##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 
 FORM 10-KSB
 
 þ
    
    Annual report under Section 13 or 15(d) of the Securities Exchange Act of 1934.
 For the fiscal year ended September 30, 2007
 o
    
    Transition report under Section 13 or 15(d) of the Exchange Act.
  E ENERGY ADAMS, LLC
  Nebraska
    
    22-2627531(State or other jurisdiction of
    
    (I.R.S. Employer Identification No.)incorporation or organization)
 13238 East Aspen Road
Adams, NE 68301
 (402) 988-4655
  None
  Membership Units
 o
 þ o
 þ
 o þ
 None
     o þ




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##### 



TABLE OF CONTENTS
 PART I
    
    
    4Item 1. DESCRIPTION OF BUSINESS
    
    
    4Item 1a. BUSINESS DEVELOPMENT
    
    
    4Item 1b. BUSINESS OF E ENERGY ADAMS
    
    
    4Item 2. DESCRIPTION OF PROPERTY
    
    
    16Item 3. LEGAL PROCEEDINGS
    
    
    16Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
    
    
    16PART II
    
    
    17Item 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
    
    
    17Item 6. MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS
    
    
    17Item 7. FINANCIAL STATEMENTS
    
    
    25Item 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
    
    
    39Item 8A. CONTROLS AND PROCEDURES
    
    
    39Item 8B. OTHER INFORMATION
    
    
    39PART III
    
    
    39Item 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE WITH SECTION
16(A) OF THE EXCHANGE ACT
    
    
    39Item 10. EXECUTIVE COMPENSATION
    
    
    39Item 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
STOCKHOLDER MATTERS
    
    
    39Item 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
    
    
    39Item 13. EXHIBITS
    
    
    40Item 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
    
    
    40SIGNATURES
    
    
    40Exhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2
   2




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##### Table of Contents



FORWARD LOOKING STATEMENTS
    
    
    Changes in our business strategy, capital improvements or development plans;
    
    Increases in the price of corn as the corn market becomes increasingly competitive;
    
    Our inelastic demand for corn, as it is the only available feedstock for our plant;
    
    Changes in the environmental regulations or in our ability to comply with the
environmental regulations that apply to our plant site and our anticipated operations;
    
    Changes in general economic conditions or the occurrence of certain events causing
an economic impact in the agriculture, oil or automobile industries;
    
    Changes in the availability and price of natural gas and corn, and the market for
distillers grains;
    
    Changes in federal and/or state laws (including the elimination of any federal
and/or state ethanol tax incentives);
    
    Overcapacity within the ethanol industry;
    
    Changes and advances in ethanol production technology that may make it more
difficult for us to compete with other ethanol plants utilizing such technology; and
    
    Competition in the ethanol industry and from other alternative fuel additives.
  AVAILABLE INFORMATION
 www.eenergyadams.com
  3




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##### Table of Contents



PART I
 
 Item 1. DESCRIPTION OF BUSINESS.
 
 Item 1a. BUSINESS DEVELOPMENT
    
 Item 1b. BUSINESS OF E ENERGY ADAMS
 1. PRINCIPAL PRODUCTS
  1a. ETHANOL
      4




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##### Table of Contents



Ethanol Markets/Distribution
     Competition in the Ethanol Industry
   5




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##### Table of Contents



million gallons per year (mmgy)
 Current
    
    
    Under Construction/Capacity
    
    
    ExpansionsCompany
    
    Location
    
    Feedstock
    
    (mgy)
    
    
    (mgy)Abengoa Bioenergy Corp.
    
    York, NE
    
    Corn/milo
    
    
    55Colwich, KS
    
    
    
    
    25Portales, NM
    
    
    
    
    30Ravenna, NE
    
    
    
    
    88Aberdeen Energy*
    
    Mina, SD
    
    Corn
    
    
    
    
    
    
    100Absolute Energy, LLC*
    
    St. Ansgar, IA
    
    Corn
    
    
    
    
    
    
    100ACE Ethanol, LLC
    
    Stanley, WI
    
    Corn
    
    
    41Adkins Energy, LLC*
    
    Lena, IL
    
    Corn
    
    
    40Advanced Bioenergy
    
    Fairmont, NE
    
    Corn
    
    
    
    
    
    
    100AGP*
    
    Hastings, NE
    
    Corn
    
    
    52Agri-Energy, LLC*
    
    Luverne, MN
    
    Corn
    
    
    21Al-Corn Clean Fuel*
    
    Claremont, MN
    
    Corn
    
    
    35
    
    
    
    15Amaizing Energy, LLC*
    
    Denison, IA
    
    Corn
    
    
    48Atlantic, IA
    
    Corn
    
    
    
    
    
    
    110Archer Daniels Midland
    
    Decatur, IL
    
    Corn
    
    
    1,070
    
    
    
    550Cedar Rapids, IA
    
    CornClinton, IA
    
    CornColumbus, NE
    
    CornMarshall, MN
    
    CornPeoria, IL
    
    CornWallhalla, ND
    
    Corn/barleyArkalon Energy, LLC
    
    Liberal, KS
    
    Corn
    
    
    
