0001413119
false
--12-31
Q2
Unlimited
Unlimited
Unlimited
Unlimited
Unlimited
Unlimited
P2Y
P13M
P13M
Unlimited
Unlimited
Unlimited
P3Y
P3Y
P3Y
P5Y
P3Y
0001413119
2023-01-01
2023-06-30
0001413119
us-gaap:CommonClassAMember
2023-08-14
0001413119
us-gaap:CommonClassBMember
2023-08-14
0001413119
2023-06-30
0001413119
2022-12-31
0001413119
us-gaap:RelatedPartyMember
2023-06-30
0001413119
us-gaap:RelatedPartyMember
2022-12-31
0001413119
us-gaap:SeriesAPreferredStockMember
2023-06-30
0001413119
us-gaap:SeriesAPreferredStockMember
2022-12-31
0001413119
us-gaap:CommonClassAMember
2023-06-30
0001413119
us-gaap:CommonClassAMember
2022-12-31
0001413119
us-gaap:CommonClassBMember
2023-06-30
0001413119
us-gaap:CommonClassBMember
2022-12-31
0001413119
us-gaap:USTreasurySecuritiesMember
2023-06-30
0001413119
us-gaap:USTreasurySecuritiesMember
2022-12-31
0001413119
KBLB:InvestmentInGoldMember
2023-06-30
0001413119
KBLB:InvestmentInGoldMember
2022-12-31
0001413119
2022-01-01
2022-12-31
0001413119
us-gaap:CommonClassAMember
2023-01-01
2023-06-30
0001413119
us-gaap:CommonClassAMember
2022-01-01
2022-12-31
0001413119
us-gaap:CommonClassBMember
2023-01-01
2023-06-30
0001413119
us-gaap:CommonClassBMember
2022-01-01
2022-12-31
0001413119
2023-04-01
2023-06-30
0001413119
2022-04-01
2022-06-30
0001413119
2022-01-01
2022-06-30
0001413119
us-gaap:SeriesAPreferredStockMember
us-gaap:PreferredStockMember
2023-03-31
0001413119
us-gaap:CommonStockMember
KBLB:CommonClassAStockMember
2023-03-31
0001413119
us-gaap:CommonStockMember
KBLB:CommonClassBStockMember
2023-03-31
0001413119
us-gaap:CommonStockMember
KBLB:ClassASharesToBeIssuedMember
2023-03-31
0001413119
us-gaap:AdditionalPaidInCapitalMember
2023-03-31
0001413119
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2023-03-31
0001413119
us-gaap:RetainedEarningsMember
2023-03-31
0001413119
2023-03-31
0001413119
us-gaap:SeriesAPreferredStockMember
us-gaap:PreferredStockMember
2022-12-31
0001413119
us-gaap:CommonStockMember
KBLB:CommonClassAStockMember
2022-12-31
0001413119
us-gaap:CommonStockMember
KBLB:CommonClassBStockMember
2022-12-31
0001413119
us-gaap:CommonStockMember
KBLB:ClassASharesToBeIssuedMember
2022-12-31
0001413119
us-gaap:AdditionalPaidInCapitalMember
2022-12-31
0001413119
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2022-12-31
0001413119
us-gaap:RetainedEarningsMember
2022-12-31
0001413119
us-gaap:SeriesAPreferredStockMember
us-gaap:PreferredStockMember
2022-03-31
0001413119
us-gaap:CommonStockMember
KBLB:CommonClassAStockMember
2022-03-31
0001413119
us-gaap:CommonStockMember
KBLB:CommonClassBStockMember
2022-03-31
0001413119
us-gaap:CommonStockMember
KBLB:ClassASharesToBeIssuedMember
2022-03-31
0001413119
us-gaap:AdditionalPaidInCapitalMember
2022-03-31
0001413119
us-gaap:RetainedEarningsMember
2022-03-31
0001413119
2022-03-31
0001413119
us-gaap:SeriesAPreferredStockMember
us-gaap:PreferredStockMember
2021-12-31
0001413119
us-gaap:CommonStockMember
KBLB:CommonClassAStockMember
2021-12-31
0001413119
us-gaap:CommonStockMember
KBLB:CommonClassBStockMember
2021-12-31
0001413119
us-gaap:CommonStockMember
KBLB:ClassASharesToBeIssuedMember
2021-12-31
0001413119
us-gaap:AdditionalPaidInCapitalMember
2021-12-31
0001413119
us-gaap:RetainedEarningsMember
2021-12-31
0001413119
2021-12-31
0001413119
us-gaap:SeriesAPreferredStockMember
us-gaap:PreferredStockMember
2023-04-01
2023-06-30
0001413119
us-gaap:CommonStockMember
KBLB:CommonClassAStockMember
2023-04-01
2023-06-30
0001413119
us-gaap:CommonStockMember
KBLB:CommonClassBStockMember
2023-04-01
2023-06-30
0001413119
us-gaap:CommonStockMember
KBLB:ClassASharesToBeIssuedMember
2023-04-01
2023-06-30
0001413119
us-gaap:AdditionalPaidInCapitalMember
2023-04-01
2023-06-30
0001413119
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2023-04-01
2023-06-30
0001413119
us-gaap:RetainedEarningsMember
2023-04-01
2023-06-30
0001413119
us-gaap:SeriesAPreferredStockMember
us-gaap:PreferredStockMember
2023-01-01
2023-06-30
0001413119
us-gaap:CommonStockMember
KBLB:CommonClassAStockMember
2023-01-01
2023-06-30
0001413119
us-gaap:CommonStockMember
KBLB:CommonClassBStockMember
2023-01-01
2023-06-30
0001413119
us-gaap:CommonStockMember
KBLB:ClassASharesToBeIssuedMember
2023-01-01
2023-06-30
0001413119
us-gaap:AdditionalPaidInCapitalMember
2023-01-01
2023-06-30
0001413119
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2023-01-01
2023-06-30
0001413119
us-gaap:RetainedEarningsMember
2023-01-01
2023-06-30
0001413119
us-gaap:SeriesAPreferredStockMember
us-gaap:PreferredStockMember
2022-04-01
2022-06-30
0001413119
us-gaap:CommonStockMember
KBLB:CommonClassAStockMember
2022-04-01
2022-06-30
0001413119
us-gaap:CommonStockMember
KBLB:CommonClassBStockMember
2022-04-01
2022-06-30
0001413119
us-gaap:CommonStockMember
KBLB:ClassASharesToBeIssuedMember
2022-04-01
2022-06-30
0001413119
us-gaap:AdditionalPaidInCapitalMember
2022-04-01
2022-06-30
0001413119
us-gaap:RetainedEarningsMember
2022-04-01
2022-06-30
0001413119
us-gaap:SeriesAPreferredStockMember
us-gaap:PreferredStockMember
2022-01-01
2022-06-30
0001413119
us-gaap:CommonStockMember
KBLB:CommonClassAStockMember
2022-01-01
2022-06-30
0001413119
us-gaap:CommonStockMember
KBLB:CommonClassBStockMember
2022-01-01
2022-06-30
0001413119
us-gaap:CommonStockMember
KBLB:ClassASharesToBeIssuedMember
2022-01-01
2022-06-30
0001413119
us-gaap:AdditionalPaidInCapitalMember
2022-01-01
2022-06-30
0001413119
us-gaap:RetainedEarningsMember
2022-01-01
2022-06-30
0001413119
us-gaap:SeriesAPreferredStockMember
us-gaap:PreferredStockMember
2023-06-30
0001413119
us-gaap:CommonStockMember
KBLB:CommonClassAStockMember
2023-06-30
0001413119
us-gaap:CommonStockMember
KBLB:CommonClassBStockMember
2023-06-30
0001413119
us-gaap:CommonStockMember
KBLB:ClassASharesToBeIssuedMember
2023-06-30
0001413119
us-gaap:AdditionalPaidInCapitalMember
2023-06-30
0001413119
us-gaap:AccumulatedOtherComprehensiveIncomeMember
2023-06-30
0001413119
us-gaap:RetainedEarningsMember
2023-06-30
0001413119
us-gaap:SeriesAPreferredStockMember
us-gaap:PreferredStockMember
2022-06-30
0001413119
us-gaap:CommonStockMember
KBLB:CommonClassAStockMember
2022-06-30
0001413119
us-gaap:CommonStockMember
KBLB:CommonClassBStockMember
2022-06-30
0001413119
us-gaap:CommonStockMember
KBLB:ClassASharesToBeIssuedMember
2022-06-30
0001413119
us-gaap:AdditionalPaidInCapitalMember
2022-06-30
0001413119
us-gaap:RetainedEarningsMember
2022-06-30
0001413119
2022-06-30
0001413119
srt:MinimumMember
2022-06-30
0001413119
srt:MaximumMember
2022-06-30
0001413119
us-gaap:WarrantMember
2023-01-01
2023-06-30
0001413119
us-gaap:WarrantMember
2022-01-01
2022-12-31
0001413119
us-gaap:StockOptionMember
2023-01-01
2023-06-30
0001413119
us-gaap:StockOptionMember
2022-01-01
2022-12-31
0001413119
us-gaap:ConvertiblePreferredStockMember
2023-01-01
2023-06-30
0001413119
us-gaap:ConvertiblePreferredStockMember
2022-01-01
2022-12-31
0001413119
us-gaap:WarrantMember
srt:MinimumMember
2023-06-30
0001413119
us-gaap:WarrantMember
srt:MinimumMember
2022-12-31
0001413119
KBLB:StockWarrantsMember
srt:MaximumMember
2023-06-30
0001413119
KBLB:StockWarrantsMember
srt:MaximumMember
2022-12-31
0001413119
us-gaap:USTreasurySecuritiesMember
2023-01-01
2023-06-30
0001413119
us-gaap:FairValueInputsLevel1Member
KBLB:InvestmentInGoldMember
2023-06-30
0001413119
us-gaap:FairValueInputsLevel2Member
KBLB:InvestmentInGoldMember
2023-06-30
0001413119
us-gaap:FairValueInputsLevel3Member
KBLB:InvestmentInGoldMember
2023-06-30
0001413119
KBLB:InvestmentInGoldMember
2023-06-30
0001413119
us-gaap:FairValueInputsLevel1Member
KBLB:InvestmentInGoldMember
2022-12-31
0001413119
us-gaap:FairValueInputsLevel2Member
KBLB:InvestmentInGoldMember
2022-12-31
0001413119
us-gaap:FairValueInputsLevel3Member
KBLB:InvestmentInGoldMember
2022-12-31
0001413119
KBLB:InvestmentInGoldMember
2022-12-31
0001413119
us-gaap:FairValueInputsLevel1Member
us-gaap:USTreasurySecuritiesMember
2023-06-30
0001413119
us-gaap:FairValueInputsLevel2Member
us-gaap:USTreasurySecuritiesMember
2023-06-30
0001413119
us-gaap:FairValueInputsLevel3Member
us-gaap:USTreasurySecuritiesMember
2023-06-30
0001413119
us-gaap:FairValueInputsLevel1Member
us-gaap:USTreasurySecuritiesMember
2022-12-31
0001413119
us-gaap:FairValueInputsLevel2Member
us-gaap:USTreasurySecuritiesMember
2022-12-31
0001413119
us-gaap:FairValueInputsLevel3Member
us-gaap:USTreasurySecuritiesMember
2022-12-31
0001413119
us-gaap:FairValueInputsLevel1Member
us-gaap:MoneyMarketFundsMember
2023-06-30
0001413119
us-gaap:FairValueInputsLevel2Member
us-gaap:MoneyMarketFundsMember
