

Impaired lease and off-lease equipment (non-recurring)

During the year ended December 31, 2020, the Company recorded fair value adjustments totaling $995 thousand to reduce the cost basis of certain manufacturing and agriculture equipment. There were no impaired equipment during 2019.

			Level 1		Level 2		Level 3
	December 31		Estimated		Estimated		Estimated
	2020		Fair Value		Fair Value		Fair Value
Assets measured at fair value on a non-recurring basis (in thousands):
Impaired lease and off-lease equipment	$	960	$	—	$	—	$	960

Under the Fair Value Measurements Topic of the FASB Accounting Standards Codification, the fair value of impaired lease assets were classified within Level 3 of the valuation hierarchy as the data sources utilized for the valuation of such assets reflect significant inputs that are unobservable in the market. Such valuation utilizes a market approach technique and uses inputs that reflect the sales price of similar assets sold by affiliates and/or information from third party remarketing agents not readily available in the market.

31

ATEL 15, LLC

NOTES TO FINANCIAL STATEMENTS

The following tables summarize the valuation techniques and significant unobservable inputs used for the Company’s recurring and non-recurring fair value calculation/adjustments categorized as Level 3 in the fair value hierarchy at December 31, 2020 and 2019:

December 31, 2020
	Valuation	Valuation	Unobservable	Range of Input Values
Name	Frequency	Technique	Inputs	(Weighted Average)
Warrants	Recurring	Black-Scholes formulation	Stock price	$0.05 - $28.66($.24)
			Exercise price	$0.10 - $160.05($.32)
			Time to maturity (in years)	0.98 - 3.35(1.18)
			Risk-free interest rate	0.10% - 0.22%(0.11%)
			Annualized volatility	33.86% - 158.37%(35.28%)
Lease and Off-lease equipment	Non-recurring	Market Approach	Third Party Agents' Pricing	$0 - $150,000
			Quotes - per equipment	(total of $960,000)
			Equipment Condition	Poor to Average

December 31, 2019
	Valuation	Valuation	Unobservable	Range of Input Values
Name	Frequency	Technique	Inputs	(Weighted Average)
Warrants	Recurring	Black-Scholes formulation	Stock price	$0.12- $12.92 ($0.38)
			Exercise price	$0.10 - $160.05 ($0.41)
			Time to maturity (in years)	1.98 - 6.08 (2.20)
			Risk-free interest rate	1.58% - 1.73% (1.59%)
			Annualized volatility	37.97% - 109.07% (48.35%)

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

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

Cash and cash equivalents

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

Investment in securities

The Company's purchased securities registered for public sale with readily determinable fair value are carried at fair value. These investment securities are valued based on their quoted market price.

Non-recourse 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.

32

ATEL 15, LLC

NOTES TO FINANCIAL STATEMENTS

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, 2020 and 2019 (in thousands):

	Fair Value Measurements at December 31, 2020
	Carrying
	Amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	1,297	$	1,297	$	—	$	—	$	1,297
Investment in securities		422		422		—		—		422
Warrants, fair value		20		—		—		20		20
Financial liabilities:
Non-recourse debt		3,108		—		—		3,212		3,212

	Fair Value Measurements at December 31, 2019
	Carrying
	Amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	3,027	$	3,027	$	—	$	—	$	3,027
Investment in securities		70		70		—		—		70
Warrants, fair value		225		—		—		225		225
Financial liabilities:
Non-recourse debt		4,067		—		—		4,115		4,115

14. Global health emergency:

On January 30, 2020, the World Health Organization declared a global health emergency. The Fund’s operations are located in California, which has restricted gatherings of people due to the coronavirus outbreak. At present, the Fund’s operations have not been adversely affected and continue to function effectively. Due to the dynamic nature of these unprecedented circumstances and possible business disruption, the Fund will continue to monitor the situation closely, but given the uncertainty about the situation, an estimate of the future impact, if any, cannot be made at this time.

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Item 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND

FINANCIAL DISCLOSURES

None.

Item 9A.  CONTROLS AND PROCEDURES

Evaluation of disclosure controls and procedures

The Company’s Managing Member’s Chief Executive Officer, and Executive Vice President and Chief Financial and Operating Officer (“Management”), evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e)) as of the end of the period covered by this report. Based on the evaluation of the Company’s disclosure controls and procedures, the Chief Executive Officer and Executive Vice President and Chief Financial and Operating Officer concluded that as of the end of the period covered by this report, the design and operation of these disclosure controls and procedures were effective.

The Company does not control the financial reporting process, and is solely dependent on the Management of the Managing Member, who is responsible for providing the Company with financial statements in accordance with generally accepted accounting principles in the United States. The Managing Member’s disclosure controls and procedures, as they are applicable to the Company, means controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Act (15 U.S.C. 78a et seq.) is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Management’s Annual Report on Internal Control over Financial Reporting

The Management of the Managing Member is responsible for establishing and maintaining adequate internal control over financial reporting as that term is defined in Exchange Act Rule 13a-15(f) for the Company, and for performing an assessment of the effectiveness of internal control over financial reporting as of December 31, 2020. The internal control process of the Managing Member, as it is applicable to the Company, was designed to provide reasonable assurance to Management regarding the preparation and fair presentation of published financial statements, and includes those policies and procedures that:

(1) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles in the United States, and that the Company’s receipts and expenditures are being made only in accordance with authorization of the Management of the Managing Member; and

(2) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.

All internal control processes, no matter how well designed, have inherent limitations. Therefore, even those processes determined to be effective can provide only reasonable assurance with respect to the reliability of financial statement preparation and presentation. Further, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

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Management of the Managing Member assessed the effectiveness of its internal control over financial reporting, as it is applicable to the Company, as of December 31, 2020. In making this assessment, it used the criteria set forth in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on its assessment, Management of the Managing Member concluded that the Managing Member’s internal control over financial reporting, as it is applicable to the Company, was effective as of December 31, 2020.

This annual report does not include an audit report of the Company’s independent registered public accounting firm regarding internal control over financial reporting. Management’s internal control over financial reporting was not subject to audit by the Company’s independent registered public accounting firm pursuant to Section 989G of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which exempts non-accelerated filers from Section 404(b) of the Sarbanes-Oxley Act of 2002.

Changes in internal control

There were no changes in the Managing Member’s internal control over financial reporting, as it is applicable to the Company, during the year ended December 31, 2020 that has materially affected, or is reasonably likely to materially affect, the Managing Member’s internal control over financial reporting, as it is applicable to the Company.

35

PART III

Item 10. DIRECTORS AND EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT

The registrant is a Limited Liability Company and has no officers or directors.

ATEL Managing Member, LLC (the “Managing Member” or “Manager”) is the Company’s Managing Member. The Managing Member is controlled by ATEL Financial Services, LLC (“AFS”), a wholly-owned subsidiary of ATEL Capital Group (“ACG” or “ATEL”). The outstanding voting capital stock of ATEL is owned 100% by Dean L. Cash.

Each of AFS and ATEL Leasing Corporation (“ALC”) is a wholly-owned subsidiary of ACG and performs services for the Company on behalf of the Managing Member. Acquisition services, equipment management, lease administration and asset disposition services are performed by ALC; investor relations and communications services, and general administrative services are performed by AFS. ATEL Securities Corporation (“ASC”), a wholly-owned subsidiary of AFS, performs distribution services in connection with the Company’s public offering of its Units.

The officers and directors of ATEL and its affiliates are as follows:

Dean L. Cash	Chairman of the Board, President and Chief Executive Officer of ATEL Managing Member, LLC (Managing Member)
Paritosh K. Choksi	Director, Executive Vice President and Chief Financial Officer and Chief Operating Officer of ATEL Managing Member, LLC (Managing Member)
Vasco H. Morais	Executive Vice President, Secretary and General Counsel of ATEL Managing Member, LLC (Managing Member)

Dean L. Cash, age 70, became chairman, president and chief executive officer of ATEL in April 2001. Mr. Cash joined ATEL as director of marketing in 1980 and served as a vice president since 1981, executive vice president since 1983 and a director since 1984. Prior to joining ATEL, Mr. Cash was a senior marketing representative for Martin Marietta Corporation, data systems division, from 1979 to 1980. From 1977 to 1979, he was employed by General Electric Corporation, where he was an applications specialist in the medical systems division and a marketing representative in the information services division. Mr. Cash was a systems engineer with Electronic Data Systems from 1975 to 1977, and was involved in maintaining and developing software for commercial applications. Mr. Cash received a B.S. degree in psychology and mathematics in 1972 and an M.B.A. degree with a concentration in finance in 1975 from Florida State University. Mr. Cash is an arbitrator with the American Arbitration Association and is qualified as a registered principal with the Financial Industry Regulatory Authority.

Paritosh K. Choksi, age 67, joined ATEL in 1999 as a director, senior vice president and its chief financial officer. He became its executive vice president and CFO/COO in April 2001. Prior to joining ATEL, Mr. Choksi was chief financial officer at Wink Communications, Inc. from 1997 to 1999. From 1977 to 1997, Mr. Choksi was with Phoenix American Incorporated, a financial services and management company, where he held various positions during his tenure, and was senior vice president, chief financial officer and director when he left the company. Mr. Choksi was involved in all corporate matters at Phoenix and was responsible for Phoenix’s capital market needs. He also served on the credit committee overseeing all corporate investments, including its venture lease portfolio. Mr. Choksi was a part of the executive management team which caused Phoenix’s portfolio to increase from $50 million in assets to over $2 billion. Mr. Choksi is a member of the board of directors of Syntel, Inc. Mr. Choksi received a bachelor of technology degree in mechanical engineering from the Indian Institute of Technology, Bombay; and an M.B.A. degree from the University of California, Berkeley.

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Vasco H. Morais, age 62, joined ATEL in 1989 as general counsel. Mr. Morais manages ATEL’s legal department, which provides legal and contractual support in the negotiating, documenting, drafting, reviewing and funding of lease transactions. In addition, Mr. Morais advises on general corporate law matters, and assists on securities law issues. From 1986 to 1989, Mr. Morais was employed by the BankAmeriLease Companies, Bank of America’s equipment leasing subsidiaries, providing in-house legal support on the documentation of tax-oriented and non-tax oriented direct and leveraged lease transactions, vendor leasing programs and general corporate matters. Prior to the BankAmeriLease Companies, Mr. Morais was with the Consolidated Capital Companies in the Corporate and Securities Legal Department involved in drafting and reviewing contracts, advising on corporate law matters and securities law issues. Mr. Morais received a B.A. degree in 1982 from the University of California in Berkeley, a J.D. degree in 1986 from Golden Gate University Law School; and an M.B.A. (Finance) degree from Golden Gate University in 1997. Mr. Morais, an active member of the State Bar of California since 1986, served as co-chair of the Uniform Business Law Section of the State Bar of California and was inducted as a fellow of the American College of Commercial Finance Lawyers in 2010.

Audit Committee

The board of directors of the Managing Member acts as the audit committee of the Company. Dean L. Cash and Paritosh K. Choksi are members of the board of directors of the Managing Member and are deemed to be financial experts. They are not independent of the Company.

Section 16(a) Beneficial Ownership Reporting Compliance

Based solely on a review of Forms 3, 4, and 5, the Company is not aware of any failures to file reports of beneficial ownership required to be filed during or for the year ended December 31, 2020.

Code of Ethics

A Code of Ethics that is applicable to the Company, including the Chief Executive Officer and Chief Financial Officer and Chief Operating Officer of its Manager, ATEL Managing Member, LLC, or persons acting in such capacity on behalf of the Company, is included as Exhibit 14.1 to this report.

Item 11. EXECUTIVE COMPENSATION

The registrant has no officers or directors.

Set forth hereinafter is a description of the nature of remuneration paid and to be paid to the Manager and its affiliates. The amount of such remuneration paid for the years ended December 31, 2020 and 2019 is set forth in Item 8 of this report under the caption “Financial Statements and Supplementary Data - Notes to Financial Statements - Related party transactions,” at Note 7 thereof, which information is hereby incorporated by reference.

