Attached files
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EX-32.2 - EXHIBIT 32.2 - ATEL Capital Equipment Fund XI, LLC | v477190_exh32x2.htm |
EX-32.1 - EXHIBIT 32.1 - ATEL Capital Equipment Fund XI, LLC | v477190_exh32x1.htm |
EX-31.2 - EXHIBIT 31.2 - ATEL Capital Equipment Fund XI, LLC | v477190_exh31x2.htm |
EX-31.1 - EXHIBIT 31.1 - ATEL Capital Equipment Fund XI, LLC | v477190_exh31x1.htm |
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, 2017
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 000-51858
ATEL Capital Equipment Fund XI, LLC
(Exact name of registrant as specified in its charter)
California (State or other jurisdiction of Incorporation or organization) |
20-1357935 (I. R. S. Employer Identification No.) |
The Transamerica Pyramid, 600 Montgomery Street, 9th Floor, San Francisco, California 94111
(Address of principal executive offices)
Registrants 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
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
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, 2017 was 5,209,307.
DOCUMENTS INCORPORATED BY REFERENCE
None.
ATEL CAPITAL EQUIPMENT FUND XI, LLC
Index
2
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited).
ATEL CAPITAL EQUIPMENT FUND XI, LLC
BALANCE SHEETS
SEPTEMBER 30, 2017 AND DECEMBER 31, 2016
(In Thousands)
September 30, 2017 |
December 31, 2016 |
|||||||
(Unaudited) | ||||||||
ASSETS |
||||||||
Cash and cash equivalents | $ | 412 | $ | 1,932 | ||||
Accounts receivable, net | 165 | 111 | ||||||
Investment in securities | 11 | 22 | ||||||
Investments in equipment and leases, net | 1,716 | 2,004 | ||||||
Prepaid expenses and other assets | 35 | 32 | ||||||
Total assets | $ | 2,339 | $ | 4,101 | ||||
LIABILITIES AND MEMBERS CAPITAL |
||||||||
Accounts payable and accrued liabilities: |
||||||||
Managing Member | $ | 24 | $ | 31 | ||||
Other | 56 | 78 | ||||||
Unearned operating lease income | 142 | 13 | ||||||
Total liabilities | 222 | 122 | ||||||
Commitments and contingencies |
||||||||
Members capital: |
||||||||
Managing Member | | | ||||||
Other Members | 2,117 | 3,979 | ||||||
Total Members capital | 2,117 | 3,979 | ||||||
Total liabilities and Members capital | $ | 2,339 | $ | 4,101 |
See accompanying notes.
3
ATEL CAPITAL EQUIPMENT FUND XI, LLC
STATEMENTS OF INCOME
FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2017 AND 2016
(In Thousands Except for Units and Per Unit Data)
(Unaudited)
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Revenues: |
||||||||||||||||
Leasing and lending activities: |
||||||||||||||||
Operating leases | $ | 252 | $ | 289 | $ | 751 | $ | 907 | ||||||||
Direct financing leases | | | | 2 | ||||||||||||
Gain on sales of lease assets | 14 | 77 | 52 | 366 | ||||||||||||
Unrealized loss on fair value adjustment for warrants | | | | (17 | ) | |||||||||||
Other | 1 | | 4 | 4 | ||||||||||||
Total revenues | 267 | 366 | 807 | 1,262 | ||||||||||||
Expenses: |
||||||||||||||||
Depreciation of operating lease assets | 77 | 95 | 230 | 297 | ||||||||||||
Asset management fees to Managing Member | 8 | 14 | 33 | 63 | ||||||||||||
Cost reimbursements to Managing Member and/or affiliates | 42 | 36 | 141 | 102 | ||||||||||||
Provision for (reversal of) credit losses | 28 | | 36 | (1 | ) | |||||||||||
Provision for losses on investment in securities | 11 | | 11 | 16 | ||||||||||||
Amortization of initial direct costs | 2 | 2 | 6 | 6 | ||||||||||||
Professional fees | 16 | 19 | 117 | 113 | ||||||||||||
Outside services | 15 | 6 | 63 | 31 | ||||||||||||
Taxes on income and franchise fees | 10 | | 23 | | ||||||||||||
Printing and photocopying | 4 | 3 | 11 | 6 | ||||||||||||
Other | 7 | 10 | 24 | 23 | ||||||||||||
Total operating expenses | 220 | 185 | 695 | 656 | ||||||||||||
Other (loss) income, net | | (2 | ) | 2 | (1 | ) | ||||||||||
Net income | $ | 47 | $ | 179 | $ | 114 | $ | 605 | ||||||||
Net income (loss): |
||||||||||||||||
Managing Member | $ | | $ | | $ | 148 | $ | 105 | ||||||||
Other Members | 47 | 179 | (34 | ) | 500 | |||||||||||
$ | 47 | $ | 179 | $ | 114 | $ | 605 | |||||||||
Net income (loss) per Limited Liability Company Unit (Other Members) | $ | 0.01 | $ | 0.03 | $ | (0.01 | ) | $ | 0.10 | |||||||
Weighted average number of Units outstanding | 5,209,307 | 5,209,307 | 5,209,307 | 5,209,307 |
See accompanying notes.
