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Subsequent Events
9 Months Ended
Sep. 30, 2021
Subsequent Events [Abstract]  
Subsequent Events

9. Subsequent Events

On October 13, 2021, stockholders of the Company approved the Kodiak Sciences Inc. 2021 Long-Term Performance Incentive Plan (the “LTPIP”) as described in the Company's Definitive Proxy Statement on Schedule 14A filed with the SEC on September 13, 2021. Stock options were granted under the LTPIP, contingent on stockholder approval of the LTPIP, to named executive officers and other eligible employees at the vice president level who made a one-time election to participate in the LTPIP and agreed to forgo a portion of their annual long-term incentive awards over the seven-year performance period ending on August 11, 2028. A total of 5,502,334 shares of common stock were reserved for issuance under the LTPIP.

The options can be earned based on the achievement of the performance-based requirement and/or certain operational milestones. The performance-based requirement consists of seven tranches of options that are earned based on meeting or exceeding stock price goals between $200 and $800 per share for 90 consecutive trading days.

Up to 35% of the options may be earned through the attainment of certain operational milestones to the extent that number of options has not yet been earned from stock appreciation. A participant may earn up to 25% upon approval by the U.S. Food and Drug Administration of a Biologics License Application for KSI-301 in the three major anti-VEGF indications and up to 10% from generating sales of at least $2.5 billion in a fiscal year. Once earned, options are subject to a service-based requirement and will vest through the remainder of the seven-year performance period in equal monthly installments.

Performance-based stock options totaling 1,920,625 with the same terms and conditions as the LTPIP were also granted to employees below the vice president level under the 2018 Plan. These stock option awards were also contingent on stockholder approval of the LTPIP. As discussed above, the LTPIP was approved by the stockholders of the Company on October 13, 2021.

The Company is currently evaluating the LTPIP approved in October 2021 and its accounting impact as a modification of the portion of the annual long-term incentive awards granted in 2021 that were foregone.