XOTC:KBLB Kraig Biocraft Laboratories Inc Quarterly Report 10-Q Filing - 6/30/2012

Effective Date 6/30/2012

XOTC:KBLB Fair Value Estimate
Premium
XOTC:KBLB Consider Buying
Premium
XOTC:KBLB Consider Selling
Premium
XOTC:KBLB Fair Value Uncertainty
Premium
XOTC:KBLB Economic Moat
Premium
XOTC:KBLB Stewardship
Premium
 


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 10-Q
 
(Mark One)
 
þ
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2012

OR

o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission File Number 333-146316

KRAIG BIOCRAFT LABORATORIES, INC.
(Exact name of registrant as specified in its charter)
 
Wyoming
 
83-0459707
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)
 
120 N. Washington Square, Suite 805, Lansing, Michigan 48933
(Address of principal executive offices) (Zip Code)

(517) 336-0807
(Registrant's telephone number, including area code)

N/A
(Former name, former address and former fiscal year, if changed since last report)

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 þ   No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 þ  No o
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer
o
Accelerated filer
o
Non-accelerated filer
o
Smaller reporting company
þ
(Do not check if a smaller reporting company)
     
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes o  No  þ

There were 601,265,006 shares of the registrant’s common stock, no par value, outstanding as of August 17, 2012.
 


 
 

 
TABLE OF CONTENTS
 
     
Page
 
PART I - Financial Information
         
Item 1.
Financial Statements.
     
         
 
Condensed Balance Sheets as of June 30, 2012 (Unaudited) and December 31, 2011
    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)
    F-3  
           
 
Condensed Statement of Changes in Stockholders’ Deficit for the period from April 25, 2006 (Inception) to June 30, 2012 (Unaudited)
    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)
    F-5  
           
 
Notes to Condensed Financial Statements (Unaudited)
    F-6  
           
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
    3  
           
Item 4.
Controls and Procedures
    6  
           
PART II - Other Information
           
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
    7  
           
Item 6.
Exhibits.
    7  
           
Signatures     8  
           
Exhibits/Certifications        
 
 
2

 
 
PART 1.  FINANCIAL INFORMATION 
 
ITEM 1.
FINANCIAL STATEMENTS
 
Kraig Biocraft Laboratories, Inc.
(A DEVELOPMENT STAGE COMPANY)
 
CONTENTS
 
PAGE
F-2
CONDENSED BALANCE SHEETS AS OF JUNE 30, 2012 (UNAUDITED) AND DECEMBER 31, 2011.
     
PAGE
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).
     
PAGES
F-4
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS’ DEFICIT FOR THE PERIOD FROM APRIL 25, 2006 (INCEPTION) TO JUNE 30, 2012 (UNAUDITED).
     
PAGE
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).
     
PAGES
F-6 - F-21
NOTES TO CONDENSED FINANCIAL STATEMENTS (UANUDITED).

 
F-1

 
Kraig Biocraft Laboratories, Inc.
(A Development Stage Company)
Condensed Balance Sheets
 
ASSETS
             
   
June 30,
2012
   
December 31, 2011
 
   
(Unaudited)
       
Current Assets
           
Cash
  $ 253,885     $ 195,409  
Prepaid expenses
    4,000       -  
Loan receivable
    6,000       6,000  
Interest receivable
    100       -  
     Total Current Assets
    263,985       201,409  
                 
Property and Equipment, net
    19,315       22,091  
                 
Total Assets
  $ 283,300     $ 223,500  
                 
LIABILITIES AND STOCKHOLDERS' DEFICIT
 
Current Liabilities
               
Accounts payable and accrued expenses
  $ 214,673     $ 481,517  
Current portion of loan payable
    3,811       3,811  
Royalty agreement payable - related party
    67,000       67,000  
Accrued expenses  - related party
    634,879       564,211  
Total Current Liabilities
    920,363       1,116,539  
                 
Long Term Liabilities
               
Convertible note payable - net of debt discount
    5,000       5,000  
Loan payable, net of current portion
    6,272       8,456  
                 
Total Liabilities
    931,635       1,129,995  
                 
Commitments and Contingencies
               
                 
Stockholders' Deficit
               
Preferred stock, no par value; unlimited shares authorized,
               
none issued  and outstanding
    -       -  
Common stock Class A,  no par value; unlimited shares authorized,
               
