##### Table of Contents



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 June 30, 2008
 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
    
    
    12Item 3. Controls and Procedures
    
    
    20PART II. OTHER INFORMATION
    
    
    21Item 1. Legal Proceeding
    
    
    21Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    21Item 3. Defaults Upon Senior Securities
    
    
    21Item 4. Submission of Matters to a Vote of Security Holders
    
    
    21Item 5. Other Information
    
    
    21Item 6. Exhibits
    
    
    21SIGNATURES
    
    
    22Exhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2
   2




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PART I. FINANCIAL INFORMATION
 
 Item 1. Financial Statements.
 E ENERGY ADAMS, LLC
  June 30,2008(Unaudited)ASSETSCurrent AssetsCash and equivalents
    
    $
    6,136,369Restricted cash
    
    
    873,140Trade accounts receivable
    
    
    5,068,355Inventories
    
    
    9,333,137Prepaid and other
    
    
    1,370,084Total current assets
    
    
    22,781,085Property and EquipmentLand
    
    
    1,054,282Land improvements
    
    
    7,845,668Computers and office equipment
    
    
    897,887Buildings
    
    
    1,503,913Equipment
    
    
    76,667,453Railroad improvements
    
    
    5,420,982Total property and equipment
    
    
    93,390,185Less accumulated depreciation
    
    
    3,941,054Net property and equipment
    
    
    89,449,131Other AssetsRestricted cash
    
    
    524,742Investments and other
    
    
    94,823Debt issuance costs, net of amortization
    
    
    442,379Other intangibles, net of amortization
    
    
    966,666Total other assets
    
    
    2,028,610Total Assets
    
    $
    114,258,826LIABILITIES AND MEMBERS EQUITYCurrent LiabilitiesAdditional revolving loan
    
    $
    9,880,978Current maturities of long-term debt
    
    
    5,055,163Accounts payable
    
    
    2,114,000Construction payable
    
    
    89,938Accrued expenses
    
    
    808,582Derivative instruments
    
    
    673,621Total current liabilities
    
    
    18,622,282Long-Term Debt, less current maturities
    
    
    50,794,977Note payable  related party
    
    
    1,000,000Members EquityMember contributions, net of costs related to capital contributions,
5,133 units outstanding, 7,000 authorized at June 30, 2008
    
    
    43,841,567Total members equity
    
    
    43,841,567Total Liabilities and Members Equity
    
    $
    114,258,826
   3




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E ENERGY ADAMS, LLC
  Quarter
    
    
    QuarterEnded
    
    
    EndedJune 30,
    
    
    June 30,2008
    
    
    2007(Unaudited)
    
    
    (Unaudited)Revenues
    
    $
    36,626,826
    
    
    $
    Cost of Goods Sold
    
    
    34,916,877
    
    
    
    Gross Profit
    
    
    1,709,949
    
    
    
    Operating ExpensesProfessional and consulting fees
    
    
    163,327
    
    
    
    53,900General and administrative
    
    
    1,096,838
    
    
    
    359,993Total operating expenses
    
    
    1,260,165
    
    
    
    413,893Operating Gain/(Loss)
    
    
    449,784
    
    
    
    (413,893
    )Other Income (Expense)Other income
    
    
    31,133
    
    
    
    1,600Loss on derivative instruments
    
    
    
    
    
    
    (287,404
    )Interest income
    
    
    19,203
    
    
    
    55,287Interest expense
    
    
    (1,047,393
    )
    
    
    Total other expense
    
    
    (997,057
    )
    
    
    (230,517
    )Net Loss
    
    $
    (547,273
    )
    
    $
    (644,410
    )Weighted Average Units Outstanding-Basic and Diluted
    
    
    5,133
    
    
    
    5,133Net Loss Per Unit-Basic and Diluted
    
    $
    (106.62
    )
    
    $
    (125.54
    )
   4




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E ENERGY ADAMS, LLC
  Nine Months
    
