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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 
 FORM 10-KSB
 
 SPECIAL FINANCIAL REPORT PURSUANT TO Rule 15(d) - 2
 
 þ
    
    Annual report under Section 13 or 15(d) of the Securities Exchange Act of 1934.
 Contains only financial statements for the fiscal year ended November 30, 2006.
 Commission file number 333-134257
 VICTORY RENEWABLE FUELS, LLC
  Iowa
    
    20-2697625(State or other jurisdiction of
    
    (I.R.S. Employer Identification No.)incorporation or organization)
 303 Hoogie Street, Lester, Iowa
    
    51242(Address of principal executive offices)
    
    (Zip Code)
 (877) 200-0340
   None
  None
 þ o
 þ
 o þ
 None
   o þ




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VICTORY RENEWABLE FUELS, LLC
  PageEXPLANATORY NOTE
    
    1CONTROLS AND PROCEDURES
    
    1REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
    
    2FINANCIAL STATEMENTSBalance Sheet
    
    3Statement of Operations
    
    4Statement of Changes in Members Equity
    
    5Statement of Cash Flows
    
    6Notes to Financial Statements
    
    7ITEM 13. EXHIBITS.
    
    11SIGNATURES
    
    12CertificateCertificateSection 1350 CertificateSection 1350 Certificate




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EXPLANATORY NOTE
   
 CONTROLS AND PROCEDURES
   1




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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
      
 2




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VICTORY RENEWABLE FUELS, LLC
 
  November 30,
    
    
    November 30,ASSETS
    
    2006
    
    
    2005Current AssetsCash and equivalents
    
    $
    583,265
    
    
    $
    5,339Grant receivable
    
    
    
    
    
    
    5,000Prepaid expenses
    
    
    11,061
    
    
    
    14,995Total current assets
    
    
    594,326
    
    
    
    25,334Property and equipmentOffice equipment
    
    
    5,614
    
    
    
    Less accumulated depreciation
    
    
    (244
    )
    
    
    Net property and equipment
    
    
    5,370
    
    
    
    Other AssetsLand option
    
    
    1,000
    
    
    
    Deferred offering costs
    
    
    193,023
    
    
    
    6,828Total other assets
    
    
    194,023
    
    
    
    6,828Total Assets
    
    $
    793,719
    
    
    $
    32,162
 November 30,
    
    
    November 30,LIABILITIES AND MEMBERS EQUITY
    
    2006
    
    
    2005Current LiabilitiesAccounts payable
    
    $
    67,955
    
    
    $
    4,236Members EquityMember contributions, net of costs of raising capital, 2,710 and 455 units
outstanding at November 30, 2006 and 2005, respectively
    
    
    1,241,255
    
    
    
    122,500Deficit accumulated during development stage
    
    
    (515,491
    )
    
    
    (94,574
    )Total members equity
    
    
    725,764
    
    
    
    27,926Total Liabilities and Members Equity
    
    $
    793,719
    
    
    $
    32,162
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VICTORY RENEWABLE FUELS, LLC
 
  Year Ended
    
    
    From Inception
    
    
    From InceptionNovember 30,
    
    
    (April 19, 2005) to
    
    
    (April 19, 2005) to2006
    
    
    November 30, 2005
    
    
    November 30, 2006Revenues
    
    $
    
    
    
    $
    
    
    
    $
    Operating ExpensesProfessional fees
    
    
    434,335
    
    
    
    65,051
    
    
    
    499,386General and administrative
    
    
    27,567
    
    
    
    34,523
    
    
    
    62,090Total
    
    
    461,902
    
    
    
    99,574
    
    
    
    561,476Operating Loss
    
    
    (461,902
    )
    
    
    (99,574
    )
    
    
    (561,476
    )Other IncomeGrant income
    
    
    10,000
    
    
    
    5,000
    
    
    
    15,000Dividend and interest income
    
    
    30,985
    
    
    
    
    
    
    
    30,985Total other income
    
    
    40,985
    
    
    
    5,000
    
    
    
    45,985Net Loss
    
    $
    (420,917
    )
    
    $
    (94,574
    )
    
    $
    (515,491
    )Weighted Average Units Outstanding
    
    
    2,451
    
    
    
    405
    
    
    
    1,670Net Loss Per Unit
    
    $
    (171.73
    )
    
    $
    (233.52
    )
    
    $
    (308.68
    )
  4




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VICTORY RENEWABLE FUELS, LLC
 
  Deficit AccumulatedMember
    
    
    During DevelopmentContributions
    
    
    StageBalance  Inception, April 19, 2005
    
    $
    
    
    
    $
    Capital contributions - 420 units, $250 per unit, April 2005
    
    
    105,000
    
    
    
    Capital contributions - 35 units, $500 per unit, November 2005
    
    
    17,500
    
    
    
    Net loss
    
    
    
    
    (94,574
    )Balance  November 30, 2005
    
    
    122,500
    
    
    
    (94,574
    )Capital contributions - 2,255 units, $500 per unit, January 2006
    
    
    1,127,500
    
    
    
    Cost of raising capital
    
    
    (8,745
    )
    
    
    Net loss
    
    
    
    
    
    
    (420,917
    )Balance  November 30, 2006
    
    $
    1,241,255
    
    
    $
    (515,491
    )
  5




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VICTORY RENEWABLE FUELS, LLC
 
  Year Ended
    
    
    From Inception
    
    
    From InceptionNovember 30,
    
    
    (April 19, 2005) to
    
    
    (April 19, 2005) to2006
    
    
    November 30, 2005
    
    
    November 30, 2006Cash Flows from Operating ActivitiesNet loss
    
    $
    (420,917
    )
    
