Kadmon (KDMN) 10-Q 6 May 21 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 03, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
Document Fiscal Year Focus	2021
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
Title of 12(b) Security	Common stock, par value $0.001 per share
Trading Symbol	KDMN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		171,973,864
Amendment Flag	false
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001557142
Current Fiscal Year End Date	--12-31

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 132,018	$ 74,423
Marketable debt securities, available-for-sale	163,880	49,435
Accounts receivable, net	1,519	695
Inventories, net	22	102
Prepaid expenses and other current assets	3,197	2,082
Investment, equity securities	10,069	10,564
Total current assets	310,705	137,301
Fixed assets, net	1,192	1,287
Right of use lease asset	15,204	16,112
Goodwill	3,580	3,580
Restricted cash	2,117	2,117
Investment, at cost	2,300	2,300
Other noncurrent assets	9	13
Total assets	335,107	162,710
Current liabilities:
Accounts payable	12,273	10,933
Accrued expenses	8,050	11,534
Term debt - current	2,718	1,699
Lease liability - current	4,292	4,223
Warrant liabilities	922	1,082
Total current liabilities	28,255	29,471
Lease liability - noncurrent	14,479	15,579
Deferred tax liability	278	278
Term debt - noncurrent	339	1,359
Convertible notes, net	232,552
Total liabilities	275,903	46,687
Commitments and contingencies (Note 12)
Stockholders’ equity:
Convertible preferred stock, $0.001 par value; 10,000,000 shares authorized at March 31, 2021 and December 31, 2020; 28,708 shares issued and outstanding at March 31, 2021 and December 31, 2020	45,098	44,555
Common stock, $0.001 par value; 400,000,000 shares authorized at March 31, 2021 and December 31, 2020; 171,816,945 and 171,530,045 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively	171	171
Additional paid-in capital	487,230	515,429
Accumulated deficit	(473,025)	(444,104)
Accumulated other comprehensive loss	(270)	(28)
Total stockholders’ equity	59,204	116,023
Total liabilities and stockholders’ equity	$ 335,107	$ 162,710

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	400,000,000	400,000,000
Common stock, shares issued	171,816,945	171,530,045
Common stock, shares outstanding	171,816,945	171,530,045
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
	Mar. 31, 2021	Mar. 31, 2020
Revenues:
Total revenue	$ 563	$ 6,735
Cost of sales	96	328
Write-down of inventory		284
Gross profit	467	6,123
Operating expenses:
Research and development	15,274	12,874
Selling, general and administrative	12,596	9,366
Total operating expenses	27,870	22,240
Loss from operations	(27,403)	(16,117)
Other (expense) income:
Interest income	600	466
Interest expense	(1,229)
Unrealized loss on equity securities	(495)	(13,803)
Other income	149	157
Total other expense	(975)	(13,180)
Loss before income tax expense	(28,378)	(29,297)
Income tax expense
Net loss	(28,378)	(29,297)
Deemed dividend on convertible preferred stock	543	517
Net loss attributable to common stockholders	$ (28,921)	$ (29,814)
Basic and diluted net loss per share of common stock	$ (0.17)	$ (0.19)
Weighted average basic and diluted shares of common stock outstanding	171,689,510	158,031,405
Other comprehensive loss:
Net unrealized loss on available-for-sale securities	$ 242
Other comprehensive loss	242
Comprehensive loss attributable to common shareholders	(29,163)	$ (29,814)
Net Sales [Member]
Revenues:
Total revenue	360	589
Other Revenue [Member]
Revenues:
Total revenue	$ 203	$ 6,146

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, 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			2,037			2,037
Common stock issued for warrant exercises			7			7
Common stock issued for warrant exercises, shares		2,777
Common stock issued for option exercises			284			284
Common stock issued for option exercises, shares		68,001
Beneficial conversion feature on convertible preferred stock	$ 103				(103)
Accretion of dividends on convertible preferred stock	414				(414)
Net loss					(29,297)	(29,297)
Balance at Mar. 31, 2020	$ 42,950	$ 160	458,539		(362,883)	138,766
Balance, Shares at Mar. 31, 2020	28,708	159,830,774
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 Dec. 31, 2020	$ 44,555	$ 171	515,429	$ (28)	(444,104)	116,023
Balance, Shares at Dec. 31, 2020	28,708	171,530,045
Share-based compensation expense			3,673			3,673
Common stock issued for option exercises			1,128			$ 1,128
Common stock issued for option exercises, shares		286,900				286,900
Payments for capped call transactions			(33,000)			$ (33,000)
Beneficial conversion feature on convertible preferred stock	$ 109				(109)
Accretion of dividends on convertible preferred stock	434				(434)
Other comprehensive loss				(242)		(242)
Net loss					(28,378)	(28,378)
Balance at Mar. 31, 2021	$ 45,098	$ 171	$ 487,230	$ (270)	$ (473,025)	$ 59,204
Balance, Shares at Mar. 31, 2021	28,708	171,816,945

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities:
Net loss	$ (28,378)	$ (29,297)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of premium and discounts on available-for-sale securities	506
Amortization of debt discount	158
Depreciation and amortization of fixed assets	337	418
Non-cash operating lease cost	908	869
Write-down of inventory		284
Share-based compensation	3,673	2,037
Change in fair value of warrant liabilities	(160)	(156)
Net unrealized loss on equity securities	495	13,803
Gain on settlement of obligation	(448)
Changes in operating assets and liabilities:
Accounts receivable, net	(824)	(280)
Inventories, net	80	(144)
Prepaid expenses and other assets	(1,111)	(1,346)
Accounts payable	1,299	(2,399)
Lease liability	(1,031)	(969)
Accrued expenses	(3,036)	(2,635)
Net cash used in operating activities	(27,532)	(19,815)
Cash flows from investing activities:
Purchases of investment debt securities	(127,462)
Maturities of investment debt securities	12,268
Purchases of fixed assets	(201)	(26)
Net cash used in investing activities	(115,395)	(26)
Cash flows from financing activities:
Proceeds from issuance of convertible notes, net of issuance costs	232,394
Payments for capped call transactions	(33,000)
Proceeds from exercise of options	1,128	284
Proceeds from exercise of warrants		7
Net cash provided by financing activities	200,522	291
Net increase (decrease) in cash, cash equivalents and restricted cash	57,595	(19,550)
Cash, cash equivalents and restricted cash, beginning of period	76,540	141,713
Cash, cash equivalents and restricted cash, end of period	134,135	122,163
Components of cash, cash equivalents and restricted cash
Total cash, cash equivalents and restricted cash	134,135	122,163
Non-cash investing and financing activities:
Unpaid fixed asset additions	41	107
Operating cash flows paid for amounts included in the measurement of lease liabilities	1,217	1,192
Preferred Stock [Member]
Non-cash investing and financing activities:
Beneficial conversion feature on convertible preferred stock	109	103
Accretion of dividends on convertible preferred stock	$ 434	$ 414

