Kadmon (KDMN) 10-Q 5 Nov 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Nov. 02, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
Document Fiscal Year Focus	2020
Document Transition Report	false
Entity File Number	001-37841
Entity Registrant Name	Kadmon Holdings, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-3576929
Entity Address, Address Line One	450 East 29th Street
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10016
City Area Code	833
Local Phone Number	900-5366
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Title of 12(b) Security	Common stock, par value $0.001 per share
Trading Symbol	KDMN
Security Exchange Name	NASDAQ
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		171,512,945
Amendment Flag	false
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001557142
Current Fiscal Year End Date	--12-31

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 105,949	$ 139,597
Marketable debt securities, available-for-sale	44,514
Accounts receivable, net	373	954
Inventories, net	28	640
Prepaid expenses and other current assets	2,240	1,416
Investment, equity securities	9,238	41,997
Total current assets	162,342	184,604
Fixed assets, net	1,620	2,444
Right of use lease asset	17,013	19,651
Goodwill	3,580	3,580
Restricted cash	2,117	2,116
Investment, at cost	2,300	2,300
Other noncurrent assets	17	103
Total assets	188,989	214,798
Current liabilities:
Accounts payable	12,110	9,043
Accrued expenses	10,212	14,248
Term debt - current	679
Lease liability - current	4,143	3,966
Warrant liabilities	1,016	1,485
Total current liabilities	28,160	28,742
Lease liability - noncurrent	16,631	19,759
Deferred tax liability	461	461
Term debt - noncurrent	2,378
Other long term liabilities		101
Total liabilities	47,630	49,063
Commitments and contingencies (Note 12)
Stockholders’ equity:
Convertible preferred stock, $0.001 par value; 10,000,000 shares authorized at September 30, 2020 and December 31, 2019; 28,708 shares issued and outstanding at September 30, 2020 and December 31, 2019.	44,011	42,433
Common stock, $0.001 par value; 400,000,000 shares authorized at September 30, 2020 and December 31, 2019; 171,220,592 and 159,759,996 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively	171	160
Additional paid-in capital	512,904	456,211
Accumulated deficit	(415,702)	(333,069)
Accumulated other comprehensive loss	(25)
Total stockholders’ equity	141,359	165,735
Total liabilities and stockholders’ equity	$ 188,989	$ 214,798

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2020	Dec. 31, 2019
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	400,000,000	400,000,000
Common stock, shares issued	171,220,592	159,759,996
Common stock, shares outstanding	171,220,592	159,759,996
Convertible Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	28,708	28,708
Preferred stock, shares outstanding	28,708	28,708

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenues:
Total revenue	$ 490	$ 226	$ 7,673	$ 693
Cost of sales	214	73	704	149
Write-down of inventory	148		1,054	932
Gross profit	128	153	5,915	(388)
Operating expenses:
Research and development	17,268	13,227	46,658	43,326
Selling, general and administrative	10,865	10,174	30,299	27,101
Total operating expenses	28,133	23,401	76,957	70,427
Loss from operations	(28,005)	(23,248)	(71,042)	(70,815)
Other income (expense) :
Interest income	208	418	802	1,622
Interest expense	(8)	(931)	(13)	(2,799)
Change in fair value of warrant liabilities	602	(126)	469	(70)
Realized gain on equity securities	4,274		19,784
Unrealized (loss) gain on equity securities	(3,254)	(38,634)	(32,759)	22,304
Gain on extinguishment of obligation	1,626		1,754
Other (expense) income	(49)	126	(50)	115
Total other income (expense)	3,399	(39,147)	(10,013)	21,172
Loss before income tax expense	(24,606)	(62,395)	(81,055)	(49,643)
Income tax expense
Net loss	(24,606)	(62,395)	(81,055)	(49,643)
Deemed dividend on convertible preferred stock	543	517	1,578	1,540
Net loss attributable to common stockholders	$ (25,149)	$ (62,912)	$ (82,633)	$ (51,183)
Basic and diluted net loss per share of common stock	$ (0.15)	$ (0.49)	$ (0.50)	$ (0.40)
Weighted average basic and diluted shares of common stock outstanding	169,310,056	128,225,469	165,107,295	128,360,618
Other comprehensive loss:
Net unrealized loss on available-for-sale securities	$ 25		$ 25
Other comprehensive loss	25		25
Comprehensive loss attributable to common shareholders	(25,174)	$ (62,912)	(82,658)	$ (51,183)
Net Sales [Member]
Revenues:
Total revenue	339	50	1,227	164
License and Other Revenue [Member]
Revenues:
Total revenue	$ 151	$ 176	$ 6,446	$ 529

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Loss [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2018	$ 42,231	$ 113	$ 315,710		$ (269,643)	$ 88,411
Balance, Shares at Dec. 31, 2018	30,000	113,130,817
Share-based compensation expense			5,587			5,587
Common stock issued in public offering, net		$ 17	35,679			35,696
Common stock issued in public offering, net, shares		16,316,805
Common stock issued under ESPP plan			73			73
Common stock issued under ESPP plan, shares		32,273
Beneficial conversion feature on convertible preferred stock	$ 308				(308)
Accretion of dividends on convertible preferred stock	1,232				(1,232)
Common stock issued upon conversion of convertible preferred stock	$ (1,856)		1,856
Common stock issued upon conversion of convertible preferred stock, shares	(1,292)	154,645
Net income (loss)					(49,643)	(49,643)
Balance at Sep. 30, 2019	$ 41,915	$ 130	358,905		(320,826)	80,124
Balance, Shares at Sep. 30, 2019	28,708	129,634,540
Balance at Dec. 31, 2018	$ 42,231	$ 113	315,710		(269,643)	88,411
Balance, Shares at Dec. 31, 2018	30,000	113,130,817
Balance at Dec. 31, 2019	$ 42,433	$ 160	456,211		(333,069)	165,735
Balance, Shares at Dec. 31, 2019	28,708	159,759,996
Balance at Jun. 30, 2019	$ 41,398	$ 130	357,443		(257,914)	141,057
Balance, Shares at Jun. 30, 2019	28,708	129,634,540
Share-based compensation expense			1,462			1,462
Beneficial conversion feature on convertible preferred stock	$ 103				(103)
Accretion of dividends on convertible preferred stock	414				(414)
Net income (loss)					(62,395)	(62,395)
Balance at Sep. 30, 2019	$ 41,915	$ 130	358,905		(320,826)	80,124
Balance, Shares at Sep. 30, 2019	28,708	129,634,540
Balance at Dec. 31, 2019	$ 42,433	$ 160	456,211		(333,069)	165,735
Balance, Shares at Dec. 31, 2019	28,708	159,759,996
Share-based compensation expense			7,111			7,111
Common stock issued in public offering, net		$ 11	48,430			48,441
Common stock issued in public offering, net, shares		11,060,786
Common stock issued under ESPP plan			216			216
Common stock issued under ESPP plan, shares		98,840
Common stock issued for warrant exercises			7			7
Common stock issued for warrant exercises, shares		2,777
Common stock issued for option exercises			929			$ 929
Common stock issued for option exercises, shares		298,193				304,669
Beneficial conversion feature on convertible preferred stock	$ 316				(316)
Accretion of dividends on convertible preferred stock	1,262				(1,262)
Other comprehensive loss				$ (25)		$ (25)
Net income (loss)					(81,055)	(81,055)
Balance at Sep. 30, 2020	$ 44,011	$ 171	512,904	(25)	(415,702)	141,359
Balance, Shares at Sep. 30, 2020	28,708	171,220,592
Balance at Jun. 30, 2020	$ 43,468	$ 171	510,171		(390,553)	163,257
Balance, Shares at Jun. 30, 2020	28,708	171,097,067
Share-based compensation expense			2,453			2,453
Common stock issued for option exercises			280			280
Common stock issued for option exercises, shares		123,525
Beneficial conversion feature on convertible preferred stock	$ 109				(109)
Accretion of dividends on convertible preferred stock	434				(434)
Other comprehensive loss				(25)		(25)
Net income (loss)					(24,606)	(24,606)
Balance at Sep. 30, 2020	$ 44,011	$ 171	$ 512,904	$ (25)	$ (415,702)	$ 141,359
Balance, Shares at Sep. 30, 2020	28,708	171,220,592

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net loss	$ (81,055)	$ (49,643)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of premium and discounts on available-for-sale securities	122
Depreciation and amortization of fixed assets	1,263	1,356
Non-cash operating lease cost	2,638	2,495
Write-down of inventory	1,054	932
Amortization of debt discount		283
Share-based compensation	7,111	5,587
Change in fair value of warrant liabilities	(469)	70
Net unrealized loss (gain) on equity securities	12,975	(22,304)
Gain on extinguishment of obligation	(1,754)
Changes in operating assets and liabilities:
Accounts receivable, net	581	1,003
Inventories, net	(442)	(221)
Prepaid expenses and other assets	(738)	346
Accounts payable	2,919	(1,402)
Lease liability	(2,951)	(2,763)
Accrued expenses and other liabilities	(2,383)	314
Net cash used in operating activities	(61,129)	(63,947)
Cash flows from investing activities:
Purchases of investment debt securities	(44,661)
Purchases of fixed assets	(291)	(430)
Proceeds from sale of equity securities	19,784
Net cash used in investing activities	(25,168)	(430)
Cash flows from financing activities:
Proceeds from issuance of common stock, net	48,441	35,696
Proceeds from issuance of term debt	3,057
Proceeds from exercise of options	929
Proceeds from issuance of ESPP shares	216	73
Proceeds from exercise of warrants	7
Net cash provided by financing activities	52,650	35,769
Net decrease in cash, cash equivalents and restricted cash	(33,647)	(28,608)
Cash, cash equivalents and restricted cash, beginning of period	141,713	96,856
Cash, cash equivalents and restricted cash, end of period	108,066	68,248
Components of cash, cash equivalents and restricted cash
Total cash, cash equivalents and restricted cash	108,066	68,248
Supplemental cash flow disclosures:
Cash paid for interest		2,514
Non-cash investing and financing activities:
Unpaid fixed asset additions	148
Operating cash flows paid for amounts included in the measurement of lease liabilities	3,609	3,498
Operating lease liabilities arising from obtaining right-of-use assets		212
Common stock issued upon conversion of convertible preferred stock		1,856
Accounting Standards Update 2016-02 [Member]
Non-cash investing and financing activities:
Cumulative effect of change in accounting principle		27,083
Preferred Stock [Member]
Non-cash investing and financing activities:
Beneficial conversion feature on convertible preferred stock	316	308
Accretion of dividends on convertible preferred stock	$ 1,262	$ 1,232

