##### 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 fiscal quarter ended September 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 00051965
 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
 þ o
 þ Yes  o No
  Large Accelerated Filer o
    
    Accelerated Filer o
    
    Non-Accelerated Filer þ
    
    Smaller Reporting Company o
 o þ




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##### 



INDEX
 PART I. FINANCIAL INFORMATION
    
    
    3Item 1. Financial Statements
    
    
    3Item 2. Managements Discussion and Analysis or Plan of Operation
    
    
    20Item 3. Quantitative and Qualitative Disclosures About Market Risks
    
    
    29Item 4T. Controls and Procedures
    
    
    31PART II  OTHER INFORMATION
    
    
    31Item 1. Legal Proceedings
    
    
    31Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    33Item 3. Defaults Upon Senior Securities
    
    
    33Item 4. Submission of Matters to a Vote of Security Holders
    
    
    33Item 5. Other Information
    
    
    33Item 6. Exhibits
    
    
    33EX-31.1EX-31.2EX-32.1EX-32.2
   2




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PART I. FINANCIAL INFORMATION
 
 Item 1. Financial Statements
 WESTERN IOWA ENERGY, LLC
 BALANCE SHEETS
 September 30,
    
    
    December 31,2009
    
    
    2008(UNAUDITED)ASSETSCURRENT ASSETSCash and cash equivalents
    
    $
    75,706
    
    
    $
    66,400Margin deposits
    
    
    139,712
    
    
    
    285,295Derivative instruments
    
    
    23,958
    
    
    
    61,360Trade accounts receivable  related party
    
    
    2,606,423
    
    
    
    1,428,521Other receivables
    
    
    115,678
    
    
    
    163,470Incentive receivables
    
    
    215,882
    
    
    
    312,019Inventory
    
    
    3,224,747
    
    
    
    4,510,457Prepaid expenses
    
    
    211,892
    
    
    
    222,476Total current assets
    
    
    6,613,998
    
    
    
    7,049,998PROPERTY, PLANT AND EQUIPMENTLand and land improvements
    
    
    1,364,842
    
    
    
    1,364,842Office building and equipment
    
    
    645,542
    
    
    
    645,542Plant and process equipment
    
    
    33,827,128
    
    
    
    33,683,185Construction in progress
    
    
    9,610
    
    
    
    17,513Total, at cost
    
    
    35,847,122
    
    
    
    35,711,082Less accumulated depreciation
    
    
    7,114,439
    
    
    
    5,451,621Total property, plant and equipment
    
    
    28,732,683
    
    
    
    30,259,461OTHER ASSETSLand options
    
    
    596
    
    
    
    596Other investments
    
    
    107,198
    
    
    
    80,895Loan origination fees, net of amortization
    
    
    73,878
    
    
    
    87,451Total other assets
    
    
    181,672
    
    
    
    168,942TOTAL ASSETS
    
    $
    35,528,353
    
    
    $
    37,478,401LIABILITIES AND MEMBERS EQUITYCURRENT LIABILITIESAccounts payable:Trade
    
    $
    1,417,637
    
    
    $
    794,345Related party
    
    
    103,379
    
    
    
    28,480Current portion of long-term debt
    
    
    1,909,722
    
    
    
    2,729,110Accrued interest
    
    
    21,582
    
    
    
    33,372Accrued wages and benefits
    
    
    108,039
    
    
    
    71,570Accrued payroll taxes
    
    
    4,267
    
    
    
    4,059Accrued expenses  related party
    
    
    14,656
    
    
    
    117,620Other current liabilities
    
    
    50,473
    
    
    
    46,079Total current liabilities
    
    
    3,629,755
    
    
    
    3,824,635LONG-TERM LIABILITIESLong-term debt, less current portion above
    
    
    4,740,277
    
    
    
    6,725,056Total liabilities
    
    
    8,370,032
    
    
    
    10,549,691MEMBERS EQUITYContributed capital
    
    
    23,516,376
    
    
    
