##### Table of Contents

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FORM 10-Q



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SECURITIES AND EXCHANGE
COMMISSION

WASHINGTON, D.C. 20549



|x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------

For the quarterly period ended June 30, 2006

OR



| ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | -----------------------------------------------------------------------------------------

Commission file number 814-00131



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WESTERN PENNSYLVANIA ADVENTURE CAPITAL FUND, LLC

(Exact Name of Registrant as Specified in its Charter)



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|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|Pennsylvania                                                   |  | 30-0046038                          
|(State of Other Jurisdiction of Incorporation or Organization) |  | (I.R.S. Employer Identification No.)

Scott Towne Center, Suite A-113

2101 Greentree Road

Pittsburgh, PA 15220-1400

(Address of Principal Executive Offices and Zip Code)

(412) 279-1760

(Registrants Telephone Number, Including Area Code)



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Indicate by check mark whether the registrant
(1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.    Yes  x    No ̈

Number of members units as of August 7, 2006:
4,222,870 Units.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange
Act.):    Yes ̈No  x



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##### Table of Contents

Part 1  Financial Information



|                            |  |                                                                                                                                                            |  |         
|--------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------
|                            |  |                                                                                                                                                            |  | Page No.
|Item 1                      |  | Financial Statements                                                                                                                                       |  |         
|                            |  |                                                                                                                                                           
|                            |  | Report of Independent Registered Public Accounting Firm                                                                                                    |  | 3       
|                            |  |                                                                                                                                                           
|                            |  | Statements of Assets and Liabilities as of June 30, 2006 (unaudited) and December 31, 2005                                                                 |  | 4       
|                            |  |                                                                                                                                                           
|                            |  | Statements of Operations, for the Periods April 1, 2006 through June 30, 2006 (unaudited) and January 1, 2006 through June 30, 2006 (unaudited)            |  | 5       
|                            |  |                                                                                                                                                           
|                            |  | Statements of Operations, for the Periods April 1, 2005 through June 30, 2005 (unaudited) and January 1, 2005 through June 30, 2005 (unaudited)            |  | 6       
|                            |  |                                                                                                                                                           
|                            |  | Statements of Changes in Net Assets for the Periods April 1, 2006 through June 30, 2006 (unaudited) and January 1, 2006 through June 30, 2006 (unaudited)  |  | 7       
|                            |  |                                                                                                                                                           
|                            |  | Statements of Changes in Net Assets, for the Periods April 1, 2005 through June 30, 2005 (unaudited) and January 1, 2005 through June 30, 2005 (unaudited) |  | 8       
|                            |  |                                                                                                                                                           
|                            |  | Statements of Cash Flows, for the Periods April 1, 2006 through June 30, 2006 (unaudited) and January 1, 2006 through June 30, 2006 (unaudited)            |  | 9       
|                            |  |                                                                                                                                                           
|                            |  | Statements of Cash Flows, for the Periods April 1, 2005 through June 30, 2005 (unaudited) and January 1, 2005 through June 30, 2005 (unaudited)            |  | 10      
|                            |  |                                                                                                                                                           
|                            |  | Notes to Financial Statements                                                                                                                              |  | 11      
|                            |  |                                                                                                                                                           
|Item 2                      |  | Managements Discussion and Analysis of Financial Condition and Results Of Operations                                                                      |  | 18      
|                            |  |                                                                                                                                                           
|Item 3                      |  | Quantitative and Qualitative Disclosures About Market Risk                                                                                                 |  | 19      
|                            |  |                                                                                                                                                           
|Item 4                      |  | Controls and Procedures                                                                                                                                    |  | 19      
|                           
|PART II  Other Information
|                            |  |                                                                                                                                                           
|Item 1.                     |  | Legal Proceedings  None                                                                                                                                   |  |         
|                            |  |                                                                                                                                                           
|Item 2.                     |  | Unregistered Sales of Equity Securities, Use or Proceeds and Issuer Purchases Of Equity Securities  Not Applicable                                        |  |         
|                            |  |                                                                                                                                                           
|Item 3.                     |  | Defaults Upon Senior Securities  Not Applicable                                                                                                           |  |         
|                            |  |                                                                                                                                                           
|Item 4.                     |  | Submission of Matters to a Vote of Security Holders  Not Applicable                                                                                       |  |         
|                            |  |                                                                                                                                                           
|Item 5.                     |  | Other Information  Not Applicable                                                                                                                         |  |         
|                            |  |                                                                                                                                                           
|Item 6.                     |  | Exhibits                                                                                                                                                   |  | 20      



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##### Table of Contents

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors

Western Pennsylvania Adventure Capital Fund, LLC

We have reviewed the
statement of assets and liabilities of Western Pennsylvania Adventure Capital Fund, LLC as of June 30, 2006, and the related statements of operations, changes in net assets, and cash flows for the three-month and six-month periods ended
June 30, 2006 and 2005. These financial statements are the responsibility of the companys management.

We conducted our reviews in accordance
with the standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit conducted in accordance with standards of the Public Company Accounting Oversight Board (United States), the objective of which is the expression of an opinion regarding the
financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our reviews, we are not aware of any material
modifications that should be made to the accompanying interim financial statements referred to above for them to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with auditing standards of the Public Company Accounting Oversight Board (United States), the statement of assets and
liabilities of Western Pennsylvania Adventure Capital Fund, LLC as of December 31, 2005, and the related statements of operations, changes in net assets, and cash flows for the year then ended (not presented herein); and in our report dated
February 15, 2006, we expressed an unqualified opinion on those financial statements.

