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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 December 31, 2007
 OR
 o
    
    Transition report under Section 13 or 15(d) of the Exchange Act.
 For the transition period from       to       .
 Commission file number 000-52426
 E ENERGY ADAMS, LLC
  Nebraska
(State or other jurisdiction of 
incorporation or organization)
    
    20-2627531
(I.R.S. Employer Identification No.)
 13238 East Aspen Road
Adams, NE 68301
 (402) 988-4655
  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
    
    
    16Item 3. Controls and Procedures
    
    
    23PART II. OTHER INFORMATION
    
    
    23Item 1. Legal Proceeding
    
    
    23Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    23Item 3. Defaults Upon Senior Securities
    
    
    23Item 4. Submission of Matters to a Vote of Security Holders
    
    
    23Item 5. Other Information
    
    
    23Item 6. Exhibits
    
    
    24SIGNATURES
    
    
    24Exhibit 10.1Exhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2
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PART I. FINANCIAL INFORMATION
 
 Item 1. Financial Statements.
 E ENERGY ADAMS, LLC
  December 31,2007(Unaudited)ASSETSCurrent AssetsCash and equivalents
    
    $
    3,823,503Restricted cash
    
    
    2,575,885Trade accounts receivable
    
    
    6,628,865Inventories
    
    
    5,675,130Prepaid and other
    
    
    709,708Total current assets
    
    
    19,413,091Property and EquipmentLand
    
    
    1,054,282Land improvements
    
    
    4,022,102Computers and office equipment
    
    
    427,124Buildings
    
    
    9,743,667Equipment
    
    
    72,617,050Railroad improvements
    
    
    4,233,334Rolling stock
    
    
    8,690Total property and equipment
    
    
    92,106,249Less accumulated depreciation
    
    
    1,206,202Net property and equipment
    
    
    90,900,047Other AssetsRestricted cash
    
    
    516,029Investments and other
    
    
    94,823Debt issuance costs, net of amortization
    
    
    507,721Other intangibles, net of amortization
    
    
    991,665Total other assets
    
    
    2,110,238Total Assets
    
    $
    112,423,376LIABILITIES AND MEMBERS EQUITYCurrent LiabilitiesAdditional revolving loan
    
    $
    8,086,481Current maturities of long-term debt
    
    
    3,712,500Accounts payable
    
    
    4,112,906Construction and retainage payable
    
    
    349,535Construction and retainage payable  related party
    
    
    179,302Accrued expenses
    
    
    638,256Derivative instruments
    
    
    2,343,520Total current liabilities
    
    
    19,422,500Long-Term Debt, less current maturities
    
    
    49,417,679Note payable  related party
    
    
    1,000,000Members EquityMember contributions, net of costs related to capital contributions,
5,133 units outstanding at December 31, 2007
    
    
    42,583,197Total members equity
    
    
    42,583,197Total Liabilities and Members Equity
    
    $
    112,423,376
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E ENERGY ADAMS, LLC
  Three Months
    
    
    Three MonthsEnded
    
    
    EndedDecember 31,
    
    
    December 31,2007
    
    
    2006(Unaudited)
    
    
    (Unaudited)Revenues
    
    $
    16,965,279
    
    
    $
    Cost of Goods Sold
    
    
    19,221,637
    
    
    
    Gross Profit (Loss)
    
    
    (2,256,358
    )
    
    
    Operating ExpensesProfessional and consulting fees
    
    
    216,981
    
    
    
    151,057General and administrative
    
    
    805,569
    
    
    
    115,720Total operating expenses
    
    
    1,022,550
    
    
    
    266,777Operating Loss
    
    
    (3,278,908
    )
    
    
    (266,777
    )Other Income (Expense)Other income
    
    
    24,524
    
    
    
    Interest income
    
    
    19,628
    
    
    
    383,212Interest expense
    
    
    (774,088
    )
    
    
    Total other
income (expense)
    
    
    (729,936
    )
    
    
    383,212Net Profit (Loss)
    
    $
    (4,008,844
    )
    
    $
    116,435Weighted Average Units Outstanding
    
    
    5,133
    
    
    
    5,133Net Profit (Loss) Per Unit
    
    $
    (781
    )
    