4
ATEL CAPITAL EQUIPMENT FUND XI, LLC
STATEMENTS OF CHANGES IN MEMBERS CAPITAL
FOR THE YEAR ENDED DECEMBER 31, 2016
AND FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2017
(In Thousands Except for Units and Per Unit Data)
Amount | ||||||||||||||||
Units | Other Members |
Managing Member |
Total | |||||||||||||
Balance December 31, 2015 | 5,209,307 | $ | 4,593 | $ | | $ | 4,593 | |||||||||
Distributions to Other Members ($0.25 per Unit) | | (1,303 | ) | | (1,303 | ) | ||||||||||
Distributions to Managing Member | | | (105 | ) | (105 | ) | ||||||||||
Net income | | 689 | 105 | 794 | ||||||||||||
Balance December 31, 2016 | 5,209,307 | 3,979 | | 3,979 | ||||||||||||
Distributions to Other Members ($0.35 per Unit) | | (1,828 | ) | | (1,828 | ) | ||||||||||
Distributions to Managing Member | | | (148 | ) | (148 | ) | ||||||||||
Net (loss) income | | (34 | ) | 148 | 114 | |||||||||||
Balance September 30, 2017 (Unaudited) | 5,209,307 | $ | 2,117 | $ | | $ | 2,117 |
See accompanying notes.
5
ATEL CAPITAL EQUIPMENT FUND XI, LLC
STATEMENTS OF CASH FLOWS
FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2017 AND 2016
(In Thousands)
(Unaudited)
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Operating activities: |
||||||||||||||||
Net income | $ | 47 | $ | 179 | $ | 114 | $ | 605 | ||||||||
Adjustments to reconcile net income to cash provided by operating activities: |
||||||||||||||||
Gain on sales of lease assets | (14 | ) | (77 | ) | (52 | ) | (366 | ) | ||||||||
Depreciation of operating lease assets | 77 | 95 | 230 | 297 | ||||||||||||
Amortization of initial direct costs | 2 | 2 | 6 | 6 | ||||||||||||
Provision for (reversal of) credit losses | 28 | | 36 | (1 | ) | |||||||||||
Provision for losses on investment in securities | 11 | | 11 | 16 | ||||||||||||
Unrealized loss on fair value adjustment for warrants | | | | 17 | ||||||||||||
Changes in operating assets and liabilities: |
||||||||||||||||
Accounts receivable | (78 | ) | (40 | ) | (90 | ) | (4 | ) | ||||||||
Prepaid expenses and other assets | (9 | ) | (9 | ) | (3 | ) | (4 | ) | ||||||||
Accounts payable, Managing Member | (2 | ) | 37 | (7 | ) | 25 | ||||||||||
Accounts payable, other | | 6 | (22 | ) | (15 | ) | ||||||||||
Unearned operating lease income | 128 | 143 | 129 | 149 | ||||||||||||
Net cash provided by operating activities | 190 | 336 | 352 | 725 | ||||||||||||
Investing activities: |
||||||||||||||||
Proceeds from sales of lease assets | 24 | 137 | 104 | 514 | ||||||||||||
Principal payments received on direct financing leases | | 2 | | 8 | ||||||||||||
Net cash provided by investing activities | 24 | 139 | 104 | 522 | ||||||||||||
Financing activities: |
||||||||||||||||
Distributions to Other Members | (521 | ) | (1,303 | ) | (1,828 | ) | (2,606 | ) | ||||||||
Distributions to Managing Member | (42 | ) | (106 | ) | (148 | ) | (211 | ) | ||||||||
Net cash used in financing activities | (563 | ) | (1,409 | ) | (1,976 | ) | (2,817 | ) | ||||||||
Net decrease in cash and cash equivalents | (349 | ) | (934 | ) | (1,520 | ) | (1,570 | ) | ||||||||
Cash and cash equivalents at beginning of period | 761 | 2,496 | 1,932 | 3,132 | ||||||||||||
Cash and cash equivalents at end of period | $ | 412 | $ | 1,562 | $ | 412 | $ | 1,562 | ||||||||
