Company: KROS
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001664710-25-000046
Chunk: 179

Company: Keros Therapeutics, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 8
Chunk 179
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 the full value of the company and are in the best interests of the company and all stockholders.

In April 2025, we announced that we entered into a letter agreement, or Letter Agreement, with Pontifax (Israel) IV, L.P., Pontifax (Cayman) IV, L.P., Pontifax (China) IV, L.P. and Pontifax Late Stage Fund L.P., or collectively, Pontifax, which provides that, among other things, we will nominate each of Mary Ann Gray, Ran Nussbaum and Alpna Seth, each of whom is 

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a current member of our board of directors, for election at our 2025 Annual Meeting of Stockholders, or Annual Meeting. In addition, Pontifax has agreed to abide by certain customary standstill restrictions, which remain in effect until the earlier of (x) December 31, 2025 or (y) the thirtieth day prior to the notice deadline under our Amended and Restated Bylaws (as in effect on the date of the Letter Agreement) for the nomination of director candidates by a stockholder for our 2026 Annual Meeting of Stockholders, subject to earlier termination in certain limited circumstances as set forth in the Letter Agreement. We and Pontifax have also agreed to certain non-disparagement obligations.

Known Trends, Events and Uncertainties

While recent trends towards rising inflation have eased, prices continue to rise, which may also materially affect our business and corresponding financial position and cash flows. Inflationary factors, such as increases in the cost of materials and supplies relating to our preclinical studies, clinical trials, interest rates and overhead costs may adversely affect our operating results. Rising interest rates and implementation of tariffs also present a recent challenge impacting the U.S. economy and could make it more difficult for us to obtain traditional financing on acceptable terms, if at all, in the future. Additionally, the general consensus among economists suggests that we should expect a higher recession risk to continue over the next year due in part to ongoing tariff and trade issues, which, together with the foregoing, could result in further economic uncertainty and volatility in the capital markets in the near term, and could negatively affect our operations. Furthermore, such economic conditions have produced downward pressure on share prices. Although we do not believe that inflation, higher interest rates or tariffs have had a material impact on our financial position or results of operations to date, we may experience increases in the near future (especially if inflation rates rise more quickly) on our operating