Kodiak Sciences Inc. Notes to Consolidated Financial Statements 94 A reconciliation of the U.S. federal rate to the Company’s effective tax rate is as follows: Year Ended December 31, 2025 2024 2023 .............................. U.S. Federal statutory tax rate $ (48,282) 21.0% $ (36,999) 21.0% $ (54,691) 21.0% ............................. Change in valuation allowance 29,999 -13.0% 18,175 -10.3% 23,080 -8.9% Nontaxable or nondeductible items .................................. Stock-based compensation 4,382 -1.9% 8,981 -5.1% 10,704 -4.1% ................................................................... Other 137 -0.1% 94 -0.1% 77 0.0% Tax credits ................ Research and development tax credits (3,235) 1.4% (2,307) 1.3% (3,776) 1.4% Foreign tax effects Switzerland .......................................... Tax rate differential 7,404 -3.2% 5,260 -3.0% 10,754 -4.1% ......................... Change in valuation allowance 9,527 -4.1% (145,138) 82.4% 11,061 -4.2% .......................................... Intangible valuation — 0.0% 151,926 -86.2% 2,258 -0.8% ................................................................. Other 120 -0.1% 28 0.0% 566 -0.3% ................................................... Effective tax rate $ 52 0.0% $ 20 0.0% $ 33 0.0% The decrease in the intangible valuation in the year ended December 31, 2024 was due to the expiration of a foreign intangible asset. The Company recognizes benefits of uncertain tax positions if it is more likely than not that such positions will be sustained upon examination based solely on their technical merits, as the largest amount of benefit that is more likely than not to be realized upon the ultimate settlement. As of December 31, 2025, 2024 and 2023, none of the unrecognized tax benefits would affect income tax expense with consideration of the valuation allowance. The Company’s policy is to recognize interest and penalties related to the underpayment of income taxes as a component of income tax expense or benefit. To date, there have been no interest or penalties charged in relation to the unrecognized tax benefits. The beginning and ending unrecognized tax benefits amounts are as follows (in thousands): Year Ended December 31, 2025 2024 2023 ................................... Unrecognized tax benefits at beginning of period $ 8,803 $ 8,245 $ 7,578 ..................................... Increases related to current year tax positions 840 558 667 ............................................. Unrecognized tax benefits at end of period $ 9,643 $ 8,803 $ 8,245 The Company files income tax returns in the United States and Switzerland. The Company is not currently under examination by income tax authorities in federal, state or other jurisdictions. All U.S. tax returns remain open for examination by the federal and state authorities for three and four years, respectively, from the date of utilization of any net operating loss or credits. On July 4, 2025, bill H.R. 1, known as the One Big Beautiful Bill Act (the “OBBBA”), was signed into law. The OBBBA revises U.S. corporate income tax laws by, among other things, restoring the option for immediate tax deductibility of domestic R&D expenditures, making permanent a 100% bonus depreciation deduction for property acquired domestically and providing a new provision for immediate expensing of manufacturing facility costs. The OBBBA did not have a material impact on the Company’s consolidated financial statements.