87 Kodiak Sciences Inc. Consolidated Statements of Cash Flows (in thousands) Year Ended December 31, 2022 2021 2020 Cash flows from operating activities Net loss............................................................................................................$ (333,823) $ (266,990) $ (133,096) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation................................................................................................. 3,796 1,003 477 Stock-based compensation............................................................................. 106,033 61,385 30,668 Loss on disposal of long-lived assets............................................................... — 120 — Net amortization (accretion) of premium (discount) on marketable securities...... (1,068) 25 (51) Settlement of derivative contracts................................................................... (616) — — Amortization of operating lease right-of-use asset............................................ 7,205 7,708 3,731 Amortization of issuance costs ....................................................................... 53 53 49 Changes in assets and liabilities: Prepaid expenses and other current assets.................................................... (2,744) (270) (218) Other assets.............................................................................................. 7,384 1,465 (1,814) Accounts payable...................................................................................... 1,660 (2,094) 5,224 Accrued and other current liabilities............................................................ (2,246) 13,511 11,748 Operating lease liability............................................................................. 7,907 1,814 (146) Net cash provided by (used in) operating activities................................... (206,459) (182,270) (83,428) Cash flows from investing activities Purchase of property and equipment ................................................................... (37,021) (17,032) (3,814) Deposits on property and equipment ................................................................... (10,342) (46,266) (3,184) Purchase of marketable securities ....................................................................... (427,766) — (86,317) Maturities of marketable securities ..................................................................... 138,000 24,500 198,149 Proceeds from derivative activity........................................................................ 616 — — Net cash provided by (used in) investing activities ................................... (336,513) (38,798) 104,834 Cash flows from financing activities Proceeds from issuance of common stock in connection with offering, net of offering costs........................................................................................... — — 612,016 Proceeds from issuance of common stock upon options exercise ........................... 1,770 7,743 6,248 Payments for restricted stock units, net of taxes withheld...................................... — — (487) Proceeds from issuance of common stock pursuant to employee stock purchase plan ................................................................................................................. 174 484 — Proceeds from sale of future royalties, net of issuance costs .................................. — — 99,643 Principal payments of tenant improvement allowance payable............................... (49) (45) (38) Principal payments of finance lease .................................................................... — — (5) Net cash provided by (used in) financing activities................................... 1,895 8,182 717,377 Net increase (decrease) in cash, cash equivalents and restricted cash...................... (541,077) (212,886) 738,783 Cash, cash equivalents and restricted cash, at beginning of period ......................... 737,834 950,720 211,937 Cash, cash equivalents and restricted cash, at end of period...................................$ 196,757 $ 737,834 $ 950,720 Reconciliation of cash, cash equivalents and restricted cash to consolidated balance sheets Cash and cash equivalents..................................................................................$ 190,433 $ 731,510 $ 944,396 Restricted cash.................................................................................................. 6,324 6,324 6,324 Total cash, cash equivalents and restricted cash in consolidated balance sheets$ 196,757 $ 737,834 $ 950,720 Supplemental cash flow information: Cash paid for interest.........................................................................................$ 18 $ 22 $ 25 Supplemental disclosures of non-cash investing and financing information: Operating lease right-of-use asset obtained in exchange for operating lease liability$ (170) $ 773 $ 75,614 Purchase of property and equipment under accounts payable and accruals..............$ 2,917 $ 21,088 $ 803 Reclassification of deposits to property and equipment.........................................$ 5,363 $ 2,370 $ — Unpaid offering costs ........................................................................................$ — $ — $ 238 The accompanying notes are an integral part of these consolidated financial statements.