##### 



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 Form 10-K/A
 þ
    
    Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
 For the year ended December 31, 2004
 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
 þ o
 o
 
 o o þ
 o þ
     DOCUMENTS INCORPORATED BY REFERENCE




---



##### 



PART I
 Item 1. BUSINESS
 General Development of Business
     Narrative Description of Business
      Lessee
    
    Type of Equipment
    
    2004
    
    
    2003
    
    
    2002Basin Electric
    
    Walking dragline
    
    
    14
    %
    
    
    14
    %
    
    
    23
    %Graham Offshore Inc.
    
    Off shore supply vessels
    
    
    10
    %
    
    
    11
    %
    
    
    17
    %General Electric Aircraft Engines
    
    Machine tools
    
    
    
    *

    
    
    15
    %
    
    
    11
    %
 
 *
    
    Less than 10% 2




---



##### 



Equipment Leasing Activities
  Purchase Price Excluding
    
    
    Percentage of TotalAsset Types
    
    Acquisition Fees
    
    
    AcquisitionsMining equipment
    
    $
    40,453,231
    
    
    
    34.28
    %Materials handling
    
    
    27,459,946
    
    
    
    23.26
    %Manufacturing
    
    
    21,328,915
    
    
    
    18.07
    %Marine vessels
    
    
    11,200,000
    
    
    
    9.49
    %Communications
    
    
    7,156,818
    
    
    
    6.06
    %Office automation
    
    
    4,037,055
    
    
    
    3.42
    %Aircraft
    
    
    2,680,000
    
    
    
    2.27
    %Furniture and fixtures
    
    
    2,363,419
    
    
    
    2.00
    %Natural gas compressors
    
    
    696,451
    
    
    
    0.59
    %Test equipment
    
    
    662,866
    
    
    
    0.56
    %$
    118,038,701
    
    
    
    100.00
    %
 Purchase Price Excluding
    
    
    Percentage of TotalIndustry of Lessee
    
    Acquisition Fees
    
    
    AcquisitionsManufacturing
    
    $
    47,322,281
    
    
    
    40.09
    %Mining
    
    
    29,137,836
    
    
    
    24.68
    %Electric utilities
    
    
    11,315,397
    
    
    
    9.59
    %Marine transportation
    
    
    11,200,000
    
    
    
    9.49
    %Communications
    
    
    7,016,446
    
    
    
    5.94
    %Health Services
    
    
    4,411,028
    
    
    
    3.74
    %Land Transportation
    
    
    3,081,360
    
    
    
    2.61
    %Air transportation
    
    
    2,680,000
    
    
    
    2.27
    %Retail
    
    
    1,177,902
    
    
    
    1.00
    %Oil and gas
    
    
    696,451
    
    
    
    0.59
    %$
    118,038,701
    
    
    
    100.00
    %
 3




---



##### 



Original
    
    
    
    
    
    
    Excess of RentsAsset Types
    
    Equipment Cost
    
    
    Sale Price
    
    
    Over Expenses*Manufacturing
    
    $
    5,633,271
    
    
    $
    5,205,964
    
    
    $
    1,518,072Test equipment
    
    
    1,454,642
    
    
    
    74,807
    
    
    
    1,837,570Office automation
    
    
    1,273,682
    
    
    
    781,101
    
    
    
    629,794Furniture and fixtures
    
    
    169,601
    
    
    
    
    
    
    
    204,860Other
    
    
    173,833
    
    
    
    116,988
    
    
    
    145,407$
    8,705,029
    
    
    $
    6,178,860
    
    
    $
    4,335,703
 
 *
    
    Includes only those expenses directly related to the production of the related rents.  Item 2. PROPERTIES
  Item 3. LEGAL PROCEEDINGS
  Silicon Access Networks, Inc.:
   Photuris, Inc.:
  Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  4




---



##### 



PART II
 Item 5. MARKET FOR REGISTRANTS LIMITED LIABILITY COMPANY UNITS AND RELATED MATTERS
 Market Information
  Holders
  Distributions
       2004
    
    
    2003
    
    
    2002
    
    
    2001Net (loss) income per Unit,
based on weighted average Units
outstanding (Restated)
    
    $
    (0.16
    )
    
    $
    (0.09
    )
    
    $
    (0.07
    )
    
    $
    0.22Return of investment (Restated)
    
    
    1.06
    
    
    
    0.97
    
    
    
    0.90
    
    
    
    0.34Distributions per Unit, based on
weighted average Units
outstanding,
    
    
    0.90
    
    
    
    0.88
    
    
    
    0.83
    
    
    
    0.56Differences due to timing of
distributions
    
    
    
    
    
    
    0.02
    
    
    
    0.07
    
    
    
    0.17Actual distribution rates, per Unit
    
    $
    0.90
    
    
    $
    0.90
    
    
    $
    0.90
    
    
    $
    0.73
 5




---



##### 



Item 6. SELECTED FINANCIAL DATA
  2004
    
    2003
    
    2002
    
    2001
    
    2000Restated
    
    Restated
    
    Restated
    
    RestatedRevenues
    
    $
    12,727,300
    
    
    $
    11,531,560
    
    
    $
    7,073,495
    
    
    $
    3,393,685
    
    
    $
    Net (loss) income
    
    $
    (1,034,432
    )
    
    $
    (225,230
    )
    
    $
    (50,850
    )
    
    $
    625,132
    
    
    $
    Weighted average Units outstanding
    
    
    12,062,469
    
    
    
    12,035,095
    
    
    
    7,280,533
    
    
    
    2,167,171
    
    
    
    50Net (loss) income allocated to Other
Members
    
    $
    (1,914,481
    )
    
    $
    (1,087,372
    )
    
    $
    (538,604
    )
    
    $
    526,753
    
    
    $
    Net (loss) income per Unit, based on
weighted average Units outstanding
    
    $
    (0.16
    )
    
    $
    (0.09
    )
    