2023-06-30
0001413119
us-gaap:FairValueInputsLevel3Member
us-gaap:MoneyMarketFundsMember
2023-06-30
0001413119
us-gaap:MoneyMarketFundsMember
2023-06-30
0001413119
us-gaap:FairValueInputsLevel1Member
us-gaap:MoneyMarketFundsMember
2022-12-31
0001413119
us-gaap:FairValueInputsLevel2Member
us-gaap:MoneyMarketFundsMember
2022-12-31
0001413119
us-gaap:FairValueInputsLevel3Member
us-gaap:MoneyMarketFundsMember
2022-12-31
0001413119
us-gaap:MoneyMarketFundsMember
2022-12-31
0001413119
us-gaap:FairValueInputsLevel1Member
2023-06-30
0001413119
us-gaap:FairValueInputsLevel2Member
2023-06-30
0001413119
us-gaap:FairValueInputsLevel3Member
2023-06-30
0001413119
us-gaap:FairValueInputsLevel1Member
2022-12-31
0001413119
us-gaap:FairValueInputsLevel2Member
2022-12-31
0001413119
us-gaap:FairValueInputsLevel3Member
2022-12-31
0001413119
us-gaap:AutomobilesMember
2023-06-30
0001413119
us-gaap:AutomobilesMember
2022-12-31
0001413119
KBLB:LaboratoryEquipmentMember
2023-06-30
0001413119
KBLB:LaboratoryEquipmentMember
2022-12-31
0001413119
KBLB:LaboratoryEquipmentMember
srt:MinimumMember
2023-06-30
0001413119
KBLB:LaboratoryEquipmentMember
srt:MaximumMember
2023-06-30
0001413119
us-gaap:OfficeEquipmentMember
2023-06-30
0001413119
us-gaap:OfficeEquipmentMember
2022-12-31
0001413119
us-gaap:OfficeEquipmentMember
srt:MinimumMember
2023-06-30
0001413119
us-gaap:OfficeEquipmentMember
srt:MaximumMember
2023-06-30
0001413119
us-gaap:LeaseholdImprovementsMember
2023-06-30
0001413119
us-gaap:LeaseholdImprovementsMember
2022-12-31
0001413119
us-gaap:LeaseholdImprovementsMember
srt:MinimumMember
2023-06-30
0001413119
us-gaap:LeaseholdImprovementsMember
srt:MaximumMember
2023-06-30
0001413119
KBLB:OperatingLeaseAgreementsMember
2023-01-01
2023-06-30
0001413119
2019-09-05
0001413119
KBLB:OperatingLeaseAgreementsMember
KBLB:OfficeAndManufacturingSpaceMember
KBLB:JulyOneTwoThousandTwentyOneAndMarchThrityOneTwoThousandTwentyThreeMember
2022-09-01
2022-09-30
0001413119
KBLB:OperatingLeaseAgreementsMember
KBLB:OctoberOneTwoThousandTwentyTwoThroughSeptemberThrityTwoThosuandTwentyThreeMember
2023-01-01
2023-06-30
0001413119
KBLB:AdoptionOfNewGuidanceMember
2023-06-30
0001413119
KBLB:SocialistRepublicOfVietnamMember
2019-05-09
0001413119
KBLB:SocialistRepublicOfVietnamMember
2019-05-09
2019-05-09
0001413119
2019-05-09
0001413119
KBLB:SocialistRepublicOfVietnamMember
2021-07-02
0001413119
KBLB:CEOMember
us-gaap:RelatedPartyMember
2020-12-01
0001413119
us-gaap:RelatedPartyMember
2022-01-26
0001413119
KBLB:NotreDameMember
KBLB:UnsecuredPromissoryNoteMember
2019-03-01
0001413119
KBLB:FirstNineMonthsMember
2023-01-01
2023-06-30
0001413119
KBLB:SevenAndEightMonthsMember
2023-01-01
2023-06-30
0001413119
KBLB:NineThroughTwentyThreeMonthsMember
2023-01-01
2023-06-30
0001413119
KBLB:TwentyFourthMonthsMember
2023-06-30
0001413119
2021-07-08
0001413119
KBLB:ThirteenMonthsMember
2023-01-01
2023-06-30
0001413119
KBLB:FourteenMonthsMember
2023-01-01
2023-06-30
0001413119
KBLB:TwentyMonthsMember
2023-01-01
2023-06-30
0001413119
KBLB:MonthsFourteenAndTwentyMember
2023-01-01
2023-06-30
0001413119
KBLB:UnsecuredPromissoryNoteMember
2023-01-01
2023-06-30
0001413119
KBLB:UnsecuredConvertibleNoteMember
2020-12-11
0001413119
KBLB:UnsecuredConvertibleNoteMember
2020-12-10
2020-12-11
0001413119
KBLB:UnsecuredConvertibleNoteMember
KBLB:FirstConvertibleDebentureMember
2020-12-11
0001413119
KBLB:UnsecuredConvertibleNoteMember
2021-03-24
2021-03-25
0001413119
KBLB:UnsecuredConvertibleNoteMember
KBLB:FirstConvertibleDebentureMember
2021-03-24
2021-03-25
0001413119
KBLB:UnsecuredConvertibleNoteMember
KBLB:FirstConvertibleDebentureMember
2021-03-25
0001413119
KBLB:UnsecuredConvertibleNoteMember
KBLB:SecondConvertibleDebentureMember
2021-04-04
2021-04-06
0001413119
KBLB:UnsecuredConvertibleNoteMember
KBLB:ThirdConvertibleDebentureMember
2021-04-21
2021-04-22
0001413119
KBLB:UnsecuredConvertibleNoteMember
2021-03-25
0001413119
us-gaap:MeasurementInputSharePriceMember
2021-03-25
0001413119
us-gaap:MeasurementInputExercisePriceMember
2021-03-25
0001413119
us-gaap:MeasurementInputExpectedTermMember
2021-03-25
0001413119
us-gaap:MeasurementInputPriceVolatilityMember
2021-03-25
0001413119
us-gaap:MeasurementInputExpectedDividendRateMember
2021-03-25
0001413119
us-gaap:MeasurementInputRiskFreeInterestRateMember
2021-03-25
0001413119
us-gaap:CommonStockMember
2022-01-20
2022-01-21
0001413119
us-gaap:CommonStockMember
2022-01-21
0001413119
us-gaap:CommonStockMember
2022-01-30
2022-01-31
0001413119
us-gaap:CommonStockMember
2022-01-31
0001413119
us-gaap:CommonStockMember
2022-02-13
2022-02-16
0001413119
us-gaap:CommonStockMember
2022-02-16
0001413119
KBLB:UnsecuredConvertibleNoteMember
2022-01-17
2022-01-18
0001413119
KBLB:UnsecuredConvertibleNoteMember
2022-01-18
0001413119
KBLB:UnsecuredConvertibleNoteMember
2022-12-31
0001413119
us-gaap:MeasurementInputSharePriceMember
2022-01-18
0001413119
us-gaap:MeasurementInputExercisePriceMember
srt:MinimumMember
2022-01-18
0001413119
us-gaap:MeasurementInputExercisePriceMember
srt:MaximumMember
2022-01-18
0001413119
us-gaap:MeasurementInputExpectedTermMember
2022-01-18
0001413119
us-gaap:MeasurementInputPriceVolatilityMember
2022-01-18
0001413119
us-gaap:MeasurementInputExpectedDividendRateMember
2022-01-18
0001413119
us-gaap:MeasurementInputRiskFreeInterestRateMember
2022-01-18
0001413119
us-gaap:CommonStockMember
2022-04-14
2022-04-14
0001413119
us-gaap:CommonStockMember
2022-04-14
0001413119
us-gaap:CommonStockMember
2022-04-29
2022-04-29
0001413119
us-gaap:CommonStockMember
2022-04-29
0001413119
us-gaap:CommonStockMember
2022-05-17
2022-05-17
0001413119
us-gaap:CommonStockMember
2022-05-17
0001413119
us-gaap:CommonStockMember
2022-06-06
2022-06-06
0001413119
us-gaap:CommonStockMember
2022-06-06
0001413119
us-gaap:CommonStockMember
2022-06-14
2022-06-14
0001413119
us-gaap:CommonStockMember
2022-06-14
0001413119
us-gaap:CommonStockMember
2022-06-21
2022-06-21
0001413119
us-gaap:CommonStockMember
2022-06-21
0001413119
us-gaap:CommonStockMember
2022-06-30
2022-06-30
0001413119
us-gaap:CommonStockMember
2022-06-30
0001413119
us-gaap:CommonStockMember
2022-07-19
2022-07-19
0001413119
us-gaap:CommonStockMember
2022-07-19
0001413119
us-gaap:CommonStockMember
2022-08-18
2022-08-18
0001413119
us-gaap:CommonStockMember
2022-08-18
0001413119
us-gaap:CommonStockMember
2022-09-08
2022-09-08
0001413119
us-gaap:CommonStockMember
2022-09-08
0001413119
us-gaap:CommonStockMember
2022-09-25
2022-09-26
0001413119
us-gaap:CommonStockMember
2022-09-26
0001413119
us-gaap:CommonStockMember
2022-10-11
2022-10-11
0001413119
us-gaap:CommonStockMember
2022-10-11
0001413119
us-gaap:CommonStockMember
2022-10-18
2022-10-18
0001413119
us-gaap:CommonStockMember
2022-10-18
0001413119
us-gaap:CommonStockMember
2022-10-26
2022-10-26
0001413119
us-gaap:CommonStockMember
2022-10-26
0001413119
us-gaap:CommonStockMember
2022-10-31
2022-10-31
0001413119
us-gaap:CommonStockMember
2022-10-31
0001413119
us-gaap:CommonStockMember
2022-11-01
2022-11-01
0001413119
us-gaap:CommonStockMember
2022-11-01
0001413119
us-gaap:CommonStockMember
2022-11-14
2022-11-14
0001413119
us-gaap:CommonStockMember
2022-11-14
0001413119
us-gaap:CommonStockMember
2022-11-17
2022-11-17
0001413119
us-gaap:CommonStockMember
2022-11-17
0001413119
KBLB:UnsecuredConvertibleNoteMember
2022-04-07
2022-04-11
0001413119
KBLB:UnsecuredConvertibleNoteMember
2022-04-11
0001413119
us-gaap:MeasurementInputSharePriceMember
2020-12-11
0001413119
us-gaap:MeasurementInputExercisePriceMember
2020-12-11
0001413119
us-gaap:MeasurementInputExpectedTermMember
2020-12-11
0001413119
us-gaap:MeasurementInputPriceVolatilityMember
2020-12-11
0001413119
us-gaap:MeasurementInputExpectedDividendRateMember
2020-12-11
0001413119
us-gaap:MeasurementInputRiskFreeInterestRateMember
2020-12-11
0001413119
us-gaap:ConvertibleNotesPayableMember
2020-12-31
0001413119
us-gaap:ConvertibleNotesPayableMember
2021-01-01
2021-12-31
0001413119
us-gaap:ConvertibleNotesPayableMember
2022-12-31
0001413119
us-gaap:ConvertibleNotesPayableMember
2023-01-01
2023-06-30
0001413119
KBLB:PurchaseAgreementMember
us-gaap:InvestorMember
2019-03-07
2019-03-09
0001413119
KBLB:PurchaseAgreementMember
us-gaap:InvestorMember
2019-03-09
0001413119
KBLB:PurchaseAgreementMember
us-gaap:InvestorMember
us-gaap:CommonClassAMember
2019-03-07
2019-03-09
0001413119
KBLB:PurchaseAgreementMember
us-gaap:InvestorMember
KBLB:SixCentWarrantMember
2019-03-09
0001413119
KBLB:PurchaseAgreementMember
us-gaap:InvestorMember
KBLB:EightCentWarrantMember
2019-03-09