    
    
    
    110Aventine Renewable Energy, LLC
    
    Pekin, IL
    
    Corn
    
    
    207
    
    
    
    226Aurora, NE
    
    CornMt. Vernon, IN
    
    CornBadger State Ethanol, LLC*
    
    Monroe, WI
    
    Corn
    
    
    48Big River Resources, LLC*
    
    West Burlington, IA

    Corn
    
    
    52BioFuel Energy  Pioneer Trail Energy, LLC
    
    Wood River, NE
    
    Corn
    
    
    
    
    
    
    115BioFuel Energy  Buffal Lake Energy, LLC
    
    Fairmont, MN
    
    Corn
    
    
    
    
    
    
    115Blue Flint Ethanol
    
    Underwood, ND
    
    Corn
    
    
    50Bonanza Energy, LLC
    
    Garden City, KS
    
    Corn/milo
    
    
    55Bushmills Ethanol, Inc.*
    
    Atwater, MN
    
    Corn
    
    
    40
  6




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Current
    
    
    Under Construction/Capacity
    
    
    ExpansionsCompany
    
    Location
    
    Feedstock
    
    (mgy)
    
    
    (mgy)Cardinal Ethanol
    
    Harrisville, IN
    
    Corn
    
    
    
    
    
    
    100Cargill, Inc.
    
    Blair, NE
    
    Corn
    
    
    85Eddyville, IA
    
    Corn
    
    
    35Cascade Grain
    
    Clatskanie, OR
    
    Corn
    
    
    
    
    
    
    108Castle Rock Renewable Fuels, LLC
    
    Necedah, WI
    
    Corn
    
    
    
    
    
    
    50Celunol
    
    Jennings, LA
    
    Sugar cane bagasse

    
    
    
    
    
    1.5Center Ethanol Company
    
    Sauget, IL
    
    Corn
    
    
    
    
    
    
    54Central Indiana Ethanol, LLC
    
    Marion, IN
    
    Corn
    
    
    40Central Illinois Energy, LLC
    
    Canton, IL
    
    Corn
    
    
    
    
    
    
    37Central MN Ethanol Coop*
    
    Little Falls, MN
    
    Corn
    
    
    21.5Chief Ethanol
    
    Hastings, NE
    
    Corn
    
    
    62Chippewa Valley Ethanol Co.*
    
    Benson, MN
    
    Corn
    
    
    45Cilion Ethanol
    
    Keyes, CA
    
    Corn
    
    
    50Commonwealth Agri-Energy, LLC*
    
    Hopkinsville, KY
    
    Corn
    
    
    33Corn, LP*
    
    Goldfield, IA
    
    Corn
    
    
    50Cornhusker Energy Lexington, LLC
    
    Lexington, NE
    
    Corn
    
    
    40Corn Plus, LLP*
    
    Winnebago, MN
    
    Corn
    
    
    44Coshoctan Ethanol, OH
    
    Coshoctan, OH
    
    Corn
    
    
    
    
    
    
    60Dakota Ethanol, LLC*
    
    Wentworth, SD
    
    Corn
    
    
    50DENCO, LLC
    
    Morris, MN
    
    Corn
    
    
    21.5E Energy Adams, LLC
    
    Adams, NE
    
    Corn
    
    
    50E3 Biofuels
    
    Mead, NE
    
    Corn
    
    
    24E Caruso (Goodland Energy Center)
    
    Goodland, KS
    
    Corn
    
    
    
    
    
    
    20East Kansas Agri-Energy, LLC*
    
    Garnett, KS
    
    Corn
    
    
    35Elkhorn Valley Ethanol, LLC
    
    Norfolk, NE
    
    Corn
    
    
    40ESE Alcohol Inc.
    
    Leoti, KS
    
    Seed corn
    
    
    1.5Ethanol Grain Processors, LLC
    
    Obion, TN
    
    Corn
    
    
    
    
    
    
    100First United Ethanol, LLC (FUEL)
    
    Mitchell Co., GA
    
    Corn
    
    
    
    
    
    
    100Front Range Energy, LLC
    
    Windsor, CO
    
    Corn
    
    
    40Gateway Ethanol
    
    Pratt, KS
    
    Corn
    
    
    55Glacial Lakes Energy, LLC*
    
    Watertown, SD
    
    Corn
    
    
    50
    
    
    
    50Global Ethanol/Midwest Grain Processors
    
    Lakota, IA
    
    Corn
    
    
    95Riga, MI
    
    Corn
    
    
    57Golden Cheese Company of California*
    
    Corona, CA
    
    Cheese whey
    
    
    5Golden Grain Energy, LLC*
    
    Mason City, IA
    
    Corn
    
    
    110
    
    
    
    50Golden Triangle Energy, LLC*
    
    Craig, MO
    
    Corn
    
    
    20Grand River Distribution
    
    Cambria, WI
    
    Corn
    
    
    
    
    
    
    40Grain Processing Corp.
    
