Company: TVRD
Filing Date: 2025-05-30
Form Type: S-1
Source: 0001104659-25-054853
Chunk: 324

Company: Tvardi Therapeutics, Inc.
Filing Date: 2025-05-30
Form: S-1
Chunk 324
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 under the 2018 Plan expire after the grant date, unless the Board sets a shorter term, and typically vest over .

Fair Value Inputs

The fair value of stock option grants is estimated using the Black-Scholes option-pricing model. The Company historically has been a private company and lacks company-specific historical and implied volatility information. Therefore, it estimates its expected stock volatility based on the historical volatility of a publicly traded set of peer companies and expects to continue to do so until such time as it has adequate historical data regarding the volatility of its own traded stock price. The expected option term is calculated based on the simplified method for awards with service-based conditions, which uses the midpoint between the vesting date and the contractual term, as the Company does not have sufficient historical data to develop an estimate based on participant behavior. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield is based on the fact that the Company has never paid cash dividends and does not expect to pay any cash dividends in the foreseeable future.

The following table presents, on a weighted-average basis, the assumptions used in the Black- Scholes option-pricing model to determine the fair value of stock options granted:

| ​                                    
 ​                                    | ​ 
 ​ |                  ​ 
 For the Year Ended |    ​ | ​ |    ​ |    ​ | ​ |
|:-------------------------------------|:--|-------------------:|-----:|:--|-----:|-----:|:--|
| ​                                    | ​ |       December 31, |      |   |      |      |   |
| ​                                    |   |               2024 |      |   | 2023 |      |   |
| Per share fair value of common stock | ​ |                  $ | 0.62 | ​ |    $ | 0.52 | ​ |
| Expected volatility                  | ​ |                    | 73.8 | % |      | 67.4 | % |
| Expected dividends                   | ​ |                    |    0 | % |      |    0 | % |
| Expected term (in years)             | ​ |                    |  5.9 | ​ |      |  6.1 | ​ |
| Risk-free rate                       | ​ |                    | 3.93 | % |      | 3.56 | % |

Stock Options

The following