Supplemental disclosures of cash flow information: |
||||||||||||||||
Cash paid during the period for taxes | $ | | $ | | $ | 26 | $ | 21 |
See accompanying notes.
6
ATEL CAPITAL EQUIPMENT FUND XI, LLC
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. Organization and Limited Liability Company matters:
ATEL Capital Equipment Fund XI, LLC (the Company or the Fund) was formed under the laws of the State of California on June 25, 2004. The Company was formed for the purpose of acquiring equipment to engage in equipment leasing, lending and sales activities. Also, from time to time, the Company may purchase securities of its borrowers or receive warrants to purchase securities in connection with its lending arrangements. The Managing Member or Manager of the Company is ATEL Financial Services, LLC (AFS), a California limited liability company. The Company may continue until December 31, 2025. Each Members personal liability for obligations of the Company generally will be limited to the amount of their respective contributions and rights to undistributed profits and assets of the Company.
As of July 13, 2005, the Company had received subscriptions for 958,274 Units ($9.6 million), thus exceeding the $7.5 million minimum requirement for Pennsylvania, and AFS requested that the remaining funds in escrow (from Pennsylvania investors) be released to the Company. The Company terminated sales of Units effective April 30, 2006. Life-to-date net contributions through September 30, 2017 totaled $52.2 million, consisting of approximately $52.8 million in gross contributions from Other Members purchasing Units under the public offering less rescissions and repurchases (net of distributions paid and allocated syndication costs, as applicable) of $636 thousand. As of September 30, 2017, 5,209,307 Units were issued and outstanding.
The Company is governed by its Limited Liability Company Operating Agreement (Operating Agreement), as amended. On January 1, 2013, the Company commenced liquidation phase activities pursuant to the guidelines of the Operating Agreement. Pursuant to the terms of the Operating Agreement, AFS and its affiliates receives compensation for services rendered and reimbursements for costs incurred on behalf of the Company (See Note 4). The Company is required to maintain reasonable cash reserves for working capital, the repurchase of Units and contingencies. The repurchase of Units is solely at the discretion of AFS.
The Companys 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, 2016, 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, 2017 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 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 Company has reviewed, as determined necessary by the Managing Member, events that have occurred after September 30, 2017 up until the issuance of the financial statements. No events were noted which would require additional disclosure in the footnotes to the financial statements, or adjustments thereto.
7
ATEL CAPITAL EQUIPMENT FUND XI, LLC
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
2. Summary of significant accounting policies: - (continued)
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.
