Simplia - Case Summary

Business Description

The Debtor is a technology company engaged in the development, maintenance, and sale of its Oxygen artificial intelligence platform. The platform is comprised of Pilot OSTM, described as the first AI operating system for business, and Power Grid Ai+T™.

• On a technical level, the Oxygen Platform integrates multi-modal communications, workflows, and contextual injections of artificial intelligence.
• On a practical level, the platform is designed to assist businesses with online marketing, sourcing workers and suppliers, generating and qualifying leads, and nurturing third-party relationships.

According to the Debtor, the Oxygen Platform was developed at a cost of over $15 million and holds material value, with the potential to attract acquisition interest from large companies.

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Corporate History

The Debtor was formed in 2019 by Dr. Bharskarpillai Gopinath and Ray Stata, who are the Company’s largest shareholders.

• The Company’s core asset, the Oxygen Platform, is the result of over $15 million in development costs and years of effort by the Debtor and Lotus Interworks, Inc., which began developing the technology in 2010.

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Operations Overview

As of the Petition Date, the Debtor’s operations have been reduced to a single employee, co-founder Dr. Bharskarpillai Gopinath, who is currently working without remuneration. The Company’s primary assets consist of its Oxygen Platform and approximately $87,000 in cash on hand.

• Prior to ceasing active operations, the Company demonstrated significant growth, with revenues increasing by more than 30% month-over-month before April 2025.
• In April 2025, with minimal marketing efforts, the Debtor served approximately 200 customers and generated approximately $325,000 in gross revenue.

Post-petition, Mr. Gopinath’s efforts are focused on preserving the Oxygen Platform and negotiating with the Company’s alleged secured creditor, Ray Stata, for the use of cash collateral and additional funding necessary to maintain the platform for a future sale or operational restart.

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Prepetition Obligations

The Debtor’s primary funded debt consists of a Secured Senior Promissory Note held by co-founder Ray Stata, who has been the Company’s principal source of funding since approximately June 2024.

• The Promissory Note is purportedly secured by a lien on all or substantially all of the Debtor’s assets, including its cash.

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Events Leading to Bankruptcy

The Debtor’s path to Chapter 11 began shortly before the petition date when co-founder Ray Stata ceased funding the Company and resigned from its Board of Directors. This action left Dr. Bharskarpillai Gopinath as the sole director, officer, and employee. Lacking further capital, the Debtor was forced to terminate its relationships with over 600 domestic and foreign independent contractors and effectively cease all active business operations.

• The situation escalated on September 23, 2025, when Mr. Stata demanded payment in full on his promissory note.
• On September 29, 2025, he initiated a lawsuit in Massachusetts Superior Court against the Debtor, Lotus Interworks, Inc., and Mr. Gopinath.
  • The lawsuit seeks to enforce the note, obtain declaratory relief regarding the validity of his alleged lien, and foreclose on the Debtor’s assets.
  • In connection with the suit, Mr. Stata also filed an emergency ex parte motion to attach the Debtor’s assets, including all cash, and obtain a temporary restraining order.

Faced with litigation and an inability to pay its debts, which jeopardized the preservation of its core asset, the Debtor filed for Chapter 11 protection. The state court action is now stayed.

• The bankruptcy is intended to provide a "breathing spell" to protect the value of the Oxygen Platform while the Debtor pursues a dual-track strategy of seeking a long-term capital infusion to restart operations or pursuing an outright sale of the platform.
• The Debtor intends to file a Subchapter V plan within the 90-day statutory period, which will be funded by either new capital, future revenues from restarted operations, or the proceeds from a sale of the Oxygen Platform.