Organization

Organization	9 Months Ended
	Sep. 30, 2020
Organization [Abstract]
Organization	1. Organization Nature of Business Kadmon Holdings, Inc. (together with its subsidiaries, “Kadmon” or “Company”) is a clinical-stage biopharmaceutical company engaged in the discovery, development and commercialization of small molecules and biologics to address significant unmet medical needs, with a near-term clinical focus on immune and fibrotic diseases as well as immuno-oncology. The Company leverages its multi - disciplinary research and development team members to identify and pursue a diverse portfolio of novel product candidates, both through in-licensing products and employing its small molecule and biologics platforms. Liquidity The Company maintained cash, cash equivalents and marketable debt securities of $ 150.5 million at September 30, 2020. The Company had an accumulated deficit of $ 415.7 million and working capital of $ 134.2 million at September 30, 2020. The Company entered into a Sales Agreement with Cantor Fitzgerald & Co. (“Cantor”) in August 2017 under which the Company could sell up to $ 50.0 million in shares of its common stock in one or more placements at prevailing market prices for its common stock (the “ATM Program”). Any such sales would be effected pursuant to the Company’s registration statement on Form S-3 (File No. 333-233766), which was declared effective by the Securities Exchange Commission (“SEC”) on September 24, 2019. In May 2020, the Company sold 11,060,786 shares of common stock at a weighted average price of $ 4.52 per share through the ATM Program and received total net proceeds of $ 48.5 million (net of $ 1.5 million of commissions payable by the Company to Cantor). Under this registration statement, the Company registered to sell, in one or more transactions, up to $ 200.0 million of common stock, preferred stock, debt securities, warrants, purchase contracts and units. The Company had sold securities totaling an aggregate of $ 151.5 million pursuant to this registration statement as of September 30, 2020. In May 2020, the Company entered into a single transaction pursuant to which it sold approximately 1.1 million ordinary shares of MeiraGTx Holdings plc (“MeiraGTx”) for gross proceeds of $ 15.5 million. In July 2020, the Company entered into an additional single transaction pursuant to which it sold approximately 0.3 million ordinary shares of MeiraGTx for gross proceeds of $ 4.2 million. The Company expects that its cash, cash equivalents and marketable debt securities will enable it to advance its planned commercial launch efforts for belumosudil, if approved, advance certain of its other pipeline product candidates, including KD033 and KD045, and provide for other working capital purposes. Management’s plans include continuing to finance operations through the issuance of debt and sale of additional equity securities, monetization of assets, including the Company’s ownership of MeiraGTx ordinary shares, and expanding the Company’s commercial portfolio through the development of its current pipeline or through strategic collaborations. Any transactions that occur may contain covenants that restrict the ability of management to operate the business or may have rights, preferences or privileges senior to the Company’s common stock and may dilute current stockholders of the Company. The Company also filed a shelf registration statement on Form S-3 (File No. 333-238969) on June 5, 2020, which was declared effective by the SEC on June 16, 2020. Under this registration statement, the Company may sell, in one or more transactions, up to $ 300.0 million of common stock, preferred stock, debt securities, warrants, purchase contracts and units, an amount which includes $ 50.0 million of shares of its common stock that may be issued in the ATM Program under the Sales Agreement with Cantor. The Company had not sold any securities pursuant to this registration statement as of September 30, 2020. The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), which contemplate continuation of the Company as a going concern. The Company has not established a source of revenues sufficient to cover its operating costs, and as such, has been dependent on funding operations through the issuance of debt and sale of equity securities. Since inception, the Company has experienced significant losses and incurred negative cash flows from operations. The Company expects to incur further losses over the next several years as it develops its business. The Company has spent, and expects to continue to spend, a substantial amount of funds in connection with implementing its business strategy, including its planned product development efforts, preparation for its planned clinical trials, performance of clinical trials and its research and discovery efforts. The Company’s c ash, cash equivalents and marketable debt securities will not be sufficient to enable the Company to meet its long-term expected plans, including commercialization of clinical pipeline products, if approved, or initiation or completion of future registration studies. Additionally, the COVID-19 pandemic has had a negative near-term impact on capital markets and may impact the Company’s ability to access capital. The Company has no current commitments for additional financing and may not be successful in its efforts to raise additional funds or achieve profitable operations, and there can be no assurance that additional financing will be available to the Company on commercially acceptable terms or at all. Any amounts raised will be used for further development of the Company’s product candidates, for marketing and promotion, to secure additional property and equipment and for other working capital purposes. If the Company is unable to obtain additional capital (which is not assured at this time), its long-term business plan may not be accomplished and the Company may be forced to curtail or cease operations. These factors individually and collectively raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments or classifications that may result from the possible inability of the Company to continue as a going concern.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation The Company operates in one segment considering the nature of the Company’s products and services, class of customers, methods used to distribute its products and the regulatory environment in which the Company operates. The accompanying consolidated financial statements, which include the accounts of Kadmon Holdings, Inc. and its domestic and international subsidiaries, all of which are wholly owned by Kadmon Holdings, Inc., have been prepared in accordance with GAAP for interim financial information and pursuant to the rules and regulations of the SEC. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the Company’s opinion, the financial statements include all adjustments (consisting of normal recurring adjustments) and disclosures considered necessary in order to make the financial statements not misleading. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the final results that may be expected for the year ending December 31, 2020. These unaudited financial statements should be read in conjunction with the audited financial statements included in Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Use of Estimates The preparation of 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. Actual results could differ from those estimates. The most significant estimates are related to share-based compensation (Note 10) and the accrual of research and development and clinical trial expenses (Note 11). Critical Accounting Policies The Company’s significant accounting policies are disclosed in the audited financial statements included in Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Since the date of such financial statements, there have been no changes to the Company’s significant accounting policies, other than those described below. Debt On April 15, 2020, the Company received the proceeds from a loan in the amount of approximately $ 3.1 million (the “Loan”) from PNC Bank, National Association, as lender, pursuant to the Paycheck Protection Program (“PPP”) of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The Loan matures on April 15, 2022 and bears interest at a rate of 1 % per annum. On August 20, 2020, the loan was amended so that, commencing August 15, 2021, the Company is required to pay the lender equal monthly payments of principal and interest as required to fully amortize by April 15, 2022 the principal amount outstanding on the Loan as of October 15, 2020. The Loan is evidenced by a promissory note dated April 15, 2020 (the “Note”), which contains customary events of default relating to, among other things, payment defaults and breaches of representations and warranties. The Loan may be prepaid by the Company at any time prior to maturity with no prepayment penalties. The application for these funds required the Company to certify in good faith that the then current economic uncertainty made the loan request necessary to support the ongoing operations of the Company. This certification further required the Company to take into account its current business activity and its ability to access other sources of liquidity sufficient to support ongoing operations in a manner that is not significantly detrimental to the business. The Company made this good faith assertion based upon various factors, including the degree of uncertainty introduced to the capital markets as a result of the COVID-19 pandemic and the Company’s dependency on its ability to raise capital to fund ongoing operations. All or a portion of the Loan may be forgiven by the U.S. Small Business Administration (“SBA”) upon application by the Company upon documentation of expenditures in accordance with the SBA requirements. Under the CARES Act, loan forgiveness is available for the sum of eligible and documented payroll costs, covered rent payments, covered mortgage interest and covered utilities during the eight-week period beginning on the date of loan approval. If, despite the Company’s good-faith belief that given the circumstances the Company satisfied all eligibility requirements for the Loan, the Company is later determined to have violated any applicable laws or regulations or it is otherwise determined that the Company was ineligible to receive the Loan, the Company may be required to repay the Loan in its entirety and/or be subject to additional penalties. In the event the Loan, or any portion thereof, is forgiven pursuant to the PPP, the amount forgiven is applied to outstanding principal. The Company used all proceeds from the Loan to retain employees, maintain payroll and make lease, rent and utility payments. Under the terms of the loan, the Company may be eligible for full or partial loan forgiveness. The Company has begun preparations to apply for forgiveness, however, no assurance is provided that the Company will obtain forgiveness for any portion of the Loan. The Company has accounted for the Loan as a debt instrument in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 470, Debt . At September 30, 2020, $ 0.7 million of principal payments due in the third quarter of 2021 have been recorded as short-term debt and the remaining balance of $ 2.4 million is recorded as long-term debt. The Company does not expect to incur any material interest expense under the Loan. Cash, Cash Equivalents and Marketable Debt Securities The Company considers all highly liquid securities with an original or remaining maturity of three months or less at the time of acquisition to be cash equivalents. Marketable debt securities are considered to be available-for-sale and are carried at fair market value. The estimated fair value of the available-for-sale marketable debt securities is determined based on quoted market prices or rates for similar instruments. Unrealized gains and losses, if any, are reported in accumulated other comprehensive income (loss). The cost of marketable debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization and accretion is included in other (expense) income. Realized gains and losses, and declines in value judged to be other-than-temporary, if any, are also included in other (expense) income. Interest and dividends on available-for-sale securities are included in other income. The Company determines the appropriate classification of its investments in debt securities at the time of purchase. All of the Company’s debt securities are classified as available-for-sale and are reported as short-term or long-term based on maturity dates and whether such assets are reasonably expected to be realized in cash or sold or consumed during the normal cycle of business. The Company reviews investments for other-than-temporary impairment whenever the fair value of an investment is less than the amortized cost and evidence indicates that an investment’s carrying amount is not recoverable within a reasonable period of time. Other-than-temporary impairments of investments are recognized in the consolidated statements of operations if the Company experienced a credit loss and have the intent to sell the investment or if it is more likely than not that the Company will be required to sell the investment before recovery of the amortized cost basis. Evidence considered in this assessment includes reasons for the impairment, compliance with the Company’s investment policy, the severity and the duration of the impairment and changes in value subsequent to the end of the period. The following table summarizes the Company’s cash, cash equivalents and marketable debt securities as of September 30, 2020 and December 31, 2019: September 30, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and cash equivalents: Cash and money market funds $ 103,126 $ — $ — 103,126 Corporate debt securities 2,823 — — 2,823 Total cash and cash equivalents 105,949 — — 105,949 Marketable debt securities: Corporate debt securities 44,540 2 ( 28 ) 44,514 Total marketable debt securities 44,540 2 ( 28 ) 44,514 Total cash, cash equivalents and marketable debt securities $ 150,489 $ 2 $ ( 28 ) $ 150,463 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and cash equivalents: Cash and money market funds $ 139,597 $ — $ — 139,597 Total cash and cash equivalents 139,597 — — 139,597 Marketable debt securities: Corporate debt securities — — — — Total marketable debt securities — — — — Total cash, cash equivalents and marketable debt securities $ 139,597 $ — $ — $ 139,597 At September 30, 2020, the Company had invested in 15 available-for-sale marketable debt securities that were in an unrealized loss position for less than one year and no securities in an unrealized loss position for more than 12 months. The aggregate fair value of debt securities in an unrealized loss position at September 30, 2020 was $ 36.7 million. The unrealized losses of less than $ 0.1 million related to these corporate debt securities were included in accumulated other comprehensive loss as of September 30, 2020. Unrealized losses on corporate debt securities have not been recognized into income because the issuers’ bonds are of high credit quality (rated A3/A- or higher), management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to market conditions and/or changes in interest rates. The issuers continue to make timely interest payments on the bonds. The fair value is expected to recover as the bonds approach maturity and the Company does not believe any unrealized losses represent other-than-temporary impairments. Revenue Recognition The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers , the core principle of which is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to receive in exchange for those goods or services. To achieve this core principle, five basic criteria must be met before revenue can be recognized: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to performance obligations in the contract; and (5) recognize revenue when or as the Company satisfies a performance obligation. Disaggregation of Revenue The Company’s revenues have primarily been generated through product sales, collaborative research, development and commercialization license agreements, and other service agreements. The following table summarizes revenue from contracts with customers for the three and nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Product sales $ 339 $ 50 $ 1,227 $ 164 License revenue — — 6,000 — Other revenue 151 176 446 529 Total revenue $ 490 $ 226 $ 7,673 $ 693 Product Sales These contracts typically include a single promise to deliver a fixed amount of product to the customer with payment due within 30 - 60 days of shipment. Revenues are recognized when control of the promised goods is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods. The timing of revenue recognition may differ from the timing of invoicing to customers. The Company has not recognized any assets for costs to obtain or fulfill a contract with a customer as of September 30, 2020 . License Revenue License revenue consists of a milestone payment earned pursuant to a joint venture and license agreement entered into with Meiji Seika Pharma Co., Ltd (“Meiji”) to develop belumosudil (KD025) in Japan (Note 9). As of December 31, 2019, the Company had one performance obligation related to a license agreement with Meiji that had not yet been satisfied and for which the upfront cash payment had not been received. The transaction price of $ 6.0 million was allocated to the single combined performance obligation under the contract and the performance obligation was completed during the first quarter of 2020. There are no performance obligations that have not yet been satisfied and there is no transaction price allocated to future performance obligations as of September 30, 2020. Other Revenue The other revenue generated by the Company is primarily related to a sublease agreement with MeiraGTx (Note 8). The Company recognizes revenue related to sublease agreements as they are performed. Recent Accounting Pronouncements In December 2019, the FASB issued Accounting Standards Update (“ASU”) No. 2019-12, “Income Taxes: Simplifying the Accounting for Income Taxes” , which removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. The ASU is effective for annual or interim periods beginning after December 15, 2020, with early adoption permitted. The Company does not expect the standard to have a significant impact on its consolidated financial statements. In November 2018, the FASB issued ASU No. 2018-18, “Collaborative Arrangements (Topic 808): Clarifying the Interaction Between Topic 808 and Topic 606” , which requires transactions in collaborative arrangements to be accounted for under ASC 606 if the counterparty is a customer for a good or service (or bundle of goods and services) that is a distinct unit of account. The ASU also precludes entities from presenting consideration from transactions with a collaborator that is not a customer together with revenue recognized from contracts with customers. The Company adopted this standard on January 1, 2020, and the standard did not have a significant impact on its consolidated financial statements as the Company does not have any material agreements that are within the scope of this ASU. In August 2018, the FASB issued ASU No. 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force)” , which requires customers in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize. The Company adopted this standard on January 1, 2020, and the standard did not have a significant impact on its consolidated financial statements as the Company’s cloud computing contracts are not material. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles – Goodwill and Other” , which simplifies the subsequent measurement of goodwill by eliminating “Step 2” from the goodwill impairment test. Instead of performing Step 2 to determine the amount of an impairment charge, the fair value of a reporting unit will be compared with its carrying amount and an impairment charge will be recognized for the value by which the carrying amount exceeds the reporting unit’s fair value. For smaller reporting companies, ASU 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2022, with early adoption permitted. The Company adopted this standard on April 1, 2020, and the standard did not have a significant impact on its consolidated financial statements as the Company’s goodwill is not material. In June 2016, the FASB issued ASU No. 2016-13, “Measurement of Credit Losses on Financial Instruments” , to require financial assets carried at amortized cost to be presented at the net amount expected to be collected based on historical experience, current conditions and forecasts. For smaller reporting companies, the ASU is effective for interim and annual periods beginning after December 15, 2022, with early adoption permitted. Adoption of the ASU is on a modified retrospective basis. The Company does not expect this guidance to have a material impact on its financial statements.