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 Companys total revenues for the nine months ended September 30, 2017 and 2016 and long-lived assets as of September 30, 2017 and December 31, 2016 (dollars in thousands):
For The Nine Months Ended September 30, | ||||||||||||||||
2017 | % of Total | 2016 | % of Total | |||||||||||||
Revenue |
||||||||||||||||
United States | $ | 807 | 100 | % | $ | 1,248 | 99 | % | ||||||||
United Kingdom | | 0 | % | 14 | 1 | % | ||||||||||
Total | $ | 807 | 100 | % | $ | 1,262 | 100 | % |
As of September 30, | As of December 31, | |||||||||||||||
2017 | % of Total | 2016 | % of Total | |||||||||||||
Long-lived assets |
||||||||||||||||
United States | $ | 1,716 | 100 | % | $ | 2,002 | 100 | % | ||||||||
United Kingdom | | 0 | % | 2 | 0 | % | ||||||||||
Total | $ | 1,716 | 100 | % | $ | 2,004 | 100 | % |
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 managements 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
8
ATEL CAPITAL EQUIPMENT FUND XI, LLC
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
2. Summary of significant accounting policies: - (continued)
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.
Investment in securities:
From time to time, the Company may purchase securities of its borrowers or receive warrants to purchase securities in connection with its lending arrangements.
Purchased securities
Purchased securities are generally not registered for public sale and are carried at cost. Such securities are adjusted to fair value if the fair value is less than the carrying value and such impairment is deemed by the Managing Member to be other than temporary. Factors considered by the Managing Member in determining fair value include, but are not limited to, available financial information, the issuers ability to meet its current obligations and indications of the issuers subsequent ability to raise capital. Based upon the Companys review of its portfolio, fair value adjustments of $11 thousand and $0 were recorded during the three months ended September 30, 2017 and 2016, respectively, and fair value adjustments of $11 thousand and $16 thousand were recorded during the nine months ended September 30, 2017 and 2016, respectively, to reduce the cost basis of an impaired investment security to zero. There were no sales or dispositions of investments in securities during the three and nine months ended September 30, 2017 and 2016.
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 nine months ended September 30, 2017 and 2016, the Company recorded unrealized losses of $0 and $17 thousand, respectively, to adjust its warrants to fair value. As of September 30, 2017 and December 31, 2016, the Company had no portfolio of warrants. There were no exercises of warrants, net or otherwise, during the nine months ended September 30, 2017 and 2016.
Foreign currency transactions:
Foreign currency transaction gains and losses are reported in the results of operations as other income or other loss in the period in which they occur.
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.
9
ATEL CAPITAL EQUIPMENT FUND XI, LLC
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
2. Summary of significant accounting policies: - (continued)
Level 3 Valuation is modeled using significant inputs that are unobservable in the market. These unobservable inputs reflect the Companys own estimates of assumptions that market participants would use in pricing the asset or liability.
The Companys 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 Companys 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 Companys investments in equipment, 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. The adoption of ASU 2016-15 by the Company is not expected to have a material effect on its financial statements.
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 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 expects the Update may potentially result in an increase in the allowance for credit losses given the change to estimated losses over the contractual life adjusted for expected prepayments.
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,
10
ATEL CAPITAL EQUIPMENT FUND XI, LLC
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
2. Summary of significant accounting policies: - (continued)
including interim periods within those fiscal years. While early adoption is permitted, the Company does not expect to elect that option. The Company expects to adopt the guidance in the first quarter 2019 using the modified retrospective method. Management is currently evaluating the impact of this standard on the financial statements and its operational and related disclosure requirements, including the impact on the Companys current lease portfolio from a lessor perspective. Given the limited changes to lessor accounting, the Company does not expect material changes to recognition or measurement, but we are early in the implementation process and will continue to evaluate the impact. This adoption will primarily result in an increase in the assets and liabilities on the Companys balance sheet.
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. ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, and (v) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. 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. The Companys implementation efforts include the identification of equity securities within the scope of the guidance, the evaluation of the measurement alternative available for equity securities without a readily determinable fair value, and the related impact to accounting policies, presentation and 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 retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Company expects to adopt the Standards Update. A preliminary evaluation of the impact of such adoption on the financial statements of the Fund indicates 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 Companys revenues. Management expects that accounting policies will not materially change since the principles of revenue recognition from the standard are largely consistent with existing guidance and current practices applied by the Company.
