Company: KROS
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001664710-25-000046
Chunk: 165

Company: Keros Therapeutics, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 8
Chunk 165
---
21)Diluted$3.62 $(1.21)The Company excluded the following from the computation of diluted net income (loss) per share attributable to common stockholders as of March 31, 2025 and 2024 because including them would have had an anti-dilutive effect: 

14

MARCH 31,2025MARCH 31,2024Restricted stock unit awards882,775 — Options to purchase common stock4,869,232 5,218,405 Employee stock purchase plan shares42,086 — Total5,794,093 5,218,405 

9. INCOME TAXES

The Company calculates income taxes at each interim reporting period based on the estimated annual effective tax rate for the full year, adjusted for any discrete events which are recorded in the period they occur. Cumulative adjustments to the income tax provision are recorded in the interim reporting period in which a change in the estimated annual effective tax rate is determined. The Company’s income tax provision and effective tax rate are presented below (income tax provision in thousands):THREE MONTHS ENDED MARCH 31,20252024Income tax provision10,043 — Effective tax rate6.3 %— %The increase in the income tax provision and the effective tax rate for the three months ended March 31, 2025 is primarily due to taxable income during the period resulting from the Takeda Agreement, partially offset by available net operating loss and tax credit carryforwards. The Company has evaluated the positive and negative evidence bearing upon its ability to realize the deferred tax assets. Management has considered the Company’s history of cumulative net losses incurred since inception and its lack of commercialization of any products that would generate revenue from product sales and has concluded that it is more likely than not that the Company will not realize the benefits of the deferred tax assets. Accordingly, a full valuation allowance is maintained against the net deferred tax assets.

10. COMMITMENTS AND CONTINGENCIES

Purchase CommitmentsThe Company enters into agreements in the normal course of business with contract manufacturing organizations for process development, raw material purchases and manufacturing services. These contracts typically do not contain minimum purchase commitments and are generally cancellable by the Company upon written notice. Payments due upon cancellation consist of payments for services provided or expenses incurred, including noncancellable obligations of the Company’s service providers, up to the date of cancellation and, in the case of certain arrangements with contract manufacturing organizations, may include noncancellable