##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 Form 10-K
 þ
    
    Annual Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934.
 For the year ended December 31, 2005
 o
    
    Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934.
 For the transition period from                    to
 Commission File number 000-50210
 ATEL Capital Equipment Fund IX, LLC
  California
    
    94-3375584(State or other jurisdiction of
    
    (I. R. S. Employerincorporation or organization)
    
    Identification No.)
 600 California Street, 6th Floor, San Francisco, California 94108-2733
 (415) 989-8800
 None
 Limited Liability Company Units
 o þ
 o þ
 o þ
 o
  o o þ
 o þ
  o
   DOCUMENTS INCORPORATED BY REFERENCE




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TABLE OF CONTENTS  PART IItem 1. BUSINESSItem 2. PROPERTIESItem 3. LEGAL PROCEEDINGSItem 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERSPART IIItem 5. MARKET FOR REGISTRANTS LIMITED LIABILITY COMPANY UNITS AND RELATED MATTERSItem 6. SELECTED FINANCIAL DATAItem 7. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSItem 7a. QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISKItem 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATAItem 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ACCOUNTING AND FINANCIAL DISCLOSURESItem 9A. CONTROLS AND PROCEDURESPART IIIItem 10. DIRECTORS AND EXECUTIVE OFFICERSItem 11. EXECUTIVE COMPENSATIONItem 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENTItem 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONSItem 14. PRINCIPAL ACCOUNTING FEES AND SERVICESPART IVItem 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-KSIGNATURESEXHIBIT 14.1EXHIBIT 31.1EXHIBIT 31.2EXHIBIT 32.1EXHIBIT 32.2    Table of Contents  
 PART I
 
 Item 1. BUSINESS
 General Development of Business
        Narrative Description of Business
   2




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##### Table of Contents



Lessee
    
    Type of Equipment
    
    2005
    
    2004
    
    2003Ford Motor Company
    
    Material Handling
    
    
    12
    %
    
    
    *
    
    
    
    *Basin Electric
    
    Walking dragline
    
    
    *
    
    
    
    14
    %
    
    
    14
    %Graham Offshore Inc.
    
    Off shore supply vessels
    
    
    *
    
    
    
    10
    %
    
    
    11
    %General Electric Aircraft Engines
    
    Machine tools
    
    
    *
    
    
    
    *
    
    
    
    15
    %
 
 *
    
    Less than 10%      Equipment Leasing Activities
 Purchase Price Excluding
    
    
    Percentage of TotalAsset Types
    
    Acquisition Fees
    
    
    AcquisitionsMining equipment
    
    $
    34,172,058
    
    
    
    22
    %Materials handling
    
    
    34,741,309
    
    
    
    19
    %Manufacturing
    
    
    22,126,408
    
    
    
    15
    %Rail Transportation
    
    
    13,458,439
    
    
    
    9
    %Construction
    
    
    12,896,394
    
    
    
    8
    %Transportation
    
    
    12,728,745
    
    
    
    8
    %Marine vessels
    
    
    11,200,000
    
    
    
    7
    %Office Automation
    
    
    10,177,870
    
    
    
    7
    %Furniture and fixtures
    
    
    2,363,419
    
    
    
    2
    %Aircraft
    
    
    2,680,000
    
    
    
    2
    %Test equipment
    
    
    1,000,466
    
    
    
    1
    %Natural gas compressors
    
    
    696,451
    
    
    
    0
    %Communications
    
    
    301,620
    
    
    
    0
    %$
    158,543,179
    
    
    
    100
    %
 3




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##### Table of Contents



Purchase Price Excluding
    
    
    Percentage of TotalIndustry of Lessee
    
    Acquisition Fees
    
    
    AcquisitionsManufacturing
    
    $
    61,603,200
    
    
    
    36
    %Mining
    
    
    29,137,836
    
    
    
    19
    %Land transportation
    
    
    24,754,791
    
    
    
    16
    %Electric utilities
    
    
    11,930,290
    
    
    
    8
    %Marine transportation
    
    
    11,200,000
    
    
    
    7
    %Communications
    
    
    8,431,692
    
    
    
    6
    %Health care
    
    
    6,295,867
    
    
    
    4
    %Air transportation
    
    
    3,315,150
    
    
    
    2
    %Retail
    
    
    1,177,902
    
    
    
    1
    %Oil and gas
    
    
    696,451
    
    
    
    1
    %$
    158,543,179
    
    
    
    100
    %
  Original
    
    
    
    
    
    
    Excess of RentsAsset Types
    
    Equipment Cost
    
    
    Sale Price
    
    
    Over Expenses*Manufacturing
    
    $
    6,301,283
    
    
    $
    5,289,515
    
    
    $
    2,224,101Test equipment
    
    
    1,454,642
    
    
    
    74,807
    
    
    
    1,837,570Office automation
    
    
    2,791,196
    
    
    
    1,069,052
    
    
    
    2,279,391Mining
    
    
    3,791,357
    
    
    
    2,694,237
    
    
    
    2,495,519Furniture and fixtures
    
    
    1,073,043
    
    
    
    482,892
    
    
    
    1,263,886Other
    
    
    1,124,593
    
    
    
    456,444
    
    
    
    1,243,473$
    16,536,114
    
    
    $
    10,066,947
    
    
    $
    11,343,940
 
 *
    
    Includes only those expenses directly related to the production of the related rents.    
 Item 2. PROPERTIES
  
 Item 3. LEGAL PROCEEDINGS
  4




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Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  
 PART II
 
 Item 5. MARKET FOR REGISTRANTS LIMITED LIABILITY COMPANY UNITS AND RELATED MATTERS
 Market Information
  Holders
  Distributions
       2005
    
    
    2004
    
    
    2003Net income (loss) per Unit, based on weighted average Units outstanding
    
    $
    0.04
    
    
    $
    (0.16
    )
    
    $
    (0.09
    )Return of investment
    
    
    0.96
    
    
    
    1.06
    
    
    
    0.97Distributions declared per Unit, based on weighted average Units outstanding
    
    
    1.00
    
    
    
    0.90
    
    
    
    0.88Differences due to timing of distributions
    
    
    (0.10
    )
    
    
    
    
    
    
    0.02Actual distribution rates, per Unit
    
    $
    0.90
    
    
    $
    0.90
    
    
    $
    0.90
 5




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Item 6. SELECTED FINANCIAL DATA
  2005
    
    
    2004
    
    
    2003
    
    
    2002
    
    
    2001Revenues
    
    $
    23,980,085
    
    
    $
    12,716,209
    
    
    $
    11,531,560
    
    
    $
    7,073,495
    
    
    $
    3,393,685Net (loss) income
    
    $
    1,456,697
    
    
    $
    (1,034,432
    )
    
    $
    (225,230
    )
    
    $
    (50,850
    )
    
    $
    625,132Weighted average Units outstanding
    
    
    12,057,893
    
    
    
    12,062,469
    
    
    
    12,035,095
    
    
    
    7,280,533
    
    
    
    2,167,171Net (loss) income allocated to Other Members
    
    $
    478,665
    
    
    $
    (1,914,481
    )
    
    $
    (1,087,372
    )
    
    $
    (538,604
    )
    
    $
    526,753Net (loss) income per Unit, based on
weighted average Units outstanding
    
    $
    0.04
    
    
    $
    (0.16
    )
    
    $
    (0.09
    )
    
    $
    (0.07
    )
    
    $
    0.24Distributions declared per Unit, based on
weighted average Units outstanding
    
