Performance stock units expand Avalo (NASDAQ: AVTX) CEO’s stake

Rhea-AI Filing Summary

Avalo Therapeutics’ CEO Neil Garry Arthur received a large equity award tied to performance. He was granted 100,200 shares of Common Stock as a grant/award acquisition at a price of $0.00 per share, increasing his direct holdings to 190,314 shares.

According to the footnote, this represents performance stock units granted on August 19, 2025. Each unit converts into one share only if specific performance goals are met. The Compensation Committee certified achievement of those goals on May 21, 2026, and the shares are scheduled to fully vest on August 19, 2028, if he remains in service.

Insider Trade Summary

1 transaction reported

Mixed 1 txn

Insider NEIL GARRY ARTHUR

Role Chief Executive Officer

Type	Security	Shares	Price	Value
Grant/Award	Common Stock	100,200	$0.00	--

Holdings After Transaction: Common Stock — 190,314 shares (Direct, null)

Footnotes (1)

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Key Figures

Shares granted: 100,200 shares Price per share: $0.00 per share Total holdings after transaction: 190,314 shares +3 more

6 metrics

Shares granted 100,200 shares Grant/award acquisition on May 21, 2026

Price per share $0.00 per share Grant/award acquisition of Common Stock

Total holdings after transaction 190,314 shares Direct ownership after Form 4 transaction

PSU grant date August 19, 2025 Performance stock units originally granted

Performance certification date May 21, 2026 Compensation Committee certified performance goals

Vesting date August 19, 2028 Shares scheduled to fully vest

Key Terms

performance stock units, PSUs, Compensation Committee, vest

4 terms

performance stock units financial

"Represents performance stock units ("PSUs") granted to the Reporting Person on August 19, 2025."

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.

PSUs financial

"Represents performance stock units ("PSUs") granted to the Reporting Person on August 19, 2025."

PSUs are company shares promised to employees or executives that only become actual stock if the business hits specific performance targets over a set period. For investors, PSUs matter because they link pay to measurable outcomes — similar to a conditional bonus that converts into ownership — which can influence management decisions, dilution of shares, and signals about confidence in future results.

Compensation Committee financial

"On May 21, 2026, the Compensation Committee of the Issuer certified achievement of such performance goals."

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, subject to the Reporting Person's continued service"

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.

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^*

NEIL GARRY ARTHUR

(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)

X	Director		10% Owner
X	Officer (give title below)		Other (specify below)
	Chief Executive 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)		100,200	A	$0	190,314	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 did Avalo Therapeutics (AVTX) disclose about its CEO’s recent equity award?

Avalo Therapeutics reported that CEO Neil Garry Arthur received 100,200 shares of Common Stock as a grant/award acquisition at $0.00 per share, bringing his direct holdings to 190,314 shares after the transaction, according to the Form 4 insider filing.

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

The CEO’s award represents performance stock units granted on August 19, 2025. Each unit gives a right to one share of Common Stock if specified performance goals are met, with the shares scheduled to fully vest on August 19, 2028, subject to continued service.

When were performance goals for Avalo Therapeutics (AVTX) CEO’s PSUs certified?

Avalo Therapeutics’ Compensation Committee certified achievement of the performance goals for the CEO’s performance stock units on May 21, 2026. This certification triggers the vesting schedule that runs until August 19, 2028, assuming the CEO continues in service.

How many Avalo Therapeutics (AVTX) shares does the CEO hold after this Form 4?

Following the reported grant/award acquisition, CEO Neil Garry Arthur directly holds 190,314 shares of Avalo Therapeutics Common Stock. This total includes the 100,200-share award reported in the Form 4 filing for the transaction dated May 21, 2026.

Is the Avalo Therapeutics (AVTX) CEO’s recent equity award an immediate cash transaction?

No, the CEO’s reported grant shows a price of $0.00 per share and represents performance stock units. These units convert to shares only upon performance certification and will fully vest on August 19, 2028, subject to the CEO’s continued service with Avalo Therapeutics.