Kraig Biocraft Laboratories Inc (KBLB)

[want2retire]

The problem with that "premise" is that early shareholders get diluted into a black hole over time. For example, when the last 2 rounds of dilution happened, the stock price went from 17 cents to 3 cents. A similar effect will occur this time around as well.

Kim is talking about securing a bridge agreement of some sort. Said nothing about dilution. Just more scare tactics. Maybe a future customer would be willing to put up $5M as a loan that could then be converted to pay for their first spider silk delivery received? Maybe that loan/funding would secure them some sort of exclusivity period? Lots of ways to structure the financing needed to expand and start fulfilling requests, signing contracts, etc.

And even if the company starts to sell a luxury $1000 t-shirt every so often, it won't come close to making up for the millions of dollars that the company spends every year. And that amount of net loss will just continue to increase as they hire sales staff, customer service staff, pay a company to reel the fiber, pay a company to create the yarn, pay a company to make the t-shirts, etc.

Kim outlined the cost structure for Kraig spider silk and how it pales in comparison to that of the goo crew. He also clearly stated their current annual costs are $1.4M. Again, a flair for the dramatic with "millions of dollars per year being spent."
The goo crew may have needed to charge $1000 for a t shirt to recoup costs. What if Kraig is able to sell a spider silk blend tee for half that price but at significantly higher margins due to lower costs/inputs? Doesn't take too much imagination to see how effective that might be.

Spider silk has been sought for decades. Kraig is NOW in mass production. What will companies and consumers be willing to pay for a material many thought was impossible to produce in commercial quantities? The line out the door of material requests Kim is dealing with seems to indicate demand will not be an issue. Don't see anyway to predict today Kraig will struggle to be profitable when their cost structure is many multiples better than any "competing" technology.

Kim is in the driver's seat. He has the pole position. First to mass production. Best cost structure.

Could be rough seas ahead for those continuing to hope for KBLB to fail. Sorry to disappoint.

Tick tock...
W2R