    $
    1.00
    
    
    $
    0.90
    
    
    $
    0.88
    
    
    $
    0.83
    
    
    $
    0.56Total Assets
    
    $
    112,234,202
    
    
    $
    91,160,186
    
    
    $
    86,533,350
    
    
    $
    88,973,776
    
    
    $
    36,933,834Total Members Capital
    
    $
    60,355,772
    
    
    $
    71,960,299
    
    
    $
    84,762,125
    
    
    $
    87,549,292
    
    
    $
    36,349,172
 
 Item 7. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
  Capital Resources and Liquidity
   6




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Total amount available under the financing arrangement
    
    $
    75,000,000Amount borrowed by the Company under the acquisition facility
    
    
    (4,000,000
    )Amount borrowed by affiliated partnerships and limited
liability companies under the acquisition facility
    
    
    (8,500,000
    )Total available under the above mentioned facilities
    
    $
    62,500,000
         7




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Cash Flows
 2005 vs. 2004
   8




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2004 vs. 2003:
    Results of Operations
   9




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2005
    
    2004
    
    2003Manufacturing
    
    
    35
    %
    
    
    36
    %
    
    
    40
    %Mining
    
    
    14
    %
    
    
    26
    %
    
    
    17
    %Rail Transportation
    
    
    11
    %
    
    
    *
    
    
    
    *Electric utilities
    
    
    10
    %
    
    
    15
    %
    
    
    23
    %Marine transportation
    
    
    *
    
    
    
    11
    %
    
    
    17
    %
 
 *
    
    Less than 10%  Utilization of equipment purchased by year
    
    2005
    
    2004
    
    2003
    
    20022005
    
    
    100
    %
    
    
    
    
    
    
    
    
    
    
    2004
    
    
    100
    %
    
    
    99
    %
    
    
    
    
    
    
    2003
    
    
    100
    %
    
    
    100
    %
    
    
    100
    %
    
    
    2002
    
    
    99
    %
    
    
    100
    %
    
    
    100
    %
    
    
    100
    %
  2005 vs. 2004
       10




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2004 vs. 2003:
       11




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Derivative Financial Instruments
    Recent Accounting Pronouncements
  Critical Accounting Policies
  Use of estimates:
  Direct financing leases and related revenue recognition:
    12




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Equipment on operating leases and related revenue recognition:
   Notes receivable, unearned interest income and related revenue recognition:
    Initial direct costs:
  Acquisition Expense:
  Asset valuation:
  13




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Restatement of Prior Periods Presented
  
    
    March 31, 2005 and for the three months ended March 31, 2005
    
    June 30, 2005 and for the three and six months ended June 30, 2005
 Initial Direct Costs to Originate or Acquire Loans and Leases
  Accrued liabilities
  Depreciation of operating lease assets
   14




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Item 7a. QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK
     
 Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
  15




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16




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ATEL CAPITAL EQUIPMENT FUND IX, LLC
 BALANCE SHEETS
 DECEMBER 31, 2005 AND 2004
 2005
    
    
    2004ASSETSCash and cash equivalents
    
    $
    1,479,839
    
    
    $
    1,779,803Due from affiliate
    
    
    
    
    
    
    8,815Accounts receivable, net of allowance for doubtful accounts of $9,835 in 2005 and $16,667 in
2004
    
    
    1,566,974
    
    
    
    1,782,230Notes receivable, net of unearned interest income of $2,002,225 in 2005 and $1,404,068 in 2004
    
    
    6,144,325
    
    
    
    4,857,778Prepaids and other assets
    
    
    162,386
    
    
    
    838,548Interest rate swap contracts
    
    
    271,000
    
    
    
    Investment in securities, at cost
    
    
    62,498
    
    
    
    62,498Investment in equipment and leases, net of depreciation and amortization of $36,906,538 in
2005 and $23,082,445 in 2004
    
    
    102,547,180
    
    
    
    81,830,514Total assets
    
    $
    112,234,202
    
    
    $
    91,160,186LIABILITIES AND MEMBERS CAPITALAccounts payable and accrued liabilities:Managing Member
    
    $
    1,797,169
    
    
    $
    1,326,061Accrued distributions to Other Members
    
    
    1,209,147
    
    
    
    Other
    
    
    7,351,653
    
    
    
    276,764Deposits due lessees
    
    
    110,977
    
    
    
    131,017Acquisition facility obligation
    
    
    4,000,000
    
    
    
    17,000,000Receivables funding program obligation
    
    
    36,502,000
    
    
    
    Unearned operating lease income
    
    
    907,484
    
    
    
    466,045Total liabilities
    
    
    51,878,430
    
    
    
    19,199,887Commitments and contingenciesMembers capital:Managing Member
    
    
    
    
    
    
    Other Members
    
    
    60,355,772
    
    
    
    71,960,299Total Members capital
    
    
    60,355,772
    
    
    
    71,960,299Total liabilities and Members capital
    
    $
    112,234,202
    
    
    $
    91,160,186
  17




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ATEL CAPITAL EQUIPMENT FUND IX, LLC
 STATEMENTS OF OPERATIONS
 FOR THE YEARS ENDED
DECEMBER 31, 2005, 2004 AND 2003
 2005
    
    
    2004
    
    
    2003Revenues:Leasing activities:Operating leases
    
    $
    20,788,826
    
    
    $
    11,490,794
    
    
    $
    9,762,725Direct financing leases
    
    
    421,216
    
    
    
    605,277
    
    
    
    315,801Gain (loss) on sales of assets
    
    
    2,131,413
    
    
    
    (30,313
    )
    
    
    658,865Interest on notes receivable
    
    
    533,233
    
    
    
    348,490
    
    
    
    189,987Other revenue
    
    
    105,397
    
    
    
    301,961
    
    
    
    604,182Total revenues
    
    
    23,980,085
    
    
    
    12,716,209
    
    
    
    11,531,560Expenses:Depreciation of operating lease assets
    
    
    17,090,992
    
    
    
    9,477,669
    
    
    
    7,860,044Asset management fees to Managing Member
    
    
    1,174,983
    
    
    
    620,104
    
    
    
    686,013Acquisition expense
    
    
    512,804
    
    
    
    1,026,784
    
    
    
    1,008,112Cost reimbursements to Managing Member
    
    
    910,403
    
    
    
    658,265
    
    
    
    615,089Provision for losses and doubtful accounts
    
    
    (6,832
    )
    
    
    293,868
    
    
    
    434,635Amortization of initial direct costs
    
    
    587,414
    
    
    
    367,537
    
    
    
    345,264Amortization of loan fee
    
    
    6,000
    
    
    
    6,000
    
    
    
    6,000Interest expense
    
    
    1,599,015
    
    
    
    552,914
    
    
    
    369,396Professional fees
    
    
    403,577
    
    
    
    123,818
    
    
    
    112,769Outside services
    
    
    101,380
    
    
    
    120,796
    
    
    
    58,888Insurance
    
    
    68,197
    
    
    
    72,359
    
    
    
    60,844Other
    
    
    306,115
    
    
    
    441,618
    
    
    
    199,736Total operating expense
    
    
    22,754,048
    
    
    
    13,761,732
    
    
    
    11,756,790Other income, net
    
    
    230,660
    
    
    
    11,091
    
    
    
    Net income (loss)
    
    $
    1,456,697
    
    
    $
    (1,034,432
    )
    
    $
    (225,230
    )Net income (loss):Managing Member
    
    $
    978,032
    
    
    $
    880,049
    
    
    $
    862,142Other Members
    
    
    478,665
    
    
    
    (1,914,481
    )
    
    
    (1,087,372
    )$
    1,456,697
    
    
    $
    (1,034,432
    )
    
    $
    (225,230
    )Net income (loss) per Limited Liability
Company Unit (Other Members)
    
    $
    0.04
    
    
    $
    (0.16
    )
    
