Kodiak Sciences Inc. Notes to Consolidated Financial Statements (in thousands, except share and per share data) 91 Risk i and Uncertai t nt i ie t s Global economic and business activities continue to face widespread macroeconomic uncertainties, including health epidemics, labor a shortages, bank failures, inflation and monetary suppl u y shifts f , recession risks and potential disrupt r ions from the geopolitical conflic f ts. The Company continues to actively monitor the impact of these macroeconomic factors on its financial condition, liquidity, operations, and workforce. The extent of the impact of these factors on the Company’s operational and financial performance, including its ability to execute its business strategies and initiatives in the expected timefra f me, will depend on future developments, which are uncertain and cannot be predicted; however, any continued or renewed disrupt r ion resulting from these factors could negatively impact the Company’s business. The Company’s future results of operations involve a number of risks and uncertainties common to clinical stage companies in the biotechnology industry. r The Company’s product candidates are in development and the Company operates in an environment of rapi a d change in technology and subs u tantial competition from other pharmaceutical and biotechnology companies. Factors that could affe f ct the Company’s future operating results and cause actual results to vary materially from expectations include, but are not limited to, uncertainty of results of clinical trials and reaching milestones, uncertainty of regulatory r approval of the Company’s potential drug r candidates, uncertainty of market acceptance of any of the Company’s product candidates that receive regulatory r approval, competition from new technological innovations, subs u titute products and larger companies, securing and protecting proprietary technology, strategic relationships and dependence on key individuals, contract manufact f ur t er and research organizations, and other suppl u iers. Products developed by the Company require approvals from the U.S. Food and Drug r Administration (“FDA”) or other international regulatory r agencies prior to commercial sales. There can be no assurance that any of the Company’s product candidates will receive the necessary r approvals. If the Company is denied approval, approval is delayed or the Company is unabl a e to maintain approvals, it could have a materially adverse impact on the Company. Even if the Company’s product development effo f rts are successful f , it is uncertain when, if ever, the Company will generate significant revenue from product sales. The Company expects to incur subs u tantial operating losses for the next several years and will need to obtain additional financing in order to complete clinical trials, launch and commercialize any product candidates for which it receives regulatory r approval. There can be no assurance that such financing will be availabl a e or will be on terms acceptable by the Company. Concentratio t n of Credit d Risk i Financial instruments that potentially subj u ect the Company to a concentration of credit risk consist of cash and cash equivalents as of December 31, 2023. As of December 31, 2022, the Company also had marketable securities. As of December 31, 2023 and 2022, cash, cash equivalents and marketable securities were invested primarily in money market funds and U.S. treasury securities through highly rated financial institutions. Investments are restricted, in accordance with the Company’s investment policy, to a concentration limit per issuer or sector. Cash and Cash Equivalentst The Company considers all highly liquid investments with stated maturities of three months or less at the date of purchase to be cash equivalents. Marketabl t el Securiti i es The Company may invest excess cash balances in marketable securities. The investments in marketable securities are classified as either held-to-maturity or availabl a e-for-sale based on facts and circumstances present at the time of purchase. Marketable securities with a remaining maturity date greater than one year are classified as non-current. The Company’s marketable securities can consist of U.S. treasury securities, commercial pape a r, and corporate bonds. Marketable debt securities that are availabl a e for sale, are carried at fair value with the unrealized gains and losses included in other comprehensive income (loss) as a component of stockholders’ equity until realized. Any premium or discount arising at purchase of marketable debt securities is amortized and/or accreted to interest income or expense over the lifef of the instrument. Realized gains and losses are determined using the specific f identification method and are included in other income (expense), net. Refer to the Credit Losses – Availabl a e-for-Sale Debt Securities section below.