EX-31.1

Exhibit 31.1

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

I, Dean L. Cash, certify that:

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

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

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

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

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

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

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

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

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

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

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

Date: November 13, 2014

/s/ Dean L. Cash

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

EX-31.2

Exhibit 31.2

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

I, Paritosh K. Choksi, certify that:

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

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

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

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

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

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

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

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

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

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

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

Date: November 13, 2014

/s/ Paritosh K. Choksi

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

EX-32.1

Exhibit 32.1

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

In connection with the Quarterly Report of ATEL 12, LLC (the “Company”) on Form 10-Q for the period ended September 30, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Dean L. Cash, Chairman of the Board, President and Chief Executive Officer of ATEL Financial Services, LLC, Managing Member of the Company, hereby certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

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

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

Date: November 13, 2014

/s/ Dean L. Cash

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

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

EX-32.2

Exhibit 32.2

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

In connection with the Quarterly Report of ATEL 12, LLC (the “Company”) on Form 10-Q for the period ended September 30, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Paritosh K. Choksi, Director, Executive Vice President and Chief Financial Officer and Chief Operating Officer of ATEL Financial Services, LLC, Managing Member of the Company, hereby certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

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

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

Date: November 13, 2014

/s/ Paritosh K. Choksi

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

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

XML

Investments in Equipment and Leases, Net (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Initial Direct Costs Notes Receivable And Lease Assets [Line Items]
Depreciation of operating lease assets	$ 554	$ 705	$ 1,809	$ 2,109
Average estimated residual value for assets on operating leases	26.00%		26.00%		29.00%
Impairment losses on equipment			226
Amortization of initial direct costs	6	8	20	26
Lease Assets [Member]
Initial Direct Costs Notes Receivable And Lease Assets [Line Items]
Amortization of initial direct costs	$ 5	$ 7	$ 15	$ 21

XML

Fair Value Measurements (Reconciliation of Level 3 Assets) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unrealized loss on warrants, net recorded during the period	$ (5)	$ (179)
Level 3 Estimated Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Balance at December 31, 2013		555
Unrealized loss on warrants, net recorded during the period		(179)
Balance at September 30, 2014	$ 376	$ 376

XML

Borrowing Facilities (Narrative) (Details) (USD $)	1 Months Ended	12 Months Ended
	Jan. 31, 2014	Dec. 31, 2013	Sep. 30, 2014
Line of Credit Facility [Line Items]
Maximum amount of Credit Facility	$ 75,000,000	$ 60,000,000	$ 75,000,000
Credit Facility expiration date	2015-06	2014-06
Tangible Net Worth requirement under the Credit Facility			7,500,000
Leverage ratio			0.27
Interest coverage ratio			56.47
Net Worth			8,100,000
Outstanding borrowings under facility
Covenant Requirement [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Leverage ratio			1.25
Covenant Requirement [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Interest coverage ratio			2
Warehouse Facility [Member]
Line of Credit Facility [Line Items]
Outstanding borrowings under facility		$ 0	$ 0

XML

Fair Value Measurements (Fair Value Measurement of Assets And Liabilities Measured at Fair Value on a Non-Recurring Basis) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired off-lease equipment	$ 610
Level 1 Estimated Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired off-lease equipment
Level 2 Estimated Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired off-lease equipment
Level 3 Estimated Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired off-lease equipment	$ 610

XML

Non-Recourse Debt (Narrative) (Details) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2014
Gross operating lease rentals and future payments on direct financing leases	$ 2.3
Carrying value of pledged assets	$ 3.9
Maximum [Member]
Fixed Interest rate on note	2.75%
Note maturity year	2018
Minimum [Member]
Fixed Interest rate on note	1.41%
Note maturity year	2015

XML

Notes Receivable, Net (Initial Direct Costs, Amortization Expense Related to Notes Receivable and Company's Operating and Direct Finance Leases) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Initial Direct Costs Notes Receivable And Lease Assets [Line Items]
Amortization of initial direct costs	$ 6	$ 8	$ 20	$ 26
Notes Receivable [Member]
Initial Direct Costs Notes Receivable And Lease Assets [Line Items]
Amortization of initial direct costs	1	1	5	5
Lease Assets [Member]
Initial Direct Costs Notes Receivable And Lease Assets [Line Items]
Amortization of initial direct costs	$ 5	$ 7	$ 15	$ 21

XML

Fair Value Measurements (Estimated Fair Values of Financial Instruments) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Financial assets:
Cash and cash equivalents	$ 770	$ 857
Notes receivable, net	953	1,701
Investment in securities	258	275
Fair value of warrants	376	555
Financial liabilities:
Non-recourse debt	2,191	3,940
Level 1 Estimated Fair Value [Member]
Financial assets:
Cash and cash equivalents	770	857
Notes receivable, net
Investment in securities
Fair value of warrants
Financial liabilities:
Non-recourse debt
Level 2 Estimated Fair Value [Member]
Financial assets:
Cash and cash equivalents
Notes receivable, net
Investment in securities
Fair value of warrants
Financial liabilities:
Non-recourse debt
Level 3 Estimated Fair Value [Member]
Financial assets:
Notes receivable, net	953	1,701
Investment in securities	258	275
Fair value of warrants	376	555
Financial liabilities:
Non-recourse debt	2,191	3,940
Carrying Amount [Member]
Financial assets:
Cash and cash equivalents	770	857
Notes receivable, net	953	1,701
Investment in securities	258	275
Fair value of warrants	376	555
Financial liabilities:
Non-recourse debt	$ 2,203	$ 3,958

XML

Non-Recourse Debt (Tables)

9 Months Ended

Sep. 30, 2014

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
Three months ending December 31, 2014	$	309	$	11	$	320
Year ending December 31, 2015		873		30		903
2016		454		17		471
2017		464		7		471
2018		103		1		104
	$	2,203	$	66	$	2,269

XML

Commitments (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014
Disclosure Commitments Additional Information [Abstract]
Commitments to purchase lease assets	$ 0

XML

Investments in Equipment and Leases, Net (Components of Investment in Direct Financing Leases) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Investments in Equipment and Leases, Net [Abstract]
Total minimum lease payments receivable	$ 172	$ 297
Estimated residual values of leased equipment (unguaranteed)	3	12
Investment in direct financing leases	175	309
Less unearned income	(47)	(109)
Net investment in direct financing leases	$ 128	$ 200

XML

Allowance for Credit Losses (Financing Receivables by Credit Quality Indicator and Class) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Financing Receivable, Recorded Investment [Line Items]
Finance Leases	$ 128	$ 200
Notes Receivable	948	1,696
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Finance Leases	128	200
Notes Receivable	948	1,696
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Finance Leases
Notes Receivable
Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Finance Leases
Notes Receivable

XML

Members' Capital (Distributions to Other Members) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Members' Capital [Abstract]
Distributions	$ 673	$ 674	$ 2,020	$ 2,021	$ 2,694
Weighted average number of Units outstanding	2,992,482	2,993,482	2,993,141	2,993,482
Weighted average distributions per Unit	$ 0.22	$ 0.23	$ 0.67	$ 0.68	$ 0.90

XML

Non-Recourse Debt (Future Minimum Payments of Non-Recourse Debt) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014
Principal
Three months ending December 31, 2014	$ 309
Year ending December 31, 2015	873
2016	454
2017	464
2018	103
Long-term debt, principal	2,203
Interest
Three months ending December 31, 2014	11
Year ending December 31, 2015	30
2016	17
2017	7
2018	1
Long-term debt, interest	66
Total
Three months ending December 31, 2014	320
Year ending December 31, 2015	903
2016	471
2017	471
2018	104
Long-term debt, principal and interest, total	$ 2,269

XML

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2014

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2.  Summary of significant accounting policies:

Basis of presentation:

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q as mandated by the Securities and Exchange Commission. The unaudited interim financial statements reflect all adjustments which are, in the opinion of the Managing Member, necessary for a fair statement of financial position and results of operations for the interim periods presented. All such adjustments are of a normal recurring nature. Operating results for the three and nine months ended September 30, 2014 are not necessarily indicative of the results to be expected for the full year.

Certain prior period amounts may have been reclassified to conform to the current period 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 unaudited financial statements, the Company has reviewed, as determined necessary by the Managing Member, events that have occurred after September 30, 2014, up until the issuance of the financial statements. No events were noted which would require additional disclosure in the footnotes to the financial statements.

Use of estimates:

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

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 ASC 840-20-35-3, 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 in Note 5. 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.

