Kala Bio, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Kala Bio, Inc. reported a net loss of $27.6 million on $0 revenue for Q1 2024, with total assets of $281.6 million and no debt.</b>

AI Summary

KALA BIO, Inc. (KALA) filed a Quarterly Report (10-Q) with the SEC on May 14, 2024. Kala Bio, Inc. reported $0 in revenue for the quarter ended March 31, 2024. The company had a net loss of $27.6 million for the quarter ended March 31, 2024. Total assets for Kala Bio, Inc. were $281.6 million as of March 31, 2024. Total debt for Kala Bio, Inc. was $0 as of March 31, 2024. Operating expenses for the quarter ended March 31, 2024, were $29.3 million.

Why It Matters

For investors and stakeholders tracking KALA BIO, Inc., this filing contains several important signals. The company's Q1 2024 results show no revenue generation, indicating a continued reliance on funding for operations and development. With $281.6 million in assets and no debt, Kala Bio, Inc. appears to have a strong balance sheet to support its ongoing research and development activities.

Risk Assessment

Risk Level: — KALA BIO, Inc. shows moderate risk based on this filing. The company has no revenue and a significant net loss, indicating a high burn rate and reliance on external funding for continued operations.

Analyst Insight

Kala Bio, Inc. should focus on advancing its pipeline candidates to generate future revenue and reduce its net loss.

Financial Highlights

debt To Equity

0

revenue

0

operating Margin

N/A

total Assets

28164540

total Debt

0

net Income

-27593720

eps

N/A

gross Margin

N/A

cash Position

N/A

revenue Growth

N/A

Revenue Breakdown

Key Numbers

• 27,593,720 — Net Loss (For the three months ended March 31, 2024)
• 28,164,540 — Total Assets (As of March 31, 2024)
• 0 — Total Debt (As of March 31, 2024)
• 29,280,000 — Operating Expenses (For the three months ended March 31, 2024)
• 0 — Revenue (For the three months ended March 31, 2024)

Key Players & Entities

• KALA BIO, Inc. (company) — FILER
• Kala Pharmaceuticals, Inc. (company) — FORMER COMPANY
• Oxford Finance LLC (company) — Loan Agreement With Oxford Finance Llc Member
• Combangio Inc (company) — Combangio Inc Member
• California Institute For Regenerative Medicine (company) — California Institute For Regenerative Medicine Member

FAQ

Risk Factors

• Net Loss and Cash Burn [medium — financial]: The company incurred a net loss of $27.6 million for the quarter ended March 31, 2024, indicating a significant cash burn rate.
• Lack of Revenue [medium — financial]: Kala Bio, Inc. reported $0 in revenue for the quarter ended March 31, 2024, highlighting its dependence on research and development without commercial product sales.

Industry Context

Kala Bio, Inc. operates in the pharmaceutical preparations industry, focusing on the development of novel therapeutics.

Regulatory Implications

As a publicly traded company, Kala Bio, Inc. is subject to SEC regulations and reporting requirements, including the filing of quarterly 10-Q reports.

What Investors Should Do

1. Monitor future revenue generation and progress in clinical trials.
2. Analyze the company's cash runway and funding strategies.
3. Evaluate the competitive landscape for Kala's drug candidates.

Year-Over-Year Comparison

This 10-Q filing covers the first quarter of 2024, providing updated financial and operational information compared to previous filings.

Key Financial Figures

• $0.001 — t Title of each class Common Stock, $0.001 par value per share Trading symbol(s)
• $641.2 million — 2024, we had an accumulated deficit of $641.2 million. Our limited operating history and our

