90 Kodiak Sciences Inc. Notes to Consolidated Financial Statements (in thousands, except share and per share data) 1. The Company Kodiak Sciences Inc. (the “Company”) is a clinical stage biopharmaceutical company committed to researching, developing and commercializing transfor f mative therapeutics to treat high prevalence retinal diseases. The Company devotes subs u tantially all of its resources to the research and development of its product platforms and product candidates including activities to conduct clinical stud t ies of its product candidates, manufact f ur t e product candidates and provide general and administrative suppor u t for these operations. Liquidit d yt As of December 31, 2023, the Company had cash and cash equivalents of $285.5 million. Although the Company has incurred significant operating losses since inception and expects to continue to incur operating losses and negative operating cash flows for the foreseeabl a e future, the Company believes that the cash and cash equivalents will be sufficient to meet the anticipated operating and capital expenditure requirements for the 12 months following the date of this Annual Report on Form 10-K. 2. Summary of Signific f ant Accounting Policies Basisi of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). Reclas l sifi i cation Certain prior period amounts in the consolidated financial statements have been reclassified to confor f m to the current period presentation. Principl i es l of Consolid l at d io t n The consolidated financial statements include the Company’s accounts and the accounts of Kodiak Sciences Financing Corporation and Kodiak Sciences China, the Company’s direct wholly owned subs u idiaries, incorporated in the United States and Cayman Islands, respectively, and Kodiak Sciences GmbH and Kodiak Sciences Valais GmbH, the Company’s indirect wholly owned subs u idiaries, both incorporated in Switzerland. All intercompany accounts and transactions have been eliminated. The functional and reporting currency of the Company and its subs u idiaries is the U.S. dollar. The aggregate foreign currency transaction gain (loss) included in determining net loss was $(0.1) million, $0.3 million, and $(0.3) million for the years ended December 31, 2023, 2022 and 2021, respectively. Segm e ents The Company operates and manages its business as one reportabl a e and operating segment, which is the business of research and development of drugs r for retinal diseases. The chief operating decision maker reviews financial information on an aggregate basis for purpos r es of allocating resources and evaluating financial performance. Use of Estimates The preparation of consolidated financial statements in confor f mity with US GAAP requires management to make estimates and assumptions that affe f ct the reported amounts of assets and liabi a lities, disclosure of contingent assets and liabi a lities as of the date of the consolidated financial statements and expenses during the reporting period. Such estimates include, but are not limited to, accrue r d research and development, stock-based compensation, and impairment of long-lived assets. Actual results could differ from those estimates.