Company: KROS
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001664710-25-000089
Chunk: 284

Company: Keros Therapeutics, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 8
Chunk 284
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 partially offset by available net operating loss and tax credit carryforwards. The Company has evaluated the positive and negative evidence 

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

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bearing upon its ability to realize its net deferred tax assets. Management has considered the Company’s history of cumulative 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 its net deferred tax assets. Accordingly, a full valuation allowance is maintained against the net deferred tax assets.On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA"), which includes a broad range of tax reform provisions, was signed into law in the United States and the Company does not expect the OBBBA to have a material impact on its income tax (provision) benefit and estimated annual effective tax rate in 2025.

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 September 30, 2025, the Company has committed up to approximately $4.2 million under these agreements which are expected to be paid through 2029.

11. REVENUE FROM CONTRACTS WITH CUSTOMERS

Hansoh License AgreementOn December 12, 2021, the Company entered into a license agreement (the “Hansoh Agreement”) with Hansoh (Shanghai) Healthtech Co., Ltd. (“Hansoh”). Under the Hansoh Agreement, the Company granted to Hansoh the exclusive right to develop, manufacture and commercialize elritercept and licensed products containing elritercept within the territories of mainland China, Hong Kong and Macau (the “Hansoh Territory”).In connection with the Hansoh Agreement, Hansoh will purchase clinical trial supply of elriter