Organization

Organization	3 Months Ended
	Mar. 31, 2021
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 $ 295.9 million at March 31, 2021. The Company had an accumulated deficit of $ 473.0 million and working capital of $ 282.5 million at March 31, 2021. On February 16, 2021, the Company issued $ 240.0 million aggregate principal amount of 3.625 % convertible senior notes due 2027 (the "Notes"), pursuant to an Indenture dated February 16, 2021, between the Company and U.S. Bank National Association, as trustee, in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act. On February 10, 2021, concurrently with the pricing of the Notes, the Company entered into privately negotiated capped call transactions (the “Capped Call Transactions”) with certain financial institutions. The Company used approximately $ 33.0 million of the net proceeds from the Notes offering to pay for the cost of the Capped Call Transactions (Note 5). The net proceeds from the offering were $ 199.4 million after deducting issuance costs and the cost of Capped Call Transactions. The Company expects that its cash, cash equivalents and marketable debt securities available at March 31, 2021 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 provide for other working capital purposes. Managements’ plans may include continuing to finance operations through the issuance of debt and sale of additional equity securities, monetization of assets, 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 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. The Company had not sold any securities pursuant to this registration statement as of March 31, 2021. The Company entered into a Sales Agreement with Cantor Fitzgerald & Co. 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”). The Company has not sold any securities pursuant to this ATM Program for the period ended March 31, 2021. As of March 31, 2021, the Company has not established a source of revenues sufficient to cover operating costs, and as such, has been dependent on funding operations through the issuance of debt and equity securities. Although cash, cash equivalents and marketable debt securities available at March 31, 2021 is expected to execute the Company’s current business plans, it may 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 pre-clinical or clinical studies. The Company has no commitments for any additional financing and may not be successful in its efforts to raise additional funds or achieve profitable operations. Any amounts raised will be used for further development of product candidates, to secure additional property and equipment, and for other working capital purposes.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2021
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 a ccounting principles generally accepted in the United States of America (“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 months ended March 31, 2021 are not necessarily indicative of the final results that may be expected for the year ending December 31, 2021. 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, 2020. 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, 2020. Since the date of such financial statements, there have been no changes or updates to the Company’s significant accounting policies, other than those described below. 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. 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 available for use in current operations and are reasonably expected to be realized in cash or consumed during the normal cycle of business. Our available-for-sale debt securities generally have contractual maturity dates between six months and two years . The following tables summarize the Company’s cash, cash equivalents and marketable debt securities as of March 31, 2021 and December 31, 2020 (in thousands): March 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and cash equivalents: Cash and money market funds $ 132,018 $ — $ — 132,018 Corporate debt securities — — — — Total cash and cash equivalents 132,018 — — 132,018 Marketable debt securities: Corporate debt securities 164,150 12 ( 282 ) 163,880 Total marketable debt securities 164,150 12 ( 282 ) 163,880 Total cash, cash equivalents and marketable debt securities $ 296,168 $ 12 $ ( 282 ) $ 295,898 December 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and cash equivalents: Cash and money market funds $ 71,382 $ — $ — 71,382 Corporate debt securities 3,041 3,041 Total cash and cash equivalents 74,423 — — 74,423 Marketable debt securities: Corporate debt securities 49,463 4 ( 32 ) 49,435 Total marketable debt securities 49,463 4 ( 32 ) 49,435 Total cash, cash equivalents and marketable debt securities $ 123,886 $ 4 $ ( 32 ) $ 123,858 At March 31, 2021, the Company had invested in 32 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 one year. The aggregate fair value of debt securities in an unrealized loss position at March 31, 2021 was $ 212.6 million. The unrealized losses of $ 0.3 million related to these corporate debt securities were included in accumulated other comprehensive loss as of March 31, 2021. 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), 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. Convertible Notes Transaction In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-06, “ Debt with Conversion and Other Options and Derivatives and Hedging - Contracts in Entity’s Own Equity ” (“ASU 2020-06”) to address the complexity associated with applying GAAP to certain financial instruments with characteristics of liabilities and equity. This ASU includes amendments to the guidance on convertible instruments and the derivative scope exception for contracts in an entity’s own equity and simplifies the accounting for convertible instruments by eliminating the cash conversion accounting model for convertible instruments. The Company early adopted ASU 2020-06 effective January 1, 2021, and the standard did not have a significant impact on its consolidated financial statements. By adopting ASU 2020-06, the company eliminates the separation model for convertible debt and the requirement to separately present in equity an embedded conversion feature in such debt. In February 2021, the Company issued $ 240.0 million in aggregate principal of 3.625 % convertible senior notes due February 15, 2027 (Note 5). The Company accounts for the convertible notes wholly as debt in accordance with FASB Accounting Standards Codification (“ASC”) 470, Debt . The Company does not separately account for the liability and equity components of convertible notes transactions that can be settled in cash by allocating the proceeds from issuance between the liability component and the embedded conversion option. The Company recognizes amortization of the debt discount related to issuance costs as interest expense using the effective interest method. In February 2021, the Company purchased capped call options from financial institutions to minimize the impact of potential dilution of Kadmon common stock upon conversion of the convertible notes. The capped call options meet the definition of a derivative in accordance with FASB ASC 815, Derivatives and Hedging (“ASC 815”), however, qualify for derivative scope exception under ASC 815 for instruments indexed to a company’s own stock. Accordingly, the premiums for the capped call options were recorded as additional paid-in capital on the Company’s consolidated balance sheet as the options are settleable in Kadmon common stock at the election of the Company. See Note 5 for additional information. Embedded Derivatives The Company accounts for derivative financial instruments as either equity or liabilities in accordance with ASC 815, based on the characteristics and provisions of each instrument. Embedded derivatives are required to be bifurcated from the host instruments and recorded at fair value if the derivatives are not clearly and closely related to the host instruments on the date of issuance. The Company’s convertible notes (Note 5) contain certain features that, in accordance with ASC 815, are not clearly and closely related to the host instrument and represent derivatives that are required to be re-measured at fair value each reporting period. The Company determined that the estimated fair value of the derivatives at issuance and as of March 31, 2021 were not material based on a scenario-based cash flow model that uses unobservable inputs that reflect the Company’s own assumptions. Should the Company’s assessment of the probabilities around these scenarios change, including due to changes in market conditions, there could be a change to the fair value. Revenue Recognition The Company recognizes revenue in accordance with FASB 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 months ended March 31, 2021 and 2020 (in thousands): Three Months Ended March 31, 2021 2020 Product sales $ 360 $ 589 License revenue — 6,000 Other revenue 203 146 Total revenue $ 563 $ 6,735 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 March 31, 2021 . 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. 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 March 31, 2021. Other Revenue The other revenue generated by the Company is primarily related to a sublease agreement with MeiraGTx. The Company recognizes revenue related to sublease agreements as they are performed. Related Party Transactions The Company’s related party transactions are disclosed in the audited financial statements included in “Note 2. Summary of Significant Accounting Policies–Related Party Transactions” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Since the date of such financial statements, there have been no changes to the Company’s related party transactions. Recent Accounting Pronouncements In December 2019, the FASB issued 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 Company adopted this standard on January 1, 2021, and the standard did not have a significant impact on its consolidated financial statements. 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	3 Months Ended
	Mar. 31, 2021
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 March 31, 2021, 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 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 March 31, 2021. 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	3 Months Ended
	Mar. 31, 2021
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. 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 share of common stock for the three months ended March 31, 2021 and 2020. 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 March 31, 2021 2020 Numerator – basic and diluted: Net loss available to common stockholders - basic and diluted $ ( 28,921 ) $ ( 29,814 ) Denominator – basic and diluted: Weighted average shares of common stock outstanding used to compute basic and diluted net loss per share 171,689,510 158,031,405 Net loss per share, basic and diluted $ ( 0.17 ) $ ( 0.19 ) 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 March 31, 2021 2020 Options to purchase common stock 25,714,067 15,837,954 Warrants to purchase common stock 10,582,119 11,917,052 Convertible preferred stock 3,758,210 3,579,249 Convertible notes 34,507,560 — Total shares of common stock equivalents 74,561,956 31,334,255

