Kraig Biocraft Laboratories Inc

Previous wording

Kraig Biocraft Laboratories, Inc. is a corporation organized under the laws of Wyoming on April 25, 2006. Kraig Labs was organized to develop high strength fibers using recombinant DNA technology for commercial applications in technical textile. We use genetically engineered silkworms that produce spider silk proteins to create our recombinant spider silk. Applications include performance apparel, workwear, filtration, luxury fashion, flexible composites, medical implants, cosmetics and more. We believe that we have been a leader in the research and development of commercially scalable and cost-effective spider silk for technical textile and non-fibrous applications. Our primary proprietary fiber technology includes natural and engineered variants of spider silk produced in domesticated mulberry silkworms. Our business brings twenty-first century biotechnology to the historical silk industry, permitting us to introduce materials with innovative properties and claims into an established commercial ecosystem of silkworm rearing, silk spinning and weaving, and manufacture of garments and other products that can include our specialty fibers and textiles. Specialty fibers are engineered for specific uses that require exceptional strength, flexibility, heat resistance and/or chemical resistance. The specialty fiber market is exemplified by two synthetic fiber products that come from petroleum derivatives: (1) aramid fibers; and (2) ultra-high molecular weight polyethylene fibers. The technical textile industry involves products for both industrial and consumer products, such as filtration fabrics, medical textiles (e.g., sutures and artificial ligaments), safety and protective clothing and fabrics used in military and aerospace applications (e.g., high-strength composite materials).

Current wording

Kraig Biocraft Laboratories, Inc. is a corporation organized under the laws of Wyoming on April 25, 2006. Kraig Labs was organized to develop high strength fibers using recombinant DNA technology for commercial applications in technical textile. We use genetically engineered silkworms that produce spider silk proteins to create our recombinant spider silk. Potential applications include performance apparel, workwear, filtration, luxury fashion, flexible composites, medical implants, cosmetics and more. We believe that we have been a leader in the research and development of commercially scalable and cost-effective spider silk for technical textile and non-fibrous applications. Our primary proprietary fiber technology includes natural and engineered variants of spider silk produced in domesticated mulberry silkworms. Our business brings twenty-first century biotechnology to the historical silk industry, permitting us to introduce materials with innovative properties and claims into an established commercial ecosystem of silkworm rearing, silk spinning and weaving, and manufacture of garments and other products that can include our specialty fibers and textiles. Specialty fibers are engineered for specific uses that require exceptional strength, flexibility, heat resistance and/or chemical resistance. The specialty fiber market is exemplified by two synthetic fiber products that come from petroleum derivatives: (1) aramid fibers; and (2) ultra-high molecular weight polyethylene fibers. The technical textile industry involves products for both industrial and consumer products, such as filtration fabrics, medical textiles (e.g., sutures and artificial ligaments), safety and protective clothing and fabrics used in military and aerospace applications (e.g., high-strength composite materials).

Previous wording

Research and development expenses: During the three months ended March 31, 2024, we incurred $29,435 of research and development expenses. During the three months ended March 31, 2023, we incurred $69,062 of research and development expenses. This was a decrease of $39,657 or 57.40% in 2024 compared with the same period in 2023. This decrease was due to a decrease in research spending.

Current wording

Research and development expenses: During the three months ended June 30, 2024, we incurred $49,414 of research and development expenses. During the three months ended June 30, 2023, we incurred $57,035 of research and development expenses. This was a decrease of $7,621 or 13.36% in 2024 compared with the same period in 2023. This decrease was due to a decrease in research spending.

Previous wording

Professional Fees: During the three months ended March 31, 2024, we incurred $76,182 of professional expenses, which increased by $41,435 or 119.25% from $34,747 for the three months ended March 31, 2023. This increase was primarily due to an increase in professional fees and in investor relations services.

Current wording

Professional Fees: During the three months ended June 30, 2024, we incurred $104,198 of professional expenses, which increased by $72,849 or 232.38% from $31,349 for the three months ended June 30, 2023. This increase was primarily due to an increase in professional fees and in investor relations services.

Previous wording

Officers Salary: During the three months ended March 31, 2024, officers’ salary expenses increased to $178,718 or 4.13% from $171,624 for the three months ended March 31, 2023. This change was primarily due to a 6% annual increase for the Company’s CEO and offset by a bonus paid to the Company’s COO for the three months ended March 31, 2023.

Current wording

Officers Salary: During the three months ended June 30, 2024, officers’ salary expenses increased to $234,788 or 36.80% from $171,625 for the three months ended June 30, 2023. This change was primarily due to a 6.0% annual increase for the Company’s CEO and offset by a bonus paid to the Company’s COO for the three months ended June 30, 2023.

