Company: HCWB
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0000950170-25-046724
Chunk: 115

Company: HCW Biologics Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 8
Chunk 115
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 with contractors that were entered during the two years ended December 31, 2024 for the (i) hybridoma development, (ii) cell line manufacturing productivity improvement, and (iii) research to support pre-clinical studies. Under the hybridoma development and cell line manufacturing productivity improvement agreements, we own all rights to the resulting intellectual property, including the antibodies, sequences, and data. For certain contractors, the Company is obligated to pay one future milestone payment upon filing and acceptance of an IND for each respective human antibody or protein from cell line; however no additional future development or financial obligations are due under these contract research agreements as of December 31, 2023 or 2024. For certain research collaborations agreements, the research intellectual property may be jointly owned or ownership may be based upon inventorship. In those circumstances, the Company has obtained the exclusive option to an exclusive license for the research intellectual property. 

119

14. Income TaxesThe Company did not have a provision for income taxes (current or deferred tax expense) for tax years ended December 31, 2023 and 2024.The following table summarizes the differences between the statutory federal income tax rate and the Company's effective income tax rate (percent data): 

        Rate Reconciliation
         
        2023

        2024

        Net Loss Before Taxes
         
        $
        (24,994,277
        )

        (30,023,814
        )

        Benefit at statutory rate

        (5,248,798
        )

        21.00
        %

        (6,305,001
        )

        21.00
        %

        State tax benefit net of federal benefit

        (1,027,320
        )

        4.11
        %

        (1,303,419
        )

        4.34
        %

        Permanent book/tax differences

        31,046

        (0.12
        %)

        34,362

        (0.11
        %)

        Deferred adjustments & true-up

        —

        0.00