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Zenaku, it has to have been recorded as revenue, which it never was or it has to be on the balance sheet as unearned revenue. I see the $500k from your link in 2017. But, it is no where in the financial statements for either year 2017 or 2018.
No. It’s not in the financial statements through 12/31/2018. I don’t see it anywhere.
Mojo, if it was paid prior to 2019, it would show as unearned revenue on the balance sheet. Since it is not there, then, it would have to be paid in Q1 2019. If so, it would not need to be disclosed in 2018’s 10K. The only way to know Zenaku is right is for the company to tell us or wait for the 2019 Q1 10-Q to come out.
As a company earns the revenue, it reduces the balance in the unearned revenue account (with a debit) and increases the balance in the revenue account (with a credit). The unearned revenue account is usually classified as a current liability on the balance sheet.
Perhaps, silence for a reason. ... imagine just for a second what the PR for just out the Vietnam Sericulture Research Centre (VSRC) ... no issue with pilot ... production facility go to ... time to scale and sale will do!
:)
Stephen
Hi Dragon,
It’s an interesting question. First, I am not sure where you would have found a very secure 4% yield for the last 10 years. I didn’t bother to look at rates in 2009 but assume they were low or zero after the crash. But, let’s say he found one. So, that would be on a $100k investment. He would have made $48,024. That’s actually generous as Banana has accumulated shares over this whole time. So, let’s say Banana’s overall cost basis in KBLB is $.05. I would assume much lower. Let’s go with that. So, with 2m shares estimated but probably close, Banana currently has a value of in KBLB of $147,800 or an unrealized profit of $47,800. So, pretty much the same. However, I would assume his cost basis is a good bit lower. And, with having only put some of this money to working recently, Banana is far ahead of the 4% yield. ... Even better than this though let’s play this game at the end of the year or when the buyout comes. I think the results will be substantially better for Banana.
https://www.dollartimes.com/savings/100000
Interest Calculator for $100,000
How much will an investment of $100,000 be worth in the future?
Initial Investment $100,000
Interest Rate 4%
At the end of 10 years, your savings will have grown to $148,024.
You will have earned in $48,024 in interest.
Also neat to see that I am already in the top 100!
Cool! So, you are making a bid to catch a Truth and Banana. :)
Banana’s program... the embedded put option. :)
Hey, Mojo. If you didn’t post it would be a really slow board. Thanks! ... you have more than 10,000 posts?
How do you imagine that move? A straight rocket shot, stair steps, nice smooth steep up and to the right, or some pull backs? If pull backs, where would you see them?
What’s the odds of news tomorrow since April 1st had to be avoided? :)
Agreed. I bought my last little share lot. Was hoping for small pull back this morning off all the noise over the weekend. That account is LT ... locked and loaded. I have cash in my account for trading KBLB. ... but, if no pull back I’m a little over my full load for the move up. So, can have a little more wiggle room to trade / sell, derisk on the way up. Of course some really great news may have me chase a little if I can buy below .09 that morning whenever that news comes. :)
Price action says not... interesting... positive day on light volume to start
And, when those PRs start to come, I will use the baseball analogy of the great strike out pitcher mowing down the batters each inning... “and he strikes out the side, folks. No runs, no hits, no errors, and nobody left on base as we move to the top of the 2nd!” And so on every quarterly report there after until they call the game due to the run rule (I.e. Banana’s buyout!).
This is game, set, and match for Longs! ... to use a tennis expression
“The ability to rapidly scale up this newly announced material, from initial testing to pilot scale production, is a major differentiator in our approach, which utilizes silkworms and the existing global silk infrastructure,” said COO, Jon Rice. “The current global infrastructure, equipment and skilled labor, is able to produce more than 150,000 metric tons of conventional silk per year. Our recombinant spider silk silkworm technology is a direct drop-in replacement for traditional silkworms and allows us to move quickly, with minimal investment, to bring new products to market.”
There is no issue. You will see. Let’s talk 12/31/2019. :)
Confirmed. Thanks.
Would love to here from Yankee... he seemed to know than the rest of us here.
Missed that. Good catch. So, the more important bullet is in for the first time.
Let’s try again. This bullet has been in no prior 10Ks. This is for Longs only! :)
Plan of Operations
- We plan to complete renovations of our Quang Nam, Vietnam factory and begin commercial scale production of our recombinant spider silk in Vietnam according to our investment and enterprise registration certificates.
Revenue and cash are two different things. You are obviously not an accountant... have you even ever taken a Financial Accounting class?
Mojo, anything I say about the Army isn’t going to help you because you aren’t willing to look at the recent articles and what simple logic would tell you.
As for the 10k, the Revenue is a recording of what has been earned. The fact of $401k earned in 2018 is a good thing. It tells you that is the progress made. The cash received could have all been prepaid or paid at delivery or billed out/paid monthly. What the revenue tells you is that they were about 1/2 way to fulfilling the order at 12/31/18. Also, the revenue tells you that they intend to complete and deliver the whole project assuming they haven’t already delivered in stages. Further, if the whole thing was scrapped, we would have heard about it. The auditors wouldn’t let them record the revenue as they would have no chance to collect or if they had collected anything they’d have to return the funds. ... if we don’t get a PR(s) updating progress before the Q1 10-Q then look at the 10Q to see if there are revenues in Q1. That will tell if and how much progress is being made on fulfilling the order. .... again it has nothing to do with the timing of cash received or not received. This is accrual based accounting. ... not cash based.
Mojo, Col317 is right. You worry about nothing. I take it you are in a profitable position with your lots. I will take them all off your hands on Monday if you like. Then, you can move on to something better in your opinion. If this is your thinking about management why bother any more.