0001413119
KBLB:PurchaseAgreementMember
us-gaap:WarrantMember
2019-03-09
0001413119
KBLB:PurchaseAgreementMember
KBLB:WarrantOneMember
2019-03-09
0001413119
KBLB:PurchaseAgreementMember
KBLB:WarrantTwoMember
2019-03-09
0001413119
KBLB:PurchaseAgreementMember
KBLB:WarrantThreeMember
2019-03-09
0001413119
KBLB:PurchaseAgreementMember
us-gaap:WarrantMember
2021-03-02
0001413119
KBLB:PurchaseAgreementMember
KBLB:WarrantOneMember
2021-03-02
0001413119
KBLB:PurchaseAgreementMember
KBLB:WarrantTwoMember
2021-03-02
0001413119
KBLB:PurchaseAgreementMember
KBLB:WarrantTwoMember
2021-06-24
0001413119
KBLB:PurchaseAgreementMember
KBLB:WarrantThreeMember
2021-03-02
0001413119
KBLB:PurchaseAgreementMember
KBLB:WarrantFourMember
2021-03-02
0001413119
2022-02-13
2022-02-15
0001413119
2022-02-15
0001413119
us-gaap:CommonStockMember
2022-02-13
2022-02-15
0001413119
us-gaap:CommonStockMember
2022-02-15
0001413119
2023-02-14
2023-02-16
0001413119
us-gaap:WarrantMember
2022-02-13
2022-02-15
0001413119
2021-01-24
2021-01-25
0001413119
KBLB:CommonStockWarrantsAndOptionsMember
2021-01-25
0001413119
us-gaap:StockOptionMember
2021-01-24
2021-01-25
0001413119
us-gaap:StockOptionMember
2023-01-01
2023-06-30
0001413119
KBLB:StockOptionOneMember
2020-02-18
2020-02-19
0001413119
KBLB:StockOptionOneMember
2020-02-19
0001413119
KBLB:StockOptionOneMember
2023-01-01
2023-06-30
0001413119
KBLB:StockOptionTwoMember
2020-02-18
2020-02-19
0001413119
KBLB:StockOptionTwoMember
2020-02-19
0001413119
KBLB:StockOptionTwoMember
2023-01-01
2023-06-30
0001413119
us-gaap:CommonClassAMember
2009-02-15
2009-02-16
0001413119
us-gaap:CommonClassAMember
2009-02-16
0001413119
us-gaap:CommonClassBMember
2009-02-15
2009-02-16
0001413119
us-gaap:CommonClassBMember
2009-02-16
0001413119
2009-02-15
2009-02-16
0001413119
2009-02-16
0001413119
us-gaap:SeriesAPreferredStockMember
2013-12-17
0001413119
2020-02-18
2020-02-19
0001413119
us-gaap:StockOptionMember
2020-02-18
2020-02-19
0001413119
2021-01-01
2021-12-31
0001413119
us-gaap:WarrantMember
2023-06-30
0001413119
us-gaap:WarrantMember
2023-01-01
2023-06-30
0001413119
KBLB:WarrantOneMember
2023-06-30
0001413119
KBLB:WarrantOneMember
2023-01-01
2023-06-30
0001413119
KBLB:WarrantTwoMember
2023-06-30
0001413119
KBLB:WarrantTwoMember
2023-01-01
2023-06-30
0001413119
KBLB:WarrantThreeMember
2023-06-30
0001413119
KBLB:WarrantThreeMember
2023-01-01
2023-06-30
0001413119
KBLB:WarrantFourMember
2023-06-30
0001413119
KBLB:WarrantFourMember
2023-01-01
2023-06-30
0001413119
KBLB:WarrantFiveMember
2023-06-30
0001413119
KBLB:WarrantFiveMember
2023-01-01
2023-06-30
0001413119
KBLB:WarrantSixMember
2023-06-30
0001413119
KBLB:WarrantSixMember
2023-01-01
2023-06-30
0001413119
KBLB:WarrantSevenMember
2023-06-30
0001413119
KBLB:WarrantSevenMember
2023-01-01
2023-06-30
0001413119
KBLB:WarrantEightMember
2023-06-30
0001413119
KBLB:WarrantEightMember
2023-01-01
2023-06-30
0001413119
us-gaap:WarrantMember
2022-12-31
0001413119
us-gaap:WarrantMember
2022-01-01
2022-12-31
0001413119
KBLB:WarrantOneMember
2022-12-31
0001413119
KBLB:WarrantOneMember
2022-01-01
2022-12-31
0001413119
KBLB:WarrantTwoMember
2022-12-31
0001413119
KBLB:WarrantTwoMember
2022-01-01
2022-12-31
0001413119
KBLB:WarrantThreeMember
2022-12-31
0001413119
KBLB:WarrantThreeMember
2022-01-01
2022-12-31
0001413119
KBLB:WarrantFourMember
2022-12-31
0001413119
KBLB:WarrantFourMember
2022-01-01
2022-12-31
0001413119
KBLB:WarrantFiveMember
2022-12-31
0001413119
KBLB:WarrantFiveMember
2022-01-01
2022-12-31
0001413119
KBLB:WarrantSixMember
2022-12-31
0001413119
KBLB:WarrantSixMember
2022-01-01
2022-12-31
0001413119
KBLB:WarrantSevenMember
2022-12-31
0001413119
KBLB:WarrantSevenMember
2022-01-01
2022-12-31
0001413119
KBLB:WarrantEightMember
2022-12-31
0001413119
KBLB:WarrantEightMember
2022-01-01
2022-12-31
0001413119
KBLB:WarrantNineMember
2022-12-31
0001413119
KBLB:WarrantNineMember
2022-01-01
2022-12-31
0001413119
KBLB:EmploymentAgreementMember
srt:ChiefExecutiveOfficerMember
2010-11-09
2010-11-10
0001413119
KBLB:EmploymentAgreementMember
srt:ChiefExecutiveOfficerMember
2015-01-01
2015-12-31
0001413119
KBLB:EmploymentAgreementMember
KBLB:EmployeeMember
2015-01-01
2015-12-31
0001413119
KBLB:EmploymentAgreementMember
srt:ChiefExecutiveOfficerMember
2016-01-01
2016-12-31
0001413119
KBLB:EmploymentAgreementMember
srt:ChiefExecutiveOfficerMember
2017-01-02
2017-12-31
0001413119
KBLB:EmploymentAgreementMember
srt:ChiefExecutiveOfficerMember
2019-01-01
2019-01-01
0001413119
KBLB:EmploymentAgreementMember
srt:ChiefExecutiveOfficerMember
2023-01-01
2023-06-30
0001413119
KBLB:EmploymentAgreementMember
KBLB:MrJonathanRRiceMember
2015-01-19
2015-01-20
0001413119
KBLB:EmploymentAgreementMember
KBLB:MrJonathanRRiceMember
2015-01-20
0001413119
KBLB:EmploymentAgreementMember
KBLB:MrJonathanRRiceMember
2015-05-28
0001413119
KBLB:EmploymentAgreementMember
KBLB:MrJonathanRRiceMember
2015-12-31
0001413119
KBLB:EmploymentAgreementMember
KBLB:MrJonathanRRiceMember
2016-01-13
2016-01-14
0001413119
KBLB:EmploymentAgreementMember
KBLB:MrJonathanRRiceMember
2016-01-14
0001413119
KBLB:EmploymentAgreementMember
KBLB:MrJonathanRRiceMember
2019-08-08
0001413119
KBLB:EmploymentAgreementMember
KBLB:MrJonathanRRiceMember
2019-04-25
2019-04-26
0001413119
KBLB:EmploymentAgreementMember
KBLB:MrJonathanRRiceMember
2019-08-15
2019-08-15
0001413119
KBLB:MrJonathanRRiceMember
2023-06-30
0001413119
KBLB:MrJonathanRRiceMember
2022-12-31
0001413119
KBLB:EmploymentAgreementMember
KBLB:MrKennethLeMember
2019-07-03
2019-07-03
0001413119
KBLB:EmploymentAgreementMember
KBLB:MrKennethLeMember
2019-07-03
0001413119
srt:BoardOfDirectorsChairmanMember
2023-06-30
0001413119
srt:BoardOfDirectorsChairmanMember
2022-12-31
0001413119
KBLB:LicenseAgreementMember
2006-05-07
2006-05-08
0001413119
KBLB:LicenseAgreementMember
2006-08-07
2006-08-08
0001413119
KBLB:LicenseAgreementMember
srt:MaximumMember
2006-05-07
2006-05-08
0001413119
KBLB:LicenseAgreementMember
2011-10-27
2011-10-28
0001413119
KBLB:LicenseAgreementMember
2011-10-28
0001413119
KBLB:LicenseAgreementMember
us-gaap:CommonClassAMember
2019-03-01
2019-03-01
0001413119
KBLB:LicenseAgreementMember
2023-01-01
2023-06-30
0001413119
KBLB:IntellectualPropertyTransferAgreementMember
KBLB:KimThompsonMember
2006-12-25
2006-12-26
0001413119
KBLB:IntellectualPropertyTransferAgreementMember
KBLB:KimThompsonMember
2023-06-30
0001413119
KBLB:IntellectualPropertyTransferAgreementMember
KBLB:KimThompsonMember
2022-12-31
0001413119
KBLB:OperatingLeaseAgreementsMember
KBLB:SocialistRepublicOfVietnamMember
2019-05-09
0001413119
KBLB:OperatingLeaseAgreementsMember
KBLB:SocialistRepublicOfVietnamMember
2019-05-09
2019-05-09
0001413119
KBLB:OperatingLeaseAgreementsMember
KBLB:SocialistRepublicOfVietnamMember
2021-07-01
0001413119
2017-09-13
0001413119
KBLB:OperatingLeaseAgreementsMember
2019-09-04
2019-09-05
0001413119
KBLB:OperatingLeaseAgreementsMember
KBLB:OfficeAndManufacturingSpaceMember
KBLB:JulyOneTwoThousandTwentyOneAndSeptemberThrityTwoThousandTwentyTwoMember
2021-07-01
2022-09-30
0001413119
KBLB:OperatingLeaseAgreementsMember
srt:ScenarioForecastMember
2022-10-01
2023-09-30
0001413119
KBLB:FounderAndChiefExecutiveOfficerMember
2022-01-25
2022-01-26
0001413119
KBLB:PrincipalStockholderMember
2023-06-30
0001413119
KBLB:PrincipalStockholderMember
2022-12-31
0001413119
srt:ChiefExecutiveOfficerMember
2023-06-30
0001413119
srt:ChiefExecutiveOfficerMember
2022-12-31
0001413119
KBLB:SeniorStaffMember
2023-06-30
0001413119
KBLB:SeniorStaffMember
2022-12-31
0001413119
srt:ChiefExecutiveOfficerMember
us-gaap:RoyaltyAgreementTermsMember
2023-06-30
0001413119
srt:ChiefExecutiveOfficerMember
us-gaap:RoyaltyAgreementTermsMember
2022-12-31
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
utr:oz
utr:sqft
utr:sqm
xbrli:pure
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
10-Q
☒ |
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For
the quarterly period ended June 30, 2023
OR
☐ |
TRANSITION
REPORT PURSUANT TO PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For
the transition period from_____ to _____
Commission
File Number: 000-56232
KRAIG
BIOCRAFT LABORATORIES, INC.
(Exact
Name of Registrant as Specified in Charter)
Wyoming |
|
83-0459707 |
(State
or Other Jurisdiction
of
Incorporation) |
|
(I.R.S.
Employer
Identification
No.) |
2723
South State St. Suite 150
Ann
Arbor, Michigan 48104 |
(Address
of Principal Executive Offices) |
(734)
619-8066
(Registrant’s
telephone number, including area code)
(Former
name and address, if changed since last report)