    $
    (0.07
    )
    
    $
    0.24
    
    
    $
    Distributions per Unit, based on
weighted average Units outstanding
    
    $
    0.90
    
    
    $
    0.88
    
    
    $
    0.83
    
    
    $
    0.56
    
    
    $
    Total Assets
    
    $
    91,160,186
    
    
    $
    86,533,350
    
    
    $
    88,973,776
    
    
    $
    36,933,834
    
    
    $
    600Total Members Capital
    
    $
    71,960,299
    
    
    $
    84,762,125
    
    
    $
    87,549,292
    
    
    $
    36,349,172
    
    
    $
    600
 Item 7. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
   Restated Financial Results
 Initial Direct Costs to Originate or Acquire Loans and Leases
   6




---



##### 



Syndication Costs
  Accrued liabilities
      Effect to net income/(loss) and Members capital
    Capital Resources and Liquidity
  7




---



##### 



Total amount available under the financing arrangement
    
    $
    75,000,000Term loan to AFS as of December 31, 2004
    
    
    (2,027,636
    )Total available under the acquisition and warehouse facilities
    
    
    72,972,364Amount borrowed by the Company under the acquisition facility
    
    
    (17,000,000
    )Amounts borrowed by affiliated partnerships and limited liability
companies under the acquisition facility
    
    
    (13,500,000
    )Total remaining available under the acquisition and warehouse facilities
    
    $
    42,472,364
         8




---



##### 



Cash Flows
 2004 vs. 2003 (Restated):
   9




---



##### 



2003 vs. 2002 (Restated):
      Results of Operations
   10




---



##### 



2004
    
    2003Manufacturing
    
    
    36
    %
    
    
    40
    %Mining
    
    
    26
    %
    
    
    17
    %Electric utilities
    
    
    15
    %
    
    
    23
    %Marine transportation
    
    
    11
    %
    
    
    17
    %
  Utilization of equipment purchased by year
    
    2004
    
    2003
    
    20022004
    
    
    99
    %
    
    
    
    
    
    
    2003
    
    
    100
    %
    
    
    100
    %
    
    
    2002
    
    
    100
    %
    
    
    100
    %
    
    
    100
    %
  2004 vs. 2003 (Restated):
       11




---



##### 



2003 vs. 2002(Restated):
          Derivative Financial Instruments
    12




---



##### 



Recent Accounting Pronouncements
    (i)
    
    Special purpose entities (SPEs) created prior to February 1, 2003. The Company must apply
either the provisions of FIN 46 or early adopt the provisions of FIN 46-R at the end of the
first interim or annual reporting period ending after December 15, 2003.
 (ii)
    
    Non-SPEs created prior to February 1, 2003. The Company is required to adopt FIN 46-R at the
end of the first interim or annual reporting period ending after March 15, 2004.
 (iii)
    
    All entities, regardless of whether a SPE, that were created subsequent to January 31, 2003.
The provisions of FIN 46 were applicable for variable interests in entities obtained after
January 31, 2003.
  Critical Accounting Policies
  Equipment on operating leases:
  Direct financing leases:
    13




---



##### 



Initial direct costs:
  Use of estimates:
  Asset valuation:
  Acquisition Expense:
  14




---



##### 



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




---



##### 



16




---



##### 



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 BALANCE SHEETS
 DECEMBER 31, 2004 AND 2003
 (Restated)
 2004
    
    
    2003ASSETSCash and cash equivalents
    
    $
    1,779,803
    
    
    $
    29,429,383Due from affiliate
    
    
    8,815
    
    
    
    4,142,025Accounts receivable, net of allowance for
doubtful accounts of $16,667 in 2004 and
$13,000 in 2003
    
    
    1,782,230
    
    
    
    1,323,526Notes receivable
    
    
    4,857,778
    
    
    
    268,196Other assets
    
    
    838,548
    
    
    
    289,310Investment in securities
    
    
    62,498
    
    
    
    95,158Investment in equipment and leases, net
    
    
    81,830,514
    
    
    
    50,985,752Total assets
    
    $
    91,160,186
    
    
    $
    86,533,350LIABILITIES AND MEMBERS CAPITALAccounts payable:Managing Member
    
    $
    1,326,061
    
    
    $
    784,261Other
    
    
    240,884
    
    
    
    858,035Accrued interest expense
    
    
    35,880
    
    
    
    Deposits due lessees
    
    
    131,017
    
    
    
    Line of credit obligation
    
    
    17,000,000
    
    
    
    Unearned operating lease income
    
    
    466,045
    
    
    
    128,929Total liabilities
    
    
    19,199,887
    
    
    
    1,771,225Members capital:Managing Member
    
    
    
    
    
    
    Other Members
    
    
    71,960,299
    
    
    
    84,762,125Total Members capital
    
    
    71,960,299
    
    
    
    84,762,125Total liabilities and Members capital
    
    $
    91,160,186
    
    
    $
    86,533,350
  17




---



##### 



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 STATEMENTS OF OPERATIONS
 FOR THE YEARS ENDED
DECEMBER 31, 2004, 2003 AND 2002
 (Restated)
 2004
    
    
    2003
    
    
    2002Revenues:Leasing activities:Operating leases
    
    $
    11,490,794
    
    
    $
    9,762,725
    
    
    $
    6,269,908Direct financing leases
    
    
    605,277
    
    
    
    315,801
    
    
    
    114,980Gain (loss) on sales of assets
    
    
    (30,313
    )
    
    
    658,865
    
    
    
    107,353Gain on securities sales and foreign exchange
    
    
    64,966
    
    
    
    
    
    
    
    Interest
    
    
    591,984
    
    
    
    741,634
    
    
    
    579,486Other
    
    
    4,592
    
    
    
    52,535
    
    
    
    1,76812,727,300
    
    
    
    11,531,560
    
    
    
    7,073,495Expenses:Depreciation of operating lease assets
    
    
    9,477,669
    
    
    
