Company: TVRD
Filing Date: 2025-11-13
Form Type: 424B3
Source: 0001104659-25-111336
Chunk: 182

Company: Tvardi Therapeutics, Inc.
Filing Date: 2025-11-13
Form: 424B3
Chunk 182
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 closed. Thereafter,
counsel for the purported stockholders (that sent the Demands or filed the Complaints) reached out to counsel for the Company to discuss
a potential mootness fee in connection with the supplemental disclosures filed by Cara. On August 15, 2025, Tvardi resolved the fee demand
and the matter is now closed.

General Risk Factors

Legacy Tvardi identified material weaknesses in its internal control over financial reporting, and, following the Merger, such material weaknesses must be remediated by Tvardi. If Tvardi fails to remediate these material weaknesses, or if it experiences additional material weaknesses in the future or otherwise fails to maintain effective internal control over financial reporting in the future, Tvardi may not be able to accurately or timely report its financial condition or results of operations, which may adversely affect investor confidence in Tvardi and, as a result, the value of its common stock.

As of December 31, 2024, Legacy Tvardi had limited
accounting personnel and other resources to address its internal control over financial reporting. In connection with the preparation
of Legacy Tvardi’s financial statements for the year ended December 31, 2024, material weaknesses were identified in the design
and operating effectiveness of Legacy Tvardi’s internal control over financial reporting. A material weakness is a deficiency, or
combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material
misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis.

​

These material weaknesses are related to the fact
that Legacy Tvardi lacked a sufficient number of professionals to consistently establish appropriate authorities and responsibilities
in pursuit of Legacy Tvardi’s financial reporting objectives. The lack of sufficient number of finance and accounting professionals
contributed to the inadequate design and Legacy Tvardi’s inability to maintain effective controls over the segregation of duties

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related to journal entries. In addition, Legacy Tvardi identified material
weaknesses in its financial reporting related to inadequate review of financial statements and disclosures, as well as a lack of formal
documentation and timely communication regarding prepaid and accrued research and development expenses related to the CRO.

​

However, these material weaknesses could result
in a misstatement of substantially all of Tvardi’s accounts or disclosures that would result in a material misstatement of its future
annual or interim financial statements that would