Avalo Therapeutics (AVTX) CLO granted 24,300 performance-based common shares

Rhea-AI Filing Summary

Avalo Therapeutics, Inc. reported that Chief Legal Officer Paul Varki acquired 24,300 shares of Common Stock through a compensation award. These shares relate to performance stock units granted earlier, each representing a right to one share upon meeting performance goals.

The Compensation Committee certified achievement of the required goals on May 21, 2026. As a result, the shares will fully vest on August 19, 2028, if Varki continues in service through that date. Following this award, he holds 27,934 shares directly.

Insider Trade Summary

1 transaction reported

Mixed 1 txn

Insider VARKI PAUL

Role Chief Legal Officer

Type	Security	Shares	Price	Value
Grant/Award	Common Stock	24,300	$0.00	--

Holdings After Transaction: Common Stock — 27,934 shares (Direct, null)

Footnotes (1)

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Key Figures

Shares acquired: 24,300 shares Price per share: $0.0000 per share Total holdings after transaction: 27,934 shares +1 more

4 metrics

Shares acquired 24,300 shares Common Stock grant/award acquisition on May 21, 2026

Price per share $0.0000 per share Reported transaction price for the awarded shares

Total holdings after transaction 27,934 shares Direct Common Stock holdings following the award

Vesting date August 19, 2028 Full vesting date for shares subject to PSUs

Key Terms

performance stock units, Compensation Committee, vest, contingent right

4 terms

performance stock units financial

"Represents performance stock units ("PSUs") granted to the Reporting Person"

Performance stock units are a type of company award that grants employees shares of stock only if certain performance goals are met. They motivate employees to work toward specific company achievements, aligning their interests with those of shareholders. For investors, they can influence a company's future stock supply and reflect management’s confidence in reaching key targets.

Compensation Committee financial

"On May 21, 2026, the Compensation Committee of the Issuer certified achievement"

A compensation committee is a group within a company's leadership responsible for setting and reviewing how much top executives and employees are paid, including salaries, bonuses, and benefits. It matters to investors because fair and effective pay decisions can influence a company's performance, leadership motivation, and overall governance, helping ensure that the company’s management is aligned with shareholders’ interests.

vest financial

"the shares subject to the PSUs shall fully vest on August 19, 2028"

A vest is the process by which an employee earns the right to receive certain benefits or ownership interests, such as stock or retirement funds, over time. It’s similar to earning a reward gradually, ensuring that the benefit becomes fully yours only after a set period or meeting specific conditions. This makes it important for investors because it determines when they can actually claim or use those benefits.

contingent right financial

"Each PSU represents a contingent right to receive one share"

Form 4 Insider Transactions: What Each Field Means →

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)
05/21/2026

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	05/21/2026		A(1)		24,300	A	$0	27,934	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. Represents performance stock units ("PSUs") granted to the Reporting Person on August 19, 2025. Each PSU represents a contingent right to receive one share of the Issuer's Common Stock upon the achievement of certain performance goals. On May 21, 2026, the Compensation Committee of the Issuer certified achievement of such performance goals. As a result, the shares subject to the PSUs shall fully vest on August 19, 2028, subject to the Reporting Person's continued service on such vesting date.

	/s/ Christopher Sullivan, Attorney-in-Fact	05/26/2026
	** 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)

FAQ

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

Avalo Therapeutics reported that Chief Legal Officer Paul Varki acquired 24,300 shares of Common Stock via a performance-based equity award. The transaction reflects compensation rather than an open-market purchase, and the shares are tied to prior performance stock units.

How many Avalo Therapeutics shares does Paul Varki hold after this Form 4?

After this award, Paul Varki holds 27,934 shares of Avalo Therapeutics Common Stock directly. This total includes the 24,300 shares associated with performance stock units whose goals were certified, plus his prior holdings, as reported in the Form 4.

What are the terms of the performance stock units reported by Avalo Therapeutics (AVTX)?

The performance stock units each represent a contingent right to receive one share of Avalo Therapeutics Common Stock. They become earned when specified performance goals are achieved, and then vest fully on a stated future date, subject to continued service by the reporting person.

When will Paul Varki’s Avalo Therapeutics performance-based shares fully vest?

The shares tied to Paul Varki’s performance stock units are scheduled to fully vest on August 19, 2028. Vesting is contingent on his continued service with Avalo Therapeutics through that vesting date, following certification that performance goals were achieved.

Did Paul Varki pay cash for the Avalo Therapeutics shares reported on this Form 4?

No cash payment is indicated for this transaction, as the Form 4 shows a price per share of 0.0000. The 24,300 shares were acquired as part of a grant or award tied to previously granted performance stock units, reflecting compensation structure.