Kraig Biocraft Laboratories Issues a Letter to Shareholders on Recent Advancements and Potential Recombinant Spider Silk Deliveries in 2025

Rhea-AI Summary

Kraig Biocraft Laboratories (KBLB) issued a shareholder letter detailing significant advancements in their spider silk technology. The company has developed a new production strain for their double hybrid system, expected to improve silk production rates by over 25% monthly. Their current BAM-1 single hybrid system, introduced in 2024, has shown substantial improvements in robustness and silk production, matching the resilience of Chinese commercial silk hybrids. The company has stockpiled several hundred kilograms of cocoons in Q1 2025 and plans to include cocoon inventory in future work-in-progress reporting. KBLB is preparing for commercial deliveries to three major global brands in the second half of 2025: a luxury fashion brand, a high-end performance sportswear company, and a top-5 athletic equipment producer, all of whom have expressed commitment through quotes or approved budgets.

Positive

• Development of new spider silk production strain completed on schedule, advancing double hybrid system implementation
• New double hybrid system expected to improve silk production rates by over 25% per month
• BAM-1 hybrid system shows robustness comparable to Chinese commercial silk hybrids
• Several hundred kilograms of cocoon inventory stockpiled in Q1 2025
• Secured commitments from three major global brands for commercial deliveries in H2 2025

Negative

• Production affected by seasonal challenges during rainy season
• 10-30% of silk production typically lost due to diseases and adverse weather conditions
• Current inventory reporting doesn't reflect total production due to unreeled cocoon stockpile

ANN ARBOR, Mich., June 03, 2025 (GLOBE NEWSWIRE) -- Kraig Biocraft Laboratories, Inc. (OTCQB: KBLB) ("Company" or "Kraig Labs"), a world leader in spider silk technology*, issues a letter to shareholders.

Dear Shareholders,

We recently received inquiries from several of our shareholders. In preparing those responses, we realized that we should share the contents with the broader Kraig Labs community. Many had questions related to last week's announcement of the development of the new production strain and the potential for commercial deliveries in 2025.

The development of a new spider silk production transgenic has been a key part of our production roadmap since 2023 and a primary objective of our genetics team during the last 18 months. Our longstanding plans were to field a new strain of silkworm for our double hybrid production system in the Summer of 2025. To be frank, we were unsure whether we could meet that ambitious schedule. We were, therefore, ecstatic to announce that we created another world's first development on schedule. This and many of our other laboratory announcements are not only significant; they're foundational technology building blocks to our success.

Our current single hybrid system, utilizing BAM-1, has already shown massive improvement in robustness and silk production output. The newly announced strain is another significant improvement in our production, moving us a significant step closer to a more powerful double hybrid. The double hybrid model is designed to significantly improve our silk production rate; we expect by as much as 25+% per month, so this is something that we were very excited to share with our shareholders.

We are no longer experiencing the robustness challenges we faced with single-strain rearing. Before the rollout of the BAM-1 hybrid in 2024, our silkworms lacked the robustness to deal with the silkworm diseases and environmental stress that are frequently present in the field. In terms of robustness and disease tolerance, the BAM-1 appears to be on par with the Chinese commercial silk hybrid, which is the gold standard in that region for the production of mundane silk.

Now, this doesn't mean that we are invincible. Globally, between 10% to 30% of all silk production with robust double hybrids is lost due to a handful of diseases and adverse weather conditions. This is just a part of working with these living production systems. It is a fact that is reflected in global silk economics. Since rolling out the BAM-1, we have dealt with these routine challenges and have weathered these events with similar or identical effects as mundane silk producers utilizing the Chinese hybrid. Right now, the region's sericulture operators are in their rainy season, which is typically the worst time for silkworm rearing. Production of our BAM-1 strains and production of mundane silk producers utilizing Chinese hybrids are negatively impacted during this cycle. That is a normal part of silkworm rearing and is something that all silkworm producers encounter as a normal part of the business.

