Company: TVRD
Filing Date: 2025-01-27
Form Type: S-4/A
Source: 0001104659-25-006050
Chunk: 545

Company: Tvardi Therapeutics, Inc.
Filing Date: 2025-01-27
Form: S-4/A
Chunk 545
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 nine months ended September 30, 2024. Inventory Write-Down Cara periodically analyzes its inventory levels to identify inventory that may expire prior to expected sale or has a cost basis in excess of its estimated realizable value and write down such inventories as appropriate. In addition, Cara’s product is subject to strict quality control and monitoring which Cara perform throughout the manufacturing process. If certain batches or units of product no longer meet quality specifications or become obsolete due to expiration, Cara records a charge to write down such unmarketable inventory to its estimated realizable value. This inventory write-down charge is recognized separately on Cara’s Condensed Consolidated Statement of Comprehensive Loss for the three and nine months ended September 30, 2024. Non-cash Interest Expense on Liability Related to Sales of Future Royalties and Milestones Non-cash interest expense on liability related to sales of future royalties and milestone payments, which are received in conjunction with ex-U.S. sales of KORSUVA/Kapruvia under Cara’s agreements with CSL Vifor and Maruishi, consists of imputed interest on the carrying value of the liability and the amortization of the related issuance costs resulting from the HCR Agreement (see “Royalty Purchase and Sale Agreement” above). This non-cash interest expense is recognized separately on Cara’s Condensed Consolidated Statement of Comprehensive Loss for the three and nine months ended September 30, 2024. Income Taxes Historically, Cara’s benefit from income taxes related to state R&D tax credits exchanged for cash pursuant to the Connecticut R&D Tax Credit Exchange Program, which permits qualified small businesses engaged in R&D activities within Connecticut to exchange their unused R&D tax credits for a cash amount equal to 65% of the value of the exchanged credits. The Inflation Reduction Act of 2022 included tax legislation that became effective early in 2023. Significant legislation for corporate taxpayers includes a corporate alternative minimum tax of 15.0% for companies with $1.0 billion or more in average net financial statement profits over the three previous years, as well as a 1.0% indirect excise tax on the repurchase of shares by a publicly traded company. Cara does not expect this legislation to have an effect on Cara’s tax provision as of September 30, 2024; however, Cara will continue to evaluate the effect on the tax provision each reporting period. Results of Operations Comparison of the Three and Nine Months Ended September 30, 2024 and 2023 Revenue

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