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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Wyoming
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83-0459707
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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Large accelerated filer
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Accelerated filer
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o
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Non-accelerated filer
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o
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Smaller reporting company
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(Do not check if a smaller reporting company)
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Page
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PART I - Financial Information
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Item 1.
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Financial Statements.
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||||
Condensed Balance Sheets as of June 30, 2012 (Unaudited) and December 31, 2011
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F-2 | ||||
Condensed Statements of Operations for the three and six months ended June 30, 2012 and 2011 (Unaudited) and for the period from April 25, 2006 (Inception) to June 30, 2012 (Unaudited)
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F-3 | ||||
Condensed Statement of Changes in Stockholders’ Deficit for the period from April 25, 2006 (Inception) to June 30, 2012 (Unaudited)
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F-4 | ||||
Consolidated Statements of Cash Flows for the three and six months ended June 30, 2012 and 2011 (Unaudited) and for the period from April 25, 2006 (Inception) to June 30, 2012 (Unaudited)
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F-5 | ||||
Notes to Condensed Financial Statements (Unaudited)
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F-6 | ||||
Item 2.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations.
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3 | |||
Item 4.
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Controls and Procedures
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6 | |||
PART II - Other Information
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Item 2.
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Unregistered Sales of Equity Securities and Use of Proceeds
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7 | |||
Item 6.
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Exhibits.
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7 | |||
Signatures | 8 | ||||
Exhibits/Certifications |
ITEM 1.
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FINANCIAL STATEMENTS
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PAGE
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F-2 |
CONDENSED BALANCE SHEETS AS OF JUNE 30, 2012 (UNAUDITED) AND DECEMBER 31, 2011.
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PAGE
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F-3 |
CONDENSED STATEMENTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2012 AND 2011, AND FOR THE PERIOD APRIL 25, 2006 (INCEPTION) TO JUNE 30, 2012 (UNAUDITED).
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PAGES
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F-4 |
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS’ DEFICIT FOR THE PERIOD FROM APRIL 25, 2006 (INCEPTION) TO JUNE 30, 2012 (UNAUDITED).
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PAGE
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F-5 |
CONDENSED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2012 AND 2011, AND FOR THE PERIOD APRIL 25, 2006 (INCEPTION) TO JUNE 30, 2012 (UNAUDITED).
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PAGES
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F-6 - F-21 |
NOTES TO CONDENSED FINANCIAL STATEMENTS (UANUDITED).
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Kraig Biocraft Laboratories, Inc.
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|||||||
(A Development Stage Company)
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|||||||
Condensed Balance Sheets
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ASSETS
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||||||||
June 30,
2012 |
December 31, 2011
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|||||||
(Unaudited)
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||||||||
Current Assets
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||||||||
Cash
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$ | 253,885 | $ | 195,409 | ||||
Prepaid expenses
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4,000 | - | ||||||
Loan receivable
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6,000 | 6,000 | ||||||
Interest receivable
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100 | - | ||||||
Total Current Assets
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263,985 | 201,409 | ||||||
Property and Equipment, net
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19,315 | 22,091 | ||||||
Total Assets
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$ | 283,300 | $ | 223,500 | ||||
LIABILITIES AND STOCKHOLDERS' DEFICIT
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||||||||
Current Liabilities
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||||||||
Accounts payable and accrued expenses
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$ | 214,673 | $ | 481,517 | ||||
Current portion of loan payable
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3,811 | 3,811 | ||||||
Royalty agreement payable - related party
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67,000 | 67,000 | ||||||
Accrued expenses - related party
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634,879 | 564,211 | ||||||
Total Current Liabilities
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920,363 | 1,116,539 | ||||||
Long Term Liabilities
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||||||||
Convertible note payable - net of debt discount
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5,000 | 5,000 | ||||||
Loan payable, net of current portion
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6,272 | 8,456 | ||||||
Total Liabilities
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931,635 | 1,129,995 | ||||||
Commitments and Contingencies
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||||||||
Stockholders' Deficit
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||||||||
Preferred stock, no par value; unlimited shares authorized,
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||||||||
none issued and outstanding
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- | - | ||||||
Common stock Class A, no par value; unlimited shares authorized,
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||||||||
601,265,006 and 586,720,411 shares issued and outstanding, respectively
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6,295,920 | 5,385,920 | ||||||
Common stock Class B, no par value; unlimited shares authorized,
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||||||||
no shares issued and outstanding
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- | - | ||||||
Common Stock Issuable, 1,122,311 and 1,122,311 shares, respectively
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22,000 | 22,000 | ||||||
Additional paid-in capital
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920,337 | 920,337 | ||||||
Deficit accumulated during the development stage
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(7,886,592 | ) | (7,234,752 | ) | ||||
. | ||||||||
Total Stockholders' Deficit
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(648,335 | ) | (906,495 | ) | ||||
Total Liabilities and Stockholders' Deficit
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$ | 283,300 | $ | 223,500 |
Kraig Biocraft Laboratories, Inc.
