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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-QSB
 þ
    
    Quarterly report under Section 13 or 15(d) of the Securities
Exchange Act of 1934.
 For the fiscal quarter ended March 31, 2006
 OR
 o
    
    Transition report under Section 13 or 15(d) of the Exchange Act.
 For the transition period from                      to                      .
 COMMISSION FILE NUMBER 333-123473
 SIOUXLAND ETHANOL, LLC
  Nebraska
(State or other jurisdiction of
incorporation or organization)
    
    22-3902184
(I.R.S. Employer Identification No.)
 110 East Elk Street, Jackson, Nebraska 68743
 (402) 632-2676
 þ o
 o þ
  o þ




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INDEX
  
 Page No.PART I. FINANCIAL INFORMATION
    
    
    3Item 1. Financial Statements
    
    
    3Item 2. Managements Discussion and Analysis and Plan of Operations
    
    
    11Item 3. Controls and Procedures
    
    
    18PART II. OTHER INFORMATION
    
    
    19Item 1. Legal Proceedings
    
    
    19Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    19Item 3. Defaults Upon Senior Securities
    
    
    20Item 4. Submission of Matters to a Vote of Security Holders
    
    
    20Item 5. Other Information
    
    
    20Item 6. Exhibits
    
    
    20SIGNATURES
    
    
    21Construction Management Services AgreementStandard Form of Agreement and General ConditionsDistiller's Grain Marketing AgreementFirm Throughput Service AgreementEthanol Marketing AgreementCredit AgreementTerm NoteRevolving Term NoteCertification Pursuant to 17 CFR 240.13a-14(a)Certification Pursuant to 17 CFR 240.13a-14(a)Certification Pursuant to 18 U.S.C. Section 1350Certification Pursuant to 18 U.S.C. Section 1350
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PART I. FINANCIAL INFORMATION
 
 Item 1. Financial Statements.
 SIOUXLAND ETHANOL, LLC
  March 31,2006(Unaudited)ASSETSCurrent AssetsCash and equivalents
    
    $
    27,990,180Prepaid and other
    
    
    30,883Total current assets
    
    
    28,021,063Property and EquipmentLand
    
    
    752,302Office equipment
    
    
    11,042Construction in progress
    
    
    13,533,40514,296,749Less accumulated depreciation
    
    
    (1,731
    )Net property and equipment
    
    
    14,295,018Other AssetsDeferred financing costs and other
    
    
    64,721Total Assets
    
    $
    42,380,802LIABILITIES AND EQUITYCurrent LiabilitiesAccounts payable
    
    $
    79,677Accrued expenses
    
    
    63,831Construction payable
    
    
    6,105,819Total current liabilities
    
    
    6,249,327Commitments and ContingenciesMembers EquityMember contributions, net of cost of raising capital,
3,783 units outstanding at March 31, 2006
    
    
    36,431,418Deficit accumulated during development stage
    
    
    (299,943
    )Total members equity
    
    
    36,131,475Total Liabilities and Members Equity
    
    $
    42,380,802
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SIOUXLAND ETHANOL, LLC
  Quarter Ended
    
    
    Quarter EndedMarch 31
    
    
    March 312006
    
    
    2005(Unaudited)
    
    
    (Unaudited)Revenues
    
    $
    
    
    
    $
    Operating ExpensesProfessional fees
    
    
    115,489
    
    
    
    82,779General and administrative
    
    
    52,673
    
    
    
    19,843Total operating expenses
    
    
    168,162
    
    
    
    102,622Operating Loss
    
    
    (168,162
    )
    
    
    (102,622
    )Other Income (Expense)Interest income
    
    
    320,765
    
    
    
    Other income
    
    
    478
    
    
    
    Total other income, net
    
    
    321,243
    
    
    
    Net Income (Loss)
    
    $
    153,081
    
    
    $
    (102,622
    )Weighted Average Units Outstanding
    
    
    3,783
    
    
    
    195Net Income (Loss) Per Unit
    
    $
    40.47
    
    
    $
    (526.27
    )
  4




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SIOUXLAND ETHANOL, LLC
  Six Months Ended
    