Stockholders_ Equity

Stockholders’ Equity	9 Months Ended
	Sep. 30, 2020
Stockholders’ Equity [Abstract]
Stockholders’ Equity	3. Stockholders’ Equity 5% Convertible Preferred Stock The Company had 28,708 shares of 5 % convertible preferred stock outstanding at September 30, 2020, which shares convert into shares of the Company’s common stock at a 20 % discount to the initial public offering price per share of common stock in the Company’s initial public offering (the “IPO”) of $ 12.00 per share, or $ 9.60 per share. The stated liquidation preference amount on the 5 % convertible preferred stock totaled $ 34.8 million at September 30, 2020. Common Stock The Company’s restated certificate of incorporation authorizes the issuance of up to 400,000,000 shares of the Company’s common stock, par value $ 0.001 per share.

Net Loss per Share Attributable

Net Loss per Share Attributable to Common Stockholders	9 Months Ended
	Sep. 30, 2020
Net Loss per Share Attributable to Common Stockholders [Abstract]
Net Loss per Share Attributable to Common Stockholders	4. Net Loss per Share Attributable to Common Stockholders Basic net loss attributable to common stockholders per share is computed by dividing the net loss attributable to common stockholders by the weighted average number of shares of common stock outstanding for the period. Shares issued during the period are weighted for the portion of the period during which they were outstanding. Because the Company has reported a net loss for each period presented, diluted net loss per share of common stock is the same as basic net loss per shares of common stock for the three and nine months ended September 30, 2020 and 2019. The following table summarizes the computation of basic and diluted net loss per share attributable to common stockholders of the Company (in thousands, except share and per share amounts) : Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Numerator – basic and diluted: Net loss available to common stockholders - basic and diluted $ ( 25,149 ) $ ( 62,912 ) $ ( 82,633 ) $ ( 51,183 ) Denominator – basic and diluted: Weighted average shares of common stock outstanding used to compute basic and diluted net loss per share 169,310,056 128,225,469 165,107,295 128,360,618 Net loss per share, basic and diluted $ ( 0.15 ) $ ( 0.49 ) $ ( 0.50 ) $ ( 0.40 ) The amounts in the table below were excluded from the calculation of diluted net loss per share, due to their anti-dilutive effect: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Options to purchase common stock 17,357,285 11,999,752 17,357,285 11,999,752 Warrants to purchase common stock 11,917,052 11,999,852 11,917,052 11,999,852 Convertible preferred stock 3,667,651 3,493,002 3,667,651 3,493,002 Total shares of common stock equivalents 32,941,988 27,492,606 32,941,988 27,492,606

Financial Instruments

Financial Instruments	9 Months Ended
	Sep. 30, 2020
Financial Instruments [Abstract]
Financial Instruments	5. Financial Instruments The Company is required to disclose information on all assets and liabilities reported at fair value that enables an assessment of the inputs used in determining the reported fair values. The fair value hierarchy defines three levels and prioritizes valuation inputs based on the observable nature of those inputs. The fair value hierarchy applies only to the valuation inputs used in determining the reported fair value of the investments and is not a measure of the investment credit quality. Items classified as Level 1 within the valuation hierarchy consist of the Company’s cash equivalents held in money market funds and its ownership of MeiraGTx (Note 8). The Company measures these investments at fair value determined based on Level 1 observable quoted price market inputs. Items classified as Level 2 within the valuation hierarchy consist of the Company’s marketable debt securities and warrant liabilities. The Company estimates the fair values of the marketable debt securities by taking into consideration valuations obtained from third-party pricing sources. These pricing sources utilize industry standard valuation models, including both income and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs include market pricing based on real-time trade data for the same or similar securities, issuer credit spreads, benchmark yields, and other observable inputs. The Level 2 inputs used to value the Company’s warrant liabilities were determined using prices that can be directly observed or corroborated in active markets. Although the fair value of this obligation is calculated using the observable market price of the Company’s common stock, an active market for this financial instrument does not exist. The following tables present information about the Company’s financial assets and liabilities that have been measured at fair value at September 30, 2020 and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands) : Fair Value Measurements Using Description Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets Cash equivalents: Money market funds $ 98,593 $ 98,593 $ — $ — Corporate debt securities 2,823 — 2,823 — Short-term investments: Corporate debt securities 44,514 — 44,514 — Ownership of MeiraGTx 9,238 9,238 — — $ 155,168 $ 107,831 $ 47,337 $ — Financial liabilities Warrant liabilities $ 1,016 $ — $ 1,016 $ — The following table presents information about the Company’s financial assets and liabilities that have been measured at fair value at December 31, 2019 and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands) : Fair Value Measurements Using Description Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets Cash equivalents: Money market funds $ 136,058 $ 136,058 $ — $ — Short-term investments: Ownership of MeiraGTx 41,997 41,997 — — $ 178,055 $ 136,058 $ — $ — Financial liabilities Warrant liabilities $ 1,485 $ — $ 1,485 $ — The Company has not recognized any material gross realized gains or losses on sales of available-for-sale marketable debt securities. Warrant Liabilities In connection with a credit agreement entered into in 2015, as fees to the lenders thereunder, the Company issued warrants to purchase an aggregate of $ 6.3 million of the Company’s Class A units with an expiration date of August 2022, which were exchanged for 617,651 warrants with a strike price of $ 10.20 per share to purchase the same number of shares of the Company’s common stock upon consummation of the Company’s IPO in August 2016 (the “2015 Warrants”). As of September 30, 2020, the exercise price of a portion of the 2015 Warrants to purchase an aggregate of 529,413 shares of the Company’s common stock was $ 3.30 per warrant share and the exercise price of the remaining 2015 Warrants to purchase an aggregate of 88,238 shares of the Company’s common stock was $ 4.50 per warrant share. Since these warrants are exercisable and are redeemable at the option of the holder upon the occurrence of, and during the continuance of, an event of default, the fair value of the 2015 Warrants was recorded as a short-term liability of approximately $ 1.0 million at September 30, 2020 and approximately $ 1.5 million at December 31, 2019. The Company used the Black-Scholes pricing model to value the warrant liability at September 30, 2020 with the following assumptions: risk-free interest rate of 0.1 %, expected term of 1.9 years, expected volatility of 71.3 % and a dividend rate of 0 %. The change in fair value of the 2015 Warrants was approximately $( 0.6 ) million and $ ( 0.5 ) million for the three and nine months ended September 30, 2020 and approximately $ 0.1 million for both the three and nine months ended September 30, 2019, respectively. None of these instruments had been exercised as of September 30, 2020 . The table below represents a roll-forward of warrant liabilities measured using Level 2 inputs from January 1, 2020 to September 30, 2020 (in thousands): Significant Other Observable Inputs (Level 2) Balance at January 1, 2020 $ 1,485 Change in fair value of warrant liabilities ( 469 ) Balance at September 30, 2020 $ 1,016 The following table represents a roll-forward of warrants outstanding from January 1, 2020 to September 30, 2020: Warrants Weighted Average Exercise Price Balance, January 1, 2020 11,921,452 $ 5.97 Exercised ( 4,400 ) — Balance, September 30, 2020 11,917,052 $ 5.97

Inventories

Inventories	9 Months Ended
	Sep. 30, 2020
Inventories [Abstract]
Inventories	6. Inventories Inventories are stated at the lower of cost or net realizable value (on a first-in, first-out basis) using standard costs. Standard costs include an allocation of overhead rates, which include those costs attributable to managing the supply chain and are evaluated regularly. Variances are expensed as incurred. The Company capitalizes inventory costs associated with the Company’s products after regulatory approval, if ever, when, based on management’s judgment, future commercialization is considered probable and the future economic benefit is expected to be realized; otherwise, such costs are expensed as research and development. The Company periodically analyzes its inventory levels to identify inventory that may expire prior to expected sale or has a cost basis in excess of its estimated realizable value, and writes-down such inventories as appropriate. In addition, the Company’s product is subject to strict quality control and monitoring which the Company performs throughout the manufacturing process. If certain batches or units of product no longer meet quality specifications or the Company identifies excess, obsolete or unsalable inventory, its value is written down to net realizable value. Inventories recorded on the Company’s consolidated balance sheets are net of a reserve for expirable inventory of $ 2.6 million and $ 3.0 million at September 30, 2020 and December 31, 2019, respectively. Inventories are comprised of the following (in thousands): September 30, December 31, 2020 2019 Raw materials $ — $ 371 Finished goods, net 28 269 Total inventories, net $ 28 $ 640

Fixed Assets

Fixed Assets	9 Months Ended
	Sep. 30, 2020
Fixed Assets [Abstract]
Fixed Assets	7. Fixed Assets Fixed assets consisted of the following (in thousands): Useful Lives September 30, December 31, (Years) 2020 2019 Leasehold improvements Shorter of remaining lease term or useful life $ 10,397 $ 10,397 Office equipment and furniture 3 - 7 1,363 1,234 Machinery and laboratory equipment 3 - 7 3,836 3,599 Software 3 - 5 4,089 3,971 Construction-in-progress ̶̶̶̶ — 45 19,685 19,246 Less accumulated depreciation and amortization ( 18,065 ) ( 16,802 ) Fixed assets, net $ 1,620 $ 2,444 Depreciation and amortization of fixed assets totaled $ 1.3 million and $ 1.4 million for the nine months ended September 30, 2020 and 2019, respectively, and $ 0.5 million for each of the three months ended September 30, 2020 and 2019.