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(A Development Stage Company)
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Condensed Statements of Operations
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(Unaudited)
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For the Three Months Ended
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For the Six Months Ended
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For the Period from April 25, 2006
(Inception) to
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||||||||||||||||||
June 30, 2012
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March 31, 2011
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June 30, 2012
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June 30, 2011
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June 30, 2012
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||||||||||||||||
Revenue
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$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Operating Expenses
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||||||||||||||||||||
General and Administrative
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230,176 | 141,514 | 275,969 | 224,249 | 1,836,145 | |||||||||||||||
Public Relations
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- | - | - | - | 219,890 | |||||||||||||||
Amortization of Debt Discount
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- | - | - | - | 120,000 | |||||||||||||||
Professional Fees
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11,651 | 2,949 | 33,248 | 20,828 | 319,656 | |||||||||||||||
Officer's Salary
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50,000 | 52,500 | 105,650 | 105,000 | 1,442,044 | |||||||||||||||
Contract Settlement
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- | - | - | - | 107,143 | |||||||||||||||
Research and Development
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210,000 | 140,850 | 210,000 | 232,693 | 1,046,716 | |||||||||||||||
Total Operating Expenses
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501,827 | 337,813 | 624,867 | 582,770 | 5,091,594 | |||||||||||||||
Loss from Operations
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(501,827 | ) | (337,813 | ) | (624,867 | ) | (582,770 | ) | (5,091,594 | ) | ||||||||||
Other Income/(Expenses)
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||||||||||||||||||||
Other income
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3,000 | 2,101 | 3,000 | 2,101 | 7,881 | |||||||||||||||
Interest income
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55 | - | 100 | - | 100 | |||||||||||||||
Change in fair value of embedded derivative liability
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- | - | - | - | (2,790,185 | ) | ||||||||||||||
Change in fair value of embedded derivative liability-related party
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- | - | - | - | 119,485 | |||||||||||||||
Interest expense
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(15,036 | ) | - | (30,073 | ) | - | (132,279 | ) | ||||||||||||
Total Other Income/(Expenses)
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(11,981 | ) | 2,101 | (26,973 | ) | 2,101 | (2,794,998 | ) | ||||||||||||
Net (Income) Loss before Provision for Income Taxes
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(513,808 | ) | (335,712 | ) | (651,840 | ) | (580,669 | ) | (7,886,592 | ) | ||||||||||
Provision for Income Taxes
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- | - | - | - | - | |||||||||||||||
Net Income (Loss)
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$ | (513,808 | ) | $ | (335,712 | ) | $ | (651,840 | ) | $ | (580,669 | ) | $ | (7,886,592 | ) | |||||
Net Income (Loss) Per Share - Basic and Diluted
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$ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | ||||||||
Weighted average number of shares outstanding during the period - Basic and Diluted
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591,010,940 | 570,826,206 | 590,839,237 | 562,903,918 |
Kraig Biocraft Laboratories, Inc.
