Company: KROS
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001664710-25-000046
Chunk: 78

Company: Keros Therapeutics, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 1A
Chunk 78
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 impede the progress of our research, development and commercialization objectives and have a material adverse effect on our business, financial condition, results of operations and prospects. 

Our strategic alternatives review process may not result in an executed or consummated transaction or other strategic alternative, and the process of reviewing strategic alternatives or its conclusion could adversely affect our business and our stockholders.

In April 2025, we announced that our board of directors has determined to initiate a formal review process to evaluate strategic alternatives to enhance our stockholder value. In connection with this determination, our board of directors has authorized the formation of a committee, consisting of independent and disinterested directors, to oversee the process, or the Strategic Committee, and make a recommendation to the full board of directors. The Strategic Committee, with the assistance of outside financial and legal advisors, intends to consider a comprehensive range of strategic alternatives, including but not limited to a sale of us or other business combination transaction, continued investment in our pipeline, and/or return of excess capital to stockholders. Any potential strategic alternative would be dependent on a number of factors that may be beyond our control, including, among other things, market conditions, industry trends, regulatory approvals, and the availability of financing for a potential transaction on reasonable terms. The process of reviewing potential strategic alternatives may be time-consuming, distracting, and disruptive to our business operations, which may cause concern to our employees, investors, strategic partners, licensing partners and other constituencies and may have a material impact on our business and operating results and/or result in increased volatility in our share price. We have and will continue to incur substantial expenses associated with identifying, evaluating, and negotiating potential strategic alternatives. There can be no assurance that any potential transaction or other strategic alternative will be completed on terms favorable to us or at all, and that, even if consummated, will provide greater value to our stockholders than that reflected in the current price of our common stock. Until the process is concluded, perceived uncertainties related to our future may result in the loss of potential business opportunities and volatility in the market price of our common stock and may make it more difficult for us to attract and retain qualified personnel and business partners.

We will need to grow the size of our organization, and we may experience difficulties in managing this growth. 

As of March 31, 2025, we had 163 full-time employees, including 130 employees engaged in research and development and 33 employees engaged in management or general and administrative activities. As our clinical development and commercialization plans