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You stated that KBLB "sent the Army shootpacks". I don't see anything in those documents that you provided that says so. Those documents basically talk about fiber / thread being created and sent to Warwick Mills. Warwick Mills is still trying to create the shootpacks. So the status hasn't changed since the middle of last year.
About a week ago, Kim stated:
"Regarding your ongoing question about shoot packs. As described in our public statements we have shipped silk to the contractor who is preparing the shootpacks. We are awaiting confirmation of their handling of the material and will issue a status update when we have information."
(from https://investorshub.advfn.com/boards/read_msg.aspx?message_id=137620740)
In short, shootpacks have not been sent to the Army yet. Warwick Mills has the fiber and they are trying to create the shootpacks. For some reason, this is taking MUCH longer than expected.
So this is now the 2nd time that KBLB has missed the deadline for the Army contract. I would imagine that there might be a penalty involved.
<< Turnaround to create a specified fiber around 3 months.... >>
I believe that it has been around 6 months, since they received the "new contract" around July of last year.
In their announcement, KBLB stated that the contract would last about 12 months. So they are about half-way through the contract:
<< If you want professional, go with companies that have secretaries to make the CEO's and exec's look good. By and large they are paid good money to do that. >>
Kim could easily hire an administrative assistant. All he has to do is lower his salary from $300,000 to $260,000 and use the extra $40,000 to hire one. But I am pretty sure he isn't interested in lowering his salary.
<< The shoot packs I think may have been delivered maybe late December... >>
The shootpacks still haven't been delivered. Kim confirmed that they were still with Warwick Mills about a week ago. It is obvious that there is a problem, since Warwick received the material over 5 months ago (yes, you read that correct - 5 months). Who knows if the shootpacks will ever be delivered.
<< How much of that money from the army is left or to be more clear when can we anticipate on running out of funds from that? >>
According to the most recent 10Q, KBLB spends about a quarter of a million dollars per month ($250,000). The entire Army contract is worth about $1 million. Therefore, the Army contract can only sustain KBLB for about 4 months. The money is mostly gone by now.
<< We increased production? >>
LOL. Production! They can't even produce enough material to make a few sample shootpacks given 2 years. What makes you think that they can produce in large quantities?
<< Somebody just bought 400 000 shares...... >>
You do realize that a transaction consists of two parts: a buy AND a sell.
So while there might have been a purchase of 400,000 shares. There was also a sale of 400,000 shares.
In the long run, one side will be right and the other side will be wrong.
<< the Army finished one contract 1M USD >>
The 1st contract is FAR from finished.
The shootpacks still haven't been delivered.
And the "new and improved" spidersilk is still at the beginning stages of development (after all they JUST hired the new guy that is supposed to develop them).
I don't think that the Army will create a new contract until the deliverables for the 1st contract have been completed to their satisfaction (which won't be for quite a while).
<< you did not provide a contract >>
Neither did you. LOL.
<< Prove it otherwise I will consider it hearsay. >>
I provided you evidence.
You gave me a contract from 2013. I gave you a more recent contract from 2016 where it stated that Warwick was contracted to "produce ballistic shoot packs".
I also gave you a very recent quote (within the last month) from Kim himself where he described Warwick as a "contractor who is preparing the shoot packs". That is hardly what someone would call a partner.
If you want to ignore the evidence, that is up to you.
<< I posted it... >>
As I suspected, the contract you were talking about was from 2013 (almost 5 years ago). That is ancient history.
The Dec 2016 PR that I posted is much more recent and states that a new contract with Warwick was created for them to create shootpacks (as I had previously stated).
Also, as has been pointed out by igotthemojo, Kim recently referred to Warwick as a "contractor". Here is the exact quote from Kim himself:
"As described in our public statements we have shipped silk to the contractor who is preparing the shoot packs."
<< They have a contract . You should read it. I have always thought it gave Warwick too much, but if you read it you will see Warwick stands to really profit from mass production. The contract terms are available , perhaps you should read them. >>
Please provide a link, otherwise I will just chalk this up to hearsay.
This is a direct quote from a KBLB PR dated 19 Dec 2016:
"The Company will contract Warwick Mills to produce ballistic shoot packs, for delivery to the US Army, based on the Company’s Dragon Silk technology. "
That quote is immediately followed by:
"The Company expected to make final delivery to the US Army in the second quarter of 2017."
2nd quarter 2017 ended on 30 Jun 2017. I guessed they missed that delivery as well. LOL. And they STILL haven't made the delivery. LOL.
Have they ever made ANY delivery?
http://www.kraiglabs.com/kraig-biocraft-laboratories-completes-first-phase-of-dragon-silk-fiber-production-for-its-military-contract/
If you are talking about an announcement from way back in 2013, that contract has long since faded into the annals of history.
