Company: KROS
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001664710-25-000070
Chunk: 101

Company: Keros Therapeutics, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 4
Chunk 101
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 a lesser number of shares as may be determined by our board of directors. If our board of directors elects to increase the number of shares available for future grant by the maximum amount each year, our stockholders may experience additional dilution, which could cause our stock price to fall. 

We do not intend to pay dividends on our common stock so any returns will be limited to the value of our stock. 

You should not rely on an investment in our common stock to provide dividend income. We currently anticipate that we will retain future earnings for the development, operation and expansion of our business and do not anticipate declaring or paying any cash dividends for the foreseeable future. Any return to stockholders will therefore be limited to the appreciation of their stock, which may 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