f10q0311_kraigbiocraft.htm 10-Q 1 f10q0311_kraigbiocraft.htm QUARTERLY REPORT
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 10-Q

(Mark One)

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

For the quarterly period ended March 31, 2011

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  
  
(I.R.S. Employer
of incorporation or organization) 
  
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 x   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 o  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
  
¨
  
Accelerated filer
  
¨
       
Non-accelerated filer
  
¨  (Do not check if a smaller reporting company)
  
Smaller reporting company
  
x
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes o   Nox

There were 558,918,624 shares of the registrant’s common stock, no par value, outstanding as of May 13, 2010.
 
 
 
 

TABLE OF CONTENTS
 
 
Page
PART I Financial Information
  
   
Item 1. Financial Statements.
  1
   
Condensed Balance Sheets as of March 31, 2011 (Unaudited) and December 31, 2010
  F-1
   
Condensed Statements of Operations for the three months ended March 31, 2011 and 2010 (Unaudited) and for the period from April 25, 2006 (Inception) to March 31, 2011 (Unaudited)
  F-2
   
Condensed Statement of Changes in Stockholders’ Deficit for the period from April 25, 2006 (Inception) to March 31, 2011 (Unaudited)
  F-3
   
Consolidated Statements of Cash Flows for the three months ended March 31, 2011 and 2010 (Unaudited) and for the period from April 25, 2006 (Inception) to March 31, 2011 (Unaudited)
  F-4
   
Notes to Condensed Financial Statements (Unaudited)
  F-5
   
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
  2
   
Item 4T. Controls and Procedures
  4
   
PART II Other Information
   5
   
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
5
   
Item 5. Other Information
5
   
Item 6. Exhibits.
  5
   
Signatures
  6
   
Exhibits/Certifications
  
 
 
 
 

PART I-FINANCIAL INFORMATION  
 
Item 1.     Financial Statements
 
Kraig Biocraft Laboratories, Inc.
(A DEVELOPMENT STAGE COMPANY)
 
CONTENTS
   
PAGE
CONDENSED BALANCE SHEETS AS OF MARCH 31, 2011 (UNAUDITED) AND DECEMBER 31, 2010
  
F-1
     
CONDENSED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010 (UNAUDITED) AND FOR THE PERIOD FROM APRIL 25, 2006 (INCEPTION) TO MARCH 31, 2011 (UNAUDITED)
  
F-2
     
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS’ DEFICIT FOR THE PERIOD FROM APRIL 25, 2006 (INCEPTION) TO MARCH 31, 2011 (UNAUDITED)
  
F-3
     
CONDENSED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010 AND FOR THE PERIOD FROM APRIL 25, 2006 (INCEPTION) TO MARCH 31, 2011 (UNAUDITED)
  
F-4
     
NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
  
F-5
 
 
1
 
 
Kraig Biocraft Laboratories, Inc.
(A Development Stage Company)
Condensed Balance Sheets

   
March 31, 2011
    
December 31, 2010
  
   
(Unaudited)
        
ASSETS
            
Current Assets
            
Cash
   $ 86,295     $ 92,240  
Prepaid Expenses
     —       —  
Total Current Assets
     86,295       92,240  
                 
Property and Equipment, net
     24,968       26,287  
                 
Total Assets
   $ 111,263     $ 118,527  
                 
                 
LIABILITIES AND STOCKHOLDERS' DEFICIT
                
Current Liabilities
                
Accounts payable
   $ 230,869     $ 238,929  
Current portion of loan payable
     3,556       3,556  
Royalty agreement payable - related party
     67,000       67,000  
Accrued expenses - related party
     431,726       410,955  
Total Current Liabilities
     733,151       720,440  
                 
Long Term Liabilities
                
Convertible note payable - net of debt discount
     5,000       5,000  
Loan payable, net of current portion
     11,114       12,272  
                 
Total Liabilities
     749,265       737,712  
                 
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, 557,072,824 and 553,518,903 shares issued and outstanding, respectively
     1,330,632       1,130,632  
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
     (200,000 )     (200,000 )
Additional paid-in capital
     3,448,115       3,448,115  
Deferred Compensation
     108,333       82,333  
Deficit accumulated during the development stage
     (2,027,705 )     (1,782,888 )
      .          
Total Stockholders' Deficit
     2,659,375       2,678,192  
                 
Total Liabilities and Stockholders' Deficit
   $ 3,408,640     $ 3,415,904  
 
See accompanying notes to condensed unaudited financial statements.
 
 
F-1
 
 
Kraig Biocraft Laboratories, Inc.
(A Development Stage Company)
Statements of Operations

   
For the Three Months Ended
    
For the Period from April 25, 2006
  
   
March 31, 2011
    
March 31, 2010
    
(Inception) to March 31, 2011
  
Revenue
   $ —     $ —     $ —  
                         
Operating Expenses
                        
General and Administrative
     96,383       18,143       869,650  
Public Relations
     —       100,000       219,890  
Amrotization of Debt Discount
     —       —       120,000  
Professional Fees
     17,879       4,977       254,384  
Officer's Salary
     52,500       58,390       1,178,894  
Contract Settlement
     —       —       107,143  
Research and Development
     91,843       8,242       677,961  
Total Operating Expenses
     258,605       189,752       3,427,922  
                         
Loss from Operations
     (258,605 )     (189,752 )     (3,427,922 )
                         
Other Income/(Expenses)
                        
Other income
     —       —       2,781  
Amortization of Debt Discount
     —       (91,121 )        
Change in fair value of embedded derivative liability
     —       2,473       (2,790,185 )
Change in fair value of embedded derivative liability-related party
     —       207,108       119,485  
Interest expense
     13,788       (12,161 )     (88,418 )
Total Other Income/(Expenses)
     13,788       106,299       (2,756,337 )
                         
Net (Income) Loss before Provision for Income Taxes
     (244,817 )     (83,453 )     (6,184,259 )
                         
Provision for Income Taxes
     —       —       —  
                         
Net Income (Loss)
   $ (244,817 )   $ (83,453 )   $ (6,184,259 )
                         
Net Income (Loss) Per Share - Basic and Diluted
   $ (0.00 )   $ (0.00 )        
                         
Weighted average number of shares outstanding during the period - Basic and Diluted
     554,803,602       517,071,117          
 
See accompanying notes to condensed unaudited financial statements.
 
 
F-2
 
 
Kraig Biocraft Laboratories, Inc.
(A Development Stage Company)
 Statement of Changes in Stockholders Deficit
Condensed For the period from April 25, 2006 (inception) to March 31, 2011
(Unaudited)

                                       
Common Stock -
                          
                                       
Class A Shares
                
Deficit
        
   
Preferred Stock
    
Common Stock - Class A
    
Common Stock -Class B
    
To be issued
          
Deffered
    
Accumulated during
        
   
Shares
    
Par
    
Shares
    
Par
    
Shares
    
Par
    
Shares
    
Par
    
APIC
    
Compensation
    
Development 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
     -       -       -       -