Kraig Biocraft Laboratories, Inc. reported significant financial challenges in its 10-Q filing for the period ending September 30, 2024. The company recorded no revenue for both the three and nine months ended September 30, 2024, consistent with the same periods in 2023. The total assets decreased to $2,026,358 from $3,232,822 at the end of 2023, while total liabilities rose to $9,383,367 from $8,939,978, resulting in a stockholders’ deficit of $(7,357,009), up from $(5,707,156).

For the three months ended September 30, 2024, the net loss improved to $(433,200) from $(549,273) in the same period of the previous year, marking a 21.13% reduction. Total operating expenses decreased slightly to $423,797 from $459,445, with general and administrative expenses also declining by 8.63% to $205,298. Research and development costs fell significantly by 36.19% to $24,968, reflecting a strategic shift in spending.

However, for the nine months ended September 30, 2024, the net loss increased to $(2,547,264), a 49.39% rise from $(1,705,146) in the prior year. Total operating expenses surged by 65.32% to $2,358,645, driven by a 123.53% increase in general and administrative expenses, which reached $1,467,411. Professional fees also saw a substantial rise of 147.57% to $221,302.

The company’s cash and cash equivalents decreased to $1,190,027 from $2,551,834 at the end of 2023, indicating a cash flow strain. Net cash used in operations for the nine months was $(1,326,563), compared to $(916,762) in the previous year. The working capital deficiency worsened to $8,102,679 from $6,311,900.

Strategically, Kraig Biocraft Laboratories has been focusing on enhancing its research and development capabilities, including a recent memorandum of understanding with the Vietnam Sericulture Association to bolster sericulture in Vietnam. The company is also exploring potential acquisitions to broaden its financial base and facilitate product commercialization, although no formal discussions have been initiated.

The company continues to face substantial doubt regarding its ability to continue as a going concern without additional financing. Management plans to improve operations by raising capital, controlling expenses, and executing material sales or research contracts. The company has acknowledged weaknesses in its internal controls and is working towards establishing effective disclosure procedures.