##### 



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 
 FORM 10-KSB/A
 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.
 For the transition period from  to
 Commission file number 000-52428
 IOWA RENEWABLE ENERGY, LLC
  Iowa

    
    20-3386000(State or other jurisdiction ofincorporation or organization)

    
    (I.R.S. Employer Identification No.)1701 East 7th Street, Washington, Iowa(Address of principal executive offices)

    
    52353(Zip Code)
 (319) 653-2890
  None
  26,331
 þ o
 þ
 o þ
 $16,443,440
     o þ




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EXPLANATORY NOTE:




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ITEM 7. FINANCIAL STATEMENTS.
 
 Report of Independent Registered Public Accounting Firm




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##### 



Iowa Renewable Energy, LLC
 Balance Sheet
September 30, 2007 and 2006
 2007
    
    
    2006AssetsCurrent Assets:Cash and cash equivalents
    
    $
    725,522
    
    
    $
    473,505Margin deposit
    
    
    1,337,860
    
    
    
    Accounts receivable
    
    
    5,614,315
    
    
    
    Federal incentive receivable
    
    
    822,228
    
    
    
    Inventory
    
    
    3,815,722
    
    
    
    Prepaids and other assets
    
    
    37,032
    
    
    
    12,352,679
    
    
    
    473,505Property and Equipment:Land
    
    
    420,000
    
    
    
    420,000Plant and processing equipment
    
    
    41,464,111
    
    
    
    Office building, furniture and fixtures
    
    
    572,665
    
    
    
    2,325Equipment & vehicles
    
    
    226,424
    
    
    
    4,566Construction in process
    
    
    
    
    
    
    15,065,42442,683,200
    
    
    
    15,492,315Accumulated depreciation
    
    
    (663,962
    )
    
    
    (1,460
    )42,019,238
    
    
    
    15,490,855Other Assets:Cash, restricted for construction of property and equipment
    
    
    
    
    
    
    10,263,792Financing costs, net
    
    
    542,513
    
    
    
    83,245542,513
    
    
    
    10,347,037$
    54,914,430
    
    
    $
    26,311,397Liabilities and Members EquityCurrent Liabilities:Current maturities of long-term debt
    
    $
    33,342,558
    
    
    $
    40,000Accounts payable and accrued expenses
    
    
    1,374,711
    
    
    
    10,345Derivative financial instruments
    
    
    510,247
    
    
    
    Construction payable, including retainage
2007 $300,000; 2006 $737,500
    
    
    300,000
    
    
    
    4,119,524Total current liabilities
    
    
    35,527,516
    
    
    
    4,169,869Long-Term Debt
    
    
    
    
    
    
    360,000CommitmentsMembers Equity:Member contributions, net of issuance costs, units
outstanding 2007 26,331; 2006 25,231
    
    
    23,165,422
    
    
    
    22,615,422Accumulated (deficit)
    
    
    (3,778,508
    )
    
    
    (833,894
    )19,386,914
    
    
    
    21,781,528$
    54,914,430
    
    
    $
    26,311,397




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##### 



Iowa Renewable Energy, LLC
 Statements of Operations
Years Ended September 30, 2007 and 2006
 2007
    
    
    2006Revenues:Sales
    
    $
    14,770,787
    
    
    $
    Federal incentives
    
    
    1,672,653
    
    
    
    16,443,440
    
    
    
    Cost of sales
    
    
    18,358,810
    
    
    
    Gross (loss)
    
    
    (1,915,370
    )
    
    
    Operating expenses:Consulting fees
    
    
    
    
    
    
    344,844General and administrative
    
    
    533,133
    
    
    
    95,367Equity based compensation
    
    
    
    
    
    
    600,000Depreciation
    
    
    9,500
    
    
    
    1,460542,633
    
    
    
    1,041,671(Loss) before other income (expense)
    
    
    (2,458,003
    )
    
    
    (1,041,671
    )Other income (expense):Interest income
    
    
    229,859
    
    
    
    320,738Interest expense
    
    
    (716,470
    )
    
    
    Net (loss)
    
