Kodiak Sciences Inc. Notes to Consolidated Financial Statements 91 In April 2021, the agreement was amended to provide for greater manufacturing flexibility, to define a comprehensive mandate as an antibody biopolymer conjugates manufacturing facility to be used for the Company’s antibody biopolymer conjugates pipeline, at clinical as well as commercial scales, across a broad capacity range under the tight quality controls required for ophthalmology and retinal medicines, and to allow for future process and equipment changes as needed. The Company concluded that this agreement contained an embedded lease as the custom-built manufacturing suite would be dedicated for the Company’s use. On January 31, 2023, the custom-built manufacturing suite was commissioned as a cGMP facility, which was also considered lease commencement. Consideration was allocated to lease and non-lease components as this agreement contained a significant service component (manufacturing services). Under ASC 842, the Company classified the lease portion as an operating lease and recorded a right-of-use asset and lease liability on the lease commencement date. Fixed assets of $81.7 million, in leasehold improvements and machinery and equipment, were placed in service and capitalized as of January 31, 2023. Future Lease Payments and Supplemental Lease Information The following is a schedule, by years, of maturities of lease liabilities as of December 31, 2025 (in thousands): Amounts ............................................................................................................................................. 2026 $ 15,600 ............................................................................................................................................. 2027 9,961 ............................................................................................................................................. 2028 8,759 ............................................................................................................................................. 2029 8,984 ............................................................................................................................................. 2030 8,345 ..................................................................................................................................... Thereafter 21,631 ............................................................................................. Total undiscounted lease payments 73,280 ................................................................................................................ Less: imputed interest (14,100) ................................................................................................... Present value of lease liabilities $ 59,180 The table above does not include payments for operating expenses, which are not fixed at lease commencement. The components of lease expense were as follows (in thousands): Year Ended December 31, 2025 2024 2023 ................................................... Operating lease expense $ 12,245 $ 12,988 $ 13,192 .................................................. Short-term lease expense 9 31 494 ..................................................... Variable lease expense 3,250 3,320 3,618 ............................................................... Sublease income (4,622) — — ......................................................... Total lease expense $ 10,882 $ 16,339 $ 17,304 Supplemental balance sheet information related to lease liabilities is as follows: December 31, 2025 2024 .......................................... Weighted-average remaining lease term (in years) 6.3 6.8 ....................................................................... Weighted-average discount rate 6.8% 6.8% Supplemental cash flow information related to leases is as follows (in thousands): Year Ended December 31, 2025 2024 2023 ........................................................ Cash paid for operating lease liabilities, included in operating cash flows 16,104 15,824 15,157 ................................................. Right-of-use assets obtained in exchange for new operating lease liabilities — (49) 2,668