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(A Development Stage Company)
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Condensed Statement of Changes in Stockholders Deficit
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Condensed For the period from April 25, 2006 (inception) to June 30, 2012
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(Unaudited)
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Preferred
Stock
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Common Stock -
Class A
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Common Stock -
Class B
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Common Stock -
Class A Shares |
Deferred
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Deficit
Accumulated during
Development
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|||||||||||||||||||||||||||||||
Shares
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Par
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Shares
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Par
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Shares
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Par
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Shares
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Par
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APIC
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Compensation
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Stage
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Total
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|||||||||||||||||||||||||
Balance, April 25, 2006
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- | $ | - | - | $ | - | - | $ | - | - | $ | - | $ | - | - | $ | - | $ | - | |||||||||||||||||
Stock issued to founder
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- | - | 332,292,000 | 180 | - | - | - | - | - | - | - | 180 | ||||||||||||||||||||||||
Stock issued for services ($.01/share)
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- | - | 17,500,000 | 140,000 | - | - | - | - | - | - | - | 140,000 | ||||||||||||||||||||||||
Stock issued for services ($.01/share)
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- | - | 700,000 | 5,600 | - | - | - | - | - | - | - | 5,600 | ||||||||||||||||||||||||
Stock contributed by shareholder
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- | - | (11,666,500 | ) | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||
Stock issued for cash ($.05/share)
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- | - | 4,000 | 200 | - | - | - | - | - | - | - | 200 | ||||||||||||||||||||||||
Stock issued for cash ($.05/share)
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- | - | 4,000 | 200 | - | - | - | - | - | - | - | 200 | ||||||||||||||||||||||||
Fair value of warrants issued
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- | - | - | - | - | - | - | - | 126,435 | - | - | 126,435 | ||||||||||||||||||||||||
Net Loss
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- | - | - | - | - | - | - | - | - | - | (530,321 | ) | (530,321 | ) | ||||||||||||||||||||||
Balance, December 31, 2006
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- | - | 338,833,500 | 146,180 | - | - | - | - | 126,435 | - | (530,321 | ) | (257,706 | ) | ||||||||||||||||||||||
Stock issued for cash ($.01/share)
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- | - | 1,750,000 | 15,000 | - | - | - | - | - | - | - | 15,000 | ||||||||||||||||||||||||
Stock issued for cash ($.01/share)
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- | - | 12,000,000 | 103,000 | - | - | - | - | - | - | - | 103,000 | ||||||||||||||||||||||||
Stock issued for cash ($.0003/share)
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- | - | 9,000,000 | 3,000 | - | - | - | - | - | - | - | 3,000 | ||||||||||||||||||||||||
Stock issued for cash ($.01/share)
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- | - | 1,875,000 | 15,000 | - | - | - | - | - | - | - | 15,000 | ||||||||||||||||||||||||
Stock issued for cash ($.01/share)
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- | - | 1,875,000 | 15,000 | - | - | - | - | - | - | - | 15,000 | ||||||||||||||||||||||||
- | ||||||||||||||||||||||||||||||||||||
Stock issued for services ($.01/share)
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- | - | 2,000,000 | 16,000 | - | - | - | - | - | - | - | 16,000 | ||||||||||||||||||||||||
Stock issued for cash ($.01/share)
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- | - | 13,125,000 | 105,000 | - | - | - | - | - | - | - | 105,000 | ||||||||||||||||||||||||
Stock issued for cash ($.003/share)
|