Excellent post, Col317! Yes, the Army wants DS2.0! And, when people understand that Vietnam is happening too THIS year then how can you not be enthusiastic about this hidden gem (but soon to be not so hidden)! :)
Excerpt from 1/7/2019 PR:
“The dream of commercializing our powerful technology is now materializing. This marks a dramatic leap forward in Kraig Labs’ business plan for commercial production and mass marketing of cost effective recombinant spider silk, and becomes the foundation for an entirely new industry,” said, COO, Jon Rice. “To our long-term shareholders, who have taken this journey with us, as well as our team in the US and Vietnam, who have worked tirelessly to make this dream a reality, I cannot thank you enough. As we start the New Year, full of new opportunity, we truly have something incredible to celebrate.”
The Company has been working with leading sericulture experts, biotechnology institutions, and governmental agencies, in Vietnam, to further boost the silk industry with our revolutionary technology. Kraig Labs is currently finalizing renovation plans for a ~46,000 square foot production factory in Quang Nam Province, Vietnam.
“Our plan has always been to bring our technology to the silk producing regions of the world for rapid scale-up,” said, CEO and Founder, Kim Thompson. “Today we see the fruits of that effort. With its massive silk infrastructure and production capacity, Vietnam is an ideal location to launch our technology scale-up. Congratulations to our team and shareholders, as we prepare for the realization of large scale production.”
Peach, this may put you in Truth’s Curb Your Enthusiasm camp. That’s okay. I will not curb my enthusiasm. I said 2019 and I stand by that. The ramp up starts this year! :)
Agreed. Good post.
Rayo, your question is a good one. The timeline it seems is never fast enough for us. You can see it now though but it isn’t tangible in the 2018 10K. I have said 2019. And, I stick by it. The 10Qs and PRs this year will reveal it. That is why I have said things will be much clearer on 12/31/2019 and let’s discuss then ... also I do think PRs will follow this that are a little more reassuring. The PRs earlier this month were helpful. It’s good to know that you have the confidence and backing of probably Kenneth Le in Vietnam and Notre Dame.
Mojo, I have a couple other thoughts as to the 10K.
First, it is really great to know how little as been spent to get to this point. If you look at other biotechs, they will completely wreck long term shareholders to finally get to production. The share dilution can be horrific. See AEZS. It’s time now for the ball to get rolling so Kim can obtain some legit bigger financing in order expand rapidly. I think Kim structured everything so costs could be as little as needed to get here. Yes, we can argue that he should have moved more quickly but I think it was necessary for them to get into Vietnam. Choosing Vietnam is another cost conscious decision. He probably didn’t have the network set up in other countries. Kenneth Le has obviously been a huge benefit there. So, to have reached this point in this cost conscious way, it will be much easier to get to profitability. Top line numbers will start to soar.
Yes, this CEO that you say is inept will make you rich soon. Of course, I know you won’t attribute it to him. So Jon Rice and Kenneth Le will work to make us all rich soon.
All the best! :)
Mojo, you make some really good points!
As for the revenue, this is what I read:
Cost-plus-fixed-fee contracts—Revenue is recognized on cost-plus-fixed-fee contracts with the U.S. Government on the basis of partial performance equal to costs incurred plus an estimate of applicable fees earned as the Company becomes contractually entitled to reimbursement of costs and the applicable fees . Invoicing for costs and applicable fees are reported to the U.S. Government on a monthly basis and invoices are typically paid within 30 days.
So, I think this is saying that KBLB is almost 1/2 way to fulfilling the order at 12/31/18 ending ($401,620/$921,130). I would assume they will complete and deliver. As to the status of the Army, I would assume they are paying their invoices that KBLB send them on a monthly basis. And the article that I came out recently mentioned that the Army was still working with KBLB.
https://www.army-technology.com/features/us-army-new-soldier-protection-system/
“Whitehead notes that the developers are also looking at the use of next-generation Kevlar and even biologically engineered spider silk. The US Army is currently working with Kraig Biocraft Laboratories to develop a strain of genetically engineered silkworms for protective textiles.”
The article is dated 3/25/2019. I don’t think the quote would be dated much earlier.
So, I think it’s okay. But, the way the 10K is written I can see concerns might arise.
Hi Rayo, I’m sure you are working your way through posts. But, I addressed this clearly and succinctly in #150910. It’s an update to accounting standards. I am quite sure it has always been KBLB’s 10Ks from the very beginning. ... only in all the prior 10Ks the auditors addressed it ... now management has to address it. Nothing interesting or uncommon here.
Hey Dragon, I am a happy buyer at those levels. Cleared out all my tradeable high .06s and .07s. I’ll take the price whichever way it goes. Lots of cash on the ready for this one! Typical ;)
Truth, are you suggesting he do that? ... I would think that’s something you would do. :)
No. I confirmed it. (#150910) EOD
Well, you can say what you will. The facts are facts. I confirmed it.
No, Paul. I could think some other things to say but I will refrain. See below... EOD
Anyway, ignorance is a good way to misframe the discussion.
The reason it is higher up is because the new accounting regulations REQUIRES management to discuss it. This is for every applicable company (as previously discussed) now not just KBLB. Previously, it was noted by the auditors further down in the 10k.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
versus here in 2017 10K
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
No you are wrong.
“Under previous guidance, the rules regarding going concern disclosures were included in the auditing literature, not in the accounting rules. The auditor still has an important role to play in auditing going concern disclosures under the new standard, but the FASB standard now places the disclosure responsibility on management. Auditors will now review these disclosures along with other evidence as part of their audits.”
I’m not going to dig further. Not worth my time. ... so anyway the point is that it common. EOD.
I would think this is due to the new audit standards:
https://blog.aicpa.org/2017/03/4-things-to-know-about-the-new-going-concern-auditing-standard.html#sthash.KkkSjaI5.dpbs