    23,516,376Retained earnings
    
    
    3,641,945
    
    
    
    3,412,334Total members equity
    
    
    27,158,321
    
    
    
    26,928,710TOTAL LIABILITIES AND MEMBERS EQUITY
    
    $
    35,528,353
    
    
    $
    37,478,401
   3




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WESTERN
IOWA ENERGY, LLC
 STATEMENTS OF OPERATIONS
 Three Months Ended
    
    
    Three Months Ended
    
    
    Nine Months Ended
    
    
    Nine Months EndedSeptember 30, 2009
    
    
    September 30, 2008
    
    
    September 30, 2009
    
    
    September 30, 2008REVENUESRelated parties
    
    $
    16,026,679
    
    
    $
    24,164,179
    
    
    $
    28,848,407
    
    
    $
    63,421,838Incentive funds
    
    
    1,011,205
    
    
    
    2,074,436
    
    
    
    3,055,599
    
    
    
    8,447,601Total revenues
    
    
    17,037,884
    
    
    
    26,238,615
    
    
    
    31,904,006
    
    
    
    71,869,439COST OF SALES
    
    
    15,430,919
    
    
    
    24,146,046
    
    
    
    30,222,543
    
    
    
    65,524,809Gross profit
    
    
    1,606,965
    
    
    
    2,092,569
    
    
    
    1,681,463
    
    
    
    6,344,630OPERATING EXPENSESConsulting and professional fees
    
    
    152,300
    
    
    
    40,238
    
    
    
    526,936
    
    
    
    205,823Office and administrative expenses
    
    
    389,135
    
    
    
    537,128
    
    
    
    1,019,562
    
    
    
    1,480,403Total operating
expenses
    
    
    541,435
    
    
    
    577,366
    
    
    
    1,546,498
    
    
    
    1,686,226OTHER INCOME (EXPENSE)Interest income
    
    
    1,338
    
    
    
    3,782
    
    
    
    2,690
    
    
    
    8,561Interest expense
    
    
    (79,356
    )
    
    
    (141,206
    )
    
    
    (256,303
    )
    
    
    (642,379
    )Grant income
    
    
    131,525
    
    
    
    
    
    
    
    231,525
    
    
    
    Patronage dividends
    
    
    
    
    
    
    
    
    
    
    116,734
    
    
    
    156,404Total other income
(expense)
    
    
    53,507
    
    
    
    (137,424
    )
    
    
    94,646
    
    
    
    (477,414
    )NET INCOME
    
    $
    1,119,037
    
    
    $
    1,377,779
    
    
    $
    229,611
    
    
    $
    4,180,990BASIC AND DILUTED EARNINGS PER UNIT
    
    $
    42.31
    
    
    $
    52.10
    
    
    $
    8.68
    
    
    $
    158.09WEIGHTED AVERAGE UNITS OUTSTANDING,
BASIC AND DILUTED
    
    
    26,447
    
    
    
    26,447
    
    
    
    26,447
    
    
    
    26,447
   4




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WESTERN
IOWA ENERGY, LLC
 STATEMENTS OF CASH FLOWS
 Nine Months Ended
    
    
    Nine Months EndedSeptember 30, 2009
    
    
    September 30, 2008CASH FLOWS FROM OPERATING ACTIVITIESNet income
    
    $
    229,611
    
    
    $
    4,180,990Adjustments
to reconcile net income to net cash
provided by operating activitiesDepreciation and amortization
    
    
    1,676,391
    
    
    
    1,651,444Provision for bad debts
    
    
    
    
    
    
    58,424Non cash portion of patronage dividends
    
    
    (26,303
    )
    
    
    (47,085
    )Non cash forgiveness of debt
    
    
    (100,000
    )
    
    
    Effects of changes in operating assets and liabilitiesMargin deposits
    
    
    145,583
    
    
    
    632,694Trade accounts receivable  related party
    
    
    (1,177,902
    )
    
    
    3,517,057Other receivables
    
    
    47,792
    
    
    