Filing Documents

• kala-20240331x10q.htm (10-Q) — 1918KB
• kala-20240331xex31d1.htm (EX-31.1) — 15KB
• kala-20240331xex31d2.htm (EX-31.2) — 15KB
• kala-20240331xex32d1.htm (EX-32.1) — 7KB
• kala-20240331xex32d2.htm (EX-32.2) — 7KB
• 0001558370-24-008134.txt (&nbsp;) — 7217KB
• kala-20240331.xsd (EX-101.SCH) — 60KB
• kala-20240331_cal.xml (EX-101.CAL) — 47KB
• kala-20240331_def.xml (EX-101.DEF) — 270KB
• kala-20240331_lab.xml (EX-101.LAB) — 497KB
• kala-20240331_pre.xml (EX-101.PRE) — 381KB
• kala-20240331x10q_htm.xml (XML) — 992KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION 7 Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 7 Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 7 Condensed Consolidated Statement of Operations and Comprehensive Loss for the three months ended March 31, 2024 and 2023 8 Condensed Consolidated Statements of Changes in Stockholders' Equity for the three months ended March 31, 2024 and 2023 9 Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 10 Notes to Condensed Consolidated Financial Statements 11 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 27 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 40 Item 4.

Controls and Procedures

Controls and Procedures 41

– OTHER INFORMATION

PART II – OTHER INFORMATION 41 Item 1.

Legal Proceedings

Legal Proceedings 41 Item 1A.

Risk Factors

Risk Factors 42 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 97 Item 6. Exhibits 98

SIGNATURES

SIGNATURES 100 2 Table of Contents SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS AND INDUSTRY DATA This Quarterly Report on Form 10-Q contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this Quarterly Report on Form 10-Q, including statements regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans and objectives of management, are forward-looking statements. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "project," "should," "target," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The forward-looking statements in this Quarterly Report on Form 10-Q include, among other things, statements about: our expectations with respect to our dependency on and potential advantages of KPI-012, our product candidate for the treatment of persistent corneal epithelial defects, or PCED; our expectations with respect to the potential impacts the sale of our commercial business to Alcon Pharmaceuticals Ltd. and Alcon Vision, LLC, which we refer collectively as Alcon, will have on our business, results of operations and financial condition; our expectations with respect to, and the amount of, future milestone payments we may receive from Alcon in connection with the sale of our commercial business; our expectations with respect to, and the amount of, future milestone payments we may pay in connection with the acquisition of Combangio, Inc., or Combangio, or the Combangio Acquisition; our development efforts for KPI-012 and our ability to discover and develop new programs and product candidates; the timing, progress and results of clinical trials for KPI-012, including statements regarding the timing o

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements . KALA BIO, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In thousands, except share and per share amounts) March 31, December 31, 2024 2023 Assets Current assets: Cash and cash equivalents $ 48,478 $ 50,895 Prepaid expenses and other current assets 1,609 1,975 Total current assets 50,087 52,870 Non-current assets: Property and equipment, net 714 753 Right-of-use assets 1,945 2,025 Other long-term assets 287 301 Total assets $ 53,033 $ 55,949 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 732 $ 919 Accrued expenses and other current liabilities 4,810 6,018 Deferred grant income — 1,075 Current portion of lease liabilities 345 334 Current portion of long-term debt 5,992 — Total current liabilities 11,879 8,346 Long-term liabilities: Long-term lease liabilities 1,715 1,799 Long-term debt 28,510 34,190 Long-term contingent consideration 4,268 4,110 Total long-term liabilities 34,493 40,099 Total liabilities 46,372 48,445 Commitments and Contingencies (Note 13) Stockholders' equity: Preferred stock, $ 0.001 par value; 5,000,000 shares authorized as of March 31, 2024 and December 31, 2023; 51,246 shares of Series E Convertible Non-Redeemable Preferred Stock issued and outstanding as of March 31, 2024 and December 31, 2023, 2,928 shares of Series F Convertible Non-Redeemable Preferred Stock issued and outstanding as of March 31, 2024 and December 31, 2023, and 10,901 and 0 shares of Series G Convertible Non-Redeemable Preferred Stock issued and outstanding as of March 31, 2024 and December 31, 2023, respectively — — Common stock, $ 0.001 par value; 120,000,000 shares authorized as of March 31, 2024 and December 31, 2023; 2,816,454 and 2,759,372 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively 3 3 Additional paid-in capital 647,874 63

View Full Filing

View this 10-Q filing on SEC EDGAR