Debt

Debt	3 Months Ended
	Mar. 31, 2021
Debt [Abstract]
Debt	5. Debt 3.625% Convertible Senior Notes Due in 2027 In February 2021, the Company issued $ 240.0 million in aggregate principal of 3.625 % convertible senior notes due February 15, 2027 (the "Notes") through a private placement to qualified institutional buyers pursuant to Rule 144A of the Securities Act of 1933, as amended. The debt issuance costs of $ 7.6 million were recorded as a debt discount and are being amortized to interest expense over the contractual term of the Notes. The Notes, governed by an indenture between the Company and a trustee, are senior, unsecured obligations and do not include financial and operating covenants nor any restrictions on the payments of dividends, the incurrence of indebtedness or the issuance or repurchase of securities by Kadmon or any of its subsidiaries. Interest on the Notes is payable semi-annually in cash in arrears at a rate of 3.625 % per annum on February 15 and August 15 of each year. The Notes will mature February 15, 2027 unless they are redeemed, repurchased or converted prior to such date. Before November 15, 2026, noteholders will have the right to convert their Notes only upon the occurrence of certain events. From and after November 15, 2026, noteholders may convert their Notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. Upon conversion, the Notes may be settled in shares of Kadmon common stock, cash or a combination thereof, at the Company’s election. The initial conversion rate is 143.7815 shares of common stock per $1,000 in principal amount of Notes, which represents an initial conversion price of approximately $ 6.96 per share of common stock, or a premium of approximately 30 % to the $ 5.35 per share closing price of the Company’s common stock on February 10, 2021, the date the Company priced the offering. The conversion rate and conversion price will be subject to customary adjustments upon the occurrence of certain events. In addition, if certain corporate events that constitute a “Make-Whole Fundamental Change” (as defined in the applicable indenture) occur, then the conversion rate will, in certain circumstances, be increased for a specified period of time. The Company may redeem all or any portion of the Notes, at its option, on or after February 20, 2024 and on or before the 40 th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, up to, but excluding, the redemption date, but only if the last reported sale price per share of the Company’s common stock exceeds 130 % of the conversion price then in effect for at least each of 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately before the date the Company provides written notice of redemption; and the trading day immediately before the notice is sent. In addition, calling any Note for redemption will constitute a Make-Whole Fundamental Change with respect to that Note, in which case the conversion rate applicable to the conversion of that Note will be increased in certain circumstances if it is converted after it is called for redemption. Holders of Notes may require the Company to repurchase their Notes upon the occurrence of certain events that constitute a fundamental change under the indenture governing the Notes at a fundamental change repurchase price equal to 100 % of the principal amount thereof, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. The following table summarizes the carrying value of the Notes at March 31, 2021 (in thousands): March 31, 2021 Gross proceeds $ 240,000 Unamortized debt discount ( 7,448 ) Carrying value $ 232,552 The following table summarizes the interest expense recognized related to the Notes for the three months ended March 31, 2021 (in thousands): March 31, 2021 Stated interest $ 1,071 Amortized debt discount 158 Interest expense $ 1,229 Capped Call Transactions Separately, the Company entered into privately negotiated capped call options with financial institutions. The capped call options cover, subject to customary anti-dilution adjustments, the number of shares of the Company’s common stock that initially underlie the Notes. The cap price of the capped call options is $ 10.70 per share, representing a premium of 100 % above the closing price of $ 5.35 per share of the Company’s common stock on February 10, 2021, and is subject to certain adjustments under the terms of the capped call options. The capped call options, which have a final expiration date of February 11, 2027, are generally intended to reduce or offset potential dilution to the Company’s common stock upon conversion of the Notes with such reduction and/or offset, subject to a cap based on the cap price. The capped call transactions are separate transactions entered into by the Company, are not part of the terms of the Notes and will not change the holders’ rights under the Notes. Holders of the Notes will not have any rights with respect to the capped call options. The Company paid a total of $ 33.0 million in premiums for the capped call options, which was recorded as additional paid-in capital, using a portion of the gross proceeds from the issuance and sale of the Notes. The capped call options are excluded from diluted earnings per share because the impact would be anti-dilutive. Paycheck Protection Program of the Coronavirus Aid, Relief, and Economic Security Act. 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, 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. 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 applied for forgiveness, however, no assurance is provided that the Company will obtain forgiveness for any portion of the Loan. At March 31, 2021, $ 2.7 million of principal payments have been recorded as short-term debt and the remaining balance of $ 0.3 million is recorded as long-term debt. The Company does not expect to incur any material interest expense under the Loan.

Financial Instruments

Financial Instruments	3 Months Ended
	Mar. 31, 2021
Financial Instruments [Abstract]
Financial Instruments	6. 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 investments and is not a measure of 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. 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, warrant liabilities and convertible notes. 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. 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 fair value of the Notes, which differs from their carrying value, is influenced by interest rates, stock price and stock price volatility and is determined by prices observed in market trading. The market for trading of the Notes is not considered to be an active market and therefore the estimate of fair value is based on Level 2 inputs. The estimated fair value of the Notes was approximately $ 209.7 million at March 31, 2021. The following table presents the Company’s financial assets and liabilities that have been measured at fair value at March 31, 2021 and 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 $ 126,256 $ 126,256 $ — $ — Corporate debt securities — — — — Short-term investments: Corporate debt securities 163,880 — 163,880 — Ownership of MeiraGTx 10,069 10,069 — — $ 300,205 $ 136,325 $ 163,880 $ — Financial liabilities Warrant liabilities $ 922 $ — $ 922 $ — The following table presents the Company’s financial assets and liabilities that have been measured at fair value at December 31, 2020 and 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 $ 67,467 $ 67,467 $ — $ — Corporate debt securities 3,041 — 3,041 — Short-term investments: Corporate debt securities 49,435 — 49,435 Ownership of MeiraGTx 10,564 10,564 — — $ 130,507 $ 78,031 $ 52,476 $ — Financial liabilities Warrant liabilities $ 1,082 $ — $ 1,082 $ — The Company has not recognized any material gross realized gains or losses on sales of available-for-sale marketable debt securities. Ownership of MeiraGTx The Company maintained a 1.6 % ownership in the ordinary shares of MeiraGTx Holdings plc (“MeiraGTx”), a clinical-stage gene therapy company, with a fair value of $ 10.1 million and $ 10.6 million, at March 31, 2021 and December 31, 2020, respectively. The Company has recorded a net unrealized loss on its ownership of MeiraGTx ordinary shares of $ 0.5 million and $ 13.8 million for the three months ended March 31, 2021 and 2020 , respectively. The unrealized gains on equity securities consists of 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. Warrant Liabilities In connection with the 2015 credit agreement, 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 March 31, 2021, 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 $ 0.9 million at March 31, 2021 and approximately $ 1.1 million at December 31, 2020. The Company used the Black-Scholes pricing model to value the liability related to the 2015 Warrants at March 31, 2021 with the following assumptions: risk-free interest rate of 0.1 %, expected term of 1.4 years, expected volatility of 74.7 % and a dividend rate of 0 %. The change in fair value of the 2015 Warrants was approximately $( 0.2 ) million for each of the three months ended March 31, 2021 and 2020. None of these instruments had been exercised as of March 31, 2021 . The table below represents a roll-forward of warrant liabilities measured using Level 2 inputs from January 1, 2021 to March 31, 2021 (in thousands): Significant Other Observable Inputs (Level 2) Balance at January 1, 2021 $ 1,082 Change in fair value of warrant liabilities ( 160 ) Balance at March 31, 2021 $ 922 The following table represents a roll-forward of warrants outstanding from January 1, 2021 to March 31, 2021: Warrants Weighted Average Exercise Price Balance, January 1, 2021 10,582,119 $ 6.30 Exercised — — Balance, March 31, 2021 10,582,119 $ 6.30

