[Form 4] Avalo Therapeutics, Inc. Insider Trading Activity

Rhea-AI Filing Summary

Form 4 filing overview: On 18 June 2025, Avalo Therapeutics, Inc. (AVTX) reported that director Mitchell Chan received a new equity award on 17 June 2025. The grant consists of 20,100 non-qualified stock options with an exercise price of $4.47 per share, expiring 17 June 2035. The option vests 100 % on the first anniversary of the grant date, provided the director remains in service at that time.

Post-transaction holdings: Following the grant, Chan directly beneficially owns 20,100 derivative securities (options). No acquisitions or dispositions of common shares were reported in Table I, so the filing only affects derivative ownership.

Implications for investors: The award is a routine component of board compensation that aligns the director’s incentives with shareholder interests by linking future gains to share price appreciation above $4.47. Although the 20,100-share underlying amount represents minimal potential dilution relative to Avalo’s outstanding share count, it does marginally increase fully-diluted share capital. No cash outflow or immediate EPS impact occurs because the options are non-cash grants and forfeiture is possible if service ceases before vesting.

Materiality assessment: The transaction is not a signal of insider buying or selling; rather, it is a standard equity grant with no direct indication of management’s near-term outlook. Consequently, its market impact should be limited, but it demonstrates continued board engagement and retention efforts.

Positive

• Alignment of interests: Stock option grant ties director compensation to future share performance, fostering shareholder alignment.

Negative

• Potential dilution: Although minor, the 20,100 underlying shares add to fully-diluted share count.

Insights

Financial Analyst

TL;DR: Routine director option grant; negligible dilution; neutral market impact.

The 20,100-option grant at $4.47 is typical annual board compensation. With Avalo’s float in the tens of millions, the underlying shares represent an immaterial dilution (<0.1 %). There is no insider buying signal because no common stock was purchased. The one-year cliff vesting promotes retention and longer-term alignment without immediate expense recognition beyond non-cash ASC 718 charges. Investors should view this as housekeeping, not a catalyst.

Corporate Governance Expert

TL;DR: Governance-friendly equity grant; aligns director but impact minimal.

The single-year cliff combined with a 10-year term matches prevailing small-cap biotech governance norms. Grant size is modest to avoid over-compensation risk, while the strike price equals the market price on grant date, preserving shareholder fairness. No red flags appear regarding timing or 10b5-1 reliance, and the filing was timely. The action is neutral for governance scores and unlikely to sway voting behavior.

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
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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^*

Chan Mitchell

(Last) (First) (Middle)

C/O AVALO THERAPEUTICS, INC.

1500 LIBERTY RIDGE DRIVE, SUITE 321

(Street)

WAYNE PA 19087

(City) (State) (Zip)

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

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

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

3. Date of Earliest Transaction (Month/Day/Year)
06/17/2025

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

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

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

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

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
Stock Option (Right to Buy)	$4.47	06/17/2025		A		20,100		(1)	06/17/2035	Common Stock	20,100	$0	20,100	D

Explanation of Responses:

1. The stock option vests 100% on the first anniversary of the date of grant, subject to the Eligible Director's continued service on such vesting date.

	/s/ Donald R. Reynolds, by Power of Attorney	06/18/2025
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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FAQ

How many options did AVTX director Mitchell Chan receive?

20,100 stock options were granted on 17 June 2025.

What is the exercise price of the new AVTX options?

The options carry an exercise price of $4.47 per share.

When do the options granted to Mitchell Chan vest?

They vest 100 % on 17 June 2026, one year after the grant date.

Does the Form 4 indicate any purchase or sale of AVTX common stock?

No. The filing only reports a derivative grant; no common shares were bought or sold.

What is the expiration date of the AVTX director’s options?

The options expire on 17 June 2035.