    $
    (0.09
    )Weighted average number of Units outstanding
    
    
    12,057,893
    
    
    
    12,062,469
    
    
    
    12,035,095
  18




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ATEL CAPITAL EQUIPMENT FUND IX, LLC
 STATEMENTS OF CHANGES IN MEMBERS CAPITAL
 FOR THE YEARS ENDED
 DECEMBER 31, 2005, 2004 AND 2003
 Other Members
    
    
    ManagingUnits
    
    
    Amount
    
    
    Member
    
    
    TotalBalance December 31, 2002
    
    
    11,037,141
    
    
    $
    87,549,292
    
    
    $
    
    
    
    $
    87,549,292Capital contributions
    
    
    1,028,125
    
    
    
    10,281,250
    
    
    
    
    
    
    
    10,281,250Less selling commissions to affiliates
    
    
    
    
    
    
    (976,719
    )
    
    
    
    
    
    
    (976,719
    )Other syndication costs to affiliates
    
    
    
    
    
    
    (369,317
    )
    
    
    
    
    
    
    (369,317
    )Limited Liability Company Units repurchased
    
    
    (250
    )
    
    
    (1,923
    )
    
    
    
    
    
    
    (1,923
    )Distributions to Other Members ($0.88 per Unit)
    
    
    
    
    
    
    (10,633,086
    )
    
    
    
    
    
    
    (10,633,086
    )Distributions to Managing Member
    
    
    
    
    
    
    
    
    
    
    (862,142
    )
    
    
    (862,142
    )Net income (loss)
    
    
    
    
    
    
    (1,087,372
    )
    
    
    862,142
    
    
    
    (225,230
    )Balance December 31, 2003
    
    
    12,065,016
    
    
    
    84,762,125
    
    
    
    
    
    
    
    84,762,125Other syndication costs to affiliates
    
    
    
    
    
    
    22,684
    
    
    
    
    
    
    
    22,684Limited Liability Company Units repurchased
    
    
    (6,500
    )
    
    
    (56,094
    )
    
    
    
    
    
    
    (56,094
    )Distributions to Other Members ($0.90 per Unit)
    
    
    
    
    
    
    (10,853,935
    )
    
    
    
    
    
    
    (10,853,935
    )Distributions to Managing Member
    
    
    
    
    
    
    
    
    
    
    (880,049
    )
    
    
    (880,049
    )Net income (loss)
    
    
    
    
    
    
    (1,914,481
    )
    
    
    880,049
    
    
    
    (1,034,432
    )Balance December 31, 2004
    
    
    12,058,516
    
    
    
    71,960,299
    
    
    
    
    
    
    
    71,960,299Limited Liability Company Units repurchased
    
    
    (3,500
    )
    
    
    (20,795
    )
    
    
    
    
    
    
    (20,795
    )Distributions to Other Members ($1.00 per Unit)
    
    
    
    
    
    
    (12,062,397
    )
    
    
    
    
    
    
    (12,062,397
    )Distributions to Managing Member
    
    
    
    
    
    
    
    
    
    
    (978,032
    )
    
    
    (978,032
    )Net income
    
    
    
    
    
    
    478,665
    
    
    
    978,032
    
    
    
    1,456,697Balance December 31, 2005
    
    
    12,055,016
    
    
    $
    60,355,772
    
    
    $
    
    
    
    $
    60,355,772
  19




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ATEL CAPITAL EQUIPMENT FUND IX, LLC
 STATEMENTS OF CASH FLOWS
 FOR THE YEARS ENDED
 DECEMBER 31, 2005, 2004 AND 2003
 2005
    
    
    2004
    
    
    2003Operating activities:Net income (loss)
    
    $
    1,456,697
    
    
    $
    (1,034,432
    )
    
    $
    (225,230
    )Adjustments to reconcile net income (loss) to cash provided by
operating activities:(Gain) on securities sales and foreign exchange
    
    
    
    
    
    
    (53,875
    )
    
    
    (Gain) loss on sales of lease assets
    
    
    (2,131,413
    )
    
    
    30,313
    
    
    
    (658,865
    )Depreciation of operating lease assets
    
    
    17,090,992
    
    
    
    9,477,669
    
    
    
    7,860,044Amortization of initial direct costs
    
    
    587,414
    
    
    
    367,537
    
    
    
    345,264Amortization of loan fees
    
    
    6,000
    
    
    
    6,000
    
    
    
    6,000Provision for losses and doubtful accounts
    
    
    (6,832
    )
    
    
    293,868
    
    
    
    434,635Gain on interest rate swap contracts
    
    
    (271,000
    )
    
    
    
    
    
    
    Changes in operating assets and liabilities:Due from affiliate
    
    
    8,815
    
    
    
    
    
    
    
    Accounts receivable
    
    
    222,088
    
    
    
    (462,371
    )
    
    
    (138,766
    )Prepaids and other assets
    
    
    670,162
    
    
    
    (555,238
    )
    
    
    16,783Accounts payable, Managing Member
    
    
    471,108
    
    
    
    541,800
    
    
    
    (367,179
    )Accounts payable, other
    
    
    7,074,889
    
    
    
    (581,271
    )
    
    
    662,036Deposits due lessees
    
    
    (20,040
    )
    
    
    131,017
    
    
    
    Unearned operating lease income
    
    
    441,439
    
    
    
    337,117
    
    
    
    51,884Net cash provided by operating activities
    
    
    25,600,319
    
    
    
    8,498,134
    
    
    
    7,986,606Investing activities:Purchases of equipment on operating leases
    
    
    (40,970,559
    )
    
    
    (38,082,346
    )
    
    
    (12,050,633
    )Purchases of equipment on direct financing leases
    
    
    (402,785
    )
    
    
    (4,478,953
    )
    
    
    (5,778,880
    )Proceeds from sales of lease assets
    
    
    3,888,087
    
    
    
    95,571
    
    
    
    5,370,886Receipts from (payments made to) affiliates
    
    
    
    
    
    
    4,133,210
    
    
    
    (4,142,025
    )Payments of initial direct costs
    
    
    (939,176
    )
    
    
    (748,750
    )
    
    
    (507,875
    )Reduction of net investment in direct financing leases
    
    
    2,335,541
    
    
    
    2,494,197
    
    
    
    929,968Payments received on notes receivable
    
    
    1,166,791
    
    
    
    530,537
    
    
    
    506,974Note receivable advances
    
    
    (2,628,105
    )
    
    
    (5,410,319
    )
    
    
    (46,196
    )Purchases of securities
    
    
    
    
    
    
    (62,500
    )
    
    
    Proceeds from sale of securities
    
    
    
    
    
    
    53,875
    
    
    
    Write-off of securities
    
    
    
    
    
    
    95,158
    
    
    
    Net cash used in investing activities
    
    
    (37,550,206
    )
    
    
    (41,380,320
    )
    
    
    (15,717,781
    )Financing activities:Borrowings (repayments) under acquisition facility
    
    
    (13,000,000
    )
    
    
    17,000,000
    
    
    
    Borrowings under receivables funding program
    
    
    36,502,000
    
    
    
    
    
    
    
    Capital contributions received
    
    
    
    
    
    
    
    
    
    
    10,281,250(Payment) refund of syndication costs (to) from Managing Member
    
    
    
    
    
    
    22,683
    
    
    
    (1,346,037
    )Distributions to Other Members
    
    
    (10,853,250
    )
    
    
    (10,853,935
    )
    
    
    (10,633,086
    )Distributions to Managing Member
    
    
    (978,032
    )
    
    
    (880,049
    )
    
    
    (862,142
    )Limited Liability Company Units repurchased
    
    
    (20,795
    )
    
