---
schema_version: "secwatch.filing_event.v1"
accession: "0001628280-23-029393"
form_type: "8-K"
ticker: "AVTX"
cik: "0001534120"
company_name: "Avalo Therapeutics, Inc."
filed_at: "2023-08-14T23:59:59+00:00"
generated_at: "2026-06-11T10:57:18.432633+00:00"
event_type: "other_material"
sentiment: "negative"
materiality_score: 0.8
calibrated_materiality_score: 0.8
confidence: "high"
source: SEC EDGAR
---

# Avalo extends loan forbearance to Sept 15, receives Apollo license breach notice for $837K

## Summary
- Second forbearance agreement extends forbearance period to September 15, 2023; company must maintain at least $3M cash in deposit accounts subject to control agreement.
- Company acknowledges MAC default and outstanding loan principal of $13,743,373 plus interest and fees.
- Apollo AP43 Limited alleges breach of license agreement due to $837,522 owed to service provider; dispute resolution initiated.
- Preliminary cash and cash equivalents approximately $5.4M as of August 11, 2023; subject to change.
- Company may need to negotiate settlement with Apollo, but success not guaranteed.

## SEC filing metadata
- accession: 0001628280-23-029393
- form_type: 8-K
- ticker: AVTX
- cik: 0001534120
- company_name: Avalo Therapeutics, Inc.
- filed_at: 2023-08-14T23:59:59+00:00
- event_type: other_material
- sentiment: negative
- materiality_score: 0.8
- calibrated_materiality_score: 0.8
- confidence: high
- sec_items: 1.01, 8.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1534120/000162828023029393/0001628280-23-029393-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1534120/000162828023029393/avtx-20230814.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001628280-23-029393
- JSON: https://secwatch.observer/filing/0001628280-23-029393.json
- Plain text: https://secwatch.observer/filing/0001628280-23-029393.txt

## Key facts
- Material Agreements
  Avalo Therapeutics, Inc. entered into Second Forbearance Agreement with Holders valued at forbearance period extended to September 15, 2023; cash deposit set at $3,000,000 without addition o (effective 2023-08-14).
  - Action: entry
  - Agreement: credit facility
  - Counterparty: Holders
  - Value: forbearance period extended to September 15, 2023; cash deposit set at $3,000,000 without addition o
  - Effective: 2023-08-14
  source text: On August 14, 2023, the Company and the Holders entered into a Second Forbearance Agreement (the “Second Forbearance Agreement”) whereby the forbearance period was extended to September 15, 2023.
  evidence_url: https://www.sec.gov/Archives/edgar/data/1534120/000162828023029393/0001628280-23-029393-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.