    
    Nine MonthsEnded
    
    
    EndedJune 30,
    
    
    June 30,2008
    
    
    2007(Unaudited)
    
    
    (Unaudited)Revenues
    
    $
    85,866,591
    
    
    $
    Cost of Goods Sold
    
    
    82,490,295
    
    
    
    Gross Profit
    
    
    3,376,296
    
    
    
    Operating ExpensesProfessional and consulting fees
    
    
    538,709
    
    
    
    345,628General and administrative
    
    
    2,817,305
    
    
    
    695,412Total operating expenses
    
    
    3,356,014
    
    
    
    1,041,040Operating Gain/(Loss)
    
    
    20,282
    
    
    
    (1,041,040
    )Other Income (Expense)Other income
    
    
    162,145
    
    
    
    146,876Loss on derivative instruments
    
    
    
    
    
    
    (1,546,528
    )Interest income
    
    
    58,977
    
    
    
    662,257Interest expense
    
    
    (2,991,877
    )
    
    
    (6,725
    )Total other expense
    
    
    (2,770,755
    )
    
    
    (744,120
    )Net Loss
    
    $
    (2,750,473
    )
    
    $
    (1,785,160
    )Weighted Average Units Outstanding-Basic and Diluted
    
    
    5,133
    
    
    
    5,133Net Loss Per Unit-Basic and Diluted
    
    $
    (535.84
    )
    
    $
    (347.78
    )
   5




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E ENERGY ADAMS, LLC
  Nine Months
    
    
    Nine MonthsEnded
    
    
    EndedJune 30,
    
    
    June 30,2008
    
    
    2007(Unaudited)
    
    
    (Unaudited)Cash Flows from Operating ActivitiesNet loss
    
    $
    (2,750,473
    )
    
    $
    (1,785,160
    )Adjustments to reconcile net loss to net cash used in operating activities:Depreciation and amortization
    
    
    4,066,019
    
    
    
    10,360Dividend income
    
    
    
    
    
    
    (92,436
    )Change in fair value of derivative instruments
    
    
    657,932
    
    
    
    1,682,512Changes in assets and liabilitiesRestricted cash
    
    
    (762,547
    )
    
    
    (3,302,031
    )Accounts receivable
    
    
    (5,068,355
    )
    
    
    Prepaid and other
    
    
    (1,132,100
    )
    
    
    142,700Inventories
    
    
    (9,176,075
    )
    
    
    Accounts payable
    
    
    1,775,042
    
    
    
    (60,394
    )Accrued expenses
    
    
    114,519
    
    
    
    90,808Accrued interest
    
    
    301,398Net cash used in operating activities
    
    
    (11,974,640
    )
    
    
    (3,313,641
    )Cash Flows from Investing ActivitiesPayments for investments
    
    
    
    
    
    
    (1,000
    )Payments for other intangibles
    
    
    (571,080
    )
    
    
    Capital expenditures
    
    
    (17,820,296
    )
    
    
    (50,033,590
    )Net cash used in investing activities
    
    
    (18,391,376
    )
    
    
    (50,034,590
    )Cash Flows from Financing ActivitiesPayments for debt issuance costs
    
    
    (6,315
    )
    
    
    (200,687
    )Payments for loans and lease
    
    
    (1,360,845
    )Proceeds from additional revolving loan
    
    
    12,668,000
    
    
    
    2,129,000Proceeds from TIF Fianancing
    
    
    
    
    
    
    5,035,000Proceeds from loans
    
    
    24,029,994
    
    
    
    9,600,000Change in restricted cash
    
    
    400,643
    
    
    
    Net cash provided by financing activities
    
    
    35,731,477
    
    
    
    16,563,313Net Increase (Decrease) in Cash and Equivalents
    
    
    5,365,461
    
    
    
    (36,784,918
    )Cash and Equivalents  Beginning of Period
    
    
    770,909
    
    
    
    40,916,036Cash and Equivalents  End of Period
    
    $
    6,136,370
    
    
    $
    4,131,118Supplemental Cash Flow InformationCash paid during the period for:Interest
    
