What changed in this filing

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Item 1. Financial Statements

2021-05-10 compared with 2020-11-09 · 63 added, 166 removed, 224 unchanged (51% of the section changed)

3 unchanged sentences

(in thousands, except share and per share amounts)

September 30,

Current assets:

3 unchanged sentences

Total current assets

Marketable securities

Restricted cash

14 unchanged sentences

Preferred stock, $ 0.0001 par value, 10,000,000 shares authorized;

0 shares issued and outstanding at September 30, 2020 and

December 31, 2019

Common stock, $ 0.0001 par value, 490,000,000 shares authorized at

September 30, 2020 and December 31, 2019;

0 shares issued and outstanding at March 31, 2021 and

December 31, 2020, respectively

Common stock, $ 0.0001 par value, 490,000,000 shares authorized

at March 31, 2021 and December 31, 2020;

51,225,861 and

44,413,404 shares issued and outstanding at September 30, 2020

and December 31, 2019, respectively

51,112,302 shares issued and outstanding at March 31, 2021 and

December 31, 2020, respectively

Additional paid-in capital

8 unchanged sentences

Three Months Ended

September 30,

Nine Months Ended

September 30,

Operating expenses

27 unchanged sentences

Balances at March 31, 2021

Issuance of common stock upon

exercise of stock options

Issuance of common stock upon

vesting of restricted stock units,

net of taxes withheld

Stock-based compensation

Other comprehensive income

Balances at June 30, 2020

Issuance of common stock upon

exercise of stock options

Stock-based compensation

Other comprehensive loss

Balances at September 30, 2020

Comprehensive

7 unchanged sentences

Balances at March 31, 2020

Issuance of common stock upon

exercise of stock options

Stock-based compensation

Other comprehensive income

Balances at June 30, 2019

Issuance of common stock upon

exercise of stock options

Issuance of common stock upon

exercise of common stock warrant

Stock-based compensation

Other comprehensive income

Balances at September 30, 2019

The accompanying notes are an integral part of these condensed consolidated financial statements.

2 unchanged sentences

(in thousands)

Nine Months Ended

September 30,

Three Months Ended

Cash flows from operating activities

12 unchanged sentences

Purchase of property and equipment

Deposits on property and equipment

Purchase of marketable securities

3 unchanged sentences

Proceeds from issuance of common stock upon options exercise

Payments for restricted stock units, net of taxes withheld

Proceeds from sale of future royalties, net of issuance costs

11 unchanged sentences

Operating lease right-of-use asset obtained in exchange for operating lease liability

Purchase of property and equipment under accounts payable

Purchase of property and equipment under accounts payable and accruals

The accompanying notes are an integral part of these condensed consolidated financial statements.

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(the “Company”) is a biopharmaceutical company committed to researching, developing and commercializing transformative therapeutics to treat high prevalence retinal diseases in the United States and additional international markets.

The Company devotes substantially all of its resources to the research and development of its product candidates including activities to conduct clinical studies of its product candidates, manufacture product candidates and provide general and administrative support for these operations.

As of September 30, 2020, the Company had cash, cash equivalents and marketable securities of $ 380.5 million.

The Company devotes substantially all of its resources to the research and development of its product platforms and product candidates including activities to conduct clinical studies of its product candidates, manufacture product candidates and provide general and administrative support for these operations.

As of March 31, 2021, the Company had cash, cash equivalents and marketable securities of $ 929.0 million.

Although the Company has incurred significant operating losses since inception and expects to continue to incur operating losses and negative operating cash flows for the foreseeable future, the Company believes that the cash, cash equivalents and marketable securities will be sufficient to meet the anticipated operating and capital expenditure requirements for the 12 months following the date of this Form 10-Q.

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The condensed consolidated financial statements , in the opinion of management, include all normal and recurring adjustments necessary to present fairly the Company's financial position and results of operations for the reported periods.

These condensed consolidated financial statements have been prepared on a basis substantially consistent with, and should be read in conjunction with the audited financial statements for the year ended December 31, 2019 and notes thereto, included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 16, 2020.

