Well, no matter how excited you might be about KBLB's potential you shouldn't take the risks around the company lightly. The company may receive some proceeds from its US Army contract but for now they will barely have any positive effect on its financial state. Don't forget that at the end of the first quarter of the year KBLB reported the following results:
• $187 thousand cash
• $187,252 thousand total current assets
• $2.38 million total current liabilities
• ZERO revenues
• $509 thousand net loss
In order to raise some much needed funds between January and May KBLB had to sell approximately 18 million shares at $0.018. In addition, in April and May around 9.5 million shares were printed as a cashless exercise of warrants. As of May 5 KBLB had 734 million outstanding shares. The company doesn't have to worry about maxing out its authorized amount of shares because it actually has unlimited authorized shares.
The volatility of the stock and the serious red flags must be taken into account when contemplating whether to put any money into KBLB or not.