Kaleido Biosciences (KLDO) 10-Q 2 Nov 20 2020 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Oct. 30, 2020
Cover [Abstract]
Entity Registrant Name	KALEIDO BIOSCIENCES, INC.
Document Type	10-Q
Amendment Flag	false
Trading Symbol	KLDO
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		35,982,105
Entity Central Index Key	0001751299
Entity Filer Category	Non-accelerated Filer
Document Period End Date	Sep. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth Company	true
Security Exchange Name	NASDAQ
Entity File Number	001-38822
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-3048279
Entity Address, Address Line One	65 Hayden Avenue
Entity Address, City or Town	Lexington
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02421
City Area Code	617
Local Phone Number	674-9000
Document Quarterly Report	true
Document Transition Report	false
Title of 12(b) Security	Common Stock, $0.001 Par Value
Entity Ex Transition Period	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 54,532	$ 71,241
Prepaid expenses and other current assets	7,900	2,038
Total current assets	62,432	73,279
Property and equipment, net	8,552	6,742
Restricted cash	2,161	2,285
Total assets	73,145	82,306
Current liabilities:
Accounts payable	3,835	2,016
Accrued expenses and other current liabilities	8,900	8,361
Current term debt, net of unamortized debt discount	1,263
Total current liabilities	13,998	10,377
Long term debt, net of unamortized debt discount	19,565	20,391
Other liabilities	3,681	2,655
Total liabilities	37,244	33,423
Commitments and contingencies (Note 7)
Stockholders’ equity:
Preferred stock, $0.001 par value, 10,000,000 and no shares authorized; no shares issued or outstanding	0	0
Common stock, $0.001 par value, 150,000,000 shares authorized; 35,829,506 and 30,129,096 shares issued; 35,829,506 and 30,127,846 shares outstanding at September 30, 2020 and December 31, 2019, respectively	35	30
Additional paid-in capital	290,029	241,412
Accumulated deficit	(254,163)	(192,559)
Total stockholders' equity	35,901	48,883
Total liabilities and stockholders’ equity	$ 73,145	$ 82,306

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) - Parenthetical - $ / shares	Sep. 30, 2020	Dec. 31, 2019
Preferred Stock
Preferred stock par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock authorized (in shares)	10,000,000	0
Preferred stock issued (in shares)	0	0
Preferred stock outstanding (in shares)	0	0
Common Stock
Common stock par value (in dollars per share)	$ 0.001	$ 0.001
Common stock authorized (in shares)	150,000,000	150,000,000
Common stock issued (in shares)	35,829,506	30,129,096
Common stock outstanding (in shares)	35,829,506	30,127,846

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenue:
Revenue from Contract with Customer, Product and Service [Extensible List]	kldo:CollaborationRevenueMember	kldo:CollaborationRevenueMember	kldo:CollaborationRevenueMember	kldo:CollaborationRevenueMember
Collaboration revenue	$ 482		$ 732
Operating expenses:
Research and development	15,659	$ 16,188	41,629	$ 50,145
General and administrative	7,201	5,930	18,677	17,544
Total operating expenses	22,860	22,118	60,306	67,689
Loss from operations	(22,378)	(22,118)	(59,574)	(67,689)
Other (expense) income:
Interest income	21	429	244	1,419
Interest expense	(713)	(258)	(2,084)	(776)
Change in fair value of warrant liability				252
Other expense	(61)	(14)	(190)	(25)
Total other (expense) income, net	(753)	157	(2,030)	870
Net loss	$ (23,131)	$ (21,961)	$ (61,604)	$ (66,819)
Net loss per share —basic and diluted	$ (0.65)	$ (0.74)	$ (1.89)	$ (2.76)
Weighted-average common shares outstanding —basic and diluted	35,554,128	29,856,233	32,605,592	24,224,359

