Hi Trainer2,
I would be wary of what some construe as "facts" on this message board, especially concerning the Texas property, which has been discussed on this board many times. There is no proof that the company is "paying for Kims mortgage". We have no idea if Kim even took out a loan for the property, or if he payed in full. Using that statement is meant to provoke fear and distrust.
But here's what we do know:
1) The company pays about $900 a month to lease about 15 acres for the cultivation of mulberry. Mulberry, you know, the most important raw material for the production of silk (currently our only product, so it's pretty important). This company has always been run on a tight budget, so using what little cash we had on a down payment wouldn't have been prudent at the time. Not to mention, the company would be tied to a long mortgage for a piece of property that they might outgrow in the next couple years, although they also said the property has room for tens of thousands of more trees if needed. Leasing this property was the smart approach, IMO. And its better to lease from Kim, as apposed to some random landlord who could decide they want to start using their own property themselves and not renew the lease, which would screw the company out of their primary raw material.
2) Artificial/processed silkworm chow is expensive. The company stated that having their own source of mulberry from the Texas property would save them about 30% on raw materials for their R&D. A fresh mulberry diet is also responsible for increased mechanical properties for our silk worms.
3) The climate in Michigan is not conducive for harvesting mulberry leaves year around. The property in Texas is in area that is a hotbed for farming. It has fertile soil, proper humidity, plenty of rain, relatively inexpensive, large amounts of experienced agricultural labor and is adequately protected from hurricanes.
4) The company DOES plan on shipping their silkworms to Texas. Due to Lebbe's excellent DD, he was able to intercept an Import and Interstate Permit application that Kraig Labs filed with the US Department of Agriculture. It was for the interstate transfer of Kraigs GMO silkworms with phenotypes of increased strength and elasticity. The location of origin was Michigan, and the destination was Texas. This was in January 2019.
I don't now how much Kim actually paid for the property, but I know the 2018 Tax assessment on zillow for the property was $111,000. I know where I live the tax assessments are much less than half of the actual value of the property. But regardless, we pay $900 for peace of mind. I'm fine with that
