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<< "Do you invest based on past, present and/or future expectations?"
Yes. What has happened in the past is an incredible indicator of what may happen in the future. What is currently happening is also valuable...future expectations are built off of the past performance and present actions. >>
EXACTLY!
FOUNDER FRAUD CASES ARE STACKING UP, EVEN AS FEDERAL PROSECUTORS WARN ABOUT ‘FAKE IT TILL YOU MAKE IT’ CULTURE
<< Will KBLB appear in similar news in the future? >>
January 22, 2024
https://finance.yahoo.com/news/founder-fraud-cases-stacking-even-125207020.html
This morning, at a courthouse in Fort Worth, Tex., Slync founder Christopher Kirchner is going on trial to face charges of fraud and money laundering.
A jury will decide whether Kirchner misappropriated at least $25 million of capital he had raised to scale his supply chain software company. Prosecutors allege he moved the capital to personal bank accounts and spent it on a “lavish” lifestyle, including a $16 million private jet, a luxury suite at a Dallas stadium, and, at one point a bid for a soccer club—all while he struggled to meet payroll. If convicted, Kirchner could go to prison for the rest of his life. (Kirchner’s attorney declined to comment and Slync did not respond before press time)
If you’ve followed along, these founder fraud trials have really stacked up over the last couple years. Here’s a quick highlight reel of key dates from cases I’ve followed:
—May 2023: Frank founder Charlie Javice charged with $175 million fraud
—May 2023: Theranos founder Elizabeth Holmes started her 11-year prison sentence
—November 2023: FTX founder Sam Bankman-Fried convicted of multiple counts of fraud
—December 2023: Nikola founder Trevor Milton sentenced to four years in prison for fraud
—January 2024: A sentencing hearing is expected for founder Manish Lachwani, who pled guilty to fraud last year
—May 2024: Trial date set for Ozy Media founder Carlos Watson’s fraud and identity theft trial
You get the picture. It’s—well—a lot. It seems that part of the job of being a venture capitalist in 2023 may just be organizing speaking arrangements at court. A list of potential witnesses prosecutors may call from Kirchner’s trial includes names of investors who led Slync’s investments from Goldman Sachs and Blumberg Capital. You’ll recall that, just a few months ago, Paradigm cofounder Matt Huang took the stand during the high-profile SBF case.
Federal regulators are making one thing crystal clear with all these cases: Don’t lie to your investors.
The aforementioned list showcases some of the more brazen examples of founder deceit (or alleged deceit for those who have yet to stand trial). But what’s telling is how some of these founders accused of fraud have responded to the allegations—effectively arguing that exaggerations of financials or “puffery” are an integral part of the startup game and merely the price you pay for innovation. Last week, when I was writing about the latest update to Carlos Watson’s impending trial—where prosecutors are attempting to revoke his bail—I spent some time reading through the motion he filed last year to dismiss his indictment. Here is a part of it:
Take, for instance, claims that Mr. Watson or his colleagues lied about the identities of potential lead investors when soliciting investments from sophisticated counterparties in early private funding rounds, or that he and other Ozy employees provided pro forma financial information that turned out to be inaccurate in hindsight. It is not criminal to hedge one’s bargaining position or to provide optimistic projections about the future that, with the benefit of hindsight, turn out not to materialize…
Early stage venture capital investors take big risks on new, unproven ideas knowing full well that most of these bets will not pay off but in the hope that a few of those gambles will yield massive returns. For this reason, the reasonable early stage venture investor has a significantly different sense of what is material than other types of investors. When read in the correct context—the world of venture funders—the alleged discrepancies in pro forma accounting and puffery are immaterial as a matter of law and therefore are an insufficient basis for alleging a crime.
Watson isn’t the first one to run with this kind of argument. You may recall Elizabeth Holmes’ trial, where she argued from the stand that she didn’t mean to mislead investors—she was simply being overly optimistic.
"I wanted to talk about what this company could do a year from now, five years from now, ten years from now. They weren't interested in today, or tomorrow or next month. They were interested in what kind of change we could make," Holmes offered on the stand. In opening statements for his trial, Sam Bankman-Fried’s attorney said that “working at a startup is like building a plane as you’re flying it.”
Historically, these kinds of arguments haven’t proven very successful before a jury. Watson has yet to be tried, but prosecutors have alleged that he has done much more than “hedge” his bargaining position: He is facing accusations of dramatically inflating Ozy’s revenue figures to investors, furnishing fake contracts, and for playing a role in the impersonation of media executives, among other things. (Watson and his lawyer didn’t return my request for comment)
Federal prosecutors have made it clear that they want these cases to serve as warnings to the rest of the industry. After Nikola’s founder was sentenced to prison, U.S. Attorney Damian Williams published a statement saying: “Today’s sentence should be a warning to start-up founders and corporate executives everywhere—‘fake it till you make it’ is not an excuse for fraud, and if you mislead your investors, you will pay a stiff price.”