    7,798,332
    
    
    
    5,019,123Asset management fees to Managing Member
    
    
    620,104
    
    
    
    686,013
    
    
    
    264,322Acquisition expense
    
    
    1,026,784
    
    
    
    1,008,112
    
    
    
    610,751Cost reimbursements to Managing Member
    
    
    658,265
    
    
    
    615,089
    
    
    
    344,362Provision for losses and doubtful accounts
    
    
    293,868
    
    
    
    496,347
    
    
    
    Amortization of initial direct costs
    
    
    367,537
    
    
    
    345,264
    
    
    
    172,759Amortization of loan fee
    
    
    6,000
    
    
    
    6,000
    
    
    
    3,000Interest expense
    
    
    552,914
    
    
    
    369,396
    
    
    
    344,739Professional fees
    
    
    244,614
    
    
    
    112,769
    
    
    
    103,988Insurance
    
    
    72,359
    
    
    
    60,844
    
    
    
    (9,214
    )Other
    
    
    441,618
    
    
    
    258,624
    
    
    
    270,51513,761,732
    
    
    
    11,756,790
    
    
    
    7,124,345Net loss
    
    $
    (1,034,432
    )
    
    $
    (225,230
    )
    
    $
    (50,850
    )Net income (loss):Managing Member
    
    $
    880,049
    
    
    $
    862,142
    
    
    $
    487,754Other Members
    
    
    (1,914,481
    )
    
    
    (1,087,372
    )
    
    
    (538,604
    )$
    (1,034,432
    )
    
    $
    (225,230
    )
    
    $
    (50,850
    )Net loss per Limited Liability Company Unit
(Other Members)
    
    $
    (0.16
    )
    
    $
    (0.09
    )
    
    $
    (0.07
    )Weighted average number of Units outstanding
    
    
    12,062,469
    
    
    
    12,035,095
    
    
    
    7,280,533
  18




---



##### 



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 STATEMENTS OF CHANGES IN MEMBERS CAPITAL
 FOR THE YEARS ENDED
DECEMBER 31, 2004, 2003 AND 2002
 (Restated)
 ManagingOther Members
    
    
    Member
    
    
    TotalUnits
    
    
    AmountBalance December 31, 2001, as previously reported
    
    
    4,363,409
    
    
    $
    36,550,603
    
    
    $
    
    
    
    $
    36,550,603Cumulative effect of prior period adjustments
(see Note 3)
    
    
    (1,500
    )
    
    
    (201,431
    )
    
    
    
    
    
    
    (201,431
    )Balance December 31, 2001, as restated
    
    
    4,361,909
    
    
    
    36,349,172
    
    
    
    
    
    
    
    36,349,172Capital contributions, as restated
    
    
    6,675,232
    
    
    
    66,752,320
    
    
    
    
    
    
    
    66,752,320Less selling commissions to affiliates
    
    
    
    
    
    
    (6,340,045
    )
    
    
    
    
    
    
    (6,340,045
    )Other syndication costs to affiliates, as restated
    
    
    
    
    
    
    (2,657,924
    )
    
    
    
    
    
    
    (2,657,924
    )Distributions to Other Members ($0.83 per Unit)
    
    
    
    
    
    
    (6,015,627
    )
    
    
    
    
    
    
    (6,015,627
    )Distributions to Managing Member
    
    
    
    
    
    
    
    
    
    
    (487,754
    )
    
    
    (487,754
    )Net income (loss), as restated
    
    
    
    
    
    
    (538,604
    )
    
    
    487,754
    
    
    
    (50,850
    )Balance December 31, 2002, as restated
    
    
    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, as restated
    
    
    
    
    
    
    (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), as restated
    
    
    
    
    
    
    (1,087,372
    )
    
    
    862,142
    
    
    
    (225,230
    )Balance December 31, 2003, as restated
    
    
    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), as restated
    
    
    
    
    
    
    (1,914,481
    )
    
    
    880,049
    
    
    
    (1,034,432
    )Balance December 31, 2004, as restated
    
    
    12,058,516
    
    
    $
    71,960,299
    
    
    $
    
    
    
    $
    71,960,299
  19




---



##### 



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 STATEMENTS OF CASH FLOWS
 FOR THE YEARS ENDED
DECEMBER 31, 2004, 2003 AND 2002
 (Restated)
 2004
    
    
    2003
    
    
    2002Operating activities:Net loss
    
    $
    (1,034,432
    )
    
    $
    (225,230
    )
    
    $
    (50,850
    )Adjustments to reconcile net loss to cash provided by operating activities:Gain on securities sales and foreign exchange
    
    
    (53,875
    )
    
    
    
    
    
    
    (Gain) loss on sales of lease assets
    
    
    30,313
    
    
    
    (658,865
    )
    
    
    (107,353
    )Depreciation of operating lease assets
    
    
    9,477,669
    
    
    
    7,798,332
    
    
    
    5,019,123Amortization of initial direct costs
    
    
    367,537
    
    
    
    345,264
    
    
    
    172,759Amortization of loan fees
    
    
    6,000
    
    
    
    6,000
    
    
    
    3,000Provision for losses and doubtful accounts
    
    
    293,868
    
    
    
    496,347
    
    
    
    Residual value income
    
    
    
    
    
    
    
    
    
    
    (201
    )Changes in operating assets and liabilities:Other assets
    
    
    (555,238
    )
    
    
    16,783
    
    
    
    (503,231
    )Accounts receivable
    
    
    (462,371
    )
    
    
    (138,766
    )
    
    
    (11,041
    )Accounts payable, Managing Member
    
    
    541,800
    
    
    
    (367,179
    )
    
    
    721,533Accounts payable, other
    
    
    (617,151
    )
    
    
    662,036
    
    
    
    136,862Accrued interest payable
    
    
    35,880
    
    
    
    
    
    
    
    Deposits due lessees
    
    
    131,017
    
    
    
    
    
    
    