Asset Management Fee and Carried Interest

The Company pays the Manager an annual Asset Management Fee in an amount equal to 4% of Gross Operating Lease Revenues and Cash from Sales or Refinancing. The Asset Management Fee is paid on a monthly basis. The amount of the Asset Management Fee payable in any year is reduced for that year to the extent it would otherwise exceed the Asset Management Fee Limit, as described below. The Asset Management Fee is paid for services rendered by the Manager and its affiliates in determining portfolio and investment strategies and generally managing or supervising the management of the investment portfolio.

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The Manager supervises performance of all management activities, including, among other activities: the acquisition and financing of the investment portfolio, collection of lease and loan revenues, monitoring compliance by lessees borrowers with their contract terms, assuring that investment assets are being used in accordance with all operative contractual arrangements, paying operating expenses and arranging for necessary maintenance and repair of equipment and property in the event a lessee fails to do so, monitoring property, sales and use tax compliance and preparation of operating financial data. The Manager intends to delegate all or a portion of its duties and the Asset Management Fee to one or more of its affiliates who are in the business of providing such services.

The Manager also receives, as its Carried Interest, an amount equal to 7.5% of all Company Distributions.

Limitations on Fees

The Fund has adopted a single Asset Management Fee plus the Carried Interest as a means of compensating the Manager for sponsoring the Fund and managing its operations. While this compensation structure is intended to simplify management compensation for purposes of investor’s understanding, state securities administrators use a more complicated compensation structure in their review of equipment program offerings in order to assure that those offerings are fair under the states’ merit review guidelines. The total of all Front End Fees, the Carried Interest and the Asset Management Fee will be subject to the Asset Management Fee Limit in order to assure these state administrators that the Fund will not bear greater fees than permitted under the state merit review guidelines. The North American Securities Administrators Association, Inc. ("NASAA") is an organization of state securities administrators, those state government agencies responsible for qualifying securities offerings in their respective states. NASAA has established standards for the qualification of a number of different types of securities offerings and investment products, including its Statement of Policy on Equipment Programs (the "NASAA Equipment Leasing Guidelines"). Article IV, Sections C through G of the NASAA Equipment Leasing Guidelines establish the standards for payment of reasonable carried interests, promotional interests and fees for equipment acquisition, management, resale and releasing services to equipment leasing program sponsors. Article IV, Sections C through G of the NASAA Equipment Leasing Guidelines set the maximum compensation payable to the sponsor and its affiliates from an equipment leasing program such as the Fund. The Asset Management Fee Limit will equal the maximum compensation payable under Article IV, Sections C through G of the NASAA Equipment Leasing Guidelines as in effect on the date of the Fund’s prospectus (the "NASAA Fee Limitation"). Under the Asset Management Fee Limit, the Fund will calculate the maximum fees payable under the NASAA Fee Limitation and guarantee that the Asset Management Fee it will pay the Manager and its Affiliates, when added to its Carried Interest, will never exceed the fees and interest payable to a sponsor and its affiliates under the NASAA Fee Limitation.

Asset Management Fee Limit. The Asset Management Fee Limit will be calculated each year during the Fund’s term by calculating the total fees that would be paid to the Manager if the Manager were to be compensated on the basis of the maximum compensation payable under the NASAA Fee Limitation, including the Manager’s Carried Interest, as described below. To the extent that the amount paid as Front End Fees, the Asset Management Fee, and the Carried Interest for any year would cause the total fees to exceed the aggregate amount of fees calculated under the NASAA Fee Limitation for the year, the Asset Management Fee and/or Carried Interest for that year will be reduced to equal the maximum aggregate fees under the NASAA Fee Limitation. To the extent any such fees are reduced, the amount of such reduction will be accrued and deferred, and such accrued and deferred compensation would be paid to the Manager in a subsequent period, but only to the extent that the deferred compensation would be within the Asset Management Fee Limit for that later period. Any deferred fees that cannot be paid under the applicable limitations through the date of liquidation would be forfeited by the Manager at liquidation.

Under the NASAA Equipment Leasing Guidelines, the Fund is required to commit a minimum percentage of the Gross Proceeds to Investment in Equipment, calculated as the greater of: (i) 80% of the Gross Proceeds reduced by 0.0625% for each 1% of indebtedness encumbering the Fund’s equipment; or (ii) 75% of such Gross Proceeds. The Fund intends to incur total indebtedness equal to 50% of the aggregate cost of its equipment. The Operating Agreement requires the Fund to commit at least 85.875% of the Gross Proceeds to Investment in Equipment. Based on the formula in the NASAA Guidelines, the Fund’s minimum Investment in Equipment would equal 76.875% of Gross Proceeds (80%-[50% × .0625%] = 76.875%), and the Fund’s minimum Investment in Equipment would therefore exceed the NASAA Fee Limitation minimum by 9%.

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The amount of the Carried Interest permitted the Manager under the NASAA Fee Limitation will be dependent on the amount by which the percentage of Gross Proceeds the Fund ultimately commits to Investment in Equipment exceeds the minimum Investment in Equipment under the NASAA Fee Limitation. The NASAA Fee Limitation permits the Manager and its Affiliates to receive compensation in the form of a carried interest in Fund Net Income, Net Loss and Distributions equal to 1% for the first 2.5% of excess Investment in Equipment over the NASAA Guidelines minimum, 1% for the next 2% of such excess, and 1% for each additional 1% of excess Investment in Equipment. With a minimum Investment in Equipment of 85.875%, the Manager and its Affiliates may receive an additional carried interest equal to 6.5% of Net Profit, Net Loss and Distributions under the foregoing formula (2.5% + 2% + 4.5% = 9%; 1% + 1% + 4.5% = 6.5%). At the lowest permitted level of Investment in Equipment, the NASAA Guidelines would permit the Manager and its Affiliates to receive a promotional interest equal to 5% of Distributions of Cash from Operations and 1% of Distributions of Sale or Refinancing Proceeds until Members have received total Distributions equal to their Original Invested Capital plus an 8% per annum cumulative return on their Adjusted Invested Capital, and, thereafter, the promotional interest may increase to 15% of all Distributions.

With the additional carried interest calculated as described above, the maximum aggregate fees payable to the Manager and Affiliates under the NASAA Guidelines as carried interest and promotional interest would equal 11.5% of Distributions of Cash from Operations (6.5% + 5% = 11.5%), and 7.5% of Distributions of Sale or Refinancing Proceeds (6.5% + 1% = 7.5%), before the subordination level was reached, and 21.5% of all Distributions thereafter. The maximum amounts to be paid under the terms of the Operating Agreement are subject to the application of the Asset Management Fee Limit provided in Section 8.3 of the Agreement, which limits the annual amount payable to the Manager and its Affiliates as the Asset Management Fee and the Carried Interest to an aggregate not to exceed the total amount of fees that would be payable to the Manager and its Affiliates under the NASAA Fee Limitation.

Upon completion of the offering of Units, final commitment of offering proceeds to acquisition of equipment and establishment of final levels of permanent portfolio debt, the Manager will calculate the maximum carried interest and promotional interest payable to the Manager and its Affiliates under the NASAA Fee Limitation and compare such total permitted fees to the total of the Asset Management Fee and Manager’s Carried Interest. If and to the extent that the Asset Management Fee and Manager’s Carried Interest would exceed the fees calculated under the NASAA Fee Limitation, the fees payable to the Manager and its Affiliates will be reduced by an amount sufficient to cause the total of such compensation to comply with the NASAA Fee Limitation. The adjusted Asset Management Fee Limit will then be applied to the Asset Management Fee and Carried Interest as described above. A comparison of the Front End Fees actually paid by the Fund and the NASAA Fee Limitation maximums will be repeated, and any required adjustments will be made, at least annually thereafter.

See Note 7 to the financial statements as set forth in Part II, Item 8, Financial Statements and Supplementary Data, for amounts paid.

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Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

Security Ownership of Certain Beneficial Owners

At December 31, 2020, no investor is known to hold beneficially more than 5% of the issued and outstanding Units.

Security Ownership of Management

The parent of ATEL Managing Member, LLC is the beneficial owner of Limited Liability Company Units as follows:

(1)	(2)	(3)	(4)
	Name and Address of	Amount and Nature of	Percent of
Title of Class	Beneficial Owner	Beneficial Ownership	Class
Limited Liability Company Units	ATEL Financial Services, LLC	Initial Limited Liability	0.008	%
	The Transamerica Pyramid	Company Units
	600 Montgomery Street, 9th Floor	50 Units ($500)
	San Francisco, CA 94111

Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

See Item 8 of this report under the caption “Financial Statements and Supplementary Data - Notes to Financial Statements - Related party transactions” at Note 7 thereof.

Item 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

During the years ended December 31, 2020 and 2019, the Company incurred audit fees with its principal auditors totaling $87 thousand and $137 thousand, respectively.

Audit fees consist of the aggregate fees and expenses billed in connection with the audit of the Company’s annual financial statements and the review of the financial statements included in the Company’s quarterly reports on Form 10-Q.

The board of directors of the Managing Member acts as the audit committee of the registrant. Engagements for audit services, audit related services and tax services are approved in advance by the Chief Financial Officer of the Managing Member acting on behalf of the board of directors of the Managing Member in its role as the audit committee of the Company.

40

PART IV

Item 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(a)	Financial Statements and Schedules
1.	Financial Statements
	Included in Part II of this report:
	Report of Independent Registered Public Accounting Firm		15
	Balance Sheets at December 31, 2020 and 2019		16
	Statements of Operations for the years ended December 31, 2020 and 2019		17
	Statements of Changes in Members’ Capital for the years ended December 31, 2020 and 2019		18
	Statements of Cash Flows for the years ended December 31, 2020 and 2019		19
	Notes to Financial Statements		20
2.	Financial Statement Schedules
	All schedules for which provision is made in the applicable accounting regulations of the Securities and Exchange Commission are not required under the related instructions or are inapplicable and, therefore, have been omitted.
(b)	Exhibits
	(3) and (4) Amended and Restated Limited Liability Company Operating Agreement, included as exhibit B to the Prospectus effective October 28, 2011 as filed on November 1, 2011 (File Number 333-174418) is hereby incorporated herein by reference
	(4.1)	Description of the Registrant’s Securities pursuant to Section 12 of the Securities Exchange Act of 1934
	(14.1)	Code of Ethics
	(31.1)	Certification of Dean L. Cash pursuant to Rules 13a-14(a)/15d-14(a)
	(31.2)	Certification of Paritosh K. Choksi pursuant to Rules 13a-14(a)/15d-14(a)
	(32.1)	Certification of Dean L. Cash pursuant to 18 U.S.C. section 1350
	(32.2)	Certification of Paritosh K. Choksi pursuant to 18 U.S.C. section 1350
	(101.INS)	XBRL Instance Document
	(101.SCH)	XBRL Taxonomy Extension Schema Document
	(101.CAL)	XBRL Taxonomy Extension Calculation Linkbase Document
	(101.LAB)	XBRL Taxonomy Extension Label Linkbase Document
	(101.PRE)	XBRL Taxonomy Extension Presentation Linkbase Document
	(101.DEF)	XBRL Taxonomy Extension Definition Linkbase Document

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: March 29, 2021

ATEL 15, LLC

(Registrant)

By:	ATEL Managing Member, LLC Managing Member of Registrant
By:	/s/ Dean L. Cash
	Dean L. Cash
	Chairman of the Board, President and Chief Executive Officer of ATEL Managing Member, LLC (Managing Member)
By:	/s/ Paritosh K. Choksi
	Paritosh K. Choksi
	Director, Executive Vice President and Chief Financial Officer and Chief Operating Officer of ATEL Managing Member, LLC (Managing Member)
By:	/s/ Samuel Schussler
	Samuel Schussler
	Senior Vice President and Chief Accounting Officer of ATEL Managing Member, LLC (Managing Member)

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the persons in the capacities and on the dates indicated.

SIGNATURE	CAPACITIES	DATE
/s/ Dean L. Cash	Chairman of the Board, President and Chief Executive Officer of ATEL Managing Member, LLC (Managing Member)	March 29, 2021
Dean L. Cash
/s/ Paritosh K. Choksi	Director, Executive Vice President and Chief Financial Officer and Chief Operating Officer of ATEL Managing Member, LLC (Managing Member)	March 29, 2021
Paritosh K. Choksi
/s/ Samuel Schussler	Senior Vice President and Chief Accounting Officer of ATEL Managing Member, LLC (Managing Member)	March 29, 2021
Samuel Schussler

No proxy materials have been or will be sent to security holders. An annual report will be furnished to security holders subsequent to the filing of this report on Form 10-K, and copies thereof will be furnished supplementally to the Commission when forwarded to the security holders.