Goff Backa Alfera &
Company, LLC

Pittsburgh, Pennsylvania

August 7, 2006



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##### Table of Contents

Western Pennsylvania Adventure Capital Fund, LLC

Statements of Assets and Liabilities

As of



|                                            |  |               |           |                  |   |          
|------------------------------------------- |  | ------------- | --------- | ---------------- | - | ---------
|                                            |  | June 30, 2006 |           | December 31,2005
|                                            |  | (unaudited)   |           |                 
|Assets                                      |  |               |           |                  |   |          
|Cash and Cash Equivalents                   |  | $             | 11,013    |                  | $ | 11,910   
|Short Term Investments, Net                 |  |               | 450,000   |                  |   | 375,000  
|Receivables                                 |  |               | 25,359    |                  |   | 25,558   
|Investment in Portfolio Companies           |  |               | 1,897,591 |                  |   | 1,890,842
|                                            |  |               |           |                  |   |          
|Total Assets                                |  | $             | 2,383,963 |                  | $ | 2,303,310
|                                            |  |               |           |                  |   |          
|Liabilities                                 |  |               |           |                  |   |          
|Liabilities Accounts Payable                |  | $             | 0         |                  | $ | 0        
|Accrued Liabilities                         |  |               | 12,800    |                  |   | 17,300   
|                                            |  |               |           |                  |   |          
|Total Liabilities                           |  | $             | 12,800    |                  | $ | 17,300   
|                                            |  |               |           |                  |   |          
|Net Assets                                  |  |               |           |                  |   |          
|Members Equity Outstanding 4,222,870 Units |  | $             | 2,371,163 |                  | $ | 2,286,010
|                                            |  |               |           |                  |   |          
|Net Assets Applicable to Units Outstanding  |  | $             | 2,371,163 |                  | $ | 2,286,010
|                                            |  |               |           |                  |   |          
|Net Assets Value Per Unit                   |  | $             | 0.56      |                  | $ | 0.54     
|                                            |  |               |           |                  |   |          

See Accountants Report and accompanying notes to financial statements.



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##### Table of Contents

Western Pennsylvania Adventure Capital Fund, LLC

Statements of Operations

For the Periods



|                                                             |  |                                     |         |                                       |   |        
|------------------------------------------------------------ |  | ----------------------------------- | ------- | ------------------------------------- | - | -------
|                                                             |  | April 1, 2006 through June 30, 2006 |         | January 1, 2006 Through June 30,
2006
|                                                             |  | (unaudited)                         |         | (unaudited)                          
|Revenues:                                                    |  |                                     |         |                                       |   |        
|Interest                                                     |  | $                                   | 3,492   |                                       | $ | 6,431  
|Realized Gains (Losses), net                                 |  |                                     | 126,585 |                                       |   | 126,585
|                                                             |  |                                     |         |                                       |   |        
|Total Revenues                                               |  |                                     | 130,077 |                                       |   | 133,016
|                                                             |  |                                     |         |                                       |   |        
|Expenses:                                                    |  |                                     |         |                                       |   |        
|General and Administration                                   |  |                                     | 3,000   |                                       |   | 6,000  
|Other Operating Expenses                                     |  |                                     | 13,443  |                                       |   | 41,863 
|                                                             |  |                                     |         |                                       |   |        
|Total Expenses                                               |  |                                     | 16,443  |                                       |   | 47,863 
|                                                             |  |                                     |         |                                       |   |        
|Unrealized Appreciation (Depreciation)  Portfolio companies |  |                                     | 0       |                                       |   | 0      
|                                                             |  |                                     |         |                                       |   |        
|Profit Before Income Tax                                     |  |                                     | 113,634 |                                       |   | 85,153 
|Income Tax Expense                                           |  |                                     | 0       |                                       |   | 0      
|                                                             |  |                                     |         |                                       |   |        
|Net Profit                                                   |  | $                                   | 113,634 |                                       | $ | 85,153 
|                                                             |  |                                     |         |                                       |   |        
|Earnings Per Unit                                            |  | $                                   | 0.03    |                                       | $ | 0.02   
|                                                             |  |                                     |         |                                       |   |        

See Accountants Report and accompanying notes to financial statements.