Copies
to:
Hunter
Taubman Fischer & Li LLC
950
Third Ave., 19th Floor
New
York, NY 10022
Securities
registered pursuant to Section 12(b) of the Act:
Title
of each class |
|
Trading
Symbol(s) |
|
Name
of exchange on which registered |
None |
|
- |
|
- |
Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate
by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule
405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant
was required to submit and post such files). Yes ☒ No ☐
Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,”
“smaller reporting company,” and emerging growth company in Rule 12b-2 of the Exchange Act.
Large
accelerated filer ☐ |
Accelerated
filer ☐ |
Non-accelerated
filer ☒ |
Smaller
reporting company ☒ |
|
Emerging
growth company ☐ |
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate
by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As
of August 14, 2023, there were 1,033,374,219 shares of the issuer’s Class A common stock, no par value per share, outstanding, 0 shares
of the issuer’s Class B common stock, no par value per share, outstanding and 2 shares of preferred stock, no par value per share,
outstanding.
TABLE
OF CONTENTS
Kraig
Biocraft Laboratories, Inc. and Subsidiary
Condensed Consolidated Balance Sheets
| |
June 30, 2023 | | |
December 31, 2022 | |
| |
(Unaudited) | | |
| |
ASSETS | |
| | | |
| | |
Current Assets | |
| | | |
| | |
Cash and cash equivalents | |
$ | 1,436,861 | | |
$ | 3,862,716 | |
Investment in U.S. Treasury Bills at fair value (cost: $1,714,790 and $0) | |
| 1,727,811 | | |
| - | |
Inventory | |
| 6,580 | | |
| 6,580 | |
Prepaid expenses | |
| 1,728 | | |
| 15,665 | |
Deposit | |
| 98,480 | | |
| 98,480 | |
Total Current Assets | |
| 3,271,460 | | |
| 3,983,441 | |
| |
| | | |
| | |
Property and Equipment, net | |
| 75,104 | | |
| 87,861 | |
Investment in gold bullions (cost $450,216 and $450,216, respectively) | |
| 458,832 | | |
| 437,251 | |
Operating lease right-of-use asset, net | |
| 34,814 | | |
| 58,849 | |
Security deposit | |
| 3,518 | | |
| 3,518 | |
| |
| | | |
| | |
Total Assets | |
$ | 3,843,728 | | |
$ | 4,570,920 | |
| |
| | | |
| | |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | |
| | | |
| | |
| |
| | | |
| | |
Current Liabilities | |
| | | |
| | |
Accounts payable and accrued expenses | |
$ | 527,919 | | |
$ | 540,339 | |
Note payable - related party | |
| 1,617,000 | | |
| 1,617,000 | |
Royalty agreement payable - related party | |
| 65,292 | | |
| 65,292 | |
Accounts payable and accrued expenses - related party | |
| 6,043,760 | | |
| 5,715,008 | |
Operating lease liability, current | |
| 18,019 | | |
| 39,200 | |
Loan payable | |
| 65,244 | | |
| 95,244 | |
Total Current Liabilities | |
| 8,337,234 | | |
| 8,072,083 | |
| |
| | | |
| | |
Long Term Liabilities | |
| | | |
| | |
Operating lease liability, net of current | |
| 17,145 | | |
| 20,697 | |
Total Liabilities | |
| 8,354,379 | | |
| 8,092,780 | |
| |
| | | |
| | |
Commitments and Contingencies (Note 9) | |
| - | | |
| - | |
| |
| | | |
| | |
Stockholders’ Deficit | |
| | | |
| | |
Preferred stock, no par value; unlimited shares authorized, none, issued and outstanding | |
| - | | |
| - | |
Preferred stock Series A, no par value; 2 and 2 shares issued and outstanding, respectively | |
| 5,217,800 | | |
| 5,217,800 | |
Preferred
stock value | |
| | | |
| | |
Common stock Class A, no par value; unlimited shares authorized, 1,033,374,219 and 1,030,940,008 shares issued and outstanding, respectively | |
| 27,160,611 | | |
| 27,060,611 | |
Common stock Class B, no par value; unlimited shares authorized, no shares issued and outstanding | |
| - | | |
| - | |
Common
stock value | |
| - | | |
| - | |
Common Stock Issuable, 1,122,311 and 1,122,311 shares, respectively | |
| 22,000 | | |
| 22,000 | |
Additional paid-in capital | |
| 10,888,790 | | |
| 10,834,729 | |
Accumulated Other comprehensive income | |
| 13,021 | | |
| - | |
Accumulated Deficit | |
| (47,812,873 | ) | |
| (46,657,000 | ) |
| |
| | | |
| | |
Total Stockholders’ Deficit | |
| (4,510,651 | ) | |
| (3,521,860 | ) |
| |
| | | |
| | |
Total Liabilities and Stockholders’ Deficit | |
$ | 3,843,728 | | |
$ | 4,570,920 | |
Kraig
Biocraft Laboratories, Inc. and Subsidiary
Condensed
Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
| |
June 30,
2023 | | |
June 30,
2022 | | |
June 30,
2023 | | |
June 30,
2022 | |
| |
For the Three Months Ended | | |
For the Six Months Ended | |
| |
June 30,
2023 | | |
June 30,
2022 | | |
June 30,
2023 | | |
June 30,
2022 | |
| |
| | |
| | |
| | |
| |
Revenue | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | - | |
| |
| | | |
| | | |
| | | |
| | |
Operating Expenses | |
| | | |
| | | |
| | | |
| | |
General and Administrative | |
| 220,667 | | |
| 212,419 | | |
| 431,770 | | |
| 425,438 | |
Professional Fees | |
| 31,349 | | |
| 109,534 | | |
| 66,096 | | |
| 229,914 | |
Officer’s Salary | |
| 171,625 | | |
| 164,845 | | |
| 343,249 | | |
| 349,653 | |
Research and Development | |
| 57,035 | | |
| 49,869 | | |
| 126,127 | | |
| 77,373 | |
Total Operating Expenses | |
| 480,676 | | |
| 536,667 | | |
| 967,242 | | |
| 1,082,378 | |
| |
| | | |
| | | |
| | | |
| | |
Loss from Operations | |
| (480,676 | ) | |
| (536,667 | ) | |
| (967,242 | ) | |
| (1,082,378 | ) |
| |
| | | |
| | | |
| | | |
| | |
Other Income/(Expenses) | |
| | | |
| | | |
| | | |
| | |
Net change in unrealized gain (loss) on investment in gold bullion | |
| (11,771 | ) | |
| (28,352 | ) | |
| 21,581 | | |
| (5,401 | ) |
Interest expense | |
| (119,282 | ) | |
| (298,444 | ) | |
| (237,119 | ) | |
| (460,331 | ) |
Amortization of debt issue costs | |
| - | | |
| (174,669 | ) | |
| - | | |
| (536,701 | ) |
Interest income | |
| 22,638 | | |
| - | | |
| 26,907 | | |
| - | |
Total Other Income/(Expenses) | |
| (108,415 | ) | |
| (501,465 | ) | |
| (188,631 | ) | |
| (1,002,433 | ) |
| |
| | | |
| | | |
| | | |
| | |
| |
| | | |
| | | |
| | | |
| | |
Provision for Income Taxes | |
| - | | |
| - | | |
| - | | |
| - | |
| |
| | | |
| | | |
| | | |
| | |
Net (Loss) | |
$ | (589,091 | ) | |
$ | (1,038,132 | ) | |
$ | (1,155,873 | ) | |
$ | (2,084,811 | ) |
| |
| | | |
| | | |
| | | |
| | |
Other Comprehensive Income | |
| | | |
| | | |
| | | |
| | |
Change in unrealized value of available-for-sale securities, net of income tax | |
$ | 13,021 | | |
$ | - | | |
$ | 13,021 | | |
$ | - | |
| |
| | | |
| | | |
| | | |
| | |
Total Comprehensive Loss | |
$ | (576,070 | ) | |
$ | (1,038,132 | ) | |
$ | (1,142,852 | ) | |
$ | (2,084,811 | ) |
| |
| | | |
| | | |
| | | |
| | |
Net Income (Loss) Per Share - Basic and Diluted | |
$ | (0.00 | ) | |
$ | (0.00 | ) | |
$ | (0.00 | ) | |
$ | (0.00 | ) |
| |
| | | |
| | | |
| | | |
| | |
Weighted average number of shares outstanding during the period - Basic and Diluted | |
| 1,033,374,219 | | |
| 955,149,900 | | |
| 1,032,728,682 | | |
| 949,454,169 | |
Kraig Biocraft Laboratories, Inc. and Subsidiary
Condensed Consolidated Statement of Changes in Stockholders Deficit
For the three and six months ended June 30, 2023
(Unaudited)
| |
Shares | | |
Par | | |
Shares | | |
Par | | |
Shares | | |
Par | | |
Shares | | |
Par | | |
APIC | | |
Income | | |
Deficit | | |
Total | |
| |
Preferred
Stock -
Series
A | | |
Common
Stock -
Class
A | | |
Common
Stock -
Class
B | | |
To be
issued | | |
| | |
Accumulated
other
Comprehensive | | |
Accumulated | | |
| |
| |
Shares | | |
Par | | |
Shares | | |
Par | | |
Shares | | |
Par | | |
Shares | | |
Par | | |
APIC | | |
Income | | |
Deficit | | |
Total | |
| |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
Balance, March 31, 2023 (Unaudited) | |
| 2 | | |
$ | 5,217,800 | | |
| 1,033,374,219 | | |
$ | 27,160,611 | | |
| - | | |
$ | - | | |
| 1,122,311 | | |
$ | 22,000 | | |
$ | 10,786,149 | | |
$ | - | | |
$ | (47,223,782 | ) | |
$ | (4,037,222 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Warrants issued for services - related parties | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 80,997 | | |
| - | | |
| - | | |
| 80,997 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Warrants issued for services | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 1,487 | | |
| - | | |
| - | | |
| 1,487 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Imputed interest - related party | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 20,157 | | |
| - | | |
| - | | |
| 20,157 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Other comprehensive income | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 13,021 | | |