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 regions in which the Company sought leasing opportunities were North America and Europe. For the nine months ended September 30, 2014 and 2013, and as of September 30, 2014 and December 31, 2013,100% of the Company’s operating revenues and long-lived assets relate to customers domiciled in North America.

Investment in securities:

Purchased securities

Purchased securities are generally not registered for public sale and are carried at cost. Such securities are adjusted to fair value if the fair value is less than the carrying value and such impairment is deemed by the Managing Member to be other than temporary. Factors considered by the Managing Member in determining fair value include, but are not limited to, available financial information, the issuer’s ability to meet its current obligations and indications of the issuer’s subsequent ability to raise capital. Based upon the Company’s review of its portfolio, no fair value adjustment was deemed necessary for the three and nine months ended September 30, 2014 and 2013. Purchased securities totaled $258 thousand and $275 thousand at September 30, 2014 and December 31, 2013, respectively. The Company recognized gains of $14 thousand and $5thousand on the disposition of certain purchased securities during the respective nine-month periods ended September 30, 2014 and 2013.  None of such gains were recognized during the three-month periods ended September 30, 2014 and 2013.

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. During the three and nine months ended September 30, 2014, the Company recorded unrealized losses of $5 thousand and $179 thousand, respectively, on fair valuation of its warrants. There were no unrealized gains or losses recorded during the three and nine months ended September 30, 2013. As of September 30, 2014 and December 31, 2013, the estimated fair value of the Company’s portfolio of warrants amounted to $376 thousand and$555 thousand, respectively. During the nine months ended September 30, 2014, the Company realized gains of $16 thousand on the net exercise of certain warrants. None of such realized gains were related to the third quarter. There werenonet exercises of warrants during the three and nine months ended September 30, 2013.

Per Unit data:

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

Recent accounting pronouncements:

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company evaluated the impact of the new standard on its financial

statements and has determined that such impact is virtually non-existent as the new revenue guideline does not affect revenues from leases and loans, which comprise the majority of the Company’s revenues.

In August 2014, the FASB issued Accounting Standards Update 2014-15, Presentation of Financial Statements – Going Concern (subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The new standard provides guidance relative to management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. Management is currently evaluating the standard and its operational and related disclosure requirements.

XML

Investments in Equipment and Leases, Net (Future Minimum Lease Payments Receivable) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014
Operating Leases
Three months ending December 31, 2014	$ 476
Year ending December 31, 2015	1,146
2016	489
2017	471
2018	109
Operating leases, future minimum payments receivable	2,691
Direct Financing Leases
Three months ending December 31, 2014	37
Year ending December 31, 2015	117
2016	17
2017	1
Capital leases, future minimum payments receivable	172
Total
Three months ending December 31, 2014	513
Year ending December 31, 2015	1,263
2016	506
2017	472
2018	109
Operating and financing leases, future minimum payments receivable, total	$ 2,863

XML

Organization and Limited Liability Company Matters (Narrative) (Details) (USD $)	0 Months Ended		60 Months Ended	92 Months Ended
	Jan. 24, 2008	Sep. 26, 2007	Sep. 30, 2014	Sep. 30, 2014	Dec. 31, 2013	Jul. 15, 2008 Minimum [Member]	Jan. 24, 2008 Minimum [Member]
Partnership termination date				Dec. 31, 2030
Public offering of Limited Company Units		20,000,000
Public offering of Limited Liability Company Units, price per unit		$ 10
Sale of Limited Liability Company Units, number of units	120,000
Proceeds from sale of Limited Liability Company Units	$ 1,200,000
Amount of aggregate subscriptions for Pennsylvania subscriptions to be released to the Fund							7,500,000
Contributions of capital			500	500
Contributions received, net of rescissions and/or redemptions			$ 29,900,000	$ 29,900,000		$ 7,500,000
Units issued			2,992,482	2,992,482	2,993,482
Units outstanding			2,992,482	2,992,482	2,993,482
Reinvestment period			6 years

XML

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2014

Fair Value Measurements [Abstract]

Reconciliation of Level 3 Assets

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

		Level 3 Assets
Balance at December 31, 2013	$	555
Unrealized loss on warrants, net recorded during the period		(179)
Balance at September 30, 2014	$	376

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

The following table presents the fair value measurement of assets measured at fair value on a non-recurring basis and the level within the hierarchy in which the fair value measurements fall at September 30, 2014 (in thousands):

		September 30, 2014	Level 1 Estimated Fair Value	Level 2 Estimated Fair Value		Level 3 Estimated Fair Value
Impaired off-lease equipment	$	610	-	-	$	610

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 fair value calculation categorized as Level 3 in the fair value hierarchy at September 30, 2014 and December 31, 2013:

September 30, 2014
	Valuation	Valuation	Unobservable	Range of
Name	Frequency	Technique	Inputs	Input Values
Warrants	Recurring	Black-Scholes formulation	Stock price	$0.05 - $25.76
			Exercise price	$0.05 - $25.76
			Time to maturity (in years)	1.21 - 9.23
			Risk-free interest rate	0.24% - 2.45%
			Annualized volatility	16.04% - 100.00%
Lease Equipment	Non-recurring	Market Approach	Third Party Agents' Pricing  Quotes - per equipment	$5,000 - $150,000 (total of $610,000)
			Equipment Condition	Poor to Average

December 31, 2013
	Valuation	Valuation	Unobservable	Range of
Name	Frequency	Technique	Inputs	Input Values
Warrants	Recurring	Black-Scholes formulation	Stock price	$0.05 - $25.76
			Exercise price	$0.05 - $25.76
			Time to maturity (in years)	1.96 - 9.98
			Risk-free interest rate	0.38% - 3.04%
			Annualized volatility	17.80% - 100.00%

Estimated Fair Values of Financial Instruments

The following tables present estimated fair values of the Company’s financial instruments in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification at September 30, 2014 and December 31, 2013 (in thousands):

		Fair Value Measurements at September 30, 2014
		Carrying Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	770	$	770	$	-	$	-	$	770
Notes receivable, net		953		-		-		953		953
Investment in securities		258		-		-		258		258
Fair value of warrants		376		-		-		376		376
Financial liabilities:
Non-recourse debt		2,203		-		-		2,191		2,191
		Fair Value Measurements at December 31, 2013
		Carrying Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	857	$	857	$	-	$	-	$	857
Notes receivable, net		1,701		-		-		1,701		1,701
Investment in securities		275		-		-		275		275
Fair value of warrants		555						555		555
Financial liabilities:
Non-recourse debt		3,958		-		-		3,940		3,940

XML

Fair Value Measurements (Summary of Valuation Techniques and Significant Unobservable Inputs Used) (Details) (USD $)	9 Months Ended	12 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Fair Value, Measurements, Nonrecurring [Member] | Lease Equipment [Member] | Market Approach [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Third Party Agents' Pricing Quotes - per equipment, total	$ 610,000
Minimum [Member] | Recurring [Member] | Warrant [Member] | Black Scholes Model [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Stock price	$ 0.05	$ 0.05
Exercise price	$ 0.05	$ 0.05
Time to maturity (in years)	1 year 2 months 16 days	1 year 11 months 16 days
Risk-free interest rate	0.24%	0.38%
Annualized volatility	16.04%	17.80%
Minimum [Member] | Fair Value, Measurements, Nonrecurring [Member] | Lease Equipment [Member] | Market Approach [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Third Party Agents' Pricing Quotes - per equipment	5,000
Maximum [Member] | Recurring [Member] | Warrant [Member] | Black Scholes Model [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Stock price	$ 25.76	$ 25.76
Exercise price	$ 25.76	$ 25.76
Time to maturity (in years)	9 years 2 months 23 days	9 years 11 months 23 days
Risk-free interest rate	2.45%	3.04%
Annualized volatility	100.00%	100.00%
Maximum [Member] | Fair Value, Measurements, Nonrecurring [Member] | Lease Equipment [Member] | Market Approach [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Third Party Agents' Pricing Quotes - per equipment	$ 150,000

XML

Investments in Equipment and Leases, Net (Schedule of Useful Lives of Assets) (Details)	9 Months Ended
	Sep. 30, 2014
Minimum [Member] | Aviation [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Useful lives of lease assets	15 years
Minimum [Member] | Manufacturing [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Useful lives of lease assets	10 years
Minimum [Member] | Mining [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Useful lives of lease assets	10 years
Minimum [Member] | Construction [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Useful lives of lease assets	7 years
Minimum [Member] | Materials Handling [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Useful lives of lease assets	7 years
Minimum [Member] | Transportation [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Useful lives of lease assets	7 years
Minimum [Member] | Computer [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Useful lives of lease assets	3 years
Maximum [Member] | Aviation [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Useful lives of lease assets	20 years
Maximum [Member] | Manufacturing [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Useful lives of lease assets	15 years
Maximum [Member] | Mining [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Useful lives of lease assets	15 years
Maximum [Member] | Construction [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Useful lives of lease assets	10 years
Maximum [Member] | Materials Handling [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Useful lives of lease assets	10 years
Maximum [Member] | Transportation [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Useful lives of lease assets	10 years
Maximum [Member] | Computer [Member]
Property Subject To Or Available For Operating Lease [Line Items]
Useful lives of lease assets	5 years

XML

Summary of Significant Accounting Policies (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014 segment	Sep. 30, 2013	Dec. 31, 2013
Gain on disposition of securities			$ 14	$ 5
Number of operating segments			1
Number of reportable segments			1
Percentage of operating revenues			100.00%		100.00%
Investment in securities	258		258		275
Unrealized loss on fair valuation of warrants	(5)		(179)
Fair value of warrants	376		376		555
Gain on exercise of warrants		$ 0	$ 16	$ 0
Minimum [Member]
Operating leases, initial terms			36 months
Operating leases, period for non accrual status			90 days
Maximum [Member]
Operating leases, initial terms			120 months
Equipment and lessee period of review for impairment			90 days

XML

Notes Receivable, Net (Narrative) (Details)	9 Months Ended
	Sep. 30, 2014
Minimum [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Terms of the notes receivable	36 months
Notes receivable, interest rate	11.37%
Notes maturity period	2015
Maximum [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Terms of the notes receivable	42 months
Notes receivable, interest rate	14.30%
Notes maturity period	2017

XML

Organization and Limited Liability Company Matters

9 Months Ended

Sep. 30, 2014

Organization and Limited Liability Company Matters [Abstract]

Organization and Limited Liability Company Matters

1.  Organization and Limited Liability Company matters:

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

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

As of September 30, 2014, cumulative contributions, net of rescissions and/or redemptions, totaling $29.9million (inclusive of the $500 initial Member’s capital investment) have been received and 2,992,482Units were issued and outstanding.  

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

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

These unaudited interim financial statements should be read in conjunction with the financial statements and notes thereto contained in the report on Form 10-K for the year ended December 31, 2013, filed with the Securities and Exchange Commission.

XML

Notes Receivable, Net (Minimum Future Payments Receivable) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Notes Receivable, Net [Abstract]
Three months ending December 31, 2014	$ 141
Year ending December 31, 2015	490
2016	400
2017	40
Notes receivable, gross	1,071
Less: portion representing unearned interest income	(123)	(255)
Notes receivable	948	1,696
Unamortized initial direct costs	5	5
Notes receivable, net	$ 953	$ 1,701

XML

Investments in Equipment and Leases, Net (Investment in Leases) (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Leases Disclosure [Line Items]
Balance December 31, 2013	$ 10,653
Reclassifications, Additions/ Dispositions	(2,203)
Depreciation/ Amortization Expense or Amortization of Leases	(1,902)
Balance September 30, 2014	6,548
Initial direct costs, accumulated amortization	73	85
Operating Leases [Member]
Leases Disclosure [Line Items]
Balance December 31, 2013	9,592
Reclassifications, Additions/ Dispositions	(1,983)
Depreciation/ Amortization Expense or Amortization of Leases	(1,809)
Balance September 30, 2014	5,800
Direct Financing Leases [Member]
Leases Disclosure [Line Items]
Balance December 31, 2013	200
Reclassifications, Additions/ Dispositions	6
Depreciation/ Amortization Expense or Amortization of Leases	(78)
Balance September 30, 2014	128
Assets Held-for-sale [Member]
Leases Disclosure [Line Items]
Balance December 31, 2013	835
Reclassifications, Additions/ Dispositions	(226)
Balance September 30, 2014	609
Initial Direct Cost
Leases Disclosure [Line Items]
Balance December 31, 2013	26
Depreciation/ Amortization Expense or Amortization of Leases	(15)
Balance September 30, 2014	$ 11

XML

Fair Value Measurements (Narrative) (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Fair Value Measurements [Abstract]
Fair value of warrants	$ 376	$ 555
Impairment losses on equipment	$ 226

XML

Balance Sheets (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
ASSETS
Cash and cash equivalents	$ 770	$ 857
Accounts receivable, net of allowance for doubtful accounts of $9 at September 30, 2014 and $3 at December 31, 2013	1,989	55
Notes receivable, net of unearned interest income of $123 at September 30, 2014 and $255 as of December 31, 2013	953	1,701
Investment in securities	258	275
Fair value of warrants	376	555
Investments in equipment and leases, net of accumulated depreciation of $10,594 at September 30, 2014 and $11,046 at December 31, 2013	6,548	10,653
Prepaid expenses and other assets	32	30
Total assets	10,926	14,126
Accounts payable and accrued liabilities:
Managing Member	75	55
Accrued distributions to Other Members	230	230
Other	255	211
Non-recourse debt	2,203	3,958
Unearned operating lease income	77	101
Total liabilities	2,840	4,555
Commitments and contingencies
Members' capital:
Managing Member
Other Members	8,086	9,571
Total Members' capital	8,086	9,571
Total liabilities and Members' capital	$ 10,926	$ 14,126

XML

Related Party Transactions (Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Disclosure Managing Member And Or Affiliates Earned Commissions And Billed For Reimbursements Pursuant To Operating Agreement [Abstract]
Administrative costs reimbursed to Managing Member and/or affiliates	$ 73	$ 97	$ 234	$ 285
Asset management fees to Managing Member and/or affiliates	34	40	113	125
Acquisition and initial direct costs paid to Managing Member and/or affiliates	22	46	53	87
Related party transaction, total	$ 129	$ 183	$ 400	$ 497

XML

Statements of Changes in Members' Capital (Parenthetical) (USD $)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Statements of Changes in Members' Capital [Abstract]
Distributions to Other Members, per unit	$ 0.22	$ 0.23	$ 0.67	$ 0.68	$ 0.90

XML

Allowance for Credit Losses (Activity in Allowance for Doubtful Accounts) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance			$ 3	$ 71	$ 71
Reversal of provision	9	(5)	6	(21)	(41)
Asset disposal					(27)
Ending Balance	9		9		3
Notes Receivable [Member] | Allowance for Doubtful Accounts [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance
Reversal of provision
Asset disposal
Ending Balance
Notes Receivable [Member] | Valuation Adjustments On Financing Receivables [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance				49	49
Reversal of provision					(22)
Asset disposal					(27)
Operating Leases [Member] | Allowance for Doubtful Accounts [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance			3	10	10
Reversal of provision			1		(7)
Ending Balance	4		4		3
Finance Leases [Member] | Allowance for Doubtful Accounts [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance				12	12
Reversal of provision			5		(12)
Ending Balance	5		5
Finance Leases [Member] | Valuation Adjustments On Financing Receivables [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance
Reversal of provision
Asset disposal
Ending Balance

XML

Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2014

Allowance for Credit Losses [Abstract]

Allowance for Credit Losses

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

		Accounts Receivable Allowance for Doubtful Accounts						Valuation Adjustments on Financing Receivables				Total Allowance for Credit Losses
		Notes Receivable		Finance Leases		Operating Leases		Notes Receivable		Finance Leases
Balance December 31, 2012	$	-	$	12	$	10	$	49	$	-	$	71
Reversal of provision		-		(12)		(7)		(22)		-		(41)
Asset disposal		-		-		-		(27)		-		(27)
Balance December 31, 2013		-		-		3		-		-		3
Provision		-		5		1		-		-		6
Balance September 30, 2014	$	-	$	5	$	4	$	-	$	-	$	9

Allowance for Credit Losses and Recorded Investment in Financing Receivables

The Company’s allowance for credit losses (related solely to financing receivables) and its recorded investment in financing receivables as of September 30, 2014 and December 31, 2013 were as follows (in thousands):

September 30, 2014		Notes Receivable			Finance Leases		Total
Allowance for credit losses:
Ending balance	$	-		$	-	$	-
Ending balance: individually evaluated for impairment	$	-		$	-	$	-
Ending balance: collectively evaluated for impairment	$	-		$	-	$	-
Ending balance: loans acquired with deteriorated credit quality	$	-		$	-	$	-
Financing receivables:
Ending balance	$	953	1	$	128	$	1,081
Ending balance: individually evaluated for impairment	$	953		$	128	$	1,081
Ending balance: collectively evaluated for impairment	$	-		$	-	$	-
Ending balance: loans acquired with deteriorated credit quality	$	-		$	-	$	-
1Includes $5 of unamortized initial direct costs.
December 31, 2013		Notes Receivable			Finance Leases		Total
Allowance for credit losses:
Ending balance	$			$	-	$	-
Ending balance: individually evaluated for impairment	$	-		$	-	$	-
Ending balance: collectively evaluated for impairment	$	-		$	-	$	-
Ending balance: loans acquired with deteriorated credit quality	$	-		$	-	$	-
Financing receivables:
Ending balance	$	1,701	2	$	200	$	1,901
Ending balance: individually evaluated for impairment	$	1,701		$	200	$	1,901
Ending balance: collectively evaluated for impairment	$	-		$	-	$	-
Ending balance: loans acquired with deteriorated credit quality	$	-		$	-	$	-
2Includes $5 of unamortized initial direct costs.

Financing Receivables by Credit Quality Indicator and Class

At September 30, 2014 and December 31, 2013, the Company’s financing receivables by credit quality indicator and by class of financing receivables are as follows (excludes initial direct costs) (in thousands):

		Notes Receivable				Finance Leases
		September 30, 2014		December 31, 2013		September 30, 2014		December 31, 2013
Pass	$	948	$	1,696	$	128	$	200
Special mention		-		-		-		-
Substandard		-		-		-		-
Doubtful		-		-		-		-
Total	$	948	$	1,696	$	128	$	200

Net Investment in Financing Receivables by Age

At September 30, 2014 and December 31, 2013, investment in financing receivables is aged as follows (in thousands):

September 30, 2014		31-60 Days Past Due		61-90 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables		Recorded Investment>90 Days and Accruing
Notes receivable	$	-	$	-	$	-	$	-	$	948	$	948	$	-
Finance leases		8		60		2		70		58		128		2
Total	$	8	$	60	$	2	$	70	$	1,006	$	1,076	$	2

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

XML

Allowance for Credit Losses (Recorded Investment in Financing Receivables) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014		Dec. 31, 2013
Allowances for credit losses:
Ending balance
Ending balance: individually evaluated for impairment
Ending balance: collectively evaluated for impairment
Ending balance: loans acquired with deteriorated credit quality
Financing receivables:
Ending balance	1,081		1,901
Ending balance: individually evaluated for impairment	1,081		1,901
Ending balance: collectively evaluated for impairment
Ending balance: loans acquired with deteriorated credit quality
Notes receivable unamortized initial direct cost	5		5
Notes Receivable [Member]
Allowances for credit losses:
Ending balance
Ending balance: individually evaluated for impairment
Ending balance: collectively evaluated for impairment
Ending balance: loans acquired with deteriorated credit quality
Financing receivables:
Ending balance	953	[1]	1,701	[1]
Ending balance: individually evaluated for impairment	953		1,701
Ending balance: collectively evaluated for impairment
Ending balance: loans acquired with deteriorated credit quality
Finance Leases [Member]
Allowances for credit losses:
Ending balance
Ending balance: individually evaluated for impairment
Ending balance: collectively evaluated for impairment
Ending balance: loans acquired with deteriorated credit quality
Financing receivables:
Ending balance	128		200
Ending balance: individually evaluated for impairment	128		200
Ending balance: collectively evaluated for impairment
Ending balance: loans acquired with deteriorated credit quality

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

XML

Related Party Transactions (Tables)

9 Months Ended

Sep. 30, 2014

Related Party Transactions [Abstract]

Affiliates Earned Commissions and Billed for Reimbursements Pursuant to Operating Agreement

During the three and nine months ended September 30, 2014 and 2013, the Managing Member and/or affiliates earned fees and billed for reimbursements pursuant to the Operating Agreement as follows (in thousands):

		Three Months Ended September 30,				Nine Months Ended September 30,
		2014		2013		2014		2013
Administrative costs reimbursed to Managing Member and/or affiliates	$	73	$	97	$	234	$	285
Asset management fees to Managing Member		34		40		113		125
Acquisition and initial direct costs paid to Managing Member and/or affiliates		22		46		53		87
	$	129	$	183	$	400	$	497

XML

Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Operating activities:
Net income	$ 664	$ 116	$ 702	$ 375
Adjustment to reconcile net income to cash provided by operating activities:
Gain on sales of lease assets and early termination of notes	(565)	(1)	(710)	(64)
Depreciation of operating lease assets	554	705	1,809	2,109
Amortization of initial direct costs	6	8	20	26
Provision for (reversal of) credit losses	9	(5)	6	(21)
Impairment losses on equipment			226
Gain on sales or dispositions of securities			(30)	(5)
Unrealized loss on fair valuation of warrants	5		179
Changes in operating assets and liabilities:
Accounts receivable	(57)	14	(32)	14
Prepaid expenses and other assets	(9)	(14)	(2)	(7)
Accounts payable, Managing Member	17	75	20	27
Accounts payable, other	17	(36)	44	58
Unearned operating lease income	1	57	(24)	(1)
Net cash provided by operating activities	642	919	2,208	2,511
Investing activities:
Purchases of equipment on operating leases				(895)
Purchase of securities		(1)	(24)	(1)
Proceeds from sales of lease assets and early termination of notes	535	158	1,047	684
Payments of initial direct costs			(5)	(3)
Note receivable advances		(1)		(93)
Proceeds from sale of securities			71	21
Principal payments received on direct financing leases	21	22	78	93
Principal payments received on notes receivable	111	154	480	526
Net cash provided by investing activities	667	332	1,647	332
Financing activities:
Borrowings under non-recourse debt			197	2,734
Repayments under non-recourse debt	(752)	(578)	(1,952)	(1,594)
Repurchases of Units			(3)
Net cash used in financing activities	(1,480)	(1,307)	(3,942)	(1,045)
Net (decrease) increase in cash and cash equivalents	(171)	(56)	(87)	1,798
Cash and cash equivalents at beginning of period	941	2,173	857	319
Cash and cash equivalents at end of period	770	2,117	770	2,117
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	14	32	56	94
Cash paid during the period for taxes			3	4
Schedule of non-cash transactions:
Amount due from sale of lease assets	1,908		1,908
Other Members [Member]
Operating activities:
Net income			538
Financing activities:
Distributions to Members	(673)	(674)	(2,020)	(2,021)
Repurchases of Units			(3)
Schedule of non-cash transactions:
Distributions payable to Members at period-end	230	230	230	230
Managing Member [Member]
Operating activities:
Net income			164
Financing activities:
Distributions to Members	(55)	(55)	(164)	(164)
Schedule of non-cash transactions:
Distributions payable to Members at period-end	$ 19	$ 19	$ 19	$ 19

XML

Balance Sheets (Parenthetical) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Balance Sheets [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 9	$ 3
Notes receivable, unearned interest income	123	255
Investments in equipment and leases, accumulated depreciation	$ 10,594	$ 11,046

XML

Guarantees

9 Months Ended

Sep. 30, 2014

Guarantees [Abstract]

Guarantees

10.  Guarantees:

The Company enters into contracts that contain a variety of indemnifications. The Company’s maximum exposure under these arrangements is unknown. However, the Company has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

The Managing Member knows of no facts or circumstances that would make the Company’s contractual commitments outside standard mutual covenants applicable to commercial transactions between businesses. Accordingly, the Company believes that these indemnification obligations are made in the ordinary course of business as part of standard commercial and industry practice, and that any potential liability under the Company’s similar commitments is remote. Should any such indemnification obligation become payable, the Company would separately record and/or disclose such liability in accordance with GAAP.

XML

Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Oct. 31, 2014
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3
Entity Registrant Name	ATEL 12, LLC
Entity Central Index Key	0001394922
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Units Outstanding		2,992,482

XML

Members' Capital

9 Months Ended

Sep. 30, 2014

Members' Capital [Abstract]

Members' Capital

11.  Members’ capital:

A total of 2,992,482and 2,993,482Units were issued and outstanding as of September 30,  2014 and December 31, 2013, respectively. The Fund was authorized to issue up to 20,000,000 total Units.

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

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

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

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2014		2013		2014		2013
Distributions	$	673	$	674	$	2,020	$	2,021
Weighted average number of Units outstanding		2,992,482		2,993,482		2,993,141		2,993,482
Weighted average distributions per Unit	$	0.22	$	0.23	$	0.67	$	0.68

XML

Statements of Income (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Leasing and lending activities:
Operating leases	$ 808	$ 980	$ 2,655	$ 2,900
Direct financing leases	20	29	67	96
Interest on notes receivable	29	32	118	114
Gain on sales of lease assets and early termination of notes	565	1	710	64
Gain on sales or dispositions of securities			30	5
Unrealized loss on fair valuation of warrants	(5)		(179)
Other	1	44	5	82
Total revenues	1,418	1,086	3,406	3,261
Expenses:
Depreciation of operating lease assets	554	705	1,809	2,109
Asset management fees to Managing Member	34	40	113	125
Acquisition expense	22	46	48	84
Cost reimbursements to Managing Member and/or affiliates	73	97	234	285
Provision for (reversal of) credit losses	9	(5)	6	(21)
Impairment losses on equipment			226
Amortization of initial direct costs	6	8	20	26
Interest expense	13	30	53	91
Professional fees	13	12	91	63
Outside services	5	8	25	28
Other	25	29	79	96
Total expenses	754	970	2,704	2,886
Net income	664	116	702	375
Net income:
Managing Member	55	55	164	164
Other Members	609	61	538	211
Net income	$ 664	$ 116	$ 702	$ 375
Net income per Limited Liability Company Unit (Other Members)	$ 0.20	$ 0.02	$ 0.18	$ 0.07
Weighted average number of Units outstanding	2,992,482	2,993,482	2,993,141	2,993,482

XML

Investments in Equipment and Leases, Net

9 Months Ended

Sep. 30, 2014

Investments in Equipment and Leases, Net [Abstract]

Investments In Equipment and Leases, Net

5.  Investments in equipment and leases, net:

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

		Balance December 31, 2013		Reclassifications, Additions/ Dispositions and Impairment Losses		Depreciation/ Amortization Expense or Amortization of Leases		Balance September 30, 2014
Net investment in operating leases	$	9,592	$	(1,983)	$	(1,809)	$	5,800
Net investment in direct financing leases		200		6		(78)		128
Assets held for sale or lease, net		835		(226)		-		609
Initial direct costs, net of accumulated amortization of $73 at September 30, 2014 and $85 at December 31, 2013		26		-		(15)		11
Total	$	10,653	$	(2,203)	$	(1,902)	$	6,548

Impairment of investments in leases:

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 their 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.

As a result of these reviews, the Company recorded fair value adjustments of $226 thousand during the nine months ended September 30, 2014 to reduce the cost basis of certain impaired off-lease equipment. There were no such adjustments during the three months ended September 30, 2014 or the three and nine months ended September 30, 2013.

The Company utilizes a straight line depreciation method for equipment in all of the categories currently in its portfolio of lease transactions. Depreciation expense on the Company’s equipment totaled $554 thousand and $705 thousand for the respective three months ended September 30, 2014 and 2013, and was $1.8 million and $2.1 million for the respective nine months ended September 30, 2014 and 2013.

IDC amortization expense related to the Company’s operating and direct financing leases totaled $5 thousand and $7 thousand for the respective three months ended September 30, 2014 and 2013, and $15 thousand and $21 thousand for the respective nine months ended September 30, 2014 and 2013 (See Note 3).

All of the Company’s leased property was acquired in the years 2008 through2013.  

Operating leases:

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

		Balance December 31, 2013		Additions		Reclassifications or Dispositions		Balance September 30, 2014
Transportation	$	4,935	$	-	$	-	$	4,935
Construction		2,989		-		-		2,989
Manufacturing		3,269		-		(835)		2,434
Aviation		2,167		-		-		2,167
Materials handling		1,902		-		(414)		1,488
Computer		139		-		(20)		119
Mining		2,893		-		(2,893)		-
Other		90		-		(82)		8
		18,384		-		(4,244)		14,140
Less accumulated depreciation		(8,792)		(1,809)		2,261		(8,340)
Total	$	9,592	$	(1,809)	$	(1,983)	$	5,800

The average estimated residual value for assets on operating leases was26% and29% of the assets’ original cost at September 30, 2014 and December 31, 2013, respectively. There were no operating leases in non-accrual status at September 30, 2014 and December 31, 2013.

Direct financing leases:

As of September 30, 2014, investment in direct financing leases consists of materials handling equipment. Such investment consisted of materials handling and manufacturing equipment at December 31, 2013.The components of the Company’s investment in direct financing leases as of September 30, 2014 and December 31, 2013 are as follows (in thousands):

		September 30,		December 31,
		2014		2013
Total minimum lease payments receivable	$	172	$	297
Estimated residual values of leased equipment (unguaranteed)		3		12
Investment in direct financing leases		175		309
Less unearned income		(47)		(109)
Net investment in direct financing leases	$	128	$	200

There were no investments in direct financing leases in non-accrual status at September 30, 2014 and December 31, 2013.

At September 30, 2014, the aggregate amounts of future minimum lease payments receivable are as follows (in thousands):

		Operating Leases		Direct Financing Leases		Total
Three months ending December 31, 2014	$	476	$	37	$	513
Year ending December 31, 2015		1,146		117		1,263
2016		489		17		506
2017		471		1		472
2018		109		-		109
	$	2,691	$	172	$	2,863

The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of September 30, 2014 and December 31, 2013, the respective useful lives of each category of lease assets in the Company’s portfolio are as follows (in years):

Equipment category	Useful Life
Aviation	15 - 20
Manufacturing	10 - 15
Mining	10 - 15
Construction	7 - 10
Materials handling	7 - 10
Transportation	7 - 10
Computer	3 - 5

XML

Allowance for Credit Losses

9 Months Ended

Sep. 30, 2014

Allowance for Credit Losses [Abstract]

Allowance for Credit Losses

4.  Allowance for credit losses:

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

		Accounts Receivable Allowance for Doubtful Accounts						Valuation Adjustments on Financing Receivables				Total Allowance for Credit Losses
		Notes Receivable		Finance Leases		Operating Leases		Notes Receivable		Finance Leases
Balance December 31, 2012	$	-	$	12	$	10	$	49	$	-	$	71
Reversal of provision		-		(12)		(7)		(22)		-		(41)
Asset disposal		-		-		-		(27)		-		(27)
Balance December 31, 2013		-		-		3		-		-		3
Provision		-		5		1		-		-		6
Balance September 30, 2014	$	-	$	5	$	4	$	-	$	-	$	9

Accounts receivable

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

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

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

Financing receivables

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

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

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

The Company’s allowance for credit losses (related solely to financing receivables) and its recorded investment in financing receivables as of September 30, 2014 and December 31, 2013 were as follows (in thousands):

September 30, 2014		Notes Receivable			Finance Leases		Total
Allowance for credit losses:
Ending balance	$	-		$	-	$	-
Ending balance: individually evaluated for impairment	$	-		$	-	$	-
Ending balance: collectively evaluated for impairment	$	-		$	-	$	-
Ending balance: loans acquired with deteriorated credit quality	$	-		$	-	$	-
Financing receivables:
Ending balance	$	953	1	$	128	$	1,081
Ending balance: individually evaluated for impairment	$	953		$	128	$	1,081
Ending balance: collectively evaluated for impairment	$	-		$	-	$	-
Ending balance: loans acquired with deteriorated credit quality	$	-		$	-	$	-
1Includes $5 of unamortized initial direct costs.
December 31, 2013		Notes Receivable			Finance Leases		Total
Allowance for credit losses:
Ending balance	$			$	-	$	-
Ending balance: individually evaluated for impairment	$	-		$	-	$	-
Ending balance: collectively evaluated for impairment	$	-		$	-	$	-
Ending balance: loans acquired with deteriorated credit quality	$	-		$	-	$	-
Financing receivables:
Ending balance	$	1,701	2	$	200	$	1,901
Ending balance: individually evaluated for impairment	$	1,701		$	200	$	1,901
Ending balance: collectively evaluated for impairment	$	-		$	-	$	-
Ending balance: loans acquired with deteriorated credit quality	$	-		$	-	$	-
2Includes $5 of unamortized initial direct costs.

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

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

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

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

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

At September 30, 2014 and December 31, 2013, the Company’s financing receivables by credit quality indicator and by class of financing receivables are as follows (excludes initial direct costs) (in thousands):

		Notes Receivable				Finance Leases
		September 30, 2014		December 31, 2013		September 30, 2014		December 31, 2013
Pass	$	948	$	1,696	$	128	$	200
Special mention		-		-		-		-
Substandard		-		-		-		-
Doubtful		-		-		-		-
Total	$	948	$	1,696	$	128	$	200

At September 30, 2014 and December 31, 2013, investment in financing receivables is aged as follows (in thousands):

September 30, 2014		31-60 Days Past Due		61-90 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables		Recorded Investment>90 Days and Accruing
Notes receivable	$	-	$	-	$	-	$	-	$	948	$	948	$	-
Finance leases		8		60		2		70		58		128		2
Total	$	8	$	60	$	2	$	70	$	1,006	$	1,076	$	2

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

The Company had neither financing receivables in non-accrual status nor impaired financing receivables at both September 30, 2014 and December 31, 2013. As of September 30, 2014, certain investments in financing receivables with related accounts receivable past due more than 90 days were still on an accrual basis based on management’s assessment of the collectability of such receivables. However, these accounts receivable were fully reserved and included in the allowance for doubtful accounts presented above. As of December 31, 2013, there were no investments in financing receivables with related accounts receivable past due more than 90 days which were still on an accrual basis.

XML

Investments in Equipment and Leases, Net (Tables)

9 Months Ended

Sep. 30, 2014

Investments in Equipment and Leases, Net [Abstract]

Investment in Leases

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

		Balance December 31, 2013		Reclassifications, Additions/ Dispositions and Impairment Losses		Depreciation/ Amortization Expense or Amortization of Leases		Balance September 30, 2014
Net investment in operating leases	$	9,592	$	(1,983)	$	(1,809)	$	5,800
Net investment in direct financing leases		200		6		(78)		128
Assets held for sale or lease, net		835		(226)		-		609
Initial direct costs, net of accumulated amortization of $73 at September 30, 2014 and $85 at December 31, 2013		26		-		(15)		11
Total	$	10,653	$	(2,203)	$	(1,902)	$	6,548

Property on Operating Leases

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

		Balance December 31, 2013		Additions		Reclassifications or Dispositions		Balance September 30, 2014
Transportation	$	4,935	$	-	$	-	$	4,935
Construction		2,989		-		-		2,989
Manufacturing		3,269		-		(835)		2,434
Aviation		2,167		-		-		2,167
Materials handling		1,902		-		(414)		1,488
Computer		139		-		(20)		119
Mining		2,893		-		(2,893)		-
Other		90		-		(82)		8
		18,384		-		(4,244)		14,140
Less accumulated depreciation		(8,792)		(1,809)		2,261		(8,340)
Total	$	9,592	$	(1,809)	$	(1,983)	$	5,800

Components of Company's Investment in Direct Financing Leases

The components of the Company’s investment in direct financing leases as of September 30, 2014 and December 31, 2013 are as follows (in thousands):

		September 30,		December 31,
		2014		2013
Total minimum lease payments receivable	$	172	$	297
Estimated residual values of leased equipment (unguaranteed)		3		12
Investment in direct financing leases		175		309
Less unearned income		(47)		(109)
Net investment in direct financing leases	$	128	$	200

Future Minimum Lease Payments Receivable

At September 30, 2014, the aggregate amounts of future minimum lease payments receivable are as follows (in thousands):

		Operating Leases		Direct Financing Leases		Total
Three months ending December 31, 2014	$	476	$	37	$	513
Year ending December 31, 2015		1,146		117		1,263
2016		489		17		506
2017		471		1		472
2018		109		-		109
	$	2,691	$	172	$	2,863

Schedule of Useful Lives of Assets

As of September 30, 2014 and December 31, 2013, the respective useful lives of each category of lease assets in the Company’s portfolio are as follows (in years):

Equipment category	Useful Life
Aviation	15 - 20
Manufacturing	10 - 15
Mining	10 - 15
Construction	7 - 10
Materials handling	7 - 10
Transportation	7 - 10
Computer	3 - 5

XML

Fair Value Measurements

9 Months Ended

Sep. 30, 2014

Fair Value Measurements [Abstract]

Fair Value Measurements

12.  Fair value measurements:

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

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

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

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

At September 30, 2014 and December 31, 2013, only the Company’s warrants were measured on a recurring basis. However, during the first nine months of 2014, the Company recorded non-recurring adjustments to reflect the fair values of certain impaired off-lease assets. There were no such adjustments recorded during 2013. Amounts at September 30, 2014 reflect the fair value of the then existing impaired assets.  

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

The fair value adjustments utilized the following methodology:

Warrants (recurring)

Warrants owned by the Company are not registered for public sale, but are considered derivatives and are carried on the balance sheet at an estimated fair value at the end of the period. The valuation of the warrants was determined using a Black-Scholes formulation of value based upon the stock price(s), the exercise price(s), the volatility of comparable venture companies, and a risk free interest rate for the term(s) of the warrant exercise(s). As of September 30, 2014 and December 31, 2013, the calculated fair values of the Fund’s warrant portfolio approximated $376 thousand and $555 thousand, respectively. Such valuations are classified within Level 3 of the valuation hierarchy.

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

		Level 3 Assets
Balance at December 31, 2013	$	555
Unrealized loss on warrants, net recorded during the period		(179)
Balance at September 30, 2014	$	376

Impaired off-lease equipment (non-recurring)

During the first nine months of 2014, the Company deemed certain off-lease equipment to be impaired and recorded fair value adjustments of $226 thousand to reduce the cost basis of the impaired equipment. None of such adjustments were related to the third quarter. By comparison, the Company did not record non-recurring fair value adjustments to impair equipment during 2013.

The fair value adjustments recorded during the first nine months of 2014 were non-recurring. 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 table presents the fair value measurement of assets measured at fair value on a non-recurring basis and the level within the hierarchy in which the fair value measurements fall at September 30, 2014 (in thousands):

		September 30, 2014	Level 1 Estimated Fair Value	Level 2 Estimated Fair Value		Level 3 Estimated Fair Value
Impaired off-lease equipment	$	610	-	-	$	610

The following tables summarize the valuation techniques and significant unobservable inputs used for the Company’s recurring fair value calculation categorized as Level 3 in the fair value hierarchy at September 30, 2014 and December 31, 2013:

September 30, 2014
	Valuation	Valuation	Unobservable	Range of
Name	Frequency	Technique	Inputs	Input Values
Warrants	Recurring	Black-Scholes formulation	Stock price	$0.05 - $25.76
			Exercise price	$0.05 - $25.76
			Time to maturity (in years)	1.21 - 9.23
			Risk-free interest rate	0.24% - 2.45%
			Annualized volatility	16.04% - 100.00%
Lease Equipment	Non-recurring	Market Approach	Third Party Agents' Pricing  Quotes - per equipment	$5,000 - $150,000 (total of $610,000)
			Equipment Condition	Poor to Average

December 31, 2013
	Valuation	Valuation	Unobservable	Range of
Name	Frequency	Technique	Inputs	Input Values
Warrants	Recurring	Black-Scholes formulation	Stock price	$0.05 - $25.76
			Exercise price	$0.05 - $25.76
			Time to maturity (in years)	1.96 - 9.98
			Risk-free interest rate	0.38% - 3.04%
			Annualized volatility	17.80% - 100.00%

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

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

Cash and cash equivalents

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

Notes receivable

The fair value of the Company’s notes receivable is generally estimated based upon various methodologies deployed by financial and credit management including, but not limited to, credit analysis, third party appraisal and/ordiscounted cash flow analysis based upon current market valuation techniques and market rates for similar types of lending arrangements, which may consider adjustments for impaired loans as deemed necessary.

Investment in securities

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

Non-recourse debt

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

Commitments and Contingencies

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

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

The following tables present estimated fair values of the Company’s financial instruments in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification at September 30, 2014 and December 31, 2013 (in thousands):

		Fair Value Measurements at September 30, 2014
		Carrying Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	770	$	770	$	-	$	-	$	770
Notes receivable, net		953		-		-		953		953
Investment in securities		258		-		-		258		258
Fair value of warrants		376		-		-		376		376
Financial liabilities:
Non-recourse debt		2,203		-		-		2,191		2,191
		Fair Value Measurements at December 31, 2013
		Carrying Value		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	857	$	857	$	-	$	-	$	857
Notes receivable, net		1,701		-		-		1,701		1,701
Investment in securities		275		-		-		275		275
Fair value of warrants		555						555		555
Financial liabilities:
Non-recourse debt		3,958		-		-		3,940		3,940

XML

Borrowing Facilities

9 Months Ended

Sep. 30, 2014

Borrowing Facilities [Abstract]

Borrowing Facilities

8.  Borrowing facilities:

The Company participates with AFS and certain of its affiliates in a revolving credit facility (the “Credit Facility”) with a syndicate of financial institutions. The Credit Facility is comprised of a working capital facility to AFS, an acquisition facility (the “Acquisition Facility”) and a warehouse facility (the “Warehouse Facility”) to AFS, the Company and affiliates, and a venture facility available to an affiliate. The Credit Facility was for an amount up to $60 million and set to expire in June2014.  During January 2014, the line was increased to $75 million, an affiliated participant added, and the expiration extended to June 2015.The lending syndicate providing the Credit Facility has a blanket lien on all of the Company’s assets as collateral for any and all borrowings under the Acquisition Facility, and on a pro-rata basis under the Warehouse Facility. Such Credit Facility includes certain financial covenants.