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit
Beginning balance at Dec. 31, 2018	$ (96,244)	$ 6	$ 9,978	$ (106,228)
Beginning balance (in shares) at Dec. 31, 2018		5,786,911
Conversion of redeemable convertible preferred stock into common stock	153,226	$ 19	153,207
Conversion of redeemable convertible preferred stock into common stock (in shares)		18,517,386
Conversion of preferred stock warrant to common stock warrant upon closing of initial public offering	871		871
Issuance of common stock, net of issuance costs	66,589	$ 5	66,584
Issuance of common stock, net of issuance costs (in shares)		5,000,000
Exercise of common stock warrant (in shares)		51,015
Exercise of stock options	60		60
Exercise of stock options (in shares)		75,313
Stock-based compensation	2,528		2,528
Vesting of restricted shares	325		325
Vesting of restricted shares (in shares)		148,843
Net loss	(20,219)			(20,219)
Ending balance at Mar. 31, 2019	107,136	$ 30	233,553	(126,447)
Ending balance (in shares) at Mar. 31, 2019		29,579,468
Beginning balance at Dec. 31, 2018	(96,244)	$ 6	9,978	(106,228)
Beginning balance (in shares) at Dec. 31, 2018		5,786,911
Conversion of preferred stock warrant to common stock warrant upon closing of initial public offering	871
Vesting of restricted shares	672
Net loss	(66,819)
Ending balance at Sep. 30, 2019	66,040	$ 30	239,057	(173,047)
Ending balance (in shares) at Sep. 30, 2019		30,055,668
Beginning balance at Mar. 31, 2019	107,136	$ 30	233,553	(126,447)
Beginning balance (in shares) at Mar. 31, 2019		29,579,468
Issuance of common stock, net of issuance costs	(644)		(644)
Exercise of stock options	72		72
Exercise of stock options (in shares)		69,788
Stock-based compensation	2,400		2,400
Vesting of restricted shares	301		301
Vesting of restricted shares (in shares)		137,594
Net loss	(24,639)			(24,639)
Ending balance at Jun. 30, 2019	84,626	$ 30	235,682	(151,086)
Ending balance (in shares) at Jun. 30, 2019		29,786,850
Exercise of stock options	420		420
Exercise of stock options (in shares)		248,349
Stock-based compensation	2,909		2,909
Vesting of restricted shares	46		46
Vesting of restricted shares (in shares)		20,469
Net loss	(21,961)			(21,961)
Ending balance at Sep. 30, 2019	66,040	$ 30	239,057	(173,047)
Ending balance (in shares) at Sep. 30, 2019		30,055,668
Beginning balance at Dec. 31, 2019	48,883	$ 30	241,412	(192,559)
Beginning balance (in shares) at Dec. 31, 2019		30,127,846
Exercise of stock options	1,561		1,561
Exercise of stock options (in shares)		334,444
Stock-based compensation	2,725		2,725
Vesting of restricted shares	3		3
Vesting of restricted shares (in shares)		1,250
Net loss	(19,551)			(19,551)
Ending balance at Mar. 31, 2020	33,621	$ 30	245,701	(212,110)
Ending balance (in shares) at Mar. 31, 2020		30,463,540
Beginning balance at Dec. 31, 2019	48,883	$ 30	241,412	(192,559)
Beginning balance (in shares) at Dec. 31, 2019		30,127,846
Vesting of restricted shares	3
Net loss	(61,604)
Ending balance at Sep. 30, 2020	35,901	$ 35	290,029	(254,163)
Ending balance (in shares) at Sep. 30, 2020		35,829,506
Beginning balance at Mar. 31, 2020	33,621	$ 30	245,701	(212,110)
Beginning balance (in shares) at Mar. 31, 2020		30,463,540
Issuance of common stock, net of issuance costs	33,187	$ 5	33,182
Issuance of common stock, net of issuance costs (in shares)		4,750,000
Exercise of stock options	620		620
Exercise of stock options (in shares)		143,089
Stock-based compensation	2,816		2,816
Net loss	(18,922)			(18,922)
Ending balance at Jun. 30, 2020	51,322	$ 35	282,319	(231,032)
Ending balance (in shares) at Jun. 30, 2020		35,356,629
Issuance of common stock, net of issuance costs	3,038		3,038
Issuance of common stock, net of issuance costs (in shares)		399,800
Exercise of stock options	311		311
Exercise of stock options (in shares)		73,077
Stock-based compensation	4,361		4,361
Net loss	(23,131)			(23,131)
Ending balance at Sep. 30, 2020	$ 35,901	$ 35	$ 290,029	$ (254,163)
Ending balance (in shares) at Sep. 30, 2020		35,829,506

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) - Parenthetical - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Jun. 30, 2019	Mar. 31, 2019
Statement Of Stockholders Equity [Abstract]
Common stock, issuance costs	$ 166	$ 306	$ 644	$ 8,411

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Operating activities:
Net loss	$ (61,604)	$ (66,819)
Reconciliation of net loss to net cash used in operating activities:
Depreciation and amortization	1,260	964
Equity-based compensation	9,902	7,837
Amortization of debt discount	437
Non-cash interest expense	175	37
Loss on disposal of fixed assets	166
Change in fair value of warrant liability		(252)
Changes in:
Prepaid expenses and other assets	(3,961)	(1,660)
Accounts payable	1,558	(1,137)
Accrued expense and other liabilities	1,846	881
Net cash used in operating activities	(50,221)	(60,149)
Investing activities:
Purchase of property and equipment	(3,362)	(2,588)
Net cash and restricted cash used in investing activities	(3,362)	(2,588)
Financing activities:
Proceeds from exercise of stock options	2,494	538
Payments related to capital lease	(68)	(69)
Issuance of common stock, net of issuance costs	34,324	67,761
Settlement of derivative liability		(300)
Net cash provided by financing activities	36,750	67,930
Net (decrease) increase in cash, cash equivalents, and restricted cash	(16,833)	5,193
Cash, cash equivalents, and restricted cash, beginning of period	73,526	78,266
Cash, cash equivalents, and restricted cash, end of period	56,693	83,459
Supplemental cash flow information
Interest paid	1,393	739
Supplemental disclosure of non-cash investing and financing activities
Purchase of property and equipment in accounts payable and accrued expenses	260	99
Vesting of restricted shares	3	672
Reclassification of warrants to additional paid-in capital		871
Conversion of preferred stock to common stock upon closing of the initial public offering		153,226
Settlement from Exercise of Stock Options		14
Settlement from Proceeds of issuance of common stock	$ 1,900
Other Assets, non-cash		$ 112