    
    Six Months Ended
    
    
    From InceptionMarch 31
    
    
    March 31
    
    (August 12, 2004) to2006
    
    
    2005
    
    
    March 31, 2006(Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)Revenues
    
    $
    
    
    
    $
    
    
    
    $
    Operating ExpensesProfessional fees
    
    
    222,266
    
    
    
    105,598
    
    
    
    592,949General and administrative
    
    
    128,621
    
    
    
    22,530
    
    
    
    220,150Total operating expenses
    
    
    350,887
    
    
    
    128,128
    
    
    
    813,099Operating Loss
    
    
    (350,887
    )
    
    
    (128,128
    )
    
    
    (813,099
    )Other Income (Expense)Interest income
    
    
    513,107
    
    
    
    
    
    
    
    513,107Other income
    
    
    1,453
    
    
    
    
    
    
    
    3,572Interest expense
    
    
    (3,523
    )
    
    
    
    
    
    
    (3,523
    )Total other income, net
    
    
    511,037
    
    
    
    
    
    
    
    513,156Net Income (Loss)
    
    $
    160,150
    
    
    $
    (128,128
    )
    
    $
    (299,943
    )Weighted Average Units Outstanding
    
    
    3,113
    
    
    
    155
    
    
    
    1,058Net Income (Loss) Per Unit
    
    $
    51.45
    
    
    $
    (826.63
    )
    
    $
    (283.50
    )
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SIOUXLAND ETHANOL, LLC
  Six Months Ended
    
    
    Six Months Ended
    
    
    From InceptionMarch 31
    
    
    March 31
    
    
    (August 12, 2004) to2006
    
    
    2005
    
    
    March 31, 2006(Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)Cash Flows from Operating ActivitiesNet income (loss)
    
    $
    160,150
    
    
    $
    (128,128
    )
    
    $
    (299,943
    )Adjustments to reconcile net loss to net cash from operations:Depreciation
    
    
    1,105
    
    
    
    136
    
    
    
    1,731Change in assets and liabilitiesPrepaid and other
    
    
    (463
    )
    
    
    
    
    
    
    (29,383
    )Accounts payable
    
    
    (56,660
    )
    
    
    18,951
    
    
    
    73,049Accrued expenses
    
    
    61,380
    
    
    
    2,988
    
    
    
    63,831Net cash provided by (used in) operating activities
    
    
    165,512
    
    
    
    (106,053
    )
    
    
    (190,715
    )Cash Flows from Investing ActivitiesPayment for land options and other
    
    
    
    
    
    
    (7,000
    )
    
    
    (7,000
    )Capital expenditures
    
    
    (8,175,388
    )
    
    
    (3,715
    )
    
    
    (8,186,430
    )Net cash used in investing activities
    
    
    (8,175,388
    )
    
    
    (10,715
    )
    
    
    (8,193,430
    )Cash Flows from Financing ActivitiesProceeds from bridge financing loan
    
    
    760,000
    
    
    
    
    
    
    
    760,000Payments on bridge financing loan
    
    
    (760,000
    )
    
    
    
    
    
    
    (760,000
    )Payments for financing costs
    
    
    (57,093
    )
    
    
    
    
    
    
    (57,093
    )Member contributions
    
    
    35,880,000
    
    
    
    925,000
    
    
    
    36,855,000Payments for deferred offering costs
    
    
    (36,449
    )
    
    
    (103,624
    )
    
    
    (423,582
    )Net cash provided by financing activities
    
    
    35,786,458
    
    
    
    821,376
    
    
    
    36,374,325Net Increase in Cash and Equivalents
    
    
    27,776,582
    
    
    
    704,608
    
    
    
    27,990,180Cash and Equivalents  Beginning of Period
    
    
    213,598
    
    
    
    47,213
    
    
    
    Cash and Equivalents  End of Period
    
    $
    27,990,180
    
    
    $
    751,821
    
    
    $
    27,990,180Supplemental Cash Flow InformationCash paid during the period for:Interest
    
    $
    3,523
    
    
    $
    
    
    