    $
    (2,944,614
    )
    
    $
    (720,933
    )Weighted average units outstanding
    
    
    26,241
    
    
    
    13,164Net (loss) per unit  basic and diluted
    
    $
    (112.21
    )
    
    $
    (54.77
    )




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Iowa Renewable Energy, LLC
 Statements of Changes in Members Equity (Deficit)
Years Ended September 30, 2007 and 2006
 Member
    
    
    Accumulated
    
    
    Total MembersMember Units
    
    
    Contributions
    
    
    Deficit
    
    
    Equity (Deficit)Balance, September 30, 2005
    
    
    220
    
    
    $
    110,000
    
    
    $
    (112,961
    )
    
    $
    (2,961
    )Member contributions, net of costs of $285,578
    
    
    24,511
    
    
    
    21,655,422
    
    
    
    
    
    
    
    21,655,422Issuance of units for consulting services
    
    
    500
    
    
    
    250,000
    
    
    
    
    
    
    
    250,000Equity based compensation
    
    
    
    
    
    
    600,000
    
    
    
    
    
    
    
    600,000Net (loss)
    
    
    
    
    
    
    
    
    
    
    (720,933
    )
    
    
    (720,933
    )Balance, September 30, 2006
    
    
    25,231
    
    
    
    22,615,422
    
    
    
    (833,894
    )
    
    
    21,781,528Exercise of unit options
    
    
    1,100
    
    
    
    550,000
    
    
    
    
    
    
    
    550,000Net (loss)
    
    
    
    
    
    
    
    
    
    
    (2,944,614
    )
    
    
    (2,944,614
    )Balance, September 30, 2007
    
    
    26,331
    
    
    $
    23,165,422
    
    
    $
    (3,778,508
    )
    
    $
    19,386,914




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Iowa Renewable Energy, LLC
Statements of Cash Flows
 Years Ended September 30, 2007 and 2006
 2007
    
    
    2006Cash Flows from Operating Activities:Net (loss)
    
    $
    (2,944,614
    )
    
    $
    (720,933
    )Adjustments to reconcile net (loss) to net cash
provided by (used in) operating activities:Depreciation
    
    
    662,502
    
    
    
    1,460Amortization
    
    
    25,432
    
    
    
    Units issued for consulting services
    
    
    
    
    
    
    250,000Equity based compensation
    
    
    
    
    
    
    600,000Unrealized loss on derivative financial instruments
    
    
    510,247
    
    
    
    Change in working capital components:(Increase) in margin deposits
    
    
    (1,337,860
    )
    
    
    (Increase) in accounts receivable
    
    
    (6,436,543
    )
    
    
    (Increase) in inventory
    
    
    (3,815,722
    )
    
    
    (Increase) in prepaids and other assets
    
    
    (37,032
    )
    
    
    Increase in accounts payable and accrued expenses
    
    
    1,364,366
    
    
    
    (2,326
    )Net cash provided by (used in) operating activities
    
    
    (12,009,224
    )
    
    
    128,201Cash Flows from Investing Activities:Purchase and construction of property and equipment
    
    
    (30,942,594
    )
    
    
    (11,372,791
    )(Increase) decrease in cash restricted
    
    
    10,263,792
    
    
    
    (10,263,792
    )Net cash used in investing activities
    
    
    (20,678,802
    )
    
    
    (21,636,583
    )Cash Flows from Financing Activities:Issuance of membership units, an exercise of unit options
    
    
    550,000
    
    
    
    21,941,000Payments for offering costs
    
    
    
    
    
    
    (285,578
    )Payments for financing costs
    
    
    (552,515
    )
    
    
    (83,245
    )Proceeds from short-term borrowings
    
    
    
    
    
    
    1,052,146Payment on short-term borrowings
    
    
    
    
    
    
    (1,052,146
    )Proceeds from long-term borrowings
    
    
    32,997,558
    
    
    
    400,000Payment on long-term borrowings
    
    
    (55,000
    )
    
    
    Net cash provided by financing activities
    
    
    32,940,043
    
    
    