    (177,024
    )Incentive receivables
    
    
    96,137
    
    
    
    81,211Inventory
    
    
    1,285,710
    
    
    
    1,098,532Derivative instruments
    
    
    37,402
    
    
    
    (2,107,872
    )Prepaid expenses and other assets
    
    
    10,584
    
    
    
    (170,571
    )Accounts payable
    
    
    698,191
    
    
    
    (2,070,516
    )Accrued interest
    
    
    (11,790
    )
    
    
    (55,295
    )Accrued wages and benefits
    
    
    36,469
    
    
    
    35,339Accrued payroll taxes
    
    
    208
    
    
    
    1,614Accrued expenses  related party
    
    
    (102,964
    )
    
    
    266,872Other current liabilities
    
    
    4,394
    
    
    
    37,444Net cash provided by operating activities
    
    
    2,849,513
    
    
    
    6,933,258CASH FLOWS FROM INVESTING ACTIVITIESPurchase of property, plant and equipment, including
construction in progress
    
    
    (136,040
    )
    
    
    (266,254
    )Net cash used in investing activities
    
    
    (136,040
    )
    
    
    (266,254
    )CASH FLOWS FROM FINANCING ACTIVITIESNet payments on revolving line of credit
    
    
    
    
    
    
    (3,800,000
    )Proceeds from long-term debt
    
    
    9,077,000
    
    
    
    4,582,566Payments on long-term debt
    
    
    (11,781,167
    )
    
    
    (7,176,733
    )Net cash used in financing activities
    
    
    (2,704,167
    )
    
    
    (6,394,167
    )NET INCREASE IN CASH AND CASH EQUIVALENTS
    
    
    9,306
    
    
    
    272,837CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
    
    
    66,400
    
    
    
    32,048CASH AND CASH EQUIVALENTS, END OF PERIOD
    
    $
    75,706
    
    
    $
    304,885
   5




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WESTERN
IOWA ENERGY, LLC
 NOTES TO FINANCIAL STATEMENTS
September 30, 2009
 NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
  Use of Estimates in Preparing Financial Statements
  Basis of Accounting
    Revenue Recognition
  Cash and Cash Equivalents
    6




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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
September 30, 2009
 NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Accounts Receivable
   Derivative Instruments and Hedging Activities
 Derivatives and Hedging,
 Inventories
  Property, Plant, and Equipment
   YearsLand improvements
    
    
    2040Office building
    
    
    540Office equipment
    
    
    520Plant and process equipment
    
    
    1040
  7




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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
September 30, 2009
 NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Property, Plant, and Equipment
  Loan Origination Fees
  Other Investments
  Other Income
  Income Taxes
  Earnings (Loss) Per Unit
   8




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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
September 30, 2009
 NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Cost of Sales
  Shipping and Handling Costs
  Environmental Liabilities
  Fair Value of Financial Instruments
  Current assets and current liabilities
 Long-term debt
 New Accounting Standards
 The FASB Accounting Standards Codification and the
Hierarchy of Generally Accepted Accounting Principles Generally Accepted Accounting Standards,
  9




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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
September 30, 2009
 NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 New Accounting Standards
 , Disclosures about Derivative Instruments and Hedging
Activities Derivatives
and Hedging,
 Interim Disclosures
about Fair Value of Financial Instruments Financial
Instruments,
 Subsequent Events Subsequent Events,
 NOTE 2  INCENTIVE PAYMENTS AND RECEIVABLE
   10




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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
September 30, 2009
 NOTE 3  INVENTORY
  September 30,
    
    
    December 31,2009
    
    
    2008Raw material
    
    $
    635,389
    
    
    $
    496,028Work in process
    
    
    508,026
    
    
    
    541,530Finished goods
    
    
    2,081,332
    
    
    
    3,472,899Total
    
    $
    3,224,747
    
    
    $
    4,510,457
 NOTE 4  LAND OPTION
  NOTE 5  DEBT AND FINANCING
 Long-Term Debt
  September 30,
    
