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 000-54356

ATEL 14, LLC

(Exact name of registrant as specified in its charter)

California		26-4695354
(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
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 8,271,094.

DOCUMENTS INCORPORATED BY REFERENCE

None.

ATEL 14, LLC
 
Index

Part I. Financial Information			3
Item 1. Financial Statements (Unaudited)			3
Balance Sheets, September 30, 2017 and December 31, 2016			3
Statements of Income for the three and nine months ended September 30, 2017 and 2016			4
Statements of Changes in Members’ Capital for the year ended December 31, 2016 and for the nine months ended September 30, 2017			5
Statements of Cash Flows for the three and nine months ended September 30, 2017 and 2016			6
Notes to the Financial Statements			7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			26
Item 4. Controls and Procedures			31
Part II. Other Information			32
Item 1. Legal Proceedings			32
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			32
Item 3. Defaults Upon Senior Securities			32
Item 4. Mine Safety Disclosures			32
Item 5. Other Information			32
Item 6. Exhibits			32

2

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited).

ATEL 14, LLC
 
BALANCE SHEETS
 
SEPTEMBER 30, 2017 AND DECEMBER 31, 2016

(In Thousands)

		September 30, 2017				December 31, 2016
		(Unaudited)
ASSETS
Cash and cash equivalents		$	734			$	4,639
Accounts receivable, net			140				428
Notes receivable, net			—				17
Investment in securities			121				121
Warrants, fair value			245				247
Investments in equipment and leases, net			24,352				28,488
Prepaid expenses and other assets			107				98
Total assets		$	25,699			$	34,038
LIABILITIES AND MEMBERS’ CAPITAL
Accounts payable and accrued liabilities:
Managing Member		$	79			$	168
Affiliates			65				42
Accrued distributions to Other Members			797				803
Other			641				522
Non-recourse debt			5,125				8,161
Senior long-term debt			2,068				2,068
Unearned operating lease income			123				161
Total liabilities			8,898				11,925
Commitments and contingencies
Members’ capital:
Managing Member			—				—
Other Members			16,801				22,113
Total Members’ capital			16,801				22,113
Total liabilities and Members’ capital		$	25,699			$	34,038

See accompanying notes.

3

ATEL 14, 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		$	1,777			$	2,152			$	5,522			$	6,940
Direct financing leases			3				4				10				15
Interest on notes receivable			—				—				—				13
Gain on sales of lease assets and early termination of notes receivable			182				27				378				273
Gain on sales or dispositions of investment in securities			—				61				—				61
Unrealized (loss) gain on fair value adjustment for warrants			(1	)			1				(2	)			4
Other			2				4				77				12
Total revenues			1,963				2,249				5,985				7,318
Expenses:
Depreciation of operating lease assets			1,020				1,381				3,184				4,352
Asset management fees to Managing Member			94				89				273				340
Cost reimbursements to Managing Member and/or affiliates			178				216				587				634
(Reversal of) provision for credit losses			(11	)			60				(61	)			70
Impairment losses on equipment			—				—				21				50
Amortization of initial direct costs			4				5				13				18
Interest expense			58				84				193				270
Professional fees			15				31				141				144
Outside services			23				14				91				60
Taxes on income and franchise fees			56				6				191				20
Bank charges			27				42				93				97
Railcar maintenance			48				50				278				260
Other			58				62				152				127
Total expenses			1,570				2,040				5,156				6,442
Net income		$	393			$	209			$	829			$	876
Net income:
Managing Member		$	150			$	151			$	451			$	456
Other Members			243				58				378				420
		$	393			$	209			$	829			$	876
Net income per Limited Liability Company Unit (Other Members)		$	0.03			$	0.01			$	0.05			$	0.05
Weighted average number of Units outstanding			8,281,477				8,350,658				8,295,717				8,359,961

See accompanying notes.

4

ATEL 14, 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			8,367,055			$	27,722				—			$	27,722
Repurchase of Units			(50,393	)			(151	)			—				(151	)
Distributions to Other Members ($0.90 per Unit)			—				(7,497	)			—				(7,497	)
Distributions to Managing Member			—				—				(608	)			(608	)
Net income			—				2,039				608				2,647
Balance December 31, 2016			8,316,662				22,113				—				22,113
Repurchase of Units			(45,568	)			(124	)			—				(124	)
Distributions to Other Members ($0.67 per Unit)			—				(5,566	)			—				(5,566	)
Distributions to Managing Member			—				—				(451	)			(451	)
Net income			—				378				451				829
Balance September 30, 2017 (Unaudited)			8,271,094			$	16,801			$	—			$	16,801

See accompanying notes.

5

ATEL 14, 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		$	393			$	209			$	829			$	876
Adjustment to reconcile net income to cash provided by operating activities:
Gain on sales of lease assets and early termination of notes receivable			(182	)			(27	)			(378	)			(273	)
Depreciation of operating lease assets			1,020				1,381				3,184				4,352
Amortization of initial direct costs			4				5				13				18
(Reversal of) provision for credit losses			(11	)			60				(61	)			70
Impairment losses on equipment			—				—				21				50
Gain on sales or dispositions of investment in securities			—				(61	)			—				(61	)
Unrealized loss (gain) on fair value adjustment for warrants			1				(1	)			2				(4	)
Changes in operating assets and liabilities:
Accounts receivable			(84	)			(96	)			313				(35	)
Prepaid expenses and other assets			(5	)			(16	)			(9	)			(8	)
Accounts payable, Managing Member			12				(3	)			(89	)			(11	)
Accounts payable, other			84				139				119				165
Accrued liabilities, affiliates			13				116				23				68
Unearned operating lease income			(54	)			(44	)			(38	)			(111	)
Net cash provided by operating activities			1,191				1,662				3,929				5,096
Investing activities:
Proceeds from sales of lease assets and early termination of notes receivable			528				112				1,287				1,426
Principal payments received on direct financing leases			3				2				9				25
Proceeds from sales or dispositions of investment in securities			—				98				—				98
Principal payments received on notes receivable			17				152				53				371
Net cash provided by investing activities			548				364				1,349				1,920
Financing activities:
Repayments under non-recourse debt			(1,010	)			(1,028	)			(3,036	)			(3,130	)
Distributions to Other Members			(1,849	)			(1,877	)			(5,572	)			(5,636	)
Distributions to Managing Member			(150	)			(151	)			(451	)			(456	)
Repurchase of Units			(52	)			(55	)			(124	)			(70	)
Net cash used in financing activities			(3,061	)			(3,111	)			(9,183	)			(9,292	)
Net decrease in cash and cash equivalents			(1,322	)			(1,085	)			(3,905	)			(2,276	)
Cash and cash equivalents at beginning of period			2,056				1,626				4,639				2,817
Cash and cash equivalents at end of period		$	734			$	541			$	734			$	541
Supplemental disclosures of cash flow information:
Cash paid during the period for interest		$	38			$	64			$	134			$	212
Cash paid during the period for taxes		$	3			$	—			$	136			$	44
Schedule of non-cash transactions:
Distributions payable to Other Members at period-end		$	797			$	808			$	797			$	808
Distributions payable to Managing Member at period-end		$	65			$	66			$	65			$	66