Ownership of MeiraGTx Ordinary

Ownership of MeiraGTx Ordinary Shares	9 Months Ended
	Sep. 30, 2020
Ownership of MeiraGTx Ordinary Shares [Abstract]
Ownership of MeiraGTx Ordinary Shares	8. Ownership of MeiraGTx Ordinary Shares The Company maintained a 1.8 % and 5.7 % ownership in the ordinary shares of MeiraGTx with a fair value of $ 9.2 million and $ 42.0 million, at September 30, 2020 and December 31, 2019, respectively. The Company entered into transactions in July 2020 and May 2020 pursuant to which it sold approximately 0.3 million and 1.1 million ordinary shares of MeiraGTx, respectively, for gross proceeds of $ 4.2 million and $ 15.5 million, respectively, which was recorded as a realized gain on equity securities during the three and nine months ended September 30, 2020, respectively. The realized gain represents the total gain on the sale of ordinary shares since the MeiraGTx IPO in June 2018. The Company did not realize any gains in the three and nine months ended September 30, 2019. The Company has recorded a net unrealized (loss) gain on its ownership of MeiraGTx ordinary shares of $( 3.3 ) million and $( 38.6 ) million for the three months ended September 30, 2020 and 2019 , respectively, and $( 32.8 ) million and $ 22.3 million for the nine months ended September 30, 2020 and 2019, respectively. The unrealized gains on equity securities consists of two components: (i) the reversal of the gain or loss recognized in previous periods on equity securities sold and (ii) the change in unrealized gain or loss resulting from mark-to-market adjustments on equity securities still held. The Company’s ownership of MeiraGTx ordinary shares is valued using Level 1 inputs, which includes quoted prices in active markets for identical assets in accordance with the fair value hierarchy (Note 5). The table below represents a rollforward of the Company’s ownership of MeiraGTx ordinary shares from January 1, 2020 to September 30, 2020 (in thousands): Significant Observable Inputs (Level 1) Balance as of January 1, 2020 $ 41,997 Unrealized loss on ordinary shares sold during the year ( 8,244 ) Realized gain on sale of ordinary shares ( 19,784 ) Unrealized loss on remaining ownership of ordinary shares ( 4,731 ) Balance as of September 30, 2020 $ 9,238 The Company is party to a sublease agreement to provide office space to MeiraGTx, which is automatically renewed on a monthly basis unless MeiraGTx provides 30 days’ prior written notice. The Company recognized $ 0.1 million and $ 0.4 million to other revenue related to this sublease agreement during each of the three and nine months ended September 30, 2020 and 2019. The Company received cash payments of $ 0.4 million from MeiraGTx for each of the nine months ended September 30, 2020 and 2019 and had no amounts receivable from MeiraGTx at September 30, 2020 or December 31, 2019.

License Agreements

License Agreements	9 Months Ended
	Sep. 30, 2020
License Agreements [Abstract]
License Agreements	9. License Agreements The Company has entered into several license agreements for products currently under development. The Company’s license agreements are disclosed in the audited financial statements included in Item 8 of its Annual Report on Form 10-K for the year ended December 31, 2019 . Since the date of such financial statements, there have been no significant changes to the Company’s license agreements other than described below. Meiji In December 2019, the Company entered into a collaboration agreement with Meiji, a Tokyo-based wholly owned subsidiary of Meiji Holdings Co., Ltd., to form a joint venture to exclusively develop and commercialize belumosudil (KD025) in Japan and certain other Asian countries. The joint venture was entered into through the creation of Romeck Pharma, LLC (“Romeck”), whereby the Company entered into a royalty-bearing exclusive license agreement with Romeck and Meiji in exchange for a 50 % interest in Romeck. Romeck is domiciled in Japan with shared oversight between the Company and Meiji. Under the terms of the license agreement, the Company received an upfront payment of $ 6.0 million in January 2020 and is eligible to receive an additional $ 23.0 million in development, regulatory and commercial milestone payments upon the occurrence of specified events over the term of the agreement. In addition, the Company is eligible to receive double-digit percentage royalty payments on sales of belumosudil (KD025) in Japan. The Company assessed the applicability of ASC 810, Consolidation , to the aforementioned agreements and based on the corporate structure, voting rights and contributions of the various parties in connection with these agreements, determined that Romeck was a VIE, however consolidation was not required as the Company was not the primary beneficiary based upon the voting and managerial structure of the entity. The purpose of the VIE is to develop and commercialize belumosudil in Japan and the operations of Romeck will be financed entirely by Meiji. The Company has not and is not required to provide financial support under the agreements and has no exposure to loss as a result of its involvement in the VIE. The Company’s investment in Romeck was accounted for under the equity method as the Company has the ability to exercise significant influence over Romeck. The equity method investment was recorded at immaterial cost representing the Company’s initial capital contribution for its ownership. This value was determined based upon the corporate structure which does not allocate profits or losses to the Company. An adjustment to this recorded investment will only occur upon a sales transaction or liquidation event, as defined in the agreement. The Company evaluated the arrangement under ASC 808, Collaborative Arrangements , and determined that the license agreement and related joint venture with Romeck is not within the scope of ASC 808, and that the license agreement represents a contract with a customer under ASC 606. The Company has determined that the license agreement contains a single combined performance obligation that consists of the exclusive license to Kadmon’s intellectual property and related initial technology transfer. All other promises included in the license agreement were deemed to be immaterial in the context of the contract including clinical supply, participation in a JSC, and limited technical assistance as requested by Romeck and Meiji. The Company determined that the $ 6.0 million non-refundable, upfront payment under the license agreement constituted the entire consideration to be included in the transaction price at the inception of the arrangement. As such, this amount was allocated to the single performance obligation. The potential development, regulatory and commercial milestone payments and sales-based royalties that the Company is eligible to receive represent variable consideration under the license agreement. The development and regulatory milestone amounts were excluded from the transaction price and were fully constrained based on their probability of achievement and the fact that Company cannot reasonably conclude that a significant reversal of revenue related to these milestones would not occur. Any future sales-based royalties, including commercial milestone payments based on the level of sales, will be included in the transaction price and recognized as revenue when the related sales occur and the milestones are achieved. The Company will reevaluate the transaction price at the end of each reporting period as uncertain events are resolved or other changes in circumstances occur, and, if necessary, adjust its estimate of the transaction price. The single combined performance obligation represents a license of functional intellectual property. The Company had not received the upfront payment or completed the single combined performance obligation as of December 31, 2019. The Company recognized $ 6.0 million in license revenue in the first quarter of 2020 upon completion of the initial technology transfer. No other milestone or royalty revenues have been earned as of September 30, 2020.

Share-based Compensation

Share-based Compensation	9 Months Ended
	Sep. 30, 2020
Share-based Compensation [Abstract]
Share-based Compensation	10. Share-based Compensation 2016 Equity Incentive Plan A total of 16,194,138 shares of the Company’s common stock were authorized and reserved for issuance under the Company’s Amended and Restated 2016 Equity Incentive Plan (the “2016 Equity Plan”) at December 31, 2019. On January 1, 2020, pursuant to the evergreen provision contained in the 2016 Equity Plan, the number of shares reserved for future grants was increased by 5,591,600 shares, which was three and one half percent ( 3.5 %) of the outstanding shares of common stock on December 31, 2019. This reserve will increase each subsequent anniversary through January 1, 2025, by an amount equal to the smaller of (a) 4 % of the number of shares of common stock issued and outstanding on the immediately preceding December 31, or (b) an amount determined by the Company’s board of directors. At September 30, 2020, there were options to purchase an aggregate of 16,067,285 shares of common stock outstanding at a weighted average price of $ 5.28 per share under the 2016 Equity Plan. Total unrecognized compensation expense related to unvested options granted under the Company’s share-based compensation plan was $ 14.0 million and $ 6.5 million at September 30, 2020 and December 31, 2019, respectively. That expense is expected to be recognized over a weighted average period of 2.1 years and 2.2 years as of September 30, 2020 and December 31, 2019, respectively. The Company recorded share-based compensation expense under the 2016 Equity Plan of $ 7.1 million and $ 5.6 million for the nine months ended September 30, 2020 and 2019, respectively, and $ 2.4 million and $ 1.5 million for the three months ended September 30, 2020 and 2019 The following table summarizes information about stock options outstanding, not including performance stock options, from January 1, 2020 to September 30, 2020: Options Outstanding Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Balance, January 1, 2020 11,802,601 $ 5.59 7.52 $ 9,520 Granted 4,966,040 4.35 Exercised ( 304,669 ) 3.13 411 Forfeited ( 396,687 ) 4.70 Balance, September 30, 2020 16,067,285 $ 5.28 7.47 $ 5,322 Options vested and exercisable, September 30, 2020 8,706,640 $ 6.29 6.10 $ 4,105 The aggregate intrinsic value in the table above represents the total pre - tax intrinsic value calculated as the difference between the fair value of the Company’s common stock at September 30, 2020 ($ 3.92 per share) and December 31, 2019 ($ 4.53 per share) and the exercise price, multiplied by the related in - the - money options that would have been received by the option holders had they exercised their options at the end of the fiscal year. This amount changes based on the fair value of the Company’s common stock. There were 304,669 options exercised during the nine months ended September 30, 2020 with an aggregate intrinsic value of $ 0.4 million. There were no options exercised during the nine months ended September 30, 2019. There were 4,966,040 stock options granted during the nine months ended September 30, 2020 with a weighted-average exercise price of $ 4.35 . During the nine months ended September 30, 2019, 1,593,973 stock options were granted with a weighted - average exercise price of $ 2.23 . The fair value of each stock option award, not including performance stock options, was estimated at the date of grant using the Black-Scholes option-pricing model and the assumptions noted in the following table: Nine Months Ended Nine Months Ended September 30, 2020 September 30, 2019 Weighted average fair value of grants $ 2.87 $ 1.48 Expected volatility 75.46 % - 84.95 % 76.19 % - 77.73 % Risk-free interest rate 0.29 % - 1.64 % 1.41 % - 2.61 % Expected life (years) 5.5 - 6.0 5.5 - 6.0 Expected dividend yield 0 % 0 % Performance Options A total of 1,290,000 Performance Options with an exercise price of $ 4.06 were outstanding at September 30, 2020 with no intrinsic value and at December 31, 2019 with an intrinsic value of $ 0.6 million. The weighted average remaining contractual life of outstanding Performance Options at September 30, 2020 was 5.4 years. Compensation expense for Performance Options is recognized on a straight-line basis over the awards’ requisite service period. At September 30, 2020, there was $ 0.1 million of total unrecognized compensation expense related to unvested Performance Options, which is expected to be recognized over a weighted-average period of 0.5 years. At September 30, 2020 and December 31, 2019, 962,502 and 853,335 Performance Options had vested, respectively, and no Performance Options had been exercised. Stock Appreciation Rights A total of 835,000 stock appreciation rights (“SARs”) with an exercise price of $ 3.64 were outstanding at both September 30, 2020 and December 31, 2019 with an intrinsic value of $ 0.2 million and $ 0.7 million, respectively. The weighted average remaining contractual life of outstanding SARs at September 30, 2020 was 5.8 years. Compensation expense for SARs is recognized on a straight-line basis over the awards’ requisite service period. At September 30, 2020, there was $ 0.1 million of total unrecognized compensation cost related to unvested SARs that is expected to be recognized over a weighted-average period of 0.2 years. At September 30, 2020 and December 31, 2019, 616,667 SARs had vested and no SARs had been exercised. 2 014 Long-term Incentive Plan (the “LTIP”) A total of 9,750 units have been granted under the LTIP as of both September 30, 2020 and December 31, 2019. The LTIP is payable upon the fair market value of the Company’s common stock exceeding 333 % of the $ 6.00 grant price (or $ 20.00 ) per share prior to December 7, 2024. The holders of the LTIP awards have no right to demand a particular form of payment, and the Company reserves the right to make payment in the form of cash or common stock. No LTIP awards were exercisable or had been exercised at September 30, 2020. 2016 Employee Stock Purchase Plan A total of 2,551,180 shares of the Company’s common stock were reserved for issuance under the Amended and Restated 2016 Employee Stock Purchase Plan (the “2016 ESPP”) at December 31, 2019. The Company’s board of directors elected not to increase the shares reserved for issuance under the 2016 ESPP on January 1, 2020. The Company issued 98,840 and 32,273 shares under the 2016 ESPP during the nine months ended September 30, 2020 and 2019, respectively. No meaningful compensation expense was recognized for the ESPP during the three and nine months ended September 30, 2020 and 2019.