    
    (56,093
    )
    
    
    (1,923
    )Net cash provided by (used in) financing activities
    
    
    11,649,923
    
    
    
    5,232,606
    
    
    
    (2,561,938
    )
 20




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##### Table of Contents



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 STATEMENTS OF CASH FLOWS
(CONTINUED)
 FOR THE YEARS ENDED
DECEMBER 31, 2005, 2004 AND 2003
 2005
    
    
    2004
    
    
    2003Net (decrease) increase in cash and cash equivalents
    
    
    (299,964
    )
    
    
    (27,649,580
    )
    
    
    (10,293,113
    )Cash and cash equivalents at beginning of period
    
    
    1,779,803
    
    
    
    29,429,383
    
    
    
    39,722,496Cash and cash equivalents at end of period
    
    $
    1,479,839
    
    
    $
    1,779,803
    
    
    $
    29,429,383Supplemental disclosures of cash flow information:Cash paid during the period for interest
    
    $
    1,559,001
    
    
    $
    498,054
    
    
    $
    349,319Cash paid during the period for taxes
    
    $
    68,273
    
    
    $
    94,195
    
    
    $
    72,682Schedule of non-cash transactions:Distributions declared and payable to other members at year-end
    
    $
    1,209,147
    
    
    
    
    
    
    
    Accrued equipment purchases at year end
    
    $
    78,276
    
    
    
    
    
    
    
    Change in fair value of interest rate swap contracts
    
    $
    271,000
    
    
    $
    
    
    
    $
    
  21




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##### Table of Contents



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2005
 1. Organization and Limited Liability Company matters:
       2. Summary of significant accounting policies:
 Basis of presentation:
  Use of estimates:
  Cash and cash equivalents:
  22




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##### Table of Contents



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2005
 2. Summary of significant accounting policies (continued):
 Credit risk:
  Accounts receivable:
  Direct financing leases and related revenue recognition:
    Equipment on operating leases and related revenue recognition:
   Notes receivable, unearned interest income and related revenue recognition:
   23




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##### Table of Contents



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2005
 2. Summary of significant accounting policies (continued):
  Initial direct costs:
  Acquisition expense:
  Asset valuation:
  Segment reporting:
   24




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##### Table of Contents



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2005
 2. Summary of significant accounting policies (continued):
   % of
    
    
    
    
    
    
    % of
    
    
    
    
    
    
    % of2005
    
    
    total
    
    
    2004
    
    
    total
    
    
    2003
    
    
    totalRevenue:United States
    
    $
    22,566,603
    
    
    
    94
    %
    
    $
    12,475,328
    
    
    
    98
    %
    
    $
    11,531,560
    
    
    
    100
    %United Kingdom
    
    
    1,133,758
    
    
    
    5
    %
    
    
    19,216
    
    
    
    0
    %
    
    
    
    
    
    
    0
    %Canada
    
    
    279,724
    
    
    
    1
    %
    
    
    221,665
    
    
    
    2
    %
    
    
    
    
    
    
    0
    %Total International
    
    
    1,413,482
    
    
    
    6
    %
    
    
    240,881
    
    
    
    2
    %
    
    
    
    
    
    
    0
    %Total
    
    $
    23,980,085
    
    
    
    100
    %
    
    $
    12,716,209
    
    
    
    100
    %
    
    $
    11,531,560
    
    
    
    100
    %Long-lived tangible assets:United States
    
    $
    100,957,552
    
    
    
    93
    %
    
    $
    82,415,995
    
    
    
    95
    %United Kingdom
    
    
    5,332,373
    
    
    
    5
    %
    
    
    1,703,416
    
    
    
    2
    %Canada
    
    
    2,401,580
    
    
    
    2
    %
    
    
    2,568,881
    
    
    
    3
    %Total International
    
    
    7,733,953
    
    
    
    7
    %
    
    
    4,272,297
    
    
    
    5
    %Total
    
    $
    108,691,505
    
    
    
    100
    %
    
    $
    86,688,292
    
    
    
    100
    %
 Derivative financial instruments:
    25




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##### Table of Contents



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2005
 2. Summary of significant accounting policies (continued):
 Foreign currency transactions:
  Investment in securities:
 Purchased securities
 Warrants
 Unearned operating lease income:
  Income taxes:
   2005
    
    
    2004Financial statement basis of net assets
    
    $
    60,355,772
    
    
    $
    71,960,299Tax basis of net assets (unaudited)
    
    
    60,379,776
    
    
    
    76,841,325Difference
    
    $
    24,004
    
    
    $
    4,881,026
 26




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##### Table of Contents



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2005
 2. Summary of significant accounting policies (continued):
   2005
    
    
    2004
    
    
    2003Net income (loss) per financial statements
    
    $
    1,456,697
    
    
    $
    (1,034,432
    )
    
    $
    (225,230
    )Reconciling item  impact due to prior year restatement
    
    
    
    
    
    
    775,290
    
    
    
    816,245Tax adjustments (unaudited):Adjustment to depreciation expense
    
    
    (7,030,082
    )
    
    
    (8,062,206
    )
    
    
    (6,258,019
    )Provision for losses and doubtful accounts
    
    
    6,832
    
    
    
    98,825
    
    
    
    496,347Adjustments to revenues
    
    
    643,472
    
    
    
    2,645,101
    
    
    
    1,450,188Other
    
    
    215,571
    
    
    
    
    
    
    
    Net loss per federal tax return (unaudited)
    
    $
    (4,707,510
    )
    
    $
    (5,577,422
    )
    
    $
    (3,720,469
    )
 Other income, net:
  Per unit data:
  Recent accounting pronouncements:
  27




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##### Table of Contents



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2005
 3. Concentration of credit risk and major customers:
   2005
    
    2004Manufacturing
    
    
    35
    %
    
    
    36
    %Mining
    
    
    14
    %
    
    
    26
    %Rail Transportation
    
    
    11
    %
    
    
    *Electric utilities
    
    
    10
    %
    
    
    15
    %Marine transportation
    
    
    *
    
    
    
    11
    %
 
   4. Notes receivable net:
  Year EndingDecember 31,2006
    
    $
    1,687,8262007
    
    
    1,305,7632008
    
    
    856,4082009
    
    
    2,211,1342010
    
    
    393,128Thereafter
    
    
    1,655,7748,110,033Initial direct costs paid to Managing Member, net
of accumulated amortization of $65,517
    
    
    36,517Less: portion representing interest
    
    
    (2,002,225
    )$
    6,144,325
   28




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##### Table of Contents



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2005
 5. Reserves, impairment losses and provisions for doubtful accounts:
  Notes
    
    
    AccountsReserve for
    
    
    Realized
    
    
    Receivable -
    
    
    Receivable -losses on
    
    
    losses on
    
    
    allowance for
    
    
    allowance forassets held for
    
    
    marketable
    
    
    Doubtful
    
    
    Doubtfulsale or lease
    
    
    securities
    
    
    Accounts
    
    
    Accounts
    
    
    TotalBalance December 31, 2003
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    13,000
    
    
    $
    13,000Provision for losses and doubtful accounts
    
    
    16,710
    
    
    
    95,158
    
    
    
    170,000
    
    
    
    12,000
    
    
    
    293,868(Write-offs) Recoveries
    
    
    (16,710
    )
    
    
    (95,158
    )
    
    
    (170,000
    )
    
    
    (8,333
    )
    
    
    (290,201
    )Balance December 31, 2004
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    16,667
    
    
    
    16,667Provision for losses and doubtful accounts
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (6,832
    )
    
    
    (6,832
    )(Write-offs) Recoveries
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Balance December 31, 2005
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    9,835
    
