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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 December 31, 2006
 o
    
    Transition report under Section 13 or 15(d) of the Exchange Act.
 For the transition period from 
to
 Commission file number 000-51965
 WESTERN IOWA ENERGY, LLC
  Iowa
    
    41-2143913(State or other jurisdiction of
    
    (I.R.S. Employer Identification No.)incorporation or organization)1220 S. Center Street, P.O. Box 399, Wall Lake, Iowa
    
    51466(Address of principal executive offices)
    
    (Zip Code)
 (712) 664-2173
  None
  26,447
 o
 þ o
 þ
  o þ
 $31,991,876
 
     o þ




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Table of Contents
 PART II
    
    
    4ITEM 7. FINANCIAL STATEMENTS
    
    
    4PART III
    
    
    19ITEM 13. EXHIBITS
    
    
    19SIGNATURES
    
    
    20CertificationCertificationCertificationCertification
  2




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EXPLANATORY NOTE




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ITEM 7. FINANCIAL STATEMENTS.
 WESTERN IOWA ENERGY, LLC
Wall Lake, Iowa
 FINANCIAL STATEMENTS
December 31, 2006 and 2005
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
 
     
 
 
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WESTERN
IOWA ENERGY, LLCBALANCE SHEETSDecember 31, 2006 and 2005
 2006
    
    
    2005ASSETSCURRENT ASSETSCash and cash equivalents
    
    $
    28,322
    
    
    $
    4,935,695Margin deposits
    
    
    267,260
    
    
    
    Trade accounts receivable  related party
    
    
    4,331,349
    
    
    
    Incentive receivable
    
    
    597,878
    
    
    
    Inventory
    
    
    7,796,183
    
    
    
    Derivative instruments
    
    
    1,267,749
    
    
    
    Prepaid expenses and other assets
    
    
    33,207
    
    
    
    Total current assets
    
    
    14,321,948
    
    
    
    4,935,695PROPERTY, PLANT AND EQUIPMENTLand and land improvements
    
    
    1,299,384
    
    
    
    78,354Office building and equipment
    
    
    641,799
    
    
    
    17,486Plant and process equipment
    
    
    33,537,541
    
    
    
    Vehicle
    
    
    
    
    
    
    42,000Construction in progress
    
    
    
    
    
    
    21,329,249Total, at cost
    
    
    35,478,724
    
    
    
    21,467,089Less accumulated depreciation
    
    
    1,095,538
    
    
    
    10,334Total property, plant and equipment
    
    
    34,383,186
    
    
    
    21,456,755OTHER ASSETSLand options
    
    
    596
    
    
    
    596Other investments
    
    
    2,000
    
    
    
    2,000Loan origination fees, net of accumulated amortization of $14,253 and $-0-
at December 31, 2006 and 2005
    
    
    123,643
    
    
    
    135,589Total other assets
    
    
    126,239
    
    
    
    138,185TOTAL ASSETS
    
    $
    48,831,373
    
    
    $
    26,530,635LIABILITIES AND MEMBERS EQUITYCURRENT LIABILITIESAccounts payable:Trade
    
    $
    1,237,721
    
    
    $
    262Related Party
    
    
    104,935
    
    
    
    Construction
    
    
    
    
    
    
    68,431Construction  related party
    
    
    848,426
    
    
    
    3,960,085Current portion of long-term debt
    
    
    3,386,789
    
    
    
    9,343Accrued interest
    
    
    115,964
    
    
    
    Accrued wages and benefits
    
    
    46,561
    
    
    
    Accrued payroll taxes
    
    
    33,519
    
    
    
    1,039Accrued expenses  related party
    
    
    392,651
    
    
    
    Total current liabilities
    
    
    6,166,566
    
    
    
    4,039,160LONG-TERM LIABILITIESLong-term debt, less current portion above
    
    
    12,851,239
    
    
    
    10,432Total liabilities
    
    
    19,017,805
    
    
    
    4,049,592MEMBERS EQUITYContributed capital
    
    
    23,516,376
    
    
    
    22,516,376Retained earnings (accumulated deficit)
    
    
    6,297,192
    
    
    
    (35,333
    )Total members equity
    
    
    29,813,568
    
    
    
    22,481,043TOTAL LIABILITIES AND MEMBERS EQUITY
    
    $
    48,831,373
    
    
    $
    26,530,635
 
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WESTERN IOWA ENERGY, LLC
STATEMENTS OF OPERATIONS
Years Ended December 31, 2006 and 2005
 2006
    