Nature of the Business, Basis o

Nature of the Business, Basis of Presentation, and Going Concern	9 Months Ended
	Sep. 30, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Nature of the Business, Basis of Presentation, and Going Concern	1. Nature of the Business, Basis of Presentation, and Going Concern Kaleido Biosciences, Inc. and its wholly owned subsidiaries (collectively, the “Company”) is a clinical-stage healthcare company that was incorporated in Delaware on January 27, 2015 and has a principal place of business in Lexington, Massachusetts. The Company was formed to use its differentiated, chemistry-driven approach to leverage the potential of the microbiome organ to treat disease and improve human health. The Company is subject to risks common to companies in the biotechnology industry, including, but not limited to, successful development of technology, obtaining additional funding, protection of proprietary technology, compliance with government regulations, risks of failure of preclinical studies (including ex vivo On March 4, 2019, the Company completed its initial public offering (the "IPO"), pursuant to which it issued and sold 5,000,000 shares of common stock. The aggregate net proceeds received by the Company from the IPO were $69,750, after deducting underwriting discounts and commissions, but before deducting offering costs payable by the Company, which totaled $3,805. Upon the closing of the IPO, all outstanding shares of convertible preferred stock converted into 18,517,386 shares of common stock. On June 4, 2020, the Company completed a public offering (the “Offering”), pursuant to which it issued and sold 4,750,000 shares of the common stock. The aggregate net proceeds received by the Company from the Offering were $33,182. On July 1, 2020, 185,000 shares were exercised under the Underwriters overallotment option for net proceeds of $1,260. On August 4, 2020, the Company entered into an Equity Distribution Agreement (the “Sales Agreement”) with a sales agent for the sale of up to $50,000 of the Company’s shares of common stock, from time to time in an at-the-market public offering (the “ATM”). The sales agent is entitled to compensation at a fixed commission rate of 3.0% of the gross proceeds from the sale of the Company’s common stock pursuant to the Sales Agreement. During the three-month period ended September 30, 2020, the Company sold 214,800 shares of its common stock under the ATM which resulted in aggregate net proceeds of $1,900, which was received on October 2, 2020 and is included in other current assets at September 30, 2020. As of September 30, 2020, there was $48,100 available under the ATM. The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As of September 30, 2020, the Company had an accumulated deficit of $254,163. The Company expects to continue to generate operating losses and use cash in operations in the foreseeable future. As of September 30, 2020, the Company had cash and cash equivalents of $54,532, and management expects that the cash and cash equivalents at September 30, 2020 will be sufficient to fund its operating expenses and capital expenditure requirements into the second half of 2021. Based on its recurring losses from operations incurred since inception, expectation of continuing operating losses for the foreseeable future, and need to raise additional capital to finance its future operations, the Company has concluded that there is substantial doubt regarding the Company’s ability to continue as a going concern within one year after the date that these consolidated financial statements are issued. These financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company will require substantial additional capital to fund its research and development and ongoing operating expenses. These capital requirements are expected to be funded through debt and equity offerings as well as possible strategic collaborations with other companies. If the Company is unable to raise additional funds when needed, it may be required to delay, reduce or eliminate its product development or future commercialization efforts, or grant rights to develop and market product candidates that the Company would otherwise prefer to develop and market itself. While there can be no assurance the Company will be able to successfully reduce operating expenses or raise additional capital, management believes the historical success in managing cash flows and obtaining capital will continue in the foreseeable future. A novel strain of coronavirus (COVID-19) was first identified in late 2019, and subsequently declared a global pandemic by the World Health Organization on March 11, 2020. As a result of the outbreak, many companies have experienced disruptions in their operations and in markets served. The Company has instituted some and may take additional temporary precautionary measures intended to help minimize the risk of the virus to its employees, including implementing a work-at-home policy, providing flexibility for working parents and suspending all business-related travel. The full extent of the future impacts of COVID-19 on our operations, including the timing and ability of the Company to complete certain clinical trials and other efforts to advance the development of our MMTs, is uncertain.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Unaudited interim financial information The consolidated financial statements of the Company included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted from this report, as is permitted by such rules and regulations. Accordingly, these consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s annual report on Form 10-K filed with the SEC on March 2, 2020. All intercompany transactions and balances of the subsidiaries have been eliminated in consolidation. In the opinion of management, the information furnished reflects all adjustments, all of which are of a normal and recurring nature, necessary for a fair representation of the results for the reported interim periods. Use of Estimates The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. Collaboration Revenue The Company analyzes its collaboration arrangements to assess whether they are within the scope of ASC Topic 808, Collaborative Arrangements The Company recognizes revenue after applying the following five steps: 1) Identification of the contract, or contracts, with a customer, 2) Identification of the performance obligations in the contract, including whether they are distinct within the context of the contract 3) Determination of the transaction price, including the constraint on variable consideration 4) Allocation of the transaction price to the performance obligations in the contract 5) Recognition of revenue when, or as, performance obligations are satisfied If a contract is determined to be within the scope of ASC 606 at inception, the Company assesses the goods or services promised within such contract, determines which of those goods and services are performance obligations, and assesses whether each promised good or service is distinct. Promised goods and services are considered distinct provided that: (i) the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (that is, the good or service is capable of being distinct) and (ii) the entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (that is, the promise to transfer the good or service is distinct within the context of the contract). In assessing whether a promised good or service is distinct, the Company considers factors such as the research, manufacturing and commercialization capabilities of the collaboration partner and the availability of the associated expertise in the general marketplace. The Company also considers the intended benefit of the contract in assessing whether a promised good or service is separately identifiable from other promises in the contract. If a promised good or service is not distinct, an entity is required to combine that good or service with other promised goods or services until it identifies a bundle of goods or services that is distinct. The Company may provide options to additional goods or services in such arrangements exercisable at a customer’s discretion. The Company assesses if these options provide a material right to the customer and if so, they are considered performance obligations. The identification of material rights requires judgments related to the determination of the value of the underlying good and services to the option exercise price. The Company determines transaction price based on the amount of consideration the Company expects to receive for transferring the promised goods or services in the contract. Consideration may be fixed, variable, or a combination of both. The Company then allocates the transaction price to each performance obligation based on the relative standalone selling prices (“SSP”). SSP is determined at contract inception and is not updated to reflect changes between contract inception and when the performance obligations are satisfied. In developing the SSP for a performance obligation, the Company considers applicable market conditions and relevant entity-specific factors, including factors that were contemplated in negotiating the agreement with the customer and estimated costs. If the consideration promised in a contract includes a variable amount, the Company estimates the amount of consideration to which it will be entitled by using the expected value method or the most likely amount method. The Company includes the unconstrained amount of estimated variable consideration in the transaction price. The amount included in the transaction price is constrained to the amount for which it is probable that a significant reversal of cumulative revenue recognized will not occur. At the end of each subsequent reporting period, the Company re-evaluates the estimated variable consideration included in the transaction price and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied, either at a point in time or over time, and if over time recognition is based on the use of an output or input method. Amounts received prior to satisfying the revenue recognition criteria are recorded as deferred revenue in the Company’s condensed consolidated balance sheets. If the related performance obligation is expected to be satisfied within the next twelve months this will be classified in current liabilities. Amounts recognized as revenue prior to receipt are recorded as other current assets in the Company's balance sheets. If the Company expects to have an unconditional right to receive the consideration in the next twelve months, this will be classified in other current assets. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”), which applies to all leases and will require the Company to record most leases on the balance sheet. The Company will use a modified retrospective approach of adoption for ASU 2016-02. As an emerging growth company, this standard is required to be adopted on January 1, 2022, and the Company is evaluating the impact that the adoption of ASU 2016-02 will have on its consolidated financial statements. The Company expects to recognize a significant lease obligation and right to use asset upon adoption.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurements	3. Fair Value Measurements The following tables set forth by level, within the fair value hierarchy, the assets carried at fair value on a recurring basis: Fair Value Measurements as of September 30, 2020 Level 1 Level 2 Level 3 Total Assets: Money market funds included within cash and cash equivalents $ 45,407 — — $ 45,407 Total $ 45,407 — — $ 45,407 Fair Value Measurements as of December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Money market funds included within cash and cash equivalents $ 25,304 — — $ 25,304 Total $ 25,304 — — $ 25,304 The fair value of money market funds was measured by the Company based on quoted market prices. Financial Instruments Not Recorded at Fair Value – The carrying value of cash, cash equivalents, restricted cash, accounts payable and accrued expenses that are reported on the condensed consolidated balance sheets approximate their fair value due to the short-term nature of these assets and liabilities. The carrying value of the long-term debt approximates fair value as evidenced by the recent refinancings.

