Company: HCWB
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0000950170-25-046724
Chunk: 105

Company: HCW Biologics Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 8
Chunk 105
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 value based on level 3 inputs, since there was no public market on which to trade these shares at the time they were received.  The fair value was determined based primarily on the pricing and terms of a third-party financing completed by Wugen in 2020. So long as there continues to be no public market for these securities, the Company will classify this asset as a cost method investment, recorded at cost less impairment adjusted for observable market changes.  As of December 31, 2023 and 2024, Investments had a balance of $1.6 million, reflecting the investment in Wugen, which the Company continues to carry at cost since no public market exists for these securities and no impairment adjustments have been necessary since the acquisition date.  See Note 18.  Subsequent Events.

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5. Accrued Liabilities and Other Current Liabilities As of December 31, 2023, the Company had a balance of $2.6 million included in Accrued liabilities and other current liabilities in the balance sheet included in the audited financing statements, consisting of $392,000 for construction expenses, $105,000 for manufacturing expenses, $1.1 million for legal expenses, $262,000 for clinical expenses, $365,000 in bonus expense, $160,000 for salary expenses, $119,000 for the current portion of long-term debt, $28,500 in lease liability and $68,500 of other liabilities.As of December 31, 2024, the Company had a balance of $981,940 included in Accrued liabilities and other current liabilities in the balance sheet included in the audited financing statements, consisting of $422,000 for construction expenses, $49,000 for manufacturing expenses, $155,000 for legal expenses, $121,000 for clinical expenses, $5,000 in bonus expense, $202,000 for salary expenses and $28,000 of other liabilities.

6.  Debt, Net Cogent Bank LoanOn August 15, 2022, the Company entered into the 2022 Loan Agreement with Cogent Bank, pursuant to which it received $6.5 million in proceeds to purchase a building that will become the Company's new headquarters. The loan is secured by a first priority lien on the building.  The interest-only period was one year followed by 48 months of equal payments of principal and interest beginning on September 15, 2023 based on a 25-year amortization rate.