These condensed consolidated financial statements have been prepared on a basis substantially consistent with, and should be read in conjunction with the audited financial statements for the year ended December 31, 2020 and notes thereto, the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 1, 2021.

Certain information and note disclosures normally included in the audited financial statements prepared in accordance with GAAP have been condensed or omitted from this report.

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The impact of the ongoing COVID-19 pandemic continues to evolve.

As a result, certain estimates and assumptions required increased judgment and carried a higher degree of variability and volatility, including but not limited to, the fair value of marketable securities, performance-based equity awards, and research and development accruals for the three and nine months ended September 30, 2020.

As events continue to unfold and additional information becomes available, these estimates may change materially in future periods.

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Despite these efforts, the ongoing COVID-19 pandemic could significantly impact clinical trial enrollment and completion of its clinical studies.

During this pandemic, the Company continues to work closely with our manufacturing suppliers, partners and facilities to maintain the supply of our product candidates needed for the expansion of our clinical trials and to retain the number, scale and design of manufacturing runs that regulatory authorities may require to obtain marketing approval, including those required to support a BLA submission.

Despite these efforts, the ongoing COVID-19 pandemic could significantly impact the timing or likelihood of clinical resupply and of regulatory filings and approvals.

The Company will continue to monitor the COVID-19 situation and its impact on the ability to continue the development of, and seek regulatory approvals for, the Company’s product candidates, and begin to commercialize any approved products.

Summary of Significant Accounting Policies

The significant accounting policies used in preparation of these condensed consolidated financial statements for the three and nine months ended September 30, 2020 are consistent with those discussed in Note 2 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, except as noted below with respect to the Company’s liability related to sale of future royalties and as noted within the “Recent Accounting Pronouncements – Recently Adopted Accounting Pronouncements” section.

Liability related to Sale of Future Royalties

On December 1, 2019, the Company and its subsidiary Kodiak Sciences GmbH entered into a funding agreement with Baker Bros.

Advisors, LP (“BBA”), which holds more than 5 % of the Company’s stock, pursuant to which BBA purchased the right to receive a capped 4.5 % royalty on future net sales of KSI-301, the Company’s anti-VEGF antibody biopolymer conjugate therapy, in exchange for $ 225.0 million.

Under the terms of the funding agreement, there is no obligation to repay any funding amount received, other than through the capped royalty payments on future product revenues.

The Company recorded the funding amount paid by BBA as a liability on the consolidated balance sheet net of issuance costs , in accordance with ASC 730, Research and Development .

Under ASC 730, the significant related party relationship between the Company and BBA creates an implicit obligation to repay the funding amount paid to the Company.

Once royalty payments to BBA are determined to be probable and estimable, and if such amounts exceed the liability balance, the Company will impute interest to accrete the liability on a prospective basis based on such estimates.

If and when the Company makes royalty payments under the funding agreement, it would reduce the liability balance at such time.

Refer to Note 7.

Credit Losses – Available-for-Sale Debt Securities

For available-for-sale debt securities in an unrealized loss position, the Company will periodically assess its portfolio for impairment.

The assessment first considers the intent or requirement to sell the security.

If either of these criteria are met, the amortized cost basis will be written down to fair value through earnings.

If not met, the Company will evaluate whether the decline resulted from credit losses or other factors by considering the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and any adverse conditions specifically related to the security, among other factors.

If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security.

If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses will be recorded, limited by the amount that the fair value is less than the amortized cost basis.

Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income or loss, as applicable.

The significant accounting policies used in preparation of these condensed consolidated financial statements for the three months ended March 31, 2021 are consistent with those discussed in Note 2 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, except as noted within the “Recent Accounting Pronouncements – Recently Adopted Accounting Pronouncements” section.

Recent a ccounting p ronouncements

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) , under its ASC or other standard setting bodies, and adopted by the Company as of the specified effective date, unless otherwise discussed below.

Kodiak Sciences Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

Recently Adopted Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326):

Measurement of Credit Losses on Financial Statements , which intends to improve financial reporting by requiring earlier recognition of credit losses on certain financial assets, such as available-for-sale debt securities.

