##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 þ
    
    Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934.
 For the quarter ended June 30, 2009
 OR
 o
    
    Transition report under Section 13 or 15(d) of the Exchange Act.
 For the transition period from  to
 Commission file number 000-52429
 CENTRAL IOWA ENERGY, LLC
  Iowa
(State or other jurisdiction of 
incorporation or organization)
    
    71-0988301
(I.R.S. Employer Identification No.)
 3426 EAST 28 TH STREET N.
NEWTON, IOWA 50208
 (641) 791-1010
  þ o
  o o
  Large Accelerated Filer o
    
    Accelerated filer o
    
    Non-Accelerated Filer o
    
    Smaller reporting company þ
  o þ




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##### 



INDEX
 Page No.PART I. FINANCIAL INFORMATION
    
    
    3Item 1. Unaudited Financial Statements
    
    
    3Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    16Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    28Item 4T. Controls And Procedures
    
    
    28PART II. OTHER INFORMATION
    
    
    29Item 1. Legal Proceedings
    
    
    29Item 1A. Risk Factors
    
    
    29Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    30Item 3. Defaults Upon Senior Securities
    
    
    30Item 4. Submission of Matters to a Vote of Security Holders
    
    
    30Item 5. Other Information
    
    
    30Item 6. Exhibits
    
    
    31SIGNATURES
    
    
    31Exhibit 10.9Exhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2
   2




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PART I. FINANCIAL INFORMATION
 
 Item 1.
    
    Unaudited Financial Statements
 CENTRAL IOWA ENERGY, LLC
  June 30,
    
    
    September 30,2009
    
    
    2008(Unaudited)ASSETSCurrent AssetsCash and equivalents
    
    $
    681,526
    
    
    $
    690,509Due from Broker
    
    
    75
    
    
    
    218,680Trade accounts receivable  related party, less allowance for doubtful
accounts of $1,021,916 and $0 in 2009 and 2008, respectively
    
    
    71,692
    
    
    
    1,200,587Federal incentive receivable
    
    
    
    
    
    
    457,218Prepaid expenses
    
    
    207,853
    
    
    
    62,610Derivative instruments
    
    
    
    
    
    
    70,556Inventories
    
    
    284,674
    
    
    
    7,776,472Total current assets
    
    
    1,245,820
    
    
    
    10,476,632Property and EquipmentLand and improvements
    
    
    7,680,111
    
    
    
    7,680,111Office equipment
    
    
    40,603
    
    
    
    40,603Office building
    
    
    629,300
    
    
    
    629,300Plant and process equipment
    
    
    32,683,498
    
    
    
    32,593,225Construction in Process
    
    
    
    
    
    
    47,08341,033,512
    
    
    
    40,990,322Less accumulated depreciation
    
    
    5,718,349
    
    
    
    3,798,838Net property and equipment
    
    
    35,315,163
    
    
    
    37,191,484Other AssetsFinancing costs, net of amortization
    
    
    167,608
    
    
    
    307,046Restricted cash
    
    
    465,852
    
    
    
    Total other assets
    
    
    633,460
    
    
    
    307,046Total Assets
    
    $
    37,194,443
    
    
    $
    47,975,162LIABILITIES AND EQUITYCurrent LiabilitiesCurrent maturities of long-term debt
    
    $
    23,996,424
    
    
    $
    24,811,856Revolving line of credit
    
    
    550,000
    
    
    
    3,000,000Accounts payable
    
    
    318,909
    
    
    
    1,111,983Accounts payable  related party
    
    
    115,138
    
    
    
    423,041Accrued interest payable
    
    
    112,206
    
    
    
    162,146Accrued expenses
    
    
    316,860
    
    
    
    278,012Total current liabilities
    
    
    25,409,537
    
    
    
    29,787,038Long-Term Debt, less current maturities
    
    
    
    
    
    
    Deferred Grant Financing
    
    
    745,000
    
    
    
    745,000Commitments and ContingenciesMembers EquityMember contributions, net of costs related to capital contributions,
26,672 units outstanding
    
    
    23,849,120
    
    
    
    23,849,120Deficit accumulated
    
    
    (12,809,214
    )
    
    
    (6,405,996
    )Total members equity
    
    
    11,039,906
    
    
    