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##### Table of Contents

Western Pennsylvania Adventure Capital Fund, LLC

Statements of Operations

For the Periods



|                                                             |  |                                     |          |   |                                       |   |          |  
|------------------------------------------------------------ |  | ----------------------------------- | -------- | - | ------------------------------------- | - | -------- | -
|                                                             |  | April 1, 2005 through June 30, 2005 |          |   | January 1, 2005 Through June 30,
2005 |  
|                                                             |  | (unaudited)                         |          |   | (unaudited)                           |  
|Revenues:                                                    |  |                                     |          |   |                                       |   |          |  
|Interest                                                     |  | $                                   | 3,393    |   |                                       | $ | 6,294    |  
|Realized (Losses)                                            |  |                                     | (227,204 | ) |                                       |   | (332,204 | )
|                                                             |  |                                     |          |   |                                       |   |          |  
|Total Revenues                                               |  |                                     | (223,811 | ) |                                       |   | (325,910 | )
|                                                             |  |                                     |          |   |                                       |   |          |  
|Expenses:                                                    |  |                                     |          |   |                                       |   |          |  
|General and Administration                                   |  |                                     | 3,000    |   |                                       |   | 6,000    |  
|Other Operating Expenses                                     |  |                                     | 16,302   |   |                                       |   | 43,179   |  
|                                                             |  |                                     |          |   |                                       |   |          |  
|Total Expenses                                               |  |                                     | 19,302   |   |                                       |   | 49,179   |  
|                                                             |  |                                     |          |   |                                       |   |          |  
|Unrealized appreciation/(depreciation)  Portfolio companies |  |                                     | (63,731  | ) |                                       |   | 41,269   |  
|                                                             |  |                                     |          |   |                                       |   |          |  
|(Loss) Before Income Tax                                     |  |                                     | (306,844 | ) |                                       |   | (333,820 | )
|Income Tax Expense (Benefit)                                 |  |                                     | 0        |   |                                       |   | 0        |  
|                                                             |  |                                     |          |   |                                       |   |          |  
|Net (Loss)                                                   |  | $                                   | (306,844 | ) |                                       | $ | (333,820 | )
|                                                             |  |                                     |          |   |                                       |   |          |  
|(Loss) Per Unit                                              |  | $                                   | (0.07    | ) |                                       | $ | (0.08    | )
|                                                             |  |                                     |          |   |                                       |   |          |  

See Accountants Report and accompanying notes to financial statements.



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Western Pennsylvania Adventure Capital Fund, LLC

Statements of Changes in Net Assets

For the Periods



|                           |  |                                     |           |                                       |   |          
|-------------------------- |  | ----------------------------------- | --------- | ------------------------------------- | - | ---------
|                           |  | April 1, 2006 through June 30, 2006 |           | January 1, 2006 through June 30,
2006
|                           |  | (unaudited)                         |           | (unaudited)                          
|From Operations            |  |                                     |           |                                       |   |          
|Net Income                 |  | $                                   | 113,634   |                                       | $ | 85,153   
|                           |  |                                     |           |                                       |   |          
|Net Increase in Net Assets |  |                                     | 113,634   |                                       |   | 85,153   
|                           |  |                                    
|Net Assets:                |  |                                     |           |                                       |   |          
|Beginning of Period        |  |                                     | 2,257,529 |                                       |   | 2,286,010
|                           |  |                                     |           |                                       |   |          
|End of Period              |  | $                                   | 2,371,163 |                                       | $ | 2,371,163
|                           |  |                                     |           |                                       |   |          

See Accountants Report and accompanying notes to financial statements.



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Western Pennsylvania Adventure Capital Fund, LLC

Statements of Changes in Net Assets

For the Periods



|                                      |  |                                     |           |   |                                       |   |           |  
|------------------------------------- |  | ----------------------------------- | --------- | - | ------------------------------------- | - | --------- | -
|                                      |  | April 1, 2005 through June 30, 2005 |           |   | January 1, 2005 through June 30,
2005 |  
|                                      |  | (unaudited)                         |           |   | (unaudited)                           |  
|From Operations                       |  |                                     |           |   |                                       |   |           |  
|Net (Loss)                            |  | $                                   | (306,844  | ) |                                       | $ | (333,820  | )
|                                      |  |                                     |           |   |                                       |   |           |  
|Net Increase (Decrease) in Net Assets |  |                                     | (306,844  | ) |                                       |   | (333,820  | )
|                                      |  |                                    
|Net Assets:                           |  |                                     |           |   |                                       |   |           |  
|Beginning of Period                   |  |                                     | 3,002,034 |   |                                       |   | 3,029,010 |  
|                                      |  |                                     |           |   |                                       |   |           |  
|End of Period                         |  | $                                   | 2,695,190 |   |                                       | $ | 2,695,190 |  
|                                      |  |                                     |           |   |                                       |   |           |  

See Accountants Report and accompanying notes to financial statements.



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Western Pennsylvania Adventure Capital Fund, LLC

Statements of Cash Flows

For the Periods



|                                                     |  |                                     |          |   |                                       |   |         |  
|---------------------------------------------------- |  | ----------------------------------- | -------- | - | ------------------------------------- | - | ------- | -
|                                                     |  | April 1, 2006 through June 30, 2006 |          |   | January 1, 2006 through June 30,
2006 |  
|                                                     |  | (unaudited)                         |          |   | (unaudited)                           |  
|Cash Flow from Operating Activities:                 |  |                                     |          |   |                                       |   |         |  
|Income                                               |  | $                                   | 113,634  |   |                                       | $ | 85,153  |  
|Change in Assets and Liabilities:                    |  |                                     |          |   |                                       |   |         |  
|Receivables  (Increase) Decrease                    |  |                                     | 141      |   |                                       |   | 199     |  
|Accounts Payable  Increase (Decrease)               |  |                                     | 0        |   |                                       |   | 0       |  
|Accrued Liabilities  Increase (Decrease)            |  |                                     | 0        |   |                                       |   | (4,500  | )
|                                                     |  |                                     |          |   |                                       |   |         |  
|Net Cash Provided By (Used in) Operating Activities  |  |                                     | 113,775  |   |                                       |   | 80,852  |  
|                                                     |  |                                     |          |   |                                       |   |         |  
|Cash Flow from Investing Activities:                 |  |                                     |          |   |                                       |   |         |  
|Short Term Investments, Net of Redemptions           |  |                                     | (100,000 | ) |                                       |   | (75,000 | )
|Investment in Portfolio Companies, net               |  |                                     | (7,999   | ) |                                       |   | (6,749  | )
|                                                     |  |                                     |          |   |                                       |   |         |  
|Net Cash Provided by (Used in) Investing Activities  |  |                                     | (107,999 | ) |                                       |   | (81,749 | )
|                                                     |  |                                     |          |   |                                       |   |         |  
|Net Increase (Decrease) in Cash and Cash Equivalents |  |                                     | 5,776    |   |                                       |   | (897    | )
|                                                     |  |                                    
|Cash and Cash Equivalents at Beginning of Period     |  |                                     | 5,237    |   |                                       |   | 11,910  |  
|                                                     |  |                                     |          |   |                                       |   |         |  
|Cash and Cash Equivalents at End of Period           |  | $                                   | 11,013   |   |                                       | $ | 11,013  |  
|                                                     |  |                                     |          |   |                                       |   |         |  