601,265,006 and 586,720,411 shares issued and outstanding, respectively
    6,295,920       5,385,920  
Common stock Class B,  no par value; unlimited shares authorized,
               
no shares issued and outstanding
    -       -  
Common Stock Issuable, 1,122,311 and 1,122,311 shares, respectively
    22,000       22,000  
Additional paid-in capital
    920,337       920,337  
Deficit accumulated during the development stage
    (7,886,592 )     (7,234,752 )
      .          
Total Stockholders' Deficit
    (648,335 )     (906,495 )
                 
Total Liabilities and Stockholders' Deficit
  $ 283,300     $ 223,500  
 
 
F-2

 
 
Kraig Biocraft Laboratories, Inc.
(A Development Stage Company)
Condensed Statements of Operations
(Unaudited)
 
   
For the Three Months Ended
   
For the Six Months Ended
   
For the Period from April 25, 2006
(Inception) to
 
   
June 30, 2012
   
March 31, 2011
   
June 30, 2012
   
June 30, 2011
   
June 30, 2012
 
                               
Revenue
  $ -     $ -     $ -     $ -     $ -  
                                         
Operating Expenses
                                       
General and Administrative
    230,176       141,514       275,969       224,249       1,836,145  
Public Relations
    -       -       -       -       219,890  
Amortization of Debt Discount
    -       -       -       -       120,000  
Professional Fees
    11,651       2,949       33,248       20,828       319,656  
Officer's Salary
    50,000       52,500       105,650       105,000       1,442,044  
Contract Settlement
    -       -       -       -       107,143  
Research and Development
    210,000       140,850       210,000       232,693       1,046,716  
Total Operating Expenses
    501,827       337,813       624,867       582,770       5,091,594  
                                         
Loss from Operations
    (501,827 )     (337,813 )     (624,867 )     (582,770 )     (5,091,594 )
                                         
Other Income/(Expenses)
                                       
Other income
    3,000       2,101       3,000       2,101       7,881  
Interest income
    55       -       100       -       100  
Change in fair value of embedded derivative liability
    -       -       -       -       (2,790,185 )
Change in fair value of embedded derivative liability-related party
    -       -       -       -       119,485  
Interest expense
    (15,036 )     -       (30,073 )     -       (132,279 )
Total Other Income/(Expenses)
    (11,981 )     2,101       (26,973 )     2,101       (2,794,998 )
                                         
Net (Income) Loss before Provision for Income Taxes
    (513,808 )     (335,712 )     (651,840 )     (580,669 )     (7,886,592 )
                                         
Provision for Income  Taxes
    -       -       -       -       -  
                                         
Net Income (Loss)
  $ (513,808 )   $ (335,712 )   $ (651,840 )   $ (580,669 )   $ (7,886,592 )
                                         
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
    591,010,940       570,826,206       590,839,237       562,903,918          

 
F-3

 
 
Kraig Biocraft Laboratories, Inc.
(A Development Stage Company)
 Condensed Statement of Changes in Stockholders Deficit
Condensed For the period from April 25, 2006 (inception) to June 30, 2012
(Unaudited)
 
 
Preferred
Stock
 
Common Stock -
Class A
 
Common Stock -
Class B
 
Common Stock -
Class A Shares
To be issued
     
Deferred
 
Deficit
Accumulated during
Development
     
 
Shares
 
Par
 
Shares
 
Par
 
Shares
 
Par
 
Shares
 
Par
 
APIC
 
Compensation
 
Stage
 
Total
 
                                                 
Balance, April 25, 2006
  -   $ -     -   $ -     -   $ -     -   $ -   $ -     -   $ -   $ -  
                                                                         
Stock issued to founder
  -     -     332,292,000     180     -     -     -     -     -     -     -     180  
                                                                         
Stock issued for services ($.01/share)
  -     -     17,500,000     140,000     -     -     -     -     -     -     -     140,000  
                                                                         
Stock issued for services ($.01/share)
  -     -     700,000     5,600     -     -     -     -     -     -     -     5,600  
                                                                         
Stock contributed by shareholder
  -     -     (11,666,500 )   -     -     -     -     -     -     -     -     -  
                                                                         
Stock issued for cash ($.05/share)
  -     -     4,000     200     -     -     -     -     -     -     -     200  
                                                                         