    
    $
    9,835
 6. Investment in equipment and leases, net:
  Depreciation /AmortizationExpense orAmortization of
    
    
    Reclassi-December 31,
    
    
    
    
    
    
    Direct Financing
    
    
    fications or
    
    
    December 31,2004
    
    
    Additions
    
    
    Leases
    
    
    Dispositions
    
    
    2005Net investment in
operating leases
    
    $
    71,982,630
    
    
    $
    41,048,835
    
    
    $
    (17,090,992
    )
    
    $
    (911,803
    )
    
    $
    95,028,670Net investment in direct
financing leases
    
    
    8,343,277
    
    
    
    402,785
    
    
    
    (2,335,541
    )
    
    
    (711,863
    )
    
    
    5,698,658Assets held for sale or lease
    
    
    255,159
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    255,159Initial direct costs, net of
accumulated amortization of
$1,111,410 in 2005 and
$923,928 in 2004
    
    
    1,249,448
    
    
    
    921,857
    
    
    
    (534,345
    )
    
    
    (72,267
    )
    
    
    1,564,693$
    81,830,514
    
    
    $
    42,373,477
    
    
    $
    (19,960,878
    )
    
    $
    (1,695,933
    )
    
    $
    102,547,180
   29




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##### Table of Contents



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2005
 6. Investment in equipment and leases, net (Continued):
 Impairment of investments in leases and assets held for sale or lease:
   2005
    
    
    2004
    
    
    2003Depreciation expense
    
    $
    17,090,992
    
    
    $
    9,365,801
    
    
    $
    7,798,332Impairment losses
    
    
    
    
    
    
    111,868
    
    
    
    61,712$
    17,090,992
    
    
    $
    9,477,669
    
    
    $
    7,860,044
  Operating leases:
  Reclassi-December 31,
    
    
    
    
    
    
    fications or
    
    
    December 31,2004
    
    
    Additions
    
    
    Dispositions
    
    
    2005Mining
    
    $
    40,293,704
    
    
    $
    
    
    
    $
    (22,531,308
    )
    
    $
    17,762,396Manufacturing
    
    
    14,014,799
    
    
    
    5,864,534
    
    
    
    15,711,790
    
    
    
    35,591,123Materials handling
    
    
    13,251,773
    
    
    
    12,772,346
    
    
    
    2,736,818
    
    
    
    28,760,937Marine vessels
    
    
    11,200,000
    
    
    
    740,139
    
    
    
    2,127
    
    
    
    11,942,266Transportation
    
    
    7,381,919
    
    
    
    5,036,209
    
    
    
    (50,672
    )
    
    
    12,367,456Communications
    
    
    7,124,351
    
    
    
    
    
    
    
    (6,855,198
    )
    
    
    269,153Office furniture
    
    
    1,229,069
    
    
    
    506,954
    
    
    
    
    
    
    
    1,736,023Natural gas compressors
    
    
    569,460
    
    
    
    
    
    
    
    
    
    
    
    569,460Office Automation
    
    
    
    
    
    
    2,050,396
    
    
    
    4,090,418
    
    
    
    6,140,814Construction
    
    
    
    
    
    
    619,818
    
    
    
    2,764,780
    
    
    
    3,384,598Transportation, Rail
    
    
    
    
    
    
    13,458,439
    
    
    
    (47,457
    )
    
    
    13,410,98295,065,075
    
    
    
    41,048,835
    
    
    
    (4,178,702
    )
    
    
    131,935,208Less accumulated depreciation
    
    
    (23,082,445
    )
    
    
    (17,090,992
    )
    
    
    3,266,899
    
    
    
    (36,906,538
    )$
    71,982,630
    
    
    $
    23,957,843
    
    
    $
    (911,803
    )
    
    $
    95,028,670
  30




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##### Table of Contents



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2005
 6. Investment in equipment and leases, net (Continued):
 Direct financing leases:
  2005
    
    
    2004Total minimum lease payments receivable
    
    $
    5,310,261
    
    
    $
    8,248,342Estimated residual values of leased equipment (unguaranteed)
    
    
    889,088
    
    
    
    1,048,243Investment in direct financing leases
    
    
    6,199,349
    
    
    
    9,296,585Less unearned income
    
    
    (500,691
    )
    
    
    (953,308
    )Net investment in direct financing leases
    
    $
    5,698,658
    
    
    $
    8,343,277
  DirectYear ending
    
    Operating
    
    
    FinancingDecember 31,
    
    Leases
    
    
    Leases
    
    
    Total2006
    
    $
    24,316,237
    
    
    $
    2,120,227
    
    
    $
    26,436,4642007
    
    
    18,605,053
    
    
    
    1,633,865
    
    
    
    20,238,9182008
    
    
    14,048,809
    
    
    
    1,055,294
    
    
    
    15,104,1032009
    
    
    9,514,999
    
    
    
    492,659
    
    
    
    10,007,6582010
    
    
    3,781,987
    
    
    
    8,216
    
    
    
    3,790,203Thereafter
    
    
    5,097,850
    
    
    
    
    
    
    
    5,097,850$
    75,364,935
    
    
    $
    5,310,261
    
    
    $
    80,675,196
  Equipment category
    
    Useful LifeMining
    
    
    30  40Transporation, rail
    
    
    30  35Marine Vessels
    
    
    20  30Manufacturing
    
    
    10  20Materials Handling
    
    
    7  10Transportation
    
    
    7  10Construction
    
    
    7  10Office Furniture
    
    
    7  10Natural Gas Compressors
    
    
    7  10Communications
    
    
    3  5Office automation
    
    
    3  5
 31




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##### Table of Contents



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2005
 7. Related party transactions:
      2005
    
    
    2004
    
    
    2003Selling commissions (equal to 9.5% of the selling
price of the Limited Liability Company units, deducted
from Other Members capital)
    
    $
    
    
    
    $
    
    
    
    $
    976,719Reimbursement (or refund) of other syndication costs to Managing Member
    
    
    
    
    
    
    (22,683
    )
    
    
    369,318Administrative costs reimbursed to Managing Member
    
    
    910,403
    
    
    
    658,266
    
    
    
    615,089Acquisition costs paid to Managing Member
    
    
    512,804
    
    
    
    1,026,784
    
    
    
    1,008,112Initial direct costs paid to Managing Member
    
    
    580,844
    
    
    
    414,907
    
    
    
    432,051Asset management fees to Managing Member
    
    
    1,174,983
    
    
    
    620,104
    
    
    
    686,013$
    3,179,034
    
    
    $
    2,697,378
    
    
    $
    4,087,302
    32




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##### Table of Contents



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2005
 8. Borrowing facilities:
   Total amount available under the financing arrangement
    
    $
    75,000,000Amount borrowed by the Company under the acquisition facility
    
    
    (4,000,000
    )Amounts borrowed by affiliated partnerships and limited liability
companies under the acquisition facility
    
    
    (8,500,000
    )Total remaining available under the acquisition and warehouse facilities
    
    $
    62,500,000
     33




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##### Table of Contents



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2005
 8. Borrowing facilities (Continued):
    9. Receivables funding program:
     34




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##### Table of Contents



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2005
 9. Receivables funding program (Continued):
  Notional
    
    
    Swap
    
    
    Payment RateOriginal
    
    
    Balance
    
    
    Balance
    
    
    Value
    
    
    On InterestDated
    
    Amount
    
    
    December 31,
    
    
    December 31,
    
    
    December 31,
    
    
    SwapBorrowed
    
    Borrowed
    
    
    2005
    
    
    2005
    
    
    2005
    
    
    Agreement02/14/2005
    
    $
    20,000,000
    
    
    $
    15,218,000
    
    
    $
    15,218,000
    
    
    $
    218,000
    
    
    