| - | | |
| 13,021 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Net loss for the three months ended June 30, 2023 | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (589,091 | ) | |
| (589,091 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Balance, June 30, 2023 (Unaudited) | |
| 2 | | |
$ | 5,217,800 | | |
| 1,033,374,219 | | |
$ | 27,160,611 | | |
| - | | |
$ | - | | |
| 1,122,311 | | |
$ | 22,000 | | |
$ | 10,888,790 | | |
$ | 13,021 | | |
$ | (47,812,873 | ) | |
$ | (4,510,651 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Balance, December 31, 2022 (Audited) | |
| 2 | | |
$ | 5,217,800 | | |
| 1,030,940,008 | | |
$ | 27,060,611 | | |
| - | | |
$ | - | | |
| 1,122,311 | | |
$ | 22,000 | | |
$ | 10,834,729 | | |
| - | | |
$ | (46,657,000 | ) | |
$ | (3,521,860 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Warrants issued for services - related parties | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 98,197 | | |
| - | | |
| - | | |
| 98,197 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Warrants issued for services | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 15,771 | | |
| - | | |
| - | | |
| 15,771 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Shares issued in connection with cashless warrants exercise | |
| - | | |
| - | | |
| 2,434,211 | | |
| 100,000 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (100,000 | ) | |
| - | | |
| - | | |
| - | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Imputed interest - related party | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 40,093 | | |
| - | | |
| - | | |
| 40,093 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Other comprehensive income | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 13,021 | | |
| - | | |
| 13,021 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Net loss for the six months ended June 30, 2023 | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (1,155,873 | ) | |
| (1,155,873 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Balance, June 30, 2023 (Unaudited) | |
| 2 | | |
$ | 5,217,800 | | |
| 1,033,374,219 | | |
$ | 27,160,611 | | |
| - | | |
$ | - | | |
| 1,122,311 | | |
$ | 22,000 | | |
$ | 10,888,790 | | |
$ | 13,021 | | |
$ | (47,812,873 | ) | |
$ | (4,510,651 | ) |
Kraig Biocraft Laboratories, Inc. and Subsidiary
Condensed Consolidated Statement of Changes in Stockholders’ Deficit
For the three and six months ended June 30, 2022
(Unaudited)
| |
Shares | | |
Par | | |
Shares | | |
Par | | |
Shares | | |
Par | | |
Shares | | |
Par | | |
APIC | | |
Deficit | | |
Total | |
| |
Preferred Stock -
Series A | | |
Common
Stock -
Class
A | | |
Common
Stock -
Class
B | | |
To be
issued | | |
| | |
Accumulated | | |
| |
| |
Shares | | |
Par | | |
Shares | | |
Par | | |
Shares | | |
Par | | |
Shares | | |
Par | | |
APIC | | |
Deficit | | |
Total | |
Balance, March 31, 2022 (Unaudited) | |
| 2 | | |
$ | 5,217,800 | | |
| 950,905,044 | | |
$ | 23,921,297 | | |
| - | | |
$ | - | | |
| 1,122,311 | | |
$ | 22,000 | | |
$ | 10,599,108 | | |
$ | (43,861,665 | ) | |
$ | (4,101,460 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Warrants issued for services - related parties | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 49,370 | | |
| - | | |
| 49,370 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Warrants issued for services | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 7,929 | | |
| - | | |
| 7,929 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Convertible debt and accrued interest conversion into common stock ($0.045/Sh-$0.064/Sh) | |
| - | | |
| - | | |
| 23,507,693 | | |
| 1,285,781 | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 1,285,781 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Imputed interest - related party | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 21,708 | | |
| - | | |
| 21,708 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Net loss for the three months ended June 30, 2022 | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (1,038,132 | ) | |
| (1,038,132 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Balance, June 30, 2022 (Unaudited) | |
| 2 | | |
$ | 5,217,800 | | |
| 974,412,737 | | |
$ | 25,207,078 | | |
| - | | |
$ | - | | |
| 1,122,311 | | |
$ | 22,000 | | |
$ | 10,678,115 | | |
$ | (44,899,797 | ) | |
$ | (3,774,804 | ) |
| |
Preferred
Stock -
Series
A | | |
Common
Stock -
Class
A | |
Common
Stock -
Class
B | | |
Class
A Shares
To
be issued | | |
| | |
Accumulated | | |
| |
| |
Shares | | |
Par | | |
Shares | | |
Par | |
Shares | | |
Par | | |
Shares | | |
Par | | |
APIC | | |
Deficit | | |
Total | |
Balance, December 31, 2021 (Audited) | |
| 2 | | |
$ | 5,217,800 | | |
| 927,378,166 | | |
$ | 22,385,132 | |
| - | | |
$ | - | | |
| 1,122,311 | | |
$ | 22,000 | | |
$ | 9,894,179 | | |
$ | (42,814,986 | ) | |
$ | (5,295,875 | ) |
Balance | |
| 2 | | |
$ | 5,217,800 | | |
| 927,378,166 | | |
$ | 22,385,132 | |
| - | | |
$ | - | | |
| 1,122,311 | | |
$ | 22,000 | | |
$ | 9,894,179 | | |
$ | (42,814,986 | ) | |
$ | (5,295,875 | ) |
| |
| | | |
| | | |
| | | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Warrants issued for services - related parties | |
| - | | |
| - | | |
| - | | |
| - | |
| - | | |
| - | | |
| - | | |
| - | | |
| 103,069 | | |
| - | | |
| 103,069 | |
| |
| | | |
| | | |
| | | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Warrants issued for services | |
| - | | |
| - | | |
| - | | |
| - | |
| - | | |
| - | | |
| - | | |
| - | | |
| 15,771 | | |
| - | | |
| 15,771 | |
| |
| | | |
| | | |
| | | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Exercise of warrants in exchange for cash ($0.06/Sh and $0.08/Sh) | |
| - | | |
| - | | |
| 11,097,959 | | |
| 739,864 | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 739,864 | |
| |
| | | |
| | | |
| | | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Convertible debt and accrued interest conversion into common stock ($0.045/Sh-$0.064/Sh)) | |
| - | | |
| - | | |
| 35,936,612 | | |
| 2,082,082 | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| 2,082,082 | |
| |
| | | |
| | | |
| | | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Imputed interest - related party | |
| - | | |
| - | | |
| - | | |
| - | |
| - | | |
| - | | |
| - | | |
| - | | |
| 40,093 | | |
| - | | |
| 40,093 | |
| |
| | | |
| | | |
| | | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Beneficial conversion feature | |
| - | | |
| - | | |
| - | | |
| - | |
| - | | |
| - | | |
| - | | |
| - | | |
| 625,003 | | |
| - | | |
| 625,003 | |
| |
| | | |
| | | |
| | | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Net loss for the six months ended June 30, 2022 | |
| - | | |
| - | | |
| - | | |
| - | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | | |
| (2,084,811 | ) | |
| (2,084,811 | ) |
| |
| | | |
| | | |
| | | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Balance, June 30, 2022 (Unaudited) | |
| 2 | | |
$ | 5,217,800 | | |
| 974,412,737 | | |
$ | 25,207,078 | |
| - | | |
$ | - | | |
| 1,122,311 | | |
$ | 22,000 | | |
$ | 10,678,115 | | |
$ | (44,899,797 | ) | |
$ | (3,774,804 | ) |
Balance | |
| 2 | | |
$ | 5,217,800 | | |
| 974,412,737 | | |
$ | 25,207,078 | |
| - | | |
$ | - | | |
| 1,122,311 | | |
$ | 22,000 | | |
$ | 10,678,115 | | |
$ | (44,899,797 | ) | |
$ | (3,774,804 | ) |
Kraig Biocraft Laboratories, Inc. and Subsidiary
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| |
2023 | | |
2022 | |
| |
For the six months ended June 30, | |
| |
| | |
| |
| |
2023 | | |
2022 | |
Cash Flows From Operating Activities: | |
| | | |
| | |
Net Loss | |
$ | (1,155,873 | ) | |
$ | (2,084,811 | ) |
Adjustments to reconcile net loss to net cash used in operations | |
| | | |
| | |
Depreciation expense | |
| 12,757 | | |
| 14,721 | |
Net change in unrealized appreciation and depreciation in gold bullions | |
| (21,581 | ) | |
| 5,401 | |
Change in fair value of marketable securities | |
| 13,021 | | |
| - | |
Amortization of debt discount | |
| - | | |
| 536,701 | |
Imputed interest - related party | |
| 40,093 | | |
| 40,093 | |
Warrants issued/(cancelled) to consultants | |
| 113,968 | | |
| 118,840 | |
Changes in operating assets and liabilities: | |
| | | |
| | |
Decrease in prepaid expenses | |
| 13,937 | | |
| 9,453 | |
Decrease in operating lease right-of-use, net | |
| 24,035 | | |
| 22,198 | |
Increase in accrued expenses and other payables - related party | |
| 328,752 | | |
| 182,706 | |
Decrease in accounts payable | |
| (12,420 | ) | |
