Company: HCWB
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0000950170-25-046724
Chunk: 113

Company: HCW Biologics Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 8
Chunk 113
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1.91

        Outstanding at December 31, 2024

        1,784,036

        3.3
         
        6.8 years
         
        $
        56,352

        Exercisable at December 31, 2024

        1,336,886

        3.18
         
        6.7 years
         
        $
        56,352

      The exercise price of the underlying stock options and the fair value of the Company’s common stock for stock options as of the reporting date.  The intrinsic value of stock options exercised during the years ended December 31, 2023 and 2024 was $202,917 and $14,484, respectively.  The weighted-average fair value of options granted during the years ended December 31, 2023 and 2024 was $1.42 and $0.85 per share, respectively. For stock option grants with service-based vesting, stock-based compensation expense represents the portion of the grant date fair value of employee stock option grants recognized over the requisite service period of the awards on a straight-line basis, net of estimated forfeitures. For options that vest upon the achievement of performance milestones, the Company estimates fair value at the date of grant and compensation expense is recognized using the accelerated attribution method when it is determined that the performance criteria are probable of being met.In determining the grant date fair value of the stock-based awards, the Company uses the Black-Scholes option-pricing model and assumptions discussed below. Each of these inputs is subjective and its determination generally requires significant judgment.Fair Value of Common Stock—Since the completion of our initial public offering on July 19, 2021, the fair value of each share of common stock underlying stock option grants is based the quoted market price on the primary stock exchange on which our common stock is traded on the day the stock award or option is granted.Expected term—The expected term of stock options is determined using the “simplified” method, whereby the expected life equals the arithmetic average of the vesting term and the original contractual term of the option due to the Company’s lack of sufficient historical data. 

118

Expected volatility—The expected volatility was derived from the historical stock volatilities of comparable peer public companies within our industry. Risk-free interest rate—The risk-free interest rate is based on the U.S. Treasury Bond in effect at the time of grant for periods corresponding with the expected term