You seem to be suggesting that KBLB would end up with too many silkworms if they bred homozygous parent lines. That’s simply not an issue.
The need for extra space to dry and prepare silkworms, along with the indication they need more space for an egg hatchery, strongly suggests they will be using 3rd party silkworm farms to raise silk.
KBLB will have a limited quantity of mulberry and space to rear silkworms during the rainy season. They can choose to rear parental lines or they can cross-breed and rear Gen-1 hybrids for silk or a combination of both.
In all cases, they are limited by the constraints of the space they have and the mulberry they can store. Suppose they can raise 100,000 eggs per cycle in this space. (I have no idea what their actual capacity is, but it is helpful to illustrate the principle with a concrete example.)
If they raise 100,000 homozygous eggs and the multiplication factor is 10, that leaves them with a million parent eggs. They can’t raise all 1 million in the next cycle. So they put 900,000 eggs on ice and breed another 100,000 homozygous eggs. At the end of the 2-month period, they would have 1.9 million parent-line eggs. Huge pool of parent-line eggs.
A different mix: suppose they raise 100,000 homozygous eggs (multiplication factor of 10). Out of the million moths, they cross-breed 900,000 and put those eggs on ice. The remaining 100,000 are bred homozygous. At the end of the second cycle, they once again cross-breed 900,000 and line-breed 100,000. Now they have 1.8 million heterozygous eggs for production and a million eggs for the next round.
If the amplification factor is larger, it just means more eggs are kept in reserve. Ditto for a larger pool of silkworms that can be reared during the rainy season.
You also ask why they haven’t already shipped out silk and gotten started fabricating products. Great question. None of us have more than opinions to offer on the subject. We simply don’t know the reason.
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