Property and Equipment, net

Property and Equipment, net	9 Months Ended
	Sep. 30, 2020
Property Plant And Equipment [Abstract]
Property and Equipment, net	4. Property and Equipment, net Property and equipment consist of the following: As of September 30, 2020 December 31, 2019 Laboratory equipment $ 6,750 $ 4,526 Office and computer equipment 1,590 1,418 Leasehold improvements 1,862 687 Construction in process 1,280 2,650 Property and equipment – at cost 11,482 9,281 Less accumulated depreciation and amortization (2,930 ) (2,539 ) Property and equipment – net $ 8,552 $ 6,742 Depreciation and amortization expense for the three months ended September 30, 2020 and 2019 was $503 and $340, respectively. Depreciation and amortization expense for nine months ended September 30, 2020 and 2019 was $1,260 and $964, respectively.

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	9 Months Ended
	Sep. 30, 2020
Payables And Accruals [Abstract]
Accrued Expenses and Other Current Liabilities	5. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: As of September 30, 2020 December 31, 2019 Payroll and benefits $ 2,659 $ 2,426 Consulting service 313 230 Legal service 156 171 Research and development 4,795 4,259 Capital lease payable – short term — 68 Interest expense 175 — Deferred revenue 107 — Other 695 1,207 Accrued expenses and other current liabilities $ 8,900 $ 8,361