The Company assessed the impact of ASU 2016-13 on its available-for-sale debt securities and determined there were no credit losses within the portfolio requiring an allowance upon adoption.

The Company adopted this new guidance as of January 1, 2020, which did not impact its consolidated financial statements and related disclosures.

In August 2018, the FASB issued ASU 2018-13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurements , which eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of the FASB’s disclosure framework project.

Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Levels 1 and 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements.

The Company adopted this new guidance as of January 1, 2020, which did not impact its consolidated financial statements and related disclosures.

In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40):

Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which clarifies the accounting for implementation, set-up, and other upfront costs incurred in cloud computing arrangements.

The Company adopted this new guidance as of January 1, 2020, which did not impact its consolidated financial statements and related disclosures.

In October 2020, the FASB issued ASU 2020-10, Codification Improvements , which updates various codification topics and disclosure requirements to improve alignment with the SEC's regulations.

The Company adopted this new guidance as of January 1, 2021, which did not have a material impact on its consolidated financial statements and related disclosures.

New Accounting Pronouncements Not Yet Adopted

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740):

Simplifying the Accounting for Income Taxes , which is intended to simplify the accounting for income taxes.

ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application.

The new standard will be effective beginning January 1, 2021.

The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements and related disclosures.

The Company continues to monitor new accounting pronouncements issued by the FASB.

All other newly issued accounting pronouncements issued through the date of this report have been deemed either immaterial or not applicable.

Accrued and Other Current Liabilities

Accrued and other current liabilities consist of the following (in thousands):

September 30,

Accrued clinical trial and related costs

Accrued research and development

Accrued salaries and benefits

Accrued professional fees

Accrued legal fees

Accrued professional fees

Accrued other liabilities

4 unchanged sentences

The following tables present the Company’s fair value hierarchy for assets measured at fair value on a recurring basis (in thousands):

Fair Value Measurements at September 30, 2020

Fair Value Measurements at March 31, 2021

Cash equivalents:

1 unchanged sentence

Marketable securities:

treasury securities

Commercial paper

Corporate notes

2 unchanged sentences

Money market funds

Repurchase agreements

Commercial paper

Marketable securities:

treasury securities

Commercial paper

Corporate notes

As of March 31, 2021 and December 31, 2020, the fair value of the liability related to sale of future royalties is based on our current estimates of future royalties expected to be paid to Baker Bros.

Advisors, LP (“BBA”) , which are considered Level 3 inputs.

Marketable Securities

3 unchanged sentences

The Company validates the prices provided by the third-party pricing services by understanding the valuation methods and data sources used and analyzing the pricing data in certain instances.

The following table summarizes the marketable securities held at September 30, 2020 and December 31, 2019 (in thousands):

As of September 30, 2020

treasury securities

Commercial paper

The following table summarizes the marketable securities (in thousands):

As of March 31, 2021

Corporate notes

2 unchanged sentences

treasury securities

Commercial paper

Corporate notes

Total marketable securities, current

Corporate notes

Total marketable securities, noncurrent

All marketable securities held at March 31, 2021 and December 31, 2020 had effective maturities of less than one year .

There were no realized gains or losses recognized on the sale or maturity of available-for-sale debt securities during the three months ended March 31, 2021 and as a result, the Company did not reclassify any amounts out of accumulated comprehensive loss.

As of March 31, 2021 and December 31, 2020, the Company had no allowance for credit losses for available-for-sale debt securities.

There were no impairment charges or recoveries recorded during each of the three months ended March 31, 2021 and March 31, 2020.

Kodiak Sciences Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

All marketable securities held at September 30, 2020 and December 31, 2019 had contractual maturities of less than 18 months .

There were no realized gains or losses recognized on the sale or maturity of available-for-sale debt securities during the three and nine months ended September 30, 2020 and 2019, respectively, and as a result, the Company did not reclassify any amounts out of accumulated comprehensive loss.

As of September 30, 2020 and December 31, 2019, the Company had no allowance for credit losses for available-for-sale debt securities.