| 216,060 | |
Decrease in operating lease liabilities, current | |
| (24,733 | ) | |
| (21,499 | ) |
Net Cash Used In Operating Activities | |
| (668,044 | ) | |
| (960,137 | ) |
| |
| | | |
| | |
| |
| | | |
| | |
Cash Flows From Investing Activities | |
| | | |
| | |
Purchase of treasury bills | |
| (2,587,811 | ) | |
| - | |
Proceeds from maturity of treasury bills | |
| 860,000 | | |
| - | |
Net Cash Used in Investing Activities | |
| (1,727,811 | ) | |
| - | |
| |
| | | |
| | |
Cash Flows From Financing Activities: | |
| | | |
| | |
Repayment of notes payable - related party | |
| - | | |
| (40,000 | ) |
Proceeds from convertible note payable, net of original issue discount | |
| - | | |
| 2,990,000 | |
Payment of debt offering costs | |
| - | | |
| (230,000 | ) |
Principal payments on debt | |
| (30,000 | ) | |
| (30,000 | ) |
Proceeds from warrant exercise | |
| - | | |
| 739,864 | |
Net Cash Provided by and Used in Financing Activities | |
| (30,000 | ) | |
| 3,429,864 | |
| |
| | | |
| | |
Net Change in Cash and Cash Equivalents | |
| (2,425,855 | ) | |
| 2,469,727 | |
| |
| | | |
| | |
Cash and Cash Equivalents at Beginning of Period | |
| 3,862,716 | | |
| 2,355,060 | |
| |
| | | |
| | |
Cash and Cash Equivalents at End of Period | |
$ | 1,436,861 | | |
$ | 4,824,787 | |
| |
| | | |
| | |
Supplemental disclosure of cash flow information: | |
| | | |
| | |
| |
| | | |
| | |
Cash paid for interest | |
$ | - | | |
$ | - | |
Cash paid for taxes | |
$ | - | | |
$ | - | |
| |
| | | |
| | |
Supplemental disclosure of non-cash investing and financing activities: | |
| | | |
| | |
Shares issued in connection with cashless warrants exercise | |
$ | 100,000 | | |
$ | - | |
Beneficial conversion feature in connection with convertible debt | |
$ | - | | |
$ | 625,003 | |
Shares issued in connection with convertible note payable | |
$ | - | | |
$ | 2,082,082 | |
Kraig
Biocraft Laboratories, Inc.
Notes
to Condensed Consolidated Financial Statements as of June 30, 2023
(Unaudited)
NOTE
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION
Basis
of Presentation
The
accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted
in the United States of America for interim financial statements (“U.S. GAAP”) and with the instructions to Form 10-Q and
Article 8 of Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Accordingly, they do not contain
all information and footnotes required by accounting principles generally accepted in the United States of America for annual financial
statements.
In
the opinion of the Company’s management, the accompanying unaudited consolidated financial statements contain all of the adjustments
necessary (consisting only of normal recurring accruals) to present the financial position of the Company as of June 30, 2023 and the
results of operations and cash flows for the periods presented. The results of operations for the three and six months ended June 30,
2023 are not necessarily indicative of the operating results for the full fiscal year or any future period.
These
unaudited consolidated financial statements should be read in conjunction with the financial statements and related notes thereto included
in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on March 29, 2023.
Management
acknowledges its responsibility for the preparation of the accompanying unaudited consolidated financial statements which reflect all
adjustments, consisting of normal recurring adjustments, considered necessary in its opinion for a fair statement of its consolidated
financial position and the consolidated results of its operations for the periods presented.
On
July 15, 2022, the Company signed an agreement with Global Silk Solutions Joint Stock Company (GSS). Under this agreement, GSS will serve
as a contract manufacturer for the Company’s recombinant spider silk.
Kraig
Biocraft Laboratories, Inc. (the “Company”) was incorporated under the laws of the State of Wyoming on April 25, 2006. The
Company was organized to develop high strength, protein based fiber, using recombinant DNA technology, for commercial applications in
the textile and specialty fiber industries.
Kraig
Biocraft Laboratories, Inc. (the “Company”) was incorporated under the laws of the State of Wyoming on April 25, 2006. The
Company was organized to develop high strength, protein based fiber, using recombinant DNA technology, for commercial applications in
the textile and specialty fiber industries.
On
March 5, 2018, the Company issued a board resolution authorizing investment in a Vietnamese subsidiary and appointing a representative
for the subsidiary.
On
April 24, 2018, the Company announced that it had received its investment registration certificate for its new Vietnamese subsidiary
Prodigy Textiles Co., Ltd.
On
May 1, 2018, the Company announced that it had received its enterprise registration certificate for its new Vietnamese subsidiary Prodigy
Textiles Co., Ltd
Foreign
Currency
The
assets and liabilities of Prodigy Textiles, Co., Ltd. (the Company’s Vietnamese subsidiary) whose functional currency is the Vietnamese
Dong, are translated into US dollars at period-end exchange rates prior to consolidation. Income and expense items are translated at
the average rates of exchange prevailing during the period. The adjustments resulting from translating the Company’s financial
statements are reflected as a component of other comprehensive (loss) income. Foreign currency transaction gains and losses are recognized
in net earnings based on differences between foreign exchange rates on the transaction date and settlement date.
Use
of Estimates
In
preparing financial statements in conformity with generally accepted accounting principles, management is required to make estimates
and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of
the financial statements and revenues and expenses during the reported period. Actual results could differ from those estimates.
Cash
and Cash Equivalents
Cash
and cash equivalents consist of demand deposits at financial institutions, money market funds, and highly liquid investments with original
maturities of three months or less.
As
of June 30, 2023 and December 31, 2022, the Company had $1,436,861 and $3,862,716, in cash and cash equivalent accounts.
Loss
Per Share
Basic
and diluted net loss per common share is computed based upon the weighted average common shares outstanding as defined by the Financial
Accounting Standards Board (“FASB” Accounting Standards Codification (“ASC”) No. 260, “Earnings per Share.”
For June 30, 2023 and 2022, warrants were not included in the computation of income/ (loss) per share because their inclusion is anti-dilutive.
The
computation of basic and diluted loss per share for June 30, 2023 and December 31, 2022 excludes the common stock equivalents of the
following potentially dilutive securities because their inclusion would be anti-dilutive:
SCHEDULE OF ANTIDILUTIVE SECURITIES OF EARNINGS PER SHARE
| |
June 30,
2023 | | |
December 31,
2022 | |
| |
| | |
| |
Stock Warrants (Exercise price - $0.001- $0.25/share) | |
| 48,460,714 | | |
| 54,660,032 | |
Stock Options (Exercise price - $0.1150/Share) | |
| 26,520,000 | | |
| 26,520,000 | |
Convertible Preferred Stock | |
| 2 | | |
| 2 | |
Total | |
| 74,980,716 | | |
| 81,180,034 | |
Investments
The
Company has investments Treasury Bills. The Treasury Bills have remaining terms ranging from one month to three months on June 30, 2023.
The
Company classifies its investments in Treasury Bills as available-for-sale, accounted for at fair value with unrealized gains and losses
recognized in other comprehensive gain on the statement of operations and comprehensive loss.
The
cost and estimated fair value of the Company’s investments are as follows:
SCHEDULE
OF COST AND ESTIMATED FAIR VALUE INVESTMENT
| |
| | |
Gross | | |
| |
| |
| | |
unrealized | | |
Fair | |
| |
Cost | | |
gain | | |
value | |
December 31, 2022 | |
$ | - | | |
$ | - | | |
$ | - | |
Treasury Bills | |
$ | 1,714,790 | | |
$ | 13,021 | | |
$ | 1,727,811 | |
Total Investments, June 30, 2023 | |
$ | 1,714,790 | | |
$ | 13,021 | | |
$ | 1,727,811 | |
Research
and Development Costs
The
Company expenses all research and development costs as incurred for which there is no alternative future use. These costs also include
the expensing of employee compensation and employee stock based compensation.
For
the three months ended June 30, 2023 and 2022, the Company had $57,035 and $49,869 respectively, in research and development costs.
