Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer’s Purchases of Equity Securities
Our common stock has been publicly traded on the Nasdaq Global Select Market under the symbol “KALA” since July 20, 2017 in connection with our initial public offering, or IPO. Prior to that time, there was no public market for our common stock.
Holders
As of February 24, 2021, there were approximately 9 holders of record of our common stock. This number does not include beneficial owners whose shares are held by nominees in street name.
Dividend policy
We have not declared or paid any cash dividends on our common stock since our inception. We intend to retain all available funds and any future earnings to finance the operation and expansion of our business and do not anticipate paying any cash dividends in the foreseeable future. In addition, our ability to pay cash dividends is currently restricted by the terms of our Athyrium Credit Facility, and future debt financing arrangements may contain terms prohibiting or limiting the amount of dividends that may be declared or paid on our common stock. Any future determination to declare and pay dividends will be made at the discretion of our board of directors and will depend on then-existing conditions, including our results of operations, financial condition, contractual restrictions, capital requirements, business prospects and other factors our board of directors may deem relevant.
Information about our equity compensation plans
The information required by this item will be set forth in our Proxy Statement for the 2021 Annual Meeting of Stockholders and is incorporated in this Annual Report on Form 10-K by reference.
Recent sales of unregistered securities.
Set forth below is information regarding shares of our common stock issued and stock options granted by us for the twelve months ended December 31, 2020 that were not registered under the Securities Act of 1933, as amended, or the Securities Act and that have not otherwise been described in a Quarterly Report on Form 10-Q or a Current Report on Form 8-K.
On October 15, 2020, we granted stock options to four new employees to purchase an aggregate of 42,000 shares of our common stock at an exercise price of $8.20 per share. On November 13, 2020, we granted stock options to four new employees to purchase an aggregate of 34,500 shares of our common stock at an exercise price of $7.42 per share. On December 15, 2020, we granted stock options to 46 new employees to purchase an aggregate of 233,500 shares of our common stock at an exercise price of $7.63 per share. These options were inducement grants made outside of our 2017 Equity Incentive Plan in accordance with Nasdaq Listing Rules 5635(c)(4) and Section 4(a)(2) of the Securities Act of 1933, as amended. The options have a ten-year term and vest over four years, with 25% of the shares underlying each option award vesting on the one-year anniversary of the applicable employee’s new hire date and the remaining 75% of the shares underlying each award vesting monthly thereafter for three years. Vesting of each option is subject to the option holders continued service with our company through the applicable vesting dates. We intend to file a registration statement on a Form S-8 to register the shares of common stock underlying these inducement grants prior to the time at which these options become exercisable.
Purchase of Equity Securities
We did not purchase any of our registered equity securities during the period covered by this Annual Report on Form 10-K.
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Item 6. Selected Financial Data
You should read the following selected consolidated financial data together with our consolidated financial statements and accompanying notes appearing elsewhere in this Annual Report on Form 10-K and the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of this Annual Report on Form 10-K. We have derived the selected consolidated statement of operations data for the years ended December 31, 2020 and 2019, and the selected consolidated balance sheet data as of December 31, 2020 and 2019 from our audited consolidated financial statements appearing at the end of this Annual Report on Form 10-K. The selected consolidated statement of operations data for the years ended December 31, 2018, 2017 and 2016 and balance sheet data as of December 31, 2018, 2017 and 2 016 set forth below have been derived from the audited financial statements for such years not included in this Annual Report on Form 10-K. Our historical results for any prior period are not necessarily indicative of the results that may be expected in any future period.
Year Ended
December 31,
2020
2019
2018
2017
2016
Statement of Operations Data:
(in thousands, except share and per share amounts)
Product revenues, net
$
6,362
$
6,074
$
—
$
—
$
—
Costs and expenses:
Cost of product revenues
3,173
2,008
—
—
—
Selling, general and administrative
81,068
65,015
35,431
10,867
7,640
Research and development
18,352
27,275
29,290
29,008
25,029
Total costs and expenses
102,593
94,298
64,721
39,875
32,669
Loss from operations
(96,231)
(88,224)
(64,721)
(39,875)
(32,669)
Other income (expense)
Interest income
493
2,357
1,687
527
147
Interest expense
(8,589)
(8,480)
(3,314)
(1,019)
(767)
Loss on extinguishment of debt
—
—
(390)
—
—
Change in fair value of warrant liability
—
—
—
(1,844)
122
Net loss attributable to common stockholders
$
(104,327)
$
(94,347)
$
(66,738)
$
(42,211)
$
(33,167)
Net loss per share attributable to common stockholders—basic and diluted
$
(1.99)
$
(2.76)
$
(2.49)
$
(3.71)
$
(28.07)
Weighted average shares outstanding—basic and diluted
52,377,526
34,209,756
26,753,906
11,375,000
1,181,429
As of December 31,
2020
2019
2018
2017
2016
(in thousands)
Balance Sheet Data:
Cash, cash equivalents and short-term investments
$
153,540
$
85,449
$
170,898
$
114,565
$
45,472
Total assets
221,606
154,323
220,966
116,546
46,329
Working capital(1)
149,154
80,710
160,018
100,341
40,080
Long‑term debt—less current portion
72,243
71,184
70,226
11,987
9,098
Other long‑term liabilities
27,143
28,673
28,752
8
17
Total stockholders’ equity (deficit)
99,995
29,692
104,978
89,679
(87,762)
(1)
We define working capital as current assets less current liabilities.
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