Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | KALEIDO BIOSCIENCES, INC. | |
Document Type | 10-Q | |
Amendment Flag | false | |
Trading Symbol | KLDO | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 42,518,653 | |
Entity Central Index Key | 0001751299 | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Security Exchange Name | NASDAQ | |
Entity File Number | 001-38822 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-3048279 | |
Entity Address, Address Line One | 65 Hayden Avenue | |
Entity Address, City or Town | Lexington | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02421 | |
City Area Code | 617 | |
Local Phone Number | 674-9000 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock, $0.001 Par Value | |
Entity Ex Transition Period | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 92,362 | $ 46,222 |
Prepaid expenses and other current assets | 2,670 | 2,499 |
Total current assets | 95,032 | 48,721 |
Property and equipment, net | 7,833 | 8,462 |
Restricted cash | 2,161 | 2,161 |
Total assets | 105,026 | 59,344 |
Current liabilities: | ||
Accounts payable | 2,412 | 5,389 |
Accrued expenses and other current liabilities | 5,702 | 8,636 |
Current term debt, net of unamortized debt discount | 4,759 | 2,634 |
Total current liabilities | 12,873 | 16,659 |
Long term debt, net of unamortized debt discount | 16,433 | 18,375 |
Other liabilities | 3,946 | 3,814 |
Total liabilities | 33,252 | 38,848 |
Commitments and contingencies (Note 7) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value, 10,000,000 authorized; no shares issued or outstanding | ||
Common stock, $0.001 par value, 150,000,000 shares authorized; 42,483,171 and 36,022,811 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively | 42 | 36 |
Additional paid-in capital | 368,953 | 294,639 |
Accumulated deficit | (297,221) | (274,179) |
Total stockholders' equity | 71,774 | 20,496 |
Total liabilities and stockholders’ equity | $ 105,026 | $ 59,344 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) - Parenthetical - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Preferred Stock | ||
Preferred stock par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Preferred stock outstanding (in shares) | 0 | 0 |
Common Stock | ||
Common stock par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock issued (in shares) | 42,483,171 | 36,022,811 |
Common stock outstanding (in shares) | 42,483,171 | 36,022,811 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue: | ||
Revenue from Contract with Customer, Product and Service [Extensible List] | kldo:CollaborationRevenueMember | kldo:CollaborationRevenueMember |
Collaboration revenue | $ 297 | |
Operating expenses: | ||
Research and development | 17,185 | $ 13,137 |
General and administrative | 5,460 | 5,917 |
Total operating expenses | 22,645 | 19,054 |
Loss from operations | (22,348) | (19,054) |
Other (expense) income: | ||
Interest income | 21 | 193 |
Interest expense | (709) | (688) |
Other expense | (6) | (2) |
Total other (expense) income, net | (694) | (497) |
Net loss | $ (23,042) | $ (19,551) |
Net loss per share —basic and diluted | $ (0.58) | $ (0.64) |
Weighted-average common shares outstanding —basic and diluted | 39,692,582 | 30,333,283 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit |
Beginning balance at Dec. 31, 2019 | $ 48,883 | $ 30 | $ 241,412 | $ (192,559) |
Beginning balance (in shares) at Dec. 31, 2019 | 30,127,846 | |||
Exercise of stock options | 1,561 | 1,561 | ||
Exercise of stock options (in shares) | 334,444 | |||
Stock-based compensation | 2,725 | 2,725 | ||
Common stock issued upon vesting of restricted stock units | 3 | 3 | ||
Common stock issued upon vesting of restricted stock units (in shares) | 1,250 | |||
Net loss | (19,551) | (19,551) | ||
Ending balance at Mar. 31, 2020 | 33,621 | $ 30 | 245,701 | (212,110) |
Ending balance (in shares) at Mar. 31, 2020 | 30,463,540 | |||
Beginning balance at Dec. 31, 2020 | 20,496 | $ 36 | 294,639 | (274,179) |
Beginning balance (in shares) at Dec. 31, 2020 | 36,022,811 | |||
Issuance of common stock, net of issuance costs | 69,925 | $ 6 | 69,919 | |
Issuance of common stock, net of issuance costs (in shares) | 6,347,156 | |||
Exercise of stock options | 352 | 352 | ||
Exercise of stock options (in shares) | 63,331 | |||
Stock-based compensation | 4,229 | 4,229 | ||
Common stock issued upon vesting of restricted stock units | (186) | (186) | ||
Common stock issued upon vesting of restricted stock units (in shares) | 49,873 | |||
Net loss | (23,042) | (23,042) | ||
Ending balance at Mar. 31, 2021 | $ 71,774 | $ 42 | $ 368,953 | $ (297,221) |
Ending balance (in shares) at Mar. 31, 2021 | 42,483,171 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - Parenthetical $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($)shares | |
Statement Of Stockholders Equity [Abstract] | |
Common stock, issuance costs | $ | $ 4,512 |
Shares withheld for employee taxes | shares | 21,452 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating activities: | ||
Net loss | $ (23,042) | $ (19,551) |
Reconciliation of net loss to net cash used in operating activities: | ||
Depreciation and amortization | 577 | 369 |
Stock-based compensation | 4,229 | 2,725 |
Amortization of debt discount | 183 | 173 |
Non-cash interest expense | 181 | 173 |
Loss on disposal of fixed assets | 10 | |
Changes in: | ||
Prepaid expenses and other assets | (173) | (1,627) |
Accounts payable | (2,977) | (792) |
Accrued expense and other liabilities | (2,962) | 631 |
Net cash used in operating activities | (23,974) | (17,899) |
Investing activities: | ||
Purchase of property and equipment | (30) | (1,075) |