Debt Financing

Debt Financing	9 Months Ended
	Sep. 30, 2020
Debt Disclosure [Abstract]
Debt Financing	6. Debt Financing On December 31, 2019, the Company entered into a Credit Agreement (the “Credit Agreement”) with Hercules Capital, Inc. (the “Lender”). Under the Credit Agreement, the Company borrowed $22,500, and the Company has the option to draw down an additional $12,500 if certain milestones and conditions are met. The Company incurred fees of $410, which was paid to the Lender on the closing date. These amounts were recorded as a debt discount and are being amortized as interest expense using the effective interest method over the life of the Credit Agreement. The Credit Agreement also includes an end of term charge equal to 7.55% of the aggregate principal amount of all advances. The end of term charge, totaling $1,698 at September 30, 2020, was recognized as a debt discount and is reflected as a reduction in the carrying value of the debt and recorded in other long-term liabilities. The debt discount created by the end of term charge is being accreted and will be recognized as additional interest expense over the term of the Credit Agreement using the effective interest method. The Credit Agreement contains customary representations and warranties, events of default and affirmative and negative covenants, including, among others, covenants that limit or restrict the Company’s ability to, among other things, incur additional indebtedness, merge or consolidate, make acquisitions, pay dividends or other distributions or repurchase equity, make investments, dispose of assets and enter into certain transactions with affiliates, in each case subject to certain exceptions. As security for its obligations under the Credit Agreement, the Company granted the Lender a first priority security interest on substantially all of the Company’s assets (other than intellectual property), and subject to certain exceptions. The outstanding principal under the Credit Agreement has a 48-month term with interest only payments for the first 15 months, which period can be extended to up to 24 months, depending on the achievement of certain performance milestones. The outstanding principal bears interest at a rate equal to the greater of (i) 8.95% plus the prime rate minus 4.75% and (ii) 8.95%. The Credit Agreement includes mandatory prepayment provisions that require prepayment upon the occurrence of a change in control event. On June 15, 2020, the Company entered into a Second Amendment to Loan and Security Agreement (the “Amendment”). The Amendment was entered into for the primary purpose of amending the Credit Agreement as follows: (i) the second tranche of the term loan (the “Term Loan”) is terminated; (ii) amounts available under Tranche 3 of the Term Loan is increased to $12,500 from the previous $7,500 availability amount and its availability period is extended through December 15, 2021, subject to future approval by the Agent’s investment committee; (iii) the interest-only period is extended through July 31, 2021; (iv) the interest rate on borrowings is increased by 0.4%, such that the per annum interest rate on outstanding borrowings will be the greater of (a) 9.35% and (b) 9.35% plus the Wall Street Journal prime rate minus 3.25%; (v) the variable amount and duration of a minimum cash covenant in the Agreement are amended. The Amendment has been accounted for as a modification and the Company incurred fees of $79, which was paid to the lender on the closing date and were recorded as a debt discount, which will be amortized as interest expense using the effective interest method. Future principal payments under the Credit Agreement as of September 30, 2020 are as follows (in thousands): 2021 5,454 2022 8,182 2023 8,182 2024 682 Total future principal payments 22,500 Less unamortized debt discount 1,672 Total balance $ 20,828

Commitments and contingencies

Commitments and contingencies	9 Months Ended
	Sep. 30, 2020
Commitments And Contingencies Disclosure [Abstract]
Commitments and contingencies	7. Commitments and contingencies Facilities Leases In March 2018, the Company entered into a non-cancelable ten-year Rent expense for the three months ended September 30, 2020 and 2019 totaled $1,623 and $1,023, respectively. Rent expense for the nine months ended September 30, 2020 and 2019 totaled $5,273 and $3,068. Future minimum lease payments under the non-cancelable operating leases consisted of the following as of September 30, 2020: Year Ending December 31, 2020 $ 1,494 2021 6,026 2022 6,207 2023 6,393 2024 6,584 Thereafter 32,284 $ 58,988

Equity awards

Equity awards	9 Months Ended
	Sep. 30, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Equity awards	8. Equity awards On July 20, 2020, the Company entered into an amendment to the employment agreement with the former CEO, which amended an existing employment agreement and provided for changes in the term of service and compensation under the agreement. The outstanding options and restricted stock units held by the former CEO were modified to accelerate certain vesting provisions and the period of exercisability. As a result, the Company recorded stock-based compensation expense of $1,926 related to the incremental fair value of the modified awards during the three and nine-months ended September 30, 2020.

Net Loss per Share

Net Loss per Share	9 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
Net Loss per Share	9. Net Loss per Share Basic and diluted net loss per common share is determined by dividing net loss by the weighted-average common shares outstanding during the period. The Company has computed diluted net loss per common share after giving consideration to all potentially dilutive common shares, including options to purchase common stock and unvested restricted common stock, outstanding during the period determined using the treasury stock method, except where the effect of including such securities would be anti-dilutive. Because the Company has reported net losses since inception, these potential common shares have been anti-dilutive and therefore basic and diluted net loss per share have been equivalent. The following table presents securities that have been excluded from the computations of diluted weighted-average shares outstanding as they would be anti-dilutive: As of September 30, 2020 2019 Options to purchase common stock 6,518,338 6,622,370 Unvested restricted common stock — 42,187 Restricted stock units 235,767 — 6,754,105 6,664,557