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EX-4.1

Exhibit 4.1

DESCRIPTION OF COMPANY MEMBERSHIP INTEREST (“UNITS”)

Fast Act Exhibit 4(vi) “Description of registrant’s securities”

Summary

The following description summarizes certain important terms of ATEL 15, LLC’s (the “Company”) membership interests (the “Units”). This description summarizes the provisions that are included in the Company’s Amended and Restated Limited Liability Company Operating Agreement (the “Operating Agreement”). This summary will not provide all the information relevant to the Units. For a complete description of the Units, please refer to the applicable provisions of Company’s Operating Agreement and relevant California governing law.

Outstanding Units

6,542,557 Units have been subscribed by the members of the Company as of December 31, 2020.

General

Liquidity. The Units were offered and sold pursuant to registration under the Securities Act of 1933, and subsequently registered under the Securities Exchange Act of 1934.  However, the Units are subject to significant restriction on transferability in order to preserve the tax characterization of the Company and tax consequences for Unit holders.  Accordingly, the Units are not traded on any securities exchange and have limited liquidity.  Please review the rights of Unit holders for transfer of shares under the Operating Agreement.

Voting Rights. The holders of Units are entitled to one vote per share on any matter to be voted upon by holders of Units in the Company’s Operating Agreement. Certain rights may only be exercised upon receiving at least a majority of the votes entitled to be cast by Unit holders

Distributions. The holders of Units are entitled to distributions on a pro rata basis, if, as, and when distributed by the Manager.

Other Rights. No holder of Units has any priority or preemptive right as to the Units.

Dissolution and Winding Up. Upon any voluntary or involuntary liquidation, dissolution, or winding up of the Company, the Unit holders are entitled to share ratably in all assets remaining after payment of creditors.

Transfer Agent and Registrar. The transfer agent and registrar of the Units is Conduent Inc.

EX-14.1

Exhibit 14.1

ATEL 15, LLC

CODE OF ETHICS FOR CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL AND OPERATING OFFICER

A. SCOPE

This Code of Ethics is applicable to ATEL 15, LLC (“Fund 15”), including the Chief Executive Officer and Chief Financial Officer and Chief Operating Officer of its Manager, ATEL Managing Member, LLC (“AMM”), or persons acting in such capacity (collectively the “Covered Officers”) on behalf of Fund 15, referred to herein as the “Company.”

Accordingly, under the Securities and Exchange Commission’s interpretation of its disclosure rules, the Board of Directors of the Manager of AMM, ATEL Financial Services, LLC (“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 AMM 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 AMM to manage the Company’s affairs, including restrictions prohibiting or limiting the terms of any transactions in which conflicts of interest may arise. Furthermore, AMM 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 AMM and its personnel that comply with the provisions of the Company’s Operating Agreement, and which are consistent with AMM’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 15, 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 29, 2021

/s/ Dean L. Cash

Dean L. Cash

Chairman of the Board, President and Chief Executive Officer

of ATEL Managing Member, 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 15, 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 29, 2021

/s/ Paritosh K. Choksi

Paritosh K. Choksi

Director, Executive Vice President and Chief Financial Officer

and Chief Operating Officer of ATEL Managing Member, 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 15, LLC (the “Company”) on Form 10-K for the year ended December 31, 2020 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 Managing Member, 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 29, 2021

/s/ Dean L. Cash

Dean L. Cash

Chairman of the Board, President and

Chief Executive Officer of ATEL Managing Member, 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 15, LLC (the “Company”) on Form 10-K for the year ended December 31, 2020 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 Managing Member, 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 29, 2021

/s/ Paritosh K. Choksi

Paritosh K. Choksi

Director, Executive Vice President and Chief Financial Officer and

Chief Operating Officer of ATEL Managing Member, LLC

(Managing Member)

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

XML

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2020	Feb. 28, 2021	Jun. 30, 2020
Document And Entity Information [Abstract]
Document Type	10-K
Entity Registrant Name	ATEL 15, LLC
Document Period End Date	Dec. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Entity Central Index Key	0001519117
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Smaller Reporting Company	true
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Well-known Seasoned Issuer	No
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 0
Entity Units Outstanding		6,542,557

XML

Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
ASSETS
Cash and cash equivalents	$ 1,297	$ 3,027
Accounts receivable, net	46	73
Due from Managing Member and affiliates	55
Investment in securities	445	316
Warrants, fair value	20	225
Equipment under operating leases, net	14,812	18,314
Prepaid expenses and other assets	15	21
Total assets	16,690	21,976
Accounts payable and accrued liabilities:
Due to Managing Member and affiliates		155
Accrued distributions to Other Members		1,472
Other	228	138
Non-recourse debt	3,108	4,067
Unearned operating lease income	106	69
Total liabilities	3,442	5,901
Commitments and contingencies
Members' capital:
Managing Member
Other Members	13,248	16,075
Total Members' capital	13,248	16,075
Total liabilities and Members' capital	$ 16,690	$ 21,976

XML

Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Leasing and lending activities:
Operating leases revenue, net	$ 3,829	$ 4,535
Interest on notes receivable		56
Gain (loss) on sales of operating lease assets	181	(573)
Other revenue	101	615
Total operating revenues	4,111	4,633
Expenses:
Depreciation of operating lease assets	2,400	3,280
Asset management fees to managing Member	147	185
Cost reimbursements to Managing Member and/or affiliates	537	569
Provision for credit losses	2	13
Impairment losses on equipment	995
Impairment losses on investment in securities	17
Amortization of initial direct costs	2	26
Interest expense	123	140
Professional fees	159	231
Outside services	76	90
Taxes on income and franchise fees	109	162
Storage fees	133	127
Other expense	363	235
Total operating expenses	5,061	5,058
Loss from operations	(950)	(425)
Other income (loss):
Loss on sale of investment in securities	(36)
Unrealized loss on fair value adjustment for securities	(14)	(17)
Unrealized gain on fair value adjustment for warrants	128	17
Total other income	78
Net loss	(872)	(425)
Net loss:
Managing Member	156	359
Other Members	(1,028)	(784)
Net loss	$ (872)	$ (425)
Net loss per Limited Liability Company Unit (Other Members)	$ (0.16)	$ (0.12)
Weighted average number of Units outstanding	6,542,557	6,542,557

XML

Statements of Changes in Members' Capital - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Beginning Balance	$ 16,075	$ 21,289
Distributions to Other Members	(1,799)	(4,430)
Distributions to Managing Member	(156)	(359)
Net loss	(872)	(425)
Ending Balance	$ 13,248	$ 16,075
Other Members [Member]
Beginning Balance (in units)	6,542,557	6,542,557
Beginning Balance	$ 16,075	$ 21,289
Distributions to Other Members	(1,799)	(4,430)
Net loss	$ (1,028)	$ (784)
Ending Balance (in units)	6,542,557	6,542,557
Ending Balance	$ 13,248	$ 16,075
Managing Member [Member]
Distributions to Managing Member	(156)	(359)
Net loss	$ 156	$ 359

XML

Statements of Changes in Members' Capital (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Other Members [Member]
Distributions to Other Members, per unit	$ 0.27	$ 0.68

XML

Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Operating activities:
Net loss	$ (872)	$ (425)
Adjustment to reconcile net loss to cash provided by operating activities:
(Gain) loss on sales of operating lease assets	(181)	573
Loss on sale of investment in securities	(36)
Depreciation of operating lease assets	2,400	3,280
Amortization of initial direct costs	2	26
Provision for credit losses	2	13
Impairment losses on investment in securities	17
Unrealized loss on fair value adjustment for securities	14	17
Unrealized gain on fair value adjustment for warrants	(128)	(17)
Changes in operating assets and liabilities:
Accounts receivable	25	(11)
Due from Managing Member and affiliates	(55)
Prepaid expenses and other assets	6	9
Due to Managing Member and affiliates	104	(5)
Accounts payable, other	90	(326)
Unearned operating lease income	37	8
Net cash provided by operating activities	2,492	3,142
Investing activities:
Purchase of securities	(3)	(20)
Proceeds from sales of operating lease assets	286	579
Net cash provided by investing activities	283	559
Financing activities:
Borrowing under non-recourse debt		4,624
Repayments under non-recourse debt	(959)	(1,748)
Repayments under senior long term debt		(2,068)
Net cash used in financing activities	(4,505)	(2,390)
Net (decrease) increase in cash and cash equivalents	(1,730)	1,311
Cash and cash equivalents at beginning of year	3,027	1,716
Cash and cash equivalents at end of year	1,297	3,027
Supplemental disclosures of cash flow information:
Cash paid during the year for interest	123	106
Cash paid during the year for taxes	103	120
Other Members [Member]
Operating activities:
Net loss	(1,028)	(784)
Financing activities:
Distributions to Members	(3,271)	(2,958)
Schedule of non-cash investing and financing transactions:
Distributions payable to Members at year-end		1,472
Managing Member [Member]
Operating activities:
Net loss	156	359
Financing activities:
Distributions to Members	(275)	(240)
Supplemental disclosures of cash flow information:
Conversion of warrants to equity securities	$ 333	168
Schedule of non-cash investing and financing transactions:
Distributions payable to Members at year-end		$ 119

XML

Organization and Limited Liability Company Matters

12 Months Ended

Dec. 31, 2020

Organization and Limited Liability Company Matters [Abstract]

Organization and Limited Liability Company Matters

1. Organization and Limited Liability Company matters:

ATEL 15, LLC (the “Company” or the “Fund”) was formed under the laws of the state of California on March 4, 2011 for the purpose of raising capital and originating equipment financing transactions and acquiring equipment to engage in equipment leasing and sales activities. The Managing Member of the Company is ATEL Managing Member, LLC (the “Managing Member” or “Manager”), a Nevada limited liability company. The Managing Member is controlled by ATEL Financial Services (“AFS”), a wholly-owned subsidiary of ATEL Capital Group. The Fund may continue until terminated as provided in the ATEL 15, LLC Amended and Restated Limited Liability Company Operating Agreement dated October 28, 2011 (the ”Operating Agreement”). Contributions in the amount of $500 were received as of May 3, 2011, which represented the initial member’s capital investment. As a limited liability company, the liability of any individual member for the obligations of the Fund is limited to the extent of capital contributions to the Fund by the individual member.

The Company conducted a public offering of 15,000,000 Limited Liability Company Units (“Units”), at a price of $10 per Unit. As of December 21, 2011, subscriptions for the minimum number of Units (120,000, representing $1.2 million), excluding subscriptions from Pennsylvania investors, had been received and the Fund requested subscription proceeds to be released from escrow. On that date, the Company commenced initial operations and continued in its development stage activities until transitioning to an operating enterprise during the first quarter of 2012. Pennsylvania subscriptions are subject to a separate escrow and are released to the Fund only when aggregate subscriptions for all investors equal to at least $7.5 million. Total contributions to the Fund exceeded $7.5 million on April 14, 2012, at which time a request was processed to release the Pennsylvania escrowed amounts. The offering was terminated on October 28, 2013.

As of December 31, 2020, cumulative gross contributions, less rescissions and repurchases (net of distributions paid and allocated syndication costs, as applicable), totaling $65.9 million  (inclusive of the $500 initial Member’s capital investment) have been received.  As of the same date, 6,542,557 Units were issued and outstanding.  

The Company’s principal objectives are to invest in a diversified portfolio of investments that will (i) preserve, protect and return the Company’s invested capital; (ii) generate regular cash distributions to unitholders, with any balance remaining after required minimum distributions to be used to purchase additional investments during the Reinvestment Period (ending six calendar years after the completion of the Company’s public offering of Units) and (iii) provide additional cash distributions following the Reinvestment Period and until all investment portfolio assets has been sold or otherwise disposed. The Company is governed by the ATEL 15, LLC amended and restated Limited Liability Company Operating Agreement dated October 28, 2011 (the “Operating Agreement”).

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

XML

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2020

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, 2020 and 2019, and the related statements of operations, changes in members’ capital, and cash flows for the years then ended, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission. Certain prior year amounts may have been reclassified to conform to the current year presentation. These reclassifications had no significant effect on the reported financial position or results from operations.