11
ATEL CAPITAL EQUIPMENT FUND XI, LLC
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
3. Investment in equipment and leases, net:
The Companys investment in leases consists of the following (in thousands):
Balance December 31, 2016 |
Reclassifications, Additions/ Dispositions |
Depreciation/ Amortization Expense or Amortization of Leases |
Balance September 30, 2017 |
|||||||||||||
Net investment in operating leases | $ | 1,996 | $ | (51 | ) | $ | (230 | ) | $ | 1,715 | ||||||
Assets held for sale or lease, net | 1 | (1 | ) | | | |||||||||||
Initial direct costs, net of accumulated amortization of $2 at September 30, 2017 and $36 at December 31, 2016 | 7 | | (6 | ) | 1 | |||||||||||
Total | $ | 2,004 | $ | (52 | ) | $ | (236 | ) | $ | 1,716 |
Impairment of investments in leases and assets held for sale or lease:
Recorded values of the Companys 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 assets 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. As a result of these reviews, management determined that no impairment losses existed during the three and nine months ended September 30, 2017 and 2016.
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 Companys equipment totaled $77 thousand and $95 thousand for the respective three months ended September 30, 2017 and 2016, and totaled $230 thousand and $297 thousand for the respective nine months ended September 30, 2017 and 2016.
Initial direct costs amortization expense related to the Companys operating and direct financing leases amounted to $2 thousand each for the respective three months ended September 30, 2017 and 2016, and $6 thousand each for the respective nine months ended September 30, 2017 and 2016.
All of the leased property was acquired during the years 2005 through 2011.
12
ATEL CAPITAL EQUIPMENT FUND XI, LLC
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
3. Investment in equipment and leases, net: - (continued)
Operating leases:
Property on operating leases consists of the following (in thousands):
Balance December 31, 2016 |
Additions | Reclassifications or Dispositions |
Balance September 30, 2017 |
|||||||||||||
Transportation, rail | $ | 8,499 | $ | | $ | (428 | ) | $ | 8,071 | |||||||
Aviation | 1,658 | | | 1,658 | ||||||||||||
Marine vessels | 1,415 | | | 1,415 | ||||||||||||
Transportation, other | 1,349 | | (126 | ) | 1,223 | |||||||||||
Materials handling | 156 | | (129 | ) | 27 | |||||||||||
Manufacturing | 10 | | | 10 | ||||||||||||
13,087 | | (683 | ) | 12,404 | ||||||||||||
Less accumulated depreciation | (11,091 | ) | (230 | ) | 632 | (10,689 | ) | |||||||||
Total | $ | 1,996 | $ | (230 | ) | $ | (51 | ) | $ | 1,715 |
The average estimated residual value for assets on operating leases was 8% of the assets original cost at both September 30, 2017 and December 31, 2016. There were no operating lease contracts placed in non-accrual status at September 30, 2017 and December 31, 2016.
At September 30, 2017, the aggregate amounts of future minimum lease payments to be received are as follows (in thousands):
Operating Leases |
||||
Three months ending December 31, 2017 | $ | 279 | ||
Year ending December 31, 2018 | 418 | |||
2019 | 312 | |||
2020 | 258 | |||
2021 | 76 | |||
$ | 1,343 |
The useful lives for each category of leases is reviewed at a minimum of once per quarter. As of September 30, 2017, the respective useful lives of each category of lease assets in the Companys portfolio are as follows (in years):
Equipment category | Useful Life | |||
Transportation, rail | 35 40 | |||
Marine vessels | 20 30 | |||
Aviation | 15 20 | |||
Manufacturing | 10 15 | |||
Materials handling | 7 10 | |||
Transportation, other | 7 10 |
4. Allowance for credit losses:
The Companys allowance for credit losses totaled $36 thousand and $1 thousand at September 30, 2017 and December 31, 2016, respectively. All of such allowance was related to delinquent operating lease receivables.
13
ATEL CAPITAL EQUIPMENT FUND XI, LLC
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
5. Related party transactions:
The terms of the Operating Agreement provide that AFS and/or affiliates are entitled to receive certain fees for equipment management and resale, and for management of the Company.
The Operating Agreement allows for the reimbursement of costs incurred by AFS in providing administrative services to the Company. Administrative services provided include Company accounting, finance/treasury, investor relations, legal counsel and lease and equipment documentation. AFS is not reimbursed for services whereby it is entitled to receive a separate fee as compensation for such services, such as management of equipment.