<< KBLB saying so is proof. >>
LOL. I would NEVER take what a business person says as FACT. Especially, from a penny stock. As they say, "talk is cheap".
<< Do you think Warwick would play along with such a lie? >>
Warwick is being paid to do a job (take the spidersilk thread that they received and create a shootpack). They could care less about whether KBLB can mass produce or not.
<< Do you think Notre Dame would go along with such a lie? >>
Notre Dame and KBLB are no longer "best friends". It is possible that Notre Dame got sick of all of the promises that KBLB spews and they knew a little something about whether the promises were actually realistic.
<< We are well beyond knowing it can be mass produced. >>
There is absolutely no proof that spider silk can be produced in large quantities by KBLB. As a matter of fact, the proof shows the opposite.
Taking 2 years to produce enough material for a few sample shoot packs is actually proving that they CAN'T mass produce. Otherwise, the shoot packs would have been finished a LONG time ago. Think about it... Why did it take 2 years to produce a few sample shoot packs? It is just common sense that they had a hard time producing enough material with the same consistency and quality.
In addition, if they could already produce material in large quantities, then why not just send samples to a variety of companies (clothing, textile, medical, etc) and start selling product? The answer is because they can't.
And the kicker is that we still don't know if they did produce enough material for the shoot packs (since they still haven't been delivered). Maybe KBLB will need another year or two (to produce the material for the shoot packs). LOL.
<< Another possibility is Warwick may be working on combining it with another material to make it stronger and lighter. >>
Sorry, but that isn't "another possibility".
The contract was for shootpacks made from SPIDER SILK. Not spider silk plus something else.
Wasn't the (2nd) deadline for the shoot packs 31 Dec 2017?
Doesn't that mean that KBLB missed the deadline AGAIN?
"Fool me once, shame on you; fool me twice, shame on me"
<< The implementation of the Genetics Import and Genetics Project is not enough to allow the Ministry of Agriculture and Rural Development. >>
Money4Nothing-M4N:
That article is a great find. Thanks for sharing.
Unfortunately, this is a HUGE bombshell (in a bad way) for KBLB.
Google translate gives a slightly different translation for the sentence above.
"The implementation of the project on importing and re-breeding silkworms is not enough legal mechanism for MARD approval."
So, once again, MARD is preventing KBLB from entering Vietnam. It doesn't surprise me at all. I don't think that KBLB will EVER get into Vietnam (no matter how much patience one has), especially now that they are looking for proof from the FDA that genetically modified silkworms will not harm people that eat silkworms.
But you have to love how KBLB twisted the facts and made it seem like approval was eminent, and all they had to do was fill out some forms. LOL.
igotthemojo:
<< ...we were able to know that by the 10q that came out showing $400k instead of $900k... >>
I remember reading that somewhere else as well a while ago, but I just checked the latest 10Qs and don't see the $400,000 listed anywhere.
Do you have a link?
<< What is evidence for two contracts?
WebSlinger, I've seen the contract information for one contract between the Army and KBLB. These things are posted on a government website. Do you have information on a second contract? I've not seen anything to indicate a second contract was set up. >>
I think people get too caught up in the verbiage of 1 contract vs. 2 contracts. It doesn't really matter if there is 1 contract with 2 phases, or 2 contracts with 1 phase. The end result is the same.
What is important are the deliverables.
My understanding is that there was originally just one deliverable but now there are two deliverables:
- The 1st deliverable is shoot packs (which was the "original" contract), which would be used for personal protection in bullet-proof vests. KBLB was given $100,000 for this deliverable over a year ago. They were supposed to deliver early last year, but missed the delivery (by a LONG shot). The Army was gracious enough to extend the delivery date to the end of 2017. Nothing has been delivered as of yet. Last word was that KBLB delivered the material to Warwick Mills around Nov 2017.
- The 2nd deliverable is a "new and improved" spider silk material, which would be used in undergarments. KBLB was given about $920,000 for this deliverable (to be split into multiple payments based on deliveries).
This is from today's PR:
"This second phase of the Company’s contract with the US ARMY, valued at $921,000, began in July of 2017 and is focused exclusively on the development of new spider silk fibers."
http://www.defenseone.com/technology/2017/08/us-army-boosts-spending-genetically-engineered-spider-silk-possible-use-body-armor-soldier-underwear/139923/
http://www.govexec.com/contracting/2017/08/army-boosts-spending-genetically-engineered-spider-silk-body-armor-underwear/140020/
<< If KBLB sent the fibers to Warwick Mills, with a request for initial testing, once the shoot packs were processed, they would most certainly oblige. >>
Normally, you wouldn't want to beta test a product when you are set to deliver it. You would want to beta test a product months in advance. In this case, even more so, since it looks like KBLB had a hard time producing enough material for the deliverable (otherwise they would have delivered a long time ago) and barely had enough material for delivery (let alone for testing the product).
