CAVEAT EMPTOR- BUYER BEWARE
For those that are new to KBLB...
The recent S-1 shows that about 125-150 MILLION shares will be diluted, and a reverse split of 30:1 or 40:1 will be coming soon. https://www.sec.gov/Archives/edgar/data/1413119/000149315220010402/forms-1.htm
KBLB has NO SALES
KBLB has NO REVENUE
KBLB has NO CUSTOMERS
KBLB has NO CONTRACTS
KBLB has NO COMMERCIAL PRODUCTION
KBLB has NO PATENTS
KBLB is about $6 million in debt (yet somehow the CEO pays himself $1/2 million per year)
KBLB has never proven that they can attain commercial production. They even admit as much in the S-1:
"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."
- In 2015, KBLB announced that they were ready for "scale & sale". RESULT: We are all still waiting 5 years later.
- On April 2017, KBLB was supposed to make their 1st delivery to the Army for shootpacks (plural). RESULT: Nothing was delivered at that time. KBLB blamed the reeler. The Army graciously extended the due date to December 2017.
- In December 2017, KBLB was (again) supposed to make their 1st delivery to the Army for shootpacks. RESULT: Nothing was delivered at that time either. KBLB eventually blamed Warwick Mills for not being able to handle the "small quantity". They had to send the fiber to another weaver. Months later, KBLB (via Ben) said that the job had been bumped due to a rush order. Finally, in August 2018 (16 months later), they finally delivered something. Unfortunately, it wasn't shootpacks (plural). It wasn't even ONE shootpack. KBLB just delivered about a dozen fabric swatches.
- In August 2018, KBLB was supposed to make their 2nd delivery to the Army for 100 kilos of custom spidersilk. RESULT: They never delivered anything. Kim (the CEO) asked the Army for an extension until December 2018 and it was denied. Kim asked again (pretty please) for an extension until April 2019 and it was again denied. The contract ended. The Army walked away. KBLB lost about $1/2 million in funds for failing to deliver.
- In January 2020, KBLB was supposed to make their 1st commercial delivery from Prodigy, their subsidiary in Vietnam. RESULT: Nothing was ever delivered. KBLB blamed the cold winter weather and the lack of being able to obtain "quality mulberry". But it seems that "quality mulberry" was a code word for mulberry sprayed with insecticide (which killed all of the worms).
Their history is filled with forward-looking statements that are meant to pump the share price, but almost nothing is ever delivered...
Don't buy the hype (or the snake oil).