    Muscatine, IA
    
    Corn
    
    
    20Granite Falls Energy, LLC*
    
    Granite Falls, MN
    
    Corn
    
    
    52Greater Ohio Ethanol, LLC
    
    Lima, OH
    
    Corn
    
    
    
    
    
    
    54Green Plains Renewable Energy
    
    Shenandoah, IA
    
    Corn
    
    
    50Superior, IA
    
    Corn
    
    
    
    
    
    
    50Hawkeye Renewables, LLC
    
    Iowa Falls, IA
    
    Corn
    
    
    105Fairbank, IA
    
    Corn
    
    
    115Menlo, IA
    
    Corn
    
    
    
    
    
    
    100Shell Rock, IA
    
    Corn
    
    
    
    
    
    
    110Heartland Corn Products*
    
    Winthrop, MN
    
    Corn
    
    
    100Heartland Grain Fuels, LP*
    
    Aberdeen, SD
    
    Corn
    
    
    9Huron, SD
    
    Corn
    
    
    12
    
    
    
    18
  7




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Current
    
    
    Under Construction/Capacity
    
    
    ExpansionsCompany
    
    Location
    
    Feedstock
    
    (mgy)
    
    
    (mgy)Heron Lake BioEnergy, LLC
    
    Heron Lake, MN
    
    Corn
    
    
    
    
    
    
    50Holt County Ethanol
    
    ONeill, NE
    
    Corn
    
    
    
    
    
    
    100Husker Ag, LLC*
    
    Plainview, NE
    
    Corn
    
    
    26.5Idaho Ethanol Processing
    
    Caldwell, ID
    
    Potato Waste
    
    
    4Illinois River Energy, LLC
    
    Rochelle, IL
    
    Corn
    
    
    50Indiana Bio-Energy
    
    Bluffton, IN
    
    Corn
    
    
    
    
    
    
    101Iroquois Bio-Energy Company, LLC
    
    Rensselaer, IN
    
    Corn
    
    
    40KAAPA Ethanol, LLC*
    
    Minden, NE
    
    Corn
    
    
    40Kansas Ethanol, LLC
    
    Lyons, KS
    
    Corn
    
    
    
    
    
    
    55Land O Lakes*
    
    Melrose, MN
    
    Cheese whey
    
    
    2.6Levelland/Hockley County Ethanol, LLC
    
    Levelland, TX
    
    Corn
    
    
    
    
    
    
    40Lifeline Foods, LLC
    
    St. Joseph, MO
    
    Corn
    
    
    40Lincolnland Agri-Energy, LLC*
    
    Palestine, IL
    
    Corn
    
    
    48Lincolnway Energy, LLC*
    
    Nevada, IA
    
    Corn
    
    
    50Little Sioux Corn Processors, LP*
    
    Marcus, IA
    
    Corn
    
    
    52Marquis Energy, LLC
    
    Hennepin, IL
    
    Corn
    
    
    
    
    
    
    100Marysville Ethanol, LLC
    
    Marysville, MI
    
    Corn
    
    
    
    
    
    
    50Merrick & Company
    
    Golden, CO
    
    Waste beer
    
    
    3MGP Ingredients, Inc.
    
    Pekin, IL
    
    Corn/wheat starch
    
    
    78Atchison, KSMid America Agri Products/Wheatland
    
    Madrid, NE
    
    Corn
    
    
    
    
    
    
    44Mid-Missouri Energy, Inc.*
    
    Malta Bend, MO
    
    Corn
    
    
    45Midwest Renewable Energy, LLC
    
    Sutherland, NE
    
    Corn
    
    
    25Millennium Ethanol
    
    Marion, SD
    
    Corn
    
    
    
    
    
    
    100Minnesota Energy*
    
    Buffalo Lake, MN
    
    Corn
    
    
    18NEDAK Ethanol
    
    Atkinson, NE
    
    Corn
    
    
    
    
    
    
    44New Energy Corp.
    
    South Bend, IN
    
    Corn
    
    
    102North Country Ethanol, LLC*
    
    Rosholt, SD
    
    Corn
    
    
    20Northeast Biofuels
    
    Volney, NY
    
    Corn
    
    
    
    
    
    
    114Northwest Renewable, LLC
    
    Longview, WA
    
    Corn
    
    
    
    
    
    
    55Otter Tail Ag Enterprises
    
    Fergus Falls, MN
    
    Corn
    
    
    
    
    
    
    57.5Pacific Ethanol
    
    Madera, CA
    
    Corn
    
    
    35Boardman, OR
    
    Corn
    
    
    35Burley, ID
    
    Corn
    
    
    
    
    
    
    50Stockton, CA
    
    Corn
    
    
    
    
    
    
    50Imperial, CA
    
    Corn
    
    
    
    
    
    
    50Panda Ethanol
    
    Hereford, TX
    
    Corn/milo
    
    
    
    
    
