United States
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-Q
  þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
 For the quarterly period ended September 30, 2008
 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 333-149881
 LEAF EQUIPMENT FINANCE FUND 4, L.P.
  Delaware
    
    61-1552209(State or other jurisdiction of 
incorporation or organization)
    
    (I.R.S. Employer Identification No.)
 
 
 o þ
  Large accelerated filer o

   

   Accelerated filer
o

   

   Non-accelerated filer   o
(Do not check if a smaller reporting company)

 

 Smaller reporting company
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 o þ




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LEAF EQUIPMENT FINANCE FUND 4, L.P.
INDEX TO QUARTERLY REPORT
ON FORM 10-Q
 PAGEPART I FINANCIAL INFORMATIONITEM 1. Financial StatementsBalance Sheet  September 30, 2008 (unaudited)
    
    
    3Statements of Operations

Three Months Ended September 30, 2008 and January 25, 2008 (Date of
Formation) to September 30, 2008 (unaudited)
    
    
    4Statement of Partners Capital

January 25, 2008 (Date of Formation) to September 30, 2008 (unaudited)
    
    
    5Statement of Cash Flows

January 25, 2008 (Date of Formation) to September 30, 2008 (unaudited)
    
    
    6Notes to Financial Statements  September 30, 2008 (unaudited)
    
    
    7ITEM 2. Managements Discussion and Analysis of Financial Condition
and Results of Operations
    
    
    14ITEM 4. Controls and Procedures
    
    
    20PART II OTHER INFORMATIONITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    21ITEM 6. Exhibits
    
    
    22SIGNATURES
    
    
    23
  2




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PART I. FINANCIAL INFORMATION
 
 Item 1. Financial Statements
 LEAF EQUIPMENT FINANCE FUND 4, L.P.
 
 BALANCE SHEET
 (in thousands)
 September 30,2008(unaudited)ASSETSCash
    
    $
    1,347Restricted cash
    
    
    14Investment in direct financing leases and notes, net
    
    
    11,136Investment in operating leases
    
    
    407$
    12,904LIABILITIES AND PARTNERS CAPITALLiabilities:Accounts payable and accrued expenses
    
    $
    489Due to related party
    
    
    920Security deposits
    
    
    399Total liabilities
    
    
    1,808Partners CapitalGeneral partner
    
    
    1Limited partners
    
    
    11,095Total partners capital
    
    
    11,096$
    12,904
  3




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LEAF EQUIPMENT FINANCE FUND 4, L.P.
 
 STATEMENTS OF OPERATIONS
 (in thousands, except unit data)
 (unaudited)
 Three
    
    
    January 25, 2008Months
    
    
    (Date of Formation)Ended
    
    
    to September 30,September 30, 2008
    
    
    2008RevenueInterest on equipment financings
    
    $
    3
    
    
    $
    3Expenses:General and administrative expenses
    
    
    1
    
    
    
    1Net income
    
    $
    2
    
    
    $
    2Weighted average number of limited partner units outstanding during the period**
    
    
    103,188
    
    
    
    n/mNet income per weighted average limited partner unit
    
    
    0.02
    
    
    
    n/m
 
 *
    
    Commencement of operations was September 16, 2008.**
    
    For the period September 16, 2008 (commencement of operations) through September 30, 2008.  4




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LEAF EQUIPMENT FINANCE FUND 4, L.P.
 
 STATEMENT OF PARTNERS CAPITAL
 JANUARY 25, 2008 (DATE OF FORMATION) TO SEPTEMBER 30, 2008
 (in thousands, except unit data)
 (unaudited)
 General
    
    
    
    
    
    
    
    
    
    
    PartnersPartner
    
    
    Limited Partners
    
    
    CapitalAmount
    
    
    Units
    
    
    Amount
    
    
    TotalBalance at January 25, 2008
    
    $
    
    
    
    
    
    
    
    $
    
    
    
    $
    General Partners Contribution
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    1Limited Partners contributions
    
    
    
    
    
    
    127,507
    
    
    
    12,750
    
    
    
    12,750Offering costs related to the
sale of Limited Partnership units
    
    
    
    
    
    
    
    
    
    
    (1,657
    )
    
    
    (1,657
    )Net income*
    
    
    
    
    
    
    
    
    
    
    2
    
    
    
    2Balance at September 30, 2008
    
    $
    1
    
    
    
    127,507
    
    
    $
    11,095
    
    
    $
    11,096
 
 *
    
    Commencement of operations was September 16, 2008.  5




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LEAF EQUIPMENT FINANCE FUND 4, L.P.
 