    17,443,124Total Liabilities and Members Equity
    
    $
    37,194,443
    
    
    $
    47,975,162
   3




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CENTRAL IOWA ENERGY, LLC
  Three Months Ended
    
    
    Three Months EndedJune 30,
    
    
    June 30,2009
    
    
    2008(Unaudited)
    
    
    (Unaudited)RevenuesSales to related party
    
    $
    1,312,201
    
    
    $
    24,555,906Federal incentives
    
    
    10,524
    
    
    
    3,984,9871,322,725
    
    
    
    28,540,893Cost of Goods Sold
    
    
    1,855,394
    
    
    
    24,289,210Gross Loss
    
    
    (532,669
    )
    
    
    4,251,683Operating ExpensesProfessional fees
    
    
    225,616
    
    
    
    55,524General and administrative
    
    
    268,853
    
    
    
    551,960Total
    
    
    494,469
    
    
    
    607,484Operating Loss
    
    
    (1,027,138
    )
    
    
    3,644,199Other Income (Expenses)Interest income
    
    
    2,710
    
    
    
    7,867Interest (expense)
    
    
    (394,688
    )
    
    
    (452,229
    )Total
    
    
    (391,978
    )
    
    
    (444,362
    )Net Loss
    
    $
    (1,419,116
    )
    
    $
    3,199,837Weighted Average Units Outstanding
    
    
    26,672
    
    
    
    26,672Net Loss Per Unit  Basic and Diluted
    
    $
    (53.21
    )
    
    $
    119.97
   4




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CENTRAL IOWA ENERGY, LLC
  Nine Months Ended
    
    
    Nine Months EndedJune 30,
    
    
    June 30,2009
    
    
    2008(Unaudited)
    
    
    (Unaudited)RevenuesSales to related party
    
    $
    8,128,024
    
    
    $
    51,738,189Federal incentives
    
    
    1,186,376
    
    
    
    9,604,4629,314,400
    
    
    
    61,342,651Cost of Goods Sold
    
    
    12,805,136
    
    
    
    58,764,726Gross Loss
    
    
    (3,490,736
    )
    
    
    2,577,925Operating ExpensesProfessional fees
    
    
    460,915
    
    
    
    235,818General and administrative
    
    
    1,050,816
    
    
    
    1,606,189Total
    
    
    1,511,731
    
    
    
    1,842,007Operating Loss
    
    
    (5,002,467
    )
    
    
    735,918Other Income (Expenses)Interest income
    
    
    12,512
    
    
    
    29,185Interest (expense)
    
    
    (1,413,263
    )
    
    
    (1,605,940
    )Total
    
    
    (1,400,751
    )
    
    
    (1,576,755
    )Net Income (Loss)
    
    $
    (6,403,218
    )
    
    $
    (840,837
    )Weighted Average Units Outstanding
    
    
    26,672
    
    
    
    26,172Net Loss Per Unit  Basic and Diluted
    
    $
    (240.07
    )
    
    $
    (32.13
    )
   5




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CENTRAL IOWA ENERGY, LLC
  Nine Months Ended
    
    
    Nine Months EndedJune 30,
    
    
    June 30,2009
    
    
    2008(Unaudited)
    
    
    (Unaudited)Cash Flows from Operating ActivitiesNet loss
    
    $
    (6,403,218
    )
    
    $
    (840,837
    )Adjustments to reconcile net loss to net cash provided by (used in)
operating activities:Depreciation and amortization
    
    
    2,058,949
    
    
    
    1,934,058Change in assets and liabilitiesDue from Broker
    
    
    218,605
    
    
    
    158,480Accounts receivable
    
    
    1,128,895
    
    
    
    720,436Other receivable
    
    
    457,218
    
    
    
    (184,382
    )Inventories
    
    
    7,491,798
    
    
    
    (2,718,175
    )Prepaid expenses
    
    
    (145,243
    )
    
    
    11,534Derivative instruments
    
    
    70,556
    
    
    
    (657,454
    )Accounts payable
    
    
    (1,100,977
    )
    
    
    473,414Accrued expenses
    
    
    38,848
    
    
    
    131,539Accrued interest payable
    
    
    (49,940
    )
    
