Company: TVRD
Filing Date: 2025-01-27
Form Type: S-4/A
Source: 0001104659-25-006050
Chunk: 544

Company: Tvardi Therapeutics, Inc.
Filing Date: 2025-01-27
Form: S-4/A
Chunk 544
---
 on maximizing shareholder value after Cara announced its decision to discontinue the clinical program in NP on June 12, 2024. Cara’s decision to discontinue the clinical program in NP followed the outcome from the dose-finding Part A of the KOURAGE-1 study evaluating the efficacy and safety of oral difelikefalin for moderate-to-severe pruritus in adult patients with NP in which oral difelikefalin did not demonstrate a meaningful clinical benefit at any dose compared to placebo. Cara’s decision was not related to any safety or medical issues, or negative regulatory feedback related to the NP program. In connection with the streamlined operating plan, Cara’s Board also approved a second reduction in its workforce by approximately 70%, which Cara substantially completed by June 30, 2024. As of the date of this filing, Cara has ten employees that are currently working for the company.

Restructuring expenses consist of pre-tax severance and employee-related costs for those involuntary terminations associated with the discontinuation of Cara’s oral programs in atopic dermatitis and chronic kidney disease in December 2023 and January 2024, respectively, the discontinuation of Cara’s oral program in NP in June 2024, and the related workforce reductions in 2024 (see Note 17 of Cara’s Notes 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

<div align='center'>296</div>

affecting its results of operations. This impairment charge is recognized separately on Cara’s Condensed Consolidated Statement of Comprehensive Loss for the three and