See accompanying notes.

6

ATEL 14, LLC
 
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

1. Organization and Limited Liability Company matters:

ATEL 14, LLC (the “Company” or the “Fund”) was formed under the laws of the state of California on April 1, 2009 (“Date of Inception”) for the purpose of equipment financing and acquiring equipment to engage in equipment leasing and sales activities. The Managing Member of the Company is ATEL Managing Member, LLC (the “Managing Member” or “Manager”), a Nevada limited liability company. Prior to May 9, 2011, the Manager was named ATEL Associates 14, LLC. The Managing Member is controlled by ATEL Financial Services, LLC (“AFS”), a wholly-owned subsidiary of ATEL Capital Group. The Fund may continue until December 31, 2030. Contributions in the amount of $500 were received as of May 8, 2009, which represented the initial member’s capital investment. As a limited liability company, the liability of any individual member for the obligations of the Fund is limited to the extent of capital contributions to the Fund by the individual member.

As of September 30, 2017, cumulative gross contributions, less rescissions and repurchases (net of distributions paid and allocated syndication costs, as applicable), totaling $83.6 million (inclusive of the $500 initial Member’s capital investment) have been received. As of the same date, 8,271,094 Units were issued and outstanding.

The Company is governed by the ATEL 14, LLC amended and restated limited liability company operating agreement dated October 7, 2009 (the “Operating Agreement”). Pursuant to the terms of the Operating Agreement, the Managing Member and/or its affiliates receives compensation for services rendered and reimbursements for costs incurred on behalf of the Company (See Note 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 the Managing Member.

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, 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 Managing Member 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 14, 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 and reserve for credit losses on notes receivable.

Segment reporting:

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

The primary geographic region in which the Company seeks leasing opportunities is North America. For the three and nine months ended September 30, 2017 and 2016, and as of September 30, 2017 and December 31, 2016, all of the Company’s operating revenues and long-lived assets relate to customers domiciled in the United States.

Accounts receivable

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

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

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

Financing receivables

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

Notes are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and/or interest when due according to the contractual terms of the note agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest when due. If it is determined that a loan is impaired with regard to scheduled payments, the Company will perform an analysis of the note to determine if an impairment valuation reserve is necessary. This analysis

8

ATEL 14, LLC
 
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

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

considers the estimated cash flows from the note, or the collateral value of the property underlying the note when note repayment is collateral dependent. Any required valuation reserve is charged to earnings when determined; and notes are charged off to the allowance as they are deemed uncollectible.

The asset underlying a direct financing lease contract is considered impaired if the estimated undiscounted future cash flows of the asset are less than its net book value. The estimated undiscounted future cash flows are the sum of the estimated residual value of the asset at the end of the asset’s expected holding period and estimates of undiscounted future rents. The residual value assumes, among other things, that the asset is utilized normally in an open, unrestricted and stable market. Short-term fluctuations in the 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.

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. The Company had $121 thousand of purchased securities at both September 30, 2017 and December 31, 2016. There was a $61 thousand gain on sales or dispositions of investment in securities during both the three and nine months ended September 30, 2016. Based upon the Company’s review of its portfolio, no fair value adjustment was deemed necessary for the three and nine months ended September 30, 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 respective three months ended September 30, 2017 and 2016, the Company recorded an unrealized loss of $1 thousand and unrealized gain of $1 thousand, respectively, and during the nine months ended September 30, 2017 and 2016, the Company recorded unrealized losses of $2 thousand and unrealized gains of $4 thousand, respectively, to adjust its warrants to fair value. As of September 30, 2017 and December 31, 2016, the estimated fair value of the Company’s portfolio of warrants were $245 thousand and $247 thousand, respectively. There were no exercises of warrants, net or otherwise, during the three and nine months ended September 30, 2017 and 2016.

Per Unit data:

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

9

ATEL 14, LLC
 
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

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

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. 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,

10

ATEL 14, LLC
 
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

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

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, 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 Company’s current lease portfolio from a lessor perspective. Given the limited changes to lessor accounting, Management does not expect material changes to recognition or measurement, but the Company is 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 Company’s 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 Company’s 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.

11

ATEL 14, LLC
 
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

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

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 non-material as the new revenue guideline does not affect revenues from leases and loans, which comprise the majority of the Company’s 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.

3. Notes receivable, net:

The Company has various notes receivable from borrowers who have financed the purchase of equipment through the Company. The notes are generally secured by the equipment financed. As of September 30, 2017, the terms of the notes receivable are from 84 to 90 months and bear interest rate at 18.00% per annum. The notes had net carrying values of $0 and $17 thousand at September 30, 2017 and December 31, 2016, respectively. The notes all mature in 2020.