There were no impairment charges or recoveries recorded during each of the three and nine months ended September 30, 2020 and 2019.

Commitments and Contingencies

Palo Alto, California Leases

In June 2020, the Company entered into lease agreements for two buildings at 1200 and 1250 Page Mill Road in Palo Alto, California, which are now the Company’s U.S.

headquarters.

The facilities are approximately 82,662 square feet and 72,812 square feet, respectively and include office and laboratory space.

For 1200 Page Mill Road, the monthly rent during the initial 6.5 -year term will be approximately $ 0.6 million, with annual year-over-year increases of 3 % plus certain operating expenses and taxes and total rent abatement of approximately $ 7.2 million.

For 1250 Page Mill Road, the monthly rent during the initial 13 -year term will be approximately $ 0.5 million, with annual year-over-year increases of 3 % plus certain operating expenses and taxes and total rent abatement of approximately $ 6.3 million.

The Landlord will provide a tenant improvement allowance of approximately $ 1.2 million and $ 10.6 million for each building, respectively.

The Company executed a $ 10.9 million cash-collateralized letter of credit, which may be reduced in the future subject to the terms of the leases and certain reduction requirements specified therein.

The cash collateralizing the letter of credit is classified as restricted cash on the Company’s condensed consolidated balance sheets.

Under ASC 842, the Company classified these leases as operating leases and recorded right-of-use assets and lease liabilities on the lease commencement date.

The Company continues to lease office and laboratory space at 2631 Hanover Street in Palo Alto, California.

The Company entered into a lease agreement in January 2013 which was amended in March 2016 and extended the lease term until October 2023.

The Company classified this lease as an operating lease and recorded a right-of-use asset and lease liability on January 1, 2019 and recognized rent expense on a straight-line basis throughout the remaining lease term.

Switzerland Lease

In April 2020, the Company entered into a lease agreement for office and laboratory space at Rottenstrasse 5 in Visp, Switzerland.

The space is approximately 1,000 square meters.

The monthly rent during the initial 5-year term will be approximately 0.03 million Swiss Francs plus certain operating expenses and taxes.

Under ASC 842, the Company classified these leases as operating leases and recorded right-of-use assets and lease liabilities on the lease commencement date.

The maturities of the operating lease liabilities as of September 30, 2020 were as follows (in thousands):

Year ending December 31,

September 30, 2020

Total undiscounted lease payments

imputed interest

Total operating lease liabilities

Manufacturing Agreement

In August 2020, the Company and its subsidiary Kodiak Sciences GmbH entered into a manufacturing agreement with a contract manufacturing organization for the clinical and commercial supply of drug substance for KSI-301, the Company’s proprietary therapeutic candidate for the treatment and prevention of retinal vascular diseases.

Embedded Lease

In August 2020, the Company and its subsidiary Kodiak Sciences GmbH entered into a manufacturing agreement with Lonza Ltd (“Lonza”) for the clinical and commercial supply of drug substance for KSI-301, the Company’s proprietary therapeutic candidate for the treatment and prevention of retinal vascular diseases.

A custom-built manufacturing suite is planned to be completed and dedicated to the manufacture of the Company’s drug substance with an estimated capital contribution of 40 million Swiss Francs from the Company.

Construction of the manufacturing suite is targeted for completion in 2021.

The Company will be required to pay annual suite fees of 12 million Swiss Francs for 2021 and 16 million Swiss Francs for each year thereafter, which covers the manufacturing fees for a specified number of batches, and the Company may pay for additional batches to be manufactured.

The manufacturing agreement has an initial term of eight years , and the Company has the right to extend the term up to a total of 16 years.

Kodiak Sciences Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

The Company concluded that this agreement contains an embedded lease as the custom-built manufacturing suite will be dedicated for the Company’s use.

As of September 30, 2020, the Company did not have control of this manufacturing space and therefore, did no t record a right-of-use asset and corresponding lease liability.

These commitments are not included in the above table.

Other Commitments and Contingencies

The Company has entered into service agreements with a variety of service providers, pursuant to which such service providers agreed to perform activities in connection with the manufacturing of certain materials.

