Company: TVRD
Filing Date: 2025-02-14
Form Type: S-4/A
Source: 0001104659-25-013053
Chunk: 731

Company: Tvardi Therapeutics, Inc.
Filing Date: 2025-02-14
Form: S-4/A
Chunk 731
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ger Agreement, an increase in compensation expenses of approximately $0.1 million and a decrease in additional paid-in capital of $0.1 million. 6(n) To reflect the recapitalization of Tvardi, pursuant to the Merger Agreement, through the contribution of 48,758,868 shares of Tvardi common stock (see Note 5), and the issuance of 11,878,447 shares of Cara common stock, reflecting the Exchange Ratio of 0.2042 and including the issuance of common stock upon the conversion of the Convertible Notes, and to reflect the derecognition of the accumulated deficit of Cara which is reversed to additional paid-in capital. The derecognition of accumulated deficit of Cara of $724.7 million is determined as follows (in thousands):

| ​ | Accumulated deficit of Cara as of September 30, 2024                                                                   | ​ | ​ | ​ | $ | -747,933 | ​ | ​ |
| ​ | Gain in connection with extinguishment of liability related to sales of future royalties and milestones, see Note 6(c) | ​ | ​ | ​ | ​ |   37,583 | ​ | ​ |
| ​ | Derecognition of prepaid expenses, See Note 6(e)                                                                       | ​ | ​ | ​ | ​ |   -2,382 | ​ | ​ |
| ​ | Transaction costs of Cara, see Note 6(h)                                                                               | ​ | ​ | ​ | ​ |   -7,900 | ​ | ​ |
| ​ | Compensation expense related to change-in-control, severance, and retention payments, see Note 6(i)                    | ​ | ​ | ​ | ​ |   -3,899 | ​ | ​ |
| ​ | Acceleration of Cara’s RSUs upon closing of the Merger, see Note 6(m)                                                  | ​ | ​ | ​ | ​ |     -135 | ​ | ​ |
| ​ | Total adjustment to derecognize the accumulated deficit of Cara                                                        | ​ | ​ | ​ | $ | -724,666 | ​ | ​ |

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6(o)

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 1,921,436 shares of Cara common stock, pursuant to the terms of the Convertible Notes,