Kodiak(KOD) - 2024 Q1 - Quarterly Report

Financial Performance - Kodiak Sciences reported a net loss of $43.0 million for the three months ended March 31, 2024, a decrease of$27.7 million compared to a net loss of $70.8 million in the same period of 2023[83]. - Net cash used in operating activities was$39.6 million for the three months ended March 31, 2024, compared to $47.2 million for the same period in 2023[97]. - The company experienced a net decrease in cash, cash equivalents, and restricted cash of$39.7 million for the three months ended March 31, 2024, following a net increase of $126.2 million in the same period of the previous year[96]. - The company has an accumulated deficit of$1,195.6 million as of March 31, 2024[90]. Research and Development - Research and development expenses totaled $29.9 million for the three months ended March 31, 2024, down$26.6 million from $56.5 million in the same period of 2023[84]. - Tarcocimab program expenses decreased by$20.2 million to $5.9 million in Q1 2024, primarily due to reduced clinical activities[84]. - KSI-501 program expenses increased by$1.4 million to $2.2 million in Q1 2024, attributed to increased manufacturing activities[85]. - Kodiak intends to conduct two additional Phase 3 clinical studies with tarcocimab, with the first patients treated in the GLOW2 study[71][73]. - The Phase 3 DAYBREAK study for KSI-501 is scheduled to begin patient screening in mid-2024, evaluating its efficacy and durability in wet AMD[67][76]. - KSI-101 is being developed for retinal inflammatory diseases, with plans to initiate a Phase 1b APEX study in June 2024[78]. - Kodiak has not generated any product revenue to date and does not expect to until regulatory approval is obtained for its product candidates[92]. Operational Challenges - The company continues to face significant uncertainties due to public health crises, geopolitical conflicts, inflation, and supply chain disruptions, which may adversely affect operations and capital resources[94]. - Adequate additional funding may not be available on acceptable terms, potentially impacting the company's financial condition and business strategies[95]. - The company may need to delay, reduce, or terminate some or all of its development programs and clinical trials if unable to raise additional funds when needed[95]. - Future debt financing may impose additional covenants that could restrict operations, including limitations on incurring additional debt and engaging in certain transactions[95]. Financial Reporting and Compliance - The company has not experienced material changes in its contractual obligations and commitments since December 31, 2023[98]. - There were no material changes to critical accounting policies during the three months ended March 31, 2024, as reported in the Annual Report for the year ended December 31, 2023[100]. - The company continues to monitor the impact of external events on the development and commercialization of its product candidates[94].