    $
    3,523Supplemental Disclosure of Noncash Investing and Financing
ActivitiesLand options exercised for land purchased
    
    $
    4,500
    
    
    $
    
    
    
    $
    4,500Construction in progress in accounts payable
    
    $
    6,105,819
    
    
    $
    
    
    
    $
    6,105,819Deferred offering costs offset against member contributions
    
    $
    423,582
    
    
    $
    
    
    
    $
    423,582Deferred offering costs included in accounts payable
    
    $
    
    
    
    $
    50,712
    
    
    $
    Debt issuance costs in accounts payable
    
    $
    6,628
    
    
    $
    
    
    
    $
    6,628
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SIOUXLAND ETHANOL, LLC
   1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
   Nature of Business
  Fiscal Reporting Period
  Accounting Estimates
  Property and equipment
   7




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SIOUXLAND ETHANOL, LLC
   Deferred Offering Costs
  Grants
  Recently Issued Accounting Pronouncements
  2. DEVELOPMENT STAGE ENTERPRISE
    3. MEMBERS EQUITY
  4. COMMITMENTS AND CONTINGENCIES
 Construction contracts
  8




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SIOUXLAND ETHANOL, LLC
      Consulting contracts
     Tax increment revenue note
  Marketing agreements
   9




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SIOUXLAND ETHANOL, LLC
    Utility contract
  5. SUBSEQUENT EVENTS
 Construction contract
  Financing contract
     10




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Item 2. Managements Discussion and Analysis and Plan of Operations.
 Forward Looking Statements
  
    
    Overcapacity in the ethanol industry leading to an oversupply of ethanol;
    
    Our ability to obtain the debt financing necessary to construct and operate our plant;
    
    Changes in our business strategy, capital improvements or development plans;
    
    Construction delays and technical difficulties in constructing the plant;
    
    Changes in the environmental regulations that apply to our plant site and operations;
    
    Changes in the price of crude oil;
    
    Changes in the price of corn;
    
    Our ability to hire and retain key employees for the operation of the plant;
    
    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 the market for distillers grains;
    
    Changes in federal and/or state laws (including the elimination of any federal and/or
state ethanol tax incentives);
    
    Changes and advances in ethanol production technology; and
    
    Competition from alternative fuel additives.
  11




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Overview
     Plan of Operations to Start-Up of the Ethanol Plant
  Project Capitalization
     12




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Plant Construction Activity
   Earthwork and Site Preparation
  Phase I and Phase II Engineering Services
  Construction Management Services
  Foundation and Site Preparation
  13




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Plant Construction
   Natural Gas Throughput Service
    Precast Concrete Bridge Construction
  Technology License
  Other Material Contracts Related to Future Plant Operations
 Distillers Grain Marketing Agreement
  14




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Ethanol Marketing Agreement
  Operating Expenses
  Employees
   Full-TimePosition
    
    PersonnelGeneral Manager
    
    
    1Plant Manager
    
    
    1Commodities Manager
    
    
    1Controller
    
    
    1Lab Manager
    
    
    1Lab Technician
    
    
    2Secretary/Clerical
    
    
    3Shift Supervisors
    
    
    4Office Manager
    
    
    1Maintenance Supervisor
    
    
    1Maintenance Craftsmen
    
    
    4Plant Operators
    
    
    12TOTAL
    
    
    32
 Employment and Investment Growth Act Project Agreement
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Liquidity and Capital Resources
 Sources of Funds
   Uses of Proceeds
  Percent ofUse of Proceeds
    
    Amount
    
    
    TotalPlant construction(1)
    
    $
    56,619,000
    
    
    
    70.33
    %Land & site development costs
    
    
    5,230,000
    
    
    
    6.50
    %Railroad
    
    
    2,760,000
    
    
    
    3.43
    %Fire Protection / Water Supply
    
    
    2,480,000
    
    
    
    3.08
    %Administrative Building
    
    
    265,000
    
    
    
    0.33
    %Office Equipment
    
    
    66,000
    
    
    
    0.08
    %Computers, Software, Network
    
    
    140,000
    
    
    
    0.17
    %
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Percent ofUse of Proceeds
    
