10Q highlights for newbies ...
In the coming weeks I am looking for the company to specifically inform the shareholders of the action steps taken to fulfill the business "Plan of Operations" through the end of May 2011. This will come in the form of a conference call conducted by the CEO Kim K. Thompson.
This "Plan of Operations" provided in the 10Q answers the questions about our continuing relationship with the University of Notre Dame and the University of Wyoming but does not mention the development of an independent laboratory owned or operated by Kraig Labs. I am pleased to see that we entered into a five year R & D consulting agreement with Sigma Aldrich.
I am also pleased with our financial condition and the frugal and practical manner that our CEO uses the shares to forward the progress of the company.
IMHO, we're ready for the CC announcement ...
Red
NOTE 9 SUBSEQUENT EVENTS
Management has evaluated subsequent events through May, 2011, the date which the financial statements were available to be issued.
On April 8, 2011 the Company entered into a five year consulting agreement for research and development. (Sigma Aldrich Zinc Fingers) Pursuant to the terms of the agreement, the Company has to issue within 10 days following the effective date $70,000 worth of stock and pay a license fee of $30,000. The Company has a five year right to exercise the option for a commercial medical license or th commercial textile license. The fee for the first license is a $289,000 and shares equivalent in value to $675,000. The fee for a second commercial license is $75,000 and shares equivalent in value to $175,000. All payments are non-refundable. On April 18, 2011, the Company issued 1,029,412 shares of stock with a fair value of $70,000 based on the average trading price over a 30 day period.
On April 1, 2011 the Company issued 1,000,000 shares with a fair value of $70,000 ($0.07/share) to a consultant for research and development services.
On April 25, 2011 the Company issued 1,420,455 shares of common stock for $100,000 ($0.070/share).
On May 11, 2011, the Company issued 19,767,985 shares in connection with the cashless exercise of the 20,000,000 warrants.
Plan of Operations
During the next twelve months, we expect to take the following steps in connection with the further development of our business and the implementation of our plan of operations:
» We expect to spend approximately $35,000 per quarter through September 2011 on collaborative research and development of high strength polymers at the University of Notre Dame. We believe that this research is essential to our product development. If our financing will allow, management will give strong consideration to accelerating the pace of spending on research and development within the University of Notre Dame’s laboratories.
» We expect to spend approximately $13,700 on collaborative research and development of high strength polymers and spider silk protein at the University of Wyoming over the next twelve months. We believe that this research is important to our product development. This level of research spending at the university is also a requirement of our licensing agreement with the university. If our financing will allow, management will give strong consideration to accelerating the pace of spending on research and development within the University of Wyoming’s laboratories.
» We will actively consider pursuing collaborative research opportunities with other university laboratories in the area of high strength polymers. If our financing will allow, management will give strong consideration to increasing the depth of our research to include polymer production technologies that are closely related to our core research
» We will consider buying an established revenue producing company which is operating in the textile arena, in order to broaden our financial base and facilitate the commercialization of our products. We expect to use a combination of stock and cash for any such purchase.
» We will also actively consider pursuing collaborative research opportunities with both private and university laboratories in areas of research which overlap the company’s existing research and development. One such potential area for collaborative research which the company is considering is protein expression platforms. If our financing will allow, management will give strong consideration to increasing the breadth of our research to include protein expression platform technologies.
» We plan to actively pursue collaborative product testing, manufacturing and marketing opportunities with companies in the textile industry.
