Transitioning from a single-pipeline clinical-stage biopharmaceutical company to an AI infrastructure partner for the biotechnology industry. The initiative deploys secure, on-premises agentic AI systems (Researgency.ai) directly within client environments, allowing them to analyze proprietary biological and clinical data without surrendering control.

Expected impact: Establishment of a recurring, scalable platform-as-a-service revenue model while simultaneously using the platform internally to reassess historical clinical datasets and optimize R&D.

Following the failure of the CHASE Phase 2b clinical trial of KPI-012 to meet its primary endpoint, KALA BIO suspended development of its MSC-S platform and initiated a process to explore strategic alternatives, including out-licensing, partnerships, or asset sales for KPI-012, KPI-014, and legacy intellectual property.

Expected impact: Preservation of historical R&D value and potential generation of non-dilutive capital through licensing or divestitures.

Implementing aggressive cost-reduction measures to preserve capital during the business model transition. This included a workforce reduction of approximately 19 employees (representing about 51% of the staff), lease terminations, and vendor settlements.

Expected impact: Significant reduction in quarterly operating expenses (operating expenses decreased from $10.7 million to $1.8 million for the quarter ended March 31, 2026, compared to the prior year period), extending the cash runway into Q2 2027.