    
    (65,242
    )Net cash provided by (used in) operating activities
    
    
    3,765,491
    
    
    
    (1,036,629
    )Cash Flows from Investing ActivitiesCapital expenditures
    
    
    (43,190
    )
    
    
    (27,020
    )Increase in restricted cash
    
    
    (465,852
    )
    
    
    Sales tax refund from equipment purchases
    
    
    
    
    
    
    461,517Net cash provided by (used in) investing activities
    
    
    (509,042
    )
    
    
    434,497Cash Flows from Financing ActivitiesProceeds on revolving line of credit
    
    
    
    
    
    
    2,500,000Payments on revolving line of credit
    
    
    (2,450,000
    )
    
    
    Proceeds from long-term debt
    
    
    
    
    
    
    400,000Payments for long-term debt
    
    
    (815,432
    )
    
    
    (1,647,946
    )Net cash provided by (used in) financing activities
    
    
    (3,265,432
    )
    
    
    1,252,054Net Increase (Decrease) in Cash
    
    
    (8,983
    )
    
    
    649,922Cash and cash equivalents  Beginning of Period
    
    
    690,509
    
    
    
    2,268,725Cash and cash equivalents  End of Period
    
    $
    681,526
    
    
    $
    2,918,647Supplemental Disclosure of Cash Flow Information,Cash payments for interest, net of amount capitalized
    
    $
    1,323,765
    
    
    $
    1,671,182
   6




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CENTRAL IOWA ENERGY, LLC
NOTES TO UNAUDITED FINANCIAL STATEMENTS
June 30, 2009 and 2008
 NOTE A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 PRINCIPAL BUSINESS ACTIVITY 
 BASIS OF PRESENTATION 
  USE OF ESTIMATES 
 REVENUE RECOGNITION 
 FEDERAL INCENTIVE PAYMENTS AND RECEIVABLES 
 CASH AND EQUIVALENTS 
  ACCOUNTS RECEIVABLE 
   7




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CENTRAL IOWA ENERGY, LLC
NOTES TO UNAUDITED FINANCIAL STATEMENTS
June 30, 2009 and 2008
  INVENTORIES 
 DERIVATIVE INSTRUMENTS  Accounting for Derivative Instruments and Hedging Activities
   Three Months Ended
    
    
    Three Months Ended
    
    
    Nine Months Ended
    
    
    Nine Months EndedJune 30,
    
    
    June 30,
    
    
    June 30,
    
    
    June 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Realized gain/(loss)
    
    $
    
    
    
    $
    (113,405
    )
    
    $
    1,241,595
    
    
    $
    (2,884,058
    )Change in unrealized gain (loss)
    
    
    
    
    
    
    283,431
    
    
    
    (70,556
    )
    
    
    657,454Net gain (loss)
    
    $
    
    
    
    $
    170,026
    
    
    $
    1,171,039
    
    
    $
    (2,226,604
    )
 PROPERTY AND EQUIPMENT 
  Land improvements
    
    15-20 yearsOffice building
    
    10-20 yearsOffice equipment
    
    5 yearsPlant and process equipment
    
    10-20 years
  8




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CENTRAL IOWA ENERGY, LLC
NOTES TO UNAUDITED FINANCIAL STATEMENTS
June 30, 2009 and 2008
  RESTRICTED CASH 
 FINANCING COSTS 
 FAIR VALUE OF FINANCIAL INSTRUMENTS 
 DEFERRED GRANT FINANCING 
 INCOME TAXES 
 RECLASSIFICATIONS 
 RECENTLY ADOPTED ACCOUNTING STANDARDS  Interim Disclosures about Fair Value of Financial
Instruments
  9




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CENTRAL IOWA ENERGY, LLC
NOTES TO UNAUDITED FINANCIAL STATEMENTS
June 30, 2009 and 2008
 Subsequent
Events
 NEW ACCOUNTING PRONOUNCEMENTS  The FASB Accounting
Standards Codification and the Hierarchy of Generally Accepted Accounting Principles  a
replacement of SFAS No. 162
 NOTE B: INVENTORIES
  2009
    
    
    2008Raw materials
    
    $
    160,411
    
    
    $
    4,475,185Work in process
    
    
    
    
    