    
    December 31,2009
    
    
    2008Note payable to Farm Credit Services
of America and CoBank under term note
agreement  see details below
    
    $
    2,800,000
    
    
    $
    4,150,000Note payable to Farm Credit Services
of America and CoBank under reducing
revolving credit note  see details below
    
    
    3,080,000
    
    
    
    4,350,000Note payable to the Iowa Department of
Economic Development  see details below
    
    
    215,000
    
    
    
    337,500Note payable to Glidden Rural Electric
Cooperative  see details below
    
    
    554,999
    
    
    
    616,666Total
    
    
    6,649,999
    
    
    
    9,454,166Less current portion
    
    
    1,909,722
    
    
    
    2,729,110Long-term portion
    
    $
    4,740,277
    
    
    $
    6,725,056
  11




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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
September 30, 2009
 NOTE 5  DEBT AND FINANCING
 Long-Term Debt
  2010
    
    $
    1,909,7222011
    
    
    1,112,2222012
    
    
    112,2222013
    
    
    209,7222014
    
    
    1,212,222Thereafter
    
    
    2,093,889Total
    
    $
    6,649,999
    12




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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
September 30, 2009
 NOTE 5  DEBT AND FINANCING
   NOTE 6  MEMBERS EQUITY
  NOTE 7  CASH FLOW DISCLOSURES
  Nine
    
    
    NineMonths
    
    
    MonthsEnded
    
    
    EndedSeptember 30,
    
    
    September 30,2009
    
    
    2008Cash paid for interest
    
    $
    268,093
    
    
    $
    697,674
 NOTE 8  RELATED PARTY TRANSACTIONS
   13




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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
September 30, 2009
 NOTE 8  RELATED PARTY TRANSACTIONS
    NOTE 9  LEASE COMMITMENTS
  2010
    
    $
    35,6272011
    
    
    35,627Total
    
    $
    71,254
  NOTE 10  RETIREMENT AND SAVINGS PLAN
   14




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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
September 30, 2009
 NOTE 11  FAIR VALUE OF FINANCIAL INSTRUMENTS
 Fair Value Measurements and
Disclosures,
 
    
    Level 1Unadjusted quoted prices for identical assets and liabilities in active
markets;
    
    Level 2Quoted prices for similar assets and liabilities in active markets (other
than those included in Level 1) which are observable for the asset or liability, either
directly or indirectly; and
    
    Level 3Valuations derived from valuation techniques in which one or more
significant inputs or significant value drivers are unobservable.
  SignificantQuoted Prices in
    
    
    Other
    
    
    SignificantActive Markets for
    
    
    Observable
    
    
    UnobservableSeptember 30,
    
    
    Identical Assets
    
    
    Input
    
    
    Inputs2009
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)Financial assets:Commodity derivatives
    
    $
    23,958
    
    
    $
    23,958
    
    
    $
    
    
    
    $
    
  NOTE 12  DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
 Disclosures about Derivative Instruments and Hedging Activities Derivatives and Hedging Accounting for Derivative
Instruments and Hedging Activities
  15




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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
September 30, 2009
 NOTE 12  DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
 Objectives and Strategies for Holding Derivative Instruments
  Commodity Risk Management
  Accounting for Derivative Instruments and Hedging Activities
   Fair Value of Derivative Instruments
 Balance Sheet
    
    
    Asset Derivatives
    
    
    Liability DerivativesClassification
    
    
    September 30, 2009
    
    
    September 30, 2009Derivatives not designated
as hedging:Commodity
contracts 
Heat Oil options and swaps
    
    Current assets
    
    $
    23,958
    
    
    $
    
  16




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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
September 30, 2009
 NOTE 12  DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
 Fair Value of Derivative Instruments
  Location of net loss
    
    
    Net income (loss)recognized in
    
    
    recognized inDerivatives not designated as
    
    earnings on
    
    
    income on derivativehedging instruments
    
    derivative activities
    
    
    activitiesCommodity contracts  Soybean oil futures and Heat Oil
options and swaps
    