    Unearned operating lease income
    
    
    337,117
    
    
    
    51,884
    
    
    
    (18,574
    )Net cash provided by operating activities
    
    
    8,498,134
    
    
    
    7,986,606
    
    
    
    5,362,027Investing activities:Purchases of equipment on operating leases
    
    
    (38,082,346
    )
    
    
    (12,050,633
    )
    
    
    (29,878,151
    )Purchases of equipment on direct financing leases
    
    
    (4,478,953
    )
    
    
    (5,778,880
    )
    
    
    (995,270
    )Proceeds from sales of lease assets
    
    
    95,571
    
    
    
    5,370,886
    
    
    
    749,408Receipts from (payments made to) affiliates
    
    
    4,133,210
    
    
    
    (4,142,025
    )
    
    
    Payments of initial direct costs to Managing Member
    
    
    (748,750
    )
    
    
    (507,875
    )
    
    
    (481,890
    )Reduction of net investment in direct financing leases
    
    
    2,494,197
    
    
    
    929,968
    
    
    
    220,691Payments received on notes receivable
    
    
    530,537
    
    
    
    506,974
    
    
    
    958,258Note receivable advances
    
    
    (5,410,319
    )
    
    
    (46,196
    )
    
    
    (1,031,605
    )Purchases of securities
    
    
    (62,500
    )
    
    
    
    
    
    
    Write-off of securities
    
    
    95,158
    
    
    
    
    
    
    
    Proceeds from sale of securities
    
    
    53,875
    
    
    
    
    
    
    
    Net cash used in investing activities
    
    
    (41,380,320
    )
    
    
    (15,717,781
    )
    
    
    (30,458,559
    )Financing activities:Borrowings under line of credit
    
    
    17,000,000
    
    
    
    
    
    
    
    Capital contributions received
    
    
    
    
    
    
    10,281,250
    
    
    
    66,752,320(Payment) refund of syndication costs (to) from Managing Member
    
    
    22,683
    
    
    
    (1,346,037
    )
    
    
    (8,997,969
    )Distributions to Other Members
    
    
    (10,853,935
    )
    
    
    (10,633,086
    )
    
    
    (6,015,627
    )Distributions to Managing Member
    
    
    (880,049
    )
    
    
    (862,142
    )
    
    
    (487,754
    )Limited Liability Company Units repurchased
    
    
    (56,093
    )
    
    
    (1,923
    )
    
    
    Net cash provided by (used in) financing activities
    
    
    5,232,606
    
    
    
    (2,561,938
    )
    
    
    51,250,970
 20




---



##### 



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 STATEMENTS OF CASH FLOWS
(CONTINUED)
 FOR THE YEARS ENDED
DECEMBER 31, 2004, 2003 AND 2002
 (Restated)
 2004
    
    
    2003
    
    
    2002Net (decrease) increase in cash and cash equivalents
    
    
    (27,649,580
    )
    
    
    (10,293,113
    )
    
    
    26,154,438Cash and cash equivalents at beginning of period
    
    
    29,429,383
    
    
    
    39,722,496
    
    
    
    13,568,058Cash and cash equivalents at end of period
    
    $
    1,779,803
    
    
    $
    29,429,383
    
    
    $
    39,722,496Supplemental disclosures of cash flow information:Cash paid during the period for interest
    
    $
    498,054
    
    
    $
    349,319
    
    
    $
    336,696
  21




---



##### 



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2004
 (Restated)
 1. Organization and Limited Liability Company matters:
      2. Summary of significant accounting policies:
 Basis of presentation:
  Use of estimates:
  Cash and cash equivalents:
  Accounts receivable:
  22




---



##### 



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2004
 (Restated)
 2. Summary of significant accounting policies (continued):
 Investment in notes receivable:
  Equipment on operating leases:
  Initial direct costs:
  Income taxes:
   2004
    
    
    2003Financial statement basis of net assets, as restated
    
    $
    71,960,299
    
    
    $
    84,762,125Tax basis of net assets (unaudited)
    
    
    76,841,325
    
    
    
    94,208,823Difference
    
    $
    4,881,026
    
    
    $
    9,446,698
   2004
    
    
    2003
    
    
    2002Net loss per financial statements, as restated
    
    $
    (1,034,432
    )
    
    $
    (225,230
    )
    
    $
    (50,850
    )Reconciling item  impact due to restatement (Note 3)
    
    
    775,290
    
    
    
    816,245
    
    
    
    654,000Tax adjustments (unaudited):Adjustment to depreciation expense
    
    
    (8,062,206
    )
    
    
    (6,258,019
    )
    
    
    (4,486,980
    )Provision for losses and doubtful accounts
    
    
    98,825
    
    
    
    496,347
    
    
    
    Adjustments to lease revenues
    
    
    2,645,101
    
    
    
    1,450,188
    
    
    
    (64,120
    )Net loss per federal tax return (unaudited)
    
    $
    (5,577,422
    )
    
    $
    (3,720,469
    )
    
    $
    (3,947,950
    )
 23




---



##### 



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2004
 (Restated)
 2. Summary of significant accounting policies (continued):
 Per unit data:
  Asset valuation:
 Accounting for the
Impairment or Disposal of Long-Lived Assets
   Credit risk:
  Derivative financial instruments:
    24




---



##### 



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2004
 (Restated)
 2. Summary of significant accounting policies (continued):
 Revenue recognition:
 Direct financing leases
    Acquisition Expense:
  Recent accounting pronouncements:
        25




---



##### 



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2004
 (Restated)
 3. Restated financial results:
  Initial Direct Costs to Originate or Acquire Loans and Leases
  Syndication Costs
  Accrued liabilities
     26




---



##### 



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2004
 (Restated)
 3. Restated financial results (continued):
    Effect to net income/(loss) and Members capital
     27




---



##### 



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2004
 (Restated)
 3. Restated financial results (continued):
 Restatement adjustments for years ended December 31:
 Adjustment
    