- | - | 80,495,000 | 241,485 | - | - | - | - | - | - | - | 241,485 | ||||||||||||||||||||||||
Stock issued for cash ($.003/share)
|
- | - | 200,000 | 600 | - | - | - | - | - | - | - | 600 | ||||||||||||||||||||||||
Stock issued for cash ($.003/share)
|
- | - | 8,300,000 | 24,900 | - | - | - | - | - | - | - | 24,900 | ||||||||||||||||||||||||
Stock issued for cash ($.003/share)
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- | - | 25,000 | 75 | - | - | - | - | - | - | - | 75 | ||||||||||||||||||||||||
Stock issued for cash ($.003/share)
|
- | - | 120,000 | 360 | - | - | - | - | - | - | - | 360 | ||||||||||||||||||||||||
Stock issued for cash ($.003/share)
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- | - | 1,025,000 | 3,075 | - | - | - | - | - | 3,075 | ||||||||||||||||||||||||||
Stock issued in connection to cash offering
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- | - | 28,125,000 | 84,375 | - | - | - | - | (84,375 | ) | - | - | - | |||||||||||||||||||||||
Stock issued for services ($.01/share)
|
- | - | 600,000 | 6,000 | - | - | - | - | - | - | - | 6,000 | ||||||||||||||||||||||||
Net loss, for the year ended December 31, 2007
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- | - | - | - | - | - | - | - | - | - | (472,986 | ) | (472,986 | ) | ||||||||||||||||||||||
Balance, December 31, 2007
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- | - | 499,348,500 | 779,050 | - | - | - | - | 42,060 | - | (1,003,307 | ) | (182,197 | ) | ||||||||||||||||||||||
Stock issuable for services ($.01/share)
|
- | - | - | - | - | - | 400,000 | 4,000 | - | - | - | 4,000 | ||||||||||||||||||||||||
Net loss, for the year ended December 31, 2008
|
- | - | - | - | - | - | - | - | - | - | (1,721,156 | ) | (1,721,156 | ) | ||||||||||||||||||||||
Balance, December 31, 2008
|
- | - | 499,348,500 | 779,050 | - | - | 400,000 | 4,000 | 42,060 | - | (2,724,463 | ) | (1,899,353 | ) | ||||||||||||||||||||||
Stock issued for cash ($.01/share)
|
- | - | 2,500,000 | 25,000 | - | - | - | - | - | - | - | 25,000 | ||||||||||||||||||||||||
Stock issued for cash ($.008/share)
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- | - | 366,599 | 3,000 | - | - | - | - | - | - | - | 3,000 | ||||||||||||||||||||||||
Stock issued for services
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- | - | 280,000 | 14,000 | - | - | 722,311 | 18,000 | - | - | - | 32,000 | ||||||||||||||||||||||||
Stock issued for services
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- | - | - | - | - | - | 10,000,000 | 200,000 | - | (103,333 | ) | - | 96,667 | |||||||||||||||||||||||
Net loss for the year ended December 31, 2009
|
- | - | - | - | - | - | - | - | - | - | (1,432,091 | ) | (1,432,091 | ) | ||||||||||||||||||||||
Balance, December 31, 2009
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- | - | 502,495,099 | 821,050 | - | - | 11,122,311 | 222,000 | 42,060 | (103,333 | ) | (4,156,554 | ) | (3,174,777 | ) | |||||||||||||||||||||
Stock issued for services ($.01/share)
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- | - | 540,000 | 5,400 | - | - | - | - | - | (5,000 | ) | - | 400 | |||||||||||||||||||||||
Stock issued for services ($.02/share)
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- | - | 17,885,915 | 334,000 | - | - | - | - | - | - | - | 334,000 | ||||||||||||||||||||||||
Stock issued for services ($.08/share)
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- | - | 387,500 | 31,000 | - | - | - | - | - | - | - | 31,000 | ||||||||||||||||||||||||
Stock issued for services ($.15/share)
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- | - | 200,000 | 30,000 | - | - | - | - | - | - | - | 30,000 | ||||||||||||||||||||||||
Stock issued for services ($.05/share)
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- | - | 280,000 | 14,000 | - | - | - | - | - | - | - | 14,000 | ||||||||||||||||||||||||
Warrants issued for services
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- | - | - | - | - | - | - | - | 168,000 | (168,000 | ) | - | - | |||||||||||||||||||||||
Stock issued in connection with convertible note conversion
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- | - | 5,694,451 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||
Stock issued in connection with convertible note conversion
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- | - | 854,169 | 15,000 | - | - | - | - | - | - | - | 15,000 | ||||||||||||||||||||||||
Stock issued for cash ($.02/share)
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- | - | 10,000,000 | 200,000 | - | - | (10,000,000 | ) | (200,000 | ) | - | - | - | - | ||||||||||||||||||||||
Stock issued for cash ($.01/share)