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

In preparing the accompanying financial statements, the Company has reviewed, as determined necessary by the Managing Member, events that have occurred after December 31, 2020, 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 for determination of the allowance for doubtful accounts and reserve for credit losses on notes receivable.

Accounts receivable:

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

Credit risk:

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

Equipment on operating leases and related revenue recognition:

Equipment subject to operating leases is stated at cost. Depreciation is being recognized on a straight-line method over the terms of the related leases to the equipment’s estimated residual values. Off-lease equipment is generally not subject to depreciation. The Company depreciates all lease assets, in accordance with guidelines consistent with Accounting Standards Codification (ASC) 360-10-35-3, over the periods of the lease terms contained in each asset’s respective lease contract to the estimated residual value at the end of the lease contract. All lease assets are purchased only concurrent with the execution of a lease commitment by the lessee. Thus, the original depreciation period corresponds with the term of the original lease. Once the term of an original lease contract is completed, the subject property is typically sold to the existing user, re-leased to the existing user, or, when off-lease, is held for sale. Assets which are re-leased continue to be depreciated using the terms of the new lease agreements and the estimated residual values at the end of the new lease terms, adjusted downward as necessary. Assets classified as held-for-sale are carried at the lower of carrying amount, or the fair value less cost to sell (ASC 360-10-35-43).

The Company does not use the equipment held in its portfolio, but holds it solely for lease and ultimate sale. In the course of marketing equipment that has come off-lease, management may determine at some point that re-leasing the assets may provide a superior return for investors and would then execute another lease. Upon entering into a new lease contract, management will estimate the residual value once again and resume depreciation. If, and when, the Company, at any time, determines that depreciation in value may have occurred with respect to an asset held-for-sale, the Company would review the value to determine whether a material reduction in value had occurred and recognize any appropriate impairment. All lease assets, including off-lease assets, are subject to the Company’s quarterly impairment analysis, as described below. Maintenance costs associated with the Fund’s portfolio of leased assets are expensed as incurred. Major additions and betterments are capitalized.

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

Operating leases are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management considers the equipment underlying the lease contracts for impairment and periodically reviews the credit worthiness of all operating lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related operating leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, revenues are recognized on a cash basis. Upon adoption of Accounting Standards Update (“ASU”) 2016-02, provisions for credit losses relating to operating leases are  now included in lease income in the Company’s financial statements. Provisions for credit losses prior to January 1, 2019 were previously included in operating expenses in the Company’s financial statements.

Initial direct costs:

Incremental costs of a lease that would not have been incurred if the lease had not been obtained are capitalized and amortized over the lease term. All other costs associated with the execution of the Company’s leases are expensed as incurred.

Asset valuation:

Recorded values of the Company’s leased asset portfolio are reviewed each quarter to confirm the reasonableness of established residual values and to determine whether there is indication that an asset impairment might have taken place. The Company uses a variety of sources and considers many factors in evaluating whether the respective book values of its assets are appropriate. In addition, the Company may direct a residual value review at any time if it becomes aware of issues regarding the ability of a lessee to continue to make payments on its lease contract. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than the net book value. The estimated undiscounted future cash flows are the sum of the residual value of the asset at the end of the asset’s lease contract and undiscounted future rents from the existing lease contract. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date. Upward adjustments for impairments recognized in prior periods are not made in any circumstances.

Segment reporting:

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

The primary geographic region in which the Company seeks leasing opportunities is North America. For the years ended December 31, 2020 and 2019, and as of December 31, 2020 and 2019, all of the Company’s current operating revenues and long-lived assets relate to customers domiciled in the United States.

Investment in securities:

Purchased securities

The Company’s purchased securities registered for public sale with readily determinable fair values are measured at fair value with any changes in fair value recognized in the Company’s results of operations. The Company’s purchased securities that do not have readily determinable fair values are measured at cost minus impairment and adjusted for changes in observable prices. Factors considered by the Managing Member in determining fair value include, but are not limited to, available financial information, the issuer’s ability to meet its current obligations and indications of the issuer’s subsequent ability to raise capital. The Company had $445 thousand and $316 thousand of purchased securities at December 31, 2020 and 2019, respectively. An approximate $249 thousand of the purchased securities balance at December 31, 2020 reflects the fair market value of certain warrants converted to equity securities during the current year. Such conversion related to a borrower’s completion of an initial public offering in June 2020. During the respective years ended December 31, 2020 and 2019, the Company recorded $14 thousand and$17 thousand of unrealized losses on investment securities with readily determinable fair values. In addition, during the year ended December 31, 2020, the Company recorded a $17 thousand adjustment to reduce the value of certain impaired securities to zero as of December 31, 2020. There was no such adjustment during the prior year. Also, during 2020, the Company sold investment securities valued at approximately $176 thousand and realized a $36 thousand loss on the sale. There were no such sales in 2019.

Warrants

Warrants owned by the Company are not registered for public sale, but are considered derivatives and are reflected at an estimated fair value on the balance sheet, as determined by the Managing Member. As of December 31, 2020 and 2019, the estimated fair value of the Company’s portfolio of warrants was $20 thousand and $225 thousand, respectively. During the years ended December 31, 2020 and 2019, the Company recorded unrealized gains of $128 thousand and $17 thousand, respectively, on fair valuation of its warrants. There were net exercises of warrants in exchange for securities totaling$333 thousand during the third quarter of 2020 and $168 thousand during the first quarter of 2019. No other warrant exercises occurred during the years ended December 31, 2020 and 2019.

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, 2020 and 2019, the related provision for state income taxes was approximately $109 thousand and $162 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, 2020 and 2019 as follows (in thousands):

	2020		2019
Financial statement basis of net assets	$	13,248	$	16,075
Tax basis of net assets (unaudited)		18,892		22,174
Difference	$	(5,644)	$	(6,099)

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

The following reconciles the net loss reported in these financial statements to the income reported on the Company’s federal tax return (unaudited) for the years ended December 31, 2020 and 2019 (in thousands):

	2020		2019
Net loss per financial statements	$	(872)	$	(425)
Tax adjustments (unaudited):
Adjustment to depreciation expense		(126)		(525)
Provision for losses and doubtful accounts		2		—
Adjustments to revenues		99		12
Adjustments to gain on sales of assets		106		1,017
Other		1,055		92
Income per federal tax return (unaudited)	$	264	$	171

Per Unit data:

The Company issues only one class of Units, none of which are considered dilutive. Net loss and distributions per Unit is based upon the weighted average number of Other Members Units outstanding during the year.

Recent accounting pronouncements:

In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-03, Codification Improvements to Financial Instruments (“ASU 2020-03”). ASU 2020-03 improves and clarifies various financial instruments topics, including the current expected credit losses (CECL) standard issued in 2016. ASU 2020-03 includes seven different issues that describe the areas of improvement and the related amendments to GAAP that are intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The amendments have different effective dates. Management is currently evaluating the effect of adopting this new accounting guidance but does not expect adoption will have a material impact on the Fund’s financial statements and disclosures.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326) (“ASU 2016-13”). The main objective of this Update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments affect entities holding financial assets and equipment under operating leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, equipment under operating leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. Management is currently evaluating the standard and expects the update may potentially result in the increase in the allowance for credit losses given the change to estimated losses over the contractual life adjusted for expected prepayments.

In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments — Credit Losses (“ASU 2018-19”). The new standard clarifies certain aspects of the new CECL impairment model in ASU 2016-13. The amendment clarifies that receivables arising from operating leases are within the scope of ASC 842, rather than ASC 326. Management is currently evaluating the impact of the standard on the financial statements and related disclosure requirements.

On August 15, 2019, the FASB issued a proposed ASU that would grant certain companies additional time to implement the FASB standards on CECL and hedging. The proposed ASU defers the effective date for CECL to fiscal periods beginning after December 15, 2022, including interim periods within those fiscal years; and defers the effective date for hedging to fiscal periods beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The ASU was approved on October 16, 2019. In February 2020, the FASB issued ASU 2020-02 and delayed the effective date of Topic 326 until the fiscal years beginning after December 15, 2022.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (“ASU 2018-13”), which amends the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. This ASU modifies disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. The amendments in this Update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The Fund adopted ASU 2018-13 on January 1, 2020. Such adoption did not have a significant impact on the Fund’s financial statements and related disclosure requirements.

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Concentration of Credit Risk and Major Customers

12 Months Ended

Dec. 31, 2020

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, 2020 and 2019, 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	2020		2019
Oil/Gas extraction	43	%	43	%
Manufacturing	18	%	13	%
Elec/Gas/Sanitation	11	%	10	%

During 2020 and 2019, 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	2020		2019
Halliburton Overseas Limited	Marine vessel	27	%	27	%
GE Aviation	Manufacturing	22	%	19	%
Cargill, Inc.	Material handling	14	%	15	%
Aep Generating Company	Facility - Other	10	%	12	%

These percentages are not expected to be comparable in future periods due to anticipated changes in the mix of investments and/or lessees as a result of normal business activities.

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Notes Receivable, Net

12 Months Ended

Dec. 31, 2020

Notes Receivable, Net

Notes Receivable, Net

4. Notes receivable, net:

During 2019, the Company had various notes receivable from borrowers who have financed the purchase of equipment through the Company. As of December 31, 2019, all of the notes were paid in full and have been terminated.

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Equipment Under Operating Leases, Net

12 Months Ended

Dec. 31, 2020

Investments In Equipment And Leases Net [Abstract]

Equipment Under Operating Leases, Net

5. Equipment under operating leases, net:

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

				Reclassifications	Depreciation/
			& Additions /		Amortization
	Balance		Dispositions and		Expense or		Balance
	December 31,			Impairment	Amortization		December 31,
	2019			Losses	of Leases		2020
Equipment under operating leases, net	$	15,159	$	(1,610)	$	(2,400)	$	11,149
Assets held for sale or lease, net		3,149		510		—		3,659
Initial direct costs, net		6		—		(2)		4
Total	$	18,314	$	(1,100)	$	(2,402)	$	14,812

During the year ended December 31, 2020, the Company recorded $995 thousand of impairment adjustment to reduce the book value of certain leases deemed impaired. The Company did not record such adjustment during the year ended December 31, 2019.

The Company utilizes a straight line depreciation method over the term of the equipment lease for equipment on operating leases currently in its portfolio. Depreciation expense on the Company’s equipment totaled $2.4 million and $3.3 million for the years ended December 31, 2020 and 2019, respectively. The total for 2020 includes $372 thousand of additional depreciation recorded to reflect year-to-date changes in estimated residual values of certain equipment generating revenue under month-to-month extensions. Such estimated residual values of equipment associated with leases on month-to-month extensions are evaluated at least semi-annually, and depreciation recorded for the change in the estimated reduction in value. There were no such additional adjustments to depreciation recorded as of December 31, 2019. IDC amortization expense related to the Company’s operating leases totaled $2 thousand and $26 thousand for 2020 and 2019, respectively.

All of the Company’s lease asset purchases and capital improvements were made during the years from 2011 through 2015.

Operating leases:

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

	Balance				Reclassifications		Balance
	December 31,				or Dispositions		December 31,
	2019		Additions		Impairment losses		2020
Marine vessel	$	19,410	$	—	$	—	$	19,410
Manufacturing		6,437		—		(2,079)		4,358
Transportation, rail		5,094		—		—		5,094
Facility – other		5,084		—		—		5,084
Agriculture		2,112		—		(2,112)		—
Construction		1,775		—		—		1,775
Other		1,158		—		—		1,158
		41,070		—		(4,191)		36,879
Less accumulated depreciation		(25,911)		(2,400)		2,581		(25,730)
Total	$	15,159	$	(2,400)	$	(1,610)	$	11,149

The average estimated residual value for assets on operating leases was 18% and 23% of the assets’ original cost at December 31, 2020 and 2019, respectively. There were no operating leases on non-accrual status at December 31, 2020 and 2019.