Net cash and restricted cash used in investing activities | (30) | (1,075) |
Financing activities: | ||
Proceeds from exercise of stock options | 352 | 1,561 |
Payments related to capital lease | (22) | |
Issuance of common stock, net of issuance costs | 69,978 | |
Net settlement of vested restricted stock units to fund related employee statutory tax withholdings | (186) | |
Net cash provided by financing activities | 70,144 | 1,539 |
Net (decrease) increase in cash, cash equivalents, and restricted cash | 46,140 | (17,435) |
Cash, cash equivalents, and restricted cash, beginning of period | 48,383 | 73,526 |
Cash, cash equivalents, and restricted cash, end of period | 94,523 | 56,091 |
Supplemental cash flow information | ||
Interest paid | 526 | 342 |
Supplemental disclosure of non-cash investing and financing activities | ||
Issuance costs in accounts payable and accrued expenses | 53 | |
Vesting of restricted stock | $ (186) | $ 3 |
Nature of the Business, Basis o
Nature of the Business, Basis of Presentation, and Going Concern | 3 Months Ended |
Mar. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of the Business, Basis of Presentation, and Going Concern | 1. Nature of the Business, Basis of Presentation, and Going Concern Kaleido Biosciences, Inc. and its wholly owned subsidiaries (the “Company”) is a clinical-stage healthcare company that was incorporated in Delaware on January 27, 2015 and has a principal place of business in Lexington, Massachusetts. The Company was formed to use its differentiated, chemistry-driven approach to leverage the potential of the microbiome to treat disease and improve human health. The Company is subject to risks common to companies in the biotechnology industry, including, but not limited to, successful development of technology, obtaining additional funding, protection of proprietary technology, compliance with government regulations, risks of failure of preclinical studies (including ex vivo On June 4, 2020, the Company completed a public offering (the “Offering”), pursuant to which it issued and sold 4,750,000 shares of the common stock. The aggregate net proceeds received by the Company from the Offering were $33,182. On July 1, 2020, 185,000 shares were exercised under the Underwriters’ overallotment option for net proceeds of $1,260. On August 4, 2020, the Company entered into an Equity Distribution Agreement (the “Sales Agreement”) with a sales agent for the sale of up to $50,000 of the Company’s shares of common stock, from time to time in an at-the-market public offering (the “ATM”). The sales agent is entitled to compensation at a fixed commission rate of 3.0% of the gross proceeds from the sale of the Company’s common stock pursuant to the Sales Agreement. During the year ended December 31, 2020, the Company sold 361,299 shares of its common stock under the ATM which resulted in aggregate net proceeds of $3,432 after payment of related commissions. During the quarter ended March 31, 2021, the Company sold 309,656 shares of its common stock which resulted in aggregate net proceeds of $4,860. As of March 31, 2021, there was $41,451 available under the ATM. On February 8, 2021, the Company completed a public offering (the “2021 Offering”), pursuant to which the Company issued and sold 6,037,500 shares of common stock for net proceeds of $65,265, which included the full exercise of the Underwriters’ overallotment option. The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As of March 31, 2021, the Company had an accumulated deficit of $297,221. The Company expects to continue to generate operating losses and use cash in operations in the foreseeable future. As of March 31, 2021, the Company had cash and cash equivalents of $92,362, and management expects that the cash and cash equivalents at March 31, 2021 will be sufficient to fund its operating expenses and capital expenditure requirements into the first quarter of 2022. Based on its recurring losses from operations incurred since inception, expectation of continuing operating losses for the foreseeable future, and need to raise additional capital to finance its future operations, the Company has concluded that there is substantial doubt regarding the Company’s ability to continue as a going concern within one year after the date that these consolidated financial statements are issued. These financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company will require substantial additional capital to fund its research and development and ongoing operating expenses. These capital requirements are expected to be funded through debt and equity offerings as well as possible strategic collaborations with other companies. If the Company is unable to raise additional funds when needed, it may be required to delay, reduce or eliminate its product development or future commercialization efforts, or grant rights to develop and market product candidates that the Company would otherwise prefer to develop and market itself. While there can be no assurance the Company will be able to successfully reduce operating expenses or raise additional capital, management believes the historical success in managing cash flows and obtaining capital will continue in the foreseeable future. A novel strain of coronavirus (COVID-19) was first identified in late 2019, and subsequently declared a global pandemic by the World Health Organization on March 11, 2020. As a result of the outbreak, many companies have experienced disruptions in their operations and in markets served. The Company has instituted some and may take additional temporary precautionary measures intended to help minimize the risk of the virus to its employees, including implementing a work-at-home policy, providing flexibility for working parents, implementing safety measures for those employees who continue to go into the office to complete their work and suspending all non-essential business-related travel. The full extent of the future impacts of COVID-19 on our operations, including the timing and ability of the Company to complete certain clinical trials and other efforts to advance the development of our MMTs, is uncertain. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Unaudited interim financial information The condensed consolidated financial statements of the Company included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted from this report, as is permitted by such rules and regulations. Accordingly, these consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the annual report on Form 10-K filed with the SEC on March 3, 2021. All intercompany transactions and balances of the subsidiaries have been eliminated in consolidation. In the opinion of management, the information furnished reflects all adjustments, all of which are of a normal and recurring nature, necessary for a fair representation of the results for the reported interim periods. Use of Estimates The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Collaboration Revenue The Company analyzes its collaboration arrangements to assess whether they are within the scope of ASC Topic 808, Collaborative Arrangements Revenue from Contracts with Customers The Company recognizes revenue after applying the following five steps: 1) Identification of the contract, or contracts, with a customer, 2) Identification of the performance obligations in the contract, including whether they are distinct within the context of the contract 3) Determination of the transaction price, including the constraint on variable consideration 4) Allocation of the transaction price to the performance obligations in the contract 5) Recognition of revenue when, or as, performance obligations are satisfied If a contract is determined to be within the scope of ASC 606 at inception, the Company assesses the goods or services promised within such contract, determines which of those goods and services are performance obligations, and assesses whether each promised good or service is distinct. Promised goods and services are considered distinct provided that: (i) the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (that is, the good or service is capable of being distinct) and (ii) the entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (that is, the promise to transfer the good or service is distinct within the context of the contract). In assessing whether a promised good or service is distinct, the Company considers factors such as the research, manufacturing and commercialization capabilities of the collaboration partner and the availability of the associated expertise in the general marketplace. The Company also considers the intended benefit of the contract in assessing whether a promised good or service is separately identifiable from other promises in the contract. If a promised good or service is not distinct, an entity is required to combine that good or service with other promised goods or services until it identifies a bundle of goods or services that is distinct. The Company may provide options to additional goods or services in such arrangements exercisable at a customer’s discretion. The Company assesses if these options provide a material right to the customer and if so, they are considered performance obligations. The identification of material rights requires judgments related to the determination of the value of the underlying good and services to the option exercise price. The Company determines transaction price based on the amount of consideration the Company expects to receive for transferring the promised goods or services in the contract. Consideration may be fixed, variable, or a combination of both. The Company then allocates the transaction price to each performance obligation based on the relative standalone selling prices (“SSP”). SSP is determined at contract inception and is not updated to reflect changes between contract inception and when the performance obligations are satisfied. In developing the SSP for a performance obligation, the Company considers applicable market conditions and relevant entity-specific factors, including factors that were contemplated in negotiating the agreement with the customer and estimated costs. If the consideration promised in a contract includes a variable amount, the Company estimates the amount of consideration to which it will be entitled by using the expected value method or the most likely amount method. The Company includes the unconstrained amount of estimated variable consideration in the transaction price. The amount included in the transaction price is constrained to the amount for which it is probable that a significant reversal of cumulative revenue recognized will not occur. At the end of each subsequent reporting period, the Company re-evaluates the estimated variable consideration included in the transaction price and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied, either at a point in time or over time, and if over time recognition is based on the use of an output or input method. Amounts received prior to satisfying the revenue recognition criteria are recorded as deferred revenue in the Company’s condensed consolidated balance sheets. If the related performance obligation is expected to be satisfied within the next twelve months this will be classified in current liabilities. Amounts recognized as revenue prior to receipt are recorded as other current assets in the Company's balance sheets. If the Company expects to have an unconditional right to receive the consideration in the next twelve months, this will be classified in other current assets. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”), which applies to all leases and will require the Company to record most leases on the balance sheet. The Company will use a modified retrospective approach of adoption for ASU 2016-02. As an emerging growth company, this standard is required to be adopted on January 1, 2022, and the Company is evaluating the impact that the adoption of ASU 2016-02 will have on its consolidated financial statements. The Company expects to recognize a significant lease obligation and right to use asset upon adoption. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 3. Fair Value Measurements The following tables set forth by level, within the fair value hierarchy, the assets carried at fair value on a recurring basis: Fair Value Measurements as of March 31, 2021 Level 1 Level 2 Level 3 Total Assets: Money market funds included within cash and cash equivalents $ 25,412 — — $ 25,412 Total $ 25,412 — — $ 25,412 Fair Value Measurements as of December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Money market funds included within cash and cash equivalents $ 45,410 — — $ 45,410 Total $ 45,410 — — $ 45,410 The fair value of money market funds was measured by the Company based on quoted market prices. Financial Instruments Not Recorded at Fair Value – The carrying value of cash, cash equivalents, restricted cash, accounts payable and accrued expenses that are reported on the condensed consolidated balance sheets approximate their fair value due to the short-term nature of these assets and liabilities. The carrying value of the long-term debt approximates fair value as evidenced by the recent refinancings. |
Property and Equipment, net
Property and Equipment, net | 3 Months Ended |
Mar. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, net | 4. Property and Equipment, net Property and equipment consist of the following: As of March 31, 2021 December 31, 2020 Laboratory equipment $ 7,302 $ 6,843 Office and computer equipment 1,590 1,590 Leasehold improvements 1,910 1,910 Construction in process 1,087 1,612 Property and equipment – at cost 11,889 11,955 Less accumulated depreciation and amortization (4,056 ) (3,493 ) Property and equipment – net $ 7,833 $ 8,462 Depreciation and amortization expense for the three months ended March 31, 2021 and 2020 was $577 and $369, respectively. During the quarter ended March 31, 2021, the Company recorded gross fixed asset disposal of $24 and related accumulated depreciation of $14. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | 5. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: As of March 31, 2021 December 31, 2020 Payroll and benefits $ 834 $ 2,943 Consulting service 513 1,049 Legal service 133 173 Research and development 2,742 3,010 Interest 181 181 Deferred revenue 281 498 Other 1,018 782 Accrued expenses and other current liabilities $ 5,702 $ 8,636 |
Debt Financing
Debt Financing | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt Financing | 6. Debt Financing On December 31, 2019, the Company entered into a Credit Agreement (the “Credit Agreement”) with Hercules Capital, Inc. (the “Lender”). Under the Credit Agreement, the Company borrowed $22,500, and the Company has the option to draw down an additional $12,500 if certain milestones and conditions are met. The Company incurred fees of $410, which was paid to the Lender on the closing date. These amounts were recorded as a debt discount and are being amortized as interest expense using the effective interest method over the life of the Credit Agreement. The Credit Agreement also includes an end of term charge equal to 7.55% of the aggregate principal amount of all advances. The end of term charge, totaling $1,698 at March 31, 2021, was recognized as a debt discount and is reflected as a reduction in the carrying value of the debt and recorded in other long-term liabilities. The debt discount created by the end of term charge is being accreted and will be recognized as additional interest expense over the term of the Credit Agreement using the effective interest method. The Credit Agreement contains customary representations and warranties, events of default and affirmative and negative covenants, including, among others, covenants that limit or restrict the Company’s ability to, among other things, incur additional indebtedness, merge or consolidate, make acquisitions, pay dividends or other distributions or repurchase equity, make investments, dispose of assets and enter into certain transactions with affiliates, in each case subject to certain exceptions. As security for its obligations under the Credit Agreement, the Company granted the Lender a first priority security interest on substantially all of the Company’s assets (other than intellectual property), and subject to certain exceptions. The outstanding principal under the Credit Agreement has a 48-month term with interest only payments for the first 15 months, which period can be extended to up to 24 months, depending on the achievement of certain performance milestones. The principal bears interest at a rate equal to the greater of (i) 8.95% plus the prime rate minus 4.75% and (ii) 8.95%. The Credit Agreement includes mandatory prepayment provisions that require prepayment upon the occurrence of a change in control event. On June 15, 2020, the Company entered into a Second Amendment to Loan and Security Agreement (the “Amendment”). The Amendment was entered into for the primary purpose of amending the Credit Agreement as follows: (i) the second tranche of the term loan (the “Term Loan”) is terminated; (ii) amounts available under Tranche 3 of the Term Loan is increased to $12,500 from the previous $7,500 availability amount and its availability period is extended through December 15, 2021, subject to future approval by the Agent’s investment committee; (iii) the interest-only period is extended through July 31, 2021; (iv) the interest rate on borrowings is increased by 0.4%, such that the per annum interest rate on outstanding borrowings will be the greater of (a) 9.35% and (b) 9.35% plus the Wall Street Journal prime rate minus 3.25%; (v) the variable amount and duration of a minimum cash covenant in the Agreement are amended. The Amendment has been accounted for as a modification and the Company incurred fees of $79, which was paid to the lender on the closing date and were recorded as a debt discount, which will be amortized as interest expense using the effective interest method. Future principal payments under the Credit Agreement as of March 31, 2021 are as follows (in thousands): 2021 3,379 2022 8,686 2023 9,547 2024 888 Total future principal payments 22,500 Less unamortized debt discount 1,308 Total balance $ 21,192 On April 30, 2021, the Company entered into a Third Amendment to Loan and Security Agreement (the “Amendment”). The Amendment was entered into for the primary ppickurpose of amending the Agreement as follows: (i) the interest-only period was extended through January 31, 2022; (ii) the second tranche of the term loan (the “Term Loan”) was reinstated and the related $5,000 is available to be drawn at the Company’s option on or before June 1, 2021; and (iii) the Minimum Cash Covenant was reduced from $22,500 to $15,000. The Company incurred fees of $20, which was paid to the lender on the closing date. |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and contingencies | 7. Commitments and contingencies Facilities Leases In March 2018, the Company entered into a non-cancelable ten-year Rent expense for the three months ended March 31, 2021 and 2020 totaled $1,623 and $1,779, respectively. Future minimum lease payments under the non-cancelable operating leases consisted of the following as of March 31, 2021: Year Ending December 31, 2021 $ 4,532 2022 6,207 2023 6,393 2024 6,584 2025 6,782 Thereafter 25,502 $ 56,000 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | 8. Stockholders’ Equity Modification of equity awards On January 20, 2021, the Company entered into a separation agreement with the former Chief Medical Officer and Head of Research and Development of the Company, which amended an existing employment agreement and provided for changes in the term of service and compensation under the agreement. The outstanding options and restricted stock units held by the former Chief Medical Officer were modified to accelerate certain vesting provisions and the period of exercisability. As a result, the Company recorded stock-based compensation expense of $1,968 related to the incremental fair value of the modified awards during the three months ended March 31, 2021. |
Net Loss per Share
Net Loss per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 9. Net Loss per Share Basic and diluted net loss per common share is determined by dividing net loss by the weighted-average common shares outstanding during the period. The Company has computed diluted net loss per common share after giving consideration to all potentially dilutive common shares, including options to purchase common stock and unvested restricted common stock, outstanding during the period determined using the treasury stock method, except where the effect of including such securities would be anti-dilutive. Because the Company has reported net losses since inception, these potential common shares have been anti-dilutive and therefore basic and diluted net loss per share have been equivalent. The following table presents securities that have been excluded from the computations of diluted weighted-average shares outstanding as they would be anti-dilutive: As of March 31, 2021 2020 Options to purchase common stock 6,206,765 6,644,275 Restricted stock units 272,296 50,000 6,479,061 6,694,275 |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 10. Revenue In December 2019, the Company entered into a research collaboration agreement with Janssen’s World Without Disease Accelerator (“Janssen”), part of the Janssen Pharmaceutical Companies of Johnson & Johnson, to explore the potential for MMT to prevent the onset of childhood allergy and other atopic, immune and metabolic conditions. The collaboration includes three milestones of research and development with deliverables due to Janssen at end of the milestone at which point Janssen will have 60 days to decide to proceed with the next milestone. The Company assessed the Janssen collaboration agreement in accordance with ASC 808 and ASC 606 and concluded that it represents a contract with a customer and is within the scope of ASC 606. The promised goods and services represent one combined performance obligation and the entire transaction price will be allocated to that single combined performance obligation. In addition, the Company concluded the right to proceed with the following milestones does not provide any discounts to Janssen if it decides to proceed with the next milestones. Each milestone is considered a separate contract and will Under the Janssen collaboration agreement, Janssen is obligated to reimburse the Company for the costs incurred under an agreed upon research plan. Costs incurred are billed by the Company to Janssen at completion of each milestone. The Company recognizes revenue over the research period and as the performance obligation is satisfied using total estimated hours to be incurred throughout each milestone. of March 31, 2021, the Company recognized $218 of previously recorded deferred revenue within current liabilities on the Company’s condensed consolidated balance sheets related to the Janssen collaboration agreement and the aggregate consideration is not expected to be material. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Consolidation | All intercompany transactions and balances of the subsidiaries have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. |