Each of ATEL Leasing Corporation (ALC) and AFS is a wholly-owned subsidiary of ATEL Capital Group and performs services for the Company. Acquisition services, equipment management, lease administration and asset disposition services are performed by ALC; and investor relations, communications services and general administrative services are performed by AFS.
Cost reimbursements to the Managing Member are based on its costs incurred in performing administrative services for the Company. These costs are allocated to each managed entity based on certain criteria such as managed assets, number of investors or contributed capital based upon the type of cost incurred.
The Operating Agreement places an annual limit and a cumulative limit for cost reimbursements to AFS and/or affiliates. Any reimbursable costs incurred by AFS and/or affiliates during the year exceeding the annual and/or cumulative limits cannot be reimbursed in the current year, though such costs may be reimbursable in future years to the extent of the cumulative limit. As of September 30, 2017, the Company has not exceeded the annual and/or cumulative limitations discussed above.
AFS and/or affiliates earned fees and billed for reimbursements of costs and expenses pursuant to the Operating Agreement as follows during the three and nine months ended September 30, 2017 and 2016 (in thousands):
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Costs reimbursed to Managing Member and/or affiliates | $ | 42 | $ | 36 | $ | 141 | $ | 102 | ||||||||
Asset management fees to Managing Member | 8 | 14 | 33 | 63 | ||||||||||||
$ | 50 | $ | 50 | $ | 174 | $ | 165 |
6. Commitments:
At September 30, 2017, the Company had no commitments to either purchase lease assets or fund loans.
7. Members capital:
A total of 5,209,307 Units were issued and outstanding as of September 30, 2017 and December 31, 2016. The Fund was authorized to issue up to 15,000,000 Units in addition to the Units issued to the initial members (50 Units). The Company terminated the sales of Units effective April 30, 2006.
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, |
|||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Distributions | $ | | $ | | $ | 1,828 | $ | 1,303 | ||||||||
Weighted average number of Units outstanding | 5,209,307 | 5,209,307 | 5,209,307 | 5,209,307 | ||||||||||||
Weighted average distributions per Unit | $ | | $ | | $ | 0.35 | $ | 0.25 |
14
ATEL CAPITAL EQUIPMENT FUND XI, LLC
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
7. Members capital: - (continued)
The regular monthly distributions were discontinued in 2013 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.
8. Fair value measurements:
At September 30, 2017 and December 31, 2016, only the Companys warrants were measured on a recurring basis and the calculated fair value of the Companys warrant portfolio was $0 at both September 30, 2017 and December 31, 2016. In addition, certain investment securities deemed impaired were measured at fair value on a non-recurring basis as of September 30, 2017 and December 31, 2016.
Such fair value adjustments utilized the following methodology:
Impaired investment securities (non-recurring)
The Companys investment securities are not registered for public sale and are carried at cost. The investment securities are adjusted for impairment, if any, based upon factors which include, but are not limited to, available financial information, the issuers ability to meet its current obligations and indications of the issuers subsequent ability to raise capital.
During the three months ended September 30, 2017 and 2016, the Company recorded non-recurring fair value adjustments of $11 thousand and $0, respectively, and during the nine months ended September 30, 2017 and 2016, the Company recorded $11 thousand and $16 thousand, respectively, to the Companys investment in securities to reduce the cost basis of an impaired investment security to zero. The reduction in value was based on a market approach technique and uses inputs that reflect qualitative and quantitative information provided by the management of the investee.
Under the Fair Value Measurements Topic of the FASB Accounting Standards Codification, the fair value of the aforementioned impaired investment securities were classified within Level 3 of the valuation hierarchy.
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 Companys financial instruments, are made solely to comply with the requirements of the Financial Instruments Topic and should be read in conjunction with the Companys 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 Companys cash and cash equivalents approximate fair value because of the liquidity and short-term maturity of these instruments.
Contingencies
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.
