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Re: bananarama post# 51111

Monday, 01/07/2013 2:07:18 PM

Monday, January 07, 2013 2:07:18 PM

Post# of 278418
Says who? Who says that kblb will not need to put money up? A lot of ways this can go. If you think xyz silk corp is going to take all of the risk with their capital, then kblb will receive a portion of the revenues. This will take some time to get to market and this is assuming the end product doesnt need tons of research and development.

How much is ND entitled to? 2 percent. They did the work, but their capital was not and is not at risk.

In the case of military protective gear, it's not who's product is better, it's about who is who.

So under the assumption of kblb taking a fraction of the revenues, kblb will need revs to be great enough to pay current operating costs of around 1 mil per year, assuming it doesn't go up.......

This is highly complex and always it is oversimplified to the point where it is unrecognizible. Companies typically spend the most when they are building up sales. It costs them money to sell you a product. Had they not, costs would be far lower, but failure is assured. Hopefully you can gauge the trajectory if kblb sells some silk.

If its a military contractor, then be prepared for years of no end product sales with the hope of getting government contracts to buy the product en masse.
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