 STATEMENT OF CASH FLOWS
 (unaudited)
 (in thousands)
 January 25, 2008(Date of Formation)to September 30,2008Cash flows from operating activities:Net income
    
    $
    2Adjustments
to reconcile net income to net cash provided by operating activities:Changes in operating assets and liabilities:Accounts payable and accrued expenses
    
    
    4Due to related parties, net
    
    
    575Net cash provided by operating activities
    
    
    581Cash flows from investing activities:Investment in direct financing leases and notes
    
    
    (10,268
    )Proceeds from direct financing leases and notes
    
    
    16Investment in equipment under operating leases, net
    
    
    (407
    )Net cash used in investing activities
    
    
    (10,659
    )Cash flows from financing activities:Increase in restricted cash
    
    
    (14
    )General Partners capital contribution
    
    
    1Limited Partners capital contributions
    
    
    12,750Payment of offering costs incurred for the sale of partnership units
    
    
    (1,312
    )Net cash provided by financing activities
    
    
    11,425Increase in cash
    
    
    1,347Cash, beginning of period
    
    
    Cash, end of period
    
    $
    1,347
  6




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LEAF EQUIPMENT FINANCE FUND 4, L.P.
 
 NOTES TO FINANCIAL STATEMENTS
 September 30, 2008
 (unaudited)
 NOTE 1 - ORGANIZATION AND NATURE OF BUSINESS
      NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Basis of Presentation
  7




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LEAF EQUIPMENT FINANCE FUND 4, L.P.
NOTES TO FINANCIAL STATEMENTS  (Continued)
September 30, 2008
(unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (Continued)
 Use of Estimates
     Concentration of Credit Risk
    Revenue Recognition
  8




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LEAF EQUIPMENT FINANCE FUND 4, L.P.
NOTES TO FINANCIAL STATEMENTS  (Continued)
September 30, 2008
(unaudited)
 NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Continued)
 Revenue Recognition  (Continued)
 Direct Financing Leases.
 Operating Leases.
 Notes Receivable.
  Income Taxes
  9




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LEAF EQUIPMENT FINANCE FUND 4, L.P.
NOTES TO FINANCIAL STATEMENTS  (Continued)
September 30, 2008
(unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (Continued)
 Recently Issued Accounting Pronouncements
    Fair Value of Financial Instruments
   NOTE 3  RESTRICTED CASH
  10




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LEAF EQUIPMENT FINANCE FUND 4, L.P.
NOTES TO FINANCIAL STATEMENTS  (Continued)
September 30, 2008
(unaudited)
 NOTE 4 - INVESTMENT IN LEASES AND NOTES
  September 30,2008Direct financing leases
    
    $
    2,630Notes receivable
    
    
    8,506$
    11,136
  September 30,2008Total future minimum lease payments
    
    $
    2,940Unearned rental income
    
    
    (412
    )Residuals, net of unearned residual income
    
    
    102$
    2,630
  Direct FinancingPeriods Ending September 30,
    
    Leases
    
    
    Notes
    
    
    Operating Leases
    
    
    Total2009
    
    $
    759
    
    
    $
    3,801
    
    
    $
    128
    
    
    $
    4,6882010
    
    
    733
    
    
    
    2,544
    
    
    
    127
    
    
    
    3,4042011
    
    
    662
    
    
    
    1,045
    
    
    
    105
    
    
    
    1,8122012
    
    
    493
    
    
    
    549
    
    
    
    21
    
    
    
    1,0632013
    
    
    229
    
    
    
    233
    
    
    