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- | - | 4,000,000 | 28,632 | - | - | - | - | - | - | - | 28,632 | ||||||||||||||||||||||||
Stock issued for cash ($.02/share)
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- | - | 3,667,316 | 70,000 | - | - | - | - | - | - | - | 70,000 | ||||||||||||||||||||||||
Stock issued for cash ($.08/share)
|
- | - | 1,179,245 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||
Stock issued for cash ($.06/share)
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- | - | 1,157,407 | 75,000 | - | - | - | - | - | - | - | 75,000 | ||||||||||||||||||||||||
Exercise of 6,000,000 warrants in exchange for stock
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- | - | 5,177,801 | 10,000 | - | - | - | - | 677,908 | - | - | 687,908 | ||||||||||||||||||||||||
Deferred compensation realized
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- | - | - | - | - | - | - | - | - | 250,333 | - | 250,333 | ||||||||||||||||||||||||
Forgiveness of accrued payable to related party
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- | - | - | - | - | - | - | - | 499,412 | 499,412 | ||||||||||||||||||||||||||
Forgiveness of derivative liability to related party
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- | - | - | - | - | - | - | - | 2,102,795 | 2,102,795 | ||||||||||||||||||||||||||
Net loss for the year ended December 31, 2010
|
- | - | - | - | - | - | - | - | - | - | (1,782,888 | ) | (1,782,888 | ) | ||||||||||||||||||||||
Balance, December 31, 2010
|
- | - | 553,518,903 | 1,834,082 | - | - | 1,122,311 | 22,000 | 3,490,175 | (26,000 | ) | (5,939,442 | ) | (619,185 | ) | |||||||||||||||||||||
Stock issued for cash ($.06/share)
|
- | - | 1,470,588 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||
Stock issued for cash ($.05/share)
|
- | - | 2,083,333 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||
Stock issued for services ($.07/share)
|
- | - | 1,000,000 | 70,000 | - | - | - | - | - | - | - | 70,000 | ||||||||||||||||||||||||
Stock issued for services ($.07/share)
|
- | - | 1,029,412 | 70,000 | - | - | - | - | - | - | - | 70,000 | ||||||||||||||||||||||||
Stock issued for cash ($.07/share)
|
- | - | 1,420,455 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||
Stock issued for cash ($0.07/share)
|
- | - | 1,372,119 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||
Stock issued for cash ($0.08/share)
|
- | - | 1,314,406 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||
Stock issued for cash ($0.06/share)
|
- | - | 1,543,210 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||
Stock issued for license ($0.11/share)
|
- | - | 2,200,000 | 242,000 | - | - | - | - | - | - | - | 242,000 | ||||||||||||||||||||||||
Exercise of 20,000,000 warrants in exchange for stock
|
- | - | 19,767,985 | 2,569,838 | - | - | - | - | (2,569,838 | ) | - | - | - | |||||||||||||||||||||||
Deferred compensation realized
|
- | - | - | - | - | - | - | - | - | 26,000 | - | 26,000 | ||||||||||||||||||||||||
Net loss for the year ended December 31, 2011
|
- | - | - | - | - | - | - | - | - | - | (1,295,310 | ) | (1,295,310 | ) | ||||||||||||||||||||||
Balance, December 31, 2011
|
- | - | 586,720,411 | 5,385,920 | - | - | 1,122,311 | 22,000 | 920,337 | - | (7,234,752 | ) | (906,495 | ) | ||||||||||||||||||||||
Stock issued for cash ($.06/share)
|
- | - | 1,562,500 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||
Stock issued for cash ($.04/share)
|
- | - | 2,403,846 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||
Stock issued for cash ($.05/share)
|
- | - | 1,923,077 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||
Stock issued for cash ($.04/share)
|
- | - | 2,155,172 | 100,000 | - | - | - | - | - | - | - | 100,000 | ||||||||||||||||||||||||
Shares issued for services ($0.10/share)
|
- | - | 3,000,000 | 300,000 | - | - | - | - | - | - | - | 300,000 | ||||||||||||||||||||||||
Shares issued for services ($0.06/share)
|
- | - | 300,000 | 18,000 | - | - | - | - | - | - | - | 18,000 | ||||||||||||||||||||||||
Shares issued for services ($0.06/share)
|
- | - | 1,600,000 | 96,000 | - | - | - | - | - | - | - | 96,000 | ||||||||||||||||||||||||
Shares issued for services ($0.06/share)
|
- | - | 1,600,000 | 96,000 | - | - | - | - | - | - | - | 96,000 | ||||||||||||||||||||||||
Net loss for the six months ended June 30, 2012
|
- | - | - | - | - | - | - | - | - | - | (651,840 | ) | (651,840 | ) | ||||||||||||||||||||||
Balance, June 30, 2012 (Unaudited)
|
- | $ | - | 601,265,006 | $ | 6,295,920 | - | $ | - | 1,122,311 | $ | 22,000 | $ | 920,337 | $ | - | $ | (7,886,592 | ) | $ | (648,335 | ) |
Kraig Biocraft Laboratories, Inc.
