Company: TVRD
Filing Date: 2025-11-13
Form Type: 424B3
Source: 0001104659-25-111336
Chunk: 21

Company: Tvardi Therapeutics, Inc.
Filing Date: 2025-11-13
Form: 424B3
Chunk 21
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 the Merger,
the

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Table of Contents

Convertible Notes converted into 1,265,757 shares of the Company’s
common stock, $0.001 par value per share, in the aggregate.

The fair value of the Convertible Notes as
of December 31, 2024 was estimated based on significant inputs not observable in the market, which represented Level 3 measurements
within the fair value hierarchy. The Convertible Notes were valued using a scenario-based valuation analysis requiring a probability
of inputs including the probability of occurrence of events that would trigger conversion of the Convertible Notes and the expected
timing of such events.

In addition to the estimated probabilities of the
occurrence of events that would trigger conversion, the following table presents the other assumptions, estimates, and contractual features
incorporated into the valuation of the Convertible Notes as of December 31, 2024:

​

| ​                                                    | ​ |                  ​ | ​ |
| ​                                                    | ​ | As of December 31, | ​ |
| ​                                                    | ​ |               2024 | ​ |
| Time to Qualified/non-Qualified financing (in years) |   |               0.25 | ​ |
| Time to IPO (in years)                               |   |               0.25 | ​ |
| Time to reverse merger (in years)                    |   |               0.33 | ​ |
| Time to dissolution (in years)                       |   |                n/a | ​ |
| Interest rate (risk-free)                            |   |               4.37 | % |
| Conversion discount rate                             |   |              20.00 | % |

​

Since the Company elected the fair value option
to account for the Convertible Notes, at the time of conversion, the fair value was measured as the quoted market price of the Company’s
common shares into which the Convertible Notes were exchanged. The fair value was determined to be the closing market trading price of
the Company’s common stock on April 16, 2025, the first day of trading for the Company’s common stock following the closing
of the Merger.

Under the fair value option, any change in fair
value was recorded to the Company’s condensed consolidated statements of operations and comprehensive loss as a gain or loss from
a fair value measurement. At the time of conversion, the fair value of the Convertible Notes was $23.1 million, calculated as 1,265,