    $
    23
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E ENERGY ADAMS, LLC
  Three Months
    
    
    Three MonthsEnded
    
    
    EndedDecember 31,
    
    
    December 31,2007
    
    
    2006(Unaudited)
    
    
    (Unaudited)Cash Flows from Operating ActivitiesNet income (loss)
    
    $
    (4,008,844
    )
    
    $
    116,535Adjustments to reconcile net loss to net cash
used in operating activities:Depreciation and amortization
    
    
    1,268,987
    
    
    
    1,734Change in fair value of derivative instruments
    
    
    2,327,831
    
    
    
    Changes in assets and liabilitiesRestricted cash
    
    
    (2,239,605
    )
    
    
    Accounts receivable
    
    
    (6,628,865
    )
    
    
    Prepaid and other
    
    
    (471,724
    )
    
    
    43,344Inventories
    
    
    (5,518,068
    )
    
    
    Accounts payable
    
    
    3,773,948
    
    
    
    (1,633
    )Accrued expenses
    
    
    245,591
    
    
    
    3,337Net cash provided by (used in) operating activities
    
    
    (11,250,749
    )
    
    
    163,317Cash Flows from Investing ActivitiesPayments for other intangibles
    
    
    (571,079
    )
    
    
    Capital expenditures
    
    
    (16,188,931
    )
    
    
    (16,435,695
    )Net cash used in investing activities
    
    
    (16,760,010
    )
    
    
    (16,435,695
    )Cash Flows from Financing ActivitiesProceeds from additional revolving loan
    
    
    8,086,481
    
    
    
    Proceeds from term loans
    
    
    22,793,203
    
    
    
    Change in restricted cash
    
    
    183,669
    
    
    
    Net cash provided by financing activities
    
    
    31,063,353
    
    
    
    Net Increase (Decrease) in Cash and Equivalents
    
    
    3,052,594
    
    
    
    (16,272,378
    )Cash and Equivalents  Beginning of Period
    
    
    770,909
    
    
    
    40,916,036Cash and Equivalents  End of Period
    
    $
    3,823,503
    
    
    $
    24,643,658Supplemental Cash Flow InformationCash paid during the period for interest
    
    $
    671,727
    
    
    $
    Supplemental Disclosure of Noncash Investing and Financing ActivitiesConstruction costs in accounts payable
    
    $
    528,837
    
    
    $
    5,751,546Construction costs in Note payable, related party
    
    $
    1,000,000
    
    
    $
    
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Nature of Business
  Fiscal Reporting Period
  Accounting Estimates
  Revenue Recognition
   6




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Cash and Equivalents
   Restricted Cash
  Accounts Receivable
   Derivative Instruments
 Accounting for Derivative Instruments and Hedging
Activities
    7




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Inventories
  Property and Equipment
  Land improvements
    
    15-20 yearsOffice building
    
    10-20 yearsOffice equipment
    
    5 yearsPlant and process equipment
    
    10-20 years
 Debt Issuance Costs
  Other Intangibles
  Environmental Liabilities
   8




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Fair Value
   2. INVENTORIES
  Raw materials
    
    $
    3,575,505Work in progress
    
    
    819,131Finished goods
    
    
    1,280,494Total
    
    $
    5,675,130
 3. DERIVATIVE INSTRUMENTS
   4. BANK FINANCING
   9




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Term Loan
  Revolving Loan
  Additional Revolving Loan
      10




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Covenants
    Tax Increment Financing (TIF)
       11




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Term note
    
    $
    35,000,000Revolving loan
    
    
    13,095,179Tax increment financing
    
    
    5,035,000Note payable, related party
    
    
    1,000,000Totals
    
    
    54,130,179Less amounts due within one year
    
    
    (3,712,500
    )Net long-term debt
    
    $
    50,417,679
  2008
    
    $
    3,712,5002009
    
    
    6,145,0002010
    
    
    5,165,0002011
    
    
    5,185,0002012
    
    
    5,205,000After 2013
    
    
    28,717,976Total long-term debt
    
    $
    53,130,179
 5. COMMITMENTS AND CONTINGENCIES
 Design build agreement
    12




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Construction contracts
    Consulting contracts
  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.
  13




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Utility Contracts
   Leases
     2008
    
