Company: TVRD
Filing Date: 2025-01-27
Form Type: S-4/A
Source: 0001104659-25-006050
Chunk: 863

Company: Tvardi Therapeutics, Inc.
Filing Date: 2025-01-27
Form: S-4/A
Chunk 863
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 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, |      |   |      |      | ​ |
| ​                                    | ​ |               2023 |      |   | 2022 |      | ​ |
| Per share fair value of common stock | ​ |                  $ | 0.52 | ​ |    $ | 0.37 | ​ |
| Expected volatility                  | ​ |                  ​ | 67.4 | % |    ​ | 60.4 | % |
| Expected dividends                   | ​ |                  ​ |    0 | % |    ​ |    0 | % |
| Expected term (in years)             | ​ |                  ​ |  6.1 | ​ |    ​ |  6.0 | ​ |
| Risk-free rate                       | ​ |                  ​ | 3.56 | % |    ​ | 2.11 | % |

F-108

10. Stock-based Compensation (continued) Stock Options The following table summarizes option activity during the year ended December 31, 2023:

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 Number of 
   Options | ​ 
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 Weighted- 
 Average   
 Exercise  
 Price