    
    115Parallel Products
    
    Louisville, KY
    
    Beverage waste
    
    
    5.4R. Cucamonga, CAPatriot Renewable Fuels, LLC
    
    Annawan, IL
    
    Corn
    
    
    
    
    
    
    100Penford Products
    
    Cedar Rapids, IA
    
    Corn
    
    
    
    
    
    
    45Phoenix Biofuels
    
    Goshen, CA
    
    Corn
    
    
    25Pinal Energy, LLC
    
    Maricopa, AZ
    
    Corn
    
    
    55Pine Lake Corn Processors, LLC*
    
    Steamboat Rock, IA
    
    Corn
    
    
    20Plainview BioEnergy, LLC
    
    Plainview, TX
    
    Corn
    
    
    
    
    
    
    100Platinum Ethanol, LLC*
    
    Arthur, IA
    
    Corn
    
    
    
    
    
    
    110Plymouth Ethanol, LLC*
    
    Merrill, IA
    
    Corn
    
    
    
    
    
    
    50
  8




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Current
    
    
    Under Construction/Capacity
    
    
    ExpansionsCompany
    
    Location
    
    Feedstock
    
    (mgy)
    
    
    (mgy)POET
    
    Sioux Falls, SD
    
    
    
    
    1,110
    
    
    
    375Alexandria, IN
    
    Corn
    
    
    
    
    
    
    #Ashton, IA
    
    CornBig Stone, SD
    
    CornBingham Lake, MN
    
    CornCaro, MI
    
    CornChancellor, SD
    
    CornCoon Rapids, IA
    
    CornCorning, IA
    
    CornEmmetsburg, IA
    
    CornFostoria, OH
    
    Corn
    
    
    
    
    
    
    #Glenville, MN
    
    CornGowrie, IA
    
    CornGroton, SD
    
    CornHanlontown, IA
    
    CornHudson, SD
    
    CornJewell, IA
    
    CornLaddonia, MO
    
    CornLake Crystal, MN
    
    CornLeipsic, OH
    
    Corn
    
    
    
    
    
    
    #Macon, MO
    
    CornMarion, OH
    
    Corn
    
    
    
    
    
    
    #Mitchell, SD
    
    CornNorth Manchester, IN
    
    Corn
    
    
    
    
    
    
    #Portland, IN
    
    CornPreston, MN
    
    CornScotland, SD
    
    CornPrairie Horizon Agri-Energy, LLC
    
    Phillipsburg, KS
    
    Corn
    
    
    40Quad-County Corn Processors*
    
    Galva, IA
    
    Corn
    
    
    27Red Trail Energy, LLC
    
    Richardton, ND
    
    Corn
    
    
    50Redfield Energy, LLC *
    
    Redfield, SD
    
    Corn
    
    
    50Reeve Agri-Energy
    
    Garden City, KS
    
    Corn/milo
    
    
    12Renew Energy
    
    Jefferson Junction, WI
    
    Corn
    
    
    
    
    
    
    130Siouxland Energy & Livestock Coop*
    
    Sioux Center, IA
    
    Corn
    
    
    25
    
    
    
    35Siouxland Ethanol, LLC
    
    Jackson, NE
    
    Corn
    
    
    50Southwest Iowa Renewable Energy, LLC *
    
    Council Bluffs, IA
    
    Corn
    
    
    
    
    
    
    110Sterling Ethanol, LLC
    
    Sterling, CO
    
    Corn
    
    
    42Tate & Lyle
    
    Loudon, TN
    
    Corn
    
    
    67
    
    
    
    38Ft. Dodge, IA
    
    Corn
    
    
    
    
    
    
    105The Andersons Albion Ethanol LLC
    
    Albion, MI
    
    Corn
    
    
    55The Andersons Clymers Ethanol, LLC
    
    Clymers, IN
    
    Corn
    
    
    110The Andersons Marathon Ethanol, LLC
    
    Greenville, OH
    
    Corn
    
    
    
    
    
    
    110Tharaldson Ethanol
    
    Casselton, ND
    
    Corn
    
    
    
    
    
    
    110Trenton Agri Products, LLC
    
    Trenton, NE
    
    Corn
    
    
    40United Ethanol
    
    Milton, WI
    
    Corn
    
    
    52United WI Grain Producers, LLC*
    
    Friesland, WI
    
    Corn
    
    
    49
  9




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Current
    
    
    Under Construction/Capacity
    
    
    ExpansionsCompany
    
    Location
    
    Feedstock
    
    (mgy)
    
    
    (mgy)US BioEnergy Corp.
    
