Company: KROS
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001664710-25-000070
Chunk: 285

Company: Keros Therapeutics, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 8
Chunk 285
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 will reevaluate the transaction price at the end of each reporting period and will adjust the estimate of the transaction price as uncertain events are resolved or other changes in circumstances occur. The Company determined that the Takeda Agreement and TSA did not contain a significant financing component. The transaction price has been allocated to the License and Know-How and the Transition Services on a relative standalone selling price basis. The Company allocated $195.4 million of the transaction price to the License and Know-How and $42.3 million to the Transition Services.Revenue allocated to the License and Know-How was recognized at a point in time, when control of the License and Know-How was transferred to Takeda. Revenue is recognized when, or as, the Company satisfies its performance obligations by transferring the promised services to Takeda. Revenue is recognized over time using the input method for the Transition Services, based on costs incurred to provide the services as the level of costs incurred over-time best reflect the transfer of services. Accounts receivable were $15.8 million as of June 30, 2025 and zero as of December 31, 2024. Accounts receivable are amounts due from Takeda for the Transition Services.A contract liability is an obligation to transfer goods or services for which consideration has been received or is due to a customer. The Company's contract liabilities as of June 30, 2025 and December 31, 2024 consisted of unearned revenue, current of $0.9 million and zero, respectively, and were primarily related to the portion of the upfront payment received from Takeda that was allocated to the Transition Services. These amounts are to be recognized over the remaining estimated transition period expected to be complete by the end of 2025.Revenue recognized from Takeda for the three and six months ended June 30, 2025 and 2024 is as follows (in thousands):THREE MONTHS ENDED JUNE 30,SIX MONTHS ENDED JUNE 30,2025202420252024License revenue$— $— $195,355 $— Service revenue$18,168 $— $34,005 $— Total revenue from Takeda$18,168 $— $229,360 $— 

12. SEGMENT REPORTING

18

The following table presents segment revenue and significant segment expenses (in thousands) for the three and six months ended June 30, 2025 and