Accrued Expenses

Accrued Expenses	9 Months Ended
	Sep. 30, 2020
Accrued Expenses [Abstract]
Accrued Expenses	11. Accrued Expenses Short-term accrued expenses at September 30, 2020 and December 31, 2019 include the following (in thousands): September 30, December 31, 2020 2019 Commission payable $ 1,768 $ 2,395 Compensation, benefits and severance 3,681 4,668 Research and development 3,980 4,962 Other 783 2,223 Total accrued expenses $ 10,212 $ 14,248 Commission payable Commission payable represents commissions to third parties for Class E redeemable convertible unit raises during 2014 and 2015. During the three and nine months ended September 30, 2020, the Company recorded $ 0.6 million as a non-cash gain on extinguishment of obligation due to the expiration of the Company’s obligation related to this portion of the commission. Compensation, benefits and severance Compensation, benefits and severance represent earned and unpaid employee wages and bonuses, as well as contractual severance to be paid to former employees. Research and development The Company has contracts with third parties for the development of the Company’s product candidates. The timing of the expenses varies depending upon the timing of initiation of clinical trials and enrollment of patients in clinical trials. Other During the three and nine months ended September 30, 2020, the Company recorded $ 1.0 million as a non-cash gain on extinguishment of obligation due to the expiration of the Company’s obligation relating to a terminated license agreement.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2020
Commitments and Contingencies [Abstract]
Commitments and Contingencies	12. Commitments and Contingencies The Company’s commitments are disclosed in the audited financial statements included in Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 . Since the date of such financial statements, there have been no material changes to the Company’s commitments or contingencies, including leases. Contingent License Agreement Milestones The Company has entered into several license agreements for products currently under development (Note 9). The Company may be obligated in future periods to make additional payments, which would become due and payable only upon the achievement of certain research and development, regulatory and approval milestones. The specific timing of such milestones cannot be predicted and depends upon future discretionary clinical developments as well as regulatory agency actions which cannot be predicted with certainty (including action which may never occur). These additional contingent milestone payments aggregate to $ 229.1 million at September 30, 2020. Any payments made prior to FDA approval will be expensed as research and development. Payments made after FDA approval will be capitalized. Under the terms of certain licensing agreements, the Company may be obligated to pay commercial milestones contingent upon the realization of sales revenues and sublicense revenues. Due to the long-range nature of such commercial milestones, they are neither probable at this time nor predictable, and consequently are not included in the additional contingent milestone payment amount.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2020
Related Party Transactions [Abstract]
Related Party Transactions	13. Related Party Transactions The Company’s related party transactions are disclosed in the audited financial statements included in Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 . Since the date of such financial statements, there have been no changes to the Company’s related party transactions other than those related to MeiraGTx (Note 8).