    Albert City, IA
    
    Corn
    
    
    300
    
    
    
    400Woodbury, MI
    
    CornHankinson, ND
    
    Corn
    
    
    
    
    
    
    #Central City , NE
    
    Corn
    
    
    
    
    
    
    #Ord, NE
    
    CornDyersville, IA
    
    Corn
    
    
    
    
    
    
    #Janesville, MN
    
    Corn
    
    
    
    
    
    
    #Marion, SD
    
    CornU.S. Energy Partners, LLC (White Energy)
    
    Russell, KS
    
    Milo/wheat starch
    
    
    48Utica Energy, LLC
    
    Oshkosh, WI
    
    Corn
    
    
    48VeraSun Energy Corporation
    
    Aurora, SD
    
    Corn
    
    
    560
    
    
    
    330Albion, NE
    
    CornCharles City, IA
    
    CornLinden, IN
    
    CornWelcome, MN
    
    Corn
    
    
    
    
    
    
    #Hartely, IA
    
    Corn
    
    
    
    
    
    
    #Bloomingburg, OH
    
    Corn
    
    
    
    
    
    
    #Western New York Energy, LLC
    
    Shelby, NY
    
    Corn
    
    
    
    
    
    
    50Western Plains Energy, LLC*
    
    Campus, KS
    
    Corn
    
    
    45Western Wisconsin Renewable Energy, LLC*
    
    Boyceville, WI
    
    Corn
    
    
    40White Energy
    
    Hereford, TX
    
    Corn/Milo
    
    
    
    
    
    
    100Wind Gap Farms
    
    Baconton, GA
    
    Brewery waste
    
    
    0.4Renova Energy
    
    Torrington, WY
    
    Corn
    
    
    5Hayburn, ID
    
    Corn
    
    
    
    
    
    
    20Xethanol BioFuels, LLC
    
    Blairstown, IA
    
    Corn
    
    
    5Yuma Ethanol
    
    Yuma, CO
    
    Corn
    
    
    40Total Current Capacity at
    
    
    
    
    
    
    7,229.4134 ethanol biorefineriesTotal Under Construction (67)/Expansions (10)
    
    
    
    
    
    
    
    
    
    
    6,216.9Total Capacity
    
    
    
    
    
    
    13,446.3
 * locally-owned# plant under constructionUpdated:
    November 27, 2007
    10




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1b. DISTILLERS GRAINS
  Distillers Grains Markets/Distribution
   11




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Competition in the Distillers Grains Industry
   2. SOURCES AND AVAILAB ILITY OF RAW MATERIALS
 Corn
   12




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Utilities: Natural Gas, Electricity and Water
     13




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4. DEPENDENCE ON ONE OR A FEW MAJOR CUSTOMERS
  5. TRADEMARKS
  
 6. EFFECT OF EXISTING OR PROBABLE GOVERNMENTAL REGULATIONS
    14




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7. RESEARCH AND DEVELOPMENT
  8. COSTS AND EFFECTS OF COMPLIANCE WITH ENVIRONMENTAL LAWS
  9. EMPLOYEES
   15




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Item 2. DESCRIPTION OF PROPERTY.
   
    
    A processing building, which contains processing equipment,
laboratories, a control room and offices;
    
    A water treatment building containing equipment for water supply and treatment;
    
    A grain receiving and shipping building consisting of a
1st floor and 2nd level mezzanine;
    
    A mechanical building, which contains maintenance offices,
storage and a welding shop; and
    
    An administrative building, along with furniture and fixtures,
office equipment and computer and telephone systems.
  Item 6 -
MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS.
 
 Item 3. LEGAL PROCEEDINGS.
  
 Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
   16




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PART II
 
 Item 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.
   Item 6  MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS.
    Amount
    
    Aggregate price of the amount
    
    
    
    Aggregate price of theRegistered
    
    registered
    
    Amount Sold
    
    amount sold5,800
    
    $58,000,000
    
    4,939
    
    $49,390,000
  
 Item 6. MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS.
 This report contains forward-looking statements that involve significant risks and
uncertainties. The following discussion, which focuses on our plan of operation through the
commencement of operations of the plant, consists almost entirely of forward-looking information
and statements. Actual events or results may differ materially from those indicated or
anticipated, as discussed in the section entitled Forward Looking Statements. The following
discussion of our financial condition and plan of operation should also be read in conjunction with
our financial statements and notes to financial statements contained in this report.
 Overview
   17




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Plan of Operations for the Next 12 Months
  Trends, Events and Uncertainties That May Impact the Company
  No Operating History
  Corn Prices
    18




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##### Table of Contents



Source: Chicago Board of Trade
 Natural Gas
  Ethanol Supply & Demand
    19




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Ethanol Competition
   Ethanol Marketing
  Ethanol Infrastructure
    20




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##### Table of Contents



E-85 and Flex Fuel Vehicles
  Distillers Grains
   Derivatives
  New Technology
  Government Legislation and Regulations
    21




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##### Table of Contents



Liquidity and Capital Resources
   Senior Credit Facility
        22




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##### Table of Contents



Debt Financing Covenants
   Tax Increment Financing
     23




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##### Table of Contents



Critical Accounting Estimates
  Employees
  Off-Balance Sheet Arrangements
   24




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##### Table of Contents



Item 7. FINANCIAL STATEMENTS.
 
