Company: HCWB
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0000950170-25-046724
Chunk: 300

Company: HCW Biologics Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1B
Chunk 300
---
570

        Property

        1,767,231

        1,767,231

        Laboratory equipment

        2,146,637

        2,146,637

        Office equipment

        225,369

        225,369

        Furniture and fixtures

        292,045

        292,045

        Leasehold improvements

        354,276

        354,276

        Construction in progress

        10,443,859

        13,545,161

        $
        23,485,025

        $
        26,586,327

        Less: Accumulated depreciation and amortization

        (3,031,841
        )

        (3,676,458
        )

        Property, plant and equipment, net
         
        $
        20,453,184

        $
        22,909,869

112

Construction in progress of $13.5 million represents direct costs of construction and equipment incurred for the Company’s new research lab and manufacturing facilities, that are not ready for their intended use.  Depreciation and amortization expense for the year ended December 31, 2023 was $794,619, of which $541,679 is included in research and development expenses. Depreciation and amortization expense for the year ended December 31, 2024 was $644,616, of which $390,209 is included in research and development expenses. During the year ended December 31, 2023 and 2024, the Company capitalized interest expense of $95,627 and $189,416, respectively, which is presented within Construction in progress.

3. Fair Value of Financial Instruments The carrying amount of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, U.S. government backed securities with maturity dates up to one year, accounts payable and accrued liabilities, are measured at approximate fair value due to their short-term maturities.  Money market funds included in cash and cash equivalents and U.S. government-backed securities are measured at fair value based on quoted prices in active markets, which are considered Level 1 inputs.  No transfers between levels occurred during the periods presented. The following table presents the Company’s assets which were measured at fair value at December 31, 2023 and 2024:   

        At December 31, 2023:

        Level