KALA BIO (NASDAQ: KALA) loan default notice accelerates $29.1M debt

Rhea-AI Filing Summary

KALA BIO, Inc. reported that its lender, Oxford Finance LLC, has delivered a written notice declaring an event of default under the companies’ Loan and Security Agreement. The notice states that the event of default is based on a contractual “Material Adverse Change” provision and alleges that additional defaults may exist.

As a result, Oxford has declared all obligations under the loan immediately due and payable and has started charging interest at the contractual default rate. The company reports that obligations accelerated and declared payable under the loan total $29.1 million, plus additional interest at the default rate and any expenses owed under the agreement.

Positive

• None.

Negative

• Accelerated debt and higher interest costs: Oxford Finance has declared all obligations under the loan immediately due and payable, accelerating $29.1 million of debt and triggering interest at the Default Rate, which increases financial pressure on KALA BIO, Inc.

Insights

Credit & Capital Structure Analyst

Loan default notice accelerates $29.1M debt and raises interest costs.

KALA BIO, Inc. has received a notice from Oxford Finance LLC asserting an event of default under their Loan and Security Agreement tied to a “Material Adverse Change” clause. Based on this asserted default, Oxford has made all obligations under the loan immediately due and payable.

The company discloses that obligations under the loan totaling $29.1 million have been accelerated, and interest is now accruing at the contractual Default Rate. This significantly tightens near-term liquidity because a term debt that would normally be repaid over time is being demanded at once, while also becoming more expensive to carry.

Future disclosures in company filings may clarify whether the parties reach any amendment, forbearance, or restructuring of this $29.1 million obligation and how the higher default-rate interest and expenses affect cash flow.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): September 29, 2025

KALA BIO, Inc.

(Exact Name of Registrant as Specified in its Charter)

Delaware	001-38150	27-0604595
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

1167 Massachusetts Avenue

Arlington, MA 02476

(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code: (781) 996-5252

Not applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value per share	KALA	The Nasdaq Capital Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.04. Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.

On September 29, 2025, KALA BIO, Inc. (the “Company”) received a written notice (the “Notice”) of event of default from Oxford Finance LLC (“Oxford”) with respect to that certain Loan and Security Agreement, dated as of May 4, 2021 (as amended, the “Loan Agreement”), by and among the Company, Combangio, Inc. and Oxford, as lender and collateral agent. The Notice asserted that an event of default (the “Event of Default”) has occurred and is continuing under Section 8.3 (Material Adverse Change) of the Loan Agreement and alleged that other events of default under the Loan Agreement may exist.

In the Notice, Oxford declared, by reason of the Event of Default, that all obligations of the Company under the Loan Agreement were immediately due and payable. In addition, the Notice indicated that the Company’s obligations under the Loan Agreement began accruing interest at the Default Rate (as defined in the Loan Agreement) effective immediately upon occurrence of the Event of Default. The total amount of the Company’s obligations under the Loan Agreement as of the date hereof that have been accelerated and declared payable by Oxford is $29.1 million plus any additional interest due upon final payment and any expenses that become payable by the Company under the Loan Agreement.

A description of the Loan Agreement is contained in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2025 filed with the Securities and Exchange Commission on August 8, 2025, which description is incorporated herein by reference.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	KALA BIO, INC.
Date: October 1, 2025	By:	/s/ Mary Reumuth
		Mary Reumuth
		Chief Financial Officer and Corporate Secretary

FAQ

What did KALA BIO, Inc. disclose in this 8-K filing?

KALA BIO, Inc. disclosed that Oxford Finance LLC sent a written notice asserting an event of default under their Loan and Security Agreement and declared all obligations immediately due and payable.

How much debt has been accelerated under KALA (KALA BIO, Inc.)’s loan?

The company reports that obligations under the Loan and Security Agreement totaling $29.1 million have been accelerated and declared immediately payable by Oxford Finance LLC, plus additional interest and expenses.

Why did Oxford Finance claim an event of default for KALA BIO, Inc.?

Oxford Finance’s notice asserts that an event of default has occurred and is continuing under the Loan Agreement’s Section 8.3, which relates to a “Material Adverse Change,” and it alleges that other events of default may exist.

What happens to KALA BIO, Inc.’s loan interest after the default notice?

The company states that, under the notice, its obligations under the Loan Agreement began accruing interest at the contractual Default Rate effective upon the occurrence of the asserted event of default.

Where can investors find more details on KALA BIO, Inc.’s Loan Agreement?

A description of the Loan and Security Agreement is included in KALA BIO, Inc.’s Form 10-Q for the quarter ended June 30, 2025, which is incorporated by reference into this filing.

Does the filing state that other events of default may exist for KALA BIO, Inc.?

Yes. Oxford’s notice alleges that, in addition to the cited “Material Adverse Change” event of default, other events of default under the Loan Agreement may exist.