There is a lot more to evaluating a new material for possible inclusion in a product line than you appear to appreciate.
You have to test it in the actual production machinery to ensure that it will work with it or whether modifications will be required (due to different handling characteristics (for example a tendency to accumulate static electricity whereas the previous material did not could constitute a major headache). Then you have to test the products. Some of that testing (especially for new materials) will involve repetitive strain testing for hundreds of thousands of cycles or temperature cycling for thousands of cycles all of which can take many weeks. This absolutely must be done because if a problem were to arise after products were on the market the resulting losses would be enormous (not the least of which would be "good will" (which is an exact accounting term with very real value not the vague adjective many might misconstrue it to be). Good companies have been ruined by including a new material in their products that caused big problems.
A lot of this goes in progressive stages, with a thorough evaluation at each stage: first you get a copy of the specifications and if that looks good you get some actual samples of material. If the bench tests look good you try incorporating it into the base material (ie.: the chopped strand checked out ok, so try including it in some plastic or whatever else you are reinforcing). If that tests OK, then make an actual product or two with it. Then you put it thru the torture chambers.
You have to ensure reliability of supply. You don't want to suddenly be unable to meet demand and contracts because of unavailability of a material. On this point a deal can be made on a contingent basis but even a contingent deal isn't going to be made unless the buyer sees good evidence that the supply will be there when needed. This is most especially true when dealing with a startup company.
There's a REASON Kim said "possibly by the end of the year"
One of the big reasons I want to see KBLB taking on experienced staff in the very near future is that it needs people with experience in dealing with such things.
OT: General observation (directed at no one in particular) I have never seen a stock message board with remotely as many posters as this one (IHUB KBLB) exhibiting such extreme impatience, often based solely on totally unrealistic expectations of how long things take. (Only a small percentage of posters but still far more than usual, IMHO). I suspect it may be because of a lot of newbies to stocks and especially to biotechnology, that got extremely lucky on their first one and developed unrealistic expectations as a result. This is most especially surprising with a company that is progressing at a truly blistering pace! KBLB could well have a product on the market within 4 short years of startup! This is almost unheard of for a biotechnology company. This is the REAL WORLD people! Not some fantasy, not Hollywood. Things have to happen in order for other things to happen