But the healthy number of founders fighting serious criminal fraud charges right now suggests that the warning hasn’t quite stuck.
And there we have it!
One of the lead rah rah pumpers has spoken.
More BS spewed to add to the 12 years of BS already pumped and pumped and pumped.
LOL
<< This is a continuation of the PRs that started late in '23. >>
WRONG AGAIN!
This is a continuation of the PRs that started in 2009 (over 15 years ago):
https://www.kraiglabs.com/kraig-biocraft-laboratories-inc-announces-the-successful-activation-of-fluorescence-marker-genes-which-it-incorporated-into-its-spider-silk-dna-insertion-packets/
<< what we didn't know and what others had guessed is they are not in production now >>
I knew that they weren't in commercial production and have been saying that for a LONG time.
I was correct once again, and have been correct about almost everything I have said for years and years.
This stock is a POS, and the CEO is a grade A Douchebag.
<< Thompson has been saying this for the past 8 to 10 years… you really need to go back and read all the BS PR’s he has spewed.. >>
EXACTLY!
It is just more of the same old BS that the Douchebag CEO has been spewing for over 14 years.
<< I'm trying to be realistic. >>
No, you are NOT.
You are just trying to pump this POS stock so you can hopefully reduce some of your losses.
<< B-man says he is holding for $10 and he's wrong? >>
Is the share price $10 a share?
NO!
Is it even close? Is it $8 a share? $6 a share? $4 a share?
NO, NO, NO, & NO!
Then the rotten banana is completely wrong.
It is only 3 cents and change. And that is even too much to pay for this POS penny stock.
The defective banana has been wrong every day over the past 11+ years.
Anyone trying to defend that statement makes them look like an idiot.
Are you paid by KBLB (either directly or indirectly)?
Anyone can see that you are a rah rah pumper.
Anyone can see that you have been posting BS for over 11 years.
Here is just one ridiculous post from 2012 (over 11 years ago):
December 21, 2012 -
I am holding for ten ($10.00) dollars.....
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=82707099
<< BANANA BOB lies ALL THE TIME and makes up his own facts FOR THE LAST 15 YEARS. DONT JUST BELIEVE ME, CHECK OUT HIS POSTS FOR YOURSELF. Newbies are better off ignoring BANANA BOB! HES BOILER ROOM THROUGH AND THROUGH. The real LIES are in the PR's the company puts out. LIES OF OMISSION. >>
100% CORRECT!
<< No matter what the company does, he dumps on them. >>
Because the company doesn't do anything of worth. They have no commercial product (just a bunch of samples), and they have no revenue (even the supposed $250K that they were supposed to receive from MtheMovement). And the company has produced 100s of PRs that are filled with BS that mostly never comes true. At this point, they are a full-on scam. They have spent about $50 MILLION of investors money with nothing of worth to show for it. And they will be diluting again by the end of the year. Count on it.
EVERYBODY is better off ignoring the banana moron. He spews BS rah rah pumps constantly. For over 10 years! And he has been WRONG during that ENTIRE TIME. Meanwhile I have been correct on almost everything that I have said since I have been on this board.
No matter what the company does, he pumps this POS penny stock. His opinions are WORTHLESS!
There is no way that ANYONE will receive an award from the AF RFI.
Here is a good explanation of the RFI process from AI:
A company cannot directly be awarded money from an RFI (Request for Information) issued by the US Government. RFIs are not funding opportunities; they are information-gathering tools used by government agencies to:
- Gather insights and market research: Learn about available products, services, and capabilities from potential vendors.
- Identify qualified vendors: Gauge the interest and suitability of companies for potential future solicitations or contracts.
- Refine requirements: Inform the development of Request for Proposals (RFPs) or other procurement documents based on feedback from industry.
Here's how the process typically works:
1. The government agency releases an RFI: This document outlines the information the agency seeks, including the type of products or services, desired capabilities, and any specific questions they have.
2. Companies respond to the RFI: Interested companies submit responses addressing the agency's questions and showcasing their relevant expertise and solutions.
3. The government agency reviews the responses: They analyze the information provided to gain insights and potentially identify promising vendors for future opportunities.
4. No funding is awarded at this stage: The RFI itself does not offer any financial reward. However, participating companies can increase their visibility to the government and potentially improve their chances of being considered for future contracts.