Inventories

Inventories	3 Months Ended
	Mar. 31, 2021
Inventories [Abstract]
Inventories	7. 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 $ 2.0 million and $ 2.1 million at March 31, 2021 and December 31, 2020, respectively. Inventories are comprised of the following (in thousands): March 31, December 31, 2021 2020 Raw materials $ — $ — Finished goods, net 22 102 Total inventories, net $ 22 $ 102

Fixed Assets

Fixed Assets	3 Months Ended
	Mar. 31, 2021
Fixed Assets [Abstract]
Fixed Assets	8. Fixed Assets Fixed assets consisted of the following (in thousands): Useful Lives March 31, December 31, (Years) 2021 2020 Leasehold improvements 4 - 8 $ 10,398 $ 10,398 Office equipment and furniture 3 - 15 1,363 1,363 Machinery and laboratory equipment 3 - 15 4,067 3,835 Software 1 - 5 4,146 4,136 19,974 19,732 Less accumulated depreciation and amortization ( 18,782 ) ( 18,445 ) Fixed assets, net $ 1,192 $ 1,287 Depreciation and amortization of fixed assets totaled $ 0.3 million and $ 0.4 million for the three months ended March 31, 2021 and 2020, respectively.

License Agreements

License Agreements	3 Months Ended
	Mar. 31, 2021
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 “Note 11. License Agreements” of its Annual Report on Form 10-K for the year ended December 31, 2020 . Since the date of such financial statements, there have been no significant changes to the Company’s license agreements.

Share-based Compensation

Share-based Compensation	3 Months Ended
	Mar. 31, 2021
Share-based Compensation [Abstract]
Share-based Compensation	10. Share-based Compensation 2016 Equity Incentive Plan A total of 21,785,738 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, 2020. On January 1, 2021, pursuant to the evergreen provision contained in the 2016 Equity Plan, the number of shares reserved for future grants was increased by 6,861,201 shares, which was four percent ( 4 %) of the outstanding shares of common stock on December 31, 2020. 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. Total unrecognized compensation expense related to unvested options granted under the Company’s share-based compensation plan was $ 33.4 million and $ 11.9 million at March 31, 2021 and December 31, 2020, respectively. That expense is expected to be recognized over a weighted average period of 2.5 years and 1.9 years as of March 31, 2021 and December 31, 2020, respectively. The Company recorded share-based compensation expense under the 2016 Equity Plan of $ 3.7 million and $ 2.0 million for the three months ended March 31, 2021 and 2020, respectively. The following table summarizes information about stock options outstanding, not including performance stock options, from January 1, 2021 to March 31, 2021: Options Outstanding Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (in thousands) Balance, January 1, 2021 16,000,685 $ 5.29 7.11 $ 7,365 Granted 9,001,748 3.99 Exercised ( 286,900 ) 3.93 369 Forfeited ( 291,466 ) 4.53 Balance, March 31, 2021 24,424,067 $ 4.83 7.92 $ 5,002 Options vested and exercisable, March 31, 2021 10,897,844 $ 5.83 6.12 $ 4,279 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 March 31, 2021 ($ 3.89 per share) and December 31, 2020 ($ 4.15 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. 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: Three Months Ended Three Months Ended March 31, 2021 March 31, 2020 Options granted 9,001,748 4,247,000 Weighted average exercise price $ 3.99 $ 4.34 Weighted average fair value of grants $ 2.87 $ 2.87 Expected volatility 87.20 % - 127.92 % 75.46 % - 76.05 % Risk-free interest rate 0.05 % - 0.96 % 0.82 % - 1.64 % Expected life (years) 0.87 - 6.0 6.00 Expected dividend yield 0 % 0 % Performance Options A total of 1,290,000 performance options (“Performance Options”) with an exercise price of $ 4.06 were outstanding at March 31, 2021 with no intrinsic value and at December 31, 2020 with an intrinsic value of $ 0.3 million. The weighted average remaining contractual life of outstanding Performance Options at March 31, 2021 was 5.4 years. Compensation expense for Performance Options was recognized on a straight-line basis over the awards’ requisite service period of three years . At March 31, 2021 and December 31, 2020, 962,502 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 March 31, 2021 and December 31, 2020 with an intrinsic value of $ 0.2 million and $ 0.5 million, respectively. The weighted average remaining contractual life of outstanding SARs at March 31, 2021 was 5.3 years. Compensation expense for SARs was recognized on a straight-line basis over three years . At both March 31, 2021 and December 31, 2020, 835,000 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 March 31, 2021 and December 31, 2020. 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 March 31, 2021. 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, 2020. The Company’s board of directors elected not to increase the shares reserved for issuance under the 2016 ESPP on January 1, 2021. The Company did no t issue any shares or record any meaningful compensation expense under the 2016 ESPP during the three months ended March 31, 2021 and 2020, respectively.

Accrued Expenses

Accrued Expenses	3 Months Ended
	Mar. 31, 2021
Accrued Expenses [Abstract]
Accrued Expenses	11. Accrued Expenses Short-term accrued expenses at March 31, 2021 and December 31, 2020 include the following (in thousands): March 31, December 31, 2021 2020 Compensation and benefits $ 2,219 $ 5,585 Research and development 3,625 4,183 Interest 1,091 20 Other 1,115 1,746 Total accrued expenses $ 8,050 $ 11,534 Compensation and benefits Compensation and benefits primarily represents earned and unpaid employee wages and bonuses. 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. Interest Interest represents accrued and unpaid interest on the Company’s outstanding indebtedness (Note 5).

