Form 4: KALA BIO Chief Business Officer Sells Shares Under Pre-Arranged Tax Plan

KALA BIO, Inc.'s Chief Business Officer, Darius Kharabi, sold 4,511 shares of common stock for tax withholding obligations related to RSU vesting, as disclosed in a recent SEC Form 4 filing.

Summary

• Darius Kharabi, Chief Business Officer of KALA BIO, Inc. (KALA), reported the sale of 4,511 shares of common stock.
• The transaction occurred on June 24, 2025, at a weighted average price of $4.01 per share, with prices ranging from $3.87 to $4.12.
• The sale was executed pursuant to a Rule 10b5-1 trading plan adopted by Mr. Kharabi on November 16, 2021.
• The purpose of the sale was to cover tax withholding obligations associated with the vesting and settlement of restricted stock units (RSUs) granted on June 22, 2023.
• Following this transaction, Mr. Kharabi beneficially owns 62,566 shares of KALA BIO common stock, which includes 28,878 unvested RSUs.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive. While it's an insider sale, it's a routine transaction for tax purposes under a pre-arranged plan, which reduces concerns about opportunistic selling.

Positives

• The sale was conducted under a pre-arranged Rule 10b5-1 trading plan, indicating a structured and non-discretionary transaction rather than an opportunistic sale.
• The sale was for tax withholding obligations, a common and necessary reason for insider stock sales related to equity compensation.

Negatives

• The transaction represents a reduction in direct beneficial ownership by a key executive, which can sometimes be perceived negatively by investors, although the reason is routine.

Future Outlook

The document does not provide any forward-looking statements or guidance regarding the company's future performance or strategic direction.

Management Comments

• The sale was made pursuant to a 10b5-1 trading plan adopted by the Reporting Person on November 16, 2021, to cover tax withholding obligations in connection with the vesting and settlement of the Reporting Person's restricted stock units ('RSUs') granted on June 22, 2023.

Industry Context

This SEC Form 4 filing details an individual insider transaction and does not provide information related to broader industry trends or competitive landscape.

Related Party Transactions

• The sale of common stock by Darius Kharabi, the Chief Business Officer, is a related party transaction as he is an insider of KALA BIO, Inc.

Stakeholder Impact

• Shareholders: A minor reduction in insider ownership, but the pre-planned nature and tax-related reason mitigate potential negative interpretations.
• Employees: No direct impact mentioned.

Key Dates

Keywords

KALA BIO, KALA, Darius Kharabi, Chief Business Officer, SEC Form 4, Insider Trading, Stock Sale, 10b5-1 Plan, Restricted Stock Units, RSU Vesting, Tax Withholding