Company: HCWB
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0000950170-25-046724
Chunk: 259

Company: HCW Biologics Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1B
Chunk 259
---
2,563,936

    $
    (652,924
    )

    (20
    )%

    Professional services

    1,257,879

    1,171,885

    (85,994
    )

    (7
    )%

    Facilities and office expenses

    634,080

    654,996

    20,916

    3
    %

    Accretion of fixed bonus upon maturity of Senior Notes

    —

    527,304

    527,304

    0
    %

    Depreciation

    266,763

    277,554

    10,791

    4
    %

    Rent and occupancy expense

    156,807

    205,511

    48,704

    31
    %

    Other expenses

    1,247,126

    1,438,410

    191,284

    15
    %

    Total general and administrative expenses
     
    $
    6,779,515

    $
    6,839,596

    $
    60,081

    1
    %

General and administrative expenses increased by $60,081, or 1%, from $6.8 million for the year ended December 31, 2023 to $6.8 million for the year ended December 31, 2024. The increase is mainly attributable to an accretion expense of $527,304 for the accretion of the fixed bonus payment that holders of Secured Notes will receive if the Secured Notes are repaid on their Maturity Date of August 31, 2026 and an increase in other expenses, primarily insurance costs, partially offset by a decrease in salaries and benefits.  

86 

Salaries, benefits and related expenses decreased by $652,924, or 20%, from $3.2 million for the year ended December 31, 2023 to $2.6 million for the year ended December 31, 2024.  There was a $322,214 decrease in salaries and related taxes resulted from a reduction in staff and temporary salary reductions as part of cost reductions which took place in the second quarter.  In addition, there was a $304,174 decrease in performance-based bonuses, resulting from the waiver of performance-based bonuses due to officers of the Company that were earned in 202