    3.75
    %03/22/2005
    
    
    9,892,000
    
    
    
    8,237,000
    
    
    
    8,237,000
    
    
    
    72,000
    
    
    
    4.31
    %12/15/05
    
    
    13,047,000
    
    
    
    13,047,000
    
    
    
    13,047,000
    
    
    
    (19,000
    )
    
    
    4.80
    %$
    42,939,000
    
    
    $
    36,502,000
    
    
    $
    36,502,000
    
    
    $
    271,000
  Year EndingDecember 31,2006
    
    $
    13,013,0002007
    
    
    9,456,0002008
    
    
    6,872,0002009
    
    
    5,106,0002010
    
    
    1,668,000Thereafter
    
    
    387,000$
    36,502,000
    10. Commitments:
  11. Guarantees:
   35




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##### Table of Contents



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2005
 11. Guarantees (Continued):
  12. Members capital:
   13. Fair value of financial instruments:
 Cash and cash equivalents:
  Notes receivable:
  Acquisition facility and receivables funding program:
  Interest rate swap contracts:
  14. Subsequent Event:
  36




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##### Table of Contents



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2005
 15. Selected quarterly data (unaudited):
  March 31,
    
    June 30,
    
    September 30,
    
    December 31,Quarter ended
    
    2004
    
    2004
    
    2004
    
    2004Total revenues
    
    $
    2,756,796
    
    
    $
    2,795,334
    
    
    $
    3,173,112
    
    
    $
    3,990,967Net income (loss)
    
    $
    (406,620
    )
    
    $
    (351,652
    )
    
    $
    (115,280
    )
    
    $
    (160,880
    )Net income (loss)
per Limited Liability Company
Unit (Other
members)
    
    $
    (0.05
    )
    
    $
    (0.04
    )
    
    $
    (0.02
    )
    
    $
    (0.04
    )
 March 31,
    
    June 30,2005 
    
    2005 
    
    September 30,
    
    December 31,Quarter ended
    
    Restated
    
    Restated
    
    2005
    
    2005Total revenues
    
    $
    5,119,482
    
    
    $
    5,392,460
    
    
    $
    5,553,284
    
    
    $
    7,914,859Net income (loss)
    
    $
    298,055
    
    
    $
    (224,742
    )
    
    $
    (68,601
    )
    
    $
    1,451,985Net income (loss)
per Limited Liability Company
Unit (Other
members)
    
    $
    0.01
    
    
    $
    (0.04
    )
    
    $
    (0.02
    )
    
    $
    0.10
 37




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##### Table of Contents



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2005
 15. Selected quarterly data (unaudited) (Continued):
  
    
    March 31, 2005 and the three months ended March 31, 2005
    
    June 30, 2005 and the three and six months ended June 30, 2005
 Revenue
  Initial Direct Costs to Originate or Acquire Loans and Leases
  Accrued liabilities
  Depreciation of operating lease assets
  38




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##### Table of Contents



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2005
 15. Selected quarterly data (unaudited) (Continued):
 Summary of restatement adjustments for the three months ended March 31, 2005 and the three and six
months ended June 30, 2005:
 Adjustment to
    
    Adjustment to
    
    Adjustment tonet income
    
    net income
    
    net incomeincrease
    
    increase
    
    increase(decrease)
    
    (decrease)
    
    (decrease)for the
    
    for the
    
    for theThree Months
    
    Three Months
    
    Six MonthsEnded
    
    Ended
    
    EndedMarch 31, 2005
    
    June 30, 2005
    
    June 30, 2005Revenue
    
    $
    368,650
    
    
    $
    (58,117
    )
    
    $
    310,533Acquisition expenses
    
    
    (213,296
    )
    
    
    (143,143
    )
    
    
    (356,439
    )Depreciation of operating lease assets
    
    
    (287,195
    )
    
    
    (287,195
    )
    
    
    (574,390
    )Amortization of initial direct costs
    
    
    120,121
    
    
    
    127,055
    
    
    
    247,176Cost reimbursement to Managing
Member
    
    
    (1,170
    )
    
    
    (5,648
    )
    
    
    (6,818
    )Amortization of loan fee
    
    
    (1,500
    )
    
    
    (1,500
    )
    
    
    (3,000
    )Interest expense
    
    
    47,100
    
    
    
    
    
    
    
    47,100Professional fees
    
    
    593
    
    
    
    (755
    )
    
    
    (162
    )Outside services
    
    
    (24,000
    )
    
    
    (23,819
    )
    
    
    (47,819
    )Insurance
    
    
    (8,504
    )
    
    
    (20,091
    )
    
    
    (28,595
    )Franchise fees and state taxes
    
    
    
    
    
    
    66,520
    
    
    
    66,520Other expense
    
    
    52,773
    
    
    
    25,351
    
    
    
    78,124Net change in net income and in net loss
    
    $
    53,572
    
    
    $
    (321,341
    )
    
    $
    (267,769
    )Other adjustments to Members Capital:Accrued distributions payable, Managing
Member
    
    
    (98,148
    )
    
    
    
    
    
    
    (98,148
    )Accrued distributions payable, Other
Members
    
    
    (1,210,234
    )
    
    
    22
    
    
    
    (1,210,212
    )Total accrued distributions
    
    
    (1,308,382
    )
    
    
    22
    
    
    
    (1,308,360
    )Net change in Members capital:Managing Member
    
    $
    (98,148
    )
    
    $
    
    
    
    $
    (98,148
    )Other Members
    
    
    (1,156,662
    )
    
    
    (321,319
    )
    
    
    (1,477,981
    )Total Members capital
    
    $
    (1,254,810
    )
    
    $
    (321,319
    )
    
    $
    (1,576,129
    )Net change
in Other Members capital per Limited Liability Company Unit
    
    $
    (0.10
    )
    
    $
    (0.03
    )
    
    $
    (0.13
    )
 39




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##### Table of Contents



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2005
 15. Selected quarterly data (unaudited) (Continued):
 Revenue
    IDC
    Accrued liabilities
    40




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##### Table of Contents



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2005
 15. Selected quarterly data (unaudited) (Continued):
 Depreciation of operating lease assets:
    Effect to net income/(loss) and Members capital
    Cumulative effect of restatement adjustments prior to January 1, 2005
  41




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##### Table of Contents



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2005
 15. Selected quarterly data (unaudited) (Continued):
 The following tables reflect the impacted financial statement line items resulting from the
restatement for the three months ended March 31, 2005 and the three and six months ended June 30,
2005:
 Balance Sheets line items that have been restated as of:
 March 31, 2005
    
    June 30, 2005As reported
    
    Restated
    
    As reported
    
    RestatedAssets:Accounts receivable
    
    
    1,676,250
    
    
    
    2,044,901
    
    
    
    2,589,753
    
    
    
    2,900,286Notes receivable
    
    $
    4,668,064
    
    
    $
    4,736,387
    
    
    $
    4,161,849
    
    
    $
    4,211,034Other assets
    
    
    860,634
    
    
    
    918,618
    
    
    
    188,569
    
    
    
    226,799Investments in equipment and
leases, net
    
    
    90,623,926
    
    
    
    88,279,466
    
    
    
    89,509,858
    
    
    
    86,898,199Total assets
    
    
    104,261,908
    
    
    
    102,412,406
    
    
    
    99,593,244
    
    
    
    97,379,533Liabilities:Accounts payable Managing Member:
    
    
    802,208
    
    
    
    1,746,122
    
    
    
    209,101
    
    
    
    1,157,163Accounts payable Other
    
    
    82,780
    
    
    
