Company: HCWB
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0000950170-25-046724
Chunk: 118

Company: HCW Biologics Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 8
Chunk 118
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, and $25,000 purchased by Rick S. Greene, member of the board of directors. 

16. Segment Reporting HCW Biologics, Inc. has one reportable segment: life science. The life science segment consists of operations focused on discovering and developing novel immunotherapies to lengthen health span by disrupting the link between chronic, low-grade inflammation and diseases. The Company’s CODM is the chief executive officer. The accounting policies of the life science segment are the same as those described in the summary of significant accounting policies. The CODM assesses performance for the life science segment based on net loss, which is reported on the statement of operations as net loss. The measure of segment assets is reported on the balance sheet as total assets. The Company has not generated any product revenue from commercial product sales of internally-developed immunotherapeutic products for the treatment of diseases, as no products have been approved for commercial sale as of December 31, 2024. The Company expects to continue to incur significant expenses and operating losses for the foreseeable future as it advances molecules through all stages of development and clinical trials and, ultimately, seek approval for commercial sale. As such, the CODM uses cash forecast models in deciding how to invest into the life science segment. Such cash forecast models are reviewed to assess the entity-wide operating results and performance in conjunction with monitoring the results of R&D experiments for preclinical compounds and clinical trial data for clinical-stage compounds. The assessment of results of preclinical and clinical studies are critical to the allocation of resources by the CODM. 

121

The tables below summarizes the significant expense categories regularly reviewed by the CODM for the years ended December 31, 2023 and 2024: 

        Years EndedDecember 31,

        2023

        2024

        Revenues:

        Revenues
         
        $
        2,841,794

        $
        2,566,792

        Cost of revenues

        (2,281,434
        )

        (1,607,389
        )

        Net revenues

        560,360

        959,403

        Operating expenses:

        Research and development expenses

        Salaries, benefits and related expenses

        2,940,979

        2,797,370

        Manufacturing and materials

        1,280,351

        1,425,734

        Preclinical expenses

        1,607,601