x
|
Annual
report pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934 for the fiscal year ended December 31,
2008.
|
¨
|
Transition
report pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934 for the transition period
from to .
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Delaware
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20-0431897
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(State
or other jurisdiction of
incorporation
or organization)
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(I.R.S.
Employer
Identification
No.)
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Units
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NYSE
Arca, Inc.
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(Title
of each class)
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(Name
of exchange on which registered)
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Large
accelerated filer ¨
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Accelerated
filer ¨
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|
Non-accelerated
filer x
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Smaller
reporting company ¨
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(Do
not check if a smaller reporting company)
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Page
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||
Part
II.
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||
Item
8. Financial Statements and Supplementary Data.
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1
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Part
IV.
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||
Item
15. Exhibits and Financial Statement Schedules.
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19
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Signatures
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20
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Page
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Report
of Independent Registered Public Accounting Firm
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2
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Consolidated
Statements of Financial Condition As Restated
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3
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Consolidated
Statements of Operations and Other Comprehensive Loss As
Restated
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4
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Consolidated
Statements of Changes in Member’s Equity (Deficit) As
Restated
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5
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Consolidated
Statements of Cash Flows As Restated
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6
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Notes
to Consolidated Financial Statements As Restated
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7
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2008
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2007
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2006
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||||||||||
As
Restated (Note 8)
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||||||||||||
ASSETS
|
|
|||||||||||
Cash
|
$ | 125,815 | $ | 53,910 | $ | 88,345 | ||||||
Management
fees receivable
|
893,111 | 500,128 | 332,736 | |||||||||
Investments
(Note 2)
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34,579 | 123,398 | - | |||||||||
Deferred
offering costs (Note 3)
|
352,794 | 187,056 | 311,262 | |||||||||
Due
from parent (Note 4)
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- | - | 295,754 | |||||||||
Other
assets
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1,960 | 2,940 | - | |||||||||
Total
assets
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$ | 1,408,259 | $ | 867,432 | $ | 1,028,097 | ||||||
LIABILITIES AND MEMBER'S EQUITY
(DEFICIT)
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||||||||||||
LIABILITIES:
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||||||||||||
Accounts
payable
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$ | 624,688 | $ | 1,035,444 | $ | 1,127,208 | ||||||
Due
to parent (Note 4)
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- | 109,539 | - | |||||||||
Income
taxes payable
|
285,400 | 30,902 | - | |||||||||
Expense
waiver payable (Note 3)
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311,038 | - | - | |||||||||
Minority
interest: Limited Partner in United States
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||||||||||||
Natural
Gas Fund, LP