In the past, before we introduced BAM-1, the effects on our silkworms were significantly magnified and effectively stymied our growth. In short, there has been a revolution in our spider silk production technology over the past 14 months due to the introduction of BAM-1 and other improvements in the field and laboratory. As we meet our marks toward the initiation of the double hybrid, we anticipate our gains to accelerate further.

Regarding inventory calculation, our current inventory figures track finished raw reeled silk. In the first quarter of this year, we stockpiled several hundred kilograms of cocoon that are now waiting to be processed into finished silk. The reason inventory did not increase in our financial report was because that report tracked finished silk or material form. After considering these questions, and in light of the fact that we are moving from nominal inventory to larger scale production, we will expand the scope of our work-in-progress (WIP) material inventory to include recombinant spider silk cocoon that has been completed but not reeled. You can expect us to begin adding completed recombinant spider silk cocoon to our WIP to all future inventory balances.

We are 100% focused on the production of spider silk for commercial delivery. Over the last year, we've been able to move faster to deliver on that commitment. As a great example, we are in regular communication with three major Global brands that are standing by to receive their first shipments of materials. The first is an internationally renowned high-end luxury fashion brand that has already accepted a quote from Kraig Labs. The second is a world leader in high-end performance sportswear with an approved budget to buy silk from us. The third is one of the world's top 5 performance athletic equipment producers, looking for spider silk to integrate into their top-performing products. Supplying products to these three entities is the focus of our current production. Currently, we expect to begin deliveries to these customers in the second half of this year. That will be a significant milestone for Kraig Labs, our shareholders, and material science.

I believe the future for Kraig Labs and spider silk has never been brighter, and we thank you for your continued support.

Kim Thompson, CEO

For the latest updates on Kraig Labs and its pioneering spider silk technologies, visit www.kraiglabs.com.

For details about other recent Kraig Labs advancements, please watch the Company's investor conference at www.kraiglabs.com/videos or on the Company's YouTube Channel https://www.youtube.com/@kraigbiocraftlaboratories2270.

To view the most recent news from Kraig Labs and/or to sign up for Company alerts, please go to www.KraigLabs.com/news   

* For a description of our historical leadership in this technology, please follow this link https://www.kraiglabs.com/world-leader/

About Kraig Biocraft Laboratories, Inc.

Kraig Biocraft Laboratories, Inc. (www.KraigLabs.com), a reporting biotechnology company is the leading developer of genetically engineered spider silk-based fiber technologies.

The Company has achieved a series of scientific breakthroughs in the area of spider silk technology with implications for the global textile industry.

Cautionary Statement Regarding Forward Looking Information

Statements in this press release about the Company's future and expectations other than historical facts are "forward-looking statements." These statements are made on the basis of management's current views and assumptions. As a result, there can be no assurance that management's expectations will necessarily come to pass. These forward-looking statements generally can be identified by phrases such as "believes," "plans," "expects," "anticipates," "foresees," "estimated," "hopes," "if," "develops," "researching," "research," "pilot," "potential," "could" or other words or phrases of similar import. Forward looking statements include descriptions of the Company's business strategy, outlook, objectives, plans, intentions and goals. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security.

Ben Hansel, Hansel Capital, Inc.
(720) 288-8495
ir@KraigLabs.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/afaa22d8-7f0a-4fcb-b905-f58e42ddc46a

FAQ

What is the expected production improvement from KBLB's new double hybrid system?

The new double hybrid system is expected to improve silk production rates by more than 25% per month compared to the current system.

When will Kraig Biocraft (KBLB) begin commercial deliveries of spider silk?

KBLB expects to begin commercial deliveries to three major global brands in the second half of 2025.

How does KBLB's BAM-1 hybrid compare to traditional silk production?

The BAM-1 hybrid shows robustness and disease tolerance comparable to Chinese commercial silk hybrids, which are considered the industry gold standard.

What major brands have committed to purchasing KBLB's spider silk?

Three major brands have committed: a luxury fashion brand, a high-end performance sportswear company, and one of the world's top 5 athletic equipment producers.

How much spider silk inventory does KBLB currently have?

KBLB has several hundred kilograms of cocoon inventory from Q1 2025 waiting to be processed into finished silk.