    $
    562,8592009
    
    
    750,4782010
    
    
    662,5862011
    
    
    662,5862012
    
    
    651,471Total minimum lease payments
    
    $
    3,289,980
  14




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Marketing Agreement
   Corn Contracts
  Employment Contracts
   15




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Item 2. Managements Discussion and Analysis and Plan of Operations
 Forward Looking Statements
   
    
    Changes in the availability and price of corn;
    
    Lack of transport, storage and blending infrastructure preventing ethanol from reaching available markets;
    
    Ethanol supply exceeding demand and corresponding ethanol price reductions;
    
    Changes in the environmental regulations that apply to our plant operations;
    
    Changes in our business strategy, capital improvements or development plans;
    
    Changes in plant production capacity or technical difficulties in operating the plant;
    
    Changes in general economic conditions or the occurrence of certain events causing an economic impact in
the agriculture or automobile industries;
    
    Fluctuation in U.S. oil consumption and petroleum prices;
    
    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;
    
    Additional ethanol plants built in close proximity to our ethanol facility in south eastern Nebraska;
    
    Competition from alternative fuel additives;
    
    Changes in interest rates affecting our debt service payments;
    
    Our ability to generate free cash flow to invest in our business, service our debt and pay our operating
expenses as they are incurred; and
    
    Our ability to retain key employees and maintain labor relations.
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Available Information
 www.eenergyadams.com
 Overview
    Results of Operations for the Three Months Ended December 31, 2007
  Three Months EndedDecember 31, 2007(Unaudited)Income Statement Data
    
    Amount
    
    
    %Revenues
    
    $
    16,965,279
    
    
    
    100.0Cost of Goods Sold
    
    $
    19,221,637
    
    
    
    113.3Gross Profit (Loss)
    
    $
    (2,256,358
    )
    
    
    13.3Operating Expenses
    
    $
    1,022,550
    
    
    
    6.0Operating Loss
    
    $
    (3,278,908
    )
    
    
    19.3Other Income
    
    $
    24,524
    
    
    
    (.2
    )Interest Expense
    
    $
    (774,088
    )
    
    
    4.6Interest Income
    
    $
    19,628
    
    
    
    (.1
    )Net Loss
    
    $
    (4,008,844
    )
    
    
    23.6
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Revenues
     Cost of Goods Sold
   18




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Operating
Expenses
  Interest Expense and Interest Income
  Net Income (Loss)
  Plan of Operations for the Next 12 Months
  Permitting
   19




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Marketing Agreements
  Commodity Price Risk Protection
    Employees
  Critical Accounting Estimates
  Liquidity and Capital Resources
  Three Months Ended12/31/07 (unaudited)Net cash used in operating activities
    
    $
    11,250,749Net cash used in investing activities
    
    $
    16,760,010Net cash provided by financing activities
    
    $
    31,063,353
 Cash Flow From Operations
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Cash Flow From Investing Activities
  Cash Flow From Financing Activities
  Short-Term and Long-Term Debt Sources
 Senior Credit Facility:
        21




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Subordinated Debt Financing.
 Tax Increment Financing.
   Off-Balance Sheet Arrangements
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Item 3. Controls and Procedures
   
 PART II. OTHER INFORMATION
 
 Item 1. Legal Proceedings
 None.
 
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
 None.
 
 Item 3. Defaults Upon Senior Securities
 None.
 
 Item 4. Submission of Matters to a Vote of Security Holders
 None.
 
 Item 5. Other Information
   23




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Item 6. Exhibits
  Exhibit No.
    
    Description
    
    Method of Filing10.1
    
    
    Subordinated Debt Agreement between E Energy
Adams, LLC and North Star Bank dated January
29, 2008
    
    *31.1
    
    
    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
    
    *
 
 (*)
    
    Filed herewith.
 
 SIGNATURES
  E ENERGY ADAMS, LLCDate: February 14 , 2008
    
    /s/ Carl D. Sitzmann

Carl D. SitzmannChief Executive Officer (Principal Executive Officer)Date: February 14 , 2008
    
    /s/ Nicholas E. Stovall

Nicholas E. Stovall 
Chief Financial Officer (Principal Financial Officer)
  24