Company: TVRD
Filing Date: 2025-10-07
Form Type: S-1/A
Source: 0001104659-25-097519
Chunk: 312

Company: Tvardi Therapeutics, Inc.
Filing Date: 2025-10-07
Form: S-1/A
Chunk 312
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ible 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.

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 | ​ |
| Interest rate (risk-free)                            |     |   4.37 | % |
| Conversion discount rate                             |     |  20.00 | % |

In addition to the inputs in the table, the Company’s assumptions and estimates incorporated into the valuation included probabilities assigned to each of the scenarios above, including a Qualified/non-Qualified financing (as defined in Note 8, Convertible Notes), IPO, reverse merger, and dissolution. Refer to Note 8, Convertible Notes, for further details surrounding the Qualified/non-Qualified Financing, IPO, reverse merger, and other settlement scenarios.

4.Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following as of December 31, 2024 and 2023 (in thousands):

| ​                                               
 ​                                               | ​ 
 ​ 
 ​ | ​                  
 As of December 31, |    ​ 
 2024 | ​ | ​ |     ​ 
  2023 |
|:------------------------------------------------|:--|:-------------------|-----:|:--|:--|------:|
| Prepaid research and development expenses       | ​ | $                  |   18 | ​ | $ | 3,203 |
| Other prepaid expenses                          | ​ |                    |   54 | ​ |   |    36 |
| Total prepaid expenses and other current assets | ​ | $                  |   72 | ​ | $ | 3,239 |

5.Intangible Assets

Intangible