15
ATEL CAPITAL EQUIPMENT FUND XI, LLC
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
8. Fair value measurements: - (continued)
The following tables present estimated fair values of the Companys financial instruments in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification at September 30, 2017 and December 31, 2016 (in thousands):
Fair Value Measurements at September 30, 2017 | ||||||||||||||||||||
Carrying Value |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Financial assets: |
||||||||||||||||||||
Cash and cash equivalents | $ | 412 | $ | 412 | $ | | $ | | $ | 412 | ||||||||||
Investment in securities | 11 | | | 11 | 11 |
Fair Value Measurements at December 31, 2016 | ||||||||||||||||||||
Carrying Value |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Financial assets: |
||||||||||||||||||||
Cash and cash equivalents | $ | 1,932 | $ | 1,932 | $ | | $ | | $ | 1,932 | ||||||||||
Investment in securities | 22 | | | 22 | 22 |
16
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.
Statements contained in this Item 2, Managements 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 Companys performance is subject to risks relating to lessee and borrower defaults and the creditworthiness of its lessees and borrowers. The Companys 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 market 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 XI, LLC (the Company or the Fund) is a California limited liability company that was formed in June 2004 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 Company may continue until December 31, 2025. However, pursuant to the guidelines of the Limited Liability Company Operating Agreement (Operating Agreement), the Company commenced liquidation phase activities subsequent to the end of the Reinvestment Period which ended on December 31, 2012. Periodic distributions are paid at the discretion of the Managing Member.
Results of Operations
The three months ended September 30, 2017 versus the three months ended September 30, 2016
The Company had net income of $47 thousand and $179 thousand for the respective three months ended September 30, 2017 and 2016. The results for the third quarter of 2017 reflects a decrease in total revenues and an increase in total operating expenses when compared to the prior year period.
Revenues
Total revenues for the third quarter of 2017 decreased by $99 thousand, or 27%, as compared to the prior year period. Such decrease was largely attributable to a decrease in the gain on sales of lease assets totaling $63 thousand, or 82%, primarily due to lower volume and a change in the mix of assets sold; and a $37 thousand, or 13%, decrease in operating lease revenue, primarily a result of continued run-off of the portfolio of lease assets.
Expenses
Total operating expenses for the third quarter of 2017 increased by $35 thousand, or 19%, as compared to the prior year period. Such net increase was primarily due to a $28 thousand, or 100%, increase in the provision for credit losses, relating to loss estimate from certain customers; an $11 thousand, or 100%, increase in the provision for losses on investment in securities, due to the fair value adjustment to reduce the cost basis of an impaired investment security; a $10 thousand, or 100%, increase in taxes on income and franchise fees, due to year over year differences in estimated tax liability related to prior year tax payment; and a $9 thousand, or 1.5 times, increase in expenditures for outside services, indicative of additional efforts required to comply with certain regulatory requirements, offset in part by, an $18 thousand, or 19%, decrease in depreciation expense, the result of continuing run-off of the portfolio of lease assets; and a $6 thousand, or 43%, decline in asset management fees to Managing Member, directly attributable to a reduced level of assets under management and associated operating lease revenues.
17
The nine months ended September 30, 2017 versus the nine months ended September 30, 2016
The Company had net income of $114 thousand and $605 thousand for the nine months ended September 30, 2017 and 2016, respectively. The results for the third quarter of 2017 reflects a decrease in total revenues and an increase in total operating expenses when compared to the prior year period.
Revenues
Total revenues for the nine months ended September 30, 2017 decreased by $455 thousand, or 36%, as compared to the prior year period. Such decrease was largely due to a $314 thousand, or 86%, reduction in gain on sales of lease assets primarily due to lower volume and a change in the mix of assets sold; and a $156 thousand, or 17%, decrease in operating lease revenues primarily a result of continued portfolio run-off and sales of lease assets, offset in part, by an increase in the fair value adjustment for warrants of $17 thousand, or 100%.
