Company: TVRD
Filing Date: 2025-05-30
Form Type: S-1
Source: 0001104659-25-054853
Chunk: 313

Company: Tvardi Therapeutics, Inc.
Filing Date: 2025-05-30
Form: S-1
Chunk 313
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                             | 21,762 | ​ | $       | — | ​ | $       | — | ​ | $     | 21,762 |
| Total financial assets | ​ | $                             | 21,762 | ​ | $       | — | ​ | $       | — | ​ | $     | 21,762 |

The Company did not have any Level 3 assets or liabilities as of December 31, 2023. There were transfers between Levels during the periods presented.

The following table presents the changes in the fair value of the Level 3 Convertible Notes (in thousands):

| ​                                             
 ​                                             
 Balance as of December 31, 2023               | ​ 
 ​ | ​       
 Amounts |      ​ 
      — |
|:----------------------------------------------|:--|:--------|-------:|
| Convertible Notes issuance                    | ​ |         | 28,298 |
| Accrued interest as of December 31, 2024      | ​ |         |    154 |
| Change in fair value of the Convertible Notes | ​ |         |  1,807 |
| Balance as of December 31, 2024               | ​ | $       | 30,259 |

Valuation of Convertible Notes

In December 2024, the Company issued and sold Convertible Notes (as defined in Note 8, Convertible Notes) in an aggregate principal amount of $ million. The fair value of the Convertible Notes at issuance and as of December 31, 2024 was estimated based on significant inputs not observable in the market, which represent 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.

F-16

The following table presents the assumptions, estimates, and contractual features incorporated into the valuation of the Convertible Notes as of December 31, 2024:

| ​                                                    |     | Inputs |   |
| 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 | ​ |
|