    
    2005REVENUESRelated parties
    
    $
    26,178,438
    
    
    $
    Incentive funds
    
    
    5,813,438
    
    
    
    31,991,876
    
    
    
    COST OF SALES
    
    
    23,715,252
    
    
    
    Gross profit
    
    
    8,276,624
    
    
    
    OPERATING EXPENSESOrganization costs
    
    
    
    
    
    
    44,267Consulting and professional fees
    
    
    252,929
    
    
    
    139,124Office and administrative expenses
    
    
    1,353,587
    
    
    
    98,858Total operating expenses
    
    
    1,606,516
    
    
    
    282,249OTHER INCOME (EXPENSE)Interest and dividend income
    
    
    50,379
    
    
    
    320,074Interest expense
    
    
    (406,062
    )
    
    
    (647
    )Gain on sale of asset
    
    
    2,800
    
    
    
    Other income
    
    
    15,300
    
    
    
    5,000Total other income (expense)
    
    
    (337,583
    )
    
    
    324,427NET INCOME
    
    $
    6,332,525
    
    
    $
    42,178BASIC AND DILUTED EARNINGS
PER UNIT
    
    $
    246.65
    
    
    $
    2.74WEIGHTED AVERAGE UNITS
OUTSTANDING, BASIC
AND DILUTED
    
    
    25,674
    
    
    
    15,405
 
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WESTERN IOWA ENERGY, LLC
STATEMENTS OF CHANGES IN MEMBERS EQUITY
Years Ended December 31, 2006 and 2005
 Retained EarningsContributed
    
    
    (AccumulatedUnits
    
    
    Capital
    
    
    Deficit)
    
    
    TotalBALANCE, DECEMBER 31, 2004
    
    
    1,690
    
    
    $
    840,638
    
    
    $
    (77,511
    )
    
    $
    763,127Additional units issued (seed capital), 1,546 units at
$500 per unit
    
    
    1,546
    
    
    
    773,000
    
    
    
    
    
    
    
    773,000Capital contributions from public offering, 22,081
units at $950 per unit
    
    
    22,081
    
    
    
    20,976,950
    
    
    
    
    
    
    
    20,976,950Units issued in exchange for land, 81 units at $950
per unit
    
    
    81
    
    
    
    76,950
    
    
    
    
    
    
    
    76,950Units issued in exchange for services, 49 units at
$950 per unit
    
    
    49
    
    
    
    46,550
    
    
    
    
    
    
    
    46,550Cost of raising capital
    
    
    
    
    
    
    (197,712
    )
    
    
    
    
    
    
    (197,712
    )Net income for the year ended December 31, 2005
    
    
    
    
    
    
    
    
    
    
    42,178
    
    
    
    42,178BALANCE, DECEMBER 31, 2005
    
    
    25,447
    
    
    
    22,516,376
    
    
    
    (35,333
    )
    
    
    22,481,043Units issued in exchange for reduction in construction payable,
1,000 units at $1,000 per unit (See Note 5)
    
    
    1,000
    
    
    
    1,000,000
    
    
    
    
    
    
    
    1,000,000Net income for the year ended December 31, 2006
    
    
    
    
    
    
    
    
    
    
    6,332,525
    
    
    
    6,332,525BALANCE, DECEMBER 31, 2006
    
    
    26,447
    
    
    $
    23,516,376
    
    
    $
    6,297,192
    
    
    $
    29,813,568
 
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WESTERN IOWA ENERGY, LLC
STATEMENTS OF CASH FLOWS
Years Ended December 31, 2006 and 2005
 2006
    
    
    2005CASH FLOWS FROM OPERATING ACTIVITIESNet income
    
    $
    6,332,525
    
    
    $
    42,178Adjustments to reconcile net income to net cash
provided by (used in) operating activitiesDepreciation
    
    
    1,105,452
    
    
    
    10,334Gain on sale of asset
    
    
    (2,800
    )
    
    
    Member units issued for services included in startup expenses
    
    
    
    
    
    
    38,000Effects of changes in operating assets and liabilitiesMargin deposits
    
    
    (267,260
    )
    
    
    Trade accounts receivable  related party
    
    
    (4,331,349
    )
    
    
    Incentive receivable
    
    
    (597,878
    )
    
    
    Inventory
    
    
    (7,796,183
    )
    
    
    Derivative instruments
    
    
    (1,267,749
    )
    
    
    Prepaid expenses and other assets
    
    
    (33,207
    )
    
    
    25,235Accounts payable
    
    
    1,342,394
    
    
    
    (23,236
    )Accrued interest
    
    
    115,964
    
    
    
    Accrued wages
    
    
    46,561
    
    
    