|
(A Development Stage Company)
|
Condensed Statements of Cash Flows
|
(unaudited) |
For the Six Months Ended June 30,
|
For the Period from April 25, 2006
(Inception) to
|
|||||||||||
2012
|
2011
|
June 30, 2012
|
||||||||||
Cash Flows From Operating Activities:
|
||||||||||||
Net Loss
|
$ | (651,840 | ) | $ | (580,669 | ) | $ | (7,886,592 | ) | |||
Adjustments to reconcile net loss to net cash used in operations
|
||||||||||||
Depreciation expense
|
2,776 | 2,652 | 8,599 | |||||||||
Stock issuable for services
|
- | - | 22,000 | |||||||||
Change in Fair Value of Derivative Liability
|
- | - | 2,790,703 | |||||||||
Stock issued for services
|
510,000 | 70,000 | 1,418,180 | |||||||||
Amortization of debt discount
|
- | - | - | |||||||||
Warrants issued to employees
|
- | - | 126,435 | |||||||||
Warrants issued to consultants
|
- | - | 168,000 | |||||||||
Deferred compensation realized
|
- | 26,000 | 200,000 | |||||||||
Changes in operating assets and liabilities:
|
||||||||||||
(Increase)Decrease in prepaid expenses
|
(4,000 | ) | - | (4,000 | ) | |||||||
(Increase)Decrease in other receivables
|
- | - | - | |||||||||
Increase in accrued expenses and other payables - related party
|
70,652 | 61,825 | 1,201,237 | |||||||||
(Decrease) Increase in royalty agreement payable - related party
|
- | - | - | |||||||||
Increase in accounts payable
|
(266,828 | ) | 58,479 | 214,672 | ||||||||
Net Cash Used In Operating Activities
|
(339,240 | ) | (361,713 | ) | (1,740,766 | ) | ||||||
Cash Flows From Investing Activities:
|
||||||||||||
Loan receivable
|
- | - | (6,000 | ) | ||||||||
Interest receivable
|
(100 | ) | - | (45 | ) | |||||||
Purchase of Fixed Assets and Domain Name
|
- | - | (27,914 | ) | ||||||||
Net Cash Used In Investing Activities
|
(100 | ) | - | (33,959 | ) | |||||||
Cash Flows From Financing Activities:
|
||||||||||||
Proceeds from issuance of convertible note
|
- | - | 120,000 | |||||||||
Loan payable
|
(2,184 | ) | (2,031 | ) | 10,083 | |||||||
Proceeds from issuance of common stock
|
400,000 | 370,000 | 1,898,527 | |||||||||
Net Cash Provided by Financing Activities
|
397,816 | 367,969 | 2,028,610 | |||||||||
Net Increase (Decrease) in Cash
|
58,476 | 6,256 | 253,885 | |||||||||
Cash at Beginning of Period
|
195,409 | 92,240 | - | |||||||||
Cash at End of Period
|
$ | 253,885 | $ | 98,496 | $ | 253,885 | ||||||
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
|
$ | - | $ | 2,569,838 | $ | 2,569,838 | ||||||
Shares issued in connection with convertible note payable
|
$ | - | $ | - | $ | 115,000 | ||||||
Beneficial conversion feature on convertible notes and related debt discount
|
$ | - | $ | - | $ | 120,000 |
As of
June 30,
2012
|
As of
December 31,
2011
|
|||||||
Automobile
|
$
|
25,828
|
$
|
25,828
|
||||
Office Equipment
|
2,086
|
2,086
|
||||||
Less Accumulated Depreciation
|
(8,599
|
)
|
(5,823
|
)
|
||||
Total Property and Equipment
|
$
|
19,315
|
$
|
22,091
|
●
|
Common stock Class A, unlimited number of shares authorized, no par value
|
●
|
Common stock Class B, unlimited number of shares authorized, no par value
|
●
|
Preferred stock, unlimited number of shares authorized, no par value
|
ITEM 2.
