Company: TVRD
Filing Date: 2025-11-13
Form Type: 424B3
Source: 0001104659-25-111336
Chunk: 179

Company: Tvardi Therapeutics, Inc.
Filing Date: 2025-11-13
Form: 424B3
Chunk 179
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, results of operations, and cash flows could be
materially adversely impacted.

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Tvardi’s ability to use net operating loss carryforwards and other tax attributes may be limited, including as a result of the Merger.

Each of Cara and Legacy Tvardi has incurred losses
during its history, and Tvardi does not expect to become profitable in the near future and may never achieve profitability. To the extent
that Tvardi continues to generate taxable losses, unused losses will carry forward to offset future taxable income, if any, until such
unused losses expire, if at all. As of December 31, 2024, Cara had U.S. federal net operating loss (NOL) carryforwards and state NOL carryforwards
of $475.4 million and $403.1 million, respectively, and Legacy Tvardi had U.S. federal NOL carryforwards of approximately $47.2 million.
Under current law, U.S. federal NOL carryforwards generated in taxable periods beginning after December 31, 2017, may be carried forward
indefinitely, but the deductibility of such NOL carryforwards is limited to 80% of taxable income. It is uncertain if and to what extent
various states will conform to federal law. In addition, under Sections 382 and 383 of the Code, federal NOL carryforwards and other tax
attributes may become subject to an annual limitation in the event of certain cumulative changes in ownership. An “ownership change”
pursuant to Section 382 of the Code generally occurs if one or more stockholders or groups of stockholders who own at least 5% of a company’s
stock increase their ownership by more than 50 percentage points over their lowest ownership percentage within a rolling three-year period.
Tvardi’s ability to utilize its NOL carryforwards and other tax attributes to offset future taxable income or tax liabilities may
be limited as a result of ownership changes, including changes in connection with the Merger or other transactions. Similar rules may
apply under state tax laws. If Tvardi earns taxable income, such limitations could result in increased future income tax liability to
Tvardi, and Tvardi’s future cash flows could be adversely affected.

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The consummation of the Merger has made Tvardi subject to the SEC requirements applicable to reporting shell company business combinations. As a result, Tvardi is subject to more stringent reporting requirements, offering