Kraig Biocraft Laboratories Inc (KBLB)

[DimesForShares]

Mojo, the section of the 10-K is entitled “Current assets.” If KBLB didn’t consider the silk to be a part of their ‘inventory’ but it had been shipped somewhere else for processing, it would have been another kind of asset that needed to be reported on the 10-K. It’s something of value owned by the company — an asset of one sort or another. Should have been reported on the 10-K.

This could be a matter of sloppy accounting. (Wouldn’t be the first mistake KBLB made on a quarterly/annual report.) Perhaps it came in so late they decided to ignore the asset — maybe the paperwork hadn’t been finalized by the end of the year.

In that case, at some time prior to the December crop, KBLB received $304 worth of silk. A smaller crop from a previous generation, perhaps.

I don’t think we can resolve this issue. I believe the hank of silk that Thompson was holding in the December photo was worth more than $304. So I guess I’m chalking this one up to an accounting issue instead of attempting to diminish the quantity of silk he was holding and/or devalue the price per kilo.

We’ll learn more later, I hope.