    
    Adjustment
    
    
    Adjustment to
    
    
    Cumulativeto net loss
    
    
    to net income
    
    
    net income
    
    
    adjustment(increase)
    
    
    increase
    
    
    increase
    
    
    prior todecrease
    
    
    (decrease)
    
    
    (decrease)
    
    
    January 1,2004
    
    
    2003
    
    
    2002
    
    
    2002Acquisition expenses
    
    $
    (1,026,784
    )
    
    $
    (1,008,112
    )
    
    $
    (610,751
    )
    
    $
    116,654Amortization of initial direct costs
    
    
    361,307
    
    
    
    146,113
    
    
    
    (13,795
    )
    
    
    (13,250
    )Cost reimbursement to Managing Member
    
    
    21,780
    
    
    
    12,231
    
    
    
    (1,242
    )
    
    
    (32,768
    )Amortization of loan fee
    
    
    (6,000
    )
    
    
    (6,000
    )
    
    
    (3,000
    )
    
    
    Interest expense
    
    
    (18,980
    )
    
    
    (20,077
    )
    
    
    (8,043
    )
    
    
    Professional fees
    
    
    5,867
    
    
    
    (6,602
    )
    
    
    (4,258
    )
    
    
    Insurance
    
    
    (48,929
    )
    
    
    43,744
    
    
    
    9,214
    
    
    
    Other expense
    
    
    (63,551
    )
    
    
    22,458
    
    
    
    (22,125
    )
    
    
    (29,680
    )Net change in net income and in net loss
    
    
    (775,290
    )
    
    
    (816,245
    )
    
    
    (654,000
    )
    
    
    40,956Other syndication costs to affiliates
    
    
    
    
    
    
    (59,940
    )
    
    
    (427,274
    )
    
    
    (227,387
    )Adjustment to Other Members capital
    
    
    
    
    
    
    
    
    
    
    15,000
    
    
    
    (15,000
    )Effect of prior period
adjustments
    
    $
    (775,290
    )
    
    $
    (876,185
    )
    
    $
    (1,066,274
    )
    
    $
    (201,431
    )Net change in Members capital:Managing Member
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Other Members
    
    
    (775,290
    )
    
    
    (876,185
    )
    
    
    (1,066,274
    )
    
    
    (201,431
    )Total Members capital
    
    $
    (775,290
    )
    
    $
    (876,185
    )
    
    $
    (1,066,274
    )
    
    $
    (201,431
    )Net change in Other Members capital
per Limited Liability Company Unit
    
    $
    (0.07
    )
    
    $
    (0.07
    )
    
    $
    (0.15
    )
    
    $
    (0.09
    )
 Balance Sheets (Condensed) as of December 31:
 2004
    
    2003As reported
    
    Restated
    
    As reported
    
    RestatedAssets:Other assets
    
    $
    858,464
    
    
    $
    838,548
    
    
    $
    310,158
    
    
    $
    289,310Investments in securities
    
    
    
    
    
    
    62,498
    
    
    
    
    
    
    
    95,158Investments in equipment and leases, net
    
    $
    83,508,789
    
    
    $
    81,830,514
    
    
    $
    52,057,199
    
    
    $
    50,985,752Total assets
    
    $
    92,795,879
    
    
    $
    91,160,186
    
    
    $
    87,530,487
    
    
    $
    86,533,350Liabilities:Accounts payable Managing Member:
    
    $
    196,718
    
    
    $
    1,326,061
    
    
    $
    18,804
    
    
    $
    784,261Accounts payable Other
    
    $
    86,740
    
    
    $
    240,884
    
    
    $
    476,740
    
    
    $
    858,035Total liabilities
    
    $
    17,916,400
    
    
    $
    19,199,887
    
    
    $
    624,472
    
    
    $
    1,771,225Members capital:Other Members
    
    $
    74,879,479
    
    
    $
    71,960,299
    
    
    $
    86,906,015
    
    
    $
    84,762,125Total Members capital
    
    $
    74,879,479
    
    
    $
    71,960.299
    
    
    $
    86,906,015
    
    
    $
    84,762,125Total liabilities and Members capital
    
    $
    92,795,879
    
    
    $
    91,160,186
    
    
    $
    87,530,487
    
    
    $
    86,533,350
 28




---



##### 



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2004
 (Restated)
 3. Restated financial results (continued):
 Statements of Operations (Condensed) for the years ended December 31:
 2004
    
    2003
    
    2002As reported
    
    Restated
    
    As reported
    
    Restated
    
    As reported
    
    RestatedRevenues
    
    $
    12,727,300
    
    
    $
    12,727,300
    
    
    $
    11,531,560
    
    
    $
    11,531,560
    
    
    $
    7,073,495
    
    
    $
    7,073,495Expenses:Acquisition expense
    
    $
    
    
    
    $
    1,026,784
    
    
    $
    
    
    
    $
    1,008,112
    
    
    $
    
    
    
    $
    610,751Amortization of initial
direct costs
    
    $
    728,843
    
    
    $
    367,537
    
    
    $
    491,376
    
    
    $
    345,264
    
    
    $
    158,964
    
    
    $
    172,759Cost reimbursement to
Managing Member
    
    $
    680,045
    
    
    $
    658,265
    
    
    $
    627,320
    
    
    $
    615,089
    
    
    $
    343,120
    
    
    $
    344,362Amortization of loan fee
    
    $
    
    
    
    $
    6,000
    
    
    $
    
    
    
    $
    6,000
    
    
    $
    
    
    
    $
    3,000Interest expense
    
    $
    533,934
    
    
    $
    552,914
    
    
    $
    349,319
    
    
    $
    369,396
    
    
    $
    336,696
    
    
    $
    344,739Professional fees
    
    $
    250,481
    
    
    $
    244,614
    
    
    $
    106,167
    
    
    $
    112,769
    
    
    $
    99,730
    
    
    $
    103,988Insurance
    
    $
    23,430
    
    
    $
    72,359
    
    
    $
    104,588
    
    
    $
    60,844
    
    
    $
    
    
    