    
    217,361Finished goods
    
    
    124,263
    
    
    
    3,922,563Total
    
    $
    284,674
    
    
    $
    8,615,109
 NOTE C: RELATED PARTY TRANSACTIONS
    10




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CENTRAL IOWA ENERGY, LLC
NOTES TO UNAUDITED FINANCIAL STATEMENTS
June 30, 2009 and 2008
     11




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CENTRAL IOWA ENERGY, LLC
NOTES TO UNAUDITED FINANCIAL STATEMENTS
June 30, 2009 and 2008
 NOTE D: REVOLVING LINE OF CREDIT
  NOTE E: LONG-TERM DEBT
  2009Mortgage Term Note payable to F & M Bank  Iowa  See details below
    
    $
    18,616,731Iowa Department of Economic Development  See details below
    
    
    325,000Term Revolving Note payable to F & M Bank  Iowa  See details below
    
    
    5,000,000Equipment capital lease, due in monthly installments of $3,345
through August 2010 with a final option payment of $11,500 for the
purchase of the equipment.
    
    
    54,693$
    23,996,424
       12




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CENTRAL IOWA ENERGY, LLC
NOTES TO UNAUDITED FINANCIAL STATEMENTS
June 30, 2009 and 2008
    NOTE F: RETIREMENT PLAN
  NOTE G: COMMITMENTS AND CONTINGENCIES
 Utility Contracts
    Contingencies
   13




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CENTRAL IOWA ENERGY, LLC
NOTES TO UNAUDITED FINANCIAL STATEMENTS
June 30, 2009 and 2008
 NOTE H: GOING CONCERN
      14




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CENTRAL IOWA ENERGY, LLC
NOTES TO UNAUDITED FINANCIAL STATEMENTS
June 30, 2009 and 2008
  
    
    Raising equity through one or more private placement offerings or state registered
offering of the Companys membership units;
    
    Seeking additional sources of short-term debt financing and credit facilities;
    
    Refinancing the current debt financing and credit facilities; or
    
    Seeking strategic business opportunities, including with other biodiesel plants;
   NOTE I: SUBSEQUENT EVENTS
   15




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Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations
  Cautionary Statements Regarding Forward Looking Statements
 RISK FACTORS
 
    
    Changes in interest rates or the availability, terms and conditions of credit;
    
    Our ability to generate free cash flow to invest in our business and service our debt;
    
    Our ability to raise additional equity capital proceeds;
    
    Overcapacity within the biodiesel industry resulting in increased competition and costs for feedstock
and/or decreased prices for our biodiesel and glycerin;
    
    Decrease in the demand for biodiesel;
    
    Actual biodiesel and glycerin production varying from expectations;
    
    Availability and cost of products and raw materials, particularly soybean oil, animal fats, and methanol;
    
    Changes in the price and market for biodiesel and its co-products, such as glycerin;
    
    Our ability to market and our reliance on third parties to market our products;
    
    Changes in or elimination of governmental laws, tariffs, trade or other controls or enforcement
practices such as:
 
    
    national, state or local energy policy;
    
    federal and state biodiesel tax incentives;
    
    legislation establishing a renewable fuel standard or other legislation mandating the use of
biodiesel or other lubricity additives; or
    
    environmental laws and regulations that apply to our plant operations and their enforcement;
 
    
    Total U.S. consumption of diesel fuel and biodiesel, fuel prices, and consumer attitudes regarding the
use of biodiesel;
    
    Fluctuations in petroleum and diesel prices;
    
    Changes in our business strategy, capital improvements or development plans;
    
    Results of our hedging strategies;
    
    Our liability resulting from litigation;
    
    Our ability to retain key employees and maintain labor relations;
    
    Changes and advances in biodiesel production technology;
    
    Competition from alternative fuels and alternative fuel additives;
    
    The occurrence of events of default under our financing agreement, our failure to comply with loan
covenants contained in our financing agreements and the response of our lender to such defaults and
non-compliance;
    
    Our ability to continue to export our biodiesel and the European Commissions imposition of tariffs or
other duties on biodiesel imported from the U.S.;
    
    Current unfavorable domestic and international economic conditions;
    
    Our ability to enter into toll processing agreements or other arrangements that shift responsibility for
feedstock procurement and costs to other parties;
    
