MeritValue

KALA BIO, Inc.

KALAdata completeness 75%11 fiscal years on file

Data notes: no data for concept 'pretaxIncome'

The thesis, from the filings

KALA BIO, Inc. earns about -469% on equity, but has diluted owners by 519% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$11.2M1$3.89M2$03$04$04
Net income−$142.6M5−$44.8M6−$42.2M7−$38.5M8−$27M8
Operating cash flow−$108.2M9−$78.9M10−$27.9M11−$29.4M12−$32M12
Capital expenditure—————
Free cash flow (derived)—————
Total debt$158.9M13$86.2M14$34.2M15$59.7M16—
Cash & equivalents$92.1M17$70.5M18$50.9M19$51.2M20$7.56M20
Diluted shares1.3M1.5M2.4M3.8M8.1M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$8.59
your share of equity
Profit it earned you last year
−$33.11
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $8.59 of net worth that earned you −$33.11 last year.

iii. Is this a good business?
Moat signal · return on equity
-469% avg · 5y
FY21 -849%FY22 -236%FY23 -562%FY24 -312%FY25 -386%

It earned an average -469% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+519% shares · 5y

Share count is up 519% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 62% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 0 years of FCF (need ≥3) — model not applicable
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001558370-23-002746 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001558370-24-004326 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001558370-25-004081 (RevenueFromContractWithCustomerIncludingAssessedTax)
  4. 10-K · period ending 2024-12-31 · accession 0001104659-26-043782 (RevenueFromContractWithCustomerIncludingAssessedTax)
  5. 10-K · period ending 2021-12-31 · accession 0001558370-23-002746 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001558370-24-004326 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001558370-25-004081 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001104659-26-043782 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001558370-23-002746 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001558370-24-004326 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001558370-25-004081 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001104659-26-043782 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001558370-23-002746 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2022-12-31 · accession 0001558370-24-004326 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2023-12-31 · accession 0001558370-25-004081 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2024-12-31 · accession 0001104659-26-043782 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2021-12-31 · accession 0001558370-23-002746 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0001558370-24-004326 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0001558370-25-004081 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-12-31 · accession 0001104659-26-043782 (CashAndCashEquivalentsAtCarryingValue)