See Accountants Report and accompanying notes to financial statements.



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Western Pennsylvania Adventure Capital Fund, LLC

Statements of Cash Flows

For the Periods



|                                                    |  |                                     |          |   |                                       |   |          |  
|--------------------------------------------------- |  | ----------------------------------- | -------- | - | ------------------------------------- | - | -------- | -
|                                                    |  | April 1, 2005 through June 30, 2005 |          |   | January 1, 2005 through June 30,
2005 |  
|                                                    |  | (unaudited)                         |          |   | (unaudited)                           |  
|Cash Flow from Operating Activities:                |  |                                     |          |   |                                       |   |          |  
|(Loss)                                              |  | $                                   | (306,844 | ) |                                       | $ | (333,820 | )
|Change in Assets and Liabilities:                   |  |                                     |          |   |                                       |   |          |  
|Receivables  (Increase) Decrease                   |  |                                     | (104     | ) |                                       |   | (142     | )
|Accounts Payable  Increase (Decrease)              |  |                                     | 0        |   |                                       |   | 0        |  
|Accrued Liabilities  Increase (Decrease)           |  |                                     | (1,000   | ) |                                       |   | (1,000   | )
|                                                    |  |                                     |          |   |                                       |   |          |  
|Net Cash Provided By (Used in) Operating Activities |  |                                     | (307,948 | ) |                                       |   | (334,962 | )
|Cash Flow from Investing Activities:                |  |                                     |          |   |                                       |   |          |  
|Investment in Portfolio Companies, net              |  |                                     | 202,722  |   |                                       |   | 188,120  |  
|Short Term Investments                              |  |                                     | 100,000  |   |                                       |   | 125,000  |  
|                                                    |  |                                     |          |   |                                       |   |          |  
|Net Cash Provided by (Used in) Investing Activities |  |                                     | 302,722  |   |                                       |   | 313,120  |  
|                                                    |  |                                     |          |   |                                       |   |          |  
|Net (Decrease) in Cash and Cash Equivalents         |  |                                     | (5,226   | ) |                                       |   | (21,842  | )
|                                                    |  |                                    
|Cash and Cash Equivalents at Beginning of Period    |  |                                     | 16,769   |   |                                       |   | 33,385   |  
|                                                    |  |                                     |          |   |                                       |   |          |  
|Cash and Cash Equivalents at End of Period          |  | $                                   | 11,543   |   |                                       | $ | 11,543   |  
|                                                    |  |                                     |          |   |                                       |   |          |  

See Accountants Report and accompanying notes to financial statements.



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Western Pennsylvania Adventure Capital Fund, LLC

Notes to Financial Statements

June 30, 2006

Note 1  Summary of Significant Accounting Policies:

This summary of significant accounting policies of Western Pennsylvania
Adventure Capital Fund, LLC and its predecessor organization, the Western Pennsylvania Adventure Capital Fund, a C Corporation (collectively and/or individually the Fund) is presented to assist in understanding the Funds financial
statements. These accounting policies conform with generally accepted accounting principles and have been consistently applied in the preparation of the financial statements.

Nature of Operations

The Fund was incorporated on May 23, 1996, as Western Pennsylvania Adventure Capital Fund
(a C Corporation) and began its primary business activities in November, 1997. The Fund has been formed to become a Business Development Company (BDC) and to be subject to the applicable provisions of the Investment Company Act of 1940,
as amended (the 1940 Act). The Fund invests primarily in the equity and/or debt securities of development stage companies located in western Pennsylvania. The Fund seeks to make its investments in conjunction with a consortium of
investment partners such as individual investors, other venture capital firms, private non-profit or for-profit companies or foundations, and federal, state or local public, quasi-public or publicly-supported economic development organizations,
agencies or authorities which provide investment capital or low interest or other financing for economic development.

As of February 28, 2002, the
Western Pennsylvania Adventure Capital Fund (a C Corporation) was merged into its wholly owned and heretofore inactive subsidiary, the Western Pennsylvania Adventure Capital Fund, LLC (an LLC organization). The Western Pennsylvania Adventure Capital
Fund, LLC has continued all of the operations of the Western Pennsylvania Adventure Capital Fund (a C Corporation).

