Company: TVRD
Filing Date: 2025-11-13
Form Type: 424B3
Source: 0001104659-25-111336
Chunk: 72

Company: Tvardi Therapeutics, Inc.
Filing Date: 2025-11-13
Form: 424B3
Chunk 72
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 assumptions and management’s best estimates. These estimates involve inherent uncertainties and management’s
judgement. If factors change and different assumptions are used, Tvardi’s stock-based compensation could be materially different
in the future.

These assumptions are estimated as follows:

| ● | Fair Value — Because Legacy Tvardi’s common stock was not yet publicly traded prior to the Merger, it had to estimate the fair value of its common stock. Tvardi’s board of directors considered numerous objective and subjective factors to determine the fair value of its common stock at each meeting in which awards were approved. Subsequent to the Merger, Tvardi’s common stock is publicly traded. |

| ● | Expected Volatility — Because Legacy Tvardi did not have any trading history for its common stock prior to the Merger, the expected volatility was estimated using averages of the historical volatility of its peer group of companies for a period equal to the expected term of the stock options granted. Legacy Tvardi’s peer group of publicly traded companies was chosen based on their similar size, stage in the life cycle or area of specialty. Subsequent to the Merger, Tvardi intends to continue to consistently apply this process using the same or a similar peer group of public companies, until a sufficient amount of historical information regarding the volatility of its own common stock price becomes available. |

| ● | Expected Term — Derived from the life of the options granted under the option plan and is based on the simplified method which is essentially the weighted average of the vesting period and contractual term. |

| ● | Risk-Free Interest Rate — The risk-free interest rate is based on the implied yield currently available on U.S. Treasury zero-coupon issues with a term that is equal to the options’ expected term at the grant date. |

| ● | Dividend Yield — Legacy Tvardi had not declared or paid dividends, and Tvardi does not anticipate declaring dividends. As such, the dividend yield has been estimated to be zero. |

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Table of Contents

Changes in the foregoing assumptions can materially
affect the estimate of grant date fair value and ultimately how much share-based compensation expense is recognized; and the resulting
change in fair value, if any, is recognized in Tvardi’s condensed consolidated statements of operations during the period the related
services are rendered. These inputs are subjective and generally require significant analysis and judgment to develop.

Fair Value of Stock-Based Awards

As a privately held company prior to the Merger