  
    /s/ Boulay, Heutmaker, Zibell & Co. P.L.L.P.Certified Public Accountants 
  25




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##### Table of Contents



E ENERGY ADAMS, LLC
  September 30,2007ASSETSCurrent AssetsCash and equivalents
    
    $
    770,909Restricted cash
    
    
    424,870Prepaid and other
    
    
    237,984Inventories
    
    
    157,062Total current assets
    
    
    1,590,825Property, Plant and EquipmentLand
    
    
    1,054,282Computers and office equipment
    
    
    248,876Construction in progress
    
    
    82,522,788Total property and equipment
    
    
    83,825,946Less accumulated depreciation
    
    
    19,278Net property, plant and equipment
    
    
    83,806,668Other AssetsRestricted cash
    
    
    611,108Investments and other
    
    
    94,823Debt issuance costs, net of amortization
    
    
    546,974Other intangibles
    
    
    428,919Total other assets
    
    
    1,681,824Total Assets
    
    $
    87,079,317LIABILITIES AND MEMBERS EQUITYCurrent LiabilitiesCurrent maturities of long-term debt
    
    $
    2,475,000Derivative instruments
    
    
    15,689Accounts payable
    
    
    338,958Accrued expenses
    
    
    392,665Construction and retainage payable
    
    
    2,302,558Construction and retainage payable  related party
    
    
    7,100,430Total current liabilities
    
    
    12,625,300Long-Term Debt, less current maturities
    
    
    27,861,976Commitments and ContingenciesMembers EquityMember contributions, net of costs related to capital contributions,
5,133 units outstanding
    
    
    49,957,383Deficit accumulated during development stage
    
    
    (3,365,342
    )Total members equity
    
    
    46,592,041Total Liabilities and Members Equity
    
    $
    87,079,317
   26




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##### Table of Contents



E ENERGY ADAMS, LLC
  Year
    
    
    Year
    
    
    From InceptionEnded
    
    
    Ended
    
    
    (March 25, 2005)September 30,
    
    
    September 30,
    
    
    to September 30,2007
    
    
    2006
    
    
    2007Revenues
    
    $
    
    
    
    $
    
    
    
    $
    Operating ExpensesProfessional and consulting fees
    
    
    416,098
    
    
    
    552,144
    
    
    
    1,096,710Project coordinator
    
    
    
    
    
    
    208,258
    
    
    
    231,789General and administrative
    
    
    1,403,504
    
    
    
    376,302
    
    
    
    1,849,619Total operating expenses
    
    
    1,819,602
    
    
    
    1,136,704
    
    
    
    3,178,118Operating Loss
    
    
    (1,819,602
    )
    
    
    (1,136,704
    )
    
    
    (3,178,118
    )Other Income (Expense)Other income
    
    
    146,911
    
    
    
    
    
    
    
    151,911Loss on derivative instruments
    
    
    (1,569,735
    )
    
    
    
    
    
    
    (1,569,735
    )Interest income
    
    
    693,082
    
    
    
    566,598
    
    
    
    1,266,641Interest expense
    
    
    
    
    
    
    (36,041
    )
    
    
    (36,041
    )Total other income (expense)
    
    
    (729,742
    )
    
    
    530,557
    
    
    
    (187,224
    )Net Loss
    
    $
    (2,549,344
    )
    
    $
    (606,147
    )
    
    $
    (3,365,342
    )Weighted Average Units Outstanding
    
    
    5,133
    
    
    
    884
    
    
    
    2,416Net Loss Per Unit
    
    $
    (497
    )
    
    $
    (686
    )
    
    $
    (1,393
    )
   27




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##### Table of Contents



E ENERGY ADAMS, LLC
  Member
    
    
    DeficitContributions
    
    
    AccumulatedBalance  Inception March 25, 2005
    
    $
    
    
    
    $
    Capital contributions - 80 units, $5,000 per unit, April, 2005
    
    
    400,000Capital contributions - 114 units, $5,000 per unit, May, 2005
    
    
    570,000Cost of raising capital
    
    
    (17,192
    )Net loss for the period ended September 30, 2005
    
    
    
    
    
    
    (209,851
    )Balance  September 30, 2005
    
    
    952,808
    
    
    
    (209,851
    )Capital contributions - 4,939 units, $10,000 per unit, August 2006
    
    
    49,390,000Cost of raising capital
    
    
    (385,425
    )Net loss for the period ended September 30, 2006
    
    
    
    
    
    
    (606,147
    )Balance  September 30, 2006
    
    
    49,957,383
    
    
    
    (815,998
    )Net loss for the period ended September 30, 2007
    
    
    
    
    
    
    (2,549,344
    )Balance  September 30, 2007
    
    $
    49,957,383
    
    
    $
    (3,365,342
    )
   28




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##### Table of Contents



E ENERGY ADAMS, LLC
  Year
    
    
    Year
    
    
    From InceptionEnded
    
    
    Ended
    
    
    (March 25, 2005)September 30,
    
    
    September 30,
    
    
    to September 30,2007
    
    
    2006
    
    
    2007Cash Flows from Operating ActivitiesNet loss
    
    $
    (2,549,344
    )
    