As of March 31, 2021, the Company did not have control of this manufacturing space and therefore, did no t record a right-of-use asset and corresponding lease liability.

Manufacturing Agreement

The Company has entered into service agreements with Lonza and its affiliates, pursuant to which Lonza agreed to perform activities in connection with the manufacturing process of certain compounds.

Such agreements, and related amendments, state that planned activities that are included in the signed work orders are, in some cases, binding and, hence, obligate the Company to pay the full price of the work order upon satisfactory delivery of products and services or obligate the Company to the binding amount regardless of whether such planned activities are in fact performed.

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The level of cancellation fees may be dependent on the timing of the written notice in relation to the commencement date of the work, with the maximum cancellation amount dependent on the agreement or the work order.

As of September 30, 2020 and December 31, 2019, the total amount of cancelable and/or non-cancelable purchase obligations, including accrued amounts, under these agreements were $ 221.1 million and $ 4.7 million, respectively.

Expense recognized under these agreements during the period, including amounts paid and accrued, for the three and nine months ended September 30, 2020 were $ 4.4 million and $ 12.0 million, respectively, and for the three and nine months ended September 30, 2019 were $ 2.7 million and $ 6.1 million, respectively.

As of September 30, 2020, the Company had no t incurred any cancellation fees.

Other Funding Commitments

In the normal course of business, the Company enters into agreements with third-parties for services to be provided to the Company.

Generally, these agreements provide for termination upon notice, with specified amounts due upon termination based on the timing of termination and the terms of the agreement.

The actual amounts and timing of payments under these agreements are uncertain and contingent upon the initiation and completion of services to be provided to the Company.

The Company has also entered into various cancellable license agreements for certain technology.

1 unchanged sentence

Such payments are dependent on future product sales and are not estimable.

Legal Proceedings

From time to time, the Company may become involved in legal proceedings arising from the ordinary course of its business.

Management is currently not aware of any matters that could have a material adverse effect on the Company’s financial position, results of operations or cash flows.

The Company records a legal liability when it believes that it is both probable that a liability may be imputed, and the amount of the liability can be reasonably estimated.

Significant judgment by the Company is required to determine both probability and the estimated amount.

Indemnification

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The Company believes the estimated fair value of these indemnification agreements in excess of applicable insurance coverage is minimal.

Liability related to Sale of Future Royalties

On December 1, 2019, the Company and its subsidiary Kodiak Sciences GmbH entered into a funding agreement with Baker Bros.

The royalty terminates upon the date that BBA has received an aggregate amount equal to 4.5 times the funding amount paid to the Company, unless earlier terminated or repurchased by the Company.

Under the terms of the funding agreement, there is no obligation to repay any funding amount received, other than through the capped royalty payments on future product revenues.

The Company has the option, exercisable at any point during the term of the funding agreement, to repurchase 100 % of the royalties due to BBA for a purchase price equal to 4.5 times the funding amount paid to the Company as of such time, less amounts paid by the Company to BBA.

The closing of the funding agreement was subject to certain conditions and occurred in February 2020.

The Company received $ 100.0 million of the funding on February 4, 2020.

The remaining $ 125.0 million shall be payable to the Company upon enrollment of 50 % of the patients in the planned RVO clinical program.

The Company recorded the initial $ 100.0 million payment as a liability on the consolidated balance sheet net of issuance costs , in accordance with ASC 730, Research and Development .

Under ASC 730, the significant related party relationship between the Company and BBA creates an implicit obligation to repay the funding amount paid to the Company.

If and when the Company makes royalty payments under the funding agreement, it would reduce the liability balance at such time.

Kodiak Sciences Inc.

1 unchanged sentence

Stock-Based Compensation

In January 2020 and 2019, the number of shares of common stock available for issuance under the 2018 Equity Incentive Plan was increased by approximately by 1.8 million and 1.5 million shares, respectively, as a result of the automatic increase provision in the 2018 Plan.