    Cost of sales
    
    $
    (696,484
    )
  NOTE 13  UNCERTAINTIES
     17




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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
September 30, 2009
 NOTE 14  GAIN CONTINGENCIES
   NOTE 15  ASSET PURCHASE AGREEMENT
    18




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WESTERN IOWA ENERGY, LLC
NOTES TO FINANCIAL STATEMENTS
September 30, 2009
 NOTE 15  ASSET PURCHASE AGREEMENT
    NOTE 16  SUBSEQUENT EVENTS
   19




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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.
  Cautionary Statements Regarding Forward Looking Statements
  
    
    Overcapacity within the biodiesel industry resulting in increased competition and
costs for feedstock and/or decreased prices for our biodiesel and glycerin;
    
    Competition with other manufacturers in the biodiesel industry;
    
    The availability and adequacy of our cash flow to meet our requirements;
    
    Results of our hedging strategies;
    
    Changes in interest rates and the availability of credit to support capital
improvements, development, expansion, and operations;
    
    Decrease in the demand for biodiesel;
    
    Changes in plant production capacity or technical difficulties in operating the
plant;
    
    Actual biodiesel and glycerin production varying from expectations;
    
    Availability and cost of products and raw materials, particularly soybean oil and
animal fats;
    
    Changes in the price and market for biodiesel and its co-products;
    
    Our ability to market and our reliance on third parties to market our products;
    
    Fluctuations in petroleum prices;
    
    Competition from alternative fuels and alternative fuel additives;
    
    Changes in our business strategy, capital improvement, or development plans;
    
    Consequences of the domestic and global economic downturn and recent financial
crisis;
    
    Our ability to generate free cash flow to invest in our business and service our
debt;
    
    Changes in general economic conditions or the occurrence of certain events causing
an economic impact in the agriculture, oil, or transportation industries;
    
    Changes in the environmental regulations or in our ability to comply with the
environmental regulations that apply to our plant operations;
    
    Changes and advances in biodiesel production technology;
    
    Our ability to continue to export our biodiesel;
    
    Changes in federal, state, or local incentives for biodiesel production;
    
    Changes to the rules related to the Renewable Fuels Standard;
    
    The imposition of tariffs or other duties on biodiesel imported into Europe;
    
    Our ability to comply with the financial covenants in our loan agreements;
    
    The closing, or the failure to close, of the transaction contemplated by the asset
purchase agreement entered into by the Companys board of directors with REG and other
parties affiliated with REG; and
    
    Other factors described elsewhere in this report.
  20




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Overview
   Liquidity and Capital
Resources  Amended and Restated Asset Purchase Agreement with Renewable Energy Group, Inc .
    21




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Results of Operations for the Three Months Ended September 30, 2009 and 2008
  Three Months Ended
    
    
    Three Months EndedSeptember 30, 2009
    
    
    September 30, 2008(Unaudited)
    
    
    (Unaudited)Statement of Operations Data
    
    Amount
    
    
    %
    
    
    Amount
    
    
    %Revenues
    
    $
    17,037,884
    
    
    
    100.00
    %
    
    $
    26,238,615
    
    
    
    100.00
    %Cost of Sales
    
    $
    15,430,919
    
    
    
    90.57
    %
    
    $
    24,146,046
    
    
    
    92.02
    %Gross Profit (Loss)
    
    $
    1,606,965
    
    
    
    9.43
    %
    
    $
    2,092,569
    
    
    
    7.98
    %Operating Expenses
    
    $
    541,435
    
    
    
    3.18
    %
    
    $
    577,366
    
    
    
    2.21
    %Other Income (Expense)
    
    $
    53,507
    
    
    
    0.31
    %
    
    $
    (137,424
    )
    
    
    (0.52
    %)Net Income (Loss)
    
    $
    1,119,037
    
    
    
