Do you trust Kim?
First this statement: "As a result of the Company's changing needs, as it advances toward commercialization of recombinant fibers, and after consulting with our Stephenson representative, we determined that it would be best to engage a new, larger accounting firm that is positioned to address our future needs. Therefore, we are very pleased to engage M&K as our independent auditors."
"We appreciate Stephenson's expert service, which they've proficiently provided for the past two years, and we would like to thank them for their professionalism," said Kraig CEO and founder, Kim K. Thompson.
Now this: On November 6, 2013, the Board of Directors of Kraig Biocraft Laboratories, Inc., a Wyoming corporation (the "Company"), concluded, based on the recommendation of management, that issuance of certain warrants to purchase 10,000,000 shares of common stock (the "Warrants") to a consultant valued at $400,000 using the Black-Scholes option pricing model had not been accounted for in the financial statements of the Company for the fiscal year ended December 31, 2012, which financial statements should therefore be restated to correct this error. Consequently, the condensed financial statements of the Company for the fiscal quarters ended March 31, 2013 and June 30, 2013 included in the Company's quarterly reports on Form 10-Q filed with the Commission on May 15, 2013 and August 19, 2013, respectively, contained the same error. Management has discussed this matter with M&K CPAS, PLLC, the Company's independent registered public accounting firm, and PS Stephenson & Co, P.C., the Company's predecessor independent registered public accounting firm, which had audited the financial statements of the Company for the fiscal year ended December 31, 2012.
So, investors are supposed to believe that Kim was unaware of the error with respect to Ben's warrants? Seriously? What about the previous 20,000,000 shares?