    $
    2,402,891
    
    
    $
    Capitalized interest
    
    
    249,671
    
    
    
    31,560Total
    
    $
    2,652,562
    
    
    $
    31,560Supplemental Disclosure of Noncash Investing and Financing ActivitiesConstruction costs in accounts payable
    
    $
    89,938
    
    
    $
    10,974,853Construction costs in Note payable, related party
    
    
    1,000,000
    
    
    
    Investment  dividend reinvestment
    
    
    
    
    
    
    
   6




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1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
   Nature of Business
  Accounting Estimates
  Revenue Recognition
   Cash and Equivalents
    7




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Restricted Cash
  Accounts Receivable
   Property and Equipment
  Land improvements
    
    15    yearsOffice building
    
    20     yearsOffice equipment
    
    37  yearsPlant and process equipment
    
    720 years
 Environmental Liabilities
  Fair Value of Financial Instruments
    8




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Net Income (Loss) per Unit
  2. INVENTORIES
  Raw materials
    
    $
    4,494,675Work in progress
    
    
    1,233,391Finished goods
    
    
    2,828,215Parts
    
    
    776,856Total
    
    $
    9,333,137
 3. DERIVATIVE INSTRUMENTS
   4. BANK FINANCING
    9




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Covenants
  Subordinated Debt
  Tax Increment Financing (TIF)
   Note Payable  Related party
   10




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##### Table of Contents



Term note
    
    $
    33,762,500Revolving loan
    
    
    14,500,000Tax increment financing
    
    
    5,035,000Note payable, related party
    
    
    1,000,000Subordinated debt
    
    
    2,500,000Capital lease
    
    
    52,640Totals
    
    
    56,850,140Less amounts due within one year
    
    
    5,055,163Long-term debt
    
    $
    51,794,977
  2009
    
    $
    5,342,4372010
    
    
    6,626,0142011
    
    
    5,676,3682012
    
    
    5,723,738After 2013
    
    
    28,426,420Total long-term debt
    
    $
    51,794,977
 5. COMMITMENTS AND CONTINGENCIES
 Construction contracts
  Corn Contracts
  Consulting contracts
   11




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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;
    
    Fluctuation in U.S. petroleum prices and corresponding oil consumption;
    
    Ethanol supply exceeding demand and corresponding ethanol price reductions;
    
    Changes in the supply and price of natural gas
    
    Our ability to generate free cash flow to invest in our business, service our debt and pay our operating
expenses as they are incurred;
    
    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;
    
    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 or expansions of ethanol plants built in close proximity to our ethanol facility
in southeastern Nebraska;
    
    Competition from alternative fuel additives;
    
    Changes in interest rates affecting our debt service payments;
    
    Our ability to retain key employees and maintain labor relations.
  12




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Available Information
 www.eenergyadams.com
 Overview
    Results of Operations for the Quarter Ended June 30, 2008
 Revenues
  Cost of Goods Sold
  Operating Expenses
   13




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Interest Expense and Interest Income
  Net Income (Loss)
  Results of Operations for the Nine Months Ended June 30, 2008
  Nine Months EndedJune 30, 2008(Unaudited)Income Statement Data
    
    Amount
    
    
    %Revenues
    
    $
    85,866,591
    
    
    
    100.00Cost of Goods Sold
    
    $
    82,490,295
    
    
    
    96.06Gross Profit
    
    $
    3,376,296
    
    
    
    3.93Operating Expenses
    
    $
    3,356,014
    
    
    
    3.90Operating Income
    
    $
    20,282
    
    
    
    0.01Other Income
    
    $
    162,145
    
    
    
    0.02Interest Expense
    
    $
    (2,991,877
    )
    
    
    3.48Interest Income
    
    $
    58,977
    
    
    
    0.01Net Loss
    
    $
    (2,750,473
    )
    