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- | - | 980 | |||||||||
Minority
interest: Limited Partner in United States
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||||||||||||
Heating
Oil Fund, LP
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- | 980 | - | |||||||||
Minority
interest: Limited Partner in United States
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||||||||||||
Gasoline
Fund, LP
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- | 980 | - | |||||||||
Minority
interest: Limited Partner in United States
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||||||||||||
12
Month Natural Gas Fund, LP
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980 | 980 | - | |||||||||
Minority
interest: Limited Partner in United States
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||||||||||||
Short
Oil Fund, LP
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980 | - | - | |||||||||
Total
liabilities
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1,223,086 | 1,178,825 | 1,128,188 | |||||||||
COMMITMENTS AND CONTINGENCIES
(Notes 5 and 7)
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||||||||||||
MEMBER'S EQUITY
(DEFICIT) (Note 6)
|
185,173 | (311,393 | ) | (100,091 | ) | |||||||
Total
liabilities and member's equity
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$ | 1,408,259 | $ | 867,432 | $ | 1,028,097 |
2008
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2007
|
2006
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||||||||||
As
Restated (Note 8)
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||||||||||||
REVENUE:
|
||||||||||||
Management
fees
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$ | 8,631,883 | $ | 4,871,265 | $ | 1,460,448 | ||||||
EXPENSES:
|
||||||||||||
Distribution
fees
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1,026,625 | 650,829 | 325,320 | |||||||||
Administration
fees
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665,696 | 434,905 | 163,029 | |||||||||
Transfer
agent fees
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208,274 | 134,758 | 65,191 | |||||||||
Custodial
fees
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118,453 | 80,184 | 61,460 | |||||||||
Professional
fees
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1,159,643 | 1,337,170 | 1,128,367 | |||||||||
Salaries,
wages and benefits
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1,389,888 | 690,488 | 208,228 | |||||||||
Expense
waiver expense
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311,038 | - | - | |||||||||
Advertising
and promotion
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79,202 | 49,370 | 38,337 | |||||||||
General
and administrative
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488,477 | 356,460 | 329,305 | |||||||||
Total
expenses
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5,447,296 | 3,734,164 | 2,319,237 | |||||||||
OTHER
INCOME:
|
||||||||||||
Dividend
income
|
14 | 425 | - | |||||||||
Realized
gains on investments
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- | 85,415 | - | |||||||||
Total
other income
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14 | 85,840 | - | |||||||||
NET
INCOME (LOSS) BEFORE INCOME TAXES
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3,184,601 | 1,222,941 | (858,789 | ) | ||||||||
PROVISION
FOR INCOME TAXES:
|
||||||||||||
Income
tax expense (benefit) (Note 4)
|
1,260,622 | 436,195 | (295,754 | ) | ||||||||
NET
INCOME (LOSS)
|
1,923,979 | 786,746 | (563,035 | ) | ||||||||
OTHER
COMPREHENSIVE LOSS:
|
||||||||||||
Unrealized
loss on investments, net of income taxes (Note 2)
|
(88,820 | ) | (433,189 | ) | - | |||||||
COMPREHENSIVE
INCOME (LOSS)
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$ | 1,835,159 | $ | 353,557 | $ | (563,035 | ) |
BALANCE, December 31,
2005
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$ | 388,924 | ||
Adjustment
to opening members' equity (Note 8)
|
- | |||
BALANCE, December 31,
2005, as restated
|
388,924 | |||
Contributions
|
74,020 | |||
Net
loss
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(563,035 | ) | ||
BALANCE, December 31,
2006, as restated
|
(100,091 | ) | ||
Contributions
(Note 3)
|
1,280,906 | |||
Distributions
|
(343,769 | ) | ||
Other
comprehensive loss (Note 6)
|
(433,189 | ) | ||
Offering
costs (Note 2)
|
(1,501,996 | ) | ||
Net
income
|
786,746 | |||
BALANCE, December 31,
2007, as restated
|
(311,393 | ) | ||
Other
comprehensive loss (Note 6)
|
(88,820 | ) | ||
Offering
costs (Note 2)
|
(553,756 | ) | ||
Distributions
|
(784,837 | ) | ||
Net
income
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1,923,979 | |||