Stock issued for cash ($.05/share)
  -     -     4,000     200     -     -     -     -     -     -     -     200  
                                                                         
Fair value of warrants issued
  -     -     -     -     -     -     -     -     126,435     -     -     126,435  
                                                                         
Net Loss
  -     -     -     -     -     -     -     -     -     -     (530,321 )   (530,321 )
                                                                         
Balance, December 31, 2006
  -     -     338,833,500     146,180     -     -     -     -     126,435     -     (530,321 )   (257,706 )
                                                                         
Stock issued for cash ($.01/share)
  -     -     1,750,000     15,000     -     -     -     -     -     -     -     15,000  
                                                                         
Stock issued for cash ($.01/share)
  -     -     12,000,000     103,000     -     -     -     -     -     -     -     103,000  
                                                                         
Stock issued for cash ($.0003/share)
  -     -     9,000,000     3,000     -     -     -     -     -     -     -     3,000  
                                                                         
Stock issued for cash ($.01/share)
  -     -     1,875,000     15,000     -     -     -     -     -     -     -     15,000  
                                                                         
Stock issued for cash ($.01/share)
  -     -     1,875,000     15,000     -     -     -     -     -     -     -     15,000  
                                                                      -  
Stock issued for services ($.01/share)
  -     -     2,000,000     16,000     -     -     -     -     -     -     -     16,000  
                                                                         
Stock issued for cash ($.01/share)
  -     -     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)
  -     -     25,000     75     -     -     -     -     -     -     -     75  
                                                                         
Stock issued for cash ($.003/share)
  -     -     120,000     360     -     -     -     -     -     -     -     360  
                                                                         
Stock issued for cash ($.003/share)
  -     -     1,025,000     3,075           -           -     -     -     -     3,075  
                                                                         
Stock issued in connection to cash offering
  -     -     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
  -     -     -     -     -     -     -     -     -     -     (472,986 )   (472,986 )
                                                                         
Balance, December 31, 2007
  -     -     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)
  -     -     366,599     3,000     -     -     -     -     -     -     -     3,000  
                                                                         
Stock issued for services
  -     -     280,000     14,000     -     -     722,311     18,000     -     -     -     32,000  
                                                                         
Stock issued for services
  -     -     -     -     -     -     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
  -     -     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)
  -     -     540,000     5,400     -     -     -     -     -     (5,000 )   -     400  
                                                                         
Stock issued for services ($.02/share)
  -     -     17,885,915     334,000     -     -     -     -     -     -     -     334,000  
                                                                         
Stock issued for services ($.08/share)
  -     -     387,500     31,000     -     -     -     -     -     -     -     31,000  
                                                                         
Stock issued for services ($.15/share)
  -     -     200,000     30,000     -     -     -     -     -     -     -     30,000  
                                                                         
Stock issued for services ($.05/share)
  -     -     280,000     14,000     -     -     -     -     -     -     -     14,000  
                                                                         
Warrants issued for services
  -     -     -     -     -     -     -     -     168,000     (168,000 )   -     -  
                                                                         
Stock issued in connection with convertible note conversion
  -     -     5,694,451     100,000     -     -     -     -     -     -     -     100,000  
                                                                         
Stock issued in connection with convertible note conversion
  -     -     854,169     15,000     -     -     -     -     -     -     -     15,000  
                                                                         
Stock issued for cash ($.02/share)
  -     -     10,000,000     200,000     -     -     (10,000,000 )   (200,000 )   -     -     -     -  
                                                                         
Stock issued for cash ($.01/share)
  -     -     4,000,000     28,632     -     -     -     -     -     -     -     28,632  
                                                                         
Stock issued for cash ($.02/share)
  -     -     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)
  -     -     1,157,407     75,000     -     -     -     -     -     -     -     75,000  
                                                                         
Exercise of 6,000,000 warrants in exchange for stock
  -     -     5,177,801     10,000     -     -     -     -     677,908     -     -     687,908  
                                                                         
Deferred compensation realized
  -     -     -     -     -     -     -     -     -     250,333     -     250,333  
                                                                         
Forgiveness of accrued payable to related party
  -     -     -     -     -     -     -     -     499,412                 499,412  
                                                                         
Forgiveness of derivative liability to related party
  -     -     -     -     -     -     -     -     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 )   -     -     -