The Funds Board of Directors,
which is elected by the members (previously by the shareholders) annually, has responsibility for management of the Fund, including authority to select portfolio securities for investment by the Fund. The Board is advised by the officers of the Fund
and, through December 31, 1998, had been advised by The Enterprise Corporation of Pittsburgh (Enterprise), which served as the Funds investment advisor. Enterprise screened potential Portfolio Companies and presented them to
the Funds Board for investment consideration, conducted due diligence reviews of investment candidates and managed the day-to-day operations of the Fund including, portfolio management, preparing reports to shareholders and performing
administrative services. The recommendations of Enterprise as to investments were advisory only and were not binding on the Fund or its Board of Directors. Enterprise was a private, non-profit consulting firm founded in 1983 for the purpose of
assisting entrepreneurs in developing new businesses in western Pennsylvania. As of December 31, 1998, Enterprise ceased operations and is no longer serving as the Funds investment advisor. The Funds Board of Directors now performs
these activities.

Enterprise received a fee equal to 5% of the aggregate amount of assets invested by the Fund in portfolio securities for providing
investment advisory and administrative services to the Fund. Enterprise may also have received compensation from investment partners or members of any investment consortium that invested with the Fund in portfolio securities, all on such basis as
such other parties and Enterprise may have agreed.



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##### Table of Contents

Basis of Presentation  Interim Financial Statements

The financial information included herein has been prepared from the books and records without audit. The accompanying financial statements have been prepared in
accordance with the instructions to Form 10-Q and do not include all of the information and the footnotes required by generally accepted accounting principles for statements. In the opinion of management, all adjustments, consisting only of normal
recurring adjustments, necessary for a fair presentation of the financial condition, results of operations, changes in net assets, and cash flows, have been included.

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

These financial statements should be read in conjunction with the financial statements and notes thereto for the period January 1, 2005 to December 31, 2005,
contained in the Funds 2005 Annual Report on Form 10-K.

Syndication Costs

Legal, accounting and other costs of $149,220 incurred in connection with the Funds First Offering, Second Offering and Third Offering have been capitalized and reported as a permanent reduction of net assets in
accordance with generally accepted accounting principles.

There were no syndication costs incurred in the three and six
month periods ended June 30, 2006 and June 30, 2005.

Cash and Cash Equivalents

Cash and Cash Equivalents consist of cash in checking accounts and high quality money market instruments having or deemed to have remaining maturities of thirteen months
or less.

Short Term Investments

The Funds short
term investments consist of high quality commercial paper, U.S. Government securities and municipal securities. These investments generally are purchased either at face value or at a discount or premium from face value and are redeemed at maturity
at face value. Any discount or premium represents interest income (expense) which will accrue over the period from date of acquisition to date of maturity. The Fund uses the effective yield to maturity method to recognize the accretion of interest
income (expense) over the life of each individual short term investment. This method produces a rate of return which is constant over the period from acquisition to maturity. Using this method, the interest income (expense) recognized on each
individual investment will increase over time as the carrying value of that investment increases (decreases). The Fund records these investments net of remaining unearned interest income (expense).



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##### Table of Contents

In accordance with Statement of Financial Accounting Standards (SFAS) No. 115, Accounting for
Certain Investments in Debt and Equity Securities, the Fund classifies all short term investments as available for sale.

Investments in Portfolio
Companies

Investments are stated at value. Investments for which market quotations are readily available are valued at the last trade price on or
within one local business day of the date of determination as obtained from a pricing source. If no such trade price is available, such investments are valued at the quoted bid price or the mean between the quoted bid and asked price on the date of
determination as obtained from a pricing source. Securities for which market quotations are not readily available are valued at fair value in good faith using methods determined by or under the direction of the Funds Board of Directors.

Start-Up and Organization Costs

Costs incurred in
connection with the start-up and organization of the Fund had been deferred and were being amortized ratably over a period of 60 months beginning January 1, 1998. During the three month period ended June 30, 2002, the Fund, as a result of
the merger (See Note 2), wrote off the remaining balance of $2,280 of deferred Start-Up and Organization Costs.

Earnings Per Unit

During 1997, the Fund adopted SFAS No. 128, Earnings Per Share. Its application is not expected to affect the calculations of basic and diluted earnings
per unit.

Earnings per unit is computed using the weighted average number of units outstanding during the respective periods, adjusted for outstanding
stock options, if any. There are no other outstanding warrants, or other contingently issuable units.

The Funds shareholders, at the annual meeting
of shareholders held on November 17, 1999, approved a stock option plan which authorizes the granting of options to purchase the Funds common stock to directors, officers, employees, and members of the advisory board of the Fund. Options
to purchase 250,000 shares of the Funds common stock have been granted to directors of the Fund under the terms of this stock option plan.

On
December 20, 2001, all of the directors returned their options to the Fund. The Fund may grant options to the directors at a future date.

The stock
option committee on July 12, 2002, granted options to purchase 50,000 shares of its members equity at an exercise price equal to the net asset value per unit as of June 30, 2002 to each of the Funds five directors (250,000
units in the aggregate). These options vest immediately. The net asset value per unit as of June 30, 2002 was $0.84 per unit. At June 30, 2006 and at December 31, 2005, none of the options had been exercised or had expired.