    1,463,354
    
    
    
    712,447
    
    
    
    2,045,983Total liabilities
    
    
    32,071,025
    
    
    
    34,395,513
    
    
    
    30,238,842
    
    
    
    32,520,440Members capital:Other Members
    
    
    72,190,883
    
    
    
    68,016,893
    
    
    
    69,354,402
    
    
    
    64,859,093Total Members capital
    
    
    72,190,883
    
    
    
    68,016,893
    
    
    
    69,354,402
    
    
    
    64,859,093Total liabilities and Members capital
    
    $
    104,261,908
    
    
    $
    102,412,406
    
    
    $
    99,593,244
    
    
    $
    97,379,533
 42




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##### Table of Contents



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2005
 15. Selected quarterly data (unaudited) (Continued):
 Statements of Operations line items that have been restated for the following periods:
 Three Months EndedMarch 31, 2005As reported
    
    RestatedOperating lease revenue
    
    $
    4,454,579
    
    
    $
    4,823,229Reclassification adjustments
    
    
    
    
    
    
    (33,033
    )Total Revenues
    
    
    4,783,865
    
    
    
    5,119,482Expenses:Acquisition expense
    
    
    
    
    
    
    213,296Depreciation of operating lease
assets
    
    
    3,487,660
    
    
    
    3,774,855Amortization of initial direct costs
    
    
    264,139
    
    
    
    144,018Cost reimbursement to Managing
Member
    
    
    200,811
    
    
    
    201,981Amortization of loan fee
    
    
    
    
    
    
    1,500Interest expense
    
    
    287,887
    
    
    
    240,787Professional fees
    
    
    35,101
    
    
    
    34,508Outside services
    
    
    
    
    
    
    24,000Insurance
    
    
    
    
    
    
    8,504Other
    
    
    110,448
    
    
    
    57,675Total expenses before
reclassifications
    
    
    4,539,382
    
    
    
    4,854,460Reclassification adjustments
    
    
    
    
    
    
    123,000Total expenses
    
    
    
    
    
    
    4,977,460Other income (expense), net before
reclassifications
    
    
    Reclassification adjustments
    
    
    
    
    
    
    156,033Total other income (expense), net
    
    
    
    
    
    
    156,033Net income (loss)
    
    
    244,483
    
    
    
    298,055Net income (loss):Other Members
    
    
    24,502
    
    
    
    78,074Net income
(loss) per Limited Liability Company Unit
    
    $
    0.00
    
    
    $
    0.00
 43




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##### Table of Contents



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2005
 15. Selected quarterly data (unaudited) (Continued):
 Statements of Cash Flows line items that have been restated for the following periods:
 Three Months EndedMarch 31, 2005As reported
    
    RestatedOperating activities:Net income (loss)
    
    $
    244,483
    
    
    $
    298,055Adjustment to reconcile net income (loss) to net
cash provided by operating activities:Amortization of initial direct costs
    
    
    264,139
    
    
    
    144,018Depreciation of operating lease assets
    
    
    3,487,660
    
    
    
    3,774,855Changes in operating assets and liabilities:Accounts receivable
    
    
    100,980
    
    
    
    (267,671
    )Other assets
    
    
    (2,170
    )
    
    
    (17,573
    )Accounts payable, Managing Member
    
    
    605,490
    
    
    
    420,061Accounts payable, other
    
    
    (3,960
    )
    
    
    1,222,470Net cash provided by operating activities
    
    
    5,597,717
    
    
    
    6,475,311Investing activities:Purchases of equipment on operating leases
    
    
    (10,449,039
    )
    
    
    (10,448,500
    )Payments of initial direct costs to Managing Member
    
    
    (756,672
    )
    
    
    (Payments) recoveries of initial direct lease costs
    
    
    
    
    
    
    (326,423
    )Payments received on notes receivable
    
    
    316,109
    
    
    
    Reduction (increase) in net investment in notes
receivable
    
    
    
    
    
    
    451,319Note receivable advances
    
    
    (126,395
    )
    
    
    (261,605
    )Net cash used in investing activities
    
    
    (10,677,222
    )
    
    
    (10,246,434
    )Financing activities:Distributions declared and payable to Other Members
    
    
    (2,713,098
    )
    
    
    (3,923,332
    )Distribution to Managing Member
    
    
    (219,981
    )
    
    
    (318,129
    )Net cash provided by (used in) financing activities
    
    $
    9,600,921
    
    
    $
    8,292,539
 44




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##### Table of Contents



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2005
 15. Selected quarterly data (unaudited) (Continued):
 Statements of Operations line items that have been restated for the following periods:
 Three Months Ended
    
    Six Months EndedJune 30, 2005
    
    June 30, 2005As reported
    
    Restated
    
    As reported
    
    RestatedOperating leases
    
    $
    5,138,795
    
    
    $
    5,080,678
    
    
    $
    9,593,374
    
    
    $
    9,903,908Reclassification adjustments
    
    
    
    
    
    
    79,494
    
    

    
    

    
    
    
    46,461Total Revenues
    
    
    5,371,083
    
    
    
    5,392,460
    
    
    
    10,154,948
    
    
    
    10,511,942Expenses:Acquisition expense
    
    
    
    
    
    
    143,143
    
    
    
    
    
    
    
    356,439Amortization of initial direct costs
    
    
    271,866
    
    
    
    144,811
    
    
    
    536,005
    
    
    
    288,829Depreciation of operating lease
assets
    
    
    3,899,919
    
    
    
    4,187,114
    
    
    
    7,387,579
    
    
    
    7,961,969Cost reimbursement to Managing
Member
    
    
    223,511
    
    
    
    229,159
    
    
    
    424,322
    
    
    
    431,140Amortization of loan fee
    
    
    
    
    
    
    1,500
    
    
    
    
    
    
    
    3,000Interest expense
    
    
    406,492
    
    
    
    406,492
    
    
    
    694,379
    
    
    
    647,279Professional fees
    
    
    28,609
    
    
    
    29,364
    
    
    
    63,710
    
    
    
    63,872Outside services
    
    
    
    
    
    
    23,819
    
    
    
    
    
    
    
    47,819Franchise fees and state taxes
    
    
    66,520
    
    
    
    
    
    
    
    68,274
    
    
    
    Insurance
    
    
    
    
    
    
    20,091
    
    
    
    
    
    
    
    28,595Other
    
    
    84,986
    
    
    
    59,635
    
    
    
    193,680
    
    
    
    117,309Total expenses before
reclassifications
    
    
    5,274,484
    
    
    
    5,537,709
    
    
    
    9,813,866
    
    
    
    10,392,169Reclassification adjustments
    
    
    
    
    
    
    (91,700
    )
    
    
    
    


    
    
    31,300Total expenses
    
    
    
    
    
    
    5,446,009
    
    
    
    

    
    
    
    10,423,469Other income (expense), net before
reclassifications
    
    
    
    
    
    

    
    
    
    
    
    
    
    
    Reclassification adjustments
    
    
    
    
    
    
    (171,193
    )
    
    
    
    
    
    
    (15,160
    )Total other income (expense), net
    
    
    
    
    
    
    (171,193
    )
    
    
    
    
    
    
    (15,160
    )Net income (loss)
    
    
    96,599
    
    
    
    (224,742
    )
    
    
    341,082
    
    
    
    73,313Net income (loss):Other Members
    
    
    (123,382
    )
    
    
    (444,723
    )
    
    
    (98,880
    )
    
    
    (366,649
    )Net income
(loss) per Limited Liability Company Unit
    
    $
    (0.01
    )
    
    $
    (0.04
    )
    
    $
    (0.01
    )
    