For
the six months ended June 30, 2023 and 2022, the Company had $126,127 and $77,373 respectively, in research and development costs
Advertising
Expense
The
Company follows the policy of charging the costs of advertising to expense as incurred. There was no advertising expense in the three
and six months ended June 30, 2023 and 2022.
Income
Taxes
The
Company accounts for income taxes under FASB Codification Topic 740-10-25 (“ASC 740-10-25”). Under ASC No. 740-10-25, deferred
tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement
carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured
using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered
or settled. Under ASC No. 740-10-25, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income
in the period that includes the enactment date.
Stock-Based
Compensation
The
Company accounts for stock-based compensation for employees and directors in accordance with ASC 718, Compensation (“ASC 718”).
ASC 718 requires all share-based payments to employees, including grants of employee stock options, to be recognized in the statement
of operations based on their fair values. Under the provisions of ASC 718, stock-based compensation costs are measured at the grant date,
based on the fair value of the award, and are recognized as expense over the employee’s requisite service period (generally the
vesting period of the equity grant). The fair value of the Company’s common stock options are estimated using the Black Scholes
option-pricing model with the following assumptions: expected volatility, dividend rate, risk free interest rate and the expected life.
The Company expenses stock-based compensation by using the straight-line method. In accordance with ASC 718 and, excess tax benefits
realized from the exercise of stock-based awards are classified as cash flows from operating activities. All excess tax benefits and
tax deficiencies (including tax benefits of dividends on share-based payment awards) are recognized as income tax expense or benefit
in the condensed consolidated statements of operations.
The
Company accounts for stock-based compensation awards issued to non-employees for services, as prescribed by ASC 718-10, at either the
fair value of the services rendered or the instruments issued in exchange for such services, whichever is more readily determinable,
using the measurement date guidelines enumerated in ASU 2018-07.
Recent
Accounting Pronouncements
In
August 2020, FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity; Own Equity (“ASU 2020-06”),
as part of its overall simplification initiative to reduce costs and complexity of applying accounting standards while maintaining or
improving the usefulness of the information provided to users of financial statements. Among other changes, the new guidance removes
from GAAP separation models for convertible debt that require the convertible debt to be separated into a debt and equity component,
unless the conversion feature is required to be bifurcated and accounted for as a derivative or the debt is issued at a substantial premium.
As a result, after adopting the guidance, entities will no longer separately present such embedded conversion features in equity and
will instead account for the convertible debt wholly as debt. The new guidance also requires use of the “if-converted” method
when calculating the dilutive impact of convertible debt on earnings per share, which is consistent with the Company’s current
accounting treatment under the current guidance. The guidance is effective for financial statements issued for fiscal years beginning
after December 15, 2021, and interim periods within those fiscal years, with early adoption permitted, but only at the beginning of the
fiscal year. The Company adopted the guidance under ASU 2020-06 on January 1, 2022. The adoption of this guidance and had no material
impact on the Company’s financial statements.
Equipment
The
Company values property and equipment at cost and depreciates these assets using the straight-line method over their expected useful
life.
In
accordance with FASB ASC No. 360, Property, Plant and Equipment, the Company carries long-lived assets at the lower of the carrying
amount or fair value. Impairment is evaluated by estimating future undiscounted cash flows expected to result from the use of the asset
and its eventual disposition. If the sum of the expected undiscounted future cash flow is less than the carrying amount of the assets,
an impairment loss is recognized. Fair value, for purposes of calculating impairment, is measured based on estimated future cash flows,
discounted at a market rate of interest.
There
were no impairment losses recorded for the six months ended June 30, 2023 and 2022.
Fair
Value of Financial Instruments
We
hold certain financial assets, which are required to be measured at fair value on a recurring basis in accordance with the Statement
of Financial Accounting Standard No. 157, “Fair Value Measurements” (“ASC Topic 820-10”). ASC Topic 820-10
establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives
the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the
lowest priority to unobservable inputs (Level 3 measurements). ASC Topic 820-10 defines fair value as the price that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Level
1 instruments include cash and cash equivalents, account receivable, prepaid expenses, inventory and account payable and accrued liabilities.
The carrying values are assumed to approximate the fair value due to the short term nature of the instrument.
The
three levels of the fair value hierarchy under ASC Topic 820-10 are described below:
|
● |
Level
1 - Valuations based on quoted prices in active markets for identical assets or liabilities that an entity has the ability to access.
We believe our carrying value of level 1 instruments approximate their fair value at June 30, 2023 and 2022. |
|
|
|
|
● |
Level
2 - Valuations based on quoted prices for similar assets or liabilities, quoted prices for identical assets or liabilities in markets
that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term
of the assets or liabilities. |
|
|
|
|
● |
Level
3 - Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the
assets or liabilities. We consider depleting assets, asset retirement obligations and net profit interest liability to be Level 3.
We determine the fair value of Level 3 assets and liabilities utilizing various inputs, including NYMEX price quotations and contract
terms. |
The
following are the major categories of assets measured at fair value on a recurring basis: as of June 30, 2023 and December 31, 2022,
using quoted prices in active markets for identical liabilities (Level 1); significant other observable inputs (Level 2); and significant
unobservable inputs (Level 3):
The
Company has consistently applied the valuation techniques in all periods presented. The following table presents the Company’s
assets which were measured at fair value at June 30, 2023 and December 31, 2022:
SCHEDULE OF FAIR VALUE OF FINANCIAL INSTRUMENTS
| |
June 30, 2023 | | |
December 31, 2022 | |
| |
Fair Value Measurement Using | | |
Fair Value Measurement Using | |
| |
Level 1 | | |
Level 2 | | |
Level
3 | | |
Total | | |
Level 1 | | |
Level 2 | | |
Level 3 | | |
Total | |
| |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
Assets: | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Investment in gold | |
$ | 458,832 | | |
$ | - | | |
$ | - | | |
$ | 458,832 | | |
$ | 437,251 | | |
$ | - | | |
$ | - | | |
$ | 437,251 | |
Treasury bills | |
| 1,727,811 | | |
| - | | |
| - | | |
| 1,727,811 | | |
| - | | |
| - | | |
| - | | |
| - | |
Money market fund | |
$ | 1,212,045 | | |
$ | - | | |
$ | - | | |
$ | 1,212,045 | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | - | |
Total | |
$ | 3,398,688 | | |
$ | - | | |
$ | - | | |
$ | 3,398,688 | | |
$ | 437,251 | | |
$ | - | | |
$ | - | | |
$ | 437,251 | |
The
Board of Directors, who serves as the Custodian, is responsible for the safekeeping of gold bullion owned by the Company.
Fair
value of the gold bullion held by the Company is based on that day’s London Bullion Market Association (“LBMA”) Gold
Price PM. “LBMA Gold Price PM” is the price per fine troy ounce of gold, stated in U.S. dollars, determined by ICE Benchmark
Administration (“IBA”) following an electronic auction consisting of one or more 30-second rounds starting at 3:00 p.m. (London
time), on each day that the London gold market is open for business and published shortly thereafter.
The
fair value of the treasury bills is based on quoted market prices in an active market. The Company has determined the fair value based
on financial factors that are considered level 1 inputs in the fair value hierarchy.
Money
market funds included in cash and cash equivalents and U.S. government-backed securities are measured at fair value based on quoted prices
in active markets, which are considered Level 1 inputs. The Company’s policy is to recognize transfers in and/or out of the fair
value hierarchy as of the date in which the event or change in circumstances caused the transfer.
The
following tables summarize activity in gold bullion for the six months ended June 30, 2023:
SCHEDULE
OF GOLD IN BULLION
Six Months Ended June 30, 2023 | |
Ounces | | |
Cost | | |
Fair Value | |
| |
| | |
| | |
| |
Balance December 31, 2022 | |
| 239 | | |
$ | 1,829 | | |
$ | 437,251 | |
Net change in unrealized gain | |
| - | | |
| - | | |
| 21,581 | |
Balance June 30, 2023 | |
| 239 | | |
$ | 1,920 | | |
$ | 458,832 | |
The
following tables summarize activity in gold bullion for the six months ended June 30, 2022:
Six Months Ended June 30, 2022 | |
Ounces | | |
Cost | | |
Fair Value | |
| |
| | |
| | |
| |
Balance December 31, 2021 | |
| 239 | | |
$ | 1,884 | | |
$ | 437,212 | |
Net change in unrealized loss | |
| - | | |
| - | | |
| (5,401 | ) |
Balance June 30, 2022 | |
| 239 | | |
$ | 1,884 | | |
$ | 431,811 | |
Revenue
Recognition
Effective
January 1, 2018, the Company adopted ASC No. 606 — Revenue from Contracts with Customers. Under ASC No. 606, the Company recognizes
revenue from the commercial sales of products, licensing agreements and contracts by applying the following steps: (1) identify the contract
with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction
price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied.
For
the three and six months ended June 30, 2023 and 2022, the Company recognized $0 and $0 respectively in revenue.
Concentration
of Credit Risk
The
Company at times has cash and cash equivalents in banks in excess of FDIC insurance limits. At June 30, 2023 and December 31, 2022, the
Company had approximately $1,212,045 and $3,285,197, respectively in excess of FDIC insurance limits.
On
March 12, 2023, the U.S. government took extraordinary steps to stop a potential banking crisis after the historic failure of Silicon
Valley Bank, assuring all depositors at the failed institution that they could access all their money quickly, even as another major
bank was shut down. The Company had no exposure to a failed bank. The Company averts risks associated with such a crisis by holding minimum
cash balances required for uninterrupted operations, federal funds money market fund, and U.S. government-backed securities. As of June
30, 2023, the Company held $1,212,045 million in a federal money market fund (the “Fund”) with an investment objective to
seek to provide current income while maintaining liquidity and a stable share price of $1. The Fund invests at least 99.5% of its total
assets in cash, U.S. government securities, and/or repurchase agreements that are collateralized solely by U.S. government securities
or cash (collectively, government securities). As such it is considered one of the most conservative investment options offered.
Original
Issue Discount
For
certain notes issued, the Company provides the debt holder with an original issue discount. The original issue discount is recorded as
a debt discount, reducing the face amount of the note, and is amortized to amortization of original issue discount in the consolidated
statements of operations over the life of the debt.
Debt
Issue Cost
Debt
issuance cost paid to lenders, or third parties are recorded as debt discounts and amortized to interest expense in the consolidated
statements of operations, over the life of the underlying debt instrument.