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Income Taxes

The
Fund has adopted the SFAS Standard No. 109, Accounting for Income Taxes, from its inception. SFAS 109 requires an asset and liability approach that recognizes deferred tax assets and liabilities for the expected future tax
consequences of events that have been recognized in the Funds financial statements or tax returns. In estimating future tax consequences, SFAS 109 generally considers all expected future events other than enactments of changes in the tax law
or rates. During the quarter ended December 31, 1999, the Fund recognized unrealized appreciation on its portfolio companies, and accordingly, began recognizing deferred taxes due to temporary timing differences in accordance with SFAS 109. As
a result of the merger discussed in Note 2, any remaining deferred taxes were reversed during the three month period ended March 31, 2002.

The Fund,
as a result of becoming an LLC as of February 28, 2002, is treated as a pass through entity for income tax purposes. Any income tax liabilities incurred by the Fund are allocated to members of the Fund annually for inclusion in the
members individual income tax returns. The Fund remains responsible for any Pennsylvania Capital Stock and Franchise Tax.

Note 2  Merger

As of February 28, 2002, the Fund converted from the C Corporation to an LLC Organization via merger of the C Corporation into its wholly
owned and previously inactive subsidiary  an LLC Organization. As a consequence, the LLC assumed all assets and liabilities of the C Corporation and is continuing all operations of the C Corporation.

Shareholders of the C Corporation have become members of the LLC, and hold the same number of ownership units in the LLC equal to the number of shares that they held in
the C Corporation, with no change in ownership percentage of the respective organizations.

Note 3  Sale of Securities

During 1997, the Fund sold 2,104,333 shares of its common stock at $1.00 per share, under an Offering Circular dated November 7, 1996 (First Offering
Circular). The proceeds were required to be deposited in an escrow account with the Funds escrow agent, PNC Bank, until such time as the escrow account reached $1 million. At that time, the Fund was permitted to withdraw the funds from
the escrow account and begin to invest in portfolio securities.

As of July 11, 1997, the proceeds in the escrow account totaled $1,860,100. On that
date, the Fund withdrew substantially all of the funds from the escrow account.

The funds released from escrow have been temporarily invested, pending
investment in Portfolio Securities, in cash equivalents, government securities, and high quality debt securities. A portion of the funds released from escrow were disbursed to pay accumulated obligations whose payment was deferred until funds were
released from escrow.

The Fund began offering for sale up to 2,750,000 shares of its Common Stock at $1.45 per share, or a maximum of $3,987,500, under an
Offering Circular dated September 10, 1999 (Second Offering Circular). The Fund intends to use the proceeds from this sale of securities primarily to invest in the equity and/or debt securities of additional development stage
companies located in western Pennsylvania, and to make follow on investments, as appropriate, in existing portfolio companies. The proceeds from this sale of securities have been temporarily invested, pending investments in portfolio companies, in
cash equivalents, government securities, and high quality debt securities. A portion of these proceeds may be used for normal operating expenses. The Fund sold 2,057,787 shares ($2,983,792) of its Common Stock under this Second Offering Circular.



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##### Table of Contents

The Fund began offering for sale up to 875,000 shares of its Common Stock at $1.60 per share, or a maximum of $1,400,000,
under an Offering Circular dated July 14, 2000 (Third Offering Circular). The Fund intends to use the proceeds from this sale of securities primarily to invest in the equity and/or debt securities of additional development stage
companies located in western Pennsylvania, and to make follow on investments, as appropriate, in existing portfolio companies. The proceeds from this sale of securities will be temporarily invested, pending investments in portfolio companies, in
cash equivalents, government securities, and high quality debt securities. A portion of these proceeds may be used for normal operating expenses. As of December 31, 2000, the Fund had received subscriptions to purchase 40,000 shares ($64,000).
The Fund sold 62,750 shares of its Common Stock at $1.60 per share under the Third Offering Circular, and closed the Third Offering as of March 31, 2001.

As of June 30, 2006, $2,580,650 (December 31, 2005, $2,573,900) was invested in Portfolio Securities, and the balance of the funds ($461,013) remained invested in cash equivalents, government securities, and high quality debt
securities.

Note 4  Investments in Portfolio Companies

On June 6, 2006, the Fund purchased 110,054 shares of TimeSys Corporation Series A3 Preferred Stock (TimeSys A3) at $0.085940 per share for a total investment of $9,458. There were no other
investments in portfolio companies during the six month period ended June 30, 2006

TimeSys Corporation develops and
markets software tools for embedded real time systems.

On April 18, 2005, the Fund purchased 222,553 shares of TimeSys Corporation Series A-2
Preferreed Stock (TimeSys A-2) at $0.085940 per share for a total investment of $19,126. At the same time, the Fund converted its TimeSys Corporation 6 percent Subordinated Secured Demand Loan (TimeSys Loan) dated
March 17, 2005 in the amount of $3,166 into 36,835 shares of TimeSys A-2 at $0.085940 per share. The Fund received a payment of $20 representing interest earned on the TimeSys Loan.

On April 21, 2005, the Fund purchased 23,000 shares of Akustica, Inc. Series B Preferred Stock at $3.04 per share for a total investment of $69,920.