Revenue

Revenue	9 Months Ended
	Sep. 30, 2020
Revenue From Contract With Customer [Abstract]
Revenue	10. Revenue In December 2019, the Company entered into a research collaboration agreement with Janssen’s World Without Disease Accelerator (“Janssen”), part of the Janssen Pharmaceutical Companies of Johnson & Johnson to explore the potential for MMT to prevent the onset of childhood allergy and other atopic, immune and metabolic conditions by driving specific microbiome features which support an appropriate maturation of the infant immune system. Under the terms of the Janssen agreement, Janssen will fund research and development activities to identify MMTs to prevent food allergy in infants. The collaboration includes three milestones of research and development with deliverables due to Janssen at end of the milestone at which point Janssen will have 60 days to decide to proceed with the next milestone. The Company assessed the Janssen collaboration agreement in accordance with ASC 808 and ASC 606 and concluded that that it represents a contract with a customer and is within the scope of ASC 606. The promised goods and services represent one combined performance obligation and the entire transaction price will be allocated to that single combined performance obligation. In addition, the Company concluded the right to proceed with the following milestones does not provide any discounts to Janssen if it decides to proceed with the next milestones. Each milestone is considered a separate contract and will Under the Janssen collaboration agreement, Janssen is obligated to reimburse the Company for the costs incurred under an agreed upon research plan. Costs incurred are billed by the Company to Janssen at completion of each milestone. The Company elected to recognize revenue as a percentage of completion using total estimated hours to be incurred throughout each milestone. of September 30, 2020, the Company recorded $107 as deferred revenue within current liabilities on the Company’s condensed consolidated balance sheets related to the Janssen collaboration agreement

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Consolidation	All intercompany transactions and balances of the subsidiaries have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates.
Collaboration Revenue	Collaboration Revenue The Company analyzes its collaboration arrangements to assess whether they are within the scope of ASC Topic 808, Collaborative Arrangements The Company recognizes revenue after applying the following five steps: 1) Identification of the contract, or contracts, with a customer, 2) Identification of the performance obligations in the contract, including whether they are distinct within the context of the contract 3) Determination of the transaction price, including the constraint on variable consideration 4) Allocation of the transaction price to the performance obligations in the contract 5) Recognition of revenue when, or as, performance obligations are satisfied If a contract is determined to be within the scope of ASC 606 at inception, the Company assesses the goods or services promised within such contract, determines which of those goods and services are performance obligations, and assesses whether each promised good or service is distinct. Promised goods and services are considered distinct provided that: (i) the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (that is, the good or service is capable of being distinct) and (ii) the entity’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (that is, the promise to transfer the good or service is distinct within the context of the contract). In assessing whether a promised good or service is distinct, the Company considers factors such as the research, manufacturing and commercialization capabilities of the collaboration partner and the availability of the associated expertise in the general marketplace. The Company also considers the intended benefit of the contract in assessing whether a promised good or service is separately identifiable from other promises in the contract. If a promised good or service is not distinct, an entity is required to combine that good or service with other promised goods or services until it identifies a bundle of goods or services that is distinct. The Company may provide options to additional goods or services in such arrangements exercisable at a customer’s discretion. The Company assesses if these options provide a material right to the customer and if so, they are considered performance obligations. The identification of material rights requires judgments related to the determination of the value of the underlying good and services to the option exercise price. The Company determines transaction price based on the amount of consideration the Company expects to receive for transferring the promised goods or services in the contract. Consideration may be fixed, variable, or a combination of both. The Company then allocates the transaction price to each performance obligation based on the relative standalone selling prices (“SSP”). SSP is determined at contract inception and is not updated to reflect changes between contract inception and when the performance obligations are satisfied. In developing the SSP for a performance obligation, the Company considers applicable market conditions and relevant entity-specific factors, including factors that were contemplated in negotiating the agreement with the customer and estimated costs. If the consideration promised in a contract includes a variable amount, the Company estimates the amount of consideration to which it will be entitled by using the expected value method or the most likely amount method. The Company includes the unconstrained amount of estimated variable consideration in the transaction price. The amount included in the transaction price is constrained to the amount for which it is probable that a significant reversal of cumulative revenue recognized will not occur. At the end of each subsequent reporting period, the Company re-evaluates the estimated variable consideration included in the transaction price and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied, either at a point in time or over time, and if over time recognition is based on the use of an output or input method. Amounts received prior to satisfying the revenue recognition criteria are recorded as deferred revenue in the Company’s condensed consolidated balance sheets. If the related performance obligation is expected to be satisfied within the next twelve months this will be classified in current liabilities. Amounts recognized as revenue prior to receipt are recorded as other current assets in the Company's balance sheets. If the Company expects to have an unconditional right to receive the consideration in the next twelve months, this will be classified in other current assets.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”), which applies to all leases and will require the Company to record most leases on the balance sheet. The Company will use a modified retrospective approach of adoption for ASU 2016-02. As an emerging growth company, this standard is required to be adopted on January 1, 2022, and the Company is evaluating the impact that the adoption of ASU 2016-02 will have on its consolidated financial statements. The Company expects to recognize a significant lease obligation and right to use asset upon adoption.
Net Loss per Share	Basic and diluted net loss per common share is determined by dividing net loss by the weighted-average common shares outstanding during the period. The Company has computed diluted net loss per common share after giving consideration to all potentially dilutive common shares, including options to purchase common stock and unvested restricted common stock, outstanding during the period determined using the treasury stock method, except where the effect of including such securities would be anti-dilutive. Because the Company has reported net losses since inception, these potential common shares have been anti-dilutive and therefore basic and diluted net loss per share have been equivalent.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Schedule of Assets Carried at Fair Value on a Recurring Basis	The following tables set forth by level, within the fair value hierarchy, the assets carried at fair value on a recurring basis: Fair Value Measurements as of September 30, 2020 Level 1 Level 2 Level 3 Total Assets: Money market funds included within cash and cash equivalents $ 45,407 — — $ 45,407 Total $ 45,407 — — $ 45,407 Fair Value Measurements as of December 31, 2019 Level 1 Level 2 Level 3 Total Assets: Money market funds included within cash and cash equivalents $ 25,304 — — $ 25,304 Total $ 25,304 — — $ 25,304

