After a tremendous gain last week, Kraig Biocraft Laboratories Inc (OTC:KBLB) aimed the bottom of the chart again. A couple 
of days ago, the stock cut off the up move and yesterday it lost the next 12% of its price.
The sudden price fall was accompanied by an enormous trading volume, which exceeded 3 million shares for the day. Apparently, investors lost confidence in KBLB and started dumping off shares intensively.
The one and only rational reason for the low trade turns out to be the latest annual report of Kraig Labs. Obviously being filed, the 10-K caused great disappointment among traders and the stock rushed back down.
According to the financial report, as of December 31, 2010 the liabilities of KBLB were six times higher than its total assets and the deficit accumulated during the development stage period has already reached approximately $6 million. At the same time, the stockholders’ deficit remained negative and the net loss increased even more.[BANNER]
As already reported on hotstocked.com, last week KBLB hit the gain on optimistic news and promotions, though the climb didn’t survive for long. Now the so called company’s management is worried about its current financial condition and anticipates that more operating losses will be incurred in the foreseeable future, which will threaten the company’s existence.
The most impressive fact in the annual report, however, appears to be the statement that Kraig Labs has no employees other than Kim Thompson, its sole officer and director. In this case, how is the company supposed to continue operating with no cash and no employees?
