Kraig Biocraft Laboratories Stock

Kraig Biocraft Laboratories, Inc. (Kraig) develops high strength fibers using recombinant DNA technology for commercial applications in technical textile.

The company uses genetically engineered silkworms that produce spider silk proteins to create its recombinant spider silk. Applications include performance apparel, workwear, filtration, luxury fashion, flexible composites, medical implants, cosmetics and more. The company has been a leader in the research and development of commercially scalable spider silk for technical textile and non-fibrous applications. The company's primary proprietary fiber technology includes natural and engineered variants of spider silk produced in domesticated mulberry silkworms.

The company is using genetic engineering technologies to develop fibers with greater strength, resiliency and flexibility for use in its target markets, namely the specialty fiber and technical textile industries.

In January 2022, the company completed production of the first Dragon Silk yarn produced entirely in Vietnam. The finished recombinant spider silk yarn was spun from raw spider silk produced at Prodigy Textiles. The company plans to ship this Dragon Silk yarn to SpydaSilk Enterprises in Singapore, a joint venture partially owned by the company for weaving into fabrics and finished garments. The company expects that Prodigy Textiles will continue to leverage expanding silk production to address the material needs of SpydaSilk and make additional materials available for purchase to fill the numerous and backlogged material requests it has received.

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.

Strategic Partnership

On November 23, 2020, the company entered into a Strategic Partnership Agreement (the SPA) with Mthemovement Kings Pte Ltd (Kings). Kings is an eco-friendly luxury streetwear apparel line, part of the Kings Group of Companies and its affiliated companies. On January 25, 2021, the parties exchanged signatures for an amendment to the Agreement, which amended the procedures for termination of the SPA to only allow for the termination of the SPA by mutual agreement of the company and Kings following a consultation period of 120 (one hundred and twenty) calendar days or such period as agreed otherwise between the parties (the 'Amendment', together with the SPA, the 'Agreement').

Pursuant to the Agreement, the parties have formed a joint venture to develop and sell the company's spider silk fibers under the new innovative apparel and fashion brand, trade named SpydaSilk and potential other trademarks to be announced. All intellectual property related to SpydaSilk will be jointly owned by the company and Kings. Under the terms of the Agreement, the company granted the joint venture and the SpydaSilk Enteprises Pte. Ltd. brand an exclusive geographic license to all the company's technologies for the Association of Southeast Asian Nations. The Agreement has a 60-month term, which can be terminated at any time by mutual agreement following a consultation period of 120 days, or such other period as agreed by the parties.

The Product

The company's products exploit the unique characteristics of spider silk, specifically dragline silk from Nephila clavipes (golden orb-web spider) and variants thereof. Such fibers possess unique mechanical properties in terms of strength, resilience and flexibility. Through the use of genetic engineering, the company has produced a variety of unique transgenic silkworm strains that produce recombinant spider silk. The company's recombinant spider silk fiber blends the silk proteins found in spider silk with the native silkworm silk proteins. This approach allows for the eco-responsible production of spider silk at commercial production levels.

Monster Silk

Monster Silk was the first recombinant spider silk fiber product the company developed. Monster Silk incorporates the natural elasticity of spider silk to make a silk fiber which is more flexible that conventional silk fibers and textiles. The company has produced sample products using Monster Silk, including knit fabrics, gloves, and shirts in collaboration with textile mills. The company expects that Monster Silk will have market applications across the traditional textile markets where its increased flexibility will provide increased durability and comfort.

Dragon Silk

Dragon Silk is the next evolution in recombinant spider silk, combining the elasticity of Monster Silk with additional high strength elements of native spider silk. Some samples of Dragon Silk have demonstrated strength beyond that of native spider silk. This combination of strength and elasticity results in a silk fiber which is soft and flexible, yet tougher than leading synthetic fiber available on the market. Based on inquires the company has received from end market leaders, Dragon Silk will have applications in performance apparel, durable workwear, luxury goods and apparel, and composites.

Other Products

The company is continuing to develop new recombinant silks and other protein-based fibers and materials using its genetic engineering capabilities. The company's silkworm based knock-in knock-out production and development platform has significant advantages over its legacy technology which created Dragon Silk and Monster Silk. Chief among these is the potential to produce spider silks with greatly increased purity and performance. Due to the biocompatible and biodegradable properties of silk, the materials developed using this higher purity process will create opportunities for products in the medical industry, including sutures, grafts, and implants.

License Agreements/Intellectual Property

The company has obtained certain rights to use a number of university created, and patented gene splicing and spider silk protein technologies.

As part of the joint development program with the University of Notre Dame and the Notre Dame Agreements, Kraig Labs negotiated an option for exclusive global commercial rights to technologies jointly developed with Notre Dame. Kraig Labs has exercised that option. As of December 31, 2022, four patents relating to the jointly developed technologies have been issued, number 10-1926286 in South Korea, number 2011314072 in Australia, number 26612 in Vietnam, and number 2,812,791 in Canada. These jurisdictions are a mix of silk producing and consuming countries.

In addition to the patents related to licensed technologies from the University of Notre Dame, Kraig Labs has filed a number of patent applications and provisional applications based on technologies developed solely within the company's own laboratories. Kraig has filed two such patent applications and four provisional patent applications based on technologies developed and discoveries from the company's own independent research operations.

In addition to patent protection for intellectual property developed by the company and through its collaborative research agreements, the company has developed specialized skills and knowledge in the field of selective breeding, performance selection, and husbandry.

Marks

In 2014, six trademarks were issued to the company, including Monster Silk; Spiderpillar; Spilk; Monster Worm; Spider Worm; and Spider Moth.

Notre Dame Agreements

In June 2012, the company entered into an Intellectual Property / Collaborative Research Agreement with the University of Notre Dame (2012 Notre Dame Research Agreement).

In 2011, the company exercised its option to obtain the global commercialization rights to the technology developed under the Notre Dame Agreements, which resulted in a separate license agreement with the University of Notre Dame (the 2011 Notre Dame Agreement). Pursuant to the 2011 Notre Dame Agreement, the University of Notre Dame filed an international patent application and numerous national patent applications on technology relating to the creation and use of recombinant spider silks and the company received exclusive and non-exclusive rights to certain spider silk and gene splicing technologies, including commercial rights with the right to sublicense such intellectual property.

Research and Development

During year ended December 31, 2022, the company incurred $176,431 on research and development expenses.

Competition

The company's competitors include Bolt Threads, Inc.; Spiber Inc.; and AMSilk.

History

Kraig Biocraft Laboratories, Inc. was founded in 2006. The company was incorporated under the laws of Wyoming in 2006.