Company: KROS
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001664710-25-000070
Chunk: 410

Company: Keros Therapeutics, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 8
Chunk 410
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 never occur, as the only way to realize any return on their investment. 

We may be unable to return excess capital to our stockholders in a timely matter, in the form they prefer, or at all.

In June 2025, following a strategic alternatives review process, we announced a plan to return $375.0 million in excess capital to stockholders. The terms and structure of this capital return remain under consideration by our board of directors and are expected to be announced at a future date. There can be no guarantee that we will achieve our capital return plan in a timely manner, in a form that would align with the preferences of all stockholders, or at all. The discretion to return excess capital, and the method of doing so, ultimately is with our board of directors and may be affected by legal, regulatory, tax, or operational considerations. Any failure to achieve our announced capital return plan could negatively impact our reputation, harm investor confidence in us, and cause the market price of our common stock to decline.

Our capital allocation strategy, including our proposed capital return, may not be effective at enhancing stockholder value, or providing other benefits we expect.

Although our capital allocation strategy, including our proposed capital return, is intended to enhance stockholder value and demonstrate our commitment to return excess capital to stockholders while maintaining our ability to advance the clinical development of our product candidates, there can be no assurance it will be effective. We have taken significant steps intended to better align our existing capital structure with our go-forward capital allocation strategy. For example, in June 2025, following a strategic alternatives review process, our board of directors determined to initiate a process to return $375 million of excess capital to stockholders.

The terms and structure of this capital return remain under consideration and will depend on a variety of factors, including the price and availability of our shares, trading volume, our financial condition, general market conditions, and projected cash positions. Returning excess capital may reduce the market liquidity for our stock, potentially affecting its trading volatility and price, and would also diminish our cash reserves, which may impact our ability to advance the clinical development of our 

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product candidates. Therefore, if we do not properly allocate our capital, we may fail to produce optimal financial results and experience a reduction in stockholder value.

Our executive officers, directors and stockholders and their affiliates who beneficially own more than 5% of our common stock have the ability to exercise significant influence over our company, which will limit your ability to influence corporate matters and could delay