KALA BIO, Inc 10-Q for FY2026 Q2

About this 10-Q

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KALA BIO, Inc. (KALA)

10-Q 2026-08-19 For: 2026-06-30

Added on August 19, 2026

KALA BIO, Inc filed this 10-Q on August 19, 2026, covering the quarter ended June 30, 2026 (FY2026 Q2).

Date: August 19, 2026

/s/ Avi Minkowitz

Avi Minkowitz

Chief Executive Officer
(Principal Executive Officer)

Quarter ended June 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Net loss: $1.58M; compared with a net loss of $11.16M a year earlier
Diluted EPS: -$21.32; compared with -$85.64 a year earlier

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Delaware	27-0604595
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)


1167 Massachusetts Avenue
Arlington, MA	02476
(Address of principal executive offices)	(Zip Code)


Large accelerated filer ☐	Accelerated filer ☐	Non-accelerated filer ☒	Smaller reporting company ☒
			Emerging growth company ☐


			Page
PART I – FINANCIAL INFORMATION			5

Item 1.	Financial Statements (Unaudited)		5

	Condensed Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025		5

	Condensed Consolidated Statement of Operations and Comprehensive Loss for the three and six months ended June 30, 2026 and 2025		6

	Condensed Consolidated Statements of Changes in Stockholders’ Equity (Deficit) for the three and six months ended June 30, 2026 and 2025		7

	Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2026 and 2025		9

	Notes to Condensed Consolidated Financial Statements		10

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		21

Item 3.	Quantitative and Qualitative Disclosures About Market Risk		33

Item 4.	Controls and Procedures		33

PART II – OTHER INFORMATION			33

Item 1.	Legal Proceedings		33

Item 1A.	Risk Factors		33

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		34

Item 3.	Defaults Upon Senior Securities		34

Item 4.	Mine Safety Disclosures		34

Item 5.	Other Information		34

Item 6.	Exhibits		35

SIGNATURES			36


	June 30,		December 31,
	2026		2025
Assets
Current assets:
Cash and cash equivalents	$	229	$	7,557
Short-term investments		7,000		—
Prepaid expenses and other current assets		3,353		1,933
Total current assets		10,582		9,490
Total assets	$	10,582	$	9,490
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	1,142	$	986
Accrued expenses and other current liabilities		396		1,508
Total current liabilities		1,538		2,494
Total liabilities		1,538		2,494
Commitments and Contingencies (Note 15)
Stockholders' equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized as of June 30, 2026; 0 and 9,278 shares of Series E Convertible Non-Redeemable Preferred Stock issued and outstanding as of June 30, 2026 and December 31, 2025, 0 and 2,928 shares of Series F Convertible Non-Redeemable Preferred Stock issued and outstanding as of June 30, 2026 and December 31, 2025, 0 and 10,901 shares of Series G Convertible Non-Redeemable Preferred Stock issued and outstanding as of June 30, 2026 and December 31, 2025, 0 and 2,299 shares of Series H Convertible Non-Redeemable Preferred Stock issued and outstanding as of June 30, 2026 and December 31, 2025, 0 and 900,000 shares of Series AA Convertible Non-Redeemable Preferred Stock issued and outstanding as of June 30, 2026 and December 31, 2025, respectively		—		1
Common stock, $0.001 par value; 1,500,000,000 and 120,000,000 shares authorized as of June 30, 2026 and December 31, 2025; 19,339,786 and 556,995 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively *		20		1
Additional paid-in capital		707,126		701,894
Accumulated deficit		(698,102)		(694,900)
Total stockholders' equity		9,044		6,996
Total liabilities and stockholders' equity	$	10,582	$	9,490



* On May 8, 2026, the Company completed a 1-for-50 reverse stock split of its issued and outstanding common stock (the “Reverse Stock Split”). As a result of the Reverse Stock Split, every fifty (50) shares of common stock issued and outstanding immediately prior to May 8, 2026 were converted into one share of common stock, without any change in the par value per share. No fractional shares was issued as a result of the Reverse Stock Split. Stockholders that would hold fractional shares as a result of the Reverse Stock Split are entitled to receive a cash payment in lieu of said fractional shares based on the closing price on the Nasdaq Capital Market on May 7, 2026. All references to number of shares, and to per share information in the this condensed consolidated financial statements have been retroactively adjusted.


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2026			2025			2026			2025


Costs and expenses:
General and administrative	$	1,662		$	4,643		$	3,403		$	9,236
Research and development		59			6,232			120			12,287
Loss on fair value remeasurement of contingent consideration		—			153			—			174
Total costs and expenses		1,721			11,028			3,523			21,697
Loss from operations		(1,721)			(11,028)			(3,523)			(21,697)
Other income (expense):
Interest income		140			407			214			870
Interest expense		—			(1,081)			—			(2,172)
Grant income		—			547			—			2,897
Other income (expense), net		—			—			107			—
Total other income (expense)		140			(127)			321			1,595
Net loss and comprehensive loss	$	(1,581)		$	(11,155)		$	(3,202)		$	(20,102)
Net loss per share attributable to common stockholders—basic and diluted *	$	(21.32)		$	(85.64)		$	(0.21)		$	(156.32)
Weighted average shares outstanding—basic and diluted *		74,159			130,262			15,287,538			128,599




* Number of shares, and to per share information have been retroactively adjusted to reflect the impact of the Reverse Stock Split.


	Three Months Ended June 30, 2026
	Series E			Series F			Series G				Series H				Series AAA				Series AA
	Convertible			Convertible			Convertible				Convertible				Convertible				Convertible
	Non-Redeemable			Non-Redeemable			Non-Redeemable				Non-Redeemable				Non-Redeemable				Non-Redeemable
	Preferred Stock			Preferred Stock			Preferred Stock				Preferred Stock				Preferred Stock				Preferred Stock				Common Stock			Additional				Total
	$0.001 Par Value			$0.001 Par Value			$0.001 Par Value				$0.001 Par Value				$0.001 Par Value				$0.001 Par Value				$0.001 Par Value			Paid-In		Accumulated		Stockholders'
	Shares	Amount		Shares	Amount		Shares	Amount			Shares	Amount			Shares	Amount			Shares	Amount			Shares	Amount		Capital		Deficit		Equity
Balance as of March 31, 2026	—	$	—	—	$	—	—	$	—		—	$	—		—	$	—		681,818	$	1		18,589,832	$	19	$	707,262	$	(696,521)	$	10,761
Conversion of Preferred Stock	—		—	—		—	—		—		—		—		—		—		(681,818)		(1)		749,999		1		—		—		—
Retired shares	—		—	—		—	—		—		—		—		—		—		—		—		(45)		—		—		—		—
Stock-based compensation expense	—		—	—		—	—		—		—		—		—		—		—		—		—		—		(136)		—		(136)
Net loss	—		—	—		—	—		—		—		—		—		—		—		—		—		—		—		(1,581)		(1,581)
Balance as of June 30, 2026	—	$	—	—	$	—	—	$	—		—	$	—		—	$	—		—	$	—		19,339,786	$	20	$	707,126	$	(698,102)	$	9,044


	Three Months Ended June 30, 2025
	Stockholders' Equity (Deficit)
	Series E				Series F				Series G				Series H				Series H
	Convertible				Convertible				Convertible				Convertible				Convertible
	Non-Redeemable				Non-Redeemable				Non-Redeemable				Non-Redeemable				Non-Redeemable
	Preferred Stock				Preferred Stock				Preferred Stock				Preferred Stock				Preferred Stock				Common Stock			Additional				Total
	$0.001 Par Value				$0.001 Par Value				$0.001 Par Value				$0.001 Par Value				$0.001 Par Value				$0.001 Par Value			Paid-In		Accumulated		Stockholders'
	Shares	Amount			Shares	Amount			Shares	Amount			Shares	Amount			Shares	Amount			Shares	Amount		Capital		Deficit		Equity
Balance as of March 31, 2025	51,246	$	—		2,928	$	—		10,901	$	—		6,409	$	—		3,286	$	—		129,048	$	—	$	682,575	$	(676,867)	$	5,708
Issuance of common stock for vested restricted stock units	—		—		—		—		—		—		—		—		—		—		4,534		1		—		—		1
Exercise of stock options	—		—		—		—		—		—		—		—		—		—		—		—		—		—		—
Stock-based compensation expense	—		—		—		—		—		—		—		—		—		—		—		—		2,240		—		2,240
Net loss	—		—		—		—		—		—		—		—		—		—		—		—		—		(11,155)		(11,155)
Balance as of June 30, 2025	51,246	$	—		2,928	$	—		10,901	$	—		6,409	$	—		3,286	$	—		133,582	$	1	$	684,815	$	(688,022)	$	(3,206)


	Six Months Ended June 30, 2026
	Series E			Series F			Series G				Series H				Series AAA				Series AA
	Convertible			Convertible			Convertible				Convertible				Convertible				Convertible
	Non-Redeemable			Non-Redeemable			Non-Redeemable				Non-Redeemable				Non-Redeemable				Non-Redeemable
	Preferred Stock			Preferred Stock			Preferred Stock				Preferred Stock				Preferred Stock				Preferred Stock				Common Stock			Additional				Total
	$0.001 Par Value			$0.001 Par Value			$0.001 Par Value				$0.001 Par Value				$0.001 Par Value				$0.001 Par Value				$0.001 Par Value			Paid-In		Accumulated		Stockholders'
	Shares	Amount		Shares	Amount		Shares	Amount			Shares	Amount			Shares	Amount			Shares	Amount			Shares	Amount		Capital		Deficit		Equity
Balance as of December 31, 2025	9,278	$	—	2,928	$	—	10,901	$	—		2,299	$	—		—	$	—		900,000	$	1		556,995	$	1	$	701,894		(694,900)	$	6,996
Issuance of common stock to satisfy service contract	—		—	—		—	—		—		—		—		—		—		—		—		100,000		—		1,755		—		1,755
Issuance of Series AAA Preferred Stock	—		—	—		—	—		—		—		—		2,100,000		2		—		—		—		—		4,100		—		4,102
Conversion of Series AAA Preferred Stock	—		—	—		—	—		—		—		—		(2,100,000)		(2)		—		—		17,640,000		18		(16)		—		—
Conversion of Preferred Stock	(9,278)		—	(2,928)		—	(10,901)		—		(2,299)		—		—		—		(900,000)		(1)		1,040,811		1		—		—		—
Issuance of common stock for vested restricted stock units	—		—	—		—	—		—		—		—		—		—		—		—		2,025		—		—		—		—
Retired shares	—		—	—		—	—		—		—		—		—		—		—		—		(45)		—		—		—		—
Stock-based compensation expense	—		—	—		—	—		—		—		—		—		—		—		—		—		—		(607)		—		(607)
Net loss	—		—	—		—	—		—		—		—		—		—		—		—		—		—		—		(3,202)		(3,202)
Balance as of June 30, 2026	—	$	—	—	$	—	—	$	—		—	$	—		—	$	—		—	$	—		19,339,786	$	20	$	707,126	$	(698,102)	$	9,044