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
»
|
We expect to spend approximately $100,000 per quarter over the next 12 months on collaborative research and development of high strength polymers. This will represent a substantial increase in the pace of our collaborative research spending. We believe that this research is important to our development of new products.
|
»
|
We expect to spend approximately $13,700 on collaborative research and development of high strength polymers and spider silk protein at the University of Wyoming over the next twelve months. We believe that this research is important to our product development. This level of research spending at the university is also a requirement of our licensing agreement with the university. If our financing will allow, management will give strong consideration to accelerating the pace of spending on research and development within the University of Wyoming’s laboratories.
|
»
|
We will actively consider pursuing collaborative research opportunities with other university laboratories in the area of high strength polymers. If our financing will allow, management will give strong consideration to increasing the depth of our research to include polymer production technologies that are closely related to our core research
|
»
|
We will consider buying an established revenue producing company which is operating in a compatible arena, in order to broaden our financial base and facilitate the commercialization of our products. We expect to use a combination of stock and cash for any such purchase.
|
»
|
We will also actively consider pursuing collaborative research opportunities with both private and university laboratories in areas of research which overlap the company’s existing research and development. One such potential area for collaborative research which the company is considering is protein expression platforms. If our financing will allow, management will give strong consideration to increasing the breadth of our research to include protein expression platform technologies.
|
»
|
We plan to actively pursue collaborative product manufacturing and marketing opportunities for our Monster SilkTM product with companies in the textile and related industries.
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
1.
|
We will continue to educate our management personnel to comply with the disclosure requirements of Securities Exchange Act of 1934 and Regulation S-K; and
|
2.
|
We will increase management oversight of accounting and reporting functions in the future.
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
ITEM 6.
|
EXHIBITS
|
(a) Exhibits
|
Certifications by the Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
Certifications by the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
101
|
Interactive Data Files.
|
KRAIG BIOCRAFT LABORATORIES, INC.
|
|||
Date: August 20, 2012
|
By:
|
/s/ Kim Thompson
|
|
Kim Thompson,
|
|||
Chief Executive Officer and Chief Financial Officer
|
1. I have reviewed this quarterly report on Form 10-Q of Kraig Biocraft Laboratories, Inc.;
|
|||
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|||
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods present in this report;
|
|||
4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|||
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
||
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding their reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
||
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
||
(d)
|
Disclosed in this report any change in the registrant’s internal control over financing reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
||
5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|||
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
||
(b)
|
Any fraud, whether or not material, that involved management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: August 20, 2012
|
|||
/s/ Kim Thompson
|
|||
|
Kim Thompson
Chief Executive Officer (principal executive officer) and Chief Financial Officer (principal financial and accounting officer)
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly represents in all material respects, the financial condition and results of operations of Kraig Biocraft Laboratories, Inc.
|
Date: August 20, 2012
|
|
/s/ Kim Thompson
|
|
Kim Thompson
Chief Executive Officer (principal executive officer) and Chief Financial Officer (principal financial and accounting officer)
|