    Accrued payroll taxes
    
    
    32,480
    
    
    
    1,039Accrued expenses  related party
    
    
    392,651
    
    
    
    Net cash provided by (used in) operating
activities
    
    
    (4,928,399
    )
    
    
    93,550CASH FLOWS FROM INVESTING ACTIVITIESPurchase of property, plant and equipment,
including construction in progress
    
    
    (16,228,520
    )
    
    
    (17,260,219
    )Proceeds from sale of asset
    
    
    33,600
    
    
    
    Purchase of land options
    
    
    
    
    
    
    (1,000
    )Purchase of capital stock of lenders
    
    
    
    
    
    
    (2,000
    )Net cash used in investing activities
    
    
    (16,194,920
    )
    
    
    (17,263,219
    )CASH FLOWS FROM FINANCING ACTIVITIESLoan origination fees
    
    
    (2,307
    )
    
    
    (135,589
    )Cost of raising capital
    
    
    
    
    
    
    (189,162
    )Proceeds from long-term debt
    
    
    18,640,528
    
    
    
    28,105Payments on long-term debt
    
    
    (2,422,275
    )
    
    
    (8,330
    )Capital contributions
    
    
    
    
    
    
    21,749,950Net cash provided by financing activities
    
    
    16,215,946
    
    
    
    21,444,974NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
    
    
    (4,907,373
    )
    
    
    4,275,305CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
    
    
    4,935,695
    
    
    
    660,390CASH AND CASH EQUIVALENTS, END OF YEAR
    
    $
    28,322
    
    
    $
    4,935,695
 
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WESTERN IOWA ENERGY, LLC
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
December 31, 2006 and 2005
  USE OF ESTIMATES IN PREPARING FINANCIAL STATEMENTS
  BASIS OF ACCOUNTING
  REVENUE RECOGNITION
  CASH AND CASH EQUIVALENTS
  ACCOUNTS RECEIVABLE
   DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
  8




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WESTERN IOWA ENERGY, LLC
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
December 31, 2006 and 2005
 DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
    INVENTORIES
  PROPERTY, PLANT, AND EQUIPMENT
   YearsLand improvements
    
    2040Office building
    
    540Office equipment
    
    520Plant and process equipment
    
    1040
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WESTERN IOWA ENERGY, LLC
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
December 31, 2006 and 2005
 PROPERTY, PLANT, AND EQUIPMENT
   LOAN ORIGINATION FEES
  OTHER INVESTMENTS
  OTHER INCOME
  INCOME TAXES
  EARNINGS PER UNIT
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WESTERN IOWA ENERGY, LLC
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
December 31, 2006 and 2005
 COST OF SALES
  SHIPPING AND HANDLING COSTS
  ENVIRONMENTAL LIABILITIES
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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
December 31, 2006 and 2005
 NOTE 1  INCENTIVE PAYMENTS AND RECEIVABLE
   NOTE 2  INVENTORY
  2006
    
    
    2005Raw material
    
    $
    1,284,002
    
    
    $
    Work in progress
    
    
    2,752,701
    
    
    
    Finished goods
    
    
    3,759,480
    
    
    
    Total
    
    $
    7,796,183
    
    
    $
    
 NOTE 3  LAND OPTION
  NOTE 4  LONG-TERM DEBT AND FINANCING
  2006
    
    
    2005Note payable to Farm Credit Services of America
and CoBank under term note agreement  see
details below.
    
    $
    9,550,000
    
    
    $
    Note payable to Farm Credit Services of America
and CoBank under reducing revolving credit note 
see details below.
    
    
    5,550,528
    
    
    
    Note payable to the Iowa Department of Economic
Development  see details below.
    
    
    397,500
    
    
    
    Note payable to Glidden Rural Electric Cooperative
 see details below.
    
    
    740,000
    
    
    
    
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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
December 31, 2006 and 2005
 NOTE 4  LONG-TERM DEBT AND FINANCING
 2006
    
    
    2005Note payable to Ford Credit  see details below.
    
