Company: KROS
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001664710-25-000070
Chunk: 237

Company: Keros Therapeutics, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 1
Chunk 237
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 below (income tax (provision) benefit in thousands):THREE MONTHS ENDED JUNE 30,SIX MONTHS ENDEDJUNE 30,2025202420252024Income tax (provision) benefit2,222 — (7,821)— Effective tax rate(6.8)%— %6.2 %— %The increase in the income tax (provision) benefit and the effective tax rate for the three and six months ended June 30, 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.

1 In periods where there is a net loss, zero incremental shares are included as the effect would be antidilutive.

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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 fees. Under such agreements, the exact amounts owed by the Company in the event of termination will be based on the timing of the termination and the exact terms of the agreement. As of June 30, 2025, the Company has committed up to approximately $23.1 million under these agreements which are expected to be paid through 2029.Return of CapitalIn June 2025, the Company 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 the Board and are expected to be announced at a future date.

11. REVENUE FROM CONTRACTS WITH CUSTOMERS

Hansoh License AgreementOn December 12, 2021,