    $
    (9,214
    )Other
    
    $
    378,068
    
    
    $
    441,618
    
    
    $
    281,083
    
    
    $
    258,624
    
    
    $
    248,390
    
    
    $
    270,515Total expenses
    
    $
    12,986,442
    
    
    $
    13,761,732
    
    
    $
    10,940,545
    
    
    $
    11,756,790
    
    
    $
    6,470,345
    
    
    $
    7,124,345Net income (loss)
    
    $
    (259,142
    )
    
    $
    (1,034,432
    )
    
    $
    591,015
    
    
    $
    (225,230
    )
    
    $
    603,150
    
    
    $
    (50,850
    )Net income (loss):Other Members
    
    $
    (1,139,191
    )
    
    $
    (1,914,481
    )
    
    $
    (271,127
    )
    
    $
    (1,087,372
    )
    
    $
    115,396
    
    
    $
    (538,604
    )Net income (loss) per
Limited Liability
Company Unit
    
    $
    (0.09
    )
    
    $
    (0.16
    )
    
    $
    (0.02
    )
    
    $
    (0.09
    )
    
    $
    0.02
    
    
    $
    (0.07
    )
 29




---



##### 



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2004
 (Restated)
 3. Restated financial results (continued):
 Statements of Cash Flows (Condensed) for the years ended December 31:
 2004
    
    2003
    
    2002As reported
    
    Restated
    
    As reported
    
    Restated
    
    As reported
    
    RestatedOperating activities:Net income (loss)
    
    $
    (259,142
    )
    
    $
    (1,034,432
    )
    
    $
    591,015
    
    
    $
    (225,230
    )
    
    $
    603,150
    
    
    $
    (50,850
    )Adjustment to reconcile net income
(loss) to net cash provided by
operating activities:Amortization of initial direct costs
    
    $
    728,843
    
    
    $
    367,537
    
    
    $
    491,376
    
    
    $
    345,264
    
    
    $
    158,964
    
    
    $
    172,759Amortization of loan fees
    
    $
    
    
    
    $
    6,000
    
    
    $
    
    
    
    
    6,000
    
    
    
    
    
    
    
    3,000Changes in operating assets and
liabilities:Other assets
    
    $
    (485,807
    )
    
    $
    (555,238
    )
    
    $
    59,999
    
    
    $
    16,783
    
    
    $
    (465,157
    )
    
    $
    (503,231
    )Accounts payable, Managing Member
    
    $
    177,914
    
    
    $
    541,800
    
    
    $
    (415,712
    )
    
    $
    (367,179
    )
    
    $
    276,797
    
    
    $
    721,533Accounts payable, other
    
    $
    (390,000
    )
    
    $
    (617,151
    )
    
    $
    386,073
    
    
    $
    662,036
    
    
    $
    66,196
    
    
    $
    136,862Net cash provided by operating
activities
    
    $
    9,561,426
    
    
    $
    8,498,134
    
    
    $
    8,661,683
    
    
    $
    7,986,606
    
    
    $
    5,521,904
    
    
    $
    5,362,027Investing activities:Purchases of equipment on operating
leases
    
    $
    (38,395,198
    )
    
    $
    (38,082,346
    )
    
    $
    (11,777,539
    )
    
    $
    (12,050,633
    )
    
    $
    (29,839,551
    )
    
    $
    (29,878,151
    )Payments of initial direct lease
costs to Managing Member
    
    $
    (1,404,033
    )
    
    $
    (748,750
    )
    
    $
    (1,515,987
    )
    
    $
    (507,875
    )
    
    $
    (1,092,641
    )
    
    $
    (481,890
    )Write-off of securities
    
    $
    
    
    
    $
    95,158
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $Net cash used in investing activities
    
    $
    (42,443,612
    )
    
    $
    (41,380,320
    )
    
    $
    (16,452,799
    )
    
    $
    (15,717,781
    )
    
    $
    (31,030,710
    )
    
    $
    (30,458,559
    )Financing activities:Capital contributions
    
    $
    
    
    
    $
    
    
    
    $
    10,281,250
    
    
    $
    10,281,250
    
    
    $
    66,767,320
    
    
    $
    66,752,320(Payment) refund of syndication
costs (to) from Managing Member
    
    $
    22,683
    
    
    $
    22,683
    
    
    $
    (1,286,096
    )
    
    $
    (1,346,037
    )
    
    $
    (8,570,695
    )
    
    $
    (8,997,969
    )Net cash provided by (used in)
financing activities
    
    $
    5,232,606
    
    
    $
    5,232,606
    
    
    $
    (2,501,997
    )
    
    $
    (2,561,938
    )
    
    $
    51,663,244
    
    
    $
    51,250,970
 30




---



##### 



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2004
 (Restated)
 4. Investment in equipment and leases, net:
  Depreciation /AmortizationExpense orAmortization of
    
    
    Reclassi-December 31,
    
    
    
    
    
    
    Direct Financing
    
    
    fications or
    
    
    December 31,2003
    
    
    Additions
    
    
    Leases
    
    
    Dispositions
    
    
    2004Restated
    
    
    Restated
    
    
    Restated
    
    
    
    
    
    
    
    
    
    
    RestatedNet investment in
operating leases
    
    $
    43,755,131
    
    
    $
    37,832,346
    
    
    $
    (9,477,669
    )
    
    
    
    
    
    $
    (127,178
    )
    
    $
    71,982,630Net investment in direct
financing leases
    
    
    6,357,227
    
    
    
    4,478,953
    
    
    
    (2,494,197
    )
    
    
    
    
    
    
    1,294
    
    
    
    8,343,277Assets held for sale or lease
    
    
    5,159
    
    
    
    250,000
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    255,159Initial direct costs, net of
accumulated amortization of
$923,928 in 2004 and
$556,170 in 2003, as
restated
    