Note 5  Short Term Investments

The Fund, pending investments in Portfolio Securities, temporarily
invests a portion of its excess funds in short term high quality commercial paper and U.S. Government securities. These investments generally are purchased either at face value or at a discount or premium from face value and are redeemed at maturity
at face value. The discount/premium from face value represents unearned interest income/expense and is recognized over the remaining term of the security using the effective yield to maturity method. All of the short term investments are classified
as available for sale in accordance with SFAS No. 115.



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Short term investments at June 30, 2006 and December 31, 2005 consisted at the
following (valued at cost):



|                                                    |  |              |         |                  |   |        
|--------------------------------------------------- |  | ------------ | ------- | ---------------- | - | -------
|Description                                         |  | June 30,2006 |         | December 31,2005
|Lehigh County PA General Purpose Revenue Bonds      |  | $            | 75,000  |                  | $ | 75,000 
|PA State Higher Education Bonds                     |  |              | 175,000 |                  |   | 125,000
|Northampton County PA General Purpose Revenue Bonds |  |              | 100,000 |                  |   | 100,000
|PA State Turnpike Commission Bonds                  |  |              | 25,000  |                  |   | 0      
|Quakertown PA General Authority Revenue Bonds       |  |              | 75,000  |                  |   | 75,000 
|                                                    |  |              |         |                  |   |        
|Total                                               |  | $            | 450,000 |                  | $ | 375,000
|                                                    |  |              |         |                  |   |        

Note 6  Unrealized Appreciation

The Fund recognizes unrealized appreciation (depreciation) on its portfolio companies when significant and material events have occurred that clearly indicates that an adjustment to the carrying value of those
investments is appropriate. Unrealized appreciation (depreciation) was $(683,058) as of June 30, 2006 and $(683,058) as of December 31, 2005. No unrealized appreciation (depreciation) was recognized in the six month period ended
June 30, 2006. Unrealized appreciation (depreciation) recognized in the three and six month periods ended June 30, 2005 was $(63,731) and $41,269, respectively. The $(63,731) represents a reversal of previously recorded unrealized
appreciation in order to recognize a realized loss on the investment in Entigo Corporation. (See Note 10). The $41,269 represents the aforementioned $(63,731) recognized in the three months ended June 30, 2005 offset by $105,000 reversal of
previously recorded unrealized depreciation in order to recognize a realized loss on the investment in Interactive Information.

Note 7 
Related Party Transactions

Accrued liabilities at June 30, 2006 include $3,000 for Board of Directors fees and $2,000 for accounting services
payable to a consulting firm in which one of the Funds officers is a significant shareholder. Accrued liabilities at December 31, 2005 include $3,000 for Board of Directors fees and $6,500 for accounting services payable to a consulting
firm in which one of the Funds officers is a significant shareholder.

Note 8 Stock Option Plan

The shareholders, at the annual meeting of shareholders held on November 17, 1999, approved a stock option plan authorizing the granting of options to purchase the
Funds common stock to directors, officers, employees and members of the advisory board of the Fund. Under the terms of the plan, the stock option committee has authority to award options to eligible persons on the basis of the nature of their
duties, their present and potential contributions to the success of the Fund and like factors.



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The maximum number of options that may be granted under the plan is 500,000. The exercise price is determined by the
stock option committee at the time the option is granted, but cannot be less than the fair market value of the Funds common stock on the date of grant. Each option will have a term, not in excess of 10 years, as determined by the stock option
committee. In general, each option will become exercisable in 25 percent increments beginning on the first, second, third and fourth anniversaries of the date of grant. Options may be granted as either incentive stock options or nonqualified stock
options.

The stock option committee granted options to purchase 50,000 units of its common stock at an exercise price of $1.45 per share to each of the
Funds five directors (250,000 shares in the aggregate), effective as of October 11, 1999. These options vest 50% upon issuance, and 25% in equal increments on the first and second anniversary dates of issuance.

On December 20, 2001, all of the directors returned their options to the Fund. The Fund may grant options to the directors at a future date.

The stock option committee on July 12, 2002, granted options to purchase 50,000 units of its members equity at an exercise price equal to the net asset value
per unit as of June 30, 2002 to each of the Funds five directors (250,000 units in the aggregate). These options vest immediately. The net asset value per unit as of June 30, 2002 was $0.84 per unit. At June 30, 2006 and at
December 31, 2005, none of the options had been exercised or had expired.

Note 9  Income Taxes

The Fund, as a result of becoming an LLC as of February 28, 2002, is treated as a pass through entity for income tax purposes. Any income tax liabilities
incurred by the Fund are allocated to members of the Fund annually for inclusion in the members individual income tax returns. The Fund remains responsible for any Pennsylvania Capital Stock and Franchise Tax.

Note 10  Realized Gains/(Losses)

In April, 2004, the
Fund received $812,162 from the sale of Neolinear, Inc. (Neolinear), one of the Funds portfolio companies, to Cadence Design Systems, Inc. (Cadence). As a part of this sale, approximately 12% of the consideration was
placed in an escrow account for a two year period to satisfy possible indemnity obligations of Neolinear. In May, 2006, the Fund received $126,585 released from the escrow account, and recorded these funds as a realized gain.

During the three month period ending June 30, 2005, the Fund determined that there was no possibility of a recovery of any of its investment in Entigo Corporation,
and recognized a realized loss of its total investment, $(227,204).



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##### Table of Contents

Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations

Results of
Operations

Revenues for the three and six month periods ending June 30, 2006 included interest income of $3,492 and $6,431, respectively, and
realized gains of $126,585 and $126,585, respectively.