<< I didn't confuse them. Why throw good money after bad? Missed delivery dates means failure.... so send more money? >>
You can't cancel a contract just because you want to. Reasons for cancellation are based upon the deliverable. The deliverable for the 2nd contract is for a "new and improved" spider silk. The government wouldn't be able to cancel the 2nd contract based upon another contract (that has a separate deliverable). Even if KBLB failed on the 1st contract, it really has nothing to do with the 2nd contract.
<< Charlie Howland of Warwick Mills has a testing facility approved by the MILITARY at Warwick Mills... >>
It would be against regulations for Warwick Mills to be involved in two steps of the process. They are already assembling the shootpacks. They wouldn't be allowed to also test their own creation. That would be a conflict of interest. Government regulations require a separate company to do IV&V (independent verification and validation).
<< The Army would most likely not funded the remainder of contract without results. In my opinion. >>
There are 2 separate and independent contracts. The 1st is for shoot packs. The 2nd is for a "new and improved" spider silk. The 2 contracts have separate deliverables. Please don't confuse them.
<< This pr means to me that the shoot packs have been delivered to the Army....good news....now testing can begin smile >>
LOL. Wow! How in the world did you ever read THAT into the PR. Did it also say anything about Vietnam, financing, and the mulberry trees? LOL.
Once again, another PR with nothing new in it.
Although I am sure that the fanboys on this board will love it. LOL.
Great post, igotthemojo
<< Kraig Biocraft Laboratories, Inc., the leading developer of spider silk based fibers, today announced that it completed the first batch of Dragon Silk cocoon production for its recently reported military contract. The fibers will soon be headed to a reeling facility to be prepared for delivery to Warwick Mills.
The Company will contract Warwick Mills to produce ballistic shoot packs, for delivery to the US Army, based on the Company’s Dragon Silk technology. The Company expected to make final delivery to the US Army in the second quarter of 2017. >>
Guess when that was written...
That was from a Dec 2016 PR!
And a year later, the Army is still waiting for delivery...
I think it is pretty obvious that there are production and quality issues when they can't even produce a few samples for the Army in over a year.
<< We've had 9 PR's.
5 on the new lab.
1 on Vietnam.
1 on The Army.
1 Spider Sense.
1 Letter to the Shareholders.
Not bad I guess except nothing in any of them did anything to raise the stock price. >>
The reason the stock price hasn't gone up is because none of the PRs announced any major accomplishments. The new lab was just replacing the old (FREE) lab that they had at the university. Vietnam is still in limbo (and probably will be for many months). And it looks like they missed the Army delivery (AGAIN).
<< Didn't he say shootpacks to be shipped in december? >>
Technically, they were shipped. They just never made it to the Army! LOL. "It's in the mail" (as they say). LOL
3 of the craziest bulletproof body armor advances of 2017
http://www.foxnews.com/tech/2017/12/28/3-craziest-bulletproof-body-armor-advances-2017.html
<< We are ever so close on Vietnam, and within several months after we begin business there, things will change in a hurry for KBLB. >>
Sorry, but I have to disagree with you on this one:
- First, I don't think that Vietnam is anywhere near close. They have been trying to get into Vietnam for about 3 years. The latest snafoo is that they haven't even announced that they have filled in the forms and sent them in for approval. It boggles the mind to think that filling out a form would take more than 60 days.
- Second, even if they were close, they haven't proven that they can produce large quantities of product. They had to delay delivery to the Army for about 6 months. And that delivery was only for a few shoot packs. I would hardly qualify that as a "large quantity". And at this point, it seems that the Army delivery is going to be delayed yet AGAIN.
- Third, even if they can produce large quantities of product, there have been no reported deals made with ANY company that wants to buy their product. So why would they produce tons of product? That would be like someone manufacturing an "advanced 8-track tape player" that nobody wants to buy.
I have been long on this stock for a while now, but I am about to cut my losses if nothing happens within the next few weeks.
<< I cant imagine how that is all supposed to be lighter than any other vest.. >>
They say that it weighs about the same as aluminum yet is stronger than steel.
<< Until they publish their ... strength or toughness numbers on their yeast silk, the strands are worthless as goat milk or spaghetti. >>
I think that a lot of KBLB investors don't understand that BT isn't trying to make super-strong silk. They are looking to produce a replacement for man-made fibers (such as polyester, rayon, nylon etc) that don't breakdown and are polluting our landfills and oceans. It looks like they have already succeeded in that endeavour. The only issue at this point for them is to reduce the cost so that it will be competitive with other man-made fibers. If they ever get the costs down, then they will have a product that will be a game-changer for the fashion industry.