    10
    
    
    
    472Thereafter
    
    
    64
    
    
    
    334
    
    
    
    18
    
    
    
    416$
    2,940
    
    
    $
    8,506
    
    
    $
    409
    
    
    $
    11,855
 11




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LEAF EQUIPMENT FINANCE FUND 4, L.P.
NOTES TO FINANCIAL STATEMENTS  (Continued)
September 30, 2008
(unaudited)
 NOTE 5  TRANSACTIONS WITH AFFILIATES
         12




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LEAF EQUIPMENT FINANCE FUND 4, L.P.
NOTES TO FINANCIAL STATEMENTS  (Continued)
September 30, 2008
(unaudited)
 NOTE 5  TRANSACTIONS WITH AFFILIATES  (Continued)
  January 25,2008(Date ofFormation) toSeptember 30,2008Acquisition fees
    
    $
    150Organization and offering expense allowance
    
    
    382Underwriting Fees
    
    
    1,275
 
 *
    
    Operations commenced September 16, 2008  NOTE 6 - ALLOCATION OF PARTNERSHIP INCOME, LOSS AND CASH DISTRIBUTIONS
   NOTE 7  NET INCOME PER LIMITED PARTNERSHIP UNIT
  13




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ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS   (unaudited)
 When used in this Form 10-Q, the words believes anticipates, expects and similar
expressions are intended to identify forward-looking statements. These risks and uncertainties
could cause actual results to differ materially. Readers are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the date hereof. We undertake no
obligation to publicly release the results of any revisions to forward-looking statements which we
may make to reflect events or circumstances after the date of this Form 10-Q or to reflect the
occurrence of unanticipated events.
 OVERVIEW
   
    
    500 or fewer employees;
    
    $1.0 billion or less in total assets; or
    
    $100.0 million or less in total annual sales.
    14




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Our Lease Portfolio
  Direct Financing Leases and Notes
 September 30, 2008NetType of Equipment
    
    Investment
    
    
    PercentageTransportation Equipment
    
    $
    6,034
    
    
    
    54.2
    %Medical Equipment
    
    
    1,076
    
    
    
    9.7Industrial Equipment
    
    
    1,058
    
    
    
    9.5Computers
    
    
    538
    
    
    
    4.8Building Systems
    
    
    509
    
    
    
    4.6Restaurant Equipment
    
    
    370
    
    
    
    3.3Rental Equipment
    
    
    328
    
    
    
    3.0Office Equipment
    
    
    272
    
    
    
    2.4Agricultural Equipment
    
    
    194
    
    
    
    1.7Other
    
    
    757
    
    
    
    6.8$
    11,136
    
    
    
    100.0
    %
 Operating Leases
 September 30, 2008Type of Equipment
    
    Net Investment
    
    
    PercentageOffice Equipment
    
    $
    181
    
    
    
    44.5
    %Computers
    
    
    158
    
    
    
    38.8Building Systems
    
    
    57
    
    
    
    14.0Communications
    
    
    11
    
    
    
    2.7$
    407
    
    
    
    100.0
    %
 15




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Direct Financing Leases and Notes
 September 30, 2008NetType of Business
    
    Investment
    
    
    PercentageTransportation/Communication/Energy
    
    $
    6,074
    
    
    
    54.5
    %Services
    
    
    2,458
    
    
    
    22.1Retail Trade
    
    
    731
    
    
    
    6.6Agriculture/Forestry/Fishing
    
    
    369
    
    
    
    3.3Manufacturing
    
    
    349
    
    
    
    3.1Construction
    
    
    227
    
    
    
    2.0Finance/Insurance/Real Estate
    
    
    187
    
    
    
    1.7Wholesale Trade
    
    
    144
    
    
    
    1.3Public Administration
    
    
    10
    
    
    
    0.1Other
    
    
    587
    
    
    
    5.3$
    11,136
    
    
    
    100.0
    %
 Operating Leases
 September 30, 2008NetType of Business
    
    Investment
    
    
    PercentageServices
    
    $
    253
    
    
    