At both September 30, 2017 and December 31, 2016, two of the Company’s notes receivable were on non-accrual status, respectively. Details are as follows, in thousands, except for the number of notes receivable and the interest rate:

		Notes receivable
		Non-accrual
		September 30, 2017				December 31, 2016
Number of notes			2				2
Net investment value		$	33			$	86
Annual interest rate			18.00	%			18.00	%
Fair value adjustments		$	33			$	69
Fair value amount		$	—			$	17
Interest income not recorded relative to original terms		$	8			$	8

Date		Note modifications:
December 1, 2014		Notes placed on non-accrual status.
January 1, 2015		Defer payment of principal, interest-only payments at their original rates through June 30, 2015. Payments will be adjusted so ultimate amounts paid will reflect interest earned at 18% per annum related to the entire term from the original funding date.
1st quarter 2015		Impairment totaling $33 thousand was recorded.
3rd quarter 2015		Impairment totaling $30 thousand was recorded.
4th quarter 2015		Extend interest only payments through June 30, 2016.
		Entire balance on the notes due on July 1, 2016.
1st quarter 2016		Impairment totaling $6 thousand was recorded.
3rd quarter 2016		Extend interest only payments through January 1, 2017.
1st quarter 2017		Extend payment schedule through January 1, 2020.
		Notes mature on January 1, 2020.

12

ATEL 14, LLC
 
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

4. Allowance for credit losses:

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

		Accounts Receivable Allowance for Doubtful Accounts				Valuation Adjustments on Financing Receivables				Total Allowance for Credit Losses
		Operating Leases				Notes Receivable
Balance December 31, 2015		$	10			$	63			$	73
Provision for credit losses			21				6				27
Balance December 31, 2016			31				69				100
Reversal of provision for credit losses			(25	)			(36	)			(61	)
Balance September 30, 2017		$	6			$	33			$	39

As of September 30, 2017 and December 31, 2016, the Company’s allowance for credit losses (related solely to financing receivables) and its recorded investment in financing receivables were as follows (in thousands):

September 30, 2017		Notes Receivable				Finance Leases
Allowance for credit losses:
Ending balance		$	33			$	—
Ending balance: individually evaluated for impairment		$	33			$	—
Ending balance: collectively evaluated for impairment		$	—			$	—
Financing receivables:
Ending balance		$	33			$	23
Ending balance: individually evaluated for impairment		$	33			$	23
Ending balance: collectively evaluated for impairment		$	—			$	—

December 31, 2016		Notes Receivable				Finance Leases
Allowance for credit losses:
Ending balance		$	69			$	—
Ending balance: individually evaluated for impairment		$	69			$	—
Ending balance: collectively evaluated for impairment		$	—			$	—
Financing receivables:
Ending balance		$	86			$	32
Ending balance: individually evaluated for impairment		$	86			$	32
Ending balance: collectively evaluated for impairment		$	—			$	—

13

ATEL 14, LLC
 
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

4. Allowance for credit losses: - (continued)

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

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

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

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

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

At September 30, 2017 and December 31, 2016, the Company’s financing receivables by credit quality indicator and by class of financing receivables are as follows (excludes initial direct costs) (in thousands):

		Notes Receivable								Finance Leases
		September 30, 2017				December 31, 2016				September 30, 2017				December 31, 2016
Pass		$	—			$	—			$	23			$	32
Special mention			33				—				—				—
Substandard			—				86				—				—
Doubtful			—				—				—				—
Total		$	33			$	86			$	23			$	32

14

ATEL 14, LLC
 
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

4. Allowance for credit losses: - (continued)

As of September 30, 2017 and December 31, 2016, the Company’s impaired loans were as follows (in thousands):

		Impaired Loans
September 30, 2017		Recorded Investment				Unpaid Principal Balance				Related Allowance				Average Recorded Investment				Interest Income Recognized
With no related allowance recorded Notes receivable		$	—			$	—			$	—			$	—			$	—
With an allowance recorded Notes receivable			33				33				33				50				—
Total		$	33			$	33			$	33			$	50			$	—

		Impaired Loans
December 31, 2016		Recorded Investment				Unpaid Principal Balance				Related Allowance				Average Recorded Investment				Interest Income Recognized
With no related allowance recorded Notes receivable		$	—			$	—			$	—			$	—			$	—
With an allowance recorded Notes receivable			86				86				69				91				—
Total		$	86			$	86			$	69			$	91			$	—

At September 30, 2017 and December 31, 2016, the investment in financing receivables is aged as follows (in thousands):

September 30, 2017		31 – 60 Days Past Due				61 – 90 Days Past Due				Greater Than 90 Days				Total Past Due				Current				Total Financing Receivables				Recorded Investment >90 Days and Accruing
Notes receivable		$	—			$	—			$	—			$	—			$	33			$	33			$	—
Finance leases			—				—				—				—				23				23				—
Total		$	—			$	—			$	—			$	—			$	56			$	56			$	—

December 31, 2016		31 – 60 Days Past Due				61 – 90 Days Past Due				Greater Than 90 Days				Total Past Due				Current				Total Financing Receivables				Recorded Investment >90 Days and Accruing
Notes receivable		$	—			$	—			$	—			$	—			$	86			$	86			$	—
Finance leases			—				—				—				—				32				32				—
Total		$	—			$	—			$	—			$	—			$	118			$	118			$	—

At both September 30, 2017 and December 31, 2016, the Company had two notes receivable which were on non-accrual status (See Note 3).