As of December 31, 2020, the aggregate amounts of future minimum lease payments receivable are as follows (in thousands):

	Operating
	Leases
Year ending December 31, 2021	$	2,251
2022		2,063
2023		1,175
2024		254
2025		16
	$	5,759

The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of December 31, 2020 and 2019, the respective useful lives of each category of lease assets in the Company’s portfolio are as follows (in years):

Equipment category	Useful Life
Transportation, rail	35 – 50
Marine vessel	20 – 30
Manufacturing	10 – 15
Agriculture	7 – 10
Construction	7 – 10
Facility - other	7 – 10
Other	7 – 10

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Allowance for Credit Losses

12 Months Ended

Dec. 31, 2020

Allowance for Credit Losses [Abstract]

Allowance for Credit Losses

6. Allowance for credit losses:

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

	Allowance for		Valuation
	Doubtful		Adjustments		Total
	Accounts		on		Allowance for
	Operating Leases		Notes Receivable		Credit Losses
Balance December 31, 2018	$	—	$	67	$	67
Provision for credit losses		—		13		13
Write-off		—		(80)		(80)
Balance December 31, 2019		—		—		—
Provision for credit losses		2		—		2
Balance December 31, 2020	$	2	$	—	$	2

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Related Party Transactions

12 Months Ended

Dec. 31, 2020

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 the Managing Member and/or affiliates for providing administrative services to the Company. Administrative services provided include Company accounting, investor relations, legal counsel and lease and equipment documentation. The Managing Member is not reimbursed for services whereby it is entitled to receive a separate fee as compensation for such services, such as management of investments.

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

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

The Managing Member and/or affiliates earned fees and billed for reimbursements, pursuant to the Operating Agreement, during the years ended December 31, 2020 and 2019 as follows (in thousands):

	2020		2019
Administrative costs reimbursed to Managing Member and/or affiliates	$	537	$	569
Asset management fees to Managing Member		147		185
	$	684	$	754

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Non-Recourse Debt

12 Months Ended

Dec. 31, 2020

Non-Recourse Debt [Abstract]

Non-Recourse Debt

8. Non-recourse debt:

At December 31, 2020, non-recourse debt consists of notes payable to financial institutions. The note payments are due in monthly installments. Interest on the note is 3.40% per annum. The note is secured by assignments of lease payments and pledges of assets. At December 31, 2020, gross operating lease rentals totaled approximately $3.3 million over the remaining lease terms and the carrying value of the pledged assets is $7.4 million. The note matures in 2024.

The non-recourse debt does not contain any material financial covenants. The debt is secured by a specific lien granted by the Company to the non-recourse lender on (and only on) the discounted lease transactions. The lender has recourse only to the following collateral: the leased equipment; the related lease chattel paper; the lease receivables; and proceeds of the foregoing items. The non-recourse obligation is payable solely out of the respective specific security and the Company does not guarantee (nor is the Company otherwise contractually responsible for) the payment of the non-recourse debt as a general obligation or liability of the Company. Although the Company does not have any direct or general liability in connection with the non-recourse debt apart from the security granted, the Company is directly and generally liable and responsible for certain representations, warranties, and covenants made to the lender, such as warranties as to genuineness of the transaction parties’ signatures, as to the genuineness of the respective lease chattel paper or the transaction as a whole, or as to the Company’s good title to or perfected interest in the secured collateral, as well as similar representations, warranties and covenants typically provided by non-recourse borrowers and customary in the equipment finance industry, and are viewed by such industry as being consistent with non-recourse discount financing obligations. Accordingly, as there are no financial covenants or ratios imposed on the Company in connection with the non-recourse debt, the Company has determined that there are no material covenants with respect to the non-recourse debt that warrant footnote disclosure.

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

	Principal		Interest		Total
Year ending December 31, 2021	$	945	$	91	$	1,036
2022		979		58		1,037
2023		1,012		25		1,037
2024		172		1		173
Total	$	3,108	$	175	$	3,283

The non-recourse debt represents half of a $9.2 million non-recourse promissory note executed on May 20, 2019. The non-recourse promissory note was split evenly between the Fund and its affiliate, ATEL 14, LLC, and was used to pay off the senior long-term debt. The non-recourse promissory note is to be serviced by the cash flows generated under a renewed bareboat charter.

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Borrowing Facilities

12 Months Ended

Dec. 31, 2020

Borrowing Facilities [Abstract]

Borrowing Facilities

9.  Borrowing facilities:

The Company was a party with ATEL Capital Group and certain subsidiaries, and affiliated funds in a $75 million revolving credit facility with a syndicate of financial institutions as lenders. The credit facility was renewed during the fourth quarter of 2019, whereupon, the Company ceased to be a participant.

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Commitments

12 Months Ended

Dec. 31, 2020

Commitments [Abstract]

Commitments

10. Commitments:

At December 31, 2020,there were no commitments to purchaselease assets or to fund investmentsin notes receivable.

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Guarantees

12 Months Ended

Dec. 31, 2020

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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Members' Capital

12 Months Ended

Dec. 31, 2020

Members' Capital [Abstract]

Members' Capital

12. Members’ capital:

A total of 6,542,557 Units were issued and outstanding at both December 31, 2020 and 2019, respectively, including the 50 Units issued to the initial Member (Managing Member). The Fund was authorized to issue up to 15,000,000 Units in addition to the Units issued to the initial Member.

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

The Fund’s net income or net losses are to be allocated 100% to the members. From the commencement of the Fund until the initial closing date, net income and net loss were allocated 99% to the Managing Member and 1% to the initial members. Commencing with the initial closing date, net income and net loss are to be allocated 92.5% to the 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 members. The Company commenced periodic distributions during the first quarter of 2012.

Distributions to the Other Members for the years ended December 31, 2020 and 2019 were as follows (in thousands except Units and per Unit data):

	2020		2019
Distributions declared	$	1,799	$	4,430
Weighted average number of Units outstanding		6,542,557		6,542,557
Weighted average distributions per Unit	$	0.27	$	0.68

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Fair Value Measurements

12 Months Ended

Dec. 31, 2020

Fair Value Measurements [Abstract]

Fair Value Measurements

13. Fair value measurements:

Under applicable accounting standards, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

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

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

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

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

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

At December 31, 2020 and 2019, the Company’s warrants and investment in securities were measured on a recurring basis. In addition, certain equipment deemed impaired were measured at fair value on a non-recurring basis as of December 31, 2020. There was no equipment measured at fair value as of December 31, 2019.

The measurement methodology is 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, 2020 and 2019, the calculated fair value of the Fund’s warrant portfolio approximated $20 thousand and $225 thousand, respectively. Such valuations are classified within Level 3 of the valuation hierarchy.

The fair value of warrants that were accounted for on a recurring basis and classified as Level 3 are as follows (in thousands):

	2020		2019
Fair value of warrants at beginning of year	$	225	$	376
Unrealized gain on fair market valuation of warrants		128		17
Warrants converted to securities		(333)		(168)
Fair value of warrants at end of year	$	20	$	225

Investment securities (recurring)

The Company’s investment securities registered for public sale with readily determinable fair values are measured at fair value with any changes in fair value recognized in the Company’s results of operations. As of December 31, 2020 and 2019, the fair value of such investment securities totaled $422 thousand and $70thousand respectively.

The fair value of investment securities that were accounted for on a recurring basis as of the years ended December 31, 2020 and 2019 classified as Level 1 are as follows (in thousands):

		2020		2019
Fair value of securities at the beginning of year	$	70	$	127
Conversion of previously held private securities		53		—
Securities sold		(176)		—
Warrants converted to securities		333		—
Unrealized gain (loss) on fair market valuation of securities		142		(57)
Fair value of investment securities at the end of year	$	422	$	70

Impaired lease and off-lease equipment (non-recurring)

During the year ended December 31, 2020, the Company recorded fair value adjustments totaling $995 thousand to reduce the cost basis of certain manufacturing and agriculture equipment. There were no impaired equipment during 2019.

			Level 1		Level 2		Level 3
	December 31		Estimated		Estimated		Estimated
	2020		Fair Value		Fair Value		Fair Value
Assets measured at fair value on a non-recurring basis (in thousands):
Impaired lease and off-lease equipment	$	960	$	—	$	—	$	960

Under the Fair Value Measurements Topic of the FASB Accounting Standards Codification, the fair value of impaired lease assets were classified within Level 3 of the valuation hierarchy as the data sources utilized for the valuation of such assets reflect significant inputs that are unobservable in the market. Such valuation utilizes a market approach technique and uses inputs that reflect the sales price of similar assets sold by affiliates and/or information from third party remarketing agents not readily available in the market.

The following tables summarize the valuation techniques and significant unobservable inputs used for the Company’s recurring and non-recurring fair value calculation/adjustments categorized as Level 3 in the fair value hierarchy at December 31, 2020 and 2019:

December 31, 2020
	Valuation	Valuation	Unobservable	Range of Input Values
Name	Frequency	Technique	Inputs	(Weighted Average)
Warrants	Recurring	Black-Scholes formulation	Stock price	$0.05 - $28.66($.24)
			Exercise price	$0.10 - $160.05($.32)
			Time to maturity (in years)	0.98 - 3.35(1.18)
			Risk-free interest rate	0.10% - 0.22%(0.11%)
			Annualized volatility	33.86% - 158.37%(35.28%)
Lease and Off-lease equipment	Non-recurring	Market Approach	Third Party Agents' Pricing	$0 - $150,000
			Quotes - per equipment	(total of $960,000)
			Equipment Condition	Poor to Average

December 31, 2019
	Valuation	Valuation	Unobservable	Range of Input Values
Name	Frequency	Technique	Inputs	(Weighted Average)
Warrants	Recurring	Black-Scholes formulation	Stock price	$0.12-  $12.92  ($0.38)
			Exercise price	$0.10 - $160.05  ($0.41)
			Time to maturity (in years)	1.98  - 6.08 (2.20)
			Risk-free interest rate	1.58% - 1.73%  (1.59%)
			Annualized volatility	37.97% - 109.07%  (48.35%)

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

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

Cash and cash equivalents

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

Investment in securities

The Company's purchased securities registered for public sale with readily determinable fair value are carried at fair value. These investment securities are valued based on their quoted market price.

Non-recourse 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, 2020 and 2019 (in thousands):

	Fair Value Measurements at December 31, 2020
	Carrying
	Amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	1,297	$	1,297	$	—	$	—	$	1,297
Investment in securities		422		422		—		—		422
Warrants, fair value		20		—		—		20		20
Financial liabilities:
Non-recourse debt		3,108		—		—		3,212		3,212

	Fair Value Measurements at December 31, 2019
	Carrying
	Amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	3,027	$	3,027	$	—	$	—	$	3,027
Investment in securities		70		70		—		—		70
Warrants, fair value		225		—		—		225		225
Financial liabilities:
Non-recourse debt		4,067		—		—		4,115		4,115

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Global Health Emergency

12 Months Ended

Dec. 31, 2020

Global Health Emergency [Abstract]

Global Health Emergency

14. Global health emergency:

On January 30, 2020, the World Health Organization declared a global health emergency. The Fund’s operations are located in California, which has restricted gatherings of people due to the coronavirus outbreak. At present, the Fund’s operations have not been adversely affected and continue to function effectively. Due to the dynamic nature of these unprecedented circumstances and possible business disruption, the Fund will continue to monitor the situation closely, but given the uncertainty about the situation, an estimate of the future impact, if any, cannot be made at this time.

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Summary of Significant Accounting Policies (Policy)

12 Months Ended

Dec. 31, 2020

Summary of Significant Accounting Policies [Abstract]

Basis of Presentation

Basis of presentation:

The accompanying balance sheets as of December 31, 2020 and 2019, and the related statements of operations, changes in members’ capital, and cash flows for the years then ended, have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission. Certain prior year amounts may have been reclassified to conform to the current year presentation. These reclassifications had no significant effect on the reported financial position or results from operations.

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

In preparing the accompanying financial statements, the Company has reviewed, as determined necessary by the Managing Member, events that have occurred after December 31, 2020, 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 for determination of the allowance for doubtful accounts and reserve for credit losses on notes receivable.