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2020
Income Taxes [Abstract]
Income Taxes	14. Income Taxes The Company files a consolidated tax return for Kadmon Holdings, Inc. and its domestic subsidiaries and the required information returns for its international subsidiaries, all of which are wholly owned. Where permitted, the Company files combined state returns, but in some instances separate company returns for certain subsidiaries on a stand-alone basis are required. There was no change in deferred tax liability and no income tax expense recorded for the three and nine months ended September 30, 2020 and 2019. Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company’s deferred tax assets relate primarily to its net operating loss (“NOL”) carryforwards and other balance sheet basis differences. In accordance with ASC 740, Income Taxes, the Company recorded a valuation allowance to fully offset the gross deferred tax asset, because it is more likely than not that the Company will not realize future benefits associated with these deferred tax assets at September 30, 2020 and December 31, 2019. At December 31, 2019, the Company had unused federal and state NOL carryforwards of $ 371.1 million and $ 307.2 million, respectively, that may be applied against future taxable income. The Company has fully reserved the deferred tax asset related to these NOL carryforwards as reflected in its consolidated financial statements. These carryforwards expire at various dates through December 31, 2037, with the exception of approximately $ 79.9 million of federal NOL carryforwards that will not expire. In the United States, President Trump signed into law the CARES Act on March 27, 2020, which provides relief to taxpayers affected by COVID-19. The CARES Act includes several business provisions that may impact a company’s accounting for income taxes. In addition, the impact of COVID-19 itself on businesses draws attention to certain provisions in ASC 740. The Company analyzed the business provisions in the CARES Act and determined that the Act does not have a significant impact on its income tax provision.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policy)	9 Months Ended
	Sep. 30, 2020
Summary of Significant Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The Company operates in one segment considering the nature of the Company’s products and services, class of customers, methods used to distribute its products and the regulatory environment in which the Company operates.
Principles of Consolidation	The accompanying consolidated financial statements, which include the accounts of Kadmon Holdings, Inc. and its domestic and international subsidiaries, all of which are wholly owned by Kadmon Holdings, Inc., have been prepared in accordance with GAAP for interim financial information and pursuant to the rules and regulations of the SEC. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements.
Interim Financial Statements	In the Company’s opinion, the financial statements include all adjustments (consisting of normal recurring adjustments) and disclosures considered necessary in order to make the financial statements not misleading. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the final results that may be expected for the year ending December 31, 2020. These unaudited financial statements should be read in conjunction with the audited financial statements included in Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.
Use of Estimates	Use of Estimates The preparation of 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. Actual results could differ from those estimates. The most significant estimates are related to share-based compensation (Note 10) and the accrual of research and development and clinical trial expenses (Note 11).
Critical Accounting Policies	Critical Accounting Policies The Company’s significant accounting policies are disclosed in the audited financial statements included in Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Since the date of such financial statements, there have been no changes to the Company’s significant accounting policies, other than those described below.
Debt	Debt On April 15, 2020, the Company received the proceeds from a loan in the amount of approximately $ 3.1 million (the “Loan”) from PNC Bank, National Association, as lender, pursuant to the Paycheck Protection Program (“PPP”) of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The Loan matures on April 15, 2022 and bears interest at a rate of 1 % per annum. On August 20, 2020, the loan was amended so that, commencing August 15, 2021, the Company is required to pay the lender equal monthly payments of principal and interest as required to fully amortize by April 15, 2022 the principal amount outstanding on the Loan as of October 15, 2020. The Loan is evidenced by a promissory note dated April 15, 2020 (the “Note”), which contains customary events of default relating to, among other things, payment defaults and breaches of representations and warranties. The Loan may be prepaid by the Company at any time prior to maturity with no prepayment penalties. The application for these funds required the Company to certify in good faith that the then current economic uncertainty made the loan request necessary to support the ongoing operations of the Company. This certification further required the Company to take into account its current business activity and its ability to access other sources of liquidity sufficient to support ongoing operations in a manner that is not significantly detrimental to the business. The Company made this good faith assertion based upon various factors, including the degree of uncertainty introduced to the capital markets as a result of the COVID-19 pandemic and the Company’s dependency on its ability to raise capital to fund ongoing operations. All or a portion of the Loan may be forgiven by the U.S. Small Business Administration (“SBA”) upon application by the Company upon documentation of expenditures in accordance with the SBA requirements. Under the CARES Act, loan forgiveness is available for the sum of eligible and documented payroll costs, covered rent payments, covered mortgage interest and covered utilities during the eight-week period beginning on the date of loan approval. If, despite the Company’s good-faith belief that given the circumstances the Company satisfied all eligibility requirements for the Loan, the Company is later determined to have violated any applicable laws or regulations or it is otherwise determined that the Company was ineligible to receive the Loan, the Company may be required to repay the Loan in its entirety and/or be subject to additional penalties. In the event the Loan, or any portion thereof, is forgiven pursuant to the PPP, the amount forgiven is applied to outstanding principal. The Company used all proceeds from the Loan to retain employees, maintain payroll and make lease, rent and utility payments. Under the terms of the loan, the Company may be eligible for full or partial loan forgiveness. The Company has begun preparations to apply for forgiveness, however, no assurance is provided that the Company will obtain forgiveness for any portion of the Loan. The Company has accounted for the Loan as a debt instrument in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 470, Debt . At September 30, 2020, $ 0.7 million of principal payments due in the third quarter of 2021 have been recorded as short-term debt and the remaining balance of $ 2.4 million is recorded as long-term debt. The Company does not expect to incur any material interest expense under the Loan.
Cash, Cash Equivalents and Marketable Debt Securities	Cash, Cash Equivalents and Marketable Debt Securities The Company considers all highly liquid securities with an original or remaining maturity of three months or less at the time of acquisition to be cash equivalents. Marketable debt securities are considered to be available-for-sale and are carried at fair market value. The estimated fair value of the available-for-sale marketable debt securities is determined based on quoted market prices or rates for similar instruments. Unrealized gains and losses, if any, are reported in accumulated other comprehensive income (loss). The cost of marketable debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization and accretion is included in other (expense) income. Realized gains and losses, and declines in value judged to be other-than-temporary, if any, are also included in other (expense) income. Interest and dividends on available-for-sale securities are included in other income. The Company determines the appropriate classification of its investments in debt securities at the time of purchase. All of the Company’s debt securities are classified as available-for-sale and are reported as short-term or long-term based on maturity dates and whether such assets are reasonably expected to be realized in cash or sold or consumed during the normal cycle of business. The Company reviews investments for other-than-temporary impairment whenever the fair value of an investment is less than the amortized cost and evidence indicates that an investment’s carrying amount is not recoverable within a reasonable period of time. Other-than-temporary impairments of investments are recognized in the consolidated statements of operations if the Company experienced a credit loss and have the intent to sell the investment or if it is more likely than not that the Company will be required to sell the investment before recovery of the amortized cost basis. Evidence considered in this assessment includes reasons for the impairment, compliance with the Company’s investment policy, the severity and the duration of the impairment and changes in value subsequent to the end of the period. The following table summarizes the Company’s cash, cash equivalents and marketable debt securities as of September 30, 2020 and December 31, 2019: September 30, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and cash equivalents: Cash and money market funds $ 103,126 $ — $ — 103,126 Corporate debt securities 2,823 — — 2,823 Total cash and cash equivalents 105,949 — — 105,949 Marketable debt securities: Corporate debt securities 44,540 2 ( 28 ) 44,514 Total marketable debt securities 44,540 2 ( 28 ) 44,514 Total cash, cash equivalents and marketable debt securities $ 150,489 $ 2 $ ( 28 ) $ 150,463 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and cash equivalents: Cash and money market funds $ 139,597 $ — $ — 139,597 Total cash and cash equivalents 139,597 — — 139,597 Marketable debt securities: Corporate debt securities — — — — Total marketable debt securities — — — — Total cash, cash equivalents and marketable debt securities $ 139,597 $ — $ — $ 139,597 At September 30, 2020, the Company had invested in 15 available-for-sale marketable debt securities that were in an unrealized loss position for less than one year and no securities in an unrealized loss position for more than 12 months. The aggregate fair value of debt securities in an unrealized loss position at September 30, 2020 was $ 36.7 million. The unrealized losses of less than $ 0.1 million related to these corporate debt securities were included in accumulated other comprehensive loss as of September 30, 2020. Unrealized losses on corporate debt securities have not been recognized into income because the issuers’ bonds are of high credit quality (rated A3/A- or higher), management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to market conditions and/or changes in interest rates. The issuers continue to make timely interest payments on the bonds. The fair value is expected to recover as the bonds approach maturity and the Company does not believe any unrealized losses represent other-than-temporary impairments.
Revenue Recognition	Revenue Recognition The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers , the core principle of which is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to receive in exchange for those goods or services. To achieve this core principle, five basic criteria must be met before revenue can be recognized: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to performance obligations in the contract; and (5) recognize revenue when or as the Company satisfies a performance obligation. Disaggregation of Revenue The Company’s revenues have primarily been generated through product sales, collaborative research, development and commercialization license agreements, and other service agreements. The following table summarizes revenue from contracts with customers for the three and nine months ended September 30, 2020 and 2019 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Product sales $ 339 $ 50 $ 1,227 $ 164 License revenue — — 6,000 — Other revenue 151 176 446 529 Total revenue $ 490 $ 226 $ 7,673 $ 693 Product Sales These contracts typically include a single promise to deliver a fixed amount of product to the customer with payment due within 30 - 60 days of shipment. Revenues are recognized when control of the promised goods is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods. The timing of revenue recognition may differ from the timing of invoicing to customers. The Company has not recognized any assets for costs to obtain or fulfill a contract with a customer as of September 30, 2020 . License Revenue License revenue consists of a milestone payment earned pursuant to a joint venture and license agreement entered into with Meiji Seika Pharma Co., Ltd (“Meiji”) to develop belumosudil (KD025) in Japan (Note 9). As of December 31, 2019, the Company had one performance obligation related to a license agreement with Meiji that had not yet been satisfied and for which the upfront cash payment had not been received. The transaction price of $ 6.0 million was allocated to the single combined performance obligation under the contract and the performance obligation was completed during the first quarter of 2020. There are no performance obligations that have not yet been satisfied and there is no transaction price allocated to future performance obligations as of September 30, 2020. Other Revenue The other revenue generated by the Company is primarily related to a sublease agreement with MeiraGTx (Note 8). The Company recognizes revenue related to sublease agreements as they are performed.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In December 2019, the FASB issued Accounting Standards Update (“ASU”) No. 2019-12, “Income Taxes: Simplifying the Accounting for Income Taxes” , which removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. The ASU is effective for annual or interim periods beginning after December 15, 2020, with early adoption permitted. The Company does not expect the standard to have a significant impact on its consolidated financial statements. In November 2018, the FASB issued ASU No. 2018-18, “Collaborative Arrangements (Topic 808): Clarifying the Interaction Between Topic 808 and Topic 606” , which requires transactions in collaborative arrangements to be accounted for under ASC 606 if the counterparty is a customer for a good or service (or bundle of goods and services) that is a distinct unit of account. The ASU also precludes entities from presenting consideration from transactions with a collaborator that is not a customer together with revenue recognized from contracts with customers. The Company adopted this standard on January 1, 2020, and the standard did not have a significant impact on its consolidated financial statements as the Company does not have any material agreements that are within the scope of this ASU. In August 2018, the FASB issued ASU No. 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force)” , which requires customers in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize. The Company adopted this standard on January 1, 2020, and the standard did not have a significant impact on its consolidated financial statements as the Company’s cloud computing contracts are not material. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles – Goodwill and Other” , which simplifies the subsequent measurement of goodwill by eliminating “Step 2” from the goodwill impairment test. Instead of performing Step 2 to determine the amount of an impairment charge, the fair value of a reporting unit will be compared with its carrying amount and an impairment charge will be recognized for the value by which the carrying amount exceeds the reporting unit’s fair value. For smaller reporting companies, ASU 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2022, with early adoption permitted. The Company adopted this standard on April 1, 2020, and the standard did not have a significant impact on its consolidated financial statements as the Company’s goodwill is not material. In June 2016, the FASB issued ASU No. 2016-13, “Measurement of Credit Losses on Financial Instruments” , to require financial assets carried at amortized cost to be presented at the net amount expected to be collected based on historical experience, current conditions and forecasts. For smaller reporting companies, the ASU is effective for interim and annual periods beginning after December 15, 2022, with early adoption permitted. Adoption of the ASU is on a modified retrospective basis. The Company does not expect this guidance to have a material impact on its financial statements.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2020
Summary of Significant Accounting Policies [Abstract]
Summary of Cash, Cash Equivalents and Marketable Debt Securities	September 30, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and cash equivalents: Cash and money market funds $ 103,126 $ — $ — 103,126 Corporate debt securities 2,823 — — 2,823 Total cash and cash equivalents 105,949 — — 105,949 Marketable debt securities: Corporate debt securities 44,540 2 ( 28 ) 44,514 Total marketable debt securities 44,540 2 ( 28 ) 44,514 Total cash, cash equivalents and marketable debt securities $ 150,489 $ 2 $ ( 28 ) $ 150,463 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and cash equivalents: Cash and money market funds $ 139,597 $ — $ — 139,597 Total cash and cash equivalents 139,597 — — 139,597 Marketable debt securities: Corporate debt securities — — — — Total marketable debt securities — — — — Total cash, cash equivalents and marketable debt securities $ 139,597 $ — $ — $ 139,597
Disaggregation of Revenue	Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Product sales $ 339 $ 50 $ 1,227 $ 164 License revenue — — 6,000 — Other revenue 151 176 446 529 Total revenue $ 490 $ 226 $ 7,673 $ 693

Net Loss per Share Attributab_2

Net Loss per Share Attributable to Common Stockholders (Tables)	9 Months Ended
	Sep. 30, 2020
Net Loss per Share Attributable to Common Stockholders [Abstract]
Computation of Basic and Diluted Net Income (Loss) per Share Attributable to Common Stockholders	Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Numerator – basic and diluted: Net loss available to common stockholders - basic and diluted $ ( 25,149 ) $ ( 62,912 ) $ ( 82,633 ) $ ( 51,183 ) Denominator – basic and diluted: Weighted average shares of common stock outstanding used to compute basic and diluted net loss per share 169,310,056 128,225,469 165,107,295 128,360,618 Net loss per share, basic and diluted $ ( 0.15 ) $ ( 0.49 ) $ ( 0.50 ) $ ( 0.40 )
Anti-dilutive Amounts Excluded From Calculation of Diluted Net Income (Loss) per Share	Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 Options to purchase common stock 17,357,285 11,999,752 17,357,285 11,999,752 Warrants to purchase common stock 11,917,052 11,999,852 11,917,052 11,999,852 Convertible preferred stock 3,667,651 3,493,002 3,667,651 3,493,002 Total shares of common stock equivalents 32,941,988 27,492,606 32,941,988 27,492,606

Financial Instruments (Tables)

Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2020
Financial Instruments [Abstract]
Fair Values of Financial Instruments	Fair Value Measurements Using Description Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets Cash equivalents: Money market funds $ 98,593 $ 98,593 $ — $ — Corporate debt securities 2,823 — 2,823 — Short-term investments: Corporate debt securities 44,514 — 44,514 — Ownership of MeiraGTx 9,238 9,238 — — $ 155,168 $ 107,831 $ 47,337 $ — Financial liabilities Warrant liabilities $ 1,016 $ — $ 1,016 $ — The following table presents information about the Company’s financial assets and liabilities that have been measured at fair value at December 31, 2019 and indicates the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands) : Fair Value Measurements Using Description Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets Cash equivalents: Money market funds $ 136,058 $ 136,058 $ — $ — Short-term investments: Ownership of MeiraGTx 41,997 41,997 — — $ 178,055 $ 136,058 $ — $ — Financial liabilities Warrant liabilities $ 1,485 $ — $ 1,485 $ —
Rollforward of Level 2 Investments	Significant Other Observable Inputs (Level 2) Balance at January 1, 2020 $ 1,485 Change in fair value of warrant liabilities ( 469 ) Balance at September 30, 2020 $ 1,016
Warrants Outstanding	Warrants Weighted Average Exercise Price Balance, January 1, 2020 11,921,452 $ 5.97 Exercised ( 4,400 ) — Balance, September 30, 2020 11,917,052 $ 5.97

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2020
Inventories [Abstract]
Schedule of Inventories	September 30, December 31, 2020 2019 Raw materials $ — $ 371 Finished goods, net 28 269 Total inventories, net $ 28 $ 640

Fixed Assets (Tables)

Fixed Assets (Tables)	9 Months Ended
	Sep. 30, 2020
Fixed Assets [Abstract]
Fixed Assets	Useful Lives September 30, December 31, (Years) 2020 2019 Leasehold improvements Shorter of remaining lease term or useful life $ 10,397 $ 10,397 Office equipment and furniture 3 - 7 1,363 1,234 Machinery and laboratory equipment 3 - 7 3,836 3,599 Software 3 - 5 4,089 3,971 Construction-in-progress ̶̶̶̶ — 45 19,685 19,246 Less accumulated depreciation and amortization ( 18,065 ) ( 16,802 ) Fixed assets, net $ 1,620 $ 2,444

Ownership of MeiraGTx Ordinar_2

Ownership of MeiraGTx Ordinary Shares (Tables)	9 Months Ended
	Sep. 30, 2020
Ownership of MeiraGTx Ordinary Shares [Abstract]
Schedule Of MeiraGTx Investment	Significant Observable Inputs (Level 1) Balance as of January 1, 2020 $ 41,997 Unrealized loss on ordinary shares sold during the year ( 8,244 ) Realized gain on sale of ordinary shares ( 19,784 ) Unrealized loss on remaining ownership of ordinary shares ( 4,731 ) Balance as of September 30, 2020 $ 9,238

