Company: TVRD
Filing Date: 2025-10-07
Form Type: S-1/A
Source: 0001104659-25-097519
Chunk: 157

Company: Tvardi Therapeutics, Inc.
Filing Date: 2025-10-07
Form: S-1/A
Chunk 157
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ation preferences at the time of the liquidity event, such as a strategic sale or a merger. These third-party valuations resulted in a valuation of Legacy Tvardi’s common stock of $0.92 and $0.82 (both pre-application of the Exchange Ratio) as of June 30, 2023 and June 30, 2022, respectively. In addition to considering the results of these third-party valuations, Legacy Tvardi’s board of directors considered various objective and subjective factors to determine the fair value of its common stock as of each grant date, including:

| ● | the prices at which Legacy Tvardi sold shares of its preferred stock and the superior rights and preferences of the preferred stock relative to its common stock at the time of each grant; |

| ● | the lack of an active public market, for Legacy Tvardi’s common stock and preferred stock; |

| ● | the progress of Legacy Tvardi’s research and development programs, including the status and results of preclinical studies and clinical trials for its product candidates; |

| ● | Legacy Tvardi’s stage of development and commercialization and its business strategy, and material risks to its business; |

| ● | external market conditions affecting the pharmaceutical and biopharmaceutical industry and trends within each industry; |

| ● | Legacy Tvardi’s financial position, including cash on hand, and its historical and forecasted performance and operating results; |

| ● | the likelihood of achieving a liquidity event, such as an initial public offering or sale of Legacy Tvardi in light of prevailing market conditions; and |

| ● | the analysis of initial public offerings and the market performance of similar companies in the biopharmaceutical industry. |

The assumptions underlying these valuations represented management’s best estimate, which involved inherent uncertainties and the application of management’s judgment. As a result, if Legacy Tvardi had used significantly different assumptions or estimates prior, the fair value of its common stock and its stock-based compensation expense could have been materially different. Following the Merger and the establishment of a public trading market for our common stock, it is no longer necessary for our board of directors to estimate the fair value of our common stock in connection with our accounting for stock options and other such awards we may grant, as the fair value of our common stock will be determined based on the quoted market price of our common stock.

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Legacy Tvardi Options Granted The following table summarizes by grant date the number of shares of Legacy Tvardi common