    21,972,177Net increase in cash and cash equivalents
    
    
    252,017
    
    
    
    463,795Cash and cash equivalents:Beginning
    
    
    473,505
    
    
    
    9,710Ending
    
    $
    725,522
    
    
    $
    473,505Supplemental Disclosure of Cash Flow Information, Cash payments for interest, net of amount capitalized
    
    $
    443,754
    
    
    $
    Supplemental
Disclosure of Noncash Operating and Financing Activities:Construction in progress included in accounts payable
    
    $
    300,000
    
    
    $
    4,119,524Amortized financing costs included in construction in process
    
    
    67,815
    
    
    
    




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Iowa Renewable Energy, LLC
 Notes to Financial Statements
 Note 1. Nature of Business, Basis of Presentation and Significant Accounting Policies
 Nature of business:
  Significant accounting policies:
 Use of estimates
 Concentrations of credit risk
 Cash and cash equivalents
 Accounts receivable
  Inventory
 Raw material
    
    $
    469,649Finished goods
    
    
    3,346,073$
    3,815,722
 Organizational costs and startup costs
 Property and equipment
 YearsPlant and process equipment
    
    
    10-20Office building
    
    
    10-20Office equipment
    
    
    3-7Other equipment
    
    
    3-7




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Iowa Renewable Energy, LLC
 Notes to Financial Statements
  Land
 Offering costs
 Financing costs
 Derivative instruments
  Revenue recognition
 Federal incentive payments and receivables




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Iowa Renewable Energy, LLC
 Notes to Financial Statements
 Cost of sales
 Cost of Revenue/Sales
    
    Dollars
    
    
    PercentageInput costs (soy oil, chemicals, etc.)
    
    $
    15,809,583
    
    
    
    86.11
    %Plant wages and salaries
    
    
    398,868
    
    
    
    2.17Utilities and waste disposal
    
    
    318,185
    
    
    
    1.73Fees-marketing, sales, procurement
    
    
    300,891
    
    
    
    1.64Loss on derivative financial instruments
    
    
    524,827
    
    
    
    2.86Depreciation
    
    
    653,002
    
    
    
    3.56Maint., supplies and other expenses
    
    
    353,454
    
    
    
    1.93Total cost of revenue/sales
    
    $
    18,358,810
    
    
    
    100.00
    %
  Shipping and handling costs
 Income taxes
 (Loss) per unit
 Fair value of financial instruments
 Unit options Accounting for Stock Issued to Employees,
 Accounting for Stock-Based
Compensation, .




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Iowa Renewable Energy, LLC
 Notes to Financial Statements
  Net Loss:As reported
    
    $
    (720,933
    )Deduct additional stock-based compensation
expense determined under the minimum
value based method for all awards
    
    
    (17,456
    )Pro forma
    
    $
    (738,389
    )Loss per unit:As reported
    
    $
    (54.77
    )Pro forma
    
    
    (56.09
    )
 Share-Based Payment
 Note 2. Major Customer and Related Party
    Note 3. Members Equity




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Iowa Renewable Energy, LLC
 Notes to Financial Statements
    Note 4. Long-Term Debt and Subsequent Event
  Note payable to Marshall Bank Group for construction loan (A)
    
    $
    32,997,558Note payable to the Iowa Department of Economic Development (B)
    
    
    345,000$
    33,342,558
  (A)
    
    On October 26, 2006, the Company entered into a $34,715,000 construction-term loan
agreement which will used to complete the biodiesel project. The loan consists of two
phases: a construction phase where the Company will make periodic requests for fund
advances to meet construction obligations and at the completion of construction, but in no
event later than February 2008, the loan will convert to a senior debt instrument. The
note bears interest at prime plus .75% (8.50%as of September 30, 2007).In connection with this loan, the interest rate will be established and a number of reserves
will be established in accordance with Article IV of the loan agreement which is summarized
below:
 Interest rate
 The Wall Street Journal
    Interest reserve




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Iowa Renewable Energy, LLC
 Notes to Financial Statements
 Debt service reserve
 Capital improvements reserve
 Sinking fund
 (B)
    