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2021
Commitments and Contingencies [Abstract]
Commitments and Contingencies	12. Commitments and Contingencies The Company’s commitments are disclosed in the audited financial statements included in “Note 15. Commitments and Contingencies” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 . Since the date of such financial statements, there have been no material changes to the Company’s commitments or contingencies, including leases, other than the legal proceedings described below. 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 March 31, 2021. 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. Legal Proceedings The Company is subject to various legal proceedings that arise from time to time in the ordinary course of its business. Although the Company believes that the various proceedings brought against it are without merit, and that it has adequate product liability and other insurance to cover any claims, litigation is subject to many factors which are difficult to predict and there can be no assurance that the Company will not incur material costs in the resolution of legal matters. Should the Company determine that any future obligations will exist, the Company will record expense equal to the amount which is deemed probable and estimable. Rafik Tadros v. Kadmon Holdings, Inc., Harlan W. Waksal, and Steven Meehan On April 2, 2021, Rafik Tadros, a purported stockholder of the Company, filed the above styled putative class action complaint against the Company, its Chief Executive Officer and its Chief Financial Officer (“Defendants”), alleging that from October 1, 2020 through March 10, 2021, Defendants made materially false and misleading statements to the Company’s stockholders regarding the Belumosudil New Drug Application and the FDA’s review process related thereto. The Defendants have notified the applicable Directors and Officers Insurance carriers and the deadline for responding to the complaint is June 4, 2021. Defendants deny the allegations and believe that the claims are without merit. GoldenTree Master Fund, Ltd. v. Kadmon Holdings, Inc . On April 21, 2021, GoldenTree Master Fund, Ltd (“GoldenTree”) filed suit in the Supreme Court of New York bringing claims for breach of contract, unjust enrichment, and fraudulent inducement. The claims relate to email correspondence pursuant to which the Company allegedly committed to work with GoldenTree in good faith to try and achieve either a third-party sale or exchange into registered common shares GoldenTree’s preferred shares of the Company. The Company denies the allegations and believes the claims are without merit.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2021
Income Taxes [Abstract]
Income Taxes	13. 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 months ended March 31, 2021 and 2020. 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 March 31, 2021 and December 31, 2020. At December 31, 2020, the Company had unused federal and state NOL carryforwards of $ 408.4 million and $ 349.6 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. Approximately $ 291.1 million of the federal NOL carryforwards expire at various dates through December 31, 2037, and approximately $ 117.3 million of federal net operating loss carryforwards will not expire. Approximately all of the $ 349.6 million state NOL carryforwards expire at various dates through December 31, 2040.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policy)	3 Months Ended
	Mar. 31, 2021
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 a ccounting principles generally accepted in the United States of America (“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.
Interim Financial Statements	Operating results for the three months ended March 31, 2021 are not necessarily indicative of the final results that may be expected for the year ending December 31, 2021. 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, 2020.
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, 2020. Since the date of such financial statements, there have been no changes or updates to the Company’s significant accounting policies, other than those described below.
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. 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 available for use in current operations and are reasonably expected to be realized in cash or consumed during the normal cycle of business. Our available-for-sale debt securities generally have contractual maturity dates between six months and two years . The following tables summarize the Company’s cash, cash equivalents and marketable debt securities as of March 31, 2021 and December 31, 2020 (in thousands): March 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and cash equivalents: Cash and money market funds $ 132,018 $ — $ — 132,018 Corporate debt securities — — — — Total cash and cash equivalents 132,018 — — 132,018 Marketable debt securities: Corporate debt securities 164,150 12 ( 282 ) 163,880 Total marketable debt securities 164,150 12 ( 282 ) 163,880 Total cash, cash equivalents and marketable debt securities $ 296,168 $ 12 $ ( 282 ) $ 295,898 December 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and cash equivalents: Cash and money market funds $ 71,382 $ — $ — 71,382 Corporate debt securities 3,041 3,041 Total cash and cash equivalents 74,423 — — 74,423 Marketable debt securities: Corporate debt securities 49,463 4 ( 32 ) 49,435 Total marketable debt securities 49,463 4 ( 32 ) 49,435 Total cash, cash equivalents and marketable debt securities $ 123,886 $ 4 $ ( 32 ) $ 123,858 At March 31, 2021, the Company had invested in 32 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 one year. The aggregate fair value of debt securities in an unrealized loss position at March 31, 2021 was $ 212.6 million. The unrealized losses of $ 0.3 million related to these corporate debt securities were included in accumulated other comprehensive loss as of March 31, 2021. 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), 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.
Convertible Notes Transaction	Convertible Notes Transaction In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-06, “ Debt with Conversion and Other Options and Derivatives and Hedging - Contracts in Entity’s Own Equity ” (“ASU 2020-06”) to address the complexity associated with applying GAAP to certain financial instruments with characteristics of liabilities and equity. This ASU includes amendments to the guidance on convertible instruments and the derivative scope exception for contracts in an entity’s own equity and simplifies the accounting for convertible instruments by eliminating the cash conversion accounting model for convertible instruments. The Company early adopted ASU 2020-06 effective January 1, 2021, and the standard did not have a significant impact on its consolidated financial statements. By adopting ASU 2020-06, the company eliminates the separation model for convertible debt and the requirement to separately present in equity an embedded conversion feature in such debt. In February 2021, the Company issued $ 240.0 million in aggregate principal of 3.625 % convertible senior notes due February 15, 2027 (Note 5). The Company accounts for the convertible notes wholly as debt in accordance with FASB Accounting Standards Codification (“ASC”) 470, Debt . The Company does not separately account for the liability and equity components of convertible notes transactions that can be settled in cash by allocating the proceeds from issuance between the liability component and the embedded conversion option. The Company recognizes amortization of the debt discount related to issuance costs as interest expense using the effective interest method. In February 2021, the Company purchased capped call options from financial institutions to minimize the impact of potential dilution of Kadmon common stock upon conversion of the convertible notes. The capped call options meet the definition of a derivative in accordance with FASB ASC 815, Derivatives and Hedging (“ASC 815”), however, qualify for derivative scope exception under ASC 815 for instruments indexed to a company’s own stock. Accordingly, the premiums for the capped call options were recorded as additional paid-in capital on the Company’s consolidated balance sheet as the options are settleable in Kadmon common stock at the election of the Company. See Note 5 for additional information.
Embedded Derivatives	Embedded Derivatives The Company accounts for derivative financial instruments as either equity or liabilities in accordance with ASC 815, based on the characteristics and provisions of each instrument. Embedded derivatives are required to be bifurcated from the host instruments and recorded at fair value if the derivatives are not clearly and closely related to the host instruments on the date of issuance. The Company’s convertible notes (Note 5) contain certain features that, in accordance with ASC 815, are not clearly and closely related to the host instrument and represent derivatives that are required to be re-measured at fair value each reporting period. The Company determined that the estimated fair value of the derivatives at issuance and as of March 31, 2021 were not material based on a scenario-based cash flow model that uses unobservable inputs that reflect the Company’s own assumptions. Should the Company’s assessment of the probabilities around these scenarios change, including due to changes in market conditions, there could be a change to the fair value.
Revenue Recognition	Revenue Recognition The Company recognizes revenue in accordance with FASB 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 months ended March 31, 2021 and 2020 (in thousands): Three Months Ended March 31, 2021 2020 Product sales $ 360 $ 589 License revenue — 6,000 Other revenue 203 146 Total revenue $ 563 $ 6,735 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 March 31, 2021 . 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. 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 March 31, 2021. Other Revenue The other revenue generated by the Company is primarily related to a sublease agreement with MeiraGTx. The Company recognizes revenue related to sublease agreements as they are performed.
Related Party Transactions	Related Party Transactions The Company’s related party transactions are disclosed in the audited financial statements included in “Note 2. Summary of Significant Accounting Policies–Related Party Transactions” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Since the date of such financial statements, there have been no changes to the Company’s related party transactions.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In December 2019, the FASB issued 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 Company adopted this standard on January 1, 2021, and the standard did not have a significant impact on its consolidated financial statements. 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)	3 Months Ended
	Mar. 31, 2021
Summary of Significant Accounting Policies [Abstract]
Summary of Cash, Cash Equivalents and Marketable Debt Securities	March 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and cash equivalents: Cash and money market funds $ 132,018 $ — $ — 132,018 Corporate debt securities — — — — Total cash and cash equivalents 132,018 — — 132,018 Marketable debt securities: Corporate debt securities 164,150 12 ( 282 ) 163,880 Total marketable debt securities 164,150 12 ( 282 ) 163,880 Total cash, cash equivalents and marketable debt securities $ 296,168 $ 12 $ ( 282 ) $ 295,898 December 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash and cash equivalents: Cash and money market funds $ 71,382 $ — $ — 71,382 Corporate debt securities 3,041 3,041 Total cash and cash equivalents 74,423 — — 74,423 Marketable debt securities: Corporate debt securities 49,463 4 ( 32 ) 49,435 Total marketable debt securities 49,463 4 ( 32 ) 49,435 Total cash, cash equivalents and marketable debt securities $ 123,886 $ 4 $ ( 32 ) $ 123,858
Disaggregation of Revenue	Three Months Ended March 31, 2021 2020 Product sales $ 360 $ 589 License revenue — 6,000 Other revenue 203 146 Total revenue $ 563 $ 6,735