Expenses
Total operating expenses for the nine months ended September 30, 2017 increased by $39 thousand, or 6%, as compared to the prior year period. Such increase was primarily due to a $39 thousand, or 38%, increase in costs reimbursed to AFS and/or affiliates, due to higher indirect costs allocated by the Manager, a result of refinement of cost allocation methodology; a $37 thousand increase in the provision for credit losses, relating to loss estimate from certain customers; a $32 thousand, or 103%, increase in expenditures for outside services, indicative of additional efforts required to comply with certain regulatory requirements; a $23 thousand, or 100%, increase in taxes on income and franchise fees, due to year over year differences in estimated tax liability related to prior year tax payment; and a $5 thousand, or 83%, increase in printing and photocopying expenses for investor related services, offset in part, by a $67 thousand, or 23%, decrease in period over period depreciation expense, the result of continuing run-off of the portfolio of lease assets; and a $30 thousand, or 48%, decrease in asset management fees, associated with a continued decline in the portfolio of managed assets, and the related lease revenue.
Capital Resources and Liquidity
At September 30, 2017 and December 31, 2016, the Companys cash and cash equivalents totaled $412 thousand and $1.9 million, 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 the 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 the lease terms expire, the Company will re-lease or sell the equipment. The future liquidity beyond the contractual minimum rentals will depend on AFSs 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, |
|||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Net cash provided by (used in): |
||||||||||||||||
Operating activities | $ | 190 | $ | 336 | $ | 352 | $ | 725 | ||||||||
Investing activities | 24 | 139 | 104 | 522 | ||||||||||||
Financing activities | (563 | ) | (1,409 | ) | (1,976 | ) | (2,817 | ) | ||||||||
Net decrease in cash and cash equivalents | $ | (349 | ) | $ | (934 | ) | $ | (1,520 | ) | $ | (1,570 | ) |
18
The three months ended September 30, 2017 versus the three months ended September 30, 2016
During the respective three month periods ended September 30, 2017 and 2016, the Companys primary source of liquidity was cash flow from its portfolio of operating lease contracts. In addition, the Company realized $24 thousand and $137 thousand from the sale or disposition of equipment during the respective three months ended September 30, 2017 and 2016.
During the same respective periods, $563 thousand and $1.4 million cash distributions were made to the Other Members and Managing Members for each period.
The nine months ended September 30, 2017 versus the nine months ended September 30, 2016
During the nine months ended September 30, 2017 and 2016, the Companys primary source of liquidity has been cash flows from its portfolio of operating lease contracts. In addition, the Fund realized $104 thousand and $514 thousand of proceeds from sales of equipment during the respective nine months ended September 30, 2017 and 2016.
During the same respective periods, $2.0 million and $2.8 million cash distributions were made to the Other Members and Managing Members for each period.
Commitments and Contingencies and Off-Balance Sheet Transactions
Commitments and Contingencies
At September 30, 2017, the Company had no commitments to purchase lease assets or fund loans.
Off-Balance Sheet Transactions
None.
Recent Accounting Pronouncements
For information on recent accounting pronouncements, see Note 2 Summary of Significant Accounting Policies.
Significant 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 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 Companys significant accounting policies are described in its Annual Report on Form 10-K for the year ended December 31, 2016. There have been no material changes to the Companys significant accounting policies since December 31, 2016.
Item 4. Controls and Procedures.
Evaluation of disclosure controls and procedures
The Companys Managing Members President and Chief Executive Officer, and Executive Vice President and Chief Financial Officer and Chief Operating Officer (Management), evaluated the effectiveness of the Companys 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 Companys 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.
19
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 Members 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 Commissions 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 issuers 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 Members internal control over financial reporting, as it is applicable to the Company, during the quarter ended September 30, 2017 that have materially affected, or are reasonably likely to materially affect, the Managing Members internal control over financial reporting, as it is applicable to the Company.
20
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 Companys financial position or results of operations.
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:
1. | Financial Statement Schedules |
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 not applicable, and therefore have been omitted.
2. | Other Exhibits |
31.1 | Rule 13a-14(a)/15d-14(a) Certification of Dean L. Cash | |
31.2 | Rule 13a-14(a)/15d-14(a) 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 |
21
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 9, 2017
ATEL CAPITAL EQUIPMENT FUND XI, LLC
(Registrant)
By: ATEL Financial Services, LLC |
By: /s/ Dean L. Cash | ||
By: /s/ Paritosh K. Choksi | ||
By: /s/ Samuel Schussler |
22