    $
    (606,147
    )
    
    $
    (3,365,342
    )Adjustments to reconcile net loss to net cash
used in operating activities:Depreciation
    
    
    15,903
    
    
    
    2,962
    
    
    
    19,278Gain on investment
    
    
    (92,436
    )
    
    
    
    
    
    
    (92,436
    )Changes in assets and liabilitiesRestricted cash
    
    
    (1,035,978
    )
    
    
    
    
    
    
    (1,035,978
    )Derivative instruments
    
    
    15,689
    
    
    
    
    
    
    
    15,689Prepaid and other
    
    
    (5,356
    )
    
    
    (219,607
    )
    
    
    (237,984
    )Inventories
    
    
    (157,062
    )
    
    
    
    
    
    
    (157,062
    )Accounts payable
    
    
    232,779
    
    
    
    1,082
    
    
    
    338,958Accrued expenses
    
    
    389,695
    
    
    
    2,970
    
    
    
    392,665Net cash used in operating activities
    
    
    (3,186,110
    )
    
    
    (818,740
    )
    
    
    (4,122,212
    )Cash Flows from Investing ActivitiesPayments for investment
    
    
    (2,387
    )
    
    
    
    
    
    
    (2,387
    )Payments for other intangibles
    
    
    (428,919
    )
    
    
    
    
    
    
    (428,919
    )Capital expenditures
    
    
    (66,691,463
    )
    
    
    (7,718,042
    )
    
    
    (74,422,958
    )Net cash used in investing activities
    
    
    (67,122,769
    )
    
    
    (7,718,042
    )
    
    
    (74,854,264
    )Cash Flows from Financing ActivitiesDebt issuance costs
    
    
    (173,224
    )
    
    
    (373,750
    )
    
    
    (546,974
    )Proceeds from revolving loan, net
    
    
    1,832,000
    
    
    
    
    
    
    
    1,832,000Proceeds from TIF financing
    
    
    5,035,000
    
    
    
    
    
    
    
    5,035,000Proceeds from term loan
    
    
    23,469,976
    
    
    
    
    
    
    
    23,469,976Member contributions
    
    
    
    
    
    
    49,390,000
    
    
    
    50,360,000Costs related to capital contributions
    
    
    
    
    
    
    (300,485
    )
    
    
    (402,617
    )Net cash provided by financing activities
    
    
    30,163,752
    
    
    
    48,715,765
    
    
    
    79,747,385Net Increase (Decrease) in Cash and Equivalents
    
    
    (40,145,127
    )
    
    
    40,178,983
    
    
    
    770,909Cash and Equivalents  Beginning of Period
    
    
    40,916,036
    
    
    
    737,053
    
    
    
    Cash and Equivalents  End of Period
    
    $
    770,909
    
    
    $
    40,916,036
    
    
    $
    770,909Supplemental Cash Flow InformationCash paid during the period for:Interest
    
    $
    
    
    
    $
    36,041
    
    
    $
    36,041Capitalized interest
    
    
    685,755
    
    
    
    
    
    
    
    685,755Total
    
    $
    685,755
    
    
    $
    36,041
    
    
    $
    721,796Supplemental Disclosure of Noncash Investing and Financing ActivitiesLand options exercised for land purchased
    
    $
    
    
    
    $
    7,000
    
    
    $
    7,000Construction in progress in construction payable
    
    $
    9,402,988
    
    
    $
    8,450,209
    
    
    $
    9,402,988Deferred offering costs offset against equity
    
    $
    
    
    
    $
    385,425
    
    
    $
    402,617
   29




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##### Table of Contents



1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Nature of Business
  Fiscal Reporting Period
  Accounting Estimates
  Cash and Equivalents
   Restricted Cash
  Derivative Instruments
 Accounting for Derivative Instruments and Hedging
Activities
   30




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##### Table of Contents



Inventory
  Property and Equipment
   Debt Issuance Costs
  Other Intangibles
  Income Taxes
  Capitalized Interest
   31




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##### Table of Contents



Fair Value of Financial Instruments
  Recently Issued Accounting Pronouncements
 Fair Value Measurements
 The Fair Value Option for Financial Assets and Financial Liabilities Accounting for Certain Investments in Debt and Equity Securities
 2. MEMBERS EQUITY
     32




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##### Table of Contents



3. INCOME TAXES
  Financial statement basis of total assets
    
    $
    87,079,000Less: Accumulated tax depreciation greater
than financial statement basis
    
    
    33,000Plus: Organizational and start-up costs
expensed for financial reporting purposes
    
    
    4,555,000Taxable income tax basis of total assets
    
    $
    91,601,000
  4. DERIVATIVE INSTRUMENTS
   5. BANK FINANCING
   Term Loan
   33




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##### Table of Contents



Revolving Loan
  Additional Revolving Loan
     Covenants
   Tax Increment Financing (TIF)
   34




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##### Table of Contents



Term loan
    
    $
    23,469,976Revolving loan
    
    
    1,832,000Tax increment financing
    
    
    5,035,000Totals
    
    
    30,336,976Less amounts due within one year
    
    
    (2,475,000
    )Net long-term debt
    
    $
    27,861,976
  2008
    
    $
    2,475,0002009
    
    
    5,045,0002010
    
    
    5,155,0002011
    
    
    5,175,0002012
    
    
    5,195,000Thereafter
    
    
    7,291,976Total long-term debt
    
    $
    30,336,976
  35




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##### Table of Contents



6. COMMITMENTS AND CONTINGENCIES
 Design build agreement
   Construction contracts
    Consulting contracts
   36




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##### Table of Contents



Grants
  1.
    