In January 2021 and 2020, the number of shares of common stock available for issuance under the 2018 Equity Incentive Plan was increased by approximately 2.0 million and 1.8 million shares, respectively, as a result of the automatic increase provision in the 2018 Plan.

Stock Options

3 unchanged sentences

Forfeited or canceled

Outstanding at September 30, 2020

Outstanding at March 31, 2021

Restricted Shares

1 unchanged sentence

Unvested at December 31, 2020

Shares withheld related to net share settlement of RSUs

Unvested at September 30, 2020

Unvested at March 31, 2021

Performance-Based Stock Options and Restricted Stock Units

The Company granted 170,150 performance-based stock options and 128,900 performance-based restricted stock units (“RSUs”) to employees in 2019.

These performance-based equity awards will vest one-quarter upon the achievement of specific clinical development milestones.

The remaining shares will then vest in three equal annual installments after that date.

The Company granted 190,831 performance-based stock options d uring the three months ended March 31, 2021.

The Company did no t grant any performance-based equity awards during the three months ended March 31, 2020.

The performance-based equity awards granted will vest one-quarter upon the achievement of specific clinical development milestones.

The remaining shares will then vest ratably over three years thereafter.

Performance-based stock options and performance-based restricted stock units are recorded as expense beginning when vesting events are determined to be probable.

None of these performance-based equity awards vested during 2019.

None of these performance-based equity awards are vested as of March 31, 2021.

The Company believes that the achievement of the requisite performance condition continues to be probable.

Stock-based compensation expense recognized was $ 1.8 million and $ 5.5 million during the three and nine months ended September 30, 2020, respectively, and none during the three and nine months ended September 30, 2019, respectively.

Stock-based compensation expense recognized was $ 2.5 million during the three months ended March 31, 2021 and $ 1.8 million during the three months ended March 31, 2020.

Kodiak Sciences Inc.

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

2018 Employee Share Purchase Plan

In August 2018, the Company adopted the 2018 Employee Share Purchase Plan (“ESPP”), which became effective on the business day prior to the effectiveness of the registration statement relating to the IPO.

A total of 460,000 shares of common stock were initially reserved for issuance under the ESPP.

The initial offering period of the ESPP was authorized by the Company’s board of directors and commenced on January 4, 2021.

Each offering period is approximately twelve months long, with two purchase periods.

ESPP participants will purchase shares of common stock at a price per share equal to 85 % of the lesser of (1) the fair market value per share of the common stock on the enrollment date or (2) the fair market value of the common stock on the exercise date.

During the three months ended March 31, 2021, no shares were issued under the ESPP and the stock-based compensation expense related to the ESPP was less than $ 0.1 million.

Stock-Based Compensation Expense

1 unchanged sentence

Three Months Ended

Nine Months Ended

September 30,

Research and development

1 unchanged sentence

Total stock-based compensation

As of September 30, 2020, the unrecognized stock-based compensation of unvested stock options, restricted stock units, and performance-based options and restricted stock units was $ 90.4 million and it is expected to be recognized over a weighted-average period of 3.04 years.

As of March 31, 2021, total unrecognized compensation cost related to the unvested share-based awards was $ 100.0 million, which is expected to be recognized over a weighted-average period of 2.6 years.

Net Loss per Common Share

The following common share equivalents were excluded from the computation of diluted net loss per common share for the periods presented because their inclusion would have been antidilutive:

As of September 30,

As of March 31,

Outstanding stock options

Unvested restricted shares

Subsequent Event

In April 2021, the Company and its subsidiary Kodiak Sciences GmbH amended the Bioconjugation Clinical and Commercial Development and Manufacturing Addendum with Lonza.

The amendment provides for an expanded design and scope of the custom-built manufacturing facility resulting in a higher annual manufacturing capacity and includes a revised maximum capital contribution of 74.5 million Swiss Francs.

Construction of the manufacturing facilities is targeted for completion in early 2022, with a manufacturing suite fee of 14.5 million Swiss Francs in 2022 and 20.0 million Swiss Francs for each year thereafter through 2029.

The Company is currently evaluating the impact the amendment will have on its consolidated financial statements and related disclosures.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements