Form 10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

x		Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
		For the quarterly period ended September 30, 2016

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

For the transition period from         to        

Commission File number 000-50210

ATEL Capital Equipment Fund IX, LLC

(Exact name of registrant as specified in its charter)

California		94-3375584
(State or other jurisdiction of Incorporation or organization)		(I. R. S. Employer Identification No.)

The Transamerica Pyramid, 600 Montgomery Street, 9th Floor, San Francisco, California 94111
(Address of principal executive offices)

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

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

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

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

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).Yes x No o

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

Large accelerated filer o     Accelerated filer o     Non-accelerated filer o     Smaller reporting company x

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

The number of Limited Liability Company Units outstanding as of October 31, 2016 was 12,055,016.

DOCUMENTS INCORPORATED BY REFERENCE

None.

ATEL CAPITAL EQUIPMENT FUND IX, LLC

Index

Part I. Financial Information			3
Item 1. Financial Statements (Unaudited)			3
Balance Sheets, September 30, 2016 and December 31, 2015			3
Statements of Income for the three and nine months ended September 30, 2016 and 2015			4
Statements of Changes in Members’ Capital for the year ended December 31, 2015 and for the nine months ended September 30, 2016			5
Statements of Cash Flows for the three and nine months ended September 30, 2016 and 2015			6
Notes to the Financial Statements			7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			18
Item 4. Controls and Procedures			21
Part II. Other Information			22
Item 1. Legal Proceedings			22
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			22
Item 3. Defaults Upon Senior Securities			22
Item 4. Mine Safety Disclosures			22
Item 5. Other Information			22
Item 6. Exhibits			22

2

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited).

ATEL CAPITAL EQUIPMENT FUND IX, LLC
 
BALANCE SHEETS
 
SEPTEMBER 30, 2016 AND DECEMBER 31, 2015
(in thousands)

		September 30, 2016				December 31, 2015
		(Unaudited)
ASSETS
Cash and cash equivalents		$	3,158			$	2,240
Accounts receivable, net			284				533
Prepaid expenses and other assets			73				66
Investment in securities			5				5
Investments in equipment and leases, net			6,446				11,127
Total assets		$	9,966			$	13,971
LIABILITIES AND MEMBERS’ CAPITAL
Accounts payable and accrued liabilities:
Managing Member		$	39			$	4
Other			147				211
Deposits due lessees			4				—
Non-recourse debt			707				3,921
Unearned operating lease income			113				105
Total liabilities			1,010				4,241
Commitments and contingencies
Members’ capital:
Managing Member			—				—
Other Members			8,956				9,730
Total Members’ capital			8,956				9,730
Total liabilities and Members’ capital		$	9,966			$	13,971

See accompanying notes.

3

ATEL CAPITAL EQUIPMENT FUND IX, LLC
 
STATEMENTS OF INCOME
 
FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2016 AND 2015
(in thousands, except for units and per unit data)
(Unaudited)

		Three Months Ended September 30,								Nine Months Ended September 30,
		2016				2015				2016				2015
Revenues:
Leasing and lending activities:
Operating leases		$	644			$	938			$	1,998			$	3,094
Direct financing leases			224				448				892				1,463
Interest on notes receivable			—				5				—				17
Gain on sales of lease assets and early termination of notes receivable			600				263				800				356
Unrealized loss on value adjustment for warrants			—				(30	)			—				(10	)
Gain on sales or dispositions of investment in securities			—				—				1				—
Other revenue			3				36				22				61
Total revenues			1,471				1,660				3,713				4,981
Expenses:
Depreciation of operating lease assets			107				197				332				772
Asset management fees to Managing Member and/or affiliates			49				74				180				233
Cost reimbursements to Managing Member and/or affiliates			104				124				290				419
(Reversal of) provision for credit losses			—				(28	)			2				(7	)
Amortization of initial direct costs			—				2				1				5
Other management fees			7				7				22				20
Interest expense			17				88				106				324
Professional fees			19				24				101				109
Outside services			10				14				53				46
Insurance			14				14				36				39
Marine vessel maintenance and other operating costs			—				—				21				1
Railcar and equipment maintenance			28				25				108				97
Franchise fees and state taxes			12				13				31				56
Storage fees			13				10				36				15
Other			19				33				69				98
Total operating expenses			399				597				1,388				2,227
Other expense, net			(1	)			(2	)			(4	)			(3	)
Net income		$	1,071			$	1,061			$	2,321			$	2,751
Net income:
Managing Member		$	49			$	98			$	232			$	293
Other Members			1,022				963				2,089				2,458
		$	1,071			$	1,061			$	2,321			$	2,751
Net income per Limited Liability Company Unit (Other Members)		$	0.08			$	0.08			$	0.17			$	0.20
Weighted average number of Units outstanding			12,055,016				12,055,016				12,055,016				12,055,016

See accompanying notes.

4

ATEL CAPITAL EQUIPMENT FUND IX, LLC
 
STATEMENTS OF CHANGES IN MEMBERS’ CAPITAL
 
FOR THE YEAR ENDED DECEMBER 31, 2015
AND FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 2016
(in thousands, except for units and per unit data)

		Other Members								Managing Member				Total
		Units				Amount
Balance December 31, 2014			12,055,016			$	11,852			$	—			$	11,852
Distributions to Other Members ($0.40 per Unit)			—				(4,822	)			—				(4,822	)
Distributions to Managing Member			—				—				(391	)			(391	)
Net income			—				2,700				391				3,091
Balance December 31, 2015			12,055,016				9,730				—				9,730
Distributions to Other Members ($0.24 per Unit)			—				(2,863	)			—				(2,863	)
Distributions to Managing Member			—				—				(232	)			(232	)
Net income			—				2,089				232				2,321
Balance September 30, 2016 (Unaudited)			12,055,016			$	8,956			$	—			$	8,956

See accompanying notes.

5

ATEL CAPITAL EQUIPMENT FUND IX, LLC
 
STATEMENTS OF CASH FLOWS
 
FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2016 AND 2015
(in thousands)
(Unaudited)

		Three Months Ended September 30,								Nine Months Ended September 30,
		2016				2015				2016				2015
Operating activities:
Net income		$	1,071			$	1,061			$	2,321			$	2,751
Adjustment to reconcile net income to cash provided by operating activities:
Gain on sales of lease assets and early termination of notes receivable			(600	)			(263	)			(800	)			(356	)
Gain on sales or dispositions of investment in securities			—				—				(1	)			—
Unrealized loss on value adjustment for warrants			—				30				—				10
Depreciation of operating lease assets			107				197				332				772
Amortization of initial direct costs			—				2				1				5
(Reversal of) provision for credit losses			—				(28	)			2				(7	)
Changes in operating assets and liabilities:
Accounts receivable			187				61				247				72
Prepaid expenses and other assets			(17	)			(23	)			(7	)			(17	)
Accounts payable, Managing Member			61				(6	)			35				(128	)
Accounts payable, other			19				3				(64	)			(27	)
Deposits due lessees			4				—				4				—
Unearned operating lease income			(4	)			(39	)			8				(97	)
Net cash provided by operating activities			828				995				2,078				2,978
Investing activities:
Proceeds from sales of lease assets and early termination of notes receivable			2,527				307				2,892				420
Proceeds from sales or dispositions of investment in securities			—				—				1				—
Principal payments received on direct financing leases			698				664				2,256				1,877
Principal payments received on notes receivable			—				36				—				107
Net cash provided by investing activities			3,225				1,007				5,149				2,404
Financing activities:
Repayments of non-recourse debt			(1,089	)			(1,182	)			(3,214	)			(3,580	)
Distributions to Other Members			(603	)			(1,205	)			(2,863	)			(3,616	)
Distributions to Managing Member			(49	)			(98	)			(232	)			(293	)
Net cash used in financing activities			(1,741	)			(2,485	)			(6,309	)			(7,489	)
Net increase (decrease) in cash and cash equivalents			2,312				(483	)			918				(2,107	)
Cash and cash equivalents at beginning of period			846				3,009				2,240				4,633
Cash and cash equivalents at end of period		$	3,158			$	2,526			$	3,158			$	2,526
Supplemental disclosures of cash flow information:
Cash paid during the period for interest		$	23			$	95			$	124			$	344
Cash paid during the period for taxes		$	—			$	—			$	47			$	70

See accompanying notes.

6

ATEL CAPITAL EQUIPMENT FUND IX, LLC
 
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

1. Organization and Limited Liability Company matters:

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

As of January 15, 2003, the offering was terminated. As of that date, the Company had received subscriptions for 12,065,266 Units ($120.7 million). Subsequent to January 15, 2003, Units totaling 10,250 were rescinded or repurchased and funds returned to investors (net of distributions paid and allocated syndication costs, as applicable). As of September 30, 2016, 12,055,016 Units remain issued and outstanding.

On January 1, 2010, the Company commenced liquidation phase activities pursuant to the guidelines of the Operating Agreement. Pursuant to the terms of the Operating Agreement, AFS receives compensation and reimbursements for services rendered on behalf of the Company (See Note 6). The Company is required to maintain reasonable cash reserves for working capital, the repurchase of Units and contingencies. The repurchase of Units is solely at the discretion of AFS.

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, 2015, filed with the Securities and Exchange Commission.

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, 2016 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 impact on the reported financial position or results of operations.

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

In preparing the accompanying unaudited financial statements, the Managing Member has reviewed events that have occurred after September 30, 2016, 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 financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Such estimates primarily relate to the determination of residual values at the end of the lease term and expected future cash flows used for impairment analysis purposes and for determination of the allowance for doubtful accounts and reserve for credit losses on notes receivable.

7

ATEL CAPITAL EQUIPMENT FUND IX, LLC
 
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

2. Summary of significant accounting policies: - (continued)

Segment reporting:

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

The primary geographic regions in which the Company seeks leasing opportunities are North America and Europe. The table below summarizes geographic information relating to the sources, by nation, of the Company’s total revenues for the nine months ended September 30, 2016 and 2015, and long-lived tangible assets as of September 30, 2016 and December 31, 2015 (dollars in thousands):

		Nine Months Ended September 30,
		2016				% of Total				2015				% of Total
Revenue
United States		$	3,685				99	%		$	4,950				99	%
United Kingdom			28				1	%			31				1	%
Total International			28				1	%			31				1	%
Total		$	3,713				100	%		$	4,981				100	%

		As of September 30,								As of December 31,
		2016				% of Total				2015				% of Total
Long-lived assets
United States		$	6,412				99	%		$	11,093				100	%
United Kingdom			34				1	%			34				0	%
Total International			34				1	%			34				0	%
Total		$	6,446				100	%		$	11,127				100	%

Investment in securities:

Purchased securities

Purchased securities are generally not registered for public sale and are carried at cost. Such securities are adjusted to fair value if the fair value is less than the carrying value and such impairment is deemed by the Managing Member to be other than temporary. Factors considered by the Managing Member in determining fair value include, but are not limited to, available financial information, the issuer’s ability to meet its current obligations and indications of the issuer’s subsequent ability to raise capital. There were neither impaired securities at September 30, 2016 and December 31, 2015 nor investment securities sold or disposed of during the three and nine months ended September 30, 2016 and 2015.

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, 2015, the Company recorded unrealized losses of $30 thousand and $10 thousand, respectively, on the fair valuation of its warrant holdings. There were no such unrealized gains or losses during the current year period as all of the Company’s warrant positions had either been exercised or have expired during the first quarter of 2016. Gain realized on the net exercise of warrants was nominal during the current year period. By comparison, there was no exercise of warrants, net or otherwise, during the three and nine months ended September 30, 2015.

8

ATEL CAPITAL EQUIPMENT FUND IX, LLC
 
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

2. Summary of significant accounting policies: - (continued)

Other expense, net:

Other expense, net consisted solely of net gains and losses on foreign exchange transactions.

Per Unit data:

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

Fair value:

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

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

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

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

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

Recent accounting pronouncements:

In August 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2016-15 — Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 addresses specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments in this Update are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. Management is currently evaluating the standard and its impact on operations and financial reporting.

In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments — Credit Losses (Topic 326) (“ASU 2016-13”). The main objective of this Update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this Update replace the incurred loss impairment methodology in current GAAP with a

9

ATEL CAPITAL EQUIPMENT FUND IX, LLC
 
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

2. Summary of significant accounting policies: - (continued)

methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments affect entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018. Management is currently evaluating the standard and its operational and related disclosure requirements.

In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases (Topic 842) (“ASU 2016-02”). The new standard will require lessees to recognize lease assets and lease liabilities arising from operating leases with lease terms greater than 12 months in the statement of financial position. Lessor accounting per ASU 2016-02 is mostly unchanged from the previous lease accounting GAAP. Certain changes were made to the lessor accounting guidance in order to align the lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. Similar to the previous guidance, lessors will classify leases as operating, direct financing, or sales-type. Lessors in operating leases will continue to recognize the underlying asset and recognize income on a straight-line basis. Lessors determine whether a lease is a sale of the underlying asset based on whether the lessee effectively obtains control of the underlying assets. ASU-2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. Management is currently evaluating the standard and its operational and related disclosure requirements.

In January 2016, the FASB issued Accounting Standards Update 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). The new standard provides guidance related to accounting for equity investments and financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, FASB clarified guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale debt securities. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Management is currently evaluating the standard and its operational and related disclosure requirements.

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 (“ASU-2014-15”). 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 does not expect the adoption of ASU 2014-15 to have a material impact on the Company’s financial statements or related disclosures.

In May 2014, the FASB issued Accounting Standards Update 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. On July 9, 2015, the FASB approved the deferral of the effective date of ASU 2014-09 by one year and in August 2015, issued Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date (“ASU 2015-14”). ASU 2015-14 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 31, 2016, including interim reporting periods within that reporting period. The new revenue standard may be applied

10

ATEL CAPITAL EQUIPMENT FUND IX, LLC
 
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

2. Summary of significant accounting policies: - (continued)

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.

3. Notes receivable, net:

The Company has had various notes receivable from borrowers who have financed the purchase of equipment through the Company. The notes were secured by the equipment financed. As of September 30, 2016 and December 31, 2015, the notes have been fully settled.

4. Allowance for credit losses:

The Company’s allowance for credit losses totaled $3 thousand and $1 thousand at September 30, 2016 and December 31, 2015, respectively. All of such allowance was related to delinquent operating lease receivables. The Company had neither financing receivables in non-accrual status nor impaired financing receivables at both September 30, 2016 and December 31, 2015.

5. Investment in equipment and leases, net:

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

		Balance December 31, 2015				Reclassifications, Additions/ Dispositions				Depreciation/ Amortization Expense or Amortization of Leases				Balance September 30, 2016
Net investment in operating leases		$	4,112			$	(170	)		$	(332	)		$	3,610
Net investment in direct financing leases			6,216				(1,827	)			(2,256	)			2,133
Assets held for sale or lease, net			797				(96	)			—				701
Initial direct costs, net of accumulated amortization of $33 at September 30, 2016 and $83 at December 31, 2015			2				1				(1	)			2
Total		$	11,127			$	(2,092	)		$	(2,589	)		$	6,446

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

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, if any. 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.

11

ATEL CAPITAL EQUIPMENT FUND IX, LLC
 
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

5. Investment in equipment and leases, net: - (continued)

As a result of these reviews, management determined that no impairment losses existed during the three and nine months ended September 30, 2016 and 2015.

The Company utilizes a straight line depreciation method for equipment in all of the categories currently in its portfolio of operating lease transactions. Depreciation expense on the Company’s equipment was $107 thousand and $197 thousand for the respective three months ended September 30, 2016 and 2015, and was $332 thousand and $772 thousand for the respective nine months ended September 30, 2016 and 2015. Initial direct costs amortization expense related to the Company’s operating and direct financing leases totaled $2 thousand for the three months ended September 30, 2015, while in comparison, the Company did not reflect initial direct cost amortization during the three months ended September 30, 2016. The Company reflected initial direct cost amortization of $1 thousand and $5 thousand for the respective nine months ended September 30, 2016 and 2015.

All of the leased property was acquired beginning in 2001 through 2010.

Operating leases:

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

		Balance December 31, 2015				Additions				Reclassifications or Dispositions				Balance September 30, 2016
Transportation, rail		$	12,154			$	—			$	(807	)		$	11,347
Marine vessels			9,700				—				—				9,700
Transportation, other			2,011				—				(93	)			1,918
Materials handling			628				—				(97	)			531
Construction			565				—				—				565
Manufacturing			528				—				(173	)			355
Other			16				—				(5	)			11
			25,602				—				(1,175	)			24,427
Less accumulated depreciation			(21,490	)			(332	)			1,005				(20,817	)
Total		$	4,112			$	(332	)		$	(170	)		$	3,610

The average estimated residual value for assets on operating leases was 11% and 12% of the assets’ original cost at September 30, 2016 and December 31, 2015, respectively. There were no operating leases placed in non-accrual status as of the same dates.

The Company may earn revenues from its containers, marine vessel and certain other assets based on utilization of such assets or a fixed-term lease. Contingent rentals (i.e., short-term, operating charter hire payments) and the associated expenses are recorded when earned and/or incurred. The revenues associated with these rentals are included as a component of operating lease revenues and totaled $12 thousand and $20 thousand for the respective three months ended September 30, 2016 and 2015, and $45 thousand and $75 thousand for the respective nine months ended September 30, 2016 and 2015.

12

ATEL CAPITAL EQUIPMENT FUND IX, LLC
 
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

5. Investment in equipment and leases, net: - (continued)

Direct financing leases:

As of September 30, 2016 and December 31, 2015, investment in direct financing leases consists of materials handling and mining equipment. The following lists the components of the Company’s investment in direct financing leases as of September 30, 2016 and December 31, 2015 (in thousands):

		September 30, 2016				December 31, 2015
Total minimum lease payments receivable		$	539			$	3,687
Estimated residual values of leased equipment (unguaranteed)			1,715				3,543
Investment in direct financing leases			2,254				7,230
Less unearned income			(121	)			(1,014	)
Net investment in direct financing leases		$	2,133			$	6,216

There was no investment in direct financing lease assets in non-accrual status at September 30, 2016 and December 31, 2015.

At September 30, 2016, 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, 2016		$	537			$	538			$	1,075
Year ending December 31, 2017			1,857				1				1,858
2018			1,061				—				1,061
2019			875				—				875
2020			486				—				486
2021			82				—				82
		$	4,898			$	539			$	5,437

The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of September 30, 2016, the respective useful lives of each category of lease assets in the Company’s portfolio are as follows (in years):

Equipment category		Useful Life
Transportation, rail			35 – 40
Mining			30 – 40
Marine vessels			20 – 30
Manufacturing			10 – 15
Construction			7 – 10
Materials handling			7 – 10
Transportation, other			7 – 10

6. Related party transactions:

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

The Operating Agreement allows for the reimbursement of costs incurred by AFS for providing administrative services to the Company. Administrative services provided include Company accounting, finance/treasury,

13

ATEL CAPITAL EQUIPMENT FUND IX, LLC
 
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

6. Related party transactions: - (continued)

investor relations, legal counsel and lease and equipment documentation. AFS is not reimbursed for services whereby it is entitled to receive a separate fee as compensation for such services, such as management of equipment. The Company would be liable for certain future costs to be incurred by AFS to manage the administrative services provided to the Company.

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

Cost reimbursements to the Managing Member are based on its costs incurred in performing administrative services for the Company. These costs are allocated to each managed entity based on certain criteria such as managed assets, number of investors or contributed capital based upon the type of cost incurred. The Operating Agreement places an annual limit and a cumulative limit for cost reimbursements to AFS and/or affiliates. Any reimbursable costs incurred by AFS and/or affiliates during the year exceeding the annual and/or cumulative limits cannot be reimbursed in the current year, though such costs may be recovered in future years to the extent of the cumulative limit. As of September 30, 2016, the Company has not exceeded the annual and/or cumulative limitations discussed above.

During the three months and nine months ended September 30, 2016 and 2015, AFS and/or affiliates earned fees and billed for reimbursements of costs and expenses pursuant to the Operating Agreement as follows (in thousands):

		Three Months Ended September 30,								Nine Months Ended September 30,
		2016				2015				2016				2015
Costs reimbursed to Managing Member and/or affiliates		$	104			$	124			$	290			$	419
Asset management fees to Managing Member and/or affiliates			49				74				180				233
		$	153			$	198			$	470			$	652

7. Non-recourse debt:

At September 30, 2016, non-recourse debt consists of a note payable to financial institutions. The note is due in monthly installments. Interest on the note is at a fixed rate of 6.58%. The note is secured by an assignment of lease payments and a pledge of assets. At September 30, 2016, future payments on direct financing lease totaled approximately $538 thousand over the remaining lease terms and the carrying value of the pledged assets is $2.1 million. The note matures in January 2017.

The non-recourse debt does not contain any material financial covenants. The debt is secured by liens granted by the Company to the non-recourse lenders on (and only on) the discounted lease transactions. The lenders have recourse only to the following collateral: the specific leased equipment; the related lease chattel paper; the lease receivables; and proceeds of the foregoing items. The non-recourse obligation is payable solely out of the respective specific security and the Company does not guarantee (nor is the Company otherwise contractually responsible for) the payment of the non-recourse debt as a general obligation or liability of the Company. Although the Company does not have any direct or general liability in connection with the non-recourse debt apart from the security granted, the Company is directly and generally liable and responsible for certain representations, warranties, and covenants made to the lenders, such as warranties as to genuineness of the transaction parties’ signatures, as to the genuineness of the respective lease chattel paper or the transaction as a whole, or as to the Company’s good title to or perfected interest in the secured collateral, as well as similar representations, warranties and covenants typically provided by non-recourse borrowers and customary in the equipment finance industry, and are viewed by such industry as being consistent with

14

ATEL CAPITAL EQUIPMENT FUND IX, LLC
 
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

7. Non-recourse debt: - (continued)

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, 2016		$	529			$	9			$	538
Year ending December 31, 2017			178				1				179
		$	707			$	10			$	717

8. Commitments and Contingencies:

At September 30, 2016, the Company had no commitments to purchase lease assets or fund investments in notes receivable.

9. Members’ capital:

As of September 30, 2016 and December 31, 2015, 12,055,016 Units were issued and outstanding. The Company was authorized to issue up to 15,000,000 Units in addition to the Units issued to the initial Members (50 Units).

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

		Three Months Ended September 30,								Nine Months Ended September 30,
		2016				2015				2016				2015
Distributions declared		$	603			$	1,205			$	2,863			$	3,616
Weighted average number of Units outstanding			12,055,016				12,055,016				12,055,016				12,055,016
Weighted average distributions per Unit		$	0.05			$	0.10			$	0.24			$	0.30

10. Fair value measurements:

The Company had no assets or liabilities requiring measurement at fair value on a recurring or non-recurring basis at September 30, 2016. By comparison, at December 31, 2015, only the Company’s warrants were measured on a recurring basis. During 2015, the Company also recorded non-recurring adjustments to reduce the cost basis of certain equipment deemed impaired. Amounts at December 31, 2015 reflect the fair value of the then existing impaired assets.

The measurement methodologies are as follows:

Warrants (recurring)

Warrants owned by the Company are not registered for public sale, but are considered derivatives and are carried on the balance sheet at an estimated fair value at the end of the period. The Company did not hold any warrant positions at September 30, 2016. The valuation of the warrants at December 31, 2015 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 the same date, the Company’s remaining warrants had no value.

15

ATEL CAPITAL EQUIPMENT FUND IX, LLC
 
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

10. Fair value measurements: - (continued)

The fair value of warrants that were accounted for on a recurring basis as of the three and nine months ended September 30, 2016 and 2015 and classified as level 3 are as follows (in thousands):

		Three Months Ended September 30,								Nine Months Ended September 30,
		2016				2015				2016				2015
Warrants, fair value at beginning of period		$	—			$	145			$	—			$	125
Unrealized loss on value adjustment for warrants			—				(30	)			—				(10	)
Warrants, fair value at end of period		$	—			$	115			$	—			$	115

Impaired off-lease equipment (non-recurring)

The Company had no fair value adjustments relative to impaired equipment during the nine months ended September 30, 2016. During 2015, the Company deemed certain off-lease equipment (assets) to be impaired and recorded fair value adjustments of $132 thousand to reduce the cost bases of the equipment. The aforementioned adjustments were non-recurring and were all recorded subsequent to the third quarter of 2015. Under the Fair Value Measurements Topic of the FASB Accounting Standards Codification, the fair values of such impaired equipment are classified within Level 3 of the valuation hierarchy as the data sources utilized for the valuation of the assets reflect significant inputs that are unobservable in the market. Such valuation utilizes a market approach technique and uses inputs that reflect the sales price of similar assets sold by affiliates and/or information from third party remarketing agents not readily available in the market.

The following table summarizes the valuation techniques and significant unobservable inputs used for the Company’s recurring and non-recurring fair value adjustments categorized as Level 3 in the fair value hierarchy at December 31, 2015:

December 31, 2015
Name		Valuation Frequency		Valuation Technique		Unobservable Inputs		Range of Input Values
Warrants		Recurring		Black-Scholes formulation		Stock price		$2.01
						Exercise price		$2.01
						Time to maturity (in years)		0.04
						Risk-free interest rate		0.14%
						Annualized volatility		100.00%
Off-lease Equipment		Non-recurring		Market Approach		Third Party Agents’ Pricing  Quotes – per equipment		$100,000 (total of $300,000)
						Equipment Condition		Poor to Average

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

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

Cash and cash equivalents

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

16

ATEL CAPITAL EQUIPMENT FUND IX, LLC
 
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

10. Fair value measurements: - (continued)

Investment in securities

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

Non-recourse debt

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

Commitments and Contingencies

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

The following tables present estimated fair values of the Company’s financial instruments in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification at September 30, 2016 and December 31, 2015 (in thousands):

		Fair Value Measurements at September 30, 2016
		Carrying Amount				Level 1				Level 2				Level 3				Total
Financial assets:
Cash and cash equivalents		$	3,158			$	3,158			$	—			$	—			$	3,158
Investment in securities			5				—				—				5				5
Financial liabilities:
Non-recourse debt			707				—				—				712				712

		Fair Value Measurements at December 31, 2015
		Carrying Amount				Level 1				Level 2				Level 3				Total
Financial assets:
Cash and cash equivalents		$	2,240			$	2,240			$	—			$	—			$	2,240
Investment in securities			5				—				—				5				5
Financial liabilities:
Non-recourse debt			3,921				—				—				3,971				3,971

17

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Statements contained in this Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and elsewhere in this Form 10-Q, which are not historical facts, may be forward-looking statements. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. In particular, economic recession and changes in general economic conditions, including, fluctuations in demand for equipment, lease rates, and interest rates, may result in delays in investment and reinvestment, delays in leasing, re-leasing, and disposition of equipment, and reduced returns on invested capital. The Company’s performance is subject to risks relating to lessee defaults and the creditworthiness of its lessees. The Company’s performance is also subject to risks relating to the value of its equipment at the end of its leases, which may be affected by the condition of the equipment, technological obsolescence and the markets for new and used equipment at the end of lease terms. Investors are cautioned not to attribute undue certainty to these forward-looking statements, which speak only as of the date of this Form 10-Q. We undertake no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this Form 10-Q or to reflect the occurrence of unanticipated events, other than as required by law.

