Pattern Question

I am working on a Knit for Kids pattern called "Maypop Baby Blanket". I am having a problem with the first row of the pattern stitch. At the end of this row I have lost 11 stitches. Here are the instructions for the row:
K1, *yo, k2tog, k3tog, (yo, K1) 3 times, k3tog tbl, sl 1, k 1, psso, yo, k1; rep from * across.
There are 137 stitches on the needle to begin with, and every row begins with K5 and ends with K5. The way I read the pattern, 5 stitches are added with yarn overs and 6 are lost with knit togethers with each repetition of the pattern, which causes a decrease in the number of stitches. The next row is all pearl except for the K5 on each end. Row 3 does not work out correctly with the 126 stitches that remain.

Thank you for any help you can give me.

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