Net Loss per Share Attributab_2

Net Loss per Share Attributable to Common Stockholders (Tables)	3 Months Ended
	Mar. 31, 2021
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 March 31, 2021 2020 Numerator – basic and diluted: Net loss available to common stockholders - basic and diluted $ ( 28,921 ) $ ( 29,814 ) Denominator – basic and diluted: Weighted average shares of common stock outstanding used to compute basic and diluted net loss per share 171,689,510 158,031,405 Net loss per share, basic and diluted $ ( 0.17 ) $ ( 0.19 )
Anti-dilutive Amounts Excluded From Calculation of Diluted Net Income (Loss) per Share	Three Months Ended March 31, 2021 2020 Options to purchase common stock 25,714,067 15,837,954 Warrants to purchase common stock 10,582,119 11,917,052 Convertible preferred stock 3,758,210 3,579,249 Convertible notes 34,507,560 — Total shares of common stock equivalents 74,561,956 31,334,255

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2021
Debt [Abstract]
Schedule of Carrying Value of Notes	March 31, 2021 Gross proceeds $ 240,000 Unamortized debt discount ( 7,448 ) Carrying value $ 232,552
Schedule of Interest Expense	March 31, 2021 Stated interest $ 1,071 Amortized debt discount 158 Interest expense $ 1,229

Financial Instruments (Tables)

Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2021
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 $ 126,256 $ 126,256 $ — $ — Corporate debt securities — — — — Short-term investments: Corporate debt securities 163,880 — 163,880 — Ownership of MeiraGTx 10,069 10,069 — — $ 300,205 $ 136,325 $ 163,880 $ — Financial liabilities Warrant liabilities $ 922 $ — $ 922 $ — The following table presents the Company’s financial assets and liabilities that have been measured at fair value at December 31, 2020 and 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 $ 67,467 $ 67,467 $ — $ — Corporate debt securities 3,041 — 3,041 — Short-term investments: Corporate debt securities 49,435 — 49,435 Ownership of MeiraGTx 10,564 10,564 — — $ 130,507 $ 78,031 $ 52,476 $ — Financial liabilities Warrant liabilities $ 1,082 $ — $ 1,082 $ —
Rollforward of Level 2 Investments	Significant Other Observable Inputs (Level 2) Balance at January 1, 2021 $ 1,082 Change in fair value of warrant liabilities ( 160 ) Balance at March 31, 2021 $ 922
Warrants Outstanding	Warrants Weighted Average Exercise Price Balance, January 1, 2021 10,582,119 $ 6.30 Exercised — — Balance, March 31, 2021 10,582,119 $ 6.30

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2021
Inventories [Abstract]
Schedule of Inventories	March 31, December 31, 2021 2020 Raw materials $ — $ — Finished goods, net 22 102 Total inventories, net $ 22 $ 102

Fixed Assets (Tables)

Fixed Assets (Tables)	3 Months Ended
	Mar. 31, 2021
Fixed Assets [Abstract]
Fixed Assets	Useful Lives March 31, December 31, (Years) 2021 2020 Leasehold improvements 4 - 8 $ 10,398 $ 10,398 Office equipment and furniture 3 - 15 1,363 1,363 Machinery and laboratory equipment 3 - 15 4,067 3,835 Software 1 - 5 4,146 4,136 19,974 19,732 Less accumulated depreciation and amortization ( 18,782 ) ( 18,445 ) Fixed assets, net $ 1,192 $ 1,287

Share-based Compensation (Table

Share-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2021
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, 2021 16,000,685 $ 5.29 7.11 $ 7,365 Granted 9,001,748 3.99 Exercised ( 286,900 ) 3.93 369 Forfeited ( 291,466 ) 4.53 Balance, March 31, 2021 24,424,067 $ 4.83 7.92 $ 5,002 Options vested and exercisable, March 31, 2021 10,897,844 $ 5.83 6.12 $ 4,279
Weighted-average Fair Value of Stock Option Awards Granted	Three Months Ended Three Months Ended March 31, 2021 March 31, 2020 Options granted 9,001,748 4,247,000 Weighted average exercise price $ 3.99 $ 4.34 Weighted average fair value of grants $ 2.87 $ 2.87 Expected volatility 87.20 % - 127.92 % 75.46 % - 76.05 % Risk-free interest rate 0.05 % - 0.96 % 0.82 % - 1.64 % Expected life (years) 0.87 - 6.0 6.00 Expected dividend yield 0 % 0 %

Accrued Expenses (Tables)

Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2021
Accrued Expenses [Abstract]
Short-term Accrued Expenses	March 31, December 31, 2021 2020 Compensation and benefits $ 2,219 $ 5,585 Research and development 3,625 4,183 Interest 1,091 20 Other 1,115 1,746 Total accrued expenses $ 8,050 $ 11,534

Organization (Narrative) (Detai

Organization (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Organization [Line Items]
Working capital	$ 282,500,000
Cash, cash equivalents, and marketable securities	295,900,000
Accumulated deficit	(473,025,000)	$ (444,104,000)
Cost of capped call	33,000,000
Proceeds from secured debt, net of debt discount and capped call	199,400,000
Senior Notes, Due 2027 [Member]
Organization [Line Items]
Borrowings, face amount	$ 240,000,000
Interest rate	3.625%
2020 Registration Statement [Member]
Organization [Line Items]
Registration statement, authorized amount	$ 300,000,000
2020 Registration Statement [Member] | Common Stock [Member]
Organization [Line Items]
Registration statement, authorized amount	$ 50,000,000

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Narrative) (Details)	3 Months Ended
	Mar. 31, 2021USD ($)segmentsecuritycontract	Dec. 31, 2020USD ($)
Summary Of Significant Accounting Policies [Line Items]
Number of operating segments | segment	1
Number of securities in unrealized loss position, less than a year | security	32
Number of securities in unrealized loss position, more than 12 months | security	0
Fair value of debt securities in unrealized loss positions	$ 212,600,000
Gross unrealized losses	$ 282,000	$ 32,000
License Revenue [Member]
Summary Of Significant Accounting Policies [Line Items]
Number of performance obligations | contract	0
License revenue	$ 6,000,000
Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Debt securities maturity period	6 months
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]
Debt securities maturity period	2 years
Gross unrealized losses	$ 300,000
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]
Interest rate		1.00%
Senior Notes, Due 2027 [Member]
Summary Of Significant Accounting Policies [Line Items]
Borrowings, face amount	$ 240,000,000
Interest rate	3.625%

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Summary of Cash, Cash Equivalents and Marketable Debt Securities) (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 296,168	$ 123,886
Gross Unrealized Gains	12	4
Gross Unrealized Losses	(282)	(32)
Fair Value	295,898	123,858
Corporate Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Fair Value	163,880	49,435
Cash and Cash Equivalents [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	132,018	74,423
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value	132,018	74,423
Cash and Cash Equivalents [Member] | Cash and Money Market Funds [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	132,018	71,382
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value	132,018	71,382
Cash and Cash Equivalents [Member] | Corporate Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost		3,041
Gross Unrealized Gains
Gross Unrealized Losses
Fair Value		3,041
Marketable Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	164,150	49,463
Gross Unrealized Gains	12	4
Gross Unrealized Losses	(282)	(32)
Fair Value	163,880	49,435
Marketable Debt Securities [Member] | Corporate Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	164,150	49,463
Gross Unrealized Gains	12	4
Gross Unrealized Losses	(282)	(32)
Fair Value	$ 163,880	$ 49,435

