Replies to post #199328 on Kraig Biocraft Laboratories Inc (KBLB)

[WebSlinger]

<< from what i can tell, kim is diluting $100k worth of stock, "loaning" the money to kblb and then kblb is required to pay back that $100k plus 3% interest... >>

It's actually much worse than that.

First, Kim (the magical CEO) earns 10% COMPOUNDED INTEREST on his "deferred" salary.

OMG!!!! 10% COMPOUNDED per year!!!

Yes, you read that correctly. He gets interest on his deferred salary at the rate of 10%. COMPOUNDED! Mortgage rates are about 3%. Car loans are about 2-4%. But he is getting 10%! COMPOUNDED!

That is absolute highway robbery. He has complete disdain for his shareholders.

"Between December 31, 2016 and December 31, 2019, Kim Thompson, our CEO accrued $2,535,203 of unpaid salary, which represents a portion of the annual compensation owed to him pursuant to the terms of his employment agreements during such time period. As of December 31, 2019, there was $1,240,218 in accrued interest on Mr. Thompson’s accrued salary; such interest accrues at the rate of 10% per annum. As a result of these accruals, as of December 31, 2019, we owed Mr. Thompson $3,775,421 in salary and interest related payments."

https://www.sec.gov/Archives/edgar/data/1413119/000149315220004918/form10-k.htm

For some reason, he left that little morsel out of the S-1. Could it be that he is trying to hide that from the NASDAQ???

Second, he then dilutes stock and gives it to himself as payment on the loans (in lieu of his salary). He could have just paid himself in stock instead of cash (for his salary). But he is greedy and wants more. So he tacks on 10% COMPOUNDED interest. Because of those shenanigans, he has cost shareholders another $1.2 million over the last few years.

Third, he takes a portion of that money and then loans it back to the company (to keep the lights on) and accrues interest (AGAIN) of 3% COMPOUNDED (on top of the 10%). He is making interest on top of interest!

Fourth, he doesn't report any of the dilution (as required by the SEC).

Fifth, he doesn't report his sales of the stock (as required by the SEC).

Unbelievable!!!

KBLB is basically Kim's personal bank account. He prints money (via dilution of shares) whenever he wants.

Talk about a Ponzi scheme...