Company: TVRD
Filing Date: 2025-01-27
Form Type: S-4/A
Source: 0001104659-25-006050
Chunk: 698

Company: Tvardi Therapeutics, Inc.
Filing Date: 2025-01-27
Form: S-4/A
Chunk 698
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(l)                                                  | ​ | ​ |     -143 |
| Total adjustment to derecognize the accumulated deficit of Cara                                                        | ​ | $ | -724,674 |

6(n) To reflect an (i) incremental fair value adjustment of $7.3 million on the Convertible Notes, reflecting the 20% discount of the Convertible Notes and accrued interest immediately prior to the conversion and (ii) the issuance of 3,842,872 shares of Cara common stock, pursuant to the terms of the Convertible Notes, described in Note 1. The incremental change in fair value of the Convertible Notes of $7.3 million is adjusted for pro forma purposes through accumulated deficit as of September 30, 2024.

The pro forma notes and adjustments, based on preliminary estimates that could change materially as additional information is obtained, are as follows: Pro forma notes: 7(A) Derived from the unaudited condensed consolidated statement of operations and comprehensive loss of Cara for the nine months ended September 30, 2024 7(B) Derived from the unaudited condensed statement of operations of Tvardi for the nine months ended September 30, 2024 7(C) Derived from the audited consolidated statement of operations and comprehensive loss of Cara for year ended December 31, 2023 7(D) Derived from the audited statement of operations and comprehensive loss of Tvardi for year ended December 31, 2023 Tvardi and Cara did not record any provision or benefit for income taxes during the nine months ended September 30, 2024 or during the year ended December 31, 2023 because each company expects to incur a pre-tax loss in 2024 and incurred a pre-tax loss in 2023 and each company maintains a full valuation allowance on its deferred tax assets. Accordingly, no pro forma adjustments have an impact on associated income tax. Pro forma Statement of Operations Transaction Accounting Adjustments: Transaction Accounting Adjustments — Asset Disposition and Other Adjustments

| 7(a) | To reflect the derecognition of Cara’s prepaid expenses of $2.4 million, consisting of $1.7 million of prepaid research and development clinical costs, $0.5 million of prepaid insurance related to Cara’s current D&O policy that will be fully utilized at the Closing, and $0.2 million of other prepaid costs, assuming the adjustment made in Note 6(e) was made on January 1, 2023. |

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