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	9 Months Ended
	Sep. 30, 2020
Property Plant And Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment consist of the following: As of September 30, 2020 December 31, 2019 Laboratory equipment $ 6,750 $ 4,526 Office and computer equipment 1,590 1,418 Leasehold improvements 1,862 687 Construction in process 1,280 2,650 Property and equipment – at cost 11,482 9,281 Less accumulated depreciation and amortization (2,930 ) (2,539 ) Property and equipment – net $ 8,552 $ 6,742

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	9 Months Ended
	Sep. 30, 2020
Payables And Accruals [Abstract]
Schedule of Accrued Expenses and Other Current Liabilities	Accrued expenses and other current liabilities consisted of the following: As of September 30, 2020 December 31, 2019 Payroll and benefits $ 2,659 $ 2,426 Consulting service 313 230 Legal service 156 171 Research and development 4,795 4,259 Capital lease payable – short term — 68 Interest expense 175 — Deferred revenue 107 — Other 695 1,207 Accrued expenses and other current liabilities $ 8,900 $ 8,361

Debt Financing (Tables)

Debt Financing (Tables)	9 Months Ended
	Sep. 30, 2020
Debt Disclosure [Abstract]
Summary of Future Principal Payments	Future principal payments under the Credit Agreement as of September 30, 2020 are as follows (in thousands): 2021 5,454 2022 8,182 2023 8,182 2024 682 Total future principal payments 22,500 Less unamortized debt discount 1,672 Total balance $ 20,828

Commitments and contingencies (

Commitments and contingencies (Tables)	9 Months Ended
	Sep. 30, 2020
Commitments And Contingencies Disclosure [Abstract]
Future Minimum Lease Payments	Future minimum lease payments under the non-cancelable operating leases consisted of the following as of September 30, 2020: Year Ending December 31, 2020 $ 1,494 2021 6,026 2022 6,207 2023 6,393 2024 6,584 Thereafter 32,284 $ 58,988

Net Loss per Share (Tables)

Net Loss per Share (Tables)	9 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
Schedule of Securities Excluded from Computation of Diluted Weighted-Average Shares Outstanding	The following table presents securities that have been excluded from the computations of diluted weighted-average shares outstanding as they would be anti-dilutive: As of September 30, 2020 2019 Options to purchase common stock 6,518,338 6,622,370 Unvested restricted common stock — 42,187 Restricted stock units 235,767 — 6,754,105 6,664,557

Nature of the Business, Basis_2

Nature of the Business, Basis of Presentation, and Going Concern (Details) - USD ($)	Jul. 01, 2020	Jun. 04, 2020	Mar. 04, 2019	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019	Aug. 04, 2020	Dec. 31, 2019
Conversion of Stock [Line Items]
Proceeds from initial public offering										$ 34,324,000	$ 67,761,000
Net proceeds from exercise of shares										2,494,000	$ 538,000
Common stock, value, issued under the ATM sales agreement				$ 35,000						$ 35,000			$ 30,000
Common stock issued (in shares)				35,829,506						35,829,506			30,129,096
Accumulated deficit				$ (254,163,000)						$ (254,163,000)			$ (192,559,000)
Cash and cash equivalents				$ 54,532,000						$ 54,532,000			$ 71,241,000
IPO
Conversion of Stock [Line Items]
Issuance of common stock (in shares)			5,000,000
Proceeds from initial public offering			$ 69,750,000
Offering costs payable			$ 3,805,000
Public Offering
Conversion of Stock [Line Items]
Issuance of common stock (in shares)		4,750,000
Net proceeds from offering		$ 33,182,000
Over-Allotment Option
Conversion of Stock [Line Items]
Number of shares exercised	185,000
Net proceeds from exercise of shares	$ 1,260,000
At-The-Market Sales Agreement
Conversion of Stock [Line Items]
Percentage of gross proceeds payable as commission				3.00%
Common stock issued (in shares)				214,800						214,800
Net proceeds from the sale of common stock				$ 1,900,000
Common stock, value, available under the ATM sales agreement				$ 48,100,000						$ 48,100,000
At-The-Market Sales Agreement | Maximum
Conversion of Stock [Line Items]
Common stock, value, issued under the ATM sales agreement												$ 50,000,000
Common Stock
Conversion of Stock [Line Items]
Conversion of stock, shares converted (in shares)			18,517,386						18,517,386
Number of shares exercised				73,077	143,089	334,444	248,349	69,788	75,313

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Assets Carried at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Assets, Fair Value Disclosure [Abstract]
Assets, fair value disclosure	$ 45,407	$ 25,304
Money market funds included within cash and cash equivalents
Assets, Fair Value Disclosure [Abstract]
Cash and cash equivalents fair value disclosure	45,407	25,304
Level 1
Assets, Fair Value Disclosure [Abstract]
Assets, fair value disclosure	45,407	25,304
Level 1 | Money market funds included within cash and cash equivalents
Assets, Fair Value Disclosure [Abstract]
Cash and cash equivalents fair value disclosure	$ 45,407	$ 25,304