Collaboration Revenue | Collaboration Revenue The Company analyzes its collaboration arrangements to assess whether they are within the scope of ASC Topic 808, Collaborative Arrangements Revenue from Contracts with Customers The Company recognizes revenue after applying the following five steps: 1) Identification of the contract, or contracts, with a customer, 2) Identification of the performance obligations in the contract, including whether they are distinct within the context of the contract 3) Determination of the transaction price, including the constraint on variable consideration 4) Allocation of the transaction price to the performance obligations in the contract 5) Recognition of revenue when, or as, performance obligations are satisfied If a contract is determined to be within the scope of ASC 606 at inception, the Company assesses the goods or services promised within such contract, determines which of those goods and services are performance obligations, and assesses whether each promised good or service is distinct. Promised goods and services are considered distinct provided that: (i) the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (that is, the good or service is capable of being distinct) and (ii) the entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (that is, the promise to transfer the good or service is distinct within the context of the contract). In assessing whether a promised good or service is distinct, the Company considers factors such as the research, manufacturing and commercialization capabilities of the collaboration partner and the availability of the associated expertise in the general marketplace. The Company also considers the intended benefit of the contract in assessing whether a promised good or service is separately identifiable from other promises in the contract. If a promised good or service is not distinct, an entity is required to combine that good or service with other promised goods or services until it identifies a bundle of goods or services that is distinct. The Company may provide options to additional goods or services in such arrangements exercisable at a customer’s discretion. The Company assesses if these options provide a material right to the customer and if so, they are considered performance obligations. The identification of material rights requires judgments related to the determination of the value of the underlying good and services to the option exercise price. The Company determines transaction price based on the amount of consideration the Company expects to receive for transferring the promised goods or services in the contract. Consideration may be fixed, variable, or a combination of both. The Company then allocates the transaction price to each performance obligation based on the relative standalone selling prices (“SSP”). SSP is determined at contract inception and is not updated to reflect changes between contract inception and when the performance obligations are satisfied. In developing the SSP for a performance obligation, the Company considers applicable market conditions and relevant entity-specific factors, including factors that were contemplated in negotiating the agreement with the customer and estimated costs. If the consideration promised in a contract includes a variable amount, the Company estimates the amount of consideration to which it will be entitled by using the expected value method or the most likely amount method. The Company includes the unconstrained amount of estimated variable consideration in the transaction price. The amount included in the transaction price is constrained to the amount for which it is probable that a significant reversal of cumulative revenue recognized will not occur. At the end of each subsequent reporting period, the Company re-evaluates the estimated variable consideration included in the transaction price and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied, either at a point in time or over time, and if over time recognition is based on the use of an output or input method. Amounts received prior to satisfying the revenue recognition criteria are recorded as deferred revenue in the Company’s condensed consolidated balance sheets. If the related performance obligation is expected to be satisfied within the next twelve months this will be classified in current liabilities. Amounts recognized as revenue prior to receipt are recorded as other current assets in the Company's balance sheets. If the Company expects to have an unconditional right to receive the consideration in the next twelve months, this will be classified in other current assets. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”), which applies to all leases and will require the Company to record most leases on the balance sheet. The Company will use a modified retrospective approach of adoption for ASU 2016-02. As an emerging growth company, this standard is required to be adopted on January 1, 2022, and the Company is evaluating the impact that the adoption of ASU 2016-02 will have on its consolidated financial statements. The Company expects to recognize a significant lease obligation and right to use asset upon adoption. |