As of September 30, 2014 and December 31, 2013, borrowings under the Credit Facility were as follows (in thousands):

		September 30,		December 31,
		2014		2013
Total available under the financing arrangement	$	75,000	$	60,000
Amount borrowed by the Company under the acquisition facility		-		-
Amounts borrowed by affiliated partnerships and limited liability companies under the venture, acquisition and warehouse facilities		(2,857)		(7,310)
Total remaining available under the venture, acquisition and warehouse facilities	$	72,143	$	52,690

The Company and its affiliates pay an annual commitment fee to have access to this line of credit. As of September 30, 2014, the aggregate amount of the Credit Facility is potentially available to the Company, subject to certain sub-facility and borrowing-base limitations. However, as amounts are drawn on the Credit Facility by each of the Company and the affiliates who are borrowers under the Credit Facility, the amount remaining available to all borrowers to draw under the Credit Facility is reduced. As the Warehousing Facility is a short term bridge facility, any amounts borrowed under the Warehousing Facility, and then repaid by the affiliated borrowers (including the Company) upon allocation of an acquisition to a specific purchaser, become available under the Warehouse Facility for further short term borrowing.

As of September 30, 2014, the Company’s Tangible Net Worth requirement under the Credit Facility was $7.5 million, the permitted maximum leverage ratio was not to exceed 1.25 to 1, and the required minimum interest coverage ratio was not to be less than 2 to 1. The Company was in compliance with these financial covenants under the Credit Facility with a minimum Tangible Net Worth, leverage ratio and interest coverage ratio, as calculated per the Credit Facility agreement of $8.1 million, 0.27 to 1, and 56.47 to 1, respectively, as of September 30, 2014. As such, as of September 30, 2014, the Company was in compliance with all material financial covenants, and with all other material conditions of the Credit Facility. The Company does not anticipate any covenant violations nor does it anticipate that any of these covenants will restrict its operations or its ability to procure additional financing.

Fee and interest terms

The interest rate on the Credit Facility is based on either the LIBOR/Eurocurrency rate of 1-, 2-, 3- or 6-month maturity plus a lender designated spread, or the bank’s Prime rate, which re-prices daily. Principal amounts of loans made under the Credit Facility that are prepaid may be re-borrowed on the terms and subject to the conditions set forth under the Credit Facility. There were no borrowings outstanding at September 30, 2014 and December 31, 2013.

Warehouse facility

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

As of September 30, 2014, the investment program participants were the Company, ATEL 14, LLC, ATEL 15, LLC and ATEL 16, LLC.  Pursuant to the Warehousing Trust, the benefit of the lease transaction assets, and the corresponding liabilities under the Warehouse Facility, inure to each of such entities based upon each entity’s pro-rata share in the Warehousing Trust estate. The “pro-rata share” is calculated as a ratio of the net worth of each entity over the aggregate net worth of all entities benefiting from the Warehousing Trust estate, excepting that the trustees, AFS and ALC, are both jointly and severally liable for the pro-rata portion of the obligations of each of the affiliated limited liability companies participating under the Warehouse Facility. Transactions are financed through this Warehouse Facility only until the transactions are allocated to a specific program for purchase or are otherwise disposed by AFS and ALC. When a determination is made to allocate the transaction to a specific program for purchase by the program, the purchaser repays the debt associated with the asset, either with cash or by means of proceeds of a draw under the Acquisition Facility, and the asset is removed from the Warehouse Facility collateral, and ownership of the asset and any debt obligation associated with the asset are assumed solely by the purchasing entity.

There were no borrowings under the Warehouse Facility as of September 30, 2014 and December 31, 2013.

XML

Related Party Transactions

9 Months Ended

Sep. 30, 2014

Related Party Transactions [Abstract]

Related Party Transactions

6.  Related party transactions:

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

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

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

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

During the three and nine months ended September 30, 2014 and 2013, the Managing Member and/or affiliates earned fees and billed for reimbursements pursuant to the Operating Agreement as follows (in thousands):

		Three Months Ended September 30,				Nine Months Ended September 30,
		2014		2013		2014		2013
Administrative costs reimbursed to Managing Member and/or affiliates	$	73	$	97	$	234	$	285
Asset management fees to Managing Member		34		40		113		125
Acquisition and initial direct costs paid to Managing Member and/or affiliates		22		46		53		87
	$	129	$	183	$	400	$	497

XML

Non-Recourse Debt

9 Months Ended

Sep. 30, 2014

Non-Recourse Debt [Abstract]

Non-Recourse Debt

7.  Non-recourse debt:

At September 30, 2014, non-recourse debt consists of notes payable to financial institutions. The notes are due in monthly installments. Interest on the notes is at fixed rates ranging from 1.41% to 2.75% per annum. The notes are secured by assignments of lease payments and pledges of assets. At September 30, 2014, gross lease rentals totaled approximately $2.3 million over the remaining lease terms; and the carrying value of the pledged assets is approximately $3.9 million. The notes mature at various dates from 2015 through 2018.

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

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

		Principal		Interest		Total
Three months ending December 31, 2014	$	309	$	11	$	320
Year ending December 31, 2015		873		30		903
2016		454		17		471
2017		464		7		471
2018		103		1		104
	$	2,203	$	66	$	2,269

XML

Commitments

9 Months Ended

Sep. 30, 2014

Commitments [Abstract]

Commitments

9.  Commitments:

At September 30, 2014, the Company had no commitments to purchase lease assets or fund investments in notes receivable.  

XML

Allowance for Credit Losses (Narrative) (Details)	9 Months Ended
	Sep. 30, 2014
Minimum [Member]
Accounts receivable, period for non-accrual status	90 days
Maximum [Member]
Accounts receivable, period of review for impairment	90 days

XML

Members' Capital (Narrative) (Details)	9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Other Members Capital Account [Line Items]
Other Members capital account, units issued	2,992,482	2,993,482
Other Members capital account, units outstanding	2,992,482	2,993,482
Other Members capital account, units authorized	20,000,000	20,000,000
Potential repurchase price of Units as percentage of holder's capital account	100.00%
Allocation of net income or net losses	100.00%
Other Members [Member]
Other Members Capital Account [Line Items]
Allocation of net income or net losses from commencement until initial closing date	1.00%
Allocation of net income or net losses commencing with initial closing date	92.50%
Percentage of fund distributions	92.50%
Managing Member [Member]
Other Members Capital Account [Line Items]
Allocation of net income or net losses from commencement until initial closing date	99.00%
Allocation of net income or net losses commencing with initial closing date	7.50%
Percentage of fund distributions	7.50%

XML

Notes Receivable, Net (Tables)

9 Months Ended

Sep. 30, 2014

Notes Receivable, Net [Abstract]

Minimum Future Payments Receivable

As of September 30, 2014, the minimum future payments receivable are as follows (in thousands):

Three months ending December 31, 2014	$	141
Year ending December 31, 2015		490
2016		400
2017		40
		1,071
Less: portion representing unearned interest income		(123)
		948
Unamortized initial direct costs		5
Notes receivable, net	$	953

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

Initial direct costs (“IDC”) amortization expense related to notes receivable and the Company’s operating and direct financing leases for the three and nine months ended September 30, 2014 and 2013 are as follows (in thousands):

		Three Months Ended September 30,				Nine Months Ended September 30,
		2014		2013		2014		2013
IDC amortization - notes receivable	$	1	$	1	$	5	$	5
IDC amortization - lease assets		5		7		15		21
Total	$	6	$	8	$	20	$	26

XML

Borrowing Facilities (Tables)

9 Months Ended

Sep. 30, 2014

Borrowing Facilities [Abstract]

Borrowings Under Facility

As of September 30, 2014 and December 31, 2013, borrowings under the Credit Facility were as follows (in thousands):

		September 30,		December 31,
		2014		2013
Total available under the financing arrangement	$	75,000	$	60,000
Amount borrowed by the Company under the acquisition facility		-		-
Amounts borrowed by affiliated partnerships and limited liability companies under the venture, acquisition and warehouse facilities		(2,857)		(7,310)
Total remaining available under the venture, acquisition and warehouse facilities	$	72,143	$	52,690