    
    868,235
    
    
    
    748,750
    
    
    
    (367,537
    )
    
    
    
    
    
    
    
    
    
    
    1,249,448$
    50,985,752
    
    
    $
    43,310,049
    
    
    $
    (12,339,403
    )
    
    
    
    
    
    $
    (125,884
    )
    
    $
    81,830,514
 Impairment of investments in leases and assets held for sale or lease:
   2004
    
    
    2003
    
    
    2002Depreciation expense
    
    $
    9,477,669
    
    
    $
    7,798,332
    
    
    $
    5,019,123Impairment losses
    
    
    
    
    
    
    61,712
    
    
    
    $
    9,477,669
    
    
    $
    7,860,044
    
    
    $
    5,019,123
  31




---



##### 



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2004
 (Restated)
 4. Investment in equipment and leases, net (continued):
 Operating leases:
  Reclassi-December 31,
    
    
    
    
    
    
    fications or
    
    
    December 31,2003
    
    
    Additions
    
    
    Dispositions
    
    
    2004Mining
    
    $
    25,521,984
    
    
    $
    14,771,720
    
    
    $
    
    
    
    $
    40,293,704Manufacturing
    
    
    10,749,546
    
    
    
    4,246,291
    
    
    
    (981,038
    )
    
    
    14,014,799Materials handling
    
    
    5,879,564
    
    
    
    6,675,177
    
    
    
    697,032
    
    
    
    13,251,773Marine vessels
    
    
    11,200,000
    
    
    
    
    
    
    
    
    
    
    
    11,200,000Transportation
    
    
    
    
    
    
    7,381,919
    
    
    
    
    
    
    
    7,381,919Communications
    
    
    3,033,933
    
    
    
    4,090,418
    
    
    
    
    
    
    
    7,124,351Office furniture
    
    
    562,248
    
    
    
    666,821
    
    
    
    
    
    
    
    1,229,069Natural gas compressors
    
    
    621,508
    
    
    
    
    
    
    
    (52,048
    )
    
    
    569,46057,568,783
    
    
    
    37,832,346
    
    
    
    (336,054
    )
    
    
    95,065,075Less accumulated depreciation
    
    
    (13,813,652
    )
    
    
    (9,477,669
    )
    
    
    208,876
    
    
    
    (23,082,445
    )$
    43,755,131
    
    
    $
    28,354,677
    
    
    $
    (127,178
    )
    
    $
    71,982,630
  Direct financing leases:
  2004
    
    
    2003Total minimum lease payments receivable
    
    $
    8,248,342
    
    
    $
    6,752,281Estimated residual values of leased equipment (unguaranteed)
    
    
    1,048,243
    
    
    
    649,809Investment in direct financing leases
    
    
    9,296,585
    
    
    
    7,402,090Less unearned income
    
    
    (953,308
    )
    
    
    (1,044,863
    )Net investment in direct financing leases
    
    $
    8,343,277
    
    
    $
    6,357,227
 32




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##### 



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2004
 (Restated)
 4. Investment in equipment and leases, net (continued):
  DirectOperating
    
    FinancingYear ending December 31,
    
    Leases
    
    Leases
    
    Total2005
    
    $
    16,703,784
    
    $
    2,881,912
    
    $
    19,585,6962006
    
    
    15,057,193
    
    
    2,301,634
    
    
    17,358,8272007
    
    
    9,398,145
    
    
    1,653,624
    
    
    11,051,7692008
    
    
    5,837,295
    
    
    984,876
    
    
    6,822,1712009
    
    
    4,147,171
    
    
    426,296
    
    
    4,573,467Thereafter
    
    
    497,291
    
    
    
    
    
    497,291$
    51,640,879
    
    $
    8,248,342
    
    $
    59,889,221
  Equipment category
    
    Useful LifeMining
    
    30  40Marine Vessels
    
    20  30Manufacturing
    
    10  20Materials Handling
    
    7  10Transportation
    
    7  10Office Furniture
    
    7  10Natural Gas Compressors
    
    7  10Communications
    
    3    5
 5. Notes receivable:
  Year ending December 31,2005
    
    $
    1,798,8992006
    
    
    1,365,3132007
    
    
    822,5982008
    
    
    457,0302009
    
    
    1,818,0066,261,846Less portion representing interest
    
    
    (1,404,068
    )$
    4,857,778
 6. Related party transactions:
  33




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##### 



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2004
 (Restated)
 6. Related party transactions (continued):
     2004
    
    
    2003
    
    
    2002Restated
    
    
    Restated
    
    
    RestatedSelling commissions (equal to 9.5% of the selling
price of the Limited Liability Company units, deducted
from Other Members capital)
    
    $
    
    
    
    $
    976,719
    
    
    $
    6,340,045Reimbursement of other syndication costs to Managing Member, as restated
    
    
    (22,683
    )
    
    
    369,318
    
    
    
    2,657,923Administrative costs reimbursed to Managing Member, as restated
    
    
    658,266
    
    
    
    615,089
    
    
    
    344,362Acquisition costs paid to Managing Member, as restated
    
    
    1,026,784
    
    
    
    1,008,112
    
    
    
    610,751Initial direct costs paid to Managing Member, as restated
    
    
    748,750
    
    
    
    507,875
    
    
    
    481,890Asset management fees to Managing Member
    
    
    620,104
    
    
    
    686,013
    
    
    
    264,322$
    3,031,221
    
    
    $
    4,163,126
    
    
    $
    10,699,293
   7. Members capital:
   34




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##### 



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2004
 (Restated)
 8. Concentration of credit risk and major customers:
   2004
    
    2003Manufacturing
    
    
    36
    %
    
    
    40
    %Mining
    
    
    26
    %
    
    
    17
    %Electric utilities
    
    
    15
    %
    
    
    23
    %Marine transportation
    
    
    11
    %
    
    
    17
    %
  9. Line of credit:
  Total amount available under the financing arrangement
    