Net Loss per Share | Basic and diluted net loss per common share is determined by dividing net loss by the weighted-average common shares outstanding during the period. The Company has computed diluted net loss per common share after giving consideration to all potentially dilutive common shares, including options to purchase common stock and unvested restricted common stock, outstanding during the period determined using the treasury stock method, except where the effect of including such securities would be anti-dilutive. Because the Company has reported net losses since inception, these potential common shares have been anti-dilutive and therefore basic and diluted net loss per share have been equivalent. The following table presents securities that have been excluded from the computations of diluted weighted-average shares outstanding as they would be anti-dilutive: As of March 31, 2021 2020 Options to purchase common stock 6,206,765 6,644,275 Restricted stock units 272,296 50,000 6,479,061 6,694,275 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Carried at Fair Value on a Recurring Basis | The following tables set forth by level, within the fair value hierarchy, the assets carried at fair value on a recurring basis: Fair Value Measurements as of March 31, 2021 Level 1 Level 2 Level 3 Total Assets: Money market funds included within cash and cash equivalents $ 25,412 — — $ 25,412 Total $ 25,412 — — $ 25,412 Fair Value Measurements as of December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Money market funds included within cash and cash equivalents $ 45,410 — — $ 45,410 Total $ 45,410 — — $ 45,410 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consist of the following: As of March 31, 2021 December 31, 2020 Laboratory equipment $ 7,302 $ 6,843 Office and computer equipment 1,590 1,590 Leasehold improvements 1,910 1,910 Construction in process 1,087 1,612 Property and equipment – at cost 11,889 11,955 Less accumulated depreciation and amortization (4,056 ) (3,493 ) Property and equipment – net $ 7,833 $ 8,462 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: As of March 31, 2021 December 31, 2020 Payroll and benefits $ 834 $ 2,943 Consulting service 513 1,049 Legal service 133 173 Research and development 2,742 3,010 Interest 181 181 Deferred revenue 281 498 Other 1,018 782 Accrued expenses and other current liabilities $ 5,702 $ 8,636 |
Debt Financing (Tables)
Debt Financing (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Future Principal Payments | Future principal payments under the Credit Agreement as of March 31, 2021 are as follows (in thousands): 2021 3,379 2022 8,686 2023 9,547 2024 888 Total future principal payments 22,500 Less unamortized debt discount 1,308 Total balance $ 21,192 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments | Future minimum lease payments under the non-cancelable operating leases consisted of the following as of March 31, 2021: Year Ending December 31, 2021 $ 4,532 2022 6,207 2023 6,393 2024 6,584 2025 6,782 Thereafter 25,502 $ 56,000 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Securities Excluded from Computation of Diluted Weighted-Average Shares Outstanding | The following table presents securities that have been excluded from the computations of diluted weighted-average shares outstanding as they would be anti-dilutive: As of March 31, 2021 2020 Options to purchase common stock 6,206,765 6,644,275 Restricted stock units 272,296 50,000 6,479,061 6,694,275 |
Nature of the Business, Basis_2
Nature of the Business, Basis of Presentation, and Going Concern (Details) - USD ($) | Feb. 08, 2021 | Jul. 01, 2020 | Jun. 04, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Aug. 04, 2020 |
Conversion of Stock [Line Items] | |||||||
Net proceeds from exercise of shares | $ 352,000 | $ 1,561,000 | |||||
Common stock, value, issued under the ATM sales agreement | 42,000 | $ 36,000 | |||||
Accumulated deficit | (297,221,000) | (274,179,000) | |||||
Cash and cash equivalents | 92,362,000 | 46,222,000 | |||||
Public Offering | |||||||
Conversion of Stock [Line Items] | |||||||
Issuance of common stock (in shares) | 6,037,500 | 4,750,000 | |||||
Net proceeds from offering | $ 65,265,000 | $ 33,182,000 | |||||
Over-Allotment Option | |||||||
Conversion of Stock [Line Items] | |||||||
Number of shares exercised | 185,000 | ||||||
Net proceeds from exercise of shares | $ 1,260,000 | ||||||
At-The-Market Sales Agreement | |||||||
Conversion of Stock [Line Items] | |||||||
Common stock, value, issued under the ATM sales agreement | $ 309,656 | 361,299 | |||||
Percentage of gross proceeds payable as commission | 3.00% | ||||||
Net proceeds from the sale of common stock | $ 4,860,000 | $ 3,432,000 | |||||
Common stock, value, available under the ATM sales agreement | $ 41,451,000 | ||||||
At-The-Market Sales Agreement | Maximum | |||||||
Conversion of Stock [Line Items] | |||||||
Common stock, value, issued under the ATM sales agreement | $ 50,000,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets Carried at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Assets, Fair Value Disclosure [Abstract] | ||
Assets, fair value disclosure | $ 25,412 | $ 45,410 |
Money market funds included within cash and cash equivalents | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and cash equivalents fair value disclosure | 25,412 | 45,410 |
Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, fair value disclosure | 25,412 | 45,410 |
Level 1 | Money market funds included within cash and cash equivalents | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash and cash equivalents fair value disclosure | $ 25,412 | $ 45,410 |