Overview

ATEL Capital Equipment Fund IX, LLC (the “Company” or the “Fund”) is a California limited liability company that was formed in September 2000 for the purpose of engaging in the sale of limited liability company investment units and acquiring equipment to generate revenues from equipment leasing, lending and sales activities, primarily in the United States. The Managing Member of the Company is ATEL Financial Services, LLC (“AFS”), a California limited liability company.

Results of Operations

The three months ended September 30, 2016 versus the three months ended September 30, 2015

The Company had net income of $1.1 million for both the three months ended September 30, 2016 and 2015. The results for the third quarter of 2016 reflect decreases in total revenues and total operating expenses when compared to the prior year period.

Revenues

Total revenues for the third quarter of 2016 decreased by $189 thousand or 11%, as compared to the prior year period. The net decline in total revenues was primarily a result of decreases in both operating and direct financing lease revenues, offset, in part, by an increase in the gain on sales of lease assets and early termination of notes receivable.

The reduction in operating lease revenues totaled $294 thousand or 31%, and was mainly due to the impact of continued run-off and sales of lease assets as well as a reduction in usage-based rental income. Direct financing lease revenues decreased by $224 thousand or 50%, largely due to run-off of the portfolio.

The gain on sales of lease assets and early termination of notes receivable increased by $337 thousand or 128%, largely due to a change in the mix of assets sold.

Expenses

Total operating expenses for the third quarter of 2016 decreased by $198 thousand or 33%, as compared to the prior year period. The net decline in operating expenses was primarily due to decreases in depreciation and interest expenses, asset management fees, and cost reimbursements to Manager.

Depreciation expense was reduced by $90 thousand or 46%, largely due to continued run-off and sales of lease assets, and an increase in the number of assets that have been fully depreciated since September 30, 2015. Interest expense declined by $71 thousand or 81%, primarily as a result of a $4.3 million net reduction in outstanding borrowings since September 30, 2015. The asset management fees decreased by $25 thousand or 34%, mainly due to lower revenue received on the Company’s lease assets. Finally, the costs reimbursed to the Manager decreased by $20 thousand or 16%, mainly due to lower costs allocated by the Manager based on the Company’s continued liquidation.

18

The nine months ended September 30, 2016 versus the nine months ended September 30, 2015

The Company had net income of $2.3 million and $2.8 million for the nine months ended September 30, 2016 and 2015, respectively. The results for the nine months ended September 30, 2016 reflect decreases in total revenues and total operating expenses when compared to the prior year period.

Revenues

Total revenues during the nine months ended September 30, 2016 decreased by $1.3 million or 25%, as compared to the prior year period. The net decline in total revenues was primarily a result of decreases in both operating and direct financing lease revenues, offset, in part, by an increase in the gain on sales of lease assets and early termination of notes receivable.

The reduction in operating lease revenues totaled $1.1 million or 35%, and was mainly due to the impact of continued run-off and sales of lease assets as well as a reduction in usage-based rental income. Direct financing lease revenues decreased by $571 thousand, or 39%, largely due to run-off of the portfolio.

The gain on sales of lease assets and early termination of notes receivable increased by $444 thousand or 125%, mainly due to a change in the mix of assets sold.

Expenses

Total operating expenses for the nine months ended September 30, 2016 decreased by $839 thousand or 38%, as compared to the prior year period. The net decline in operating expenses was primarily due to decreases in depreciation interest expenses, and costs reimbursed to the Manager.

Depreciation expense was reduced by $440 thousand or 57%, largely due to continued run-off and sales of lease assets, and an increase in the number of assets that have been depreciated, since September 30, 2015. Interest expense declined by $218 thousand or 67%, primarily as a result of a $4.3 million net reduction in outstanding borrowings since September 30, 2015. The costs reimbursed to the Manager decreased by $129 thousand or 31%, mainly due to lower costs allocated by the Manager based on the Company’s continued liquidation.

Capital Resources and Liquidity

The Company’s cash and cash equivalents totaled $3.2 million and $2.2 million at September 30, 2016 and December 31, 2015, respectively. The liquidity of the Company varies, increasing to the extent cash flows from leases and proceeds of asset sales exceed expenses and decreasing as distributions are made to Members and to the extent expenses exceed cash flows from leases and proceeds from asset sales.

The primary source of liquidity for the Company is its cash flow from leasing activities. As initial lease terms expire, the Company re-leases or sells the equipment. The future liquidity beyond the contractual minimum rentals will depend on the Company’s success in remarketing or selling the equipment as it comes off-rental.

The Company currently believes it has available adequate reserves to meet its immediate cash requirements and those of the next twelve months, but in the event those reserves were found to be inadequate, the Company would likely be in a position to borrow against its current portfolio to meet such requirements. AFS envisions no such requirements for operating purposes.