Accounts Receivable

Accounts receivable:

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

Credit Risk

Credit risk:

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

Equipment on Operating Leases and Related Revenue Recognition

Equipment on operating leases and related revenue recognition:

Equipment subject to operating leases is stated at cost. Depreciation is being recognized on a straight-line method over the terms of the related leases to the equipment’s estimated residual values. Off-lease equipment is generally not subject to depreciation. The Company depreciates all lease assets, in accordance with guidelines consistent with Accounting Standards Codification (ASC) 360-10-35-3, over the periods of the lease terms contained in each asset’s respective lease contract to the estimated residual value at the end of the lease contract. All lease assets are purchased only concurrent with the execution of a lease commitment by the lessee. Thus, the original depreciation period corresponds with the term of the original lease. Once the term of an original lease contract is completed, the subject property is typically sold to the existing user, re-leased to the existing user, or, when off-lease, is held for sale. Assets which are re-leased continue to be depreciated using the terms of the new lease agreements and the estimated residual values at the end of the new lease terms, adjusted downward as necessary. Assets classified as held-for-sale are carried at the lower of carrying amount, or the fair value less cost to sell (ASC 360-10-35-43).

The Company does not use the equipment held in its portfolio, but holds it solely for lease and ultimate sale. In the course of marketing equipment that has come off-lease, management may determine at some point that re-leasing the assets may provide a superior return for investors and would then execute another lease. Upon entering into a new lease contract, management will estimate the residual value once again and resume depreciation. If, and when, the Company, at any time, determines that depreciation in value may have occurred with respect to an asset held-for-sale, the Company would review the value to determine whether a material reduction in value had occurred and recognize any appropriate impairment. All lease assets, including off-lease assets, are subject to the Company’s quarterly impairment analysis, as described below. Maintenance costs associated with the Fund’s portfolio of leased assets are expensed as incurred. Major additions and betterments are capitalized.

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

Operating leases are generally placed in a non-accrual status (i.e., no revenue is recognized) when payments are more than 90 days past due. Additionally, management considers the equipment underlying the lease contracts for impairment and periodically reviews the credit worthiness of all operating lessees with payments outstanding less than 90 days. Based upon management’s judgment, the related operating leases may be placed on non-accrual status. Leases placed on non-accrual status are only returned to an accrual status when the account has been brought current and management believes recovery of the remaining unpaid lease payments is probable. Until such time, revenues are recognized on a cash basis. Upon adoption of Accounting Standards Update (“ASU”) 2016-02, provisions for credit losses relating to operating leases are  now included in lease income in the Company’s financial statements. Provisions for credit losses prior to January 1, 2019 were previously included in operating expenses in the Company’s financial statements.

Initial Direct Costs

Initial direct costs:

Incremental costs of a lease that would not have been incurred if the lease had not been obtained are capitalized and amortized over the lease term. All other costs associated with the execution of the Company’s leases are expensed as incurred.

Asset Valuation

Asset valuation:

Recorded values of the Company’s leased asset portfolio are reviewed each quarter to confirm the reasonableness of established residual values and to determine whether there is indication that an asset impairment might have taken place. The Company uses a variety of sources and considers many factors in evaluating whether the respective book values of its assets are appropriate. In addition, the Company may direct a residual value review at any time if it becomes aware of issues regarding the ability of a lessee to continue to make payments on its lease contract. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than the net book value. The estimated undiscounted future cash flows are the sum of the residual value of the asset at the end of the asset’s lease contract and undiscounted future rents from the existing lease contract. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the marketplace are disregarded and it is assumed that there is no necessity either to dispose of a significant number of the assets, if held in quantity, simultaneously or to dispose of the asset quickly. Impairment is measured as the difference between the fair value (as determined by a valuation method using discounted estimated future cash flows, third party appraisals or comparable sales of similar assets as applicable based on asset type) of the asset and its carrying value on the measurement date. Upward adjustments for impairments recognized in prior periods are not made in any circumstances.

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 primary geographic region in which the Company seeks leasing opportunities is North America. For the years ended December 31, 2020 and 2019, and as of December 31, 2020 and 2019, all of the Company’s current operating revenues and long-lived assets relate to customers domiciled in the United States.

Investment in Securities

Investment in securities:

Purchased securities

The Company’s purchased securities registered for public sale with readily determinable fair values are measured at fair value with any changes in fair value recognized in the Company’s results of operations. The Company’s purchased securities that do not have readily determinable fair values are measured at cost minus impairment and adjusted for changes in observable prices. Factors considered by the Managing Member in determining fair value include, but are not limited to, available financial information, the issuer’s ability to meet its current obligations and indications of the issuer’s subsequent ability to raise capital. The Company had $445 thousand and $316 thousand of purchased securities at December 31, 2020 and 2019, respectively. An approximate $249 thousand of the purchased securities balance at December 31, 2020 reflects the fair market value of certain warrants converted to equity securities during the current year. Such conversion related to a borrower’s completion of an initial public offering in June 2020. During the respective years ended December 31, 2020 and 2019, the Company recorded $14 thousand and$17 thousand of unrealized losses on investment securities with readily determinable fair values. In addition, during the year ended December 31, 2020, the Company recorded a $17 thousand adjustment to reduce the value of certain impaired securities to zero as of December 31, 2020. There was no such adjustment during the prior year. Also, during 2020, the Company sold investment securities valued at approximately $176 thousand and realized a $36 thousand loss on the sale. There were no such sales in 2019.

Warrants

Warrants owned by the Company are not registered for public sale, but are considered derivatives and are reflected at an estimated fair value on the balance sheet, as determined by the Managing Member. As of December 31, 2020 and 2019, the estimated fair value of the Company’s portfolio of warrants was $20 thousand and $225 thousand, respectively. During the years ended December 31, 2020 and 2019, the Company recorded unrealized gains of $128 thousand and $17 thousand, respectively, on fair valuation of its warrants. There were net exercises of warrants in exchange for securities totaling$333 thousand during the third quarter of 2020 and $168 thousand during the first quarter of 2019. No other warrant exercises occurred during the years ended December 31, 2020 and 2019.

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, 2020 and 2019, the related provision for state income taxes was approximately $109 thousand and $162 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, 2020 and 2019 as follows (in thousands):

	2020		2019
Financial statement basis of net assets	$	13,248	$	16,075
Tax basis of net assets (unaudited)		18,892		22,174
Difference	$	(5,644)	$	(6,099)

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

The following reconciles the net loss reported in these financial statements to the income reported on the Company’s federal tax return (unaudited) for the years ended December 31, 2020 and 2019 (in thousands):

	2020		2019
Net loss per financial statements	$	(872)	$	(425)
Tax adjustments (unaudited):
Adjustment to depreciation expense		(126)		(525)
Provision for losses and doubtful accounts		2		—
Adjustments to revenues		99		12
Adjustments to gain on sales of assets		106		1,017
Other		1,055		92
Income per federal tax return (unaudited)	$	264	$	171

Per Unit Data

Per Unit data:

The Company issues only one class of Units, none of which are considered dilutive. Net loss and distributions per Unit is based upon the weighted average number of Other Members Units outstanding during the year.

Recent Accounting Pronouncements

Recent accounting pronouncements:

In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-03, Codification Improvements to Financial Instruments (“ASU 2020-03”). ASU 2020-03 improves and clarifies various financial instruments topics, including the current expected credit losses (CECL) standard issued in 2016. ASU 2020-03 includes seven different issues that describe the areas of improvement and the related amendments to GAAP that are intended to make the standards easier to understand and apply by eliminating inconsistencies and providing clarifications. The amendments have different effective dates. Management is currently evaluating the effect of adopting this new accounting guidance but does not expect adoption will have a material impact on the Fund’s financial statements and disclosures.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326) (“ASU 2016-13”). The main objective of this Update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments affect entities holding financial assets and equipment under operating leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, equipment under operating leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. Management is currently evaluating the standard and expects the update may potentially result in the increase in the allowance for credit losses given the change to estimated losses over the contractual life adjusted for expected prepayments.

In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments — Credit Losses (“ASU 2018-19”). The new standard clarifies certain aspects of the new CECL impairment model in ASU 2016-13. The amendment clarifies that receivables arising from operating leases are within the scope of ASC 842, rather than ASC 326. Management is currently evaluating the impact of the standard on the financial statements and related disclosure requirements.

On August 15, 2019, the FASB issued a proposed ASU that would grant certain companies additional time to implement the FASB standards on CECL and hedging. The proposed ASU defers the effective date for CECL to fiscal periods beginning after December 15, 2022, including interim periods within those fiscal years; and defers the effective date for hedging to fiscal periods beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The ASU was approved on October 16, 2019. In February 2020, the FASB issued ASU 2020-02 and delayed the effective date of Topic 326 until the fiscal years beginning after December 15, 2022.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (“ASU 2018-13”), which amends the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. This ASU modifies disclosure requirements for fair value measurements by removing, modifying or adding certain disclosures. The amendments in this Update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. The Fund adopted ASU 2018-13 on January 1, 2020. Such adoption did not have a significant impact on the Fund’s financial statements and related disclosure requirements.

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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2020

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, 2020 and 2019 as follows (in thousands):

	2020		2019
Financial statement basis of net assets	$	13,248	$	16,075
Tax basis of net assets (unaudited)		18,892		22,174
Difference	$	(5,644)	$	(6,099)

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

The following reconciles the net loss reported in these financial statements to the income reported on the Company’s federal tax return (unaudited) for the years ended December 31, 2020 and 2019 (in thousands):

	2020		2019
Net loss per financial statements	$	(872)	$	(425)
Tax adjustments (unaudited):
Adjustment to depreciation expense		(126)		(525)
Provision for losses and doubtful accounts		2		—
Adjustments to revenues		99		12
Adjustments to gain on sales of assets		106		1,017
Other		1,055		92
Income per federal tax return (unaudited)	$	264	$	171

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Concentration of Credit Risk and Major Customers (Tables)

12 Months Ended

Dec. 31, 2020

Concentration of Credit Risk and Major Customers [Abstract]

Schedule of Equipment Lease Credit Risk Concentration

As of December 31, 2020 and 2019, 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	2020		2019
Oil/Gas extraction	43	%	43	%
Manufacturing	18	%	13	%
Elec/Gas/Sanitation	11	%	10	%

Schedule of Leasing and Lending Revenues

During 2020 and 2019, 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	2020		2019
Halliburton Overseas Limited	Marine vessel	27	%	27	%
GE Aviation	Manufacturing	22	%	19	%
Cargill, Inc.	Material handling	14	%	15	%
Aep Generating Company	Facility - Other	10	%	12	%

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Equipment Under Operating Leases, Net (Tables)

12 Months Ended

Dec. 31, 2020

Investments In Equipment And Leases Net [Abstract]

Investment in Leases

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

				Reclassifications	Depreciation/
			& Additions /		Amortization
	Balance		Dispositions and		Expense or		Balance
	December 31,			Impairment	Amortization		December 31,
	2019			Losses	of Leases		2020
Equipment under operating leases, net	$	15,159	$	(1,610)	$	(2,400)	$	11,149
Assets held for sale or lease, net		3,149		510		—		3,659
Initial direct costs, net		6		—		(2)		4
Total	$	18,314	$	(1,100)	$	(2,402)	$	14,812

Property on Operating Leases

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

	Balance				Reclassifications		Balance
	December 31,				or Dispositions		December 31,
	2019		Additions		Impairment losses		2020
Marine vessel	$	19,410	$	—	$	—	$	19,410
Manufacturing		6,437		—		(2,079)		4,358
Transportation, rail		5,094		—		—		5,094
Facility – other		5,084		—		—		5,084
Agriculture		2,112		—		(2,112)		—
Construction		1,775		—		—		1,775
Other		1,158		—		—		1,158
		41,070		—		(4,191)		36,879
Less accumulated depreciation		(25,911)		(2,400)		2,581		(25,730)
Total	$	15,159	$	(2,400)	$	(1,610)	$	11,149

Future Minimum Lease Payments Receivable

As of December 31, 2020, the aggregate amounts of future minimum lease payments receivable are as follows (in thousands):

	Operating
	Leases
Year ending December 31, 2021	$	2,251
2022		2,063
2023		1,175
2024		254
2025		16
	$	5,759

Schedule of Useful Lives of Assets

The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of December 31, 2020 and 2019, the respective useful lives of each category of lease assets in the Company’s portfolio are as follows (in years):

Equipment category	Useful Life
Transportation, rail	35 – 50
Marine vessel	20 – 30
Manufacturing	10 – 15
Agriculture	7 – 10
Construction	7 – 10
Facility - other	7 – 10
Other	7 – 10

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Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2020

Allowance for Credit Losses [Abstract]