    The Company must create at least 26 new permanent jobs on a full-time basis at our
facility in Adams, Nebraska within 18 months from September 1, 2006, and 51% or more of all
these jobs must be held by or at least made available to low-to-moderate income persons;2.
    
    The Company must maintain the 26 jobs for 12 months from the date of hire for each
respective job; and3.
    
    The Company must pay all of our employees a minimum hourly rate of $9.50 per hour, and
provide all employees with an appropriate employee benefits package.
 Utility Contracts
   Leases
    37




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##### Table of Contents



2008
    
    $
    750,4782009
    
    
    750,4782010
    
    
    662,5862011
    
    
    662,5862012
    
    
    662,586Total minimum operating lease payments
    
    $
    3,488,714
 Marketing Agreement
   Corn Contracts
   38




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##### Table of Contents



Item 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.
  
 Item 8A. CONTROLS AND PROCEDURES.
   
 Item 8B. OTHER INFORMATION.
  
 PART III
 
 Item 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE WITH SECTION
16(A) OF THE EXCHANGE ACT.
  
 Item 10. EXECUTIVE COMPENSATION.
  
 Item 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER
MATTERS.
  
 Item 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.
   39




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##### Table of Contents



Item 13. EXHIBITS.
 Exhibit
    
    
    
    Method ofNo.
    
    Description
    
    Filing3.1
    
    
    Articles of Organization of E Energy Adams, LLC
    
    13.2
    
    
    Operating Agreement of E Energy Adams, LLC
    
    114.1
    
    
    Code of Ethics
    
    231.1
    
    
    Certificate pursuant to 17 CFR 240 15d-14(a)
    
    *31.2
    
    
    Certificate pursuant to 17 CFR 240 15d-14(a)
    
    *32.1
    
    
    Certificate pursuant to 18 U.S.C. Section 1350
    
    *32.2
    
    
    Certificate pursuant to 18 U.S.C. Section 1350
    
    *
 
 (1)
    
    Incorporated by reference to the exhibit of the same number on our Registration Statement on
Form SB-2, No. 333-128902, originally filed on October 7, 2005.(2)
    
    Incorporated by reference to the exhibit of the same number in our Annual Report on Form
10-KSB for our Fiscal Year Ended September 30, 2006, filed with the Securities and Exchange
Commission on December 21, 2006.(*)
    
    Filed herewith.
 
 Item 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
  
 SIGNATURES
  E ENERGY ADAMS, LLCDate: December 20, 2007
    /s/ Carl D. SitzmannCarl D. SitzmannChief Executive Officer Date: December 20, 2007
    /s/ Nicholas E. StovallNicholas E. StovallChief Financial Officer  Date: December 20, 2007
    /s/ Carl D. SitzmannCarl D. Sitzmann,Chief Executive Officer  40




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##### Table of Contents



Date:  December 20, 2007
    /s/ Nicholas E. StovallNicholas E. StovallChief Financial OfficerDate: December 20, 2007
    /s/ Jack L. AldermanJack L. Alderman, Chairman, DirectorDate: December 20, 2007
    /s/ Duane H. WollenburgDuane H. Wollenburg, Vice-Chairman, DirectorDate:  December 20, 2007
    /s/ Nicholas J. CusickNicholas J. Cusick, Treasurer, DirectorDate:  December 20, 2007
    /s/ Dennis L. BoesigerDennis L. Boesiger, Secretary, DirectorDate: December 20, 2007
    /s/ Vinson W. VanEngenVinson W. VanEngen, DirectorDate:  December 20, 2007
    /s/ Kenneth S. BrinkmanKenneth S. Brinkman, DirectorDate:  December 20, 2007
    /s/ Mark O. WeberMark O. Weber, DirectorDate:  December 20, 2007
    /s/ Steven L. DeanSteven L. Dean, DirectorDate:  December 20, 2007
    /s/ Ron L. MillerRon L. Miller, DirectorDate:  December 20, 2007
    /s/ William R. RiechersWilliam R. Riechers, DirectorDate:  December 20, 2007
    /s/ Amy J. JohnstonAmy J. Johnston, DirectorDate:  December 20, 2007
    /s/ Gary R. BentzingerGary R. Bentzinger, DirectorDate:  December 20, 2007
    /s/ Tom RoodeTom Roode, Director  41