<< Their desire for Spider Silk is at an all-time high. >>
***NEWS FLASH***
KBLB doesn't make spider silk.
They make silkworm silk mixed in with a VERY small percentage (< 10%) of spider DNA, or silkworm-ish silk.
Once again, KBLB is lying through their teeth and mischaracterizing their (supposed) products.
Would you say that is FALSE ADVERTISING or BAIT-AND-SWITCH? (Or maybe BOTH?)
You are a rah rah pumping idiot.
<< Where did the Army “mark” KBLB as unreliable? >>
First, KBLB never fulfilled either of the Army's requests. In other words, the Army NEVER received anything that they ordered.
Second, the Army awarded about $1 million and then later took back about $1/2 million (or about 50%) of the contract award after they didn't receive what they wanted.
If you don't think that the military tracks these things, then you are a fool.
<< The AF will be awarded by June 2024. >>
That is complete BS.
The AF posted an RFI (Request for Information), not an RFP (Request for Proposal). The RFI MIGHT be used to create an RFP (at which point KBLB would need to fill out paperwork to apply), but there is no guarantee that an RFP. That will all take a LONG time. And since KBLB has been marked as an unreliable source by the Army (since KBLB never fulfilled either of the Army's requests), KBLB will probably not get anything at all.
<< there is no reason to pretend they are not in competition and there is no reason to pretend that KBLB is not behind Spiber >>
Exactly.
The reason that the rah rah pumpers pretend that they are not competitors is because Spiber is crushing KBLB.
Spiber has products, customers, and revenue.
KBLB has forward-looking PRs.
It isn't even close.
*** SELLS HEAVILY OUTWEIGH BUYS ***
377K SELLS
73K buys
****NEWS: KBLB DOWN 5% ***
ON IT'S WAY TO 2 CENTS....
You are the one that is desperate.
You've already lost a bunch of money on this POS stock and are worried that you will lose it all....
<< you were clamoring for proof of product and pictures...>>
WRONG AGAIN!
<< but now you want to call it a pump... >>
Because that is EXACTLY what it was.
<< KBL does indeed have a valuable innovative fiber platform. >>
And what is so innovative about a platform that creates a practically worthless product?
<< and the amendments are only to keep the filing active?... >>
WRONG AGAIN!
Amendments are for making an amendment to the filing. Imagine that! Anyone that compares one amendment to another, will find that there have been changes made.
***NEWBIES***
Run like hell from this ticker, and never look back....
For those that are new here, KBLB has almost 100 TRILLION authorized shares.
Yes, you read that correctly. That isn't a mistake. That bears repeating...
KBLB has almost 100 TRILLION authorized shares.
https://www.otcmarkets.com/stock/KBLB/security
<< as if stocks going up and down everyday is unheard of... >>
KBLB has mostly gone down over the past 5 years. Any upticks have been followed by more selling, time and time again.
And once the next round of dilution is announced, the share price will be sub-penny.
Here are the facts:
1 month - down 14%
1 year - down 13%
3 years - down 70%
5 years - down 35%
<< when was that S1 originally produced? >>
It doesn't matter when it was "originally" produced. What matters are the most recent amendments. And that is what an S-1/A is (A stands for Amendment). And ALL of the amendments state that Bolt, Spiber, and AMSilk are competitors to KBLB.
If some of you rah rah pumpers believe that the information is incorrect, then just call the Douchebag CEO on his cellphone and ask him to "amend" it.
<< and are compensated to do so. >>
Only fools believe that someone would be compensated to post the truth about KBLB (with an occasional exaggeration thrown in - after all, this is the KBLB forum). I do all of this pro-bono as a hobby that brings great enjoyment. :)
LOL
You know what is embarrasing? The fact that the share price is down 10% today (so far)....
Most of the fools that bought into the latest pump are now in the red (or soon to be in the red)....
*****MORE DILUTION COMING "SOON” (UPDATED)*****
This is from KBLB’s most recent SEC S-1/A filing (filed on 22 Nov 2023):
"At September 30, 2023, we had $2,894,555 of cash and cash equivalents on hand. These funds are insufficient to complete our business plan and as a consequence, we will need to seek additional funds, primarily through the issuance of debt or equity securities for cash to operate our business."
https://www.sec.gov/ix?doc=/Archives/edgar/data/1413119/000149315223040575/form10-q.htm
<< And has he gotten “in trouble”? >>
Yes, he has gotten in trouble previously with OTC Markets.
And there is probably an active investigation with the SEC at this time as well.