    $
    75,000,000Term loan to AFS as of December 31, 2004
    
    
    (2,027,636
    )Total available under the acquisition and warehouse facilities
    
    
    72,972,364Amount borrowed by the Company under the acquisition facility
    
    
    (17,000,000
    )Amounts borrowed by affiliated partnerships and limited liability
companies under the acquisition facility
    
    
    (13,500,000
    )Total remaining available under the acquisition and warehouse facilities
    
    $
    42,472,364
    35




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##### 



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2004
 (Restated)
 10. Fair value of financial instruments:
  Notes receivable:
  Line of credit:
  11. Selected quarterly data (unaudited):
   36




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##### 



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2004
 (Restated)
 11. Selected quarterly data (unaudited) (continued):
  March 31,
    
    June 30,
    
    September 30,
    
    December 31,2003
    
    2003
    
    2003
    
    2003Quarter ended
    
    Restated
    
    Restated
    
    Restated
    
    RestatedTotal revenues
    
    $
    2,440,826
    
    
    $
    2,808,832
    
    
    $
    2,801,887
    
    
    $
    3,480,015Net income (loss)
    
    $
    (175,855
    )
    
    $
    (182,126
    )
    
    $
    (287,409
    )
    
    $
    420,160Net income (loss)
per Limited
Liability Company
Unit
    
    $
    (0.03
    )
    
    $
    (0.03
    )
    
    $
    (0.04
    )
    
    $
    0.01
 March 31,
    
    June 30,
    
    September 30,
    
    December 31,2004
    
    2004
    
    2004
    
    2004Quarter ended
    
    Restated
    
    Restated
    
    Restated
    
    RestatedTotal revenues
    
    $
    2,756,796
    
    
    $
    2,795,334
    
    
    $
    3,173,112
    
    
    $
    4,002,058Net income (loss),
    
    $
    (406,620
    )
    
    $
    (351,652
    )
    
    $
    (115,280
    )
    
    $
    (160,880
    )Net loss per
Limited Liability
Company Unit
    
    $
    (0.05
    )
    
    $
    (0.05
    )
    
    $
    (0.03
    )
    
    $
    (0.03
    )
 12. Commitments:
  13. Credit facility:
   37




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##### 



ATEL CAPITAL EQUIPMENT FUND IX, LLC
 NOTES TO FINANCIAL STATEMENTS
 DECEMBER 31, 2004
 (Restated)
 14. 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, 2002
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Provision for losses and
doubtful accounts
    
    
    61,712
    
    
    
    95,000
    
    
    
    326,635
    
    
    
    13,000
    
    
    
    496,347Write-offs
    
    
    (61,712
    )
    
    
    (95,000
    )
    
    
    (326,635
    )
    
    
    
    
    
    
    (483,347
    )Balance December 31, 2003
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    13,000
    
    
    
    13,000Provision for losses and
doubtful accounts
    
    
    16,710
    
    
    
    95,158
    
    
    
    170,000
    
    
    
    12,000
    
    
    
    293,868Write-offs
    
    
    (16,710
    )
    
    
    (95,158
    )
    
    
    (170,000
    )
    
    
    (8,333
    )
    
    
    (290,201
    )Balance December 31, 2004
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    16,667
    
    
    $
    16,667
 15. Guarantees:
  38




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##### 



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
       39




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##### 



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
    40




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##### 



Audit Committee
  Section 16(a) Beneficial Ownership Reporting Compliance
  Code of Ethics
  Item 11. EXECUTIVE COMPENSATION
   Asset Management Fee
   Asset Management Fee Limit:
   Alternative Fee Schedule:
 41




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##### 



Managing Members Interest in Operating Proceeds
  Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
 Security Ownership of Certain Beneficial Owners
  Security Ownership of Management
  (2)
    
    (3)(1)
    
    Name and Address of Beneficial
    
    Amount and Nature of
    
    (4)Title of Class
    
    Owner
    
    Beneficial Ownership
    
    Percent of ClassLimited Liability
Company Units
    
    ATEL Capital Group
600 California Street, 6th Floor
San Francisco, CA 94108
    
    Initial Limited Liability
Company Units
50 Units ($500)
    
    
    0.0004
    %
 Changes in Control
 42




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##### 



Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
  43




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##### 



Item 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
  2004
    
    
    2003Audit fees
    
    $
    155,243
    
    
    $
    37,889Audit related fees
    
    
    
    
    
    
    Tax fees
    
    
    29,838
    
    
    
    19,150Other
    
    
    
    
    
    
    $
    185,081
    
    
    $
    57,039
   44




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##### 



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, 2004 and 2003Statements of operations for the years ended December 31, 2004, 2003 and 2002Statement of Changes in Members Capital for the years ended December 31, 2004, 2003 and 2002Statement of Cash Flows for the years ended December 31, 2004, 2003 and 2002Notes 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)
    
    Exhibits3) 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
 
 45




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##### 



SIGNATURES
   ATEL Capital Equipment Fund IX, LLC
(Registrant)By:
    
    ATEL Financial Services, LLC,Managing Member of RegistrantBy:
    
    /s/ Dean L. CashDean CashPresident and Chief Executive Officer of
ATEL Financial Services, LLC (Managing Member)By:
    
    /s/ Paritosh K. ChoksiParitosh K. ChoksiExecutive Vice President and Chief Financial and Operating Officer of
ATEL Financial Services, LLC (Managing Member)
  SIGNATURE
    
    CAPACITIES
    
    DATE/s/ Dean L. Cash
    
    President and Chief Executive Officer of
    
    7/17/2006Dean Cash
    
    ATEL Financial Services, LLC (Managing Member)/s/ Paritosh K. Choksi
    
    Executive Vice President and Chief Financial and Operating Officer of
    
    7/17/2006Paritosh K. Choksi
    
    ATEL Financial Services, LLC (Managing Member)
  46