	Six Months Ended June 30, 2025
	Series E				Series F				G				Series H				Series I
	Convertible				Convertible				Convertible				Convertible				Convertible
	Non-Redeemable				Non-Redeemable				Non-Redeemable				Non-Redeemable				Non-Redeemable
	Preferred Stock				Preferred Stock				Preferred Stock				Preferred Stock				Preferred Stock				Common Stock			Additional				Total
	$0.001 Par Value				$0.001 Par Value				$0.001 Par Value				$0.001 Par Value				$0.001 Par Value				$0.001 Par Value			Paid-In		Accumulated		Stockholders'
	Shares	Amount			Shares	Amount			Shares	Amount			Shares	Amount			Shares	Amount			Shares	Amount		Capital		Deficit		Equity
Balance as of December 31, 2024	51,246	$	—		2,928	$	—		10,901	$	—		9,393	$	—		3,286	$	—		121,824	$	—	$	680,252	$	(667,920)	$	12,332
Issuance of common stock for vested restricted stock units	—		—		—		—		—		—		—		—		—		—		5,745		1		—		—		1
Issuance of common stock under employee stock purchase plan	—		—		—		—		—		—		—		—		—		—		46		—		13		—		13
Conversion of Series H Preferred Stock	—		—		—		—		—		—		(2,984)		—		—		—		5,968		—				—		—
Stock-based compensation expense	—		—		—		—		—		—		—		—		—		—		—		—		4,550		—		4,550
Net loss	—		—		—		—		—		—		—		—		—		—		—		—		—		(20,102)		(20,102)
Balance as of June 30, 2025	51,246	$	—		2,928	$	—		10,901	$	—		6,409	$	—		3,286	$	—		133,582	$	1	$	684,815	$	(688,022)	$	(3,206)


					Shares Exercisable at
	Exercise		Expiration	Exercisable	June 30,	December 31,
Issued	Price Per Share		Date	From	2026	2025
2016	$	413.50	October 2026	September 2017	6	6
					6	6



EXHIBIT 3.1		Certificate of Amendment to the Restated Certificate of Incorporation, as amended, of KALA BIO, Inc (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on May 7, 2026)

EXHIBIT 10.1		Note Amending Agreement, dated as of May 11, 2026, by and between the Company and Minglemint Solutions LLC (incorporated by reference to Exhibit 10.6 to the Company’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 15, 2026)

EXHIBIT 31.1+	-	Certification of Chief Executive Officer pursuant to Rules 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

EXHIBIT 31.2+	-	Certification of Chief Financial Officer pursuant to Rules 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

EXHIBIT 32.1++	-	Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of The Sarbanes-Oxley Act of 2002, by Avi Minkowitz Chief Executive Officer.

EXHIBIT 32.2++	-	Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of The Sarbanes-Oxley Act of 2002, by Avi Minkowitz, Chief Financial Officer of the Company.

EXHIBIT 101.INS	-	Inline XBRL Instance Document. (the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document)

EXHIBIT 101.SCH	-	Inline XBRL Taxonomy Extension Schema Document.

EXHIBIT 101.CAL	-	Inline XBRL Taxonomy Extension Calculation Linkbase Document.

EXHIBIT 101.DEF	-	Inline XBRL Taxonomy Extension Definition Linkbase Document.

EXHIBIT 101.LAB	-	Inline XBRL Taxonomy Extension Label Linkbase Document.

EXHIBIT 101.PRE	-	Inline XBRL Taxonomy Extension Presentation Linkbase Document.

EXHIBIT 104	-	Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101).


	KALA BIO, Inc.

Dated: August 19, 2026	By:	/s/ Avi Minkowitz
		Avi Minkowitz
		Chief Executive Officer (Principal Executive Officer)

Dated: August 19, 2026	By:	/s/ Avi Minkowitz
		Avi Minkowitz
		Chief Financial Officer (Principal Financial Officer)


Date:	August 19, 2026	/s/ Avi Minkowitz
		Avi Minkowitz
		(Principal Executive Officer)