    $
    (0.04
    )
 45




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##### Table of Contents



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2005
 15. Selected quarterly data (unaudited) (Continued):
 Statements of Cash Flows line items that have been restated for the following periods:
 Three Months Ended
    
    Six Months EndedJune 30, 2005
    
    June 30, 2005As reported
    
    Restated
    
    As reported
    
    RestatedOperating activities:Net income (loss)
    
    $
    96,599
    
    
    $
    (224,743
    )
    
    $
    341,082
    
    
    $
    73,312Adjustment to reconcile net income (loss) to net cash
provided by operating activities:Amortization of initial direct costs
    
    
    271,866
    
    
    
    144,811
    
    
    
    536,005
    
    
    
    288,829Depreciation of operating lease assets
    
    
    3,899,919
    
    
    
    4,187,114
    
    
    
    7,387,579
    
    
    
    7,961,969Gain on sale of securities
    
    
    
    
    
    
    (6,250
    )
    
    
    
    
    
    
    (6,250
    )Changes in operating assets and liabilities:Accounts receivable
    
    
    (898,836
    )
    
    
    840,719
    
    
    
    (797,856
    )
    
    
    (1,108,390
    )Other assets
    
    
    672,065
    
    
    
    691,821
    
    
    
    669,895
    
    
    
    674,248Accounts payable, Managing Member
    
    
    (593,107
    )
    
    
    (588,958
    )
    
    
    12,383
    
    
    
    (168,897
    )Accounts payable, other
    
    
    629,668
    
    
    
    582,628
    
    
    
    (625,708
    )
    
    
    1,805,098Net cash provided by operating activities
    
    
    3,595,050
    
    
    
    3,471,395
    
    
    
    9,192,767
    
    
    
    9,946,706Investing activities:Purchases of equipment on operating leases
    
    
    (3,805,229
    )
    
    
    (3,769,816
    )
    
    
    (14,254,268
    )
    
    
    (14,218,316
    )Proceeds from sale of leased assets and notes receivable
    
    
    633,915
    
    
    
    649,668
    
    
    
    633,915
    
    
    
    649,668(Payments) recoveries of initial direct lease costs
    
    
    (201,462
    )
    
    
    (75,264
    )
    
    
    (958,134
    )
    
    
    (401,687
    )Reduction of net investment in direct financing leases
    
    
    561,757
    
    
    
    513,694
    
    
    
    1,275,712
    
    
    
    1,227,649Payments received on notes receivable
    
    
    294,930
    
    
    
    
    
    
    
    611,039
    
    
    
    Reduction (increase) in net investment in notes
receivable
    
    
    
    
    
    
    291,828
    
    
    
    
    
    
    
    743,147Proceeds from sale of securities
    
    
    
    
    
    
    6,250
    
    
    
    
    
    
    
    6,250Investment in notes receivable
    
    
    
    
    
    
    
    
    
    
    (126,395
    )
    
    
    Net cash used in investing activities
    
    
    (2,507,274
    )
    
    
    (2,383,640
    )
    
    
    (13,184,496
    )
    
    
    (12,630,074
    )Financing activities:Distributions to Other Members
    
    
    (2,713,099
    )
    
    
    (2,713,099
    )
    
    
    (5,426,197
    )
    
    
    (6,636,431
    )Distribution to Managing Member
    
    
    (219,981
    )
    
    
    (219,960
    )
    
    
    (439,962
    )
    
    
    (538,089
    )Net cash provided by (used in) financing activities
    
    $
    (4,277,080
    )
    
    $
    (4,277,059
    )
    
    $
    5,323,841
    
    
    $
    4,015,480
 
 46




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##### Table of Contents



Item 9.
    
    CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ACCOUNTING AND FINANCIAL DISCLOSURES
  
 Item 9A. CONTROLS AND PROCEDURES
 Evaluation of disclosure controls and procedures
   Changes in internal control
        47




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##### Table of Contents



PART III
 
 Item 10. DIRECTORS AND EXECUTIVE OFFICERS
     Dean L. Cash
    
    President and Chief Executive Officer of ATEL Financial Services, LLC (Managing Member)Paritosh K. Choksi
    
    Executive Vice President and Chief Financial and Operating Officer of ATEL Financial
Services, LLC (Managing Member)Vasco H. Morais
    
    Senior Vice President, Secretary and General Counsel of ATEL Financial Services, LLC
(Managing Member)
    48




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##### Table of Contents



Audit Committee
  Section 16(a) Beneficial Ownership Reporting Compliance
  Code of Ethics
  
 Item 11. EXECUTIVE COMPENSATION
   Asset Management Fee
   Asset Management Fee Limit:
   49




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##### Table of Contents



Alternative Fee Schedule:
       Managing Members Interest in Operating Proceeds
  50




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##### Table of Contents



Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
 Security Ownership of Certain Beneficial Owners
  Security Ownership of Management
  (1)
    
    (2)
    
    (3)
    
    (4)Name and Address of Beneficial
    
    Amount and Nature of BeneficialTitle of Class
    
    Owner
    
    Ownership
    
    Percent of ClassLimited Liability
    
    ATEL Capital Group
    
    Initial Limited Liability
    
    
    0.0004
    %Company Units
    
    600 California Street, 6th Floor
    
    Company UnitsSan Francisco, CA 94108
    
    50 Units ($500)
 Changes in Control
   
 Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
  
 Item 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
  2005
    
    
    2004Audit fees
    
    $
    331,113
    
    
    $
    155,243Audit related fees
    
    
    
    
    
    
    Tax fees
    
    
    46,328
    
    
    
    29,838Other
    
    
    
    
    
    
    $
    377,441
    
    
    $
    185,081
   51




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##### Table of Contents



PART IV
 
 Item 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K
 (a)
    
    Financial Statements and Schedules1.
    
    Financial StatementsIncluded in Part II of this report:Report of Independent Registered Public Accounting FirmBalance Sheets at December 31, 2005 and 2004Statements of operations for the years ended December 31, 2005, 2004 and 2003Statements of Changes in Members Capital for the years ended December 31, 2005, 2004 and 2003Statements of Cash Flows for the years ended December 31, 2005, 2004 and 2003Notes to Financial Statements2.
    
    Financial Statement SchedulesAll 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.(b)
    
    Exhibits(3) and (4) Amended and Restated Limited Liability Company Agreement, included as Exhibit B to the Prospectus
included in the registrants registration statement on form S-1 effective January 16, 2001, (File Number
333-47196) is hereby incorporated herein by reference this reference.(14.1) Code of Ethics(31.1) Rule 13a-14(a)/ 15d-14(a) Certification of Paritosh K. Choksi(31.2) Rule 13a-14(a)/ 15d-14(a) Certification of Dean L. Cash(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
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##### Table of Contents



SIGNATURES
   ATEL Capital Equipment Fund IX, LLC(Registrant)By:
    
    ATEL Financial Services, LLC,
Managing Member of RegistrantBy:
    
    /s/ Dean L. Cash

Dean CashPresident and Chief Executive Officer ofATEL Financial Services, LLC (Managing Member)By:
    
    /s/ Paritosh K. Choksi

Paritosh K. ChoksiExecutive Vice President and Chief Financial and Operating Officer ofATEL Financial Services, LLC (Managing Member)
  SIGNATURE
    
    CAPACITIES
    
    DATE/s/ Dean L. Cash
 Dean
Cash
    
    President and Chief Executive Officer of

ATEL Financial Services, LLC (Managing Member)
    
    12/21/2006/s/ Paritosh K. Choksi
 Paritosh
K. Choksi
    
    Executive Vice President and Chief Financial and Operating Officer of

ATEL Financial Services, LLC (Managing Member)
    
    12/21/2006
  53