BALANCE, December 31,
2008, as restated
|
$ | 185,173 |
2008
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2007
|
2006
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||||||||||
As
Restated (Note 8)
|
||||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||
Net
income (loss)
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$ | 1,923,979 | $ | 786,746 | $ | (563,035 | ) | |||||
Adjustments
to reconcile net income to net cash used
in operating activities:
|
||||||||||||
Realized
gain from sales of securities
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- | (85,415 | ) | - | ||||||||
Increase
in management fees receivable
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(392,983 | ) | (167,392 | ) | (332,736 | ) | ||||||
Increase
in deferred offering costs
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(719,495 | ) | (897,197 | ) | (311,262 | ) | ||||||
(Increase)
decrease in due from parent
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- | 295,754 | (295,754 | ) | ||||||||
(Increase)
decrease in other assets
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980 | (2,940 | ) | - | ||||||||
Increase
(decrease) in due to parent
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(109,539 | ) | 109,539 | - | ||||||||
Increase
in income taxes payable
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254,498 | 30,902 | - | |||||||||
Increase
in expense waiver payable
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311,038 | - | - | |||||||||
Increase
(decrease) in accounts payable
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(410,756 | ) | (572,357 | ) | 1,124,296 | |||||||
Net
cash provided by (used in) operating activities
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857,722 | (502,360 | ) | (378,491 | ) | |||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
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||||||||||||
Proceeds
from sales of securities
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- | 464,985 | - | |||||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||
Capital
contributions
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- | - | 74,020 | |||||||||
Distributions
|
(784,837 | ) | - | - | ||||||||
Increase
(decrease):
|
||||||||||||
Minority
interest in United States Oil Fund, LP
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- | - | (980 | ) | ||||||||
Minority
interest in United States Natural Gas Fund, LP
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- | - | 980 | |||||||||
Minority
interest in United States Heating Oil Fund, LP
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(980 | ) | 980 | - | ||||||||
Minority
interest in United States Gasoline Fund, LP
|
(980 | ) | 980 | - | ||||||||
Minority
interest in United States Short Oil Fund, LP
|
980 | - | - | |||||||||
Minority
interest in United States 12 Month Natural
Gas Fund, LP
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- | 980 | - | |||||||||
Net
cash provided by (used in) financing activities
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(785,817 | ) | 2,940 | 74,020 | ||||||||
NET
INCREASE (DECREASE) IN CASH
|
71,905 | (34,435 | ) | (304,471 | ) | |||||||
CASH, beginning of
year
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53,910 | 88,345 | 392,816 | |||||||||
CASH, end of
year
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$ | 125,815 | $ | 53,910 | $ | 88,345 | ||||||
SUPPLEMENTAL
DISCLOSURE OF NON-CASH
|
||||||||||||
INVESTING
AND FINANCING ACTIVITIES:
|
||||||||||||
Investments
and offering costs contributed by member, net of liabilities assumed
(Note 3)
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$ | - | $ | 800,313 | $ | - | ||||||
Distribution
of investments to parent
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$ | - | $ | 343,769 | $ | - |
At December 31, 2008:
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Total
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Level I
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Level II
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Level III
|
||||||||||||
Investments
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$ | 34,579 | $ | 34,579 | $ | - | $ | - |
At December 31, 2007:
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Total
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Level I
|
Level II
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Level III
|
||||||||||||
Investments
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$ | 123,398 | $ | 123,398 | $ | - | $ | - |
December
31,
|
||||||||||||
2008
|
2007
|
2006
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||||||||||