    6.57
    %
    
    $
    1,377,779
    
    
    
    5.25
    %
  22




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Revenues
  Three Months Ended
    
    
    Three Months EndedSeptember 30, 2009
    
    
    September 30, 2008% of
    
    
    
    
    
    
    % ofRevenue Sources
    
    Amount
    
    
    Revenues
    
    
    Amount
    
    
    RevenuesBiodiesel Sales
    
    $
    16,477,362
    
    
    
    96.71
    %
    
    $
    25,367,193
    
    
    
    97.67
    %Glycerin Sales
    
    $
    194,850
    
    
    
    1.14
    %
    
    $
    361,034
    
    
    
    1.38
    %Fatty Acid
Sales and Soapstock Sales
    
    $
    365,672
    
    
    
    2.15
    %
    
    $
    510,388
    
    
    
    1.95
    %Total Revenues
    
    $
    17,037,884
    
    
    
    100.0
    %
    
    $
    26,238,615
    
    
    
    100
    %
       23




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Cost of Sales
     Operating Expense
  Other Income (Expenses)
   24




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Results of Operations for the Nine Months Ended September 30, 2009 and 2008
  Nine Months Ended
    
    
    Nine Months EndedSeptember 30, 2009
    
    
    September 30, 2008(Unaudited)
    
    
    (Unaudited)Statement of Operations Data
    
    Amount
    
    
    %
    
    
    Amount
    
    
    %Revenues
    
    $
    31,904,006
    
    
    
    100.00
    %
    
    $
    71,869,439
    
    
    
    100.00
    %Cost of Sales
    
    $
    30,222,543
    
    
    
    94.73
    %
    
    $
    65,524,809
    
    
    
    91.17
    %Gross Profit (Loss)
    
    $
    1,681,463
    
    
    
    5.27
    %
    
    $
    6,344,630
    
    
    
    8.83
    %Operating Expenses
    
    $
    1,546,498
    
    
    
    4.85
    %
    
    $
    1,686,226
    
    
    
    2.34
    %Other Income (Expense)
    
    $
    94,646
    
    
    
    0.30
    %
    
    $
    (477,414
    )
    
    
    (0.66
    %)Net Income (Loss)
    
    $
    229,611
    
    
    
    0.72
    %
    
    $
    4,180,990
    
    
    
    5.83
    %
 Revenues
  Nine Months Ended
    
    
    Nine Months EndedSeptember 30, 2009
    
    
    September 30, 2008% of
    
    
    
    
    
    
    % ofRevenue Sources
    
    Amount
    
    
    Revenues
    
    
    Amount
    
    
    RevenuesBiodiesel Sales
    
    $
    30,706,418
    
    
    
    96.25
    %
    
    $
    69,266,632
    
    
    
    96.38
    %Glycerin Sales
    
    $
    534,058
    
    
    
    1.67
    %
    
    $
    1,632,637
    
    
    
    2.27
    %Fatty Acid
Sales and Soapstock Sales
    
    $
    663,530
    
    
    
    2.08
    %
    
    $
    970,170
    
    
    
    1.35
    %Total Revenues
    
    $
    31,904,006
    
    
    
    100.0
    %
    
    $
    71,869,439
    
    
    
    100
    %
   25




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##### Table of Contents



Cost of Sales
  Operating Expense
  Other Income (Expenses)
  Changes in Financial Condition for the Nine Months Ended September 30, 2009
  September 30,
    
    
    December 31,2009
    
    
    2008Current Assets
    
    $
    6,613,998
    
    
    $
    7,049,998Current Liabilities
    
    $
    3,629,755
    
    
    $
    3,824,635Long-Term Debt
    
    $
    4,740,277
    
    
    $
    6,725,056Members Equity
    
    $
    27,158,321
    
    
    $
    26,928,710
 Current Assets
 Current Liabilities
 Long-Term Debt
 Members Equity
  26