<< But Kim doesn’t bother to remove or refine that S-1A… he just keeps amending it to keep it alive… >>
First, that is a retarded response. The Douchebag CEO was a lawyer. He most definitely scours documents to make sure that he can't get in trouble. In addition, he has lawyers, accountants, and auditors that double and triple-check the documents. If he didn't feel that they were competitors, he would have removed that statement a long time ago. Try again....
Second, to "refine" a document is the same thing as "amending" a document. You are saying that he doesn't refine the document, but he amends it. That is a non-sensical statement that is contradictory. LOL.
<< I'm sure they keep the "competition" thing alive because it's better to say you have them then you don't. >>
WRONG AGAIN!
It would be much better to say that you are making a unique product that doesn't have any competition (which is exactly what all of the rah rah pumpers are claiming).
<< an old chart with a bunch of red Xs on KBLB’s website >>
There is nothing "old" about that information.
This is from an SEC form S-1/A filed by KBLB last November (just 2 months ago):
"Bolt Threads, Inc. based in California and Spiber Inc. based in Japan are competitors which have raised the largest amounts of investment capital to date. We also compete with AMSilk, which is based in Germany."
<< that is a long list of PR”s that never happened..was it intentional by Thompson or not ..I know what I believe, how about you >>
If something happens once, or even a few times, then it could be a mistake (or as some might claim - irrational exhuberance). But the fact that this has happened time after time, year after year, for over a decade indicates that it is very intentional.
<< KBL is in the process of active negotiations with public and private sector actors. >>
First, KBLB is always manipulating words to make things sound more impressive than they actually are. A "negotiation" is simply two parties coming to terms over something .... anything. KBLB could be simply trying to buy supplies (like paper for the printer) from another party and is therefore in "active negotiations".
Second, using the word "actors" seems suspicious. An "actor" is someone that is pretending to be ----someone else. Are they negotiating with someone that is pretending to be someone else?
<< India is providing sericulture expertise. >>
Wrong. KBLB never said that they are working with the country India. All they said is that they are working with contractors "from India".
"November 27, 2023
KBLB .... announced its continued investment into building its world-class team with the addition of leading sericulture consultants from India."
December 22, 2023
"Kraig Labs has now engaged leading experts from India ...."
"Our team of consultants from India ...."
"With our new friends from India...."
***KBLB ADMITS THEY HAVE NOT DEMONSTRATED "COMMERCIAL VIABILITY"***
These are KBLB's own words from the most recent S-1A (#15 from 22 Nov 2023):
"Our business is based on scientific research which has not demonstrated commercial viability and makes our business highly risky.
We are engaging in research and development of new recombinant silk fibers. Due to the speculative nature of this scientific research, our chances of success are uncertain and we cannot guarantee that we will succeed in developing new fibers that deliver performance results to meet customer requirements or obtain commercial acceptance. An investment in us, therefore, is highly speculative and risky."
https://www.sec.gov/ix?doc=/Archives/edgar/data/1413119/000149315222015052/forms-1a.htm
*****KBLB - FAILURE AFTER FAILURE*****
NEW: 2023: Air Force Contract is a Slam Dunk - FAILED
NEW: 2023: Kings / MtheMovement to Purchase Up To $12 Million in Spidersilk - FAILED
NEW: 2023: Commercial production - FAILED
2022: Commercial production - FAILED
2022: Kings / MtheMovement to Purchase Up To $5 Million in Spidersilk - FAILED
2022: Website & apparel launch - FAILED
2021: Kings / MtheMovement to Purchase Up To $3 Million in Spidersilk - FAILED
NEW: 2021: "The Company ... has now produced enough silk to create a number of different fabric blends." - FAILED
2021: "Spydasilk should hit the ground running" - FAILED
2021: $250K prepayment from Kings / MtheMovement- FAILED
2019-2020: Uplist to NASDAQ - FAILED
2019: Commercial production - FAILED
2019: Appoint Independent Board of Directors - FAILED
2019: Polartec MOU - FAILED
2018: "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" - FAILED
2018: ““We are busy preparing silkworm eggs for shipment and putting the team in place at Prodigy to hit the ground running.” - FAILED
2016-2018: Army Contract - FAILED
NEW: 2016: “the Company is on schedule to produce all of the recombinant spider silk necessary to fulfill its contract with the US Government on time” - FAILED
2017: Mulberry facility in Texas - FAILED
2014-2015: "R&D .... is no longer necessary" - FAILED
2014-2015: “Scale and sale” - FAILED
2013-2015: Commercialization of Big Red - FAILED
2013-2014: Warwick Mills Partnership - FAILED
2013: SSM Industries Partnership - FAILED
And those are just a few of the MANY, MANY FAILURES that KBLB has had over the years….