Share-based Compensation (Table

Share-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2020
Share-based Compensation [Abstract]
Stock Options Outstanding	Options Outstanding Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Balance, January 1, 2020 11,802,601 $ 5.59 7.52 $ 9,520 Granted 4,966,040 4.35 Exercised ( 304,669 ) 3.13 411 Forfeited ( 396,687 ) 4.70 Balance, September 30, 2020 16,067,285 $ 5.28 7.47 $ 5,322 Options vested and exercisable, September 30, 2020 8,706,640 $ 6.29 6.10 $ 4,105
Weighted-average Fair Value of Stock Option Awards Granted	Nine Months Ended Nine Months Ended September 30, 2020 September 30, 2019 Weighted average fair value of grants $ 2.87 $ 1.48 Expected volatility 75.46 % - 84.95 % 76.19 % - 77.73 % Risk-free interest rate 0.29 % - 1.64 % 1.41 % - 2.61 % Expected life (years) 5.5 - 6.0 5.5 - 6.0 Expected dividend yield 0 % 0 %

Accrued Expenses (Tables)

Accrued Expenses (Tables)	9 Months Ended
	Sep. 30, 2020
Accrued Expenses [Abstract]
Short-term Accrued Expenses	September 30, December 31, 2020 2019 Commission payable $ 1,768 $ 2,395 Compensation, benefits and severance 3,681 4,668 Research and development 3,980 4,962 Other 783 2,223 Total accrued expenses $ 10,212 $ 14,248

Organization (Narrative) (Detai

Organization (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		9 Months Ended
	Jul. 31, 2020	May 31, 2020	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Organization [Line Items]
Working capital			$ 134,200
Cash, cash equivalents, and marketable securities			150,500
Accumulated deficit			$ (415,702)		$ (333,069)
Common Stock [Member]
Organization [Line Items]
Stock issued, shares			11,060,786	16,316,805
MeiraGTx Ltd. [Member]
Organization [Line Items]
Stock issued, shares	300,000	1,100,000
Proceeds from private placement, gross	$ 4,200	$ 15,500
2017 ATM Program [Member]
Organization [Line Items]
Stock issued, shares			11,060,786
Price per share of common stock			$ 4.52
Proceeds from private placement, gross			$ 48,500
Private placement, commisions payable			1,500
2017 ATM Program [Member] | Common Stock [Member]
Organization [Line Items]
Registration statement, authorized amount			50,000
2019 Registration Statement [Member]
Organization [Line Items]
Registration statement, authorized amount			200,000
Aggregate amount sold under registration statement			151,500
2020 Registration Statement [Member]
Organization [Line Items]
Registration statement, authorized amount			300,000
ATM 2020 Program [Member] | Common Stock [Member]
Organization [Line Items]
Registration statement, authorized amount			$ 50,000

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020USD ($)securitysegmentcontract	Dec. 31, 2019USD ($)contract
Summary Of Significant Accounting Policies [Line Items]
Number of operating segments | segment	1
Proceeds from issuance of term debt	$ 3,057
Term debt - current	679
Term debt - noncurrent	$ 2,378
Number of securities in unrealized loss position, less than a year | security	15
Number of securities in unrealized loss position, more than 12 months | security	0
Fair value of debt securities in unrealized loss positions	$ 36,700
Gross unrealized losses	$ 28
License Revenue [Member]
Summary Of Significant Accounting Policies [Line Items]
Number of performance obligations | contract	0	1
License revenue	$ 6,000
Minimum [Member] | Net Sales [Member]
Summary Of Significant Accounting Policies [Line Items]
Payment term	30 days
Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Gross unrealized losses	$ 100
Maximum [Member] | Net Sales [Member]
Summary Of Significant Accounting Policies [Line Items]
Payment term	60 days
CARES Act Loan [Member]
Summary Of Significant Accounting Policies [Line Items]
Proceeds from issuance of term debt	$ 3,100
Interest rate	1.00%
Term debt - current	$ 700
Term debt - noncurrent	$ 2,400

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Summary of Cash, Cash Equivalents and Marketable Debt Securities) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 150,489
Gross Unrealized Gains	2
Gross Unrealized Losses	(28)
Fair Value	150,463	139,597
Corporate Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Fair Value	44,514
Cash and Cash Equivalents [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	105,949	139,597
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value	105,949	139,597
Cash and Cash Equivalents [Member] | Cash and Money Market Funds [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	103,126	139,597
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value	103,126	139,597
Cash and Cash Equivalents [Member] | Corporate Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	2,823
Fair Value	2,823
Marketable Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	44,540	139,597
Gross Unrealized Gains	2
Gross Unrealized Losses	(28)
Fair Value	44,514
Marketable Debt Securities [Member] | Corporate Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	44,540
Gross Unrealized Gains	2
Gross Unrealized Losses	(28)
Fair Value	$ 44,514

Summary of Significant Accoun_6

Summary of Significant Accounting Policies (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Disaggregation of Revenue [Line Items]
Revenues	$ 490	$ 226	$ 7,673	$ 693
Net Sales [Member]
Disaggregation of Revenue [Line Items]
Revenues	339	50	1,227	164
License Revenue [Member]
Disaggregation of Revenue [Line Items]
Revenues			6,000
Other Revenue [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 151	$ 176	$ 446	$ 529

Stockholders_ Equity (Narrative

Stockholders’ Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019	Apr. 01, 2016
Equity [Line Items]
Unit price	$ 3.92	$ 4.53	$ 12
Preferred stock conversion price	$ 9.60
Common stock, shares authorized	400,000,000	400,000,000
Common stock, par value	$ 0.001	$ 0.001
Convertible Preferred Stock [Member]
Equity [Line Items]
Preferred stock outstanding	28,708	28,708
Convertible preferred stock rate	5.00%
Liquidation preference	$ 34.8
Beneficial conversion feature, discount percentage	20.00%

Net Loss per Share Attributab_3

Net Loss per Share Attributable to Common Stockholders (Computation of Basic and Diluted Net Income (Loss) per Share Attributable to Common Stockholders) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Net Loss per Share Attributable to Common Stockholders [Abstract]
Net loss available to common stockholders - basic and diluted	$ (25,149)	$ (62,912)	$ (82,633)	$ (51,183)
Weighted average shares of common stock outstanding used to compute basic and diluted net loss per share	169,310,056	128,225,469	165,107,295	128,360,618
Net loss per share, basic and diluted	$ (0.15)	$ (0.49)	$ (0.50)	$ (0.40)

Net Loss per Share Attributab_4

Net Loss per Share Attributable to Common Stockholders (Anti-dilutive Amounts Excluded From Calculation of Diluted Net Income (Loss) per Share) (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares of common stock equivalents	32,941,988	27,492,606	32,941,988	27,492,606
Options To Purchase Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares of common stock equivalents	17,357,285	11,999,752	17,357,285	11,999,752
Warrants To Purchase Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares of common stock equivalents	11,917,052	11,999,852	11,917,052	11,999,852
Convertible Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares of common stock equivalents	3,667,651	3,493,002	3,667,651	3,493,002

Financial Instruments (Narrativ

Financial Instruments (Narrative) (Details) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Aug. 31, 2016$ / sharesshares	Sep. 30, 2020USD ($)item$ / sharesshares	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)item$ / sharesshares	Sep. 30, 2019USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2019USD ($)shares
Financial Instruments [Line Items]
Warrants outstanding, shares		11,917,052		11,917,052			11,921,452
Warrants To Purchase Common Stock [Member]
Financial Instruments [Line Items]
Fair value of liability | $		$ 1,016		$ 1,016			$ 1,485
2015 Credit Agreement, Warrants [Member]
Financial Instruments [Line Items]
Warrants to purchase | $						$ 6,300
Common units converted to warrants	617,651
Strike price | $ / shares	$ 10.20	$ 4.50		$ 4.50
Warrants outstanding, shares		88,238		88,238
Expected term		1 year 10 months 24 days		1 year 10 months 24 days
Change in fair value of warrant | $		$ (600)	$ 100	$ (500)	$ 100
Warrants exercised		0		0
2015 Credit Agreement, Warrants [Member] | Expected Dividend YIeld [Member]
Financial Instruments [Line Items]
Warrants and Rights Outstanding, Measurement Input | item		0		0
2015 Credit Agreement, Warrants [Member] | Expected Volatility [Member]
Financial Instruments [Line Items]
Warrants and Rights Outstanding, Measurement Input | item		0.713		0.713
2015 Credit Agreement, Warrants [Member] | Risk Free Interest Rate [Member]
Financial Instruments [Line Items]
Warrants and Rights Outstanding, Measurement Input | item		0.001		0.001
2015 Credit Agreement, Fifth Amendment [Member]
Financial Instruments [Line Items]
Strike price | $ / shares		$ 3.30		$ 3.30
Warrants outstanding, shares		529,413		529,413

Financial Instruments (Fair Val

Financial Instruments (Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Financial Instruments [Line Items]
Debt securities	$ 150,463	$ 139,597
Equity securities fair value	9,238	41,997
Financial assets	155,168	178,055
Quoted Prices in Active Markets for Identical Items (Level 1) [Member]
Financial Instruments [Line Items]
Equity securities fair value	9,238	41,997
Financial assets	107,831	136,058
Significant Other Observable Inputs (Level 2) [Member]
Financial Instruments [Line Items]
Financial assets	47,337
Money Market Funds [Member]
Financial Instruments [Line Items]
Cash equivalents	98,593	136,058
Money Market Funds [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member]
Financial Instruments [Line Items]
Cash equivalents	98,593	136,058
Corporate Debt Securities [Member]
Financial Instruments [Line Items]
Cash equivalents	2,823
Debt securities	44,514
Corporate Debt Securities [Member] | Significant Other Observable Inputs (Level 2) [Member]
Financial Instruments [Line Items]
Cash equivalents	2,823
Debt securities	44,514
Warrants To Purchase Common Stock [Member]
Financial Instruments [Line Items]
Financial liabilities	1,016	1,485
Warrants To Purchase Common Stock [Member] | Significant Other Observable Inputs (Level 2) [Member]
Financial Instruments [Line Items]
Financial liabilities	$ 1,016	$ 1,485

Financial Instruments (Rollforw

Financial Instruments (Rollforward of Level 2 Investments) (Details) - Significant Other Observable Inputs (Level 2) [Member] $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)
Financial Instruments [Line Items]
Balance	$ 1,485
Change in fair value of warrant liabilities	(469)
Balance	$ 1,016

Financial Instruments (Warrants

Financial Instruments (Warrants Outstanding) (Details)	9 Months Ended
	Sep. 30, 2020$ / sharesshares
Financial Instruments [Abstract]
Warrants, Balance	11,921,452
Warrants, Exercised	(4,400)
Warrants, Balance	11,917,052
Weighted Average Exercise Price, Balance | $ / shares	$ 5.97
Weighted Average Exercise Price, Balance | $ / shares	$ 5.97

Inventories (Narrative) (Detail

Inventories (Narrative) (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Inventories [Abstract]
Reserve for expirable inventory	$ 2.6	$ 3