    Amount
    
    
    TotalConstruction Manager Fees
    
    
    80,000
    
    
    
    0.10
    %Construction insurance costs
    
    
    100,000
    
    
    
    0.12
    %Construction contingency
    
    
    2,810,000
    
    
    
    3.49
    %Capitalized interest
    
    
    1,100,000
    
    
    
    1.37
    %Rolling stock
    
    
    290,000
    
    
    
    0.36
    %Start up costs:Financing costs
    
    
    610,000
    
    
    
    0.76
    %Organization costs
    
    
    1,000,000
    
    
    
    1.24
    %Pre Production period costs
    
    
    750,000
    
    
    
    0.93
    %Inventory  Spare parts
    
    
    500,000
    
    
    
    0.62
    %Working capital
    
    
    3,000,000
    
    
    
    3.73
    %Inventory  corn
    
    
    1,200,000
    
    
    
    1.49
    %Inventory  chemicals and ingredients
    
    
    250,000
    
    
    
    0.31
    %Inventory  Ethanol and DDGS
    
    
    750,000
    
    
    
    0.93
    %Inventory  Corn Hedged
    
    
    500,000
    
    
    
    0.63
    %Total
    
    $
    80,500,000
    
    
    
    100
    %
 
 
 Quarterly Financial Results
    Trends and Uncertainties Impacting the Ethanol Industry and Our Future Operations
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Trends and Uncertainties Impacting the Corn and Natural Gas Markets and Our Future Cost of Goods
Sold
    Application of Critical Accounting Estimates
  Off-Balance Sheet Arrangements
  
 Item 3. Controls and Procedures
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PART II.OTHER INFORMATION
 
 Item 1. Legal Proceedings
  
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
   Amount
    
    Aggregate price of the amount
    
    
    
    
    
    Aggregate price of theRegistered
    
    registered
    
    Amount Sold
    
    amount sold4,600
    
    $
    46,000,000
    
    
    
    3,588
    
    
    $
    35,880,000
   Plant Construction
    
    $
    4,701,160Site Costs
    
    $
    3,301,743Railroad
    
    $
    15,166Fire Protection
    
    $
    151,275Rolling Stock
    
    $
    12,944Financing Costs
    
    $
    57,093Organizational Costs
    
    $
    625,619Total
    
    $
    8,865,000
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Item 3. Defaults Upon Senior Securities
  
 Item 4. Submission of Matters to a Vote of Security Holders
  
 Item 5. Other Information
  
 Item 6. Exhibits
  10.1
    
    Construction Management Services Agreement dated October 1,
2005 and accepted February 14, 2006 with Timothy R. Smith10.2
    
    Standard Form of Agreement and General Conditions between Owner
and Contractor for Precast Concrete Bridge Construction dated February 17, 2006
with Elk Horn Construction10.3
    
    Distillers Grain Marketing Agreement dated March 2, 2006 with
Commodity Specialist Company*10.4
    
    Firm Throughput Service Agreement dated March 14, 2006 with
Northern Natural Gas Company10.5
    
    Ethanol Marketing Agreement dated March 29, 2006 with Archer
Daniels Midland Co.*10.6
    
    Credit Agreement dated May 4, 2006 with Farm Credit Services of
America, FLCA10.7
    
    Term Note dated May 4, 2006 with Farm Credit Services of
America, FLCA10.8
    
    Revolving Term Note dated May 4, 2006 with Farm Credit Services
of America, FLCA31.1
    
    Certificate Pursuant to 17 CFR 240.13a-14(a).31.2
    
    Certificate Pursuant to 17 CFR 240.13a-14(a).32.1
    
    Certificate Pursuant to 18 U.S.C. § 1350.32.2
    
    Certificate Pursuant to 18 U.S.C. § 1350.
 
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SIGNATURES
  SIOUXLAND ETHANOL, LLCDate:
May 12, 2006
    
    /s/ Tom LynchTom LynchChairman and President (Principal Executive Officer)Date:
May 12, 2006
    
    /s/ John KingsburyJohn KingsburyTreasurer (Principal Financial and Accounting Officer)
 21