    
    
    
    
    
    19,775Total
    
    
    16,238,028
    
    
    
    19,775Less current portion
    
    
    3,386,789
    
    
    
    9,343Long-term portion
    
    $
    12,851,239
    
    
    $
    10,432
  2007
    
    $
    3,386,7892008
    
    
    1,914,2372009
    
    
    1,928,9892010
    
    
    1,930,4712011
    
    
    963,906Thereafter
    
    
    6,113,636Total
    
    $
    16,238,028
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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
December 31, 2006 and 2005
 NOTE 4  LONG-TERM DEBT AND FINANCING
    NOTE 5  MEMBERS EQUITY
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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
December 31, 2006 and 2005
 NOTE 5  MEMBERS EQUITY
  NOTE 6
 INCOME TAXES
  NOTE 7  CONCENTRATION OF CREDIT RISK
  NOTE 8  CASH FLOW DISCLOSURES
  2006
    
    
    2005Cash paid for interest, net of capitalized interest of
$552,233 and $-0- for the years ended December 31,
2006 and 2005, respectively
    
    $
    289,534
    
    
    $
    647
  2006
    
    
    2005Units issued for land purchase
    
    $
    
    
    
    $
    76,950Units issued for services included in costs of capital
    
    $
    
    
    
    $
    8,550Units issued in exchange for reduction in construction payable
    
    $
    1,000,000
    
    
    $
    Construction in progress in accounts payable
    
    $
    848,426
    
    
    $
    4,028,516
 NOTE 9  RELATED PARTY TRANSACTIONS
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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
December 31, 2006 and 2005
 NOTE 9  RELATED PARTY TRANSACTIONS
    NOTE 10  COMMITMENTS AND CONTINGENCIES
    
    
    $14,000 per month in pre-production fees for the General Manager and $11,000
for the Operations Manager beginning three months prior to the estimated start up date for
production and ceasing after payment of the fees for the month in which product is produced
for sale.
    
    Management fees equal to one and one-third cents per gallon of biodiesel
produced.
    
    Feed stock procurement fees equal to one-tenth of a cent per pound of feed
stock procured for production.
    
    Chemical input procurement fee equal to one-fifth of a cent per gallon of biodiesel produced.
    
    Biodiesel marketing fees equal to one cent per each gallon of biodiesel sold.
    
    Glycerin and fatty acids fee equal to one-fifth cent per gallon of biodiesel sold.
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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
December 31, 2006 and 2005
 NOTE 10  COMMITMENTS AND CONTINGENCIES
 
    
    A yearly net income bonus equal to six percent of the Companys adjusted net income.
Adjusted net income is defined as the Companys net income for the fiscal year before any
deduction or allowance for income taxes, determined in accordance with generally accepted
accounting principles. Net income is also adjusted to exclude the following: the receipt
of government payments under bioenergy and related programs, gains or losses realized on
the sale or disposition of capital assets and any reduction for the income bonus paid or
accrued to REG, Inc. as part of the agreement. The cost of soybean oil purchased during
the year and used in the production of bio-diesel is a component in calculating net income.
The fluctuation between the market price and the contract price prior to delivery of
soybean oil on a contract does not affect the calculation of the income bonus to REG, Inc.
  NOTE 11  LEASE COMMITMENTS
  2007
    
    $
    35,6272008
    
    
    35,6272009
    
    
    35,6272010
    
    
    35,6272011
    
    
    17,813Total
    
    $
    160,321
  NOTE 12  RETIREMENT AND SAVINGS PLAN
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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
December 31, 2006 and 2005
 NOTE 13  FAIR VALUE OF FINANCIAL INSTRUMENTS
  NOTE 14  SUBSEQUENT EVENT
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ITEM 13. EXHIBITS.




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Exhibit No.
    
    Description
    
    Method of Filing31.1
    
    Certificate Pursuant to 17 CFR 240 15d-14(a)
    
    
    *31.2
    
    Certificate Pursuant to 17 CFR 240 15d-14(a)
    
    
    *
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Exhibit No.
    
    Description
    
    Method of Filing32.1
    
    Certificate Pursuant to 18 U.S.C. Section 1350
    
    
    *32.2
    
    Certificate Pursuant to 18 U.S.C. Section 1350
    
    
    *
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SIGNATURES
  WESTERN IOWA ENERGY, LLCDate: 3/15/07
    /s/ William J. HoranWilliam J. HoranChairman, President and Director
(Principal Executive Officer) Date: 3/14/07
    /s/ Denny MauserDenny MauserTreasurer and Director
(Principal Financial and Accounting Officer)  Date: 3/15/07
    /s/ William J. HoranWilliam J. Horan, Chairman, President,Director (Principal Executive Officer)Date: 3/14/07
    /s/ Denny MauserDenny Mauser, Treasurer, Director(Principal Financial and Accounting Officer)Date: 3/14/07
    /s/ John GeakeJohn Geake, Vice-Chairman and DirectorDate: 3/15/07
    /s Warren L. BushWarren L. Bush, DirectorDate: 3/15/07
    /s/ Nile RamsbottomNile Ramsbottom, Director 22