Company: TVRD
Filing Date: 2025-02-14
Form Type: S-4/A
Source: 0001104659-25-013053
Chunk: 558

Company: Tvardi Therapeutics, Inc.
Filing Date: 2025-02-14
Form: S-4/A
Chunk 558
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 to Condensed Consolidated Financial Statements as of September 30, 2024, Commitments and Contingencies — Restructuring Actions , included elsewhere in this proxy statement/prospectus).

#### Other Income, Net
Other income, net consists of interest and dividend income earned on Cara’s cash, cash equivalents, and marketable securities, realized gains and losses on the sale of marketable securities and property and equipment, as well as accretion of discounts/amortization of premiums on purchases of marketable securities. In the event Cara records a credit loss expense on Cara’s available-for-sale debt securities, those expenses would be offset against other income.

#### Impairment of Long-Lived Assets
Cara periodically analyzes the recorded values of its long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of an asset or group of assets may not be fully recoverable. In these cases, Cara records an impairment charge during the period in which any impairment of Cara’s long-lived assets is determined, negatively affecting its results of operations. This impairment charge is recognized separately on Cara’s Condensed Consolidated Statement of Comprehensive Loss for the three and nine months ended September 30, 2024.

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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