    Changes in plant production capacity or technical difficulties in operating the plant for any reason,
including changes due to events beyond our control or as a result of intentional reductions in
production or plant shutdowns;
  16




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
    
    The closing, or the failure to close, of the transaction contemplated by the Amended and Restated Asset
Purchase Agreement entered into by the Company with REG and certain other parties affiliated with REG;
    
    Our ability to generate profits;
    
    Our reliance on REG for management, marketing and procurement services and our ability to successfully
operate the plant in light of REGs intent to terminate our current Management and Operational Services
Agreement; and
    
    Other factors described elsewhere in this report.
  Overview
    17




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Amended and Restated Asset Purchase Agreement
    18




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Results of Operations for the Three Months Ended June 30, 2009 and 2008
  Three Months Ended
June 30, 2009
    
    
    Three Months Ended
June 30, 2008(Unaudited)
    
    
    (Unaudited)Statement of Operations Data
    
    Amount
    
    
    Percent
    
    
    Amount
    
    
    PercentRevenues
    
    $
    1,322,725
    
    
    
    100.00
    %
    
    $
    28,540,893
    
    
    
    100.00
    %Cost of Goods Sold
    
    
    1,855,394
    
    
    
    140.27
    %
    
    
    24,289,210
    
    
    
    85.10
    %Gross Profit (Loss)
    
    
    (532,669
    )
    
    
    (40.27
    %)
    
    
    4,251,683
    
    
    
    14.90
    %Operating Expenses
    
    
    494,469
    
    
    
    37.38
    %
    
    
    607,484
    
    
    
    2.13
    %Operating Income (Loss)
    
    
    (1,027,138
    )
    
    
    (77.65
    %)
    
    
    3,644,199
    
    
    
    12.77
    %Other Income (Expense)
    
    
    (391,978
    )
    
    
    (29.64
    %)
    
    
    (444,362
    )
    
    
    (1.56
    %)Net Gain (Loss)
    
    
    (1,419,116
    )
    
    
    (107.29
    %)
    
    
    3,199,837
    
    
    
    11.21
    %
 Revenues
  Three Months Ended
June 30, 2009
    
    
    Three Months Ended
June 30, 2008Revenue Source
    
    Amount
    
    
    % of Revenues
    
    
    Amount
    
    
    % of RevenuesBiodiesel Sales
    
    $
    356,877
    
    
    
    26.98
    %
    
    $
    23,192,859
    
    
    
    81.26
    %Glycerin, Fatty
Acid and Soap Stock
Sales
    
    
    518,375
    
    
    
    39.19
    %
    
    
    1,363,047
    
    
    
    4.78
    %Toll Processing
Service Fees
    
    
    436,949
    
    
    
    33.03
    %
    
    
    0
    
    
    
    0.00
    %Federal Incentives
    
    
    10,524
    
    
    
    0.80
    %
    
    
    3,984,987
    
    
    
    13.96
    %Total Revenues
    
    $
    1,322,725
    
    
    
    100.00
    %
    
    $
    28,540,893
    
    
    
    100.00
    %
  19




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Cost of Goods Sold
   20




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Three Months Ended
June 30, 2009
    
    
    Three Months Ended
June 30, 2008(Unaudited)
    
    
    (Unaudited)Component of Cost of Goods Sold
    
    Amount
    
    
    Percent
    
    
    Amount
    
    
    PercentFeedstock and Chemical Inputs
    
    $
    586,947
    
    
    
    31.63
    %
    
    $
    22,078,250
    
    
    
    90.90
    %Plant Wages and Salaries
    
    
    238,364
    
    
    
    12.85
    %
    
    
    286,197
    
    
    
    1.18
    %Utilities
    
    
    226,569
    
    
    
    12.21
    %
    
    
    617,457
    
    
    
    2.54
    %Fees-Procurement, Operation Management
    
    
    0
    
    
    
    0.00
    %
    
    
    80,179
    
    
    
    0.33
    %(Gain) Loss on Derivative Financial Instruments
    
    
    0
    
    
    
    0.00
    %
    
    
    (170,026
    )
    
    
    (0.70
    %)Depreciation
    
    
    640,267
    
    
    
