Replies to post #269131 on Kraig Biocraft Laboratories Inc (KBLB)

[DimesForShares]

I couldn’t find specific information on the number of employees on the payroll at KBLB in this form, but I may have overlooked it.

One statement of note: “During the three months ended September 30, 2023, we incurred $39,129 of research and development expenses. During the three months ended September 30, 2022, we incurred $62,118 of research and development expenses. This was a decrease of $22,989 or 37.01% in 2023 compared with the same period in 2022. This increase was due to an increase in research spending.”

As far as I can tell, the $40,000 spent in the last three months includes all of the expenditures for personnel and any supplies needed to keep growing and testing silkworms. That is about $13,500/month. This does not look like many high-paid employees. Maybe two at most, plus a couple of part timers to make silkworm chow and clean out silkworm poop.

The Notre Dame people were hired in October and their salaries will not be included until the next report (EOY 2023). But the two sericulture experts should be included in this amount. I’m leaning towards WebSlinger’s idea that these hires were not additional new hires but instead replaced existing people who were not longer with KBLB.

Decreasing research expenditures right at the moment when your business is shut down awaiting further developments from the research lab — not a good look.

News tomorrow? Please? Explain what is going on?

I can dream, even though when I wake up, having my happy everafter seems pretty remote these days.

Thanks for posting the information, fsa. One other small bit of information: KBLB has burned about a million dollars in 9 months of operation this year. That puts them at about $1.3 million per year. They have about $3.3 million in the bank (and gold), so that is 2+ years of operation at the current level.

Any other interesting things turn up in this report?

[Little G]

I'll help you out. Nothing new of interest, no earnings, and all quiet with no major announcements.

[WebSlinger]

***** A FEW NOTES FROM THE 10-Q *****

- $0 revenue

- Still no commercial production (after 14+ years)

- KBLB sold all of the Treasuries that they bought recently.

- A few more details were disclosed about their wimpy worms:

Production operations in 2022 and early 2023 were hampered by unseasonable climate fluctuations and poor robustness of the silkworm strains we were utilizing at that time. To address these challenges, we have taken significant steps to improve the genetics of our silkworms and radically improve our internal procedures at Kraig labs and Prodigy Textiles to strengthen our operations.

- Inventory still stands at $6,580, and hasn't changed at all since it was 1st reported (on the 10-K back in March).

- A few more details have been disclosed about inventory and GSS:

During the year ended December 31, 2022, the Company paid $98,480 as a deposit towards the purchase of inventory from a related party vendor (an entity in which we hold a 15% ownership interest – see below for Cost Method investment). As of September 30, 2023, the balance was $98,480 (See Note 10).

The Company holds a 15% direct equity investment in Global Silk Solutions Joint Stock Company, a private Company (see deposit on inventory above).

- KBLB is still paying Notre Dame for the 2019 note. KBLB still owes $50,244.

- Accumulated deficit in increased to $48,362,146.

- KBLB is still a "GOING CONCERN"

NOTE 2 GOING CONCERN
As reflected in the accompanying financial statements, the Company has a working capital deficiency of $5,525,153 and stockholders’ deficiency of $4,998,533 and used $916,762 of cash in operations for the nine months ended September 30, 2023. This raises substantial doubt about its ability to continue as a going concern.