Summary of Significant Accoun_6

Summary of Significant Accounting Policies (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Disaggregation of Revenue [Line Items]
Revenues	$ 563	$ 6,735
Net Sales [Member]
Disaggregation of Revenue [Line Items]
Revenues	360	589
License Revenue [Member]
Disaggregation of Revenue [Line Items]
Revenues		6,000
Other Revenue [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 203	$ 146

Stockholders_ Equity (Narrative

Stockholders’ Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2021	Feb. 10, 2021	Dec. 31, 2020	Apr. 01, 2016
Equity [Line Items]
Unit price	$ 3.89	$ 5.35	$ 4.15	$ 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
	Mar. 31, 2021	Mar. 31, 2020
Net Loss per Share Attributable to Common Stockholders [Abstract]
Net loss available to common stockholders - basic and diluted	$ (28,921)	$ (29,814)
Weighted average shares of common stock outstanding used to compute basic and diluted net loss per share	171,689,510	158,031,405
Net loss per share, basic and diluted	$ (0.17)	$ (0.19)

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
	Mar. 31, 2021	Mar. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares of common stock equivalents	74,561,956	31,334,255
Options To Purchase Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares of common stock equivalents	25,714,067	15,837,954
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares of common stock equivalents	10,582,119	11,917,052
Convertible Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares of common stock equivalents	3,758,210	3,579,249
Convertible Notes [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total shares of common stock equivalents	34,507,560

Debt (Narrative) (Details)

Debt (Narrative) (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2021USD ($)item$ / shares	Dec. 31, 2020USD ($)$ / shares	Feb. 28, 2021USD ($)	Feb. 10, 2021$ / shares	Apr. 01, 2016$ / shares
Debt Instrument [Line Items]
Common stock, price per share | $ / shares	$ 3.89	$ 4.15		$ 5.35	$ 12
Cap stock price | $ / shares	$ 10.70
Coverage as a percent of share price	100.00%
Cost of capped call	$ 33,000,000
Term debt - current	2,718,000	$ 1,699,000
Term debt - noncurrent	339,000	$ 1,359,000
Senior Notes, Due 2027 [Member]
Debt Instrument [Line Items]
Total borrowings	$ 240,000,000
Interest rate	3.625%
Debt discount	$ 7,448,000		$ 7,600,000
Debt conversion ratio	0.1437815
Conversion price | $ / shares	$ 6.96
Share price premium percent	30.00%
Trading days prior to maturity to convert | item	40
Percentage of trading price per share for conversion	130.00%
Trading days triggering conversion option | item	20
Consecutive trading days triggering conversion option | item	30
Fundamental change purchase price as percentage of principal	100.00%
CARES Act Loan [Member]
Debt Instrument [Line Items]
Interest rate		1.00%
Proceeds from issuance of term debt		$ 3,100,000
Term debt - current	$ 2,700,000
Term debt - noncurrent	$ 300,000

Debt (Schedule of Carrying Valu

Debt (Schedule of Carrying Value of Notes) (Details) - Senior Notes, Due 2027 [Member] - USD ($) $ in Thousands	Mar. 31, 2021	Feb. 28, 2021
Debt Instrument [Line Items]
Gross proceeds	$ 240,000
Unamortized debt discount	(7,448)	$ (7,600)
Carrying value	$ 232,552

Debt (Schedule of Interest Expe

Debt (Schedule of Interest Expense) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021USD ($)
Debt Instrument [Line Items]
Amortization of debt discount	$ 158
Interest expense	1,229
Senior Notes, Due 2027 [Member]
Debt Instrument [Line Items]
Stated Interest	1,071
Amortization of debt discount	158
Interest expense	$ 1,229

Financial Instruments (Narrativ

Financial Instruments (Narrative) (Details) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		12 Months Ended
	Aug. 31, 2016$ / sharesshares	Mar. 31, 2021USD ($)item$ / sharesshares	Mar. 31, 2020USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2020USD ($)shares
Financial Instruments [Line Items]
Convertible debt fair value		$ 209,700
Equity securities fair value		10,069			$ 10,564
Equity securities, unrealized loss		$ 495	$ 13,803
Warrants outstanding, shares | shares		10,582,119			10,582,119
MeiraGTx Ltd. [Member]
Financial Instruments [Line Items]
Ownership percentage		1.60%
Equity securities fair value		$ 10,100			$ 10,600
Equity securities, unrealized loss		500	13,800
Warrants [Member]
Financial Instruments [Line Items]
Fair value of liability		$ 922			$ 1,082
2015 Credit Agreement, Warrants [Member]
Financial Instruments [Line Items]
Warrants to purchase				$ 6,300
Common units converted to warrants | shares	617,651
Strike price | $ / shares	$ 10.20	$ 4.50
Warrants outstanding, shares | shares		88,238
Expected term		1 year 4 months 24 days
Change in fair value of warrant		$ (200)	$ (200)
Warrants exercised | shares		0
2015 Credit Agreement, Warrants [Member] | Expected Dividend YIeld [Member]
Financial Instruments [Line Items]
Warrants and Rights Outstanding, Measurement Input | item		0
2015 Credit Agreement, Warrants [Member] | Expected Volatility [Member]
Financial Instruments [Line Items]
Warrants and Rights Outstanding, Measurement Input | item		0.747
2015 Credit Agreement, Warrants [Member] | Risk Free Interest Rate [Member]
Financial Instruments [Line Items]
Warrants and Rights Outstanding, Measurement Input | item		0.001
2015 Credit Agreement, Fifth Amendment [Member]
Financial Instruments [Line Items]
Strike price | $ / shares		$ 3.30
Warrants outstanding, shares | shares		529,413

Financial Instruments (Fair Val

Financial Instruments (Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Financial Instruments [Line Items]
Debt securities	$ 295,898	$ 123,858
Equity securities fair value	10,069	10,564
Financial assets	300,205	130,507
Quoted Prices in Active Markets for Identical Items (Level 1) [Member]
Financial Instruments [Line Items]
Equity securities fair value	10,069	10,564
Financial assets	136,325	78,031
Significant Other Observable Inputs (Level 2) [Member]
Financial Instruments [Line Items]
Financial assets	163,880	52,476
Money Market Funds [Member]
Financial Instruments [Line Items]
Cash equivalents	126,256	67,467
Money Market Funds [Member] | Quoted Prices in Active Markets for Identical Items (Level 1) [Member]
Financial Instruments [Line Items]
Cash equivalents	126,256	67,467
Corporate Debt Securities [Member]
Financial Instruments [Line Items]
Cash equivalents		3,041
Debt securities	163,880	49,435
Corporate Debt Securities [Member] | Significant Other Observable Inputs (Level 2) [Member]
Financial Instruments [Line Items]
Cash equivalents		3,041
Debt securities	163,880	49,435
Warrants [Member]
Financial Instruments [Line Items]
Financial liabilities	922	1,082
Warrants [Member] | Significant Other Observable Inputs (Level 2) [Member]
Financial Instruments [Line Items]
Financial liabilities	$ 922	$ 1,082

Financial Instruments (Rollforw

Financial Instruments (Rollforward of Level 2 Investments) (Details) - Significant Other Observable Inputs (Level 2) [Member] $ in Thousands	3 Months Ended
	Mar. 31, 2021USD ($)
Financial Instruments [Line Items]
Balance	$ 1,082
Change in fair value of warrant liabilities	(160)
Balance	$ 922