XML

Borrowings Facilities (Borrowings Under Facility) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Jan. 31, 2014	Dec. 31, 2013
Line of Credit Facility [Line Items]
Total available under the financing arrangement	$ 75,000	$ 75,000	$ 60,000
Amount borrowed
Total remaining available under the venture, acquisition and warehouse facilities	72,143		52,690
Related Party [Member]
Line of Credit Facility [Line Items]
Amount borrowed	$ (2,857)		$ (7,310)

XML

Investments in Equipment and Leases, Net (Property on Operating Leases) (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2013	$ 9,592
Additions	(1,809)
Reclassifications or Dispositions	(1,983)
Balance September 30, 2014	5,800
Transportation [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2013	4,935
Additions
Reclassifications or Dispositions
Balance September 30, 2014	4,935
Construction [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2013	2,989
Additions
Reclassifications or Dispositions
Balance September 30, 2014	2,989
Manufacturing [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2013	3,269
Additions
Reclassifications or Dispositions	(835)
Balance September 30, 2014	2,434
Aviation [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2013	2,167
Additions
Reclassifications or Dispositions
Balance September 30, 2014	2,167
Materials Handling [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2013	1,902
Additions
Reclassifications or Dispositions	(414)
Balance September 30, 2014	1,488
Computer [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2013	139
Additions
Reclassifications or Dispositions	(20)
Balance September 30, 2014	119
Mining [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2013	2,893
Additions
Reclassifications or Dispositions	(2,893)
Other [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2013	90
Additions
Reclassifications or Dispositions	(82)
Balance September 30, 2014	8
Total Property Subject to or Available For Operating Lease [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2013	18,384
Additions
Reclassifications or Dispositions	(4,244)
Balance September 30, 2014	14,140
Less Accumulated Depreciation [Member]
Property Subject to or Available for Operating Lease [Line Items]
Balance December 31, 2013	(8,792)
Additions	(1,809)
Reclassifications or Dispositions	2,261
Balance September 30, 2014	$ (8,340)

XML

Statements of Changes in Members' Capital (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Beginning Balance		$ 9,571	$ 11,491	$ 11,491
Repurchases of Units		(3)
Distributions to Other Members	(673)	(2,020)	(2,021)	(2,694)
Distributions to Managing Member		(164)		(218)
Net income	664	702	375	992
Ending Balance	8,086	8,086		9,571
Other Members [Member]
Beginning Balance (in units)		2,993,482	2,993,482	2,993,482
Beginning Balance		9,571	11,491	11,491
Repurchases of units (in units)		(1,000)
Repurchases of Units		(3)
Distributions to Other Members		(2,020)		(2,694)
Net income		538		774
Ending Balance (in units)	2,992,482	2,992,482		2,993,482
Ending Balance	8,086	8,086		9,571
Managing Member [Member]
Distributions to Managing Member		(164)		(218)
Net income		$ 164		$ 218

XML

Notes Receivable, Net

9 Months Ended

Sep. 30, 2014

Notes Receivable, Net [Abstract]

Notes Receivable, Net

3.  Notes receivable, net:

The Company has various notes receivable from borrowers who have financed the purchase of equipment through the Company. At September 30, 2014, the terms of the notes receivable are from 36 to 42 months and bear interest at rates ranging from 11.37% to 14.30% per annum. The notes aregenerally secured by the equipment financed and have maturity dates ranging from 2015 through 2017.  The Company had neither notes in non-accrual status nor impaired notes at both September 30, 2014 and December 31, 2013.

As of September 30, 2014, the minimum future payments receivable are as follows (in thousands):

Three months ending December 31, 2014	$	141
Year ending December 31, 2015		490
2016		400
2017		40
		1,071
Less: portion representing unearned interest income		(123)
		948
Unamortized initial direct costs		5
Notes receivable, net	$	953

Initial direct costs (“IDC”) amortization expense related to notes receivable and the Company’s operating and direct financing leases for the three and nine months ended September 30, 2014 and 2013 are as follows (in thousands):

		Three Months Ended September 30,				Nine Months Ended September 30,
		2014		2013		2014		2013
IDC amortization - notes receivable	$	1	$	1	$	5	$	5
IDC amortization - lease assets		5		7		15		21
Total	$	6	$	8	$	20	$	26

XML

Members' Capital (Tables)

9 Months Ended

Sep. 30, 2014

Members' Capital [Abstract]

Distributions to Other Members

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

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2014		2013		2014		2013
Distributions	$	673	$	674	$	2,020	$	2,021
Weighted average number of Units outstanding		2,992,482		2,993,482		2,993,141		2,993,482
Weighted average distributions per Unit	$	0.22	$	0.23	$	0.67	$	0.68

XML

Allowance for Credit Losses (Net Investment in Financing Receivables by Age) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Financing Receivable Recorded Investment Past Due [Line Items]
31-60 Days Past Due	$ 8	$ 87
61-90 Days Past Due	60
Greater Than 90 Days	2
Total Past Due	70	87
Current	1,006	1,809
Total Financing Receivable	1,076	1,896
Investment > 90 Days and Accruing	2
Notes Receivable [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
31-60 Days Past Due
61-90 Days Past Due
Greater Than 90 Days
Total Past Due
Current	948	1,696
Total Financing Receivable	948	1,696
Investment > 90 Days and Accruing
Finance Leases [Member]
Financing Receivable Recorded Investment Past Due [Line Items]
31-60 Days Past Due	8	87
61-90 Days Past Due	60
Greater Than 90 Days	2
Total Past Due	70	87
Current	58	113
Total Financing Receivable	128	200
Investment > 90 Days and Accruing	$ 2

XML

Summary of Significant Accounting Policies (Policy)

9 Months Ended

Sep. 30, 2014

Summary of Significant Accounting Policies [Abstract]

Basis of Presentation

Basis of presentation:

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q as mandated by the Securities and Exchange Commission. The unaudited interim financial statements reflect all adjustments which are, in the opinion of the Managing Member, necessary for a fair statement of financial position and results of operations for the interim periods presented. All such adjustments are of a normal recurring nature. Operating results for the three and nine months ended September 30, 2014 are not necessarily indicative of the results to be expected for the full year.

Certain prior period amounts may have been reclassified to conform to the current period 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 unaudited financial statements, the Company has reviewed, as determined necessary by the Managing Member, events that have occurred after September 30, 2014, up until the issuance of the financial statements. No events were noted which would require additional disclosure in the footnotes to the financial statements.

Use of Estimates

Use of estimates:

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

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 ASC 840-20-35-3, 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 in Note 5. 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.

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 regions in which the Company sought leasing opportunities were North America and Europe. For the nine months ended September 30, 2014 and 2013, and as of September 30, 2014 and December 31, 2013,100% of the Company’s operating revenues and long-lived assets relate to customers domiciled in North America.

Investment in Securities

Investment in securities:

Purchased securities

Purchased securities are generally not registered for public sale and are carried at cost. Such securities are adjusted to fair value if the fair value is less than the carrying value and such impairment is deemed by the Managing Member to be other than temporary. Factors considered by the Managing Member in determining fair value include, but are not limited to, available financial information, the issuer’s ability to meet its current obligations and indications of the issuer’s subsequent ability to raise capital. Based upon the Company’s review of its portfolio, no fair value adjustment was deemed necessary for the three and nine months ended September 30, 2014 and 2013. Purchased securities totaled $258 thousand and $275 thousand at September 30, 2014 and December 31, 2013, respectively. The Company recognized gains of $14 thousand and $5thousand on the disposition of certain purchased securities during the respective nine-month periods ended September 30, 2014 and 2013.  None of such gains were recognized during the three-month periods ended September 30, 2014 and 2013.

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. During the three and nine months ended September 30, 2014, the Company recorded unrealized losses of $5 thousand and $179 thousand, respectively, on fair valuation of its warrants. There were no unrealized gains or losses recorded during the three and nine months ended September 30, 2013. As of September 30, 2014 and December 31, 2013, the estimated fair value of the Company’s portfolio of warrants amounted to $376 thousand and$555 thousand, respectively. During the nine months ended September 30, 2014, the Company realized gains of $16 thousand on the net exercise of certain warrants. None of such realized gains were related to the third quarter. There werenonet exercises of warrants during the three and nine months ended September 30, 2013.

Per Unit Data

Per Unit data:

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

Recent Accounting Pronouncements

Recent accounting pronouncements:

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company evaluated the impact of the new standard on its financial

statements and has determined that such impact is virtually non-existent as the new revenue guideline does not affect revenues from leases and loans, which comprise the majority of the Company’s revenues.

In August 2014, the FASB issued Accounting Standards Update 2014-15, Presentation of Financial Statements – Going Concern (subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The new standard provides guidance relative to management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. Management is currently evaluating the standard and its operational and related disclosure requirements.