    $
    (94,574
    )
    
    $
    (515,491
    )Adjustments to reconcile net loss to net cash from operations:Change in assets and liabilitiesDepreciation
    
    
    244
    
    
    
    
    
    
    
    244Grant receivable
    
    
    5,000
    
    
    
    (5,000
    )
    
    
    Prepaid expenses
    
    
    3,934
    
    
    
    (14,995
    )
    
    
    (11,061
    )Accounts payable
    
    
    9,419
    
    
    
    4,236
    
    
    
    13,655Net cash used in operating activities
    
    
    (402,320
    )
    
    
    (110,333
    )
    
    
    (512,653
    )Cash Flows from Investing ActivitiesPayment for land option
    
    
    (1,000
    )
    
    
    
    
    
    
    (1,000
    )Payments for office equipment
    
    
    (5,614
    )
    
    
    
    
    
    
    (5,614
    )Net cash used in investing activities
    
    
    (6,614
    )
    
    
    
    
    
    
    (6,614
    )Cash Flows from Financing ActivitiesPayments for offering costs
    
    
    (140,640
    )
    
    
    (6,828
    )
    
    
    (147,468
    )Member contributions
    
    
    1,127,500
    
    
    
    122,500
    
    
    
    1,250,000Net cash provided by financing activities
    
    
    986,860
    
    
    
    115,672
    
    
    
    1,102,532Net Increase in Cash and Equivalents
    
    
    577,926
    
    
    
    5,339
    
    
    
    583,265Cash and Equivalents  Beginning of Period
    
    
    5,339
    
    
    
    
    
    
    
    Cash and Equivalents  End of Period
    
    $
    583,265
    
    
    $
    5,339
    
    
    $
    583,265SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING ACTIVITIESDeferred offering costs in accounts payable
    
    $
    54,300
    
    
    $
    
    
    
    $
    54,300Offering costs offset against member contributions
    
    $
    8,745
    
    
    $
    
    
    
    $
    8,745
  6




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VICTORY RENEWABLE FUELS, LLC
 
   1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Nature of Business
  Fiscal Reporting Period
  Accounting Estimates
  Cash and Equivalents
  Deferred Offering Costs
  Property and Equipment
   Grants
  7




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VICTORY RENEWABLE FUELS, LLC
    Income Taxes
  Organizational and Start Up Costs
  Fair Value of Financial Instruments
  Recently Issued Accounting Pronouncements
  2. INCOME TAXES
  November 30,
    
    
    November 30,2006
    
    
    2005Financial statement basis of assets
    
    $
    793,719
    
    
    $
    32,162Plus: organization and start-up costs
    
    
    546,232
    
    
    
    94,574Income tax basis of assets
    
    $
    1,339,951
    
    
    $
    126,736
  3. MEMBERS EQUITY
  Private Placement Memorandum
  8




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VICTORY RENEWABLE FUELS, LLC
    Registration Statement
   4. GRANTS
    5. COMMITMENTS AND CONTINGENCIES
 Consulting Contracts
   9




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VICTORY RENEWABLE FUELS, LLC
   Plant Construction
     Land option
  10




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EXHIBITS.
  Exhibit
    
    
    
    Method ofNo.
    
    Description
    
    Filing31.1
    
    Certificate Pursuant to 17 CFR 240.13(a)-14(a)
    
    *31.2
    
    Certificate Pursuant to 17 CFR 240.13(a)-14(a)
    
    *32.1
    
    Certificate Pursuant to 18 U.S.C. Section 1350
    
    *32.2
    
    Certificate Pursuant to 18 U.S.C. Section 1350
    
    *
 
 (*) Filed herewith. 11




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SIGNATURES
  VICTORY RENEWABLE FUELS, LLCDate: March 22, 2007
    
    
    
    /s/ Allen L. BlauwetAllen L. BlauwetChairman, President and Director(Principal Executive Officer)Date: March 22, 2007
    
    
    
    /s/ Roger S. KnoblockRoger L. KnoblockVice Chairman, Treasurer and Director(Principal Financial and Accounting Officer)
  Date: March 22, 2007
    
    
    
    /s/ Allen L. BlauwetAllen L. BlauwetChairman, President and Director(Principal Executive Officer)Date: March 22, 2007
    
    
    
    /s/ Roger L. KnoblockRoger L. KnoblockVice Chairman, Treasurer and Director(Principal Financial and Accounting Officer)Date: March 22, 2007
    
    
    
    /s/ Lance T. BoerLance T. BoerSecretary and DirectorDate: March 22, 2007
    
    
    
    /s/ Clarence BoerClarence BoerDirectorDate: March 22, 2007
    
    
    
    /s/ Kenneth CampbellKenneth CampbellDirectorDate: March 22, 2007
    
    
    
    /s/ Larry Den HerderLarry Den HerderDirectorDate: March 22, 2007
    
    
    
    /s/ Terry KnoblockTerry KnoblockDirectorDate: March 22, 2007
    
    
    
    /s/ Bob Moser, Jr.Bob Moser, Jr.DirectorDate: March 22, 2007
    
    
    
    /s/ Greg PopkesGreg PopkesDirector
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Date: March 22, 2007
    
    
    
    /s/ Mike SnydersMike SyndersDirectorDate: March 22, 2007
    
    
    
    /s/ Gary Vander PlaatsGary Vander PlaatsDirector
 13