    62.2
    %Retail Trade
    
    
    60
    
    
    
    14.7Construction
    
    
    32
    
    
    
    7.9Manufacturing
    
    
    32
    
    
    
    7.9Transportation/Communication/Energy
    
    
    14
    
    
    
    3.4Agriculture/Forestry/Fishing
    
    
    12
    
    
    
    2.9Finance/Insurance/Real Estate
    
    
    4
    
    
    
    1.0$
    407
    
    
    
    100.0
    %
 16




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Critical Accounting Policies
  Revenue Recognition
  Direct Financing Leases.
 Operating Leases.
 Notes Receivable.
   17




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Results of Operations
  January 25,Three Months
    
    
    2008 (Date ofEnded
    
    
    Formation) toSeptember 30,
    
    
    September 30,2008*
    
    
    2008*Revenue:Interest on equipment financings
    
    $
    3
    
    
    $
    3Expenses:General and administrative expenses
    
    
    1
    
    
    
    1Net income
    
    $
    2
    
    
    $
    2
 
 *
    
    Commencement of operations was September 16, 2008.   
    
    Increases operating expenses as we continue to purchase operating leases.
    
    Increased provision for credit losses as we increase in our leasing portfolio.
    
    Increased management fees to related party based on payments of financing assets
processed by our General Partner.
    
    Increased administrative expenses reimbursed to related party representing reimbursements
made to our General Partner for expenses incurred for managing us.
    
    Increased general and administrative expenses representing costs we incur to operate on a
daily basis.
   18




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Liquidity and Capital Resources
   January 25, 2008(Date of Formationto September 30,2008Net cash provided by operating activities
    
    $
    581Net cash used in investing activities
    
    
    (10,659
    )Net cash provided by financing activities
    
    
    11,425Increase in cash
    
    $
    1,347
       19




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ITEM 4. CONTROLS AND PROCEDURES
    20




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PART II  OTHER INFORMATION
 
 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
    Offering proceeds
    
    $
    12,750Expenses:Sales commissions (1)
    
    
    892Underwriting fees (1)
    
    
    383Organization and offering expenses (2)
    
    
    382Public offering expenses
    
    
    1,657Net offering proceeds
    
    
    11,093Reserves
    
    
    Total proceeds available for investment
    
    $
    11,093Use of proceeds for investment (estimated):Used in operations (3)
    
    $
    1Acquisition of lease portfolios (4)
    
    $
    10,675Working capital
    
    $
    417
 
 (1)
    
    Paid to an affiliate of our General Partner which is then remitted to third parties.(2)
    
    Paid to the General Partner.(3)
    
    The General Partner was reimbursed $ for operating expenses.(4)
    
    Included are asset acquisition fees of $150 that were paid to our General Partner. 21




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ITEM 6. EXHIBITS
 Exhibit No.
    
    Description3.1
    
    Amended and Restated Agreement of Limited Partnership (1)3.2
    
    Certificate of Limited Partnership (1)4.1
    
    Forms of letters sent to limited partners confirming their investment (1)31.1
    
    Rule 13a-14(a)/Rule 15d-14(a) Certification of Chief Executive Officer.31.2
    
    Rule 13a-14(a)/Rule 15d-14(a) Certification of Chief Financial Officer.32.1
    
    Certification of Chief Executive Officer pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code.32.2
    
    Certification of Chief Financial Officer pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code.
 
 (1)
    
    Filed previously as an exhibit to our Registration Statement on Form S-1, filed on June
6, 2008 and by this reference incorporated herein. 22




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SIGNATURES
  LEAF EQUIPMENT FINANCE FUND 4, L.P.
A Delaware Limited PartnershipBy:
    LEAF Asset Management LLC, its General PartnerNovember 14, 2008
    /s/ Crit DeMentCRIT DEMENTChairman and Chief Executive OfficerNovember 14, 2008
    /s/ Robert K. MoskovitzROBERT K. MOSKOVITZChief Financial OfficerNovember 14, 2008
    /s/ Tonya L. ZweierTONYA L. ZWEIERChief Accounting Officer 23