Kodiak Sciences Inc. Notes to Consolidated Financial Statements 90 As of December 31, 2025 and 2024, the fair value of the liability related to sale of future royalties is based on the Company's current estimates of future royalties expected to be paid to Baker Bros. Advisors, LP (“BBA”), which are considered Level 3 inputs. See Note 15. As discussed in Note 8, the Company entered into a sublease agreement during the first quarter of 2025, which led to an impairment of the related right-of-use asset. Estimated fair value of the right-of-use asset was based on expected sublease rental income, considering current sublease market conditions, discounted at a market rate of return on similar assets. The estimates and assumptions used are considered Level 3 inputs. There were no transfers of assets or liabilities between the fair value measurement levels during the years ended December 31, 2025 and 2024. 6. Marketable Securities As of December 31, 2025 and 2024, there were no marketable securities. There were no reclassifications out of accumulated other comprehensive income (loss), impairment charges or recoveries and no allowance for credit losses recorded for the years ended December 31, 2025, 2024 and 2023, respectively. 7. Derivatives The Company has used certain derivative instruments, which are not designated as hedges for accounting purposes, including foreign currency forward contracts. As of December 31, 2025 and 2024, the Company did not have any outstanding derivative instruments. 8. Commitments and Contingencies Leases Palo Alto, California Leases In June 2020, the Company entered into lease agreements for two buildings at 1250 and 1200 Page Mill Road in Palo Alto, California, which serve as the Company’s U.S. corporate offices and research and development facilities. The buildings are approximately 73,000 square feet and 83,000 square feet, respectively, and include office and laboratory space. The lease term for 1250 Page Mill Road is 13 years and commenced in July 2020. The lease includes two options to extend for a term of five years each. The lease term for 1200 Page Mill Road is 6.5 years and commenced in September 2020. The lease includes an option to extend for another 6.5 years. In both cases, the Company determined the extension options were not reasonably certain to be exercised at lease inception. In addition to fixed monthly rent, the Company pays for variable operating expenses, such as property taxes, insurance costs, and maintenance costs. In March 2025, the Company subleased 1200 Page Mill Road. The term of the sublease is from March 2025 to February 2027, with no option to extend. Future minimum lease payments to be received under the sublease are $5.7 million and $0.5 million for the years ended December 31, 2026 and 2027, respectively. In addition to fixed monthly rent, the sublessee also pays for variable operating expenses. During the year ended December 31, 2025, the Company recognized $4.6 million of sublease income, of which $1.4 million was variable sublease income. Sublease income is recorded as a reduction to rent expense and included within general and administrative expense. Upon entering the sublease, the Company recognized a non-cash lease impairment expense of $1.9 million because the remaining lease cost to be recognized by the Company exceeded anticipated sublease income. See Note 5 for discussion of inputs used in determining the impairment. Switzerland Lease In April 2020, the Company entered into a lease agreement for approximately 1,000 square meters of office and laboratory space in Visp, Switzerland. The initial lease term is 5 years, with automatic renewals every 5 years for a maximum lease term of 15 years. In addition to fixed monthly rent, the Company pays certain operating expenses and taxes. Ursus Facility In August 2020, the Company and its wholly owned subsidiary Kodiak Sciences GmbH entered into a manufacturing agreement with Lonza Ltd (“Lonza”) for the clinical and commercial supply of the Company’s antibody biopolymer conjugate drug substance, which included a custom-built manufacturing suite. The manufacturing agreement has an initial term of 8 years, and the Company has the right to extend the term up to a total of 16 years. The Company and Lonza each have the ability to terminate this agreement upon the occurrence of certain events.