Previous wording

General and Administrative Expense: General and administrative expenses decreased by $46,728 or 22.14% to $164,375 for the three months ended March 31, 2024 from $211,103 for the three months ended March 31, 2023. Our general and administrative expenses for the three months ended March 31, 2024 consisted of other general and administrative expenses (which includes expenses such as auto, business development, SEC filings, investor relations, general office, warrants and shares issued for services) of $5,007, travel of $13,366, and office salary of $111,048 for a total of $164,375. Our general and administrative expenses for the three months ended March 31, 2023 consisted of other general and administrative expenses (which includes expenses such as auto, business development, SEC filings, investor relations, general office, warrants and shares issued for services) of $132,497, travel of $7,792, and office salary of $70,814 for a total of $211,103.

Current wording

General and Administrative Expense: General and administrative expenses increased by $877,071 or 397.46% to $1,097,738 for the three months ended June 30, 2024 from $220,667 for the three months ended June 30, 2023. Our general and administrative expenses for the three months ended June 30, 2024 consisted of other general and administrative expenses (which includes expenses such as auto, business development, SEC filings, investor relations, general office, warrants and shares issued for services) of $874,522, travel of $27,341, and office salary of $127,630 for a total of $1,097,738. Our general and administrative expenses for the three months ended June 30, 2023 consisted of other general and administrative expenses (which includes expenses such as auto, business development, SEC filings, investor relations, general office, warrants and shares issued for services) of $141,500, travel of $4,376, and office salary of $74,791 for a total of $220,667.

Previous wording

Net Change in Unrealized Depreciation on Investment in Gold Bullion: Net change in unrealized appreciation on investment in gold bullion increased by $10,211 to $43,563 for the three-month period ended March 31, 2024 from $33,352 for the three month period ended March 31, 2023. The increase was primarily due to a net change in unrealized appreciation on investment in gold bullion.

Current wording

Net Change in Unrealized Appreciation and Depreciation on Investment in Gold Bullion: Net change in unrealized appreciation on investment in gold bullion increased by $32,397 to $20,626 for the three-month period ended June 30, 2024 from depreciation of $11,771 for the three month period ended June, 2023. The increase was primarily due to a net change in unrealized appreciation on investment in gold bullion.

Previous wording

Interest Expense: Interest expense increased by $12,097 to $129,934 for the three-month period ended March 31, 2024 from $117,837 for the three month period ended March 31, 2023. The increase was primarily due to interest on certain Company loans.

Current wording

Interest Expense: Interest expense increased by $11,607 to $130,889 for the three-month period ended June 30, 2024 from $119,282 for the three month period ended June 30, 2023. The increase was primarily due to interest on certain Company loans.

Previous wording

Net Loss: Net loss decreased by $58,907, or 10.39%, to a net loss of $507,875 for the three-month period ended March 31, 2024 from a net loss of $566,782 for the three month period ended March 31, 2023. This decrease in net loss was primarily attributable to decreases in general and administrative expenses and research and development expenses and offset by an increase in professional fees and officers salary.

Current wording

Net Loss: Net loss increased by $958,191, or 82.90%, to a net loss of $2,114,064 for the six-month period ended June 30, 2024 from a net loss of $1,155,873 for the six month period ended June 30, 2023. This decrease in net loss was primarily attributable to decreases in general and administrative expenses and research and development expenses and offset by an increase in professional fees and officers salary.

Previous wording

Our financial statements have been presented on the basis that we have a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. As presented in the unaudited condensed financial statements, we incurred a net loss of $507,875 during the three months ended March 31, 2024, and losses are expected to continue in the near term. The accumulated deficit is $50,194,655 at March 31, 2024. Refer to Note 2 for our discussion of stockholder deficit. We have been funding our operations through private loans and the sale of common stock in private placement transactions. Our cash resources are insufficient to meet our planned business objectives without additional financing. These and other factors raise substantial doubt about our ability to continue as a going concern. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of our company to continue as a going concern.

Current wording

Our financial statements have been presented on the basis that we have a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. As presented in the unaudited condensed financial statements, we incurred a net loss of $2,114,064 during the six months ended June 30, 2024, and losses are expected to continue in the near term. The accumulated deficit is $51,800,844 at June 30, 2024. Refer to Note 2 for our discussion of stockholder deficit. We have been funding our operations through private loans and the sale of common stock in private placement transactions. Our cash resources are insufficient to meet our planned business objectives without additional financing. These and other factors raise substantial doubt about our ability to continue as a going concern. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of our company to continue as a going concern.