Deferred
tax liabilities
|
$ | - | $ | - | $ | - | ||||||
Deferred
tax assets:
|
||||||||||||
Unrealized
losses on investments
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$ | 224,000 | $ | 186,000 | $ | - | ||||||
Valuation
allowance for deferred tax asset
|
(224,000 | ) | (186,000 | ) | - | |||||||
$ | - | $ | - | $ | - |
Balance, December 31,
2006
|
$ | - | ||
Unrealized
holding losses on investments
|
(433,189 | ) | ||
Balance, December 31,
2007
|
(433,189 | ) | ||
Unrealized
holding losses on investments
|
(88,820 | ) | ||
Balance, December 31,
2008
|
$ | (522,009 | ) |
December 31, 2008
|
December 31, 2007
|
December 31, 2006
|
||||||||||||||||||||||||||||||||||
As
|
As
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As
|
||||||||||||||||||||||||||||||||||
Previously
|
Previously
|
Previously
|
||||||||||||||||||||||||||||||||||
Reported
|
Adjustment
|
As Restated
|
Reported
|
Adjustment
|
As Restated
|
Reported
|
Adjustment
|
As Restated
|
||||||||||||||||||||||||||||
Consolidated
Balance Sheet Data:
|
||||||||||||||||||||||||||||||||||||
Assets:
|
||||||||||||||||||||||||||||||||||||
Cash
|
$ | 125,815 | $ | - | $ | 125,815 | $ | 53,910 | $ | - | $ | 53,910 | $ | 88,345 | $ | - | $ | 88,345 | ||||||||||||||||||
Receivables
|
893,111 | - | 893,111 | 500,128 | - | 500,128 | 332,736 | - | 332,736 | |||||||||||||||||||||||||||
Investments
|
34,579 | - | 34,579 | 123,398 | - | 123,398 | - | - | - | |||||||||||||||||||||||||||
Deferred
offering costs
|
352,794 | - | 352,794 | 187,056 | - | 187,056 | 311,262 | - | 311,262 | |||||||||||||||||||||||||||
Due
from parent
|
- | - | - | - | - | - | - | 295,754 | 295,754 | |||||||||||||||||||||||||||
Other
assets
|
1,960 | - | 1,960 | 2,940 | - | 2,940 | - | - | - | |||||||||||||||||||||||||||
$ | 1,408,259 | $ | 1,408,259 | $ | 867,432 | $ | 867,432 | $ | 732,343 | $ | 1,028,097 | |||||||||||||||||||||||||
Liabilities:
|
||||||||||||||||||||||||||||||||||||
Accounts
payable and accrued expenses
|
$ | 935,726 | $ | - | $ | 935,726 | $ | 1,035,444 | $ | - | $ | 1,035,444 | $ | 1,127,208 | $ | - | $ | 1,127,208 | ||||||||||||||||||
Due
to parent
|
- | - | - | - | 109,539 | 109,539 | - | - | - | |||||||||||||||||||||||||||
Income
taxes payable
|
- | 285,400 | 285,400 | - | 30,902 | 30,902 | - | - | - | |||||||||||||||||||||||||||
Minority
interest
|
1,960 | - | 1,960 | 2,940 | - | 2,940 | 980 | - | 980 | |||||||||||||||||||||||||||
937,686 | 1,223,086 | 1,038,384 | 1,178,825 | 1,128,188 | 1,128,188 | |||||||||||||||||||||||||||||||
Member's
equity (deficit)
|
470,573 | (285,400 | ) | 185,173 | (170,952 | ) | (140,441 | ) | (311,393 | ) | (395,845 | ) | 295,754 | (100,091 | ) | |||||||||||||||||||||
$ | 1,408,259 | $ | 1,408,259 | $ | 867,432 | $ | 867,432 | $ | 732,343 | $ | 1,028,097 |
Year
Ended December 31, 2008
|
Year
Ended December 31, 2007
|
Year
Ended December 31, 2006
|
||||||||||||||||||||||||||||||||||
As
|
As
|
As
|
||||||||||||||||||||||||||||||||||
Previously
|
Previously
|
Previously
|
||||||||||||||||||||||||||||||||||
Reported
|
Adjustment
|
As
Restated
|
Reported
|
Adjustment
|
As
Restated
|
Reported
|
Adjustment
|
As
Restated
|
||||||||||||||||||||||||||||
Consolidated
Statement of Operations
|
||||||||||||||||||||||||||||||||||||
Data:
|
||||||||||||||||||||||||||||||||||||
Revenue
|
$ | 8,631,883 | $ | - | $ | 8,631,883 | $ | 4,871,265 | $ | - | $ | 4,871,265 | $ | 1,460,448 | $ | - | $ | 1,460,448 | ||||||||||||||||||
Operating
expenses
|
(5,478,198 | ) | 30,902 | (5,447,296 | ) | (3,734,164 | ) | - | (3,734,164 | ) | (2,319,237 | ) | - | (2,319,237 | ) | |||||||||||||||||||||
Other
income
|
14 | - | 14 | 85,840 | - | 85,840 | - | - | - | |||||||||||||||||||||||||||
Provision
for income taxes
|
- | (1,260,622 | ) | (1,260,622 | ) | - | (436,195 | ) | (436,195 | ) | - | 295,754 | 295,754 | |||||||||||||||||||||||
Net
income (loss)
|
3,153,699 | 1,923,979 | 1,222,941 | 786,746 | (858,789 | ) | (563,035 | ) | ||||||||||||||||||||||||||||
Other
comprehensive loss
|
(88,820 | ) | - | (88,820 | ) | (433,189 | ) | - | (433,189 | ) | - | - | - | |||||||||||||||||||||||
Comprehensive
income (loss)
|
$ | 3,064,879 | $ | 1,835,159 | $ | 789,752 | $ | 353,557 | $ | (858,789 | ) | $ | (563,035 | ) | ||||||||||||||||||||||
Consolidated
Statement of Cash Flows
|
||||||||||||||||||||||||||||||||||||
Data:
|
||||||||||||||||||||||||||||||||||||
Cash
flows from operating activities:
|
||||||||||||||||||||||||||||||||||||
Net
income (loss)
|
$ | 3,153,699 | $ | (1,229,720 | ) | $ | 1,923,979 | $ | 789,752 | $ | (436,195 | ) | $ | 353,557 | $ | (858,789 | ) | $ | 295,754 | $ | (563,035 | ) | ||||||||||||||
Non-cash
adjustments
|
- | - | - |