Avalo CLO reports tax-share withholding on Form 4

Avalo Therapeutics Chief Legal Officer Paul Varki reported a tax-related share disposition.

Rhea-AI Filing Summary

Avalo Therapeutics Chief Legal Officer Paul Varki reported a tax-related share disposition. On this Form 4, 1,081 shares of common stock were withheld at $13.10 per share to satisfy tax obligations, a non-market transaction classified as a tax-withholding disposition.

Following this event, Varki directly holds 32,576 shares of Avalo Therapeutics common stock. A footnote explains that this total includes 5,723 shares acquired through the company’s Employee Stock Purchase Plan as part of this reporting transaction.

Insider Trade Summary

Exercise Price or Tax Liability: 1,081 shares

Exercise Price or Tax Liability 1 txn

Insider VARKI PAUL

Role Chief Legal Officer

Type	Security	Shares	Price	Value
Exercise Price or Tax Liability	Common Stock	1,081	$13.10	$14K

Holdings After Transaction: Common Stock — 32,576 shares (Direct)

Footnotes (1)

1. F1. Includes 5,723 shares acquired pursuant to the Issuer's Employee Stock Purchase Plan as a part of this reporting transaction.

Key Figures

Tax-withholding shares: 1,081 shares Tax-withholding price: $13.10 per share Shares held after transaction: 32,576 shares +1 more

4 metrics

Tax-withholding shares 1,081 shares Common Stock withheld to cover tax liability

Tax-withholding price $13.10 per share Price used for tax-withholding disposition

Shares held after transaction 32,576 shares Direct common stock ownership after disposition

ESPP shares included 5,723 shares Acquired via Employee Stock Purchase Plan as part of this transaction

Key Terms

tax-withholding disposition, Employee Stock Purchase Plan, Common Stock

3 terms

tax-withholding disposition financial

"a non-market transaction classified as a tax-withholding disposition"

A tax-withholding disposition is an event or transaction—such as selling or transferring securities, exercising options, or receiving compensation—that triggers a requirement to hold back part of the payment and remit it to tax authorities. It matters to investors because it reduces the cash they receive immediately and can change the timing and amount of taxable income, like a cashier taking a portion of your sale proceeds to pay taxes before you get the rest.

Employee Stock Purchase Plan financial

"includes 5,723 shares acquired through the company’s Employee Stock Purchase Plan"

An employee stock purchase plan is a company program that lets workers buy shares through small payroll deductions, often at a discount to the market price and after a set offering period. Think of it like a workplace savings plan that turns into ownership: it encourages employees to share in the company’s success and can create predictable buying or selling of stock that investors watch because it affects supply, demand and employee incentives.

Common Stock financial

"1,081 shares of common stock were withheld at $13.10 per share"

Common stock represents ownership shares in a company, giving investors a stake in its success and a say in important decisions through voting rights. It is the most common type of stock traded on markets and can provide income through dividends, as well as potential for value growth. For investors, holding common stock means sharing in the company’s profits and risks.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What insider transaction did Avalo Therapeutics (AVTX) report for Paul Varki?

Avalo Therapeutics reported a tax-withholding disposition for Chief Legal Officer Paul Varki. The company withheld 1,081 common shares at $13.10 per share to cover tax liabilities, rather than an open-market sale, as shown in the Form 4 filing.

How many Avalo Therapeutics (AVTX) shares were withheld for taxes in this Form 4?

The filing shows 1,081 Avalo Therapeutics common shares were withheld to satisfy tax obligations. This tax-withholding disposition used a price of $13.10 per share and is not an open-market purchase or sale, but a mechanism to pay required taxes.

How many Avalo Therapeutics (AVTX) shares does Paul Varki hold after this transaction?

After the reported tax-withholding disposition, Chief Legal Officer Paul Varki directly holds 32,576 shares of Avalo Therapeutics common stock. This figure comes from the Form 4’s post-transaction ownership line and reflects his direct holdings following the event.

What role did Avalo Therapeutics’ Employee Stock Purchase Plan play in this Form 4?

A footnote states that 5,723 of Paul Varki’s reported shares were acquired through Avalo Therapeutics’ Employee Stock Purchase Plan. These ESPP shares are included in his 32,576 total direct holdings disclosed as of this Form 4 reporting transaction.

Does the Avalo Therapeutics (AVTX) Form 4 indicate open-market buying or selling by Paul Varki?

The Form 4 does not show open-market buying or selling by Paul Varki. Instead, it records a tax-withholding disposition, where 1,081 shares were delivered to cover tax liabilities, which is a routine administrative transaction rather than a discretionary market trade.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Accepted by SEC EDGAR 06/12/2026 - 04:41 PM Learn about SEC filing dates

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

OMB APPROVAL

OMB Number:			3235-0287
Estimated average burden
hours per response:			0.5

Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

Check this box to indicate that a transaction was made pursuant to a contract, instruction or written plan for the purchase or sale of equity securities of the issuer that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). See Instruction 10.

1. Name and Address of Reporting Person^*

VARKI PAUL

(Last) (First) (Middle)

C/O AVALO THERAPEUTICS, INC.

1500 LIBERTY RIDGE DRIVE, SUITE 321

(Street)

WAYNE PENNSYLVANIA 19087

(City) (State) (Zip)

UNITED STATES

(Country)

2. Issuer Name and Ticker or Trading Symbol
Avalo Therapeutics, Inc. [ AVTX ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

	Director		10% Owner
X	Officer (give title below)		Other (specify below)
	Chief Legal Officer

2a. Foreign Trading Symbol

3. Date of Earliest Transaction (Month/Day/Year)
06/10/2026

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

4. If Amendment, Date of Original Filed (Month/Day/Year)

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
			Code	V	Amount	(A) or (D)	Price
Common Stock	06/10/2026		F		1,081	D	$13.1	32,576(1)	D

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
				Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares

Explanation of Responses:

1. Includes 5,723 shares acquired pursuant to the Issuer's Employee Stock Purchase Plan as a part of this reporting transaction.

	/s/ Christopher Sullivan, Attorney-in-Fact	06/12/2026
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.
* Form 4: SEC 1474 (03-26)