Activity in Allowance for Doubtful Accounts and Credit Losses

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

	Allowance for		Valuation
	Doubtful		Adjustments		Total
	Accounts		on		Allowance for
	Operating Leases		Notes Receivable		Credit Losses
Balance December 31, 2018	$	—	$	67	$	67
Provision for credit losses		—		13		13
Write-off		—		(80)		(80)
Balance December 31, 2019		—		—		—
Provision for credit losses		2		—		2
Balance December 31, 2020	$	2	$	—	$	2

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Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2020

Related Party Transactions [Abstract]

Managing Member and/or Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement

The Managing Member and/or affiliates earned fees and billed for reimbursements, pursuant to the Operating Agreement, during the years ended December 31, 2020 and 2019 as follows (in thousands):

	2020		2019
Administrative costs reimbursed to Managing Member and/or affiliates	$	537	$	569
Asset management fees to Managing Member		147		185
	$	684	$	754

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Non-Recourse Debt (Tables)

12 Months Ended

Dec. 31, 2020

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, 2021	$	945	$	91	$	1,036
2022		979		58		1,037
2023		1,012		25		1,037
2024		172		1		173
Total	$	3,108	$	175	$	3,283

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Members' Capital (Tables)

12 Months Ended

Dec. 31, 2020

Members' Capital [Abstract]

Distributions to Other Members

Distributions to the Other Members for the years ended December 31, 2020 and 2019 were as follows (in thousands except Units and per Unit data):

	2020		2019
Distributions declared	$	1,799	$	4,430
Weighted average number of Units outstanding		6,542,557		6,542,557
Weighted average distributions per Unit	$	0.27	$	0.68

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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2020

Fair Value Measurements [Abstract]

Fair Value, Warrants Measured on Recurring Basis

The fair value of warrants that were accounted for on a recurring basis and classified as Level 3 are as follows (in thousands):

	2020		2019
Fair value of warrants at beginning of year	$	225	$	376
Unrealized gain on fair market valuation of warrants		128		17
Warrants converted to securities		(333)		(168)
Fair value of warrants at end of year	$	20	$	225

Fair Value, Investment Securities Measured on Recurring Basis

The fair value of investment securities that were accounted for on a recurring basis as of the years ended December 31, 2020 and 2019 classified as Level 1 are as follows (in thousands):

		2020		2019
Fair value of securities at the beginning of year	$	70	$	127
Conversion of previously held private securities		53		—
Securities sold		(176)		—
Warrants converted to securities		333		—
Unrealized gain (loss) on fair market valuation of securities		142		(57)
Fair value of investment securities at the end of year	$	422	$	70

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

During the year ended December 31, 2020, the Company recorded fair value adjustments totaling $995 thousand to reduce the cost basis of certain manufacturing and agriculture equipment. There were no impaired equipment during 2019.

			Level 1		Level 2		Level 3
	December 31		Estimated		Estimated		Estimated
	2020		Fair Value		Fair Value		Fair Value
Assets measured at fair value on a non-recurring basis (in thousands):
Impaired lease and off-lease equipment	$	960	$	—	$	—	$	960

Summary of Valuation Techniques and Significant Unobservable Inputs Used

The following tables summarize the valuation techniques and significant unobservable inputs used for the Company’s recurring and non-recurring fair value calculation/adjustments categorized as Level 3 in the fair value hierarchy at December 31, 2020 and 2019:

December 31, 2020
	Valuation	Valuation	Unobservable	Range of Input Values
Name	Frequency	Technique	Inputs	(Weighted Average)
Warrants	Recurring	Black-Scholes formulation	Stock price	$0.05 - $28.66($.24)
			Exercise price	$0.10 - $160.05($.32)
			Time to maturity (in years)	0.98 - 3.35(1.18)
			Risk-free interest rate	0.10% - 0.22%(0.11%)
			Annualized volatility	33.86% - 158.37%(35.28%)
Lease and Off-lease equipment	Non-recurring	Market Approach	Third Party Agents' Pricing	$0 - $150,000
			Quotes - per equipment	(total of $960,000)
			Equipment Condition	Poor to Average

December 31, 2019
	Valuation	Valuation	Unobservable	Range of Input Values
Name	Frequency	Technique	Inputs	(Weighted Average)
Warrants	Recurring	Black-Scholes formulation	Stock price	$0.12-  $12.92  ($0.38)
			Exercise price	$0.10 - $160.05  ($0.41)
			Time to maturity (in years)	1.98  - 6.08 (2.20)
			Risk-free interest rate	1.58% - 1.73%  (1.59%)
			Annualized volatility	37.97% - 109.07%  (48.35%)

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, 2020 and 2019 (in thousands):

	Fair Value Measurements at December 31, 2020
	Carrying
	Amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	1,297	$	1,297	$	—	$	—	$	1,297
Investment in securities		422		422		—		—		422
Warrants, fair value		20		—		—		20		20
Financial liabilities:
Non-recourse debt		3,108		—		—		3,212		3,212

	Fair Value Measurements at December 31, 2019
	Carrying
	Amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	3,027	$	3,027	$	—	$	—	$	3,027
Investment in securities		70		70		—		—		70
Warrants, fair value		225		—		—		225		225
Financial liabilities:
Non-recourse debt		4,067		—		—		4,115		4,115

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Organization and Limited Liability Company Matters (Narrative) (Details) - USD ($)			12 Months Ended	72 Months Ended	86 Months Ended
	Dec. 21, 2011	Oct. 28, 2011	Dec. 31, 2020	Oct. 28, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Apr. 14, 2012	May 03, 2011
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Business formation date			Mar. 04, 2011
Business formation State			California
Business activities, description			equipment financing transactions and acquiring equipment to engage in equipment leasing and sales activities
Contributions of capital								$ 7,500,000
Public offering of Limited Liability Company Units		15,000,000
Public offering of Limited Liability Company Units, price per unit		$ 10
Sale of Limited Liability Company Units, number of Units	120,000
Proceeds from sale of Limited Liability Company Units	$ 1,200,000				$ 65,900,000
Amount of aggregate subscriptions for Pennsylvania subscriptions to be released to the Fund								$ 7,500,000
Reinvestment period				6 years
Other Members [Member]
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Members capital account, Units issued			6,542,557		6,542,557	6,542,557
Members capital account, Units outstanding			6,542,557		6,542,557	6,542,557	6,542,557
Initial Member [Member]
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
Contributions of capital									$ 500
Members capital account, Units issued			6,542,557		6,542,557
Members capital account, Units outstanding			6,542,557		6,542,557

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Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Sep. 30, 2020 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2020 USD ($) segment	Dec. 31, 2019 USD ($)
Equipment on operating leases, depreciation method			straight-line method
Warrants converted to equity securities, fair value			$ 249
Investment in securities			445	$ 316
Proceeds from sale of securities			176	0
Warrants, fair value			20	225
Net exercises of warrants in exchange for securities	$ 333	$ 168
Additional depreciation recorded			$ 372	0
Number of operating segments | segment			1
Number of reportable segments | segment			1
Unrealized loss on fair value adjustment for securities			$ (14)	(17)
Impairment losses on investment in securities			17
Gain on sales or dispositions of investment in securities			(36)
Unrealized gain on fair value adjustment for warrants			128	17
Taxes on income and franchise fees			$ 109	162
Income tax examination description			generally subject to examination by U.S. federal (or state and local) income tax authorities for three years from the filing of a tax return
Securities With Readily Determinable Fair Values [Member]
Unrealized loss on fair value adjustment for securities			$ (14)	$ (17)
Minimum [Member]
Required assets value of financial institutions for cash deposits			$ 10,000,000
Operating leases, period for non accrual status			90 days
Operating leases, initial terms			36 months
Maximum [Member]
U.S. Treasury instruments maturity period			90 days
Cash deposits, insured amount			$ 250
Operating leases, period of review for impairment			90 days
Operating leases, initial terms			120 months

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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	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Summary of Significant Accounting Policies [Abstract]
Financial statement basis of net assets	$ 13,248	$ 16,075	$ 21,289
Tax basis of net assets (unaudited)	18,892	22,174
Difference	$ (5,644)	$ (6,099)

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Summary of Significant Accounting Policies (Reconciliation of Net Income (Loss) Reported in Financial Statements and Federal Tax Return) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Summary of Significant Accounting Policies [Abstract]
Net loss per financial statements	$ (872)	$ (425)
Adjustment to depreciation expense	(126)	(525)
Provision for losses and doubtful accounts	2
Adjustments to revenues	99	12
Adjustments to gain on sales of assets	106	1,017
Other	1,055	92
Income per federal tax return (unaudited)	$ 264	$ 171

XML

Concentration of Credit Risk and Major Customers (Schedule of Leasing and Lending Revenues) (Details)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Oil/Gas Extraction [Member] | Equipment Cost [Member]
Concentration Risk [Line Items]
Percentage of concentration risk	43.00%	43.00%
Manufacturing [Member] | Equipment Cost [Member]
Concentration Risk [Line Items]
Percentage of concentration risk	18.00%	13.00%
Manufacturing [Member] | GE Aviation [Member] | Operating Revenue [Member]
Concentration Risk [Line Items]
Percentage of concentration risk	22.00%	19.00%
Electric/Gas/Sanitation [Member] | Equipment Cost [Member]
Concentration Risk [Line Items]
Percentage of concentration risk	11.00%	10.00%
Marine Vessel [Member] | Halliburton Overseas Limited [Member] | Operating Revenue [Member]
Concentration Risk [Line Items]
Percentage of concentration risk	27.00%	27.00%
Facility, Other [Member] | Aep Generating Company [Member] | Operating Revenue [Member]
Concentration Risk [Line Items]
Percentage of concentration risk	10.00%	12.00%
Material Handling [Member] | Cargill, Inc. [Member] | Operating Revenue [Member]
Concentration Risk [Line Items]
Percentage of concentration risk	14.00%	15.00%

XML

Equipment Under Operating Leases, Net (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Investments In Equipment And Leases Net [Abstract]
Amortization of initial direct costs	$ 2	$ 26
Depreciation of operating lease assets	2,400	3,280
Additional depreciation recorded	$ 372	$ 0
Average estimated residual value of assets on operating leases	18.00%	23.00%
Impairment losses on equipment	$ 995
Equipment on operating leases, depreciation method	straight-line method
Operating leases in non-accrual status	$ 0	$ 0

XML

Equipment Under Operating Leases, Net (Investment in Leases) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($)
Lessor, Lease, Description [Line Items]
Balance December 31, 2019	$ 18,314
Reclassifications & Additions/ Dispositions	(1,100)
Depreciation/ Amortization Expense or Amortization of Leases	(2,402)
Balance December 31, 2020	14,812
Operating Leases [Member]
Lessor, Lease, Description [Line Items]
Balance December 31, 2019	15,159
Reclassifications & Additions/ Dispositions	(1,610)
Depreciation/ Amortization Expense or Amortization of Leases	(2,400)
Balance December 31, 2020	11,149
Assets Held for Sale [Member]
Lessor, Lease, Description [Line Items]
Balance December 31, 2019	3,149
Reclassifications & Additions/ Dispositions	510
Balance December 31, 2020	3,659
Initial Direct Cost [Member]
Lessor, Lease, Description [Line Items]
Balance December 31, 2019	6
Depreciation/ Amortization Expense or Amortization of Leases	(2)
Balance December 31, 2020	$ 4

XML

Equipment Under Operating Leases, Net (Property on Operating Leases) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Lessor, Lease, Description [Line Items]
Property on operating leases, gross	$ 36,879	$ 41,070
Less accumulated depreciation	(25,730)	(25,911)
Property on operating leases, net	11,149	15,159
Additions, less accumulated depreciation	(2,400)
Additions, net	(2,400)
Reclassifications or dispositions, gross	(4,191)
Reclassifications or dispositions, less accumulated depreciation	2,581
Reclassifications or dispositions, net	(1,610)
Marine Vessel [Member]
Lessor, Lease, Description [Line Items]
Property on operating leases, gross	19,410	19,410
Manufacturing [Member]
Lessor, Lease, Description [Line Items]
Property on operating leases, gross	4,358	6,437
Reclassifications or dispositions, gross	(2,079)
Transportation, Rail [Member]
Lessor, Lease, Description [Line Items]
Property on operating leases, gross	5,094	5,094
Facility, Other [Member]
Lessor, Lease, Description [Line Items]
Property on operating leases, gross	5,084	5,084
Agriculture [Member]
Lessor, Lease, Description [Line Items]
Property on operating leases, gross		2,112
Reclassifications or dispositions, gross	(2,112)
Construction [Member]
Lessor, Lease, Description [Line Items]
Property on operating leases, gross	1,775	1,775
Other [Member]
Lessor, Lease, Description [Line Items]
Property on operating leases, gross	$ 1,158	$ 1,158