15

ATEL 14, LLC
 
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

5. Investments in equipment and leases, net:

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

		Balance December 31, 2016				Reclassifications, Improvements/ Dispositions and Impairment Losses				Depreciation/ Amortization Expense or Amortization of Leases				Balance September 30, 2017
Net investment in operating leases		$	27,663			$	(733	)		$	(3,182	)		$	23,748
Net investment in direct financing leases			32				—				(9	)			23
Assets held for sale or lease, net			769				(197	)			(2	)			570
Initial direct costs, net of accumulated amortization of $57 at September 30, 2017 and $83 at December 31, 2016			24				—				(13	)			11
Total		$	28,488			$	(930	)		$	(3,206	)		$	24,352

Impairment of investments in leases:

Recorded values of the Company’s leased asset portfolio are reviewed each quarter to confirm the reasonableness of established residual values and to determine whether there is indication that an asset impairment might have taken place. The Company uses a variety of sources and considers many factors in evaluating whether the respective book values of its assets are appropriate. In addition, the Company may direct a residual value review at any time if it becomes aware of issues regarding the ability of a lessee to continue to make payments on its lease contract. An impairment loss is measured and recognized only if the estimated undiscounted future cash flows of the asset are less than their net book value. The estimated undiscounted future cash flows are the sum of the residual value of the asset at the end of the asset’s lease contract and undiscounted future rents from the existing lease contract, 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, the Company recorded no impairment losses during the three months ended September 30, 2017 and 2016, respectively, and recorded $21 thousand and $50 thousand for the respective nine months ended September 30, 2017 and 2016.

The Company utilizes a straight line depreciation method over the term of the equipment lease for equipment on operating leases currently in its portfolio. Depreciation expense on the Company’s equipment totaled $1.0 million and $1.4 million for the respective three months ended September 30, 2017 and 2016, and totaled $3.2 million and $4.4 million for the respective nine months ended September 30, 2017 and 2016.

Initial direct cost amortization expense related to operating leases and direct financing leases totaled $4 thousand and $5 thousand for the respective three months ended September 30, 2017 and 2016, and totaled $13 thousand and $18 thousand for the respective nine months ended September 30, 2017 and 2016.

16

ATEL 14, LLC
 
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

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

Operating leases:

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

		Balance December 31, 2016				Improvements				Reclassifications or Dispositions				Balance September 30, 2017
Marine vessel		$	19,410			$	—			$	—			$	19,410
Transportation, rail			8,967				—				573				9,540
Transportation			7,516				—				—				7,516
Manufacturing			7,832				—				(1,237	)			6,595
Research			2,250				—				—				2,250
Materials handling			2,599				—				(920	)			1,679
Construction			2,974				—				(1,710	)			1,264
Agriculture			541				—				311				852
Air support equipment			120				—				—				120
Other			82				—				1				83
			52,291				—				(2,982	)			49,309
Less accumulated depreciation			(24,628	)			(3,182	)			2,249				(25,561	)
Total		$	27,663			$	(3,182	)		$	(733	)		$	23,748

The average estimated residual value for assets on operating leases was 39% and 38% of the assets’ original cost at September 30, 2017 and December 31, 2016, respectively. There were no operating leases in non-accrual status at both September 30, 2017 and December 31, 2016.

All of the Company’s lease asset purchases and capital improvements were made during the years from 2009 through 2015.

Direct financing leases:

As of September 30, 2017 and December 31, 2016, investment in direct financing leases consists of materials handling equipment. The components of the Company’s investment in direct financing leases as of September 30, 2017 and December 31, 2016 are as follows (in thousands):

		Balance September 30, 2017				Balance December 31, 2016
Total minimum lease payments receivable		$	28			$	48
Estimated residual values of leased equipment (unguaranteed)			1				1
Investment in direct financing leases			29				49
Less unearned income			(6	)			(17	)
Net investment in direct financing leases		$	23			$	32

As of September 30, 2017 and December 31, 2016, there were no investments in direct financing leases in non-accrual status.

17

ATEL 14, LLC
 
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

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

At September 30, 2017, 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, 2017		$	1,202			$	6			$	1,208
Year ending December 31, 2018			4,021				22				4,043
2019			1,252				—				1,252
2020			224				—				224
2021			54				—				54
		$	6,753			$	28			$	6,781

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 Company’s portfolio are as follows (in years):

Equipment category		Useful Life
Transportation, rail			35 – 40
Marine vessel			20 – 30
Air support equipment			15 – 20
Manufacturing			10 – 15
Agriculture			7 – 10
Construction			7 – 10
Materials handling			7 – 10
Transportation			7 – 10
Research			5 – 7

6. Related party transactions:

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

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

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

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

18

ATEL 14, LLC
 
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

6. Related party transactions: - (continued)

The Managing Member and/or affiliates earned fees and billed for reimbursements of costs and expenses, pursuant to the Operating Agreement, during the three and nine months ended September 30, 2017 and 2016 as follows (in thousands):

		Three Months Ended September 30,								Nine Months Ended September 30,
		2017				2016				2017				2016
Administrative costs reimbursed to Managing Member and/or affiliates		$	178			$	216			$	587			$	634
Asset management fees to Managing Member			94				89				273				340
		$	272			$	305			$	860			$	974

7. Non-recourse debt:

At September 30, 2017, non-recourse debt consists of notes payable to financial institutions. The notes are due in monthly installments. Interest on the notes is at fixed rates ranging from 1.97% to 3.00% per annum. The notes are secured by assignments of lease payments and pledges of assets. At September 30, 2017, gross operating lease rentals totaled $5.2 million over the remaining lease terms, and the carrying value of the pledged assets is $17.2 million. The notes mature at various dates from 2017 through 2019.

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

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

		Principal				Interest				Total
Three months ending December 31, 2017		$	896			$	32			$	928
Year ending December 31 2018			3,233				71				3,304
2019			996				8				1,004
		$	5,125			$	111			$	5,236

19

ATEL 14, LLC
 
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

8. Senior long-term debt:

As of September 30, 2017, the $2.1 million of long-term debt consists of a note payable to a lender. Such debt was utilized during the fourth quarter of 2013 to partially fund the marine vessel and related bareboat charter purchased by the Fund and its affiliate, ATEL 15, LLC. The note bears interest at a fixed-rate of 3.5% per annum, to accrue in arrears on a monthly basis. The full pro rata principal amount of $2.1 million plus all outstanding accrued and unpaid interest of approximately $400 thousand shall be paid in one payment of $2.5 million due on May 25, 2019. The note is recourse to the residual value of the vessel which is expected to be well in excess of the note amount. In addition, the lender has recourse to the Fund’s general assets up to $2.5 million. The note does not contain any material financial covenants and is guaranteed as a senior obligation of the Fund.

