Spider Silk

ANNUAL REPORT | 2024

Spider Silk | Annual Report 2024

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TABLE OF CONTENTS

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MISSION STATEMENT

DIRECTOR’S MESSAGE

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2024 ANNUAL REVIEW

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LETTER TO OUR SHAREHOLDERS

MISSION STATEMENT

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WHO WE ARE AND WHAT WE DO

MISSION STATEMENT Our mission here at Spider Silk Artificial Bioengineering, is to scientifically produce artifical spider silk in commercial quantities that hold potential life-saving ballistic resistant material, which is lighter, thinner, more flexible, and tougher than steel. Spider Silk Artificial Bioengineering believes that in the near future, genetically engineered spider silk will make significant inroads into the market for high-strength fibers.

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MISSION STATEMENT

MISSION STATEMENT

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MISSION STATEMENT

MISSION STATEMENT

CUSTOMERSERVICE@SPIDERSILK.COM 4837 LONDON STREET | NEW YORK CITY 28475 2

Spider Silk | Annual Report 2024

Spider Silk | Annual Report 2024

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DIRECTOR’S MESSAGE WELCOME THE NEWEST MEMBERS OF THE BOARD

2024 ANNUAL REVIEW

I am delighted to share the Institute of Biomaterials and Biomedical Engineering’s (Spider Silk) 2016-2017 annual report, which showcases our many accomplishments over the past academic year. It has been a great period of growth for Spider Silk. Research impact is central to Spider Silk’s mission, and we continued to lead in this regard globally.

Despite historically-low federal funding rates, total research and student fellowship funding in Spider Silk for 2016-2017 equalled our all-time high.

Spider Silk researchers translated their funding into several discoveries and innovations, including new nanoparticles to target cancer; novel electrical stimulation methods in clinical trials to control bladder function; improved diagnostic tests for rapid determination of risk in acute leukaemia; and injectable patches to repair damaged hearts.

MARSHA CAMPOS

SENIOR VICE PRESIDENT

LEONARD FRANTZ VICE PRESIDENT

SHERYL HILLS

Spider Silk faculty members also continued to drive broader research enterprises at U of T, including as leads of the Medicine by Design program in regenerative medicine and the heart failurefocused Translational Biology and Engineering Program in the Ted Rogers Centre for Heart Research.

Our former associate director of sales, Julie Audet, was appointed vice president of sales, and our former director, Christopher Yip, was appointed

HENRY SIMMONS EXECUTIVE DIRECTOR

to lead global initiatives as U of T’s associate vice-president of international partnerships. Spider Silk is especially proud of Molly Shoichet for receiving the Killiam Prize in Engineering, and Paul Santerre for being recognized with the Governor General’s Innovation Award. I am proud of our progress and accomplishments in the past year.

Henry Simmons | Executive Director

CHARLIE DALTON

SENIOR VICE PRESIDENT

LIAM FREEMAN

SENIOR VICE PRESIDENT

HEATHER BRANT

ASSISTANT BIOLOGICAL ENGINEER

• HE STUDIED MECHANOBIOLOGY AT THE VANDERBILT SCHOOL OF ENGINEERING • FOUNDED SPIDER SILK IN 2015 • COWROTE A BOOK ON ARTIFICIAL BIOENGINEERING NY BESTSELLERS LIST • SPENT OVER 10 YEARS RESEARCHING SPIDER SILK

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Spider Silk | Annual Report 2024

Spider Silk | Annual Report 2024

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FACTS • Founded in 2015 by current director, Henry Simmons.

• Spider Silk is over 20 times stronger than steel.

• Can be used in a variety of military, industrial, and consumer applications.

A LETTER TO OUR SHAREHOLDERS WHO WE ARE & WHAT WE DO

It has long been known that certain fibers produced in nature possess remarkable mechanical properties in terms of strength, resilience and flexibility. These protein based fibers, exemplified by spider silk, have been the subject of much interest due to spider silk’s incredible toughness. Because of its strength, resilience and flexibility, spider silk holds great promise for commercial and consumer applications. While the superior properties of spider silks are well known, there was no known way to produce spider silk in commercial quantities. Since spiders are cannibalistic, they cannot be raised in concentrated colonies to produce silk.

The production of spider silk in commercial quantities holds the potential of a life-saving ballistic resistant material, which is lighter, thinner, more flexible, and tougher than steel. Other applications of spider silk include use as structural material and for any application in which light weight and high strength are required. Kraig Biocraft Laboratories’ believes that in the near future, genetically engineered spider silk will make significant inroads into the market for high-strength fibers.

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Spider Silk | Annual Report 2024

Spider Silk | Annual Report 2024

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COMPARISON OF THE PROPERTIES OF NATURAL SPIDER SILK, KELVER AND STEEL MATERIAL TOUGHNESS

TENSILE STRENGTH

WEIGHT

SPIDER SILK

120,000-160,000

1,100-2,900

1.18-1.36

KELVAR

30,000-50,000

2,600-4,100

1.44

STEEL

2,000-6,000

300-2,000

7.84

Since, 2015, Spider Silk Artificial Bioengineering is now the world leader in genetically engineered spider silk technologies. We earned that place by applying our proprietary genetic engineering spider silk technology to an organism which is already one of the most efficient commercial producers of silk: The domesticated silkworm.

Spider Silk’s technology builds upon the unique advantages of the domesticated silkworm for this application. The silkworm is ideally suited to produce genetically engineered spider silk because it is already an efficient commercial and industrial producer of silk. Forty percent (40%) of the caterpillars’ weight is devoted to the silk glands. The silk glands produce large volumes of protein, called fibroin, which are then spun into a composite protein thread (silk).

We have used genetic engineering technology to create spider silk. A part of Spider Silk’s intellectual property portfolio is the exclusive right to use the patented spider silk gene sequences in silkworm.

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Spider Silk | Annual Report 2024

Spider Silk | Annual Report 2024

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THE MARKET FOR SPIDER SILK WHO ARE WE SELLING THIS TO

Kraig is focused on the creation, production and marketing of high performance and technical fibers such as spider silk. Because spider silks are stronger and tougher than steel, they could be used in a wide variety of military, industrial, and consumer applications ranging from ballistic protection to superior strength and toughness.

The global market demand for technical fibers is growing rapidly and these materials have become essential products for both industrial and consumer applications. By 2012, the annual global market for technical fibers had already reached approximately $133 billion.

We believe that the superior mechanical characteristics of the next generation of spider silk will open up new applications for the technology and result in a significant increase in demand. The materials which we are working to produce are stronger than steel. Spider silks can justifiably be referred to as “super fibers.�

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Spider Silk | Annual Report 2024

Spider Silk | Annual Report 2024

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FINANCIAL HIGHLIGHTS

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Spider Silk | Annual Report 2024

Spider Silk | Annual Report 2024

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GLOBAL REVIEW

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Spider Silk | Annual Report 2024

Spider Silk | Annual Report 2024

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FOR EDUCATIONAL PURPOSES ONLY 16

Spider Silk | Annual Report 2024