Property and Equipment, net (De
Property and Equipment, net (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Property Plant And Equipment [Line Items] | |||
Property and equipment – at cost | $ 11,889 | $ 11,955 | |
Less accumulated depreciation and amortization | (4,056) | (3,493) | |
Property and equipment – net | 7,833 | 8,462 | |
Depreciation and amortization | 577 | $ 369 | |
Gross fixed asset disposal | 24 | ||
Accumulated depreciation related to fixed asset disposal | 14 | ||
Laboratory equipment | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment – at cost | 7,302 | 6,843 | |
Office and computer equipment | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment – at cost | 1,590 | 1,590 | |
Leasehold improvements | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment – at cost | 1,910 | 1,910 | |
Construction in process | |||
Property Plant And Equipment [Line Items] | |||
Property and equipment – at cost | $ 1,087 | $ 1,612 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Payables And Accruals [Abstract] | ||
Payroll and benefits | $ 834 | $ 2,943 |
Consulting service | 513 | 1,049 |
Legal service | 133 | 173 |
Research and development | 2,742 | 3,010 |
Interest | 181 | 181 |
Deferred revenue | 281 | 498 |
Other | 1,018 | 782 |
Accrued expenses and other current liabilities | $ 5,702 | $ 8,636 |
Debt Financing - Narrative (Det
Debt Financing - Narrative (Details) - USD ($) | Mar. 31, 2021 | Jun. 15, 2020 | Apr. 30, 2021 | Dec. 31, 2019 | Mar. 31, 2021 | Apr. 29, 2021 |
2019 Credit Agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 22,500,000 | |||||
Option to draw down an additional amount | 12,500,000 | |||||
Line of credit facility fees amount payable | $ 410,000 | |||||
Credit agreement end of term charge percentage | 7.55% | |||||
debt discount | $ 1,698,000 | |||||
Credit agreement, expiration period | 48 months | |||||
Credit agreement interest payment period | 15 months | |||||
Credit agreement interest payment extension period | 24 months | |||||
2019 Credit Agreement | Line of Credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument effective percentage interest rate | 8.95% | |||||
Debt instrument, basis spread on variable rate | 4.75% | |||||
Debt instrument, description of variable rate basis | The principal bears interest at a rate equal to the greater of (i) 8.95% plus the prime rate minus 4.75% and (ii) 8.95%. | |||||
Tranche 3 | Term Loan | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 12,500,000 | |||||
Current borrowing capacity | $ 7,500,000 | |||||
Debt instrument, maturity date | Dec. 15, 2021 | |||||
Debt instrument, interest maturity date | Jul. 31, 2021 | |||||
2020 Amendment | Term Loan | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility fees amount payable | $ 79,000 | |||||
Debt instrument, basis spread on variable rate | 9.35% | |||||
Debt instrument, description of variable rate basis | 9.35% plus the Wall Street Journal prime rate minus 3.25% | |||||
2020 Amendment | Term Loan | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt instrument effective percentage interest rate | 0.40% | |||||
2021 Amendment | Term Loan | Subsequent Event | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 15,000,000 | $ 22,500,000 | ||||
Line of credit facility fees amount payable | 20,000 | |||||
Current borrowing capacity | $ 5,000,000 | |||||
Debt instrument, interest maturity date | Jan. 31, 2022 |
Debt Financing - Summary of Fut
Debt Financing - Summary of Future Principal Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Line of Credit Facility [Line Items] | ||
Long term debt, net of unamortized debt discount | $ 16,433 | $ 18,375 |
2019 Credit Agreement | ||
Line of Credit Facility [Line Items] | ||
2021 | 3,379 | |
2022 | 8,686 | |
2023 | 9,547 | |
2024 | 888 | |
Total future principal payments | 22,500 | |
Less unamortized debt discount | 1,308 | |
Long term debt, net of unamortized debt discount | $ 21,192 |
Commitments and contingencies -
Commitments and contingencies - Facilities Leases (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | ||||
Operating lease, term of contract | 10 years | 10 years | ||
Lease expiration | 2029 | |||
Rent expense | $ 1,623 | $ 1,779 |
Commitments and contingencies_2
Commitments and contingencies - Future Minimum Lease Payments (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2021 | $ 4,532 |
2022 | 6,207 |
2023 | 6,393 |
2024 | 6,584 |
2025 | 6,782 |
Thereafter | 25,502 |
Total future minimum lease payments | $ 56,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Share Based Compensation Allocation And Classification In Financial Statements [Abstract] | |
Stock-based compensation expense | $ 1,968 |
Net Loss per Share (Details)
Net Loss per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities | 6,479,061 | 6,694,275 |
Options to purchase common stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities | 6,206,765 | 6,644,275 |
Restricted stock units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities | 272,296 | 50,000 |
Revenue (Details)
Revenue (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Dec. 31, 2019Milestone | Mar. 31, 2021USD ($) | Mar. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | |||
Revenue from Contract with Customer, Product and Service [Extensible List] | kldo:CollaborationRevenueMember | kldo:CollaborationRevenueMember | |
Collaboration revenue | $ 297 | ||
Deferred revenue, recognized | $ 218 | ||
Expected research term of arrangement completion year | 2021 | ||
Janssen | Collaboration Agreement | |||
Disaggregation Of Revenue [Line Items] | |||
Number of collaboration milestones | Milestone | 3 | ||
Number of days which decide to next milestone | 60 days |