Another baffling PR. "The dual-facility model was executed using a deliberate two-week offset between the start of each cycle. This staggered production schedule enables the seamless integration of outputs from both locations, resulting in a continuous supply of finished cocoons and silkworm eggs, ready to seed subsequent rearing cycles." Let's consider the possibilities:
Possibility One: One facility is producing eggs, the other is raising silkworms. The two-week offset is used to allow for eggs from Facility 1 (F1) to be transferred to F2. Sounds good, right? Problem: raising silkworms for silk production takes about 30 days, while raising silkworms for egg production takes about 45 days. If you offset F2 by two weeks from F1, after the first cycle, the eggs from F1 can be transferred to F2, which is ready to start another cycle. But at the end of 30 days, F2 is done raising their silkworms while F1 still needs another two weeks. Thus F2 will sit empty and unproductive.
Possibility Two: Both facilities are producing eggs. Facility 1 is raising parental strains, while Facility 2 cross-breeds parental eggs to produce first-generation hybrid eggs for silk production. Problem: No one seems to be producing any silk.
The central issue: we have a two-step (or three-step?) process where the last step happens faster than the earlier one. If you can produce more eggs in the egg-production facility than you can raise in a single crop, there is no need for synchronization. Every time you finish rearing a batch of silkworms for silk, you can get more eggs from the egg farm and start production. If you can only produce enough eggs for a single crop of silk production, you're gonna have some downtime because step 2 is faster than step 1.
Pay careful attention to this line in the PR: "The Company’s successful execution of its first simultaneous two-facility production cycle, with an emphasis on scaling up parental strains..." Thompson is telling us that they aren't producing a lot of silk yet. They are still working to build up their pool of parental strains. Does this mean 'We didn't produce any silk in this production cycle?" Nope. But it means they didn't produce much, if any.
Will the next production cycle (likely ending around 45 days from now) begin the transition to silk production? Only Thompson knows for sure, and he ain't telling, folks...
The KBLB way!
Market Data 
Markets 
AI
