Company: HCWB
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0000950170-25-046724
Chunk: 309

Company: HCW Biologics Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1B
Chunk 309
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9 Plan, the Company primarily granted employees incentive stock options, which had a maximum term of ten years from the date of the grant.  Generally, the incentive stock options granted under the 2019 Plan have a four-year, service-based vesting period.  All of the options granted under the 2019 Plan had an exercise price equal to the fair value of a share of common stock on the date of the grant, according to Company policy. 

117

The 2021 Plan permits the grant of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock, restricted stock units, and stock bonus awards. The 2021 Plan initially reserved 3,444,343 shares of Common Stock, including the transfer of remaining shares reserved under the 2019 Plan.  In addition, the number of shares reserved for issuance under the 2021 Plan will increase automatically on the first day of each fiscal year beginning with the 2022 fiscal year.Under the 2021 Plan, the term of each stock option must be stated in the stock award agreement. In the case of an incentive stock option, the term will be ten years from the date of grant, or such shorter term as may be provided in the stock award agreement. Moreover, in the case of an incentive stock option granted to a participant who owns stock representing more than 10% of the total combined voting power of all classes of our stock or the stock of any of our affiliates, the term of the incentive stock option will be five years from the date of grant or such shorter term as may be provided in the stock award agreement.  Under the 2021 Plan, the Company continues to have a policy to grant options with an exercise price equal to the fair value of a share of common stock, as determined by the closing price on Nasdaq on the grant date.  The following summarizes the Company’s stock option activity for the years ended December 31, 2023 and 2024:   

        Shares

        Weighted
         
        Weighted Average

        Issuable

        Average
         
        Remaining
         
        Aggregate

        under

        Exercise
         
        Contract
         
        Intrinsic

        Options

        Price
         
        Term
         
        Value

        Outstanding at December 31, 2022

        1,867,458

        3.11
         
        8.5 years
         
        $
        671,878