Previous wording

Management anticipates that significant additional expenditures will be necessary to develop and expand our business before significant positive operating cash flows can be achieved. Our ability to continue as a going concern is dependent upon our ability to raise additional capital and to ultimately achieve sustainable revenues and profitable operations. At March 31, 2024, we had $2,047,307 of cash on hand. These funds are insufficient to complete our business plan and as a consequence, we will need to seek additional funds, primarily through the issuance of debt or equity securities for cash to operate our business. No assurance can be given that any future financing will be available or, if available, that it will be on terms that are satisfactory to us. Even if we are able to obtain additional financing, it may contain undue restrictions on our operations, in the case of debt financing or cause substantial dilution for our stockholders, in the case of equity financing.

Current wording

Management anticipates that significant additional expenditures will be necessary to develop and expand our business before significant positive operating cash flows can be achieved. Our ability to continue as a going concern is dependent upon our ability to raise additional capital and to ultimately achieve sustainable revenues and profitable operations. At June 30, 2024, we had $1,521,531 of cash on hand. These funds are insufficient to complete our business plan and as a consequence, we will need to seek additional funds, primarily through the issuance of debt or equity securities for cash to operate our business. No assurance can be given that any future financing will be available or, if available, that it will be on terms that are satisfactory to us. Even if we are able to obtain additional financing, it may contain undue restrictions on our operations, in the case of debt financing or cause substantial dilution for our stockholders, in the case of equity financing.

Previous wording

At March 31, 2024 we had a working capital deficit of $6,898,293, compared to a working capital deficitof $6,311,990 at December 31, 2023. Current liabilities increased to $8,956,527 at March 31, 2024 from $8,885,610 at December 31, 2023, primarily as a result of accounts payable.

Current wording

At June 30, 2024 we had a working capital deficit of $7,612,212, compared to a working capital deficitof $6,311,900 at December 31, 2023. Current liabilities increased to $9,146,075 at June 30, 2024 from $8,885,610 at December 31, 2023, primarily as a result of accounts payable – related party.

Previous wording

For the three months ended March 31, 2024, net cash used in operations of $489,527 was the result of a net loss of $507,875 offset by depreciation expense of $6,729, net change in unrealized appreciation in gold bullions of $43,563, warrants issuance/cancellation of $67,155, imputed interest on related party loans of $20,157, decrease in prepaid expenses of $10,858, and an increase in operating lease right of use of $11,865, an increase of accrued expenses and other payables-related party of $123,152, decrease in accounts payable of $32,181 and an increase in operating lease liabilities of $11,514.

Current wording

For the six months ended June 30, 2024, net cash used in operations of $1,000,303 was the result of a net loss of $2,114,064 offset by depreciation expense of $13,459, impairment of right of use asset of $30,084, net change in unrealized appreciation in gold bullions of $64,189, warrants issuance of $789,227, imputed interest on related party loans of $40,314, decrease in prepaid expenses of $9,453, and an increase in operating lease right of use of $23,961, an increase of accrued expenses and other payables-related party of $320,184, decrease in accounts payable of $25,472 and a decrease in operating lease liabilities of $23,260.

Previous wording

For the three months ended March 31, 2023, net cash used in operations of $395,454 was the result of a net loss of $566,782 offset by depreciation expense of $6,617, net change in unrealized depreciation in gold bullions of $33,352, warrants issuance of $31,484, imputed interest on related party loans of $19,936, decrease in prepaid expenses of $11,585, decrease in operating lease right of use of $11,895, an increase of accrued expenses and other payables-related party of $119,479, increase in accounts payable of $15,927 and a decrease in operating lease liabilities of $12,243.

Current wording

For the six months ended June 30, 2023, net cash used in operations of $668,044 was the result of a net loss of $1,155,873 offset by depreciation expense of $12,757, net change in unrealized depreciation in gold bullions of $21,581, warrants issuance of $113,968, imputed interest on related party loans of $40,093, decrease in prepaid expenses of $113,937, decrease in operating lease right of use of $24,035, an increase of accrued expenses and other payables-related party of $328,752, decrease in accounts payable of $12,420 and a decrease in operating lease liabilities of $24,733.

Previous wording

Our financing activities resulted in a cash outflow of $15,000 for the three months ended March 31, 2024, which is represented by $15,000 loan repayment.

Current wording

Our financing activities resulted in a cash outflow of $30,000 for the six months ended June 30, 2024, which is represented by $30,000 loan repayment.

Previous wording

Our financing activities resulted in a cash outflow of $15,000 for the three months ended March 31, 2023 which is represented by $15,000 loan repayment.

Current wording

Our financing activities resulted in a cash outflow of $30,000 for the six months ended June 30, 2023 which is represented by $30,000 loan repayment.