    
    3.20
 Revenues
   14




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Undiffer-Biomass-
    
    
    entiatedRenewable
    
    
    Advanced
    
    
    Cellulosic
    
    
    based
    
    
    AdvancedYear
    
    Biofuel
    
    
    Biofuel
    
    
    Biofuel
    
    
    Diesel
    
    
    Biofuel
    
    
    Total RFS2008
    
    
    9.0
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9.02009
    
    
    10.5
    
    
    
    .6
    
    
    
    
    
    
    
    .5
    
    
    
    0.1
    
    
    
    11.12010
    
    
    12
    
    
    
    .95
    
    
    
    .1
    
    
    
    .65
    
    
    
    0.2
    
    
    
    12.952011
    
    
    12.6
    
    
    
    1.35
    
    
    
    .25
    
    
    
    .8
    
    
    
    0.3
    
    
    
    13.952012
    
    
    13.2
    
    
    
    2
    
    
    
    .5
    
    
    
    1
    
    
    
    0.5
    
    
    
    15.22013
    
    
    13.8
    
    
    
    2.75
    
    
    
    1
    
    
    
    
    
    
    
    1.75
    
    
    
    16.552014
    
    
    14.4
    
    
    
    3.75
    
    
    
    1.75
    
    
    
    
    
    
    
    2
    
    
    
    18.152015
    
    
    15
    
    
    
    5.5
    
    
    
    3
    
    
    
    
    
    
    
    2.5
    
    
    
    20.52016
    
    
    15
    
    
    
    7.25
    
    
    
    4.25
    
    
    
    
    
    
    
    3.0
    
    
    
    22.252017
    
    
    15
    
    
    
    9
    
    
    
    5.5
    
    
    
    
    
    
    
    3.5
    
    
    
    242018
    
    
    15
    
    
    
    11
    
    
    
    7
    
    
    
    
    
    
    
    4.0
    
    
    
    262019
    
    
    15
    
    
    
    13
    
    
    
    8.5
    
    
    
    
    
    
    
    4.5
    
    
    
    282020
    
    
    15
    
    
    
    15
    
    
    
    10.5
    
    
    
    
    
    
    
    4.5
    
    
    
    302021
    
    
    15
    
    
    
    18
    
    
    
    13.5
    
    
    
    
    
    
    
    4.5
    
    
    
    332022
    
    
    15
    
    
    
    21
    
    
    
    16
    
    
    
    
    
    
    
    5
    
    
    
    36
    15




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Cost of Goods Sold
  Operating Expenses
  Interest Expense and Interest Income
  Net Income (Loss)
  Plan of Operations for the Next 12 Months
     16




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Permitting
  Marketing Agreements
  Commodity Price Risk Protection
    Employees
  Critical Accounting Estimates
   17




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Liquidity and Capital Resources
  Nine MonthsEnded 06/30/08(unaudited)Net cash used in operating activities
    
    $
    11,974,641Net cash used in investing activities
    
    $
    18,391,376Net cash provided by financing activities
    
    $
    35,731,477
 Cash Flow From Operations
  Cash Flow From Investing Activities
  Cash Flow From Financing Activities
  Short-Term and Long-Term Debt Sources
 Senior Credit Facility:
     18




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Subordinated Debt Financing.
  19




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Tax Increment Financing.
   Note Payable to Fagen, Inc.
 Off-Balance Sheet Arrangements
  
 Item 3. Controls and Procedures
    20




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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
  
 Item 6. Exhibits
  Exhibit
    
    
    
    Method ofNo.
    
    Description
    
    Filing31.1
    
    
    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.  21




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SIGNATURES
  E ENERGY ADAMS, LLCDate: August 13, 2008
    /s/ Carl D. SitzmannCarl D. SitzmannChief Executive Officer
(Principal Executive Officer) Date: August 13, 2008
    /s/ Jonathan CosbyJonathan Cosby
Chief Financial Officer 
(Principal Financial Officer)  22




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EXHIBIT INDEX
 Exhibit
    
    
    
    Method ofNo.
    
    Description
    
    Filing31.1
    
    
    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
    
    *
  23