    34.51
    %
    
    
    638,435
    
    
    
    2.63
    %Freight
    
    
    10,797
    
    
    
    0.58
    %
    
    
    548,181
    
    
    
    2.26
    %Maintenance, Supplies and Other Expenses
    
    
    152,450
    
    
    
    8.22
    %
    
    
    210,537
    
    
    
    0.86
    %Total
    
    
    1,855,394
    
    
    
    100.00
    %
    
    
    24,289,210
    
    
    
    100.00
    %
    21




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Operating Expenses
  Other Income (Expenses)
  Results of Operations for the Nine Months Ended June 30, 2009 and 2008
  Nine Months Ended
June 30, 2009
    
    
    Nine Months Ended
June 30, 2008(Unaudited)
    
    
    (Unaudited)Statement of Operations Data
    
    Amount
    
    
    Percent
    
    
    Amount
    
    
    PercentRevenues
    
    $
    9,314,400
    
    
    
    100.00
    %
    
    $
    61,342,651
    
    
    
    100.00
    %Cost of Goods Sold
    
    
    12,805,136
    
    
    
    137.48
    %
    
    
    58,764,726
    
    
    
    95.80
    %Gross Profit (Loss)
    
    
    (3,490,736
    )
    
    
    (37.48
    %)
    
    
    2,577,925
    
    
    
    4.20
    %Operating Expenses
    
    
    1,511,731
    
    
    
    16.23
    %
    
    
    1,842,007
    
    
    
    3.00
    %Operating Income (Loss)
    
    
    (5,002,467
    )
    
    
    (53.71
    %)
    
    
    735,918
    
    
    
    1.20
    %Other Income (Expense)
    
    
    (1,400,751
    )
    
    
    (15.04
    %)
    
    
    (1,576,755
    )
    
    
    (2.57
    %)Net Income (Loss)
    
    
    (6,403,218
    )
    
    
    (68.75
    %)
    
    
    (840,837
    )
    
    
    (1.37
    %)
 Revenues
  Nine Months Ended
June 30, 2009
    
    
    Nine Months Ended
June 30, 2008Revenue Source
    
    Amount
    
    
    % of Revenues
    
    
    Amount
    
    
    % of RevenuesBiodiesel Sales
    
    $
    6,516,456
    
    
    
    69.96
    %
    
    $
    48,969,503
    
    
    
    79.83
    %Glycerin, Fatty Acid and
Soap Stock Sales
    
    
    1,017,489
    
    
    
    10.92
    %
    
    
    2,768,686
    
    
    
    4.51
    %Toll Processing Service Fees
    
    
    594,079
    
    
    
    6.38
    %
    
    
    0
    
    
    
    0.00
    %Federal Incentives
    
    
    1,186,376
    
    
    
    12.74
    %
    
    
    9,604,462
    
    
    
    15.66
    %Total Revenues
    
    $
    9,314,400
    
    
    
    100.00
    %
    
    $
    61,342,651
    
    
    
    100.00
    %
  22




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##### Table of Contents



Cost of Goods Sold
   Nine Months Ended
June 30, 2009
    
    
    Nine Months Ended
June 30, 2008(Unaudited)
    
    
    (Unaudited)Component of Cost of Goods Sold
    
    Amount
    
    
    Percent
    
    
    Amount
    
    
    PercentFeedstock and Chemical Inputs
    
    $
    9,926,469
    
    
    
    77.52
    %
    
    $
    50,664,382
    
    
    
    86.22
    %Plant Wages and Salaries
    
    
    774,710
    
    
    
    6.05
    %
    
    
    920,022
    
    
    
    1.57
    %Utilities
    
    
    750,486
    
    
    
    5.86
    %
    
    
    1,355,245
    
    
    
    2.31
    %Fees-Procurement, Operation Management
    
    
    15,398
    
    
    
    0.12
    %
    
    
    176,337
    
    
    
    0.30
    %(Gain) Loss on Derivative Financial Instruments
    
    
    (1,171,039
    )
    
    
    (9.15
    %)
    
    
    2,226,604
    
    
    
    3.79
    %Depreciation
    
    
    1,919,511
    
    
    
    14.99
    %
    
    
    1,904,788
    
    
    