    The Company has a $300,000 loan agreement and a $100,000 forgivable loan agreement with
the Iowa Department of Economic Development. The $300,000 loan is noninterest-bearing and
due in monthly payments of $5,000 beginning December 2006 for a term of 60 months with a
balance as of September 30, 2007 of $245,000. Borrowings under this agreement are
collateralized by substantially all of the Companys assets and will be subordinate to the
$34,715,000 of financial institution debt. The $100,000 loan is forgivable upon the
completion of 36 months of the 60 month term.
  Year ending September 30:2008
    
    $
    1,635,0002009
    
    
    2,579,0002010
    
    
    2,782,0002011
    
    
    3,000,0002012
    
    
    3,181,000Thereafter
    
    
    20,166,000$
    33,343,000
  Note 5. Lease Commitments
  Years ending September 30:2007
    
    $
    7,0732008
    
    
    14,1122009
    
    
    14,1122010
    
    
    3,300$
    38,597




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Iowa Renewable Energy, LLC
 Notes to Financial Statements
  Note 6. Related Party Transactions
   .
 Note 7. Pending Accounting Pronouncements




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Iowa Renewable Energy, LLC
 Notes to Financial Statements
 Note 8. Going Concern




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ITEM 13. EXHIBITS.
  Exhibit
    
    
    
    Method ofNo.
    
    Description
    
    Filing10.1
    
    
    Amendment to Management and Operational
Services Agreement, dated August 3, 2007
    
    131.1
    
    
    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. Section 1350
    
    *32.2
    
    
    Certificate pursuant to 18 U.S.C. Section 1350
    
    *
 
 (*)
    
    Filed herewith.(1)
    
    Incorporated by reference to the exhibit of the same number on our Quarterly Report on Form
10-QSB for the quarter ended June 30, 2007 and filed on August 14, 2007.
 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
  SIGNATURES
  IOWA RENEWABLE ENERGY, LLCDate: February 20, 2008
    
    /s/ Mike Bohannan

Mike Bohannan 


Chairman and President
 Date: February 20, 2008
    
        /s/ William J. Pim

William J. PimChief Financial Officer
  Date: February 20, 2008
    
        /s/ Mike Bohannan

Mike BohannanChairman and PresidentDate: February 20, 2008
    
        /s/ William J. Pim

William J. PimChief Financial Officer




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Date: February 20, 2008
    
        /s/ Mark Cobb

Mark CobbVice Chairman and DirectorDate: February 20, 2008
    
        /s/ Dick Gallagher

Dick GallagherSecretary and DirectorDate: February 20, 2008
    
        /s/ Warren L. Bush

Warren L. Bush, DirectorDate: February 20, 2008
    
        /s/ Jimmie W. Hanshaw

Jimmie W. Hanshaw, DirectorDate: February 20, 2008
    
        /s/ William J. Horan

William J. Horan, DirectorDate: February 20, 2008
    
        /s/ Edwin J. Hershberger

Edwin J. Hershberger, DirectorDate: February 20, 2008
    
        /s/ Denny Mauser

Denny Mauser, DirectorDate: February 20, 2008
    
        /s/ John Heisdorffer

John Heisdorffer, DirectorDate: February 20, 2008
    
        /s/ Tom Schroeder

Tom Schroeder, DirectorDate: February 20, 2008
    
        /s/ Mark Muench

Mark Muench, Director




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EXHIBIT INDEX
 Exhibit
    
    
    
    Method ofNo.
    
    Description
    
    Filing10.1
    
    
    Amendment to Management and Operational
Services Agreement, dated August 3, 2007
    
    
    131.1
    
    
    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. Section 1350
    
    
    *32.2
    
    
    Certificate pursuant to 18 U.S.C. Section 1350
    
    
    *
 
 (*)
    
    Filed herewith.(1)
    
    Incorporated by reference to the exhibit of the same number on our Quarterly Report on Form
10-QSB for the quarter ended June 30, 2007 and filed on August 14, 2007.