XML

Equipment Under Operating Leases, Net (Future Minimum Lease Payments Receivable) (Details) $ in Thousands	Dec. 31, 2020 USD ($)
Operating Leases
Year ending December 31, 2021	$ 2,251
2022	2,063
2023	1,175
2024	254
2025	16
Operating leases, total	$ 5,759

XML

Equipment Under Operating Leases, Net (Schedule of Useful Lives of Lease Assets) (Details)	12 Months Ended
	Dec. 31, 2020
Transportation, Rail [Member] | Minimum [Member]
Lessor, Lease, Description [Line Items]
Useful lives of lease assets	35 years
Transportation, Rail [Member] | Maximum [Member]
Lessor, Lease, Description [Line Items]
Useful lives of lease assets	50 years
Marine Vessel [Member] | Minimum [Member]
Lessor, Lease, Description [Line Items]
Useful lives of lease assets	20 years
Marine Vessel [Member] | Maximum [Member]
Lessor, Lease, Description [Line Items]
Useful lives of lease assets	30 years
Manufacturing [Member] | Minimum [Member]
Lessor, Lease, Description [Line Items]
Useful lives of lease assets	10 years
Manufacturing [Member] | Maximum [Member]
Lessor, Lease, Description [Line Items]
Useful lives of lease assets	15 years
Agriculture [Member] | Minimum [Member]
Lessor, Lease, Description [Line Items]
Useful lives of lease assets	7 years
Agriculture [Member] | Maximum [Member]
Lessor, Lease, Description [Line Items]
Useful lives of lease assets	10 years
Construction [Member] | Minimum [Member]
Lessor, Lease, Description [Line Items]
Useful lives of lease assets	7 years
Construction [Member] | Maximum [Member]
Lessor, Lease, Description [Line Items]
Useful lives of lease assets	10 years
Facility, Other [Member] | Minimum [Member]
Lessor, Lease, Description [Line Items]
Useful lives of lease assets	7 years
Facility, Other [Member] | Maximum [Member]
Lessor, Lease, Description [Line Items]
Useful lives of lease assets	10 years
Other [Member] | Minimum [Member]
Lessor, Lease, Description [Line Items]
Useful lives of lease assets	7 years
Other [Member] | Maximum [Member]
Lessor, Lease, Description [Line Items]
Useful lives of lease assets	10 years

XML

Allowance for Credit Losses (Activity in Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance		$ 67
Provision for credit losses	2	13
Write-off		(80)
Ending Balance	2
Allowance For Doubtful Accounts [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance
Provision for credit losses	2
Ending Balance	2
Valuation Adjustments on Financing Receivables [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance		67
Provision for credit losses		13
Write-off		(80)
Ending Balance

XML

Related Party Transactions (Managing Member and/or Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Related Party Transactions [Abstract]
Cost reimbursements to Managing Member and/or affiliates	$ 537	$ 569
Asset management fees to managing Member	147	185
Related party transaction, total	$ 684	$ 754

XML

Non-Recourse Debt (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	May 20, 2019
ATEL 14, LLC [Member]
Debt Instrument [Line Items]
Non-recourse promissory note		$ 9.2
Non-Recourse Debt [Member]
Debt Instrument [Line Items]
Gross operating lease rentals and future payments on direct financing leases	$ 3.3
Carrying value of pledged assets	$ 7.4
Note maturity date, description	The note matures in 2024.
Minimum [Member] | Non-Recourse Debt [Member]
Debt Instrument [Line Items]
Fixed Interest rate on note	3.40%

XML

Non-Recourse Debt (Future Minimum Payments of Non-Recourse Debt) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Principal
Year ending December 31, 2021	$ 945
2022	979
2023	1,012
2024	172
Long-term debt, total	3,108	$ 4,067
Interest
Year ending December 31, 2021	91
2022	58
2023	25
2024	1
Long-term debt interest, total	175
Total
Year ending December 31, 2021	1,036
2022	1,037
2023	1,037
2024	173
Long-term debt principal and interest, total	$ 3,283

XML

Borrowing Facilities (Narrative) (Details) $ in Millions	Dec. 31, 2020 USD ($)
Borrowing Facilities [Abstract]
Maximum amount of Credit Facility	$ 75

XML

Commitments (Narrative) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($)
Commitments [Abstract]
Commitments to fund investments in notes receivable and purchase lease assets	$ 0

XML

Members' Capital (Narrative) (Details) - shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Other Members Capital Account [Line Items]
Potential repurchase price of Units as percentage of holder's capital account	100.00%
Allocation of net income and net loss	100.00%
Other Members [Member]
Other Members Capital Account [Line Items]
Members capital account, Units issued	6,542,557	6,542,557
Members capital account, Units outstanding	6,542,557	6,542,557	6,542,557
Allocation of net income and net losses from commencement until initial closing date	92.50%
Percentage of fund distributions	92.50%
Managing Member [Member]
Other Members Capital Account [Line Items]
Members capital account, Units issued	50	50
Allocation of net income and net loss	99.00%
Allocation of net income and net losses from commencement until initial closing date	7.50%
Percentage of fund distributions	7.50%
Initial Member [Member]
Other Members Capital Account [Line Items]
Members capital account, Units issued	6,542,557
Members capital account, Units outstanding	6,542,557
Allocation of net income and net loss	1.00%
Maximum [Member] | Managing Member [Member]
Other Members Capital Account [Line Items]
Members capital account, units authorized	15,000,000	15,000,000

XML

Members' Capital (Distributions to Other Members) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Distributions declared	$ 1,799	$ 4,430
Weighted average number of Units outstanding	6,542,557	6,542,557
Other Members [Member]
Distributions declared	$ 1,799	$ 4,430
Weighted average number of Units outstanding	6,542,557	6,542,557
Weighted average distributions per Unit	$ 0.27	$ 0.68

XML

Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Fair Value Measurements [Abstract]
Warrants, fair value	$ 20	$ 225
Impairment losses on equipment	$ 995

XML

Fair Value Measurements (Fair Value, Warrants Measured on Recurring Basis) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Fair value of warrants at beginning of year	$ 225
Unrealized gain on fair value adjustment for warrants	(128)	$ (17)
Fair value of warrants at end of year	20	225
Level 3 Estimated Fair Value [Member]
Fair value of warrants at beginning of year	225	376
Unrealized gain on fair value adjustment for warrants	128	17
Warrants converted to securities	(333)	(168)
Fair value of warrants at end of year	$ 20	$ 225

XML

Fair Value Measurements (Fair Value, Investment Securities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Fair value of securities at the beginning of year	$ 70
Unrealized gain (loss) on fair market valuation of securities	(14)	$ (17)
Fair value of securities at the end of year	422	70
Level 1 Estimated Fair Value [Member]
Fair value of securities at the beginning of year	70	127
Conversion of previously held private securities	53
Equities sold	(176)
Warrants converted to securities	333
Unrealized gain (loss) on fair market valuation of securities	142	(57)
Fair value of securities at the end of year	$ 422	$ 70

XML

Fair Value Measurements (Fair Value Measurement of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis) (Details) $ in Thousands	Dec. 31, 2020 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired lease and off-lease equipment	$ 960
Level 3 Estimated Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired lease and off-lease equipment	$ 960

XML

Fair Value Measurements (Summary of Valuation Techniques and Significant Unobservable Inputs Used) (Details)	Dec. 31, 2020 USD ($) $ / shares	Dec. 31, 2019 $ / shares USD ($)
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired off-lease equipment, Range of Input Values	$ 960,000
Level 3 Estimated Fair Value [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired off-lease equipment, Range of Input Values	$ 960,000
Level 3 Estimated Fair Value [Member] | Minimum [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Formulation [Member] | Unobservable Inputs, Stock Price [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Warrants, Range of Input Values	0.0005	0.12
Level 3 Estimated Fair Value [Member] | Minimum [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Formulation [Member] | Unobservable Inputs, Exercise Price [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Warrants, Range of Input Values	0.0010	0.10
Level 3 Estimated Fair Value [Member] | Minimum [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Formulation [Member] | Unobservable Inputs, Time to Maturity (in Years) [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Warrants, Range of Input Values	0.98	1.98
Level 3 Estimated Fair Value [Member] | Minimum [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Formulation [Member] | Unobservable Inputs, Risk Free Interest Rate [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Warrants, Range of Input Values	0.0010	0.0158
Level 3 Estimated Fair Value [Member] | Minimum [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Formulation [Member] | Unobservable Inputs, Annualized Volatility [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Warrants, Range of Input Values	0.3386	0.3797
Level 3 Estimated Fair Value [Member] | Minimum [Member] | Nonrecurring [Member] | Market Approach Valuation Technique [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired off-lease equipment, Range of Input Values	$ 0
Level 3 Estimated Fair Value [Member] | Minimum [Member] | Nonrecurring [Member] | Market Approach Valuation Technique [Member] | Unobservable Inputs, Third Party Agents' pricing Quotes - Per Equipment [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired off-lease equipment, Range of Input Values	$ 960,000
Level 3 Estimated Fair Value [Member] | Maximum [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Formulation [Member] | Unobservable Inputs, Stock Price [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Warrants, Range of Input Values	0.2866	12.92
Level 3 Estimated Fair Value [Member] | Maximum [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Formulation [Member] | Unobservable Inputs, Exercise Price [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Warrants, Range of Input Values	1.6005	1.6005
Level 3 Estimated Fair Value [Member] | Maximum [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Formulation [Member] | Unobservable Inputs, Time to Maturity (in Years) [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Warrants, Range of Input Values	3.35	6.08
Level 3 Estimated Fair Value [Member] | Maximum [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Formulation [Member] | Unobservable Inputs, Risk Free Interest Rate [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Warrants, Range of Input Values	0.0022	0.0173
Level 3 Estimated Fair Value [Member] | Maximum [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Formulation [Member] | Unobservable Inputs, Annualized Volatility [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Warrants, Range of Input Values	1.5837	1.0907
Level 3 Estimated Fair Value [Member] | Maximum [Member] | Nonrecurring [Member] | Market Approach Valuation Technique [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired off-lease equipment, Range of Input Values	$ 150,000
Level 3 Estimated Fair Value [Member] | Weighted Average [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Formulation [Member] | Unobservable Inputs, Stock Price [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Warrants, Range of Input Values	0.0024	0.0038
Level 3 Estimated Fair Value [Member] | Weighted Average [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Formulation [Member] | Unobservable Inputs, Exercise Price [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Warrants, Range of Input Values	0.0032	0.0041
Level 3 Estimated Fair Value [Member] | Weighted Average [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Formulation [Member] | Unobservable Inputs, Time to Maturity (in Years) [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Warrants, Range of Input Values	1.18	2.20
Level 3 Estimated Fair Value [Member] | Weighted Average [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Formulation [Member] | Unobservable Inputs, Risk Free Interest Rate [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Warrants, Range of Input Values	0.0011	0.0159
Level 3 Estimated Fair Value [Member] | Weighted Average [Member] | Recurring [Member] | Warrant [Member] | Black-Scholes Formulation [Member] | Unobservable Inputs, Annualized Volatility [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Warrants, Range of Input Values	0.3528	0.4835

XML

Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Financial assets:
Cash and cash equivalents	$ 1,297	$ 3,027
Investment in securities	422	70
Warrants, fair value	20	225
Financial liabilities:
Non-recourse debt	3,212	4,115
Level 1 Estimated Fair Value [Member]
Financial assets:
Cash and cash equivalents	1,297	3,027
Investment in securities	422	70	$ 127
Level 3 Estimated Fair Value [Member]
Financial assets:
Warrants, fair value	20	225	$ 376
Financial liabilities:
Non-recourse debt	3,212	4,115
Carrying Amount [Member]
Financial assets:
Cash and cash equivalents	1,297	3,027
Investment in securities	422	70
Warrants, fair value	20	225
Financial liabilities:
Non-recourse debt	$ 3,108	$ 4,067