Financial Instruments (Warrants

Financial Instruments (Warrants Outstanding) (Details)	3 Months Ended
	Mar. 31, 2021$ / sharesshares
Financial Instruments [Abstract]
Warrants, Balance | shares	10,582,119
Warrants, Exercised | shares
Warrants, Balance | shares	10,582,119
Weighted Average Exercise Price, Balance | $ / shares	$ 6.30
Weighted Average Exercise Price, Exercised | $ / shares
Weighted Average Exercise Price, Balance | $ / shares	$ 6.30

Inventories (Narrative) (Detail

Inventories (Narrative) (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Inventories [Abstract]
Reserve for expirable inventory	$ 2	$ 2.1

Inventories (Schedule of Invent

Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Inventories [Abstract]
Raw materials
Finished goods, net	22	102
Total inventories, net	$ 22	$ 102

Fixed Assets (Narrative) (Detai

Fixed Assets (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Fixed Assets [Abstract]
Depreciation and amortization of fixed assets	$ 337	$ 418

Fixed Assets (Fixed Assets) (De

Fixed Assets (Fixed Assets) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Fixed assets, gross	$ 19,974	$ 19,732
Less accumulated depreciation and amortization	(18,782)	(18,445)
Fixed assets, net	1,192	1,287
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Fixed assets, gross	10,398	10,398
Office Equipment and Furniture [Member]
Property, Plant and Equipment [Line Items]
Fixed assets, gross	1,363	1,363
Machinery and Laboratory Equipment [Member]
Property, Plant and Equipment [Line Items]
Fixed assets, gross	4,067	3,835
Software [Member]
Property, Plant and Equipment [Line Items]
Fixed assets, gross	$ 4,146	$ 4,136
Minimum [Member] | Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Useful Lives (Years)	4 years
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)	1 year
Maximum [Member] | Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Useful Lives (Years)	8 years
Maximum [Member] | Office Equipment and Furniture [Member]
Property, Plant and Equipment [Line Items]
Useful Lives (Years)	15 years
Maximum [Member] | Machinery and Laboratory Equipment [Member]
Property, Plant and Equipment [Line Items]
Useful Lives (Years)	15 years
Maximum [Member] | Software [Member]
Property, Plant and Equipment [Line Items]
Useful Lives (Years)	5 years

Share-based Compensation (Narra

Share-based Compensation (Narrative) (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Feb. 10, 2021	Apr. 01, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Price	$ 3.89		$ 4.15	$ 5.35	$ 12
Share-based compensation, options outstanding, weighted average remaining contractual term (years)	7 years 11 months 1 day		7 years 1 month 9 days
Share based compensation, options outstanding, aggregate intrinsic value	$ 5,002,000		$ 7,365,000
Options outstanding	24,424,067		16,000,685
Options outstanding, Exercise price	$ 4.83		$ 5.29
Common stock issued for option exercises, shares	286,900
Stock options exercised, intrinsic value	$ 369,000
Options Outstanding, Value, Exercised	$ 1,128,000	$ 284,000
Performance Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options vested	962,502		962,502
Common stock issued for option exercises, shares	0		0
Stock Appreciation Rights [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period for recognition of compensation expense	3 years
Share-based compensation, options outstanding, weighted average remaining contractual term (years)	5 years 3 months 18 days
Share based compensation, options outstanding, aggregate intrinsic value	$ 200,000		$ 500,000
Options outstanding	835,000		835,000
Options outstanding, Exercise price	$ 3.64		$ 3.64
Options vested	835,000		835,000
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			21,785,738
Additional units available for grant	6,861,201
Increase in authorized shares as a percentage of common stock issued	4.00%
Unrecognized compensation expense	$ 33,400,000		$ 11,900,000
Weighted average period for recognition of compensation expense	2 years 6 months		1 year 10 months 24 days
Stock compensation expense	$ 3,700,000	$ 2,000,000
2016 Equity Incentive Plan [Member] | Performance Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
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		$ 300,000
Options outstanding	1,290,000
Options outstanding, Exercise price	$ 4.06
Service period	3 years
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
Common stock issued under ESPP plan, shares	0	0
Stock compensation expense	$ 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	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Share-based Compensation [Abstract]
Options Outstanding, Units, Beginning Balance	16,000,685
Options Outstanding, Units, Granted	9,001,748	4,247,000
Options Outstanding, Units, Exercised	(286,900)
Options Outstanding, Units, Forfeited	(291,466)
Options Outstanding, Units, Ending Balance	24,424,067		16,000,685
Options Vested and Exercisable, Units	10,897,844
Options Outstanding, Weighted Average Exercise Price, Beginning Balance	$ 5.29
Options Outstanding, Weighted Average Exercise Price, Granted	3.99	$ 4.34
Options Outstanding, Weighted Average Exercise Price, Exercised	3.93
Options Outstanding, Weighted Average Exercise Price, Forfeited	4.53
Options Outstanding, Weighted Average Exercise Price, Ending Balance	4.83		$ 5.29
Options Vested and Exercisable, Weighted Average Exercise Price	$ 5.83
Options Outstanding, Weighted Average Remaining Contractual Term (years)	7 years 11 months 1 day		7 years 1 month 9 days
Options Vested and Exercisable, Weighted Average Remaining Contractual Term (years)	6 years 1 month 13 days
Options Outstanding, Aggregate Intrinsic Value	$ 5,002		$ 7,365
Options exercised, aggregate intrinsic value	369
Options Vested and Exercisable, Aggregate Intrinsic Value	$ 4,279

Share-based Compensation (Weigh

Share-based Compensation (Weighted-average Fair Value of Stock Option Awards Granted) (Details) - $ / shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted	9,001,748	4,247,000
Weighted average exercise price	$ 3.99	$ 4.34
Options To Purchase Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average fair value of grants	$ 2.87	$ 2.87
Expected life (years)		6 years
Expected dividend yield	0.00%	0.00%
Options To Purchase Common Stock [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	87.20%	75.46%
Risk-free interest rate	0.05%	0.82%
Expected life (years)	10 months 13 days
Options To Purchase Common Stock [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	127.92%	76.05%
Risk-free interest rate	0.96%	1.64%
Expected life (years)	6 years

Accrued Expenses (Short-term Ac

Accrued Expenses (Short-term Accrued Expenses) (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Accrued Expenses [Abstract]
Compensation and benefits	$ 2,219	$ 5,585
Research and development	3,625	4,183
Interest	1,091	20
Other	1,115	1,746
Total accrued expenses	$ 8,050	$ 11,534

Commitments and Contingencies (

Commitments and Contingencies (Narrative) (Details) $ in Millions	Mar. 31, 2021USD ($)
Commitments and Contingencies [Abstract]
Contingent milestone payments	$ 229.1

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2010	Dec. 31, 2020
Income Tax Disclosure [Line Items]
Change in deferred tax liability	$ 0	$ 0
Income tax expense (benefit)
Federal [Member]
Income Tax Disclosure [Line Items]
Net operating loss carryforwards				$ 408,400,000
Operating loss carryforwards with expiration			$ 291,100,000
Operating loss carryforwards, no expiration			117,300,000
State [Member]
Income Tax Disclosure [Line Items]
Net operating loss carryforwards				$ 349,600,000
Operating loss carryforwards with expiration			$ 349,600,000

Uncategorized Items - kdmn-2021

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