Deposit
During
the year ended December 31, 2022, the Company paid $98,480 as a deposit towards the purchase of inventory. As of June 30, 2023, the balance
remained at $98,480.
NOTE
2 GOING CONCERN
As
reflected in the accompanying financial statements, the Company has a working capital deficiency of $5,065,774
and stockholders’ deficiency of $4,510,651
and used $668,044
of cash in operations for the six months ended June 30, 2023. This raises substantial doubt about its ability to continue as a going
concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to raise additional
capital and implement its business plan. The financial statements do not include any adjustments that might be necessary if the
Company is unable to continue as a going concern.
Management
believes that actions presently being taken to obtain additional funding and implement its strategic plans provide the opportunity for
the Company to continue as a going concern.
NOTE
3 EQUIPMENT
At
June 30, 2023 and December 31, 2022, property and equipment, net, is as follows:
SCHEDULE OF PROPERTY AND EQUIPMENT
| |
June 30, 2023 | | |
December 31, 2022 | | |
Estimated Useful Lives (Years) | |
Automobile | |
$ | 41,805 | | |
$ | 41,805 | | |
| 5 | |
Laboratory Equipment | |
| 123,911 | | |
| 123,911 | | |
| 5-10 | |
Office Equipment | |
| 7,260 | | |
| 7,260 | | |
| 5-10 | |
Leasehold Improvements | |
| 82,739 | | |
| 82,739 | | |
| 2-5 | |
Less: Accumulated Depreciation | |
| (180,611 | ) | |
| (167,854 | ) | |
| | |
Total Property and Equipment, net | |
$ | 75,104 | | |
$ | 87,861 | | |
| | |
Depreciation
expense for the three months ended June 30, 2023 and 2022, was $6,140 and $7,270, respectively.
Depreciation
expense for the six months ended June 30, 2023 and 2022, was $12,757 and $14,721, respectively.
NOTE
4 - RIGHT TO USE ASSETS AND LEASE LIABILITY
We
determine if an arrangement is a lease, or contains a lease, at inception and record the leases in our financial statements upon lease
commencement, which is the date when the underlying asset is made available for use by the lessor.
We
have a lease agreement with lease and non-lease components and have elected to utilize the practical expedient to account for lease and
non-lease components together as a single combined lease component, from both a lessee and lessor perspective with the exception of direct
sales-type leases and production equipment classes embedded in supply agreements. From a lessor perspective, the timing and pattern of
transfer are the same for the non-lease components and associated lease component and, the lease component, if accounted for separately,
would be classified as an operating lease.
We
have elected not to present short-term leases on the balance sheet as these leases have a lease term of 12 months or less at lease inception
and do not contain purchase options or renewal terms that we are reasonably certain to exercise. All other lease assets and lease liabilities
are recognized based on the present value of lease payments over the lease term at commencement date. Because our lease does not provide
an implicit rate of return, we used our incremental borrowing rate based on the information available at lease commencement date in determining
the present value of lease payments.
In
general, leases, where we are the lessee, may include options to extend the lease term. These leases may include options to terminate
the lease prior to the end of the agreed upon lease term. For purposes of calculating lease liabilities, lease terms include options
to extend or terminate the lease when it is reasonably certain that we will exercise such options.
Lease
expense for operating leases is recognized on a straight-line basis over the lease term as cost of revenues or operating expenses depending
on the nature of the leased asset. Certain operating leases provide for annual increases to lease payments based on an index or rate.
We calculate the present value of future lease payments based on the index or rate at the lease commencement date.
Differences
between the calculated lease payment and actual payment are expensed as incurred. Amortization of finance lease assets is recognized
over the lease term as cost of revenues or operating expenses depending on the nature of the leased asset.
Interest
expense on finance lease liabilities is recognized over the lease term in interest expense.
Since
September of 2015, we rent office space at 2723 South State Street, Suite 150, Ann Arbor, Michigan 48104, which is our principal place
of business. We pay an annual rent of $2,508 for conference facilities, mail, fax, and reception services located at our principal place
of business.
On
September 5, 2019, we signed a two-year lease for a 5,000 square foot property in Lansing, MI that commenced on October 1, 2019 and ends
on September 30, 2021, for its research and development headquarters. We pay an annual rent of $42,000 for year one of the lease and
will pay $44,800 for year two of the lease. On April 16, 2021, the Company signed a two year amendment to this lease. Commencing on July
1, 2021 and ending on September 30, 2022, the Company paid an annualized rent of $42,000. From October 1, 2022 through September 30,
2023, the Company will pay an annual rent of $44,800. The Company recorded ROU asset of $79,862 and lease liability of $79,862 in accordance
with the adoption of the new guidance.
On
May 9, 2019 the Company signed a 5 year property lease with the Socialist Republic of Vietnam which consists of 4,560.57 square meters
of space, which it leases at a current rent of approximately $45,150 per year one and two and with the 5% increase per year for three
through five. On July 1, 2021, the Company ended this lease agreement, and the company recovered the associated ROU asset and lease liability
of $241,800.
On
July 1, 2021, the Company signed a 5-year property lease with the Socialist Republic of Vietnam which consists of 6,000 square meters
of space, which it leases at a current rent of approximately $8,645 per year.
The
tables below present information regarding the Company’s operating lease assets and liabilities at June 30, 2023;
At
June 30, 2023 and December 31, 2022, the Company had no financing leases as defined in ASC 842, “Leases.”
SCHEDULE
OF OPERATING LEASES
| |
June 30, 2023 | | |
December 31, 2022 | |
Assets | |
| | | |
| | |
| |
| | | |
| | |
Operating lease - right-of-use asset - non-current | |
$ | 34,814 | | |
$ | 58,849 | |
| |
| | | |
| | |
Liabilities | |
| | | |
| | |
| |
| | | |
| | |
Operating lease liability | |
$ | 35,164 | | |
$ | 59,897 | |
| |
| | | |
| | |
Weighted-average remaining lease term (three months) | |
| 1.59 | | |
| 2.08 | |
| |
| | | |
| | |
Weighted-average discount rate | |
| 8 | % | |
| 8 | % |
| |
| | | |
| | |
The components of lease expense were as follows: | |
| | | |
| | |
| |
| | | |
| | |
Operating lease costs | |
| | | |
| | |
| |
| | | |
| | |
Amortization of right-of-use operating lease asset | |
$ | 24,035 | | |
$ | 52,043 | |
Total operating lease costs | |
$ | 24,035 | | |
$ | 52,043 | |
| |
| | | |
| | |
Supplemental cash flow information related to operating leases was as follows: | |
| | | |
| | |
| |
| | | |
| | |
Operating cash outflows from operating lease (obligation payment) | |
$ | 24,733 | | |
$ | 51,344 | |
Right-of-use asset obtained in exchange for new operating lease liability | |
$ | - | | |
$ | - | |
Future
minimum lease payments required under leases that have initial or remaining non-cancelable lease terms in excess of one year at June
30, 2023:
SCHEDULE
OF MINIMUM LEASE PAYMENTS
| |
| | |
2023 | |
$ | 15,523 | |
2024 | |
| 8,644 | |
2025 | |
| 8,644 | |
2026 | |
| 5,763 | |
Total lease payments | |
| 38,574 | |
Less: amount representing interest | |
| (3,410 | ) |
Total lease obligations | |
| 35,164 | |
Less: current portion of operating lease liability | |
| (18,019 | ) |
Long-term portion operating lease liability | |
$ | 17,145 | |
NOTE
5 NOTE PAYABLE – RELATED PARTY
Between June 6, 2016, and December 1, 2020 the Company received a total
of $1,657,000 in loans from its founder and CEO. Pursuant to the terms of the loans, the advances bear an interest at 3%, is unsecured,
and due on demand.
On
January 26, 2022, the Company repaid $40,000 of the outstanding loan to its founder and CEO.
Total
loan payable to the founder and CEO for as of June 30, 2023 is $1,617,000.
Total
loan payable to the founder and CEO as of December 31, 2022 is $1,617,000.
During
the six months ended June 30, 2023, the Company recorded $40,093 as an in-kind contribution of interest related to the loan and recorded
accrued interest payable of $27,888. As of June 30, 2023, total interest payable is $218,551.
During
the six months ended June 30, 2022, the Company recorded $40,093 as an in-kind contribution of interest related to the loan and recorded
accrued interest payable of $27,267. As of December 31, 2022, total interest payable is $190,663.
NOTE
6 LOAN PAYABLE
On
March 1, 2019, the Company entered into an unsecured promissory note with Notre Dame - an unrelated party in the amount of $265,244
in exchange for outstanding account payable due
to the debtor. Pursuant to the terms of the note, the note bears 10%
interest per year from the date of default until the date the loan is paid in full. The term of the loan is twenty-four months. The loan
repayment commenced immediately over a twenty-four month period according to the following table.
1.
$1,000 per month for the first nine months;
2.
$2,000 per month for the months seven and eight;
3.
$5,000 per month for months nine through twenty-three; and,
4.
Final payment of all remaining balance, in the amount of $180,224 in month 24.
On
July 8, 2021, the Company entered into an amendment to the March 1, 2019 agreement. As of the date of the amendment, the remaining outstanding
balance was $180,244. The loan repayment commenced immediately following the amendment and extended over a fourteen-month period with
the following terms:
1. |
$5,000
per month for months one through thirteen. |
2. |
Final
payment of the remaining balance in the amount of $115,244 split into two equal payments, of which $57,622 to be paid in month fourteen
and $57,622 paid in month twenty. |
The Company has continued to make $5,000 monthly payment
against this remaining balance in lieu of the balloon payments in months fourteen and twenty. The Company expects to make the final payment
on August 1, 2024.
During the six months ended June 30, 2023, the Company
paid $30,000 of the loan balance. The remaining loan balance as of June 30, 2023 is $65,244.
NOTE
7 CONVERTIBLE NOTES
On December 11, 2020,
the Company issued 3,125,000 five-year (5) warrants. The warrants had a fair value of $2,599,066, based upon using a black-scholes option
pricing model with the following inputs:
SCHEDULE
OF FAIR VALUE WARRANTS
Stock
Price |
|
$ |
0.14 |
|
Exercise
price |
|
$ |
0.16 |
|
Expected
term (in years) |
|
|
5 |
|
Expected
volatility |
|
|
|