Property and Equipment, net (De

Property and Equipment, net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Property Plant And Equipment [Line Items]
Property and equipment – at cost	$ 11,482		$ 11,482		$ 9,281
Less accumulated depreciation and amortization	(2,930)		(2,930)		(2,539)
Property and equipment – net	8,552		8,552		6,742
Depreciation and amortization	503	$ 340	1,260	$ 964
Laboratory equipment
Property Plant And Equipment [Line Items]
Property and equipment – at cost	6,750		6,750		4,526
Office and computer equipment
Property Plant And Equipment [Line Items]
Property and equipment – at cost	1,590		1,590		1,418
Leasehold improvements
Property Plant And Equipment [Line Items]
Property and equipment – at cost	1,862		1,862		687
Construction in process
Property Plant And Equipment [Line Items]
Property and equipment – at cost	$ 1,280		$ 1,280		$ 2,650

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Payables And Accruals [Abstract]
Payroll and benefits	$ 2,659	$ 2,426
Consulting service	313	230
Legal service	156	171
Research and development	4,795	4,259
Capital lease payable – short term		68
Interest expense	175
Deferred revenue	107
Other	695	1,207
Accrued expenses and other current liabilities	$ 8,900	$ 8,361

Debt Financing - Narrative (Det

Debt Financing - Narrative (Details) - USD ($)	Sep. 30, 2020	Jun. 15, 2020	Dec. 31, 2019	Sep. 30, 2020
2019 Credit Agreement
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity			$ 22,500,000
Option to draw down an additional amount			12,500,000
Line of credit facility fees amount payable			$ 410,000
Credit agreement end of term charge percentage			7.55%
debt discount	$ 1,698,000
Credit agreement, expiration period			48 months
Credit agreement interest payment period			15 months
Credit agreement interest payment extension period			24 months
2019 Credit Agreement | Line of Credit
Line of Credit Facility [Line Items]
Debt instrument effective percentage interest rate			8.95%
Debt instrument, basis spread on variable rate			4.75%
Debt instrument, description of variable rate basis				The outstanding principal bears interest at a rate equal to the greater of (i) 8.95% plus the prime rate minus 4.75% and (ii) 8.95%.
Tranche 3 | Term Loan
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity		$ 12,500,000
Current borrowing capacity		$ 7,500,000
Debt instrument, maturity date		Dec. 15, 2021
Debt instrument, interest maturity date		Jul. 31, 2021
2020 Amendment | Term Loan
Line of Credit Facility [Line Items]
Line of credit facility fees amount payable		$ 79,000
Debt instrument, basis spread on variable rate		9.35%
Debt instrument, description of variable rate basis				9.35% plus the Wall Street Journal prime rate minus 3.25%
2020 Amendment | Term Loan | Maximum
Line of Credit Facility [Line Items]
Debt instrument effective percentage interest rate		0.40%

Debt Financing - Summary of Fut

Debt Financing - Summary of Future Principal Payments (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Line of Credit Facility [Line Items]
Long term debt, net of unamortized debt discount	$ 19,565	$ 20,391
2019 Credit Agreement
Line of Credit Facility [Line Items]
2021	5,454
2022	8,182
2023	8,182
2024	682
Total future principal payments	22,500
Less unamortized debt discount	1,672
Long term debt, net of unamortized debt discount	$ 20,828

Commitments and contingencies -

Commitments and contingencies - Facilities Leases (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Mar. 31, 2018
Commitments And Contingencies Disclosure [Abstract]
Operating lease, term of contract	10 years					10 years
Lease expiration	2029
Rent expense		$ 1,623	$ 1,023	$ 5,273	$ 3,068

Commitments and contingencies_2

Commitments and contingencies - Future Minimum Lease Payments (Details) $ in Thousands	Sep. 30, 2020USD ($)
Commitments And Contingencies Disclosure [Abstract]
2020	$ 1,494
2021	6,026
2022	6,207
2023	6,393
2024	6,584
Thereafter	32,284
Total future minimum lease payments	$ 58,988

Equity awards (Details)

Equity awards (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020
Share Based Compensation Allocation And Classification In Financial Statements [Abstract]
Stock-based compensation expense	$ 1,926	$ 1,926

Net Loss per Share (Details)

Net Loss per Share (Details) - shares	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities	6,754,105	6,664,557
Options to purchase common stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities	6,518,338	6,622,370
Unvested restricted common stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities		42,187
Restricted stock units
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities	235,767

Revenue (Details)

Revenue (Details) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Dec. 31, 2019Milestone	Sep. 30, 2020USD ($)	Sep. 30, 2019	Sep. 30, 2020USD ($)	Sep. 30, 2019
Disaggregation Of Revenue [Line Items]
Revenue from Contract with Customer, Product and Service [Extensible List]		kldo:CollaborationRevenueMember	kldo:CollaborationRevenueMember	kldo:CollaborationRevenueMember	kldo:CollaborationRevenueMember
Collaboration revenue		$ 482		$ 732
Deferred revenue		$ 107		$ 107
Expected research term of arrangement				15 months
Janssen | Collaboration Agreement
Disaggregation Of Revenue [Line Items]
Number of collaboration milestones | Milestone	3
Number of days which decide to next milestone	60 days