Kodiak Sciences Inc. Notes to Consolidated Financial Statements (in thousands, except share and per share data) 103 The Company granted 4,195,650 options to employees in 2024. The total fair value of employee options vested during the years ended December 31, 2024, 2023 and 2022 was $13.4 million, $25.6 million and $28.9 million, respectively. Stock- based compensation expense recognized during the years ended December 31, 2024, 2023 and 2022 for options granted to employees, including the options granted under the LTPIP Program, was $56.7 million, $80.8 million and $93.8 million, respectively. Restricted Shares Restricted share activity, including restricted stock awards, restricted stock units, and performance-based restricted stock units, under the 2018 Plan is summarized as follows: Number of Restricted Shares Weighted Average Grant Date Fair Value Unvested at December 31, 2023 ............................................................. 164,817 $ 49.87 Granted.................................................................................................... 75,100 $ 3.23 Vested...................................................................................................... (86,559) $ 59.68 Canceled.................................................................................................. (31,698) $ 42.27 Unvested at December 31, 2024 ............................................................. 121,660 $ 16.08 Employee Restricted Stock Units The Company granted 75,100 RSUs to employees in 2024. The total fair value of RSUs vested during the year ended December 31, 2024, 2023, and 2022 was $3.5 million, $4.8 million and $4.9 million, respectively. Stock-based compensation expense recognized during the years ended December 31, 2024, 2023 and 2022 for RSUs was $2.4 million, $4.5 million, and $4.6 million, respectively. Non-Employee Awards The Company granted 54,000 stock options to non-employees during the year ended December 31, 2024. The Company granted 22,500 stock options and 1,500 RSUs to non-employees during the year ended December 31, 2023. The fair value of non-employee stock options was estimated using the following weighted-average assumptions: Year Ended December 31, Year Ended December 31, Year Ended December 31, 2024 2023 2022 Expected volatility.......................................................... 92% 88% — Risk-free interest rate ..................................................... 4.44% 3.82% — Dividend yield ................................................................ 0% 0% — Expected term................................................................. 3.28 4.11 — Stock-based compensation expense recognized during the years ended December 31, 2024, 2023 and 2022 for equity awards granted to non-employees was $0.2 million, $0.9 million and $1.2 million, respectively. Performance-Based Awards In December 2019, the Company granted 170,150 performance-based stock options and 128,900 performance-based RSUs (collectively "2019 PSA"). These equity awards would vest 25% upon the achievement of specific clinical development milestones. The remaining awards would then vest in three equal annual installments after that date. The performance criteria for 2019 PSA was achieved in June 2021. 37,925 of the performance-based stock options and 21,570 of the performance-based restricted stock vested during 2024. The total fair value of the performance-based stock options and RSUs vested during the years ended December 31, 2024, 2023 and 2022 was $3.4 million, $3.7 million and $3.9 million, respectively. The Company estimated the fair value of the 2019 PSA using the Black-Scholes valuation model and significant assumptions included an expected volatility of 72%, a risk-free rate of 1.67%, expected dividend yield of 0%, and expected term of 6.31 years.