1332341--3/30/2007--US_BioEnergy

related topics

{gas, price, oil}

{control, financial, internal}

{debt, indebtedness, cash}

{stock, price, operating}

{cost, regulation, environmental}

{regulation, change, law}

{property, intellectual, protect}

{acquisition, growth, future}

{personnel, key, retain}

{financial, litigation, operation}

{loss, insurance, financial}

{cost, operation, labor}

{stock, price, share}

We generally do not have long-term sales, input or throughput contracts, which makes our business highly dependent on commodity prices. These prices are subject to significant volatility and uncertainty, so our results could fluctuate significantly. The use and demand for ethanol and its supply are highly dependent on various federal and state legislation and regulation, and any changes in legislation or regulation could cause the demand for ethanol to decline or its supply to increase, which could have a material adverse effect on our business, results of operations and financial condition. As more ethanol plants are built, ethanol production will increase and, if demand does not sufficiently increase, the price of ethanol and distillers grains may decrease. We face intense competition from competing ethanol and other fuel additive producers. We have a limited operating history and a history of losses, and our business may not be as successful as we envision. Potential future acquisitions could be difficult to find and integrate, divert the attention of key personnel, disrupt our business, dilute shareholder value and adversely affect our financial results. Growth in the sale and distribution of ethanol is dependent on the changes in and expansion of related infrastructure which may not occur on a timely basis, if at all, and our operations could be adversely affected by infrastructure disruptions. We engage in hedging transactions which involve risks that can harm our business. Operational difficulties at our plants could negatively impact our sales volumes and could cause us to incur substantial losses. We may be adversely affected by environmental, health and safety laws, regulations and liabilities. We do not own or control some of the assets we depend on to operate our business. As we expand our ethanol production business, we may become limited in our ability to provide services to third-party ethanol producers. Disruptions to infrastructure, or in the supply of fuel, natural gas or water, could materially and adversely affect our business. Our historical financial information is not comparable to our current financial condition and results of operations. Our management s time and attention will be divided among our ethanol plants, and our ethanol plants will be part of one common management strategy. Competition for qualified personnel in the ethanol industry is intense and we may not be able to hire and retain qualified personnel to operate our ethanol plants. Technological advances could significantly decrease the cost of producing ethanol or result in the production of higher-quality ethanol, and if we are unable to adopt or incorporate technological advances into our operations, our proposed ethanol plants could become uncompetitive or obsolete. Our existing debt financing agreements contain and our future debt financing agreements may contain restrictive covenants that limit distributions and impose restrictions on the operation of our business. Our failure, or the failure of any of our subsidiaries, to comply with applicable debt financing covenants and agreements could have a material adverse effect on our business, results of operations and financial condition. Our management and auditors have identified material weaknesses in the design or operation of our internal controls that, if not properly remediated, could result in material misstatements in our financial statements in future periods. As a result of our IPO in December 2006, we are subject to financial reporting and other requirements for which our accounting, internal audit and other management systems and resources may not be adequately prepared. We are a holding company, and there are limitations on our ability to receive distributions from our subsidiaries. Certain of our shareholders exert significant influence over us. Their interests may not coincide with our or the interests of our stockholders, and they may make decisions with which we or our stockholders may disagree. The market price of our common stock may be volatile. CAUTIONARY STATEMENT FOR PURPOSES OF THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

Full 10-K form ▸

1332341--3/30/2007--US_BioEnergy_CORP