Kraig Biocraft Laboratories Inc (KBLB)

[DimesForShares]

Frustration with the uplist plan

Obviously I was not at the shareholders meeting. DD's account of the uplist plan seems to be consistent with what others have shared. There is only one problem: it's incomplete.

The instructions for uplisting are available directly from NASDAQ. There are three levels of NASDAQ listing. The one with the least stringent requirements is the NASDAQ Capital Market. On page 10 of the document, the criteria are listed for different standards. All of them require a shareholder equity of at least $4 million.

As I understand it, the shareholder equity is the total assets - total liabilities. From our latest 10-Q, we have $1,114,089 in assets and $4,764,452 in total liabilities. That means we have a shareholder equity of -$3,650,363. More than 3.5 million in the red.

This means that we have to gain $7.5 million in assets before we can uplist. We cannot use borrowed money to bridge that gap because the loan (added to assets) is offset by a liability (the amount owed on the loan).

From what I can tell, Kim Thomnpson did not talk about his plan to increase the company assets by $7.5 million. Of course, if we sold a bunch of silk and made a profit, that would increase our assets. If someone gave KBLB a gift, that would increase assets. If he sells $7.5 million in shares, that would increase assets. (Do I hear Mojo whispering 'dilution' in the background?)

A question for all who attended: Did Thompson speak more about how he planned to increase our assets by at least $7.5 million before he attempts to uplist?