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Re: arachnodude post# 207674

Sunday, 11/29/2020 9:24:17 AM

Sunday, November 29, 2020 9:24:17 AM

Post# of 276110
“As far as not knowing how many eggs they start with, it doesn't matter. We don't know what contract or contracts the company is producing for. Those contracts will contain the quantities requested.”

I’m not sure you understand how silk farming works, nor how scaling a new business happens.

First, I doubt that KBLB will share contract information with shareholders. Thus even when sales happen, the contracts will remain a secret.

Next, you appear to portray the situation as if the customers are in charge of the ‘quantities requested.’ But companies will have to work with KBLB to determine what quantities the company can produce. If a company wants 40 metric tons in the next 6 months, KBLB can’t produce that much. If they want 80 metric tons by the end of 2021, KBLB can’t produce that much.

KBLB’s production is limited by: 1) the number of eggs sent over; 2) their ability to rear silkworms off-season; 3) the amount of mulberry they can obtain; 4) the size of the facility at Prodigy.

Knowing how many eggs were sent over helps investors to understand how quickly they can ramp up production, assuming ample supplies and space. The capacity of Prodigy has been estimated at 40 metric tons per year, once they reach full capacity.

For the moment, these limitations, not the contracts the company has, will govern production at Prodigy.
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