Inventories (Schedule of Invent

Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Inventories [Abstract]
Raw materials		$ 371
Finished goods, net	$ 28	269
Total inventories, net	$ 28	$ 640

Fixed Assets (Narrative) (Detai

Fixed Assets (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Fixed Assets [Abstract]
Depreciation and amortization of fixed assets	$ 500	$ 500	$ 1,263	$ 1,356

Fixed Assets (Fixed Assets) (De

Fixed Assets (Fixed Assets) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Fixed assets, gross	$ 19,685	$ 19,246
Less accumulated depreciation and amortization	(18,065)	(16,802)
Fixed assets, net	1,620	2,444
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Fixed assets, gross	10,397	10,397
Office Equipment and Furniture [Member]
Property, Plant and Equipment [Line Items]
Fixed assets, gross	1,363	1,234
Machinery and Laboratory Equipment [Member]
Property, Plant and Equipment [Line Items]
Fixed assets, gross	3,836	3,599
Software [Member]
Property, Plant and Equipment [Line Items]
Fixed assets, gross	$ 4,089	3,971
Construction-in-progress [Member]
Property, Plant and Equipment [Line Items]
Fixed assets, gross		$ 45
Minimum [Member] | Office Equipment and Furniture [Member]
Property, Plant and Equipment [Line Items]
Useful Lives (Years)	3 years
Minimum [Member] | Machinery and Laboratory Equipment [Member]
Property, Plant and Equipment [Line Items]
Useful Lives (Years)	3 years
Minimum [Member] | Software [Member]
Property, Plant and Equipment [Line Items]
Useful Lives (Years)	3 years
Maximum [Member] | Office Equipment and Furniture [Member]
Property, Plant and Equipment [Line Items]
Useful Lives (Years)	7 years
Maximum [Member] | Machinery and Laboratory Equipment [Member]
Property, Plant and Equipment [Line Items]
Useful Lives (Years)	7 years
Maximum [Member] | Software [Member]
Property, Plant and Equipment [Line Items]
Useful Lives (Years)	5 years

Ownership of MeiraGTx Ordinar_3

Ownership of MeiraGTx Ordinary Shares (Narrative) (Details) - USD ($) shares in Millions	1 Months Ended		3 Months Ended		9 Months Ended		12 Months Ended
	Jul. 31, 2020	May 31, 2020	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Investment Holdings [Line Items]
Investment, equity securities			$ 9,238,000		$ 9,238,000		$ 41,997,000
Unrealized (loss) gain on equity securities			(3,254,000)	$ (38,634,000)	(32,759,000)	$ 22,304,000
Accounts receivable, net			373,000		$ 373,000		$ 954,000
MeiraGTx Ltd. [Member]
Investment Holdings [Line Items]
Stock issued, shares	0.3	1.1
Proceeds from private placement, gross	$ 4,200,000	$ 15,500,000
Ownership percentage					1.80%		5.70%
Investment, equity securities			9,238,000		$ 9,238,000		$ 41,997,000
Unrealized (loss) gain on equity securities			(3,300,000)	(38,600,000)	(32,800,000)	22,300,000
Service revenue to license			100,000	$ 400,000	100,000	400,000
Cash payments for service revenue					400,000	$ 400,000
Accounts receivable, net			$ 0		$ 0		$ 0
Period of notice to cancel lease					30 days

Ownership of MeiraGTx Ordinar_4

Ownership of MeiraGTx Ordinary Shares (Schedule Of MeiraGTx Investment) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)
Investment Holdings [Line Items]
Balance	$ 41,997
Balance	9,238
MeiraGTx Ltd. [Member]
Investment Holdings [Line Items]
Balance	41,997
Unrealized gain (loss) on ordinary shares sold during the year	(8,244)
Realized gain on sale of ordinary shares	(19,784)
Unrealized loss on remaining ownership of ordinary shares	(4,731)
Balance	$ 9,238

License Agreements (Narrative)

License Agreements (Narrative) (Details) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2020USD ($)contract	Dec. 31, 2019contract
License Revenue [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
License revenue	$ 6
Number of performance obligations | contract	0	1
License Agreement, Meiji Seika Pharma Co. Ltd [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Ownership percentage	50.00%
Milestone payment	$ 6
Potential proceeds from partnership agreement	$ 23

Share-based Compensation (Narra

Share-based Compensation (Narrative) (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Apr. 01, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Price	$ 3.92		$ 3.92		$ 4.53	$ 12
Share based compensation, options granted			4,966,040
Weighted average exercise price of options granted during the period (per share)			$ 4.35
Share-based compensation, options outstanding, weighted average remaining contractual term (years)			7 years 5 months 19 days		7 years 6 months 7 days
Share based compensation, options outstanding, aggregate intrinsic value	$ 5,322,000		$ 5,322,000		$ 9,520,000
Options outstanding	16,067,285		16,067,285		11,802,601
Options outstanding, Exercise price	$ 5.28		$ 5.28		$ 5.59
Common stock issued for option exercises, shares			304,669
Stock options exercised, intrinsic value			$ 411,000
Options Outstanding, Value, Exercised	$ 280,000		$ 929,000
Performance Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options vested			962,502		853,335
Common stock issued for option exercises, shares			0		0
Options To Purchase Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation, options granted			4,966,040	1,593,973
Weighted average exercise price of options granted during the period (per share)			$ 4.35	$ 2.23
Common stock issued for option exercises, shares			304,669	0
Stock options exercised, intrinsic value			$ 400,000
Stock Appreciation Rights [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	100,000		$ 100,000
Weighted average period for recognition of compensation expense			2 months 12 days
Share-based compensation, options outstanding, weighted average remaining contractual term (years)			5 years 9 months 18 days
Share based compensation, options outstanding, aggregate intrinsic value	$ 200,000		$ 200,000		$ 700,000
Options outstanding	835,000		835,000
Options outstanding, Exercise price	$ 3.64		$ 3.64		$ 3.64
Options vested			616,667		616,667
Common stock issued for option exercises, shares			0		0
2016 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for issuance					16,194,138
Additional units available for grant			5,591,600
Increase in authorized shares as a percentage of common stock issued			3.50%
Unrecognized compensation expense	$ 14,000,000		$ 14,000,000		$ 6,500,000
Weighted average period for recognition of compensation expense			2 years 1 month 6 days		2 years 2 months 12 days
Share based compensation, options granted			16,067,285
Weighted average exercise price of options granted during the period (per share)			$ 5.28
Stock compensation expense	2,400,000	$ 1,500,000	$ 7,100,000	$ 5,600,000
2016 Equity Incentive Plan [Member] | Performance Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	100,000		$ 100,000
Weighted average period for recognition of compensation expense			6 months
Share-based compensation, options outstanding, weighted average remaining contractual term (years)			5 years 4 months 24 days
Share based compensation, options outstanding, aggregate intrinsic value	$ 0		$ 0		$ 600,000
Options outstanding	1,290,000		1,290,000		1,290,000
Options outstanding, Exercise price	$ 4.06		$ 4.06
2014 Long-Term Incentive Plan (“LTIP”) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock issued for option exercises, shares			0
Equity instruments granted			9,750		9,750
Equity instruments base price			$ 6
Equity instrument payable, common stock value percent above grant price			333.00%
Equity instrument payable, common stock value			$ 20
2016 Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized for issuance					2,551,180
Share based compensation, options granted			98,840	32,273
Stock compensation expense	$ 0	$ 0	$ 0	$ 0
Maximum [Member] | 2016 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase in authorized shares annual percentage			4.00%

Share-based Compensation (Stock

Share-based Compensation (Stock Options Outstanding) (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Outstanding, Units, Beginning Balance	11,802,601
Options Outstanding, Units, Granted	4,966,040
Options Outstanding, Units, Exercised	(304,669)
Options Outstanding, Units, Forfeited	(396,687)
Options Outstanding, Units, Ending Balance	16,067,285		11,802,601
Options Vested and Exercisable, Units	8,706,640
Options Outstanding, Weighted Average Exercise Price, Beginning Balance	$ 5.59
Options Outstanding, Weighted Average Exercise Price, Granted	4.35
Options Outstanding, Weighted Average Exercise Price, Exercised	3.13
Options Outstanding, Weighted Average Exercise Price, Forfeited	4.70
Options Outstanding, Weighted Average Exercise Price, Ending Balance	5.28		$ 5.59
Options Vested and Exercisable, Weighted Average Exercise Price	$ 6.29
Options Outstanding, Weighted Average Remaining Contractual Term (years)	7 years 5 months 19 days		7 years 6 months 7 days
Options Vested and Exercisable, Weighted Average Remaining Contractual Term (years)	6 years 1 month 6 days
Options Outstanding, Aggregate Intrinsic Value	$ 5,322		$ 9,520
Options exercised, aggregate intrinsic value	411
Options Vested and Exercisable, Aggregate Intrinsic Value	$ 4,105
Options To Purchase Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Outstanding, Units, Granted	4,966,040	1,593,973
Options Outstanding, Units, Exercised	(304,669)	0
Options Outstanding, Weighted Average Exercise Price, Granted	$ 4.35	$ 2.23
Options exercised, aggregate intrinsic value	$ 400

Share-based Compensation (Weigh

Share-based Compensation (Weighted-average Fair Value of Stock Option Awards Granted) (Details) - Options To Purchase Common Stock [Member] - $ / shares	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average fair value of grants	$ 2.87	$ 1.48
Expected dividend yield	0.00%	0.00%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	75.46%	76.19%
Risk-free interest rate	0.29%	1.41%
Expected life (years)	5 years 6 months	5 years 6 months
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	84.95%	77.73%
Risk-free interest rate	1.64%	2.61%
Expected life (years)	6 years	6 years

Accrued Expenses (Narrative) (D

Accrued Expenses (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020
Short-Term Accrued Expenses [Line Items]
Non-cash gain on settlement of obligation	$ 1,626	$ 1,754
Commission Payable [Member]
Short-Term Accrued Expenses [Line Items]
Non-cash gain on settlement of obligation	600	600
Terminated License Agreement [Member]
Short-Term Accrued Expenses [Line Items]
Non-cash gain on settlement of obligation	$ 1,000	$ 1,000

Accrued Expenses (Short-term Ac

Accrued Expenses (Short-term Accrued Expenses) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Accrued Expenses [Abstract]
Commission payable	$ 1,768	$ 2,395
Compensation, benefits and severance	3,681	4,668
Research and development	3,980	4,962
Other	783	2,223
Total accrued expenses	$ 10,212	$ 14,248

Commitments and Contingencies (

Commitments and Contingencies (Narrative) (Details) $ in Millions	Sep. 30, 2020USD ($)
Commitments and Contingencies [Abstract]
Contingent milestone payments	$ 229.1

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Income Tax Disclosure [Line Items]
Income tax expense (benefit)
Change in deferred tax liability	$ 0	$ 0	0	$ 0
Federal [Member]
Income Tax Disclosure [Line Items]
Net operating loss carryforwards					$ 371,100,000
Operating loss carryforwards, no expiration			$ 79,900,000
State [Member]
Income Tax Disclosure [Line Items]
Net operating loss carryforwards					$ 307,200,000

Uncategorized Items - kdmn-2020

Label	Element	Value
Restricted Cash and Cash Equivalents	us-gaap_RestrictedCashAndCashEquivalents	$ 2,116,000
Restricted Cash and Cash Equivalents	us-gaap_RestrictedCashAndCashEquivalents	$ 2,117,000