The realized gain of $126,585 resulted from the receipt of escrowed funds relating to the
Registrants sale of Neolinear, Inc. (Neolinear), one of the registrants portfolio companies, to Cadence Design Systems, Inc. in April, 2004. The escrow account had been established to satisfy possible indemnity obligations of
Neolinear.

Revenues for the three and six month periods ending June 30, 2005 included interest income of $3,393 and $6,294, respectively, and
realized losses of $(227,204) and $(332,204), respectively.

The realized loss in the three months ending June 30, 2005 of $(227,204), resulted from
the write off of the Registrants investment in Entigo Corporation. During the three month period ending June 30, 2005, the Registrant determined that there was no possibility of a recovery of any of its investment in Entigo Corporation.
The realized loss in the six month period ending June 30, 2005 of $(332,204) includes the aforementioned loss on Entigo Corporation and a realized loss during the three months ending March 31, 2005 of ($105,000) on the Registrants
investment in Interactive Information.

General and administrative expenses for the three and six month periods ending June 30, 2006 amount to $3,000
and $6,000, respectively, and consisted of directors fees.

General and administrative expenses for the three and six month periods ending June 30,
2005 amount to $3,000 and $6,000, respectively, and consisted of directors fees.

Other operating expenses for the three and six month periods ending
June 30, 2006 amounted to $13,443 and $41,863, respectively. Professional fees for the three and six month periods ending June 30, 2006 amounted to $7,541 and $28,471, respectively. The remaining other operating expenses consist primarily
of administrative, clerical/secretarial and other related expenses, and amounted to $5,903 and $12,392, respectively, for the three and six month periods ended June 30, 2006.

Other operating expenses for the three and six month periods ending June 30, 2005 amounted to $16,302 and $43,179, respectively. Professional fees for the three and six month periods ending June 30, 2005
amounted to $8,715 and $25,846, respectively. The remaining other operating expenses consist primarily of administrative, clerical/secretarial and other related expenses, and amounted to $7,587 and $17,333, respectively, for the three and six month
periods ended June 30, 2005.

Financial Condition, Liquidity and Capital Resources

The Registrant, through its sale of Common Stock under the First Offering Circular, raised $2,104,333 in 1997. The Registrant, through the sale of its Common Stock under
the Second Offering Circular, raised $2,983,792 in 1999  2000. The Registrant, through the sale of its Common Stock under the Third Offering Circular, raised $100,400 in 2000-2001. As of June 30, 2006, the Registrant held cash, cash
equivalents, and short-term investments in high quality commercial paper and U.S. Government securities of $461,013. Most of this amount, except for normal operating expenses, is available for investment in Portfolio Securities.



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##### Table of Contents

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not Applicable.

Item 4. Controls and Procedures

The Chief Executive Officer and the Chief Financial Officer of the Company conducted
an evaluation of the effectiveness of the design and operation of the Companys disclosure controls and procedures as defined in Exchange Act Rule 13a-15(e) as of the end of the period covered by this report. Based on that evaluation, the Chief
Executive Officer and the Chief Financial Officer concluded that the Companys disclosure controls and procedures were effective as of the end of the period covered by this report. There were no significant changes in internal controls over
financial reporting that occurred during the three month and six month periods ended June 30, 2006 that have materially affected, or are reasonably likely to materially affect, the Companys internal controls over financial reporting.



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Part II  Other Information

|        |  |     |  |                                                                                                |  |                                                                                                           
|------- |  | --- |  | ---------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------
|Item 6. |  |     |  | Exhibits and Reports on Form 8-K                                                              
|        |  |    
|        |  | (a) |  | List of Exhibits                                                                              
|        |  |     | 
|        |  |     |  | 11                                                                                             |  | Computation of earnings per unit for the three and six month periods ended June 30, 2006 and June 30, 2005
|        |  |     | 
|        |  |     |  | 31.1                                                                                           |  | Certification of Chief Executive Officer                                                                  
|        |  |     | 
|        |  |     |  | 31.2                                                                                           |  | Certification of Principal Financial Officer                                                              
|        |  |     | 
|        |  |     |  | 32.1                                                                                           |  | Certification of Chief Executive Officer                                                                  
|        |  |     | 
|        |  |     |  | 32.2                                                                                           |  | Certification of Principal Financial Officer                                                              
|        |  |    
|        |  | (b) |  | Reports on Form 8-K                                                                           
|        |  |    
|        |  |     |  | No reports were filed on Form 8-K by the Registrant during the quarter covered by this report.



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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Western Pennsylvania Adventure Capital Fund has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized:



| |  |                                                  |  |                                                   
| |  | ------------------------------------------------ |  | --------------------------------------------------
| |  | Western Pennsylvania Adventure Capital Fund, LLC
| |  | (Registrant)                                    
| |  |                                                 
| |  | Date: August 7, 2006                             |  | /s/ G. Richard Patton                             
| |  |                                                  |  | G. Richard Patton                                 
| |  |                                                  |  | President and Chief Executive Officer and Director
| |  |                                                 
| |  | Date: August 7, 2006                             |  | /s/ Alvin J. Catz                                 
| |  |                                                  |  | Alvin J. Catz                                     
| |  |                                                  |  | Chief Financial Officer, Treasurer and Director   



21