Wed, Mar 19, 6:19 PM (41 days ago)
**ATEL 16, LLC (Ticker: Not Listed)** **Financial Performance (2024):** - **Revenue:** $2.2 million (down 4% from 2023) - **Net Income:** $162,000 (up from a net loss of $61,000 in 2023) - **Operating Expenses:** $2.1 million (down 10% from 2023) - **Earnings per Share:** $0.04 (up from -$0.01 in 2023) **Strategic Overview:** - **Business Model:** Equipment financing and leasing. - **Portfolio:** Diversified across various industries, with a focus on low-technology, low-obsolescence equipment. - **Market Position:** Competitive in the equipment financing industry, with a focus on North America. **Future Outlook:** - **Reinvestment Period:** Continued reinvestment of cash flow in excess of minimum distributions. - **Liquidity:** Adequate reserves to meet immediate cash requirements. - **Distributions:** Consistent distributions to unit holders, with a target of 7-9% per annum on invested capital. **Risk Factors:** - **Economic Conditions:** Sensitivity to general economic conditions, including inflation and recession. - **Credit Risk:** Dependence on the creditworthiness of lessees and borrowers. - **Market Risk:** Fluctuations in supply and demand for equipment. **Financial Condition:** - **Assets:** $5.5 million (down from $8.7 million in 2023) - **Liabilities:** $976,000 (down from $1.3 million in 2023) - **Members’ Capital:** $4.5 million (down from $7.4 million in 2023) **Market Position Changes:** - **Unit Repurchases:** 6,270 units repurchased in 2024. - **Distributions:** $2.99 million paid to unit holders in 2024. **Cybersecurity:** - **Program:** Designed to maintain the safety and security of systems and data. - **Management:** Third-party cybersecurity expert and in-house system administrator. **Regulatory Compliance:** - **Valuation:** Compliance with FINRA 15-02 for per unit valuation. - **Audit:** Clean audit report from Moss Adams LLP. **Management and Governance:** - **Key Personnel:** Dean L. Cash (Chairman, President, CEO) and Paritosh K. Choksi (Director, EVP, CFO, COO). - **Compensation:** Asset management fees and carried interest, subject to NASAA guidelines. **Summary:** ATEL 16, LLC demonstrated improved financial performance in 2024, with increased net income and reduced operating expenses. The company continues to focus on equipment financing and leasing, with a strategic emphasis on low-technology, low-obsolescence equipment. Despite economic uncertainties, ATEL 16, LLC maintains a strong liquidity position and a commitment to consistent distributions to unit holders. The company's cybersecurity program and regulatory compliance efforts further support its operational resilience.