Cash Flows

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

		Three Months Ended September 30,								Nine Months Ended September 30,
		2016				2015				2016				2015
Net cash provided by (used in):
Operating activities		$	828			$	995			$	2,078			$	2,978
Investing activities			3,225				1,007				5,149				2,404
Financing activities			(1,741	)			(2,485	)			(6,309	)			(7,489	)
Net decrease in cash and cash equivalents		$	2,312			$	(483	)		$	918			$	(2,107	)

19

The three months ended September 30, 2016 versus the three months ended September 30, 2015

During the three months ended September 30, 2016 and 2015, the Company’s primary sources of liquidity were cash flows from its portfolio of operating and direct financing lease contracts. In addition, the Company realized $2.5 million and $307 thousand of proceeds from sales or dispositions of equipment and early termination of notes receivable during the respective three months ended September 30, 2016 and 2015.

During the same respective periods, cash was primarily used to pay distributions to both Other Members and the Managing Member, and to pay down debt. Distributions paid to Members totaled $652 thousand and $1.3 million for the three month periods ended September 30, 2016 and 2015, respectively. Debt repayments totaled $1.1 million and $1.2 million for the three month periods ended September 30, 2016 and 2015, respectively.

The nine months ended September 30, 2016 versus the nine months ended September 30, 2015

During the nine months ended September 30, 2016 and 2015, the Company’s primary sources of liquidity were cash flows from its portfolio of operating and direct financing lease contracts. In addition, the Company realized $2.9 million and $420 thousand of proceeds from sales or dispositions of equipment and early termination of notes receivable during the respective nine months ended September 30, 2016 and 2015.

During the same respective periods, cash was primarily used to pay distributions to both Other Members and the Managing Member, and to pay down debt. Distributions paid to Members totaled $3.1 million and $3.9 million for the nine month periods ended September 30, 2016 and 2015, respectively. Debt repayments totaled $3.2 million and $3.6 million for the nine month periods ended September 30, 2016 and 2015, respectively.

Non-Recourse Long-Term Debt

The Operating Agreement limits aggregate borrowings to 50% of the total cost of equipment. For detailed information on the Company’s non-recourse debt obligation, see Note 7 in Item 1. Financial Statements.

Distributions

Beginning with the month of February 2001, the Company commenced periodic distributions based on cash flows from operations. The monthly distributions were discontinued in 2010 as the Company entered its liquidation phase. The rates and frequency of periodic distributions paid by the Fund during its liquidation phase are solely at the discretion of the Manager.

Commitments and Contingencies and Off-Balance Sheet Transactions

Commitments and Contingencies

At September 30, 2016, the Company had no commitments to purchase lease assets or fund investments in notes receivable.

Off-Balance Sheet Transactions

None.

Recent Accounting Pronouncements

For detailed information on recent accounting pronouncements, see Note 2, Summary of significant accounting policies.

Critical Accounting Policies and Estimates

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America 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. On an on-going

20

basis, the Company evaluates its estimates, which are based upon historical experiences, market trends and financial forecasts, and upon various other assumptions that management believes to be reasonable under the circumstances and at that certain point in time. Actual results may differ, significantly at times, from these estimates under different assumptions or conditions.

The Company’s critical accounting policies are described in its Annual Report on Form 10-K for the year ended December 31, 2015. There have been no material changes to the Company’s critical accounting policies since December 31, 2015.

Item 4. Controls and Procedures.

Evaluation of disclosure controls and procedures

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

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

Changes in internal control

There were no changes in the Managing Member’s internal control over financial reporting, as it is applicable to the Company, during the quarter ended September 30, 2016 that have materially affected, or are reasonably likely to materially affect, the Managing Member’s internal control over financial reporting, as it is applicable to the Company.

21

PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

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

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not Applicable.

Item 5. Other Information.

None.

Item 6. Exhibits.

Documents filed as a part of this report:

All other schedules for which provision is made in the applicable accounting regulations of the Securities and Exchange Commission are not required under the related instructions or are inapplicable, and therefore have been omitted.

31.1		Certification of Dean L. Cash
31.2		Certification of Paritosh K. Choksi
32.1		Certification Pursuant to 18 U.S.C. section 1350 of Dean L. Cash
32.2		Certification Pursuant to 18 U.S.C. section 1350 of Paritosh K. Choksi
101.INS		XBRL Instance Document
101.SCH		XBRL Taxonomy Extension Schema Document
101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB		XBRL Taxonomy Extension Label Linkbase Document
101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF		XBRL Taxonomy Extension Definition Linkbase Document

22

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: November 10, 2016

ATEL CAPITAL EQUIPMENT FUND IX, LLC
(Registrant)

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

23