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##### Table of Contents



Liquidity and Capital Resources
 Cash Flows
  2009
    
    
    2008Net cash provided by (used in) operating activities
    
    $
    2,849,513
    
    
    $
    6,933,258Net cash used in investing activities
    
    $
    (136,040
    )
    
    $
    (266,254
    )Net cash provided by (used in) financing activities
    
    $
    (2,704,167
    )
    
    $
    (6,394,167
    )Net increase in cash and equivalents
    
    $
    9,306
    
    
    $
    272,837
 Operating Cash Flows
  Investing Cash Flows
  Financing Cash Flows
  Indebtedness
 Short-Term Debt Sources
   Long-Term Debt Sources
   27




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##### Table of Contents



Amended and Restated Asset Purchase Agreement with Renewable Energy Group, Inc.
    28




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##### Table of Contents



Critical Accounting Estimates
  Inventories.
 Long-Lived Assets.
  Off-Balance Sheet Arrangements
  
 Item 3. Quantitative and Qualitative Disclosures About Market Risks.
 Accounting for Derivative Instruments
and Hedging Activities
  Interest Rate Risk
 Item 2 
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS  Liquidity
and Capital Resources, Indebtedness.
  29




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##### Table of Contents



Outstanding Variable
    
    Interest Rate at
    
    
    Adverse 10% Change in
    
    
    Annual Adverse ChangeRate Debt at 9/30/09
    
    September 30, 2009
    
    
    Interest Rates
    
    
    to Income$
    2,800,000
    
    
    3.75
    %
    
    
    4.13
    %
    
    $
    11,200$
    3,080,000
   
    
    3.75
    %
    
    
    4.13
    %
    
    $
    12,320
 Commodity Price Risk
      Effect ofHypotheticalAdverse Change -Fair Value
    
    
    Market RiskSeptember 30, 2009
    
    $
    4,092,754
    
    
    $
    409,275September 30, 2008
    
    $
    2,080,633
    
    
    $
    208,063
  30




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##### Table of Contents



Item 4. Controls and Procedures.
 Disclosure Controls and Procedures
   Changes in Internal Controls
  
 PART
II  OTHER INFORMATION
 
 Item 1. Legal Proceedings.
  Item 1A. Risk Factors
 MANAGEMENTS DISCUSSION AND ANALYSIS
  31




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##### Table of Contents



REGs termination of the MOSA could cause a material adverse effect on our ability to produce,
sell, and market biodiesel.
 The asset purchase agreement entered into by the Companys board of directors, REG, and
certain other REG affiliates is subject to a variety of closing conditions and may not close.
 Even if the transactions contemplated by the asset purchase agreement are consummated, the
combined company may not successfully integrate the businesses of REG, CIE, WIE, and Blackhawk and
may not realize the anticipated benefits of the consolidation.
 
    
    demonstrating to the customers of REG, CIE, WIE, and Blackhawk that the consolidation
will not result in adverse changes in biodiesel quality, customer service standards, or
business focus;
    
    consolidating and rationalizing corporate administrative infrastructures;
    
    coordinating sales and marketing efforts to effectively communicate the expanded
capabilities of the combined company;
    
    coordinating the supply chains; and
    
    preserving important relationships and resolving potential conflicts that may arise.
   32




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##### Table of Contents



The EPAs recent finding 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.
  
 Item 6. Exhibits.
 Exhibit No.
    
    Exhibit31.1
    
    Certificate Pursuant to 17 CFR 240.15d-14(a).31.2
    
    Certificate Pursuant to 17 CFR 240.15d-14(a).32.1
    
    Certificate Pursuant to 18 U.S.C. § 1350.32.2
    
    Certificate Pursuant to 18 U.S.C. § 1350.
 
 SIGNATURES
  WESTERN IOWA ENERGY, LLCDate: November 16, 2009
    /s/ William J. HoranWilliam J. HoranChairman, President and Director(Principal Executive Officer)Date: November 16, 2009
    /s/ Joe NepplJoe NepplChief Financial Officer(Principal Financial and Accounting Officer)  33