9. Borrowing facilities:

The Company participates with ATEL Capital Group and certain subsidiaries and affiliated funds in a $75 million revolving credit facility (the “Credit Facility”) with a syndicate of financial institutions as lenders. The Credit Facility is comprised of a working capital facility, an acquisition facility (the “Acquisition Facility”) and a warehouse facility (the “Warehouse Facility”), the Company and affiliates, and a venture facility.

As of September 30, 2017, the Credit Facility has been extended to June 30, 2019 for an amount of $75 million. The lending syndicate providing the Credit Facility has a blanket lien on all of the Company’s assets as collateral for any and all borrowings under the Acquisition Facility, and on a pro-rata basis under the Warehouse Facility. Such Credit Facility includes certain financial covenants.

As of September 30, 2017 and December 31, 2016, borrowings under the Credit Facility were as follows (in thousands):

		September 30, 2017				December 31, 2016
Total available under the financing arrangement		$	75,000			$	75,000
Amount borrowed by the Company under the acquisition facility			—				—
Amount borrowed by affiliated partnerships and limited liability companies under the venture, acquisition and warehouse facilities			(1,485	)			(1,030	)
Amount borrowed by institutional leasing trust under institutional line			(1,800	)			(8,488	)
Total remaining available under the venture, acquisition and warehouse facilities		$	71,715			$	65,482

The Company and its affiliates pay an annual commitment fee to have access to this line of credit. As of September 30, 2017, the aggregate amount of the Credit Facility is potentially available to the Company, subject to certain sub-facility and borrowing-base limitations. However, as amounts are drawn on the Credit Facility by each of the Company and the affiliates who are borrowers under the Credit Facility, the amount remaining available to all borrowers to draw under the Credit Facility is reduced. As the Warehousing Facility is a short term bridge facility, any amounts borrowed under the Warehousing Facility, and then repaid by the affiliated borrowers (including the Company) upon allocation of an acquisition to a specific purchaser, become available under the Warehouse Facility for further short term borrowing.

As of September 30, 2017, the Company’s Tangible Net Worth requirement under the Credit Facility was $10.0 million, the permitted maximum leverage ratio was not to exceed 1.25 to 1, and the required minimum interest coverage ratio was not to be less than 2 to 1. The Company was in compliance with these financial covenants under the Credit Facility with a minimum Tangible Net Worth, leverage ratio and interest coverage ratio, as calculated per the Credit Facility agreement of $16.8 million, 0.43 to 1, and 28.52 to 1, respectively,

20

ATEL 14, LLC
 
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

9. Borrowing facilities: - (continued)

as of September 30, 2017. As such, as of September 30, 2017, the Company was in compliance with all material financial covenants, and with all other material conditions of the Credit Facility. The Company does not anticipate any covenant violations nor does it anticipate that any of these covenants will restrict its operations or its ability to procure additional financing.

Fee and interest terms

The interest rate on the Credit Facility is based on either the LIBOR/Eurocurrency rate of 1-, 2-, 3- or 6-month maturity plus a lender designated spread, or the bank’s Prime rate, which re-prices daily. Principal amounts of loans made under the Credit Facility that are prepaid may be re-borrowed on the terms and subject to the conditions set forth under the Credit Facility. The Company had no borrowings outstanding at September 30, 2017 and December 31, 2016.

Warehouse facility

To hold the assets under the Warehousing Facility prior to allocation to specific investor programs, a Warehousing Trust has been entered into by the Company, AFS, ALC, and certain of the affiliated partnerships and limited liability companies.

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

As of September 30, 2017, the investment program participants were the Company, ATEL 15, LLC, ATEL 16, LLC and ATEL 17, LLC. Pursuant to the Warehousing Trust, the benefit of the lease transaction assets, and the corresponding liabilities under the Warehouse Facility, inure to each of such entities based upon each entity’s pro-rata share in the Warehousing Trust estate. The “pro-rata share” is calculated as a ratio of the net worth of each entity over the aggregate net worth of all entities benefiting from the Warehousing Trust estate, excepting that the trustees, AFS and ALC, are both jointly and severally liable for the pro-rata portion of the obligations of each of the affiliated limited liability companies participating under the Warehouse Facility.

Transactions are financed through this Warehouse Facility only until the transactions are allocated to a specific program for purchase or are otherwise disposed by AFS and ALC. When a determination is made to allocate the transaction to a specific program for purchase by the program, the purchaser repays the debt associated with the asset, either with cash or by means of proceeds of a draw under the Acquisition Facility, and the asset is removed from the Warehouse Facility collateral, and ownership of the asset and any debt obligation associated with the asset are assumed solely by the purchasing entity.

There were no borrowings under the Warehouse Facility as of September 30, 2017 and December 31, 2016.

10. Commitments:

At September 30, 2017, there were no commitments to fund investments in notes receivable and to purchase lease assets.

21

ATEL 14, LLC
 
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

11. Members’ capital:

A total of 8,271,094 Units and 8,316,662 Units were issued and outstanding as of September 30, 2017 and December 31, 2016, respectively, including the 50 Units issued to the initial Member (Managing Member). The Fund was authorized to issue up to 15,000,000 Units in addition to the Units issued to the initial Member.

Distributions to the Other Members for the three and nine months ended September 30, 2017 and 2016 were as follows (in thousands except Units and per Unit data):

		Three Months Ended September 30,								Nine Months Ended September 30,
		2017				2016				2017				2016
Distributions declared		$	1,848			$	1,871			$	5,566			$	5,631
Weighted average number of Units outstanding			8,281,477				8,350,658				8,295,717				8,359,961
Weighted average distributions per Unit		$	0.22			$	0.22			$	0.67			$	0.67

12. Fair value measurements:

At September 30, 2017 and December 31, 2016, only the Company’s warrants were measured on a recurring basis. During the nine months ending September 30, 2017 certain off-lease equipment deemed impaired were measured at fair value on a non-recurring basis, and such equipment had been disposed. As of December 31, 2016, certain notes receivable and investment securities were deemed impaired and measured at fair value on a non-recurring basis.

