Kraig Biocraft Laboratories Inc (KBLB)

[jealmc79]

It seems pretty obvious that since the inventory showed up after GSS produced some silk and then the prepaid inventory was written off after GSS was shutdown that it is associated with the silk that is or isn’t being produced by them.

KBLB is buying the spidersilk back from their contractors after it is produced and not all of it will be going to SpydaSilk. Until that silk is paid for by somebody else, SpydaSilk, Kings, or whomever, it would be considered inventory. Prepaying the contractors for that silk inventory may be needed to convince them to switch from mundane silk where they don’t get that benefit. It probably also lowers the cost of what KBLB would be expected to pay the contractors for their service. But that only works if you give the contractors something to grow, hence, the write off.