    3.24
    %Freight
    
    
    285,573
    
    
    
    2.23
    %
    
    
    1,063,720
    
    
    
    1.81
    %Maintenance, Supplies and Other Expenses
    
    
    304,028
    
    
    
    2.38
    %
    
    
    453,628
    
    
    
    0.76
    %Total
    
    $
    12,805,136
    
    
    
    100.00
    %
    
    $
    58,764,726
    
    
    
    100.00
    %
 Operating Expense
  Other Income (Expenses)
   23




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##### Table of Contents



Changes in Financial Condition for the Nine Months Ended June 30, 2009
  June 30,
2009
    
    
    September 30,
2008Current Assets
    
    $
    1,245,820
    
    
    $
    10,476,632Current Liabilities
    
    $
    25,409,537
    
    
    $
    29,787,038Members Equity
    
    $
    11,039,906
    
    
    $
    17,443,124
 Current Assets
 Current Liabilities
 Members Equity
 Cash Flows
 Cash Flow from Operating Activities .
 Cash Flow from Investing Activities .
 Cash Flow from Financing Activities .
 Liquidity and Capital Resources
 Short Term and Long-Term Debt Financing Sources
   24




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th Wall Street Journal
        25




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##### Table of Contents



Overview  Amended and Restated Asset Purchase
Agreement
 Government Programs and Grants
    26




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##### Table of Contents



Commodity Price Risk Protection
    Distribution to Unit Holders
  Critical Accounting Estimates
  Revenue Recognition
  Derivative Instruments and Hedging Activities
 Accounting for Derivative Instruments and
Hedging Activities
 Impairment of long-lived assets
   27




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##### Table of Contents



Recently Adopted Accounting Standards
 Interim
Disclosures about Fair Value of Financial Instruments
 Subsequent Events
 New Accounting Pronouncements
 The FASB Accounting Standards Codification and the
Hierarchy of Generally Accepted Accounting Principles  a replacement of SFAS No. 162
 Off-Balance Sheet Arrangements
  
 Item 3.
    
    Quantitative and Qualitative Disclosures About Market Risk
  
 Item 4T.
    
    Controls and Procedures
    28




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##### Table of Contents



PART II. OTHER INFORMATION
 
 Item 1.
    
    Legal Proceedings
  
 Item 1A.
    
    Risk Factors
 There are doubts about our ability to continue as a going concern and if we are unable to
continue our business, our units may have little or no value.
 Liquidity constraints could require us to cease operations
 The asset purchase agreement entered into by the Company, REG, and certain other REG
affiliates is subject to a variety of closing conditions and may not close.
 Unit holder approval of the Companys dissolution, liquidation and winding up is not a
condition to the closing of the Companys proposed consolidation with REG.
 Our reliance on REG could damage our profitability.
  29




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##### Table of Contents



The European Commission has imposed definitive anti-dumping and countervailing duties on
biodiesel imported into Europe, which may negatively impact biodiesel demand and our revenues.
 The EPAs recent findings that soy-based biodiesel does not meet the requirements under the
RFS to reduce greenhouse emissions could reduce demand for soy-based biodiesel and reduce our
profitability.
 
 Item 2.
    
    Unregistered Sales of Equity Securities and Use of Proceeds
  
 Item 3.
    
    Defaults Upon Senior Securities
  
 Item 4.
    
    Submission of Matters to a Vote of Security Holders
  
 Item 5.
    
    Other Information
   30




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##### Table of Contents



Item 6.
    
    Exhibits
  ExhibitNo.
    
    Description10.9
    
    
    Amended and Restated Asset Purchase Agreement by and among REG Newco, Inc., REG
Newton, LLC, Central Iowa Energy, LLC and Renewable Energy Group, Inc. dated
August 7, 2009.31.1
    
    
    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 135032.2
    
    
    Certificate pursuant to 18 U.S.C. Section 1350
 
 SIGNATURES
  CENTRAL IOWA ENERGY, LLCDate: August 19, 2009
    /s/ John E. Van ZeeJohn E. Van ZeePresident and Chief Executive Officer
(Principal Executive Officer)Date: August 19, 2009
    /s/ Kimberly SmithKimberly SmithChief Financial Officer
(Principal Financial and Accounting Officer)  31