Thu, May 15, 6:05 PM (60 days ago)
**ATEL 16, LLC (Ticker: N/A) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** Total operating revenues decreased by $35,000 (6%) due to a $42,000 decrease in operating lease revenues, partially offset by a $7,000 increase in other income. - **Profit Margins:** Net income increased to $27,000 from $8,000 in Q1 2024, reflecting a decrease in both total operating revenues and expenses. - **Cash Flow:** Net cash provided by operating activities was $339,000, down from $396,000 in Q1 2024. Net cash used in financing activities was $790,000, slightly improved from $835,000 in Q1 2024. - **Earnings Changes:** Net income from operations was $33,000, up from $8,000 in Q1 2024. Other loss from unrealized loss on fair value adjustment for warrants was $6,000. **Key Metrics & Trends:** - **Operating Expenses:** Decreased by $60,000 (11%) due to reductions in depreciation and costs reimbursed to the Managing Member, partially offset by increases in professional fees and outside services. - **Depreciation:** Decreased by $126,000 due to lease run-off and disposition of lease assets. - **Distributions:** Distributions to Other Members were $746,000, consistent with Q1 2024. - **Cash Reserves:** Cash and cash equivalents decreased to $713,000 from $1,164,000 in Q1 2024. **Uncertainties & Future Operations:** - **Economic Conditions:** Performance is subject to economic recession and changes in general economic conditions, including fluctuations in demand for equipment, lease rates, and interest rates. - **Credit Risk:** Performance is subject to lessee and borrower defaults and the creditworthiness of lessees and borrowers. - **Equipment Value:** Performance is subject to the value of equipment at the end of leases, which may be affected by the condition of the equipment, technological obsolescence, and market conditions. - **Liquidity:** The Company believes it has adequate reserves to meet immediate cash requirements but may need to borrow against its portfolio if reserves are inadequate. **Impact on Future Operations:** - **Distributions:** The Company is required to distribute net cash flow generated by its investments in certain minimum amounts during the Reinvestment Period before reinvesting in additional portfolio assets. - **Liquidity Management:** The Company may incur short-term borrowing to fund regular distributions of gross revenues generated by newly acquired transactions. - **Future Minimum Payments:** The Company has future minimum payments of non-recourse debt totaling $473,000, with principal payments ranging from $119,000 to $138,000 through 2026.