Such fair value adjustments utilized the following methodology:

Warrants (recurring)

Warrants owned by the Company are not registered for public sale, but are considered derivatives and are carried on the balance sheet at an estimated fair value at the end of the period. The valuation of the warrants was determined using a Black-Scholes formulation of value based upon the stock price(s), the exercise price(s), the volatility of comparable venture companies, time to maturity, and a risk free interest rate for the term(s) of the warrant exercise(s). As of September 30, 2017 and December 31, 2016, the calculated fair value of the Fund’s warrant portfolio approximated $245 thousand and $247 thousand, respectively. Such valuations are classified within Level 3 of the valuation hierarchy.

The fair value of warrants that were accounted for on a recurring basis as of the three and nine months ended September 30, 2017 and 2016 and classified as Level 3 are as follows (in thousands):

		Three Months Ended September 30,								Nine Months Ended September 30,
		2017				2016				2017				2016
Fair value of warrants at beginning of period		$	246			$	572			$	247			$	569
Unrealized (loss) gain on fair value adjustment for warrants			(1	)			1				(2	)			4
Fair value of warrants at end of period		$	245			$	573			$	245			$	573

Impaired notes receivable (non-recurring)

The fair value of the Company’s notes receivable, when impairment adjustments are required, is estimated using either third party appraisals or estimations of the value of collateral (for collateral dependent loans) or discounted cash flow analyses (by discounting estimated future cash flows) using the effective interest rate contained in the terms of the original loan. During the three and nine months ended September 30, 2017, the Company did not record fair value adjustments on notes receivable. During the three and nine months ended September 30, 2016, fair value adjustments totaling $0 and $6 thousand, respectively, were recorded to further reduce the cost basis of two impaired notes that were originally written-down in 2015.

22

ATEL 14, LLC
 
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

12. Fair value measurements: - (continued)

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

Impaired off-lease equipment (non-recurring)

During the three months ended September 30, 2017 and 2016, no fair value adjustments were made. During the nine months ended September 30, 2017 and 2016, the Company recorded fair value adjustments totaling $21 thousand and $50 thousand, respectively, to reduce the cost basis of certain off-lease research and construction equipment. The aforementioned impaired equipment was disposed prior to September 30, 2017 and 2016.

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

Impaired investment securities (non-recurring)

The Company’s 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 issuer’s ability to meet its current obligations and indications of the issuer’s subsequent ability to raise capital.

During the three and nine months ended September 30, 2017 and 2016, no fair value adjustments on investment securities were made.

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 table presents the fair value measurement of impaired assets measured at fair value on a non-recurring basis and the level within the hierarchy in which the fair value measurements fall at December 31, 2016 (in thousands):

		December 31, 2016				Level 1 Estimated Fair Value				Level 2 Estimated Fair Value				Level 3 Estimated Fair Value
Assets measured at fair value on a non-recurring basis:
Impaired notes receivable, net		$	17			$	—			$	—			$	17
Impaired investment in securities			67				—				—				67

23

ATEL 14, LLC
 
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

12. Fair value measurements: - (continued)

The following tables summarize the valuation techniques and significant unobservable inputs used for the Company’s recurring and non-recurring fair value calculation/adjustments categorized as Level 3 in the fair value hierarchy at September 30, 2017 and December 31, 2016:

September 30, 2017

Name

Valuation Frequency

Valuation Technique

Unobservable Inputs

Range of Input Values

Warrants

Recurring

Black-Scholes formulation

Stock price

$

0.00 – $14.75

Exercise price

$

0.01 – $1,000.00

Time to maturity (in years)

2.87 – 8.33

Risk-free interest rate

1.60% – 2.24%

Annualized volatility

52.37% – 99.85%

December 31, 2016

Name

Valuation Frequency

Valuation Technique

Unobservable Inputs

Range of Input Values

Warrants

Recurring

Black-Scholes formulation

Stock price

$

0.00 – $14.75

Exercise price

$

0.36 – $1,000.00

Time to maturity (in years)

0.08 – 9.08

Risk-free interest rate

0.44% – 2.39%

Annualized volatility

39.31% – 103.87%

Impaired Notes Receivable

Non-recurring

Market Approach

Third Party Agents’ estimate of   the value of collateral

$

6,530 – $17,051

Condition of collateral   (equipment)

Poor to Average

Impaired Investment Securities

Non-recurring

Market Approach

Qualitative and quantitative information (Investee Management)

Not Applicable

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

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

Cash and cash equivalents

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

Notes receivable

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

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ATEL 14, LLC
 
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

12. 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 and Senior long-term debt

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

Commitments and Contingencies

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

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

The following tables present estimated fair values of the Company’s financial instruments in accordance with the guidance provided by the Financial Instruments Topic of the FASB Accounting Standards Codification at September 30, 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		$	734			$	734			$	—			$	—			$	734
Investment in securities			121				—				—				121				121
Warrants, fair value			245				—				—				245				245
Financial liabilities:
Non-recourse debt			5,125				—				—				5,127				5,127
Senior long-term debt			2,068				—				—				2,373				2,373

		Fair Value Measurements at December 31, 2016
		Carrying Value				Level 1				Level 2				Level 3				Total
Financial assets:
Cash and cash equivalents		$	4,639			$	4,639			$	—			$	—			$	4,639
Notes receivable, net			17				—				—				17				17
Investment in securities			121				—				—				121				121
Warrants, fair value			247				—				—				247				247
Financial liabilities:
Non-recourse debt			8,161				—				—				8,178				8,178
Senior long-term debt			2,068				—				—				2,324				2,324

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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 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 14, LLC (the “Company” or the “Fund”) was formed under the laws of the state of California on April 1, 2009 (“Date of Inception”) for the purpose of equipment financing and acquiring equipment to engage in equipment leasing and sales activities.

The Company may continue until December 31, 2030. 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 $393 thousand and $209 thousand for the respective three months ended September 30, 2017 and 2016. The results for the third quarter of 2017 reflect a decrease in both total revenues and total operating expenses when compared to the prior year period.

Revenues

Total revenues for the third quarter of 2017 decreased by $286 thousand, or 13%, as compared to the prior year period. This decrease was largely attributable to a $375 thousand, or 17%, decrease in operating lease revenues, a result of continued run-off of the portfolio of lease assets; and a $61 thousand, or 100%, decrease in the gain on sales or dispositions of investment securities, offset in part, by a $155 thousand, or 6 times, increase in the gain on sales of lease assets and early termination of notes receivables, due to a reduction in sales activity and a change in the mix of assets sold.

Expenses

Total operating expenses for the third quarter of 2017 decreased by $470 thousand, or 23%, as compared to the prior year period. The net decrease in total expenses was largely a result of a $361 thousand, or 26%, reduction in depreciation expense, mostly the result of run-off and sales of lease assets; a $71 thousand, or 118%, favorable turnaround in the provision for credit losses, a direct result of the collection of amounts previously reserved as uncollectible; a $38 thousand or 18%, decrease in cost reimbursed to Manager Member and/or affiliates related to decreased indirect cost allocations; a $26 thousand or 31% decrease in interest expense resulting from a $4.0 million reduction in outstanding debt since September 30, 2016; a $15 thousand or 36% decrease in bank charges due to a decrease in borrowing and a $16 thousand, or 52%, decrease in professional fees, due to year over year differences in timing and related billing for professional audit and tax services, offset in part, by a $50 thousand increase in taxes on income and franchise fees, due to year over year differences in estimated tax liability related to prior year tax payments.

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The nine months ended September 30, 2017 versus the nine months ended September 30, 2016

The Company had net income of $829 thousand and $876 thousand for the nine months ended September 30, 2017 and 2016, respectively. The results for the third quarter of 2017 reflect decreases in both total revenues and total operating expenses when compared to the prior year period.

Revenues

Total revenues for the nine months ended September 30, 2017 decreased by $1.3 million, or 18%, as compared to the prior year period. Such decrease was largely due to a $1.4 million, or 20%, reduction in operating lease revenues, mainly the result of continued portfolio run-off and sales of lease assets; a $61 thousand, or 100%, decrease of gain on sales or dispositions of investment securities, and a $13 thousand, or 100%, decrease in interest on notes receivables due to the maturity of certain notes; offset in part, by a $105 thousand, or 38%, increase in gain on sales of lease assets and early termination of notes receivable, primarily attributable to lower sales volume and a change in the mix of assets sold; and a $65 thousand year over year increase in other revenues, the result of higher deferred maintenance fees associated with returned equipment.

Expenses

Total operating expenses for the nine months ended September 30, 2017 decreased by $1.3 million, or 20%, as compared to the prior year period. The net decrease in total expenses was largely a result of a $1.2 million, or 27%, reduction in depreciation expense, mostly the result of run-off and sales of lease assets; a $131 thousand, or 2 times, favorable turnaround in the provision for credit losses, a direct result of the collection of amounts previously reserved as uncollectible, a $77 thousand or 29% decrease in interest expense resulting from a $4.0 million reduction in outstanding debt since September 30, 2016; a $67 thousand, or 20%, decline in asset management fees to Managing Member, directly attributable to a reduced level of assets under management and associated operating lease revenues, and a $47 thousand or 7%, decrease in cost reimbursed to Manager Member and/or affiliate related to decreased indirect cost allocations; offset, in part, by a $171 thousand increase in taxes on income and franchise fees, due to year over year differences in estimated tax liability related to prior year tax payments and a $31 thousand, or 52% increase in outside services, indicative of additional efforts required to comply with certain regulatory requirements.

Capital Resources and Liquidity

At September 30, 2017 and December 31, 2016, the Company’s cash and cash equivalents totaled $734 thousand and $4.6 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 lease assets are acquired, as distributions are made to the Members and to the extent expenses exceed cash flows from leases and proceeds from asset sales.

The Company currently believes it has adequate reserves available 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. The Managing Member 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		$	1,191			$	1,662			$	3,929			$	5,096
Investing activities			548				364				1,349				1,920
Financing activities			(3,061	)			(3,111	)			(9,183	)			(9,292	)
Net decrease in cash and cash equivalents		$	(1,322	)		$	(1,085	)		$	(3,905	)		$	(2,276	)

27

The three months ended September 30, 2017 versus the three months ended September 30, 2016

During the respective three months ended September 30, 2017 and 2016, the Company’s primary sources of liquidity were cash flows from its portfolio of operating and direct financing lease contracts, and its investments in notes receivable. The Company also realized $528 thousand and $112 thousand of proceeds from sales of lease assets and the early termination of notes receivable during the respective periods.

During the same comparative periods, cash was primarily used to pay distributions to both the Other Members and the Managing Member, and to pay down non-recourse debt. Total distributions paid amounted to $2.0 million for both the three months ended September 30, 2017 and 2016, while total non-recourse debt repayments amounted to $1.0 million for both the three months ended September 30, 2017 and 2016.

The nine months ended September 30, 2017 versus the nine months ended September 30, 2016

During the respective nine months ended September 30, 2017 and 2016, the Company’s primary sources of liquidity were cash flows from its portfolio of operating and direct financing lease contracts, and its investments in notes receivable. The Company also realized $1.3 million and $1.4 million of proceeds from sales of lease assets and the early termination of notes receivables during the respective periods.

During the same comparative periods, cash was primarily used to pay distributions to both the Other Members and the Managing Member, and to pay down non-recourse debt. Total distributions paid amounted to $6.0 million and $6.1 million for the nine months ended September 30, 2017 and 2016, respectively, while total non-recourse debt repayments amounted to $3.0 million and $3.1 million for the nine months ended September 30, 2017 and 2016, respectively.

Revolving credit facility

The Company participates with ATEL Capital Group and certain subsidiaries and affiliated funds in a $75 million revolving credit facility (the “Credit Facility”) with a syndicate of financial institutions as lenders. The Credit Facility is comprised of a working capital facility, an acquisition facility (the “Acquisition Facility”) and a warehouse facility (the “Warehouse Facility”), the Company and affiliates, and a venture facility.

As of September 30, 2017, the Credit Facility has been extended to June 30, 2019 for an amount of $75 million. The lending syndicate providing the Credit Facility has a blanket lien on all of the Company’s assets as collateral for any and all borrowings under the Acquisition Facility, and on a pro-rata basis under the Warehouse Facility. Such Credit Facility includes certain financial covenants.

Compliance with covenants

The Credit Facility includes certain financial and non-financial covenants applicable to each borrower, including the Company. Such covenants include covenants typically found in credit facilities of the size and nature of the Credit Facility, such as accuracy of representations, good standing, absence of liens and material litigation, etc. The Company was in compliance with all applicable covenants under the Credit Facility as of September 30, 2017. The Company considers certain financial covenants to be material to its ongoing use of the Credit Facility and these covenants are described below.

Material financial covenants

Under the Credit Facility, the Company is required to maintain a specific tangible net worth, to comply with a leverage ratio and an interest coverage ratio, and to comply with other terms expressed in the Credit Facility, including limitation on the incurrence of additional debt and guaranties, defaults, and delinquencies.

As of September 30, 2017, the material financial covenants are summarized as follows:

Minimum Tangible Net Worth: $10.0 million
Leverage Ratio (leverage to Tangible Net Worth): Not to exceed 1.25 to 1
Collateral Value: Collateral value under the Warehouse Facility must be no less than the outstanding borrowings under that facility
EBITDA to Interest Ratio: Not to be less than 2 to 1 for the four fiscal quarters just ended

28

“EBITDA” is defined under the Credit Facility as, for the relevant period of time (1) gross revenues (all payments from leases and notes receivable) for such period minus (2) expenses deducted in determining net income for such period plus (3) to the extent deducted in determining net income for such period (a) provision for income taxes and (b) interest expense, and (c) depreciation, amortization and other non-cash charges. Extraordinary items and gains or losses on (and proceeds from) sales or dispositions of assets outside of the ordinary course of business are excluded in the calculation of EBITDA. “Tangible Net Worth” is defined as, as of the date of determination, (i) the net worth of the Company, after deducting there from (without duplication of deductions) the net book amount of all assets of the Company, after deducting any reserves and other amounts for assets which would be treated as intangibles under accounting principles generally accepted in the United States of America (“GAAP”), and after certain other adjustments permitted under the agreements.

The financial covenants referred to above are applicable to the Company only to the extent that the Company has borrowings outstanding under the Credit Facility. The Company was in compliance with these financial covenants under the Credit Facility with a minimum Tangible Net Worth, leverage ratio and (EBITDA) interest coverage ratio, as calculated per the Credit Facility agreement of $16.8 million, 0.43 to 1, and 28.52 to 1, respectively, as of September 30, 2017. As such, as of September 30, 2017, the Company was in compliance with all such material financial covenants.

Reconciliation to GAAP of EBITDA

For purposes of compliance with the Credit Facility covenants, the Company uses a financial calculation of EBITDA, as defined therein, which is a non-GAAP financial performance measure. The EBITDA is utilized by the Company to calculate its debt covenant ratios.

The following is a reconciliation of net income to EBITDA, as defined in the loan agreement, for the twelve months ended September 30, 2017 (in thousands):

Net income – GAAP basis		$	2,600
Interest expense			276
Depreciation and amortization			4,455
Amortization of initial direct costs			18
Impairment losses			21
(Reversal) for credit losses			(104	)
Provision for losses on investment in securities			210
Unrealized loss on fair value adjustment for warrants			327
Principal payments received on direct financing leases			12
Principal payments received on notes receivable			57
EBITDA (for Credit Facility financial covenant calculation only)		$	7,872

For detailed information on the Company’s debt obligations, see Notes 7 through 9 to the financial statements as set forth in Part I, Item 1, Financial Statements (Unaudited).

Distributions

The Unitholders of record are entitled to certain distributions as provided under the Operating Agreement. The Company commenced periodic distributions beginning with the month of December 2009. Additional distributions have been consistently made through September 30, 2017.

Cash distributions were paid by the Fund to Unitholders of record as of August 31, 2017, and paid through September 30, 2017. Distributions may be characterized for tax, accounting and economic purposes as a return of capital, a return on capital (including escrow interest) or a portion of each. Generally, the portion of each cash distribution by a company which exceeds its net income for the fiscal period would constitute a return of capital. The Fund is required by the terms of its Operating Agreement to distribute the net cash flow generated by its investments in certain minimum amounts during the Reinvestment Period before it can reinvest its operating cash flow in additional portfolio assets. See the discussion in the ATEL 14, LLC Prospectus dated October 7, 2009 (“Prospectus”) under “Income, Losses and Distributions – Reinvestment.” Accordingly, the amount of cash flow from Fund investments distributed to Unitholders will not be available for reinvestment in additional portfolio assets.

29

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

The following table summarizes distribution activity for the Fund from inception through September 30, 2017 (in thousands except for Units and Per Unit Data):

30

Commitments and Contingencies and Off-Balance Sheet Transactions

Commitments and Contingencies

At September 30, 2017, there were no commitments to fund investments in notes receivable and to purchase lease assets.

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 Company’s 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 Company’s significant accounting policies since December 31, 2016.

Item 4. Controls and Procedures.

Evaluation of disclosure controls and procedures

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

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

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, 2017 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.

31

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 Managing Member. In the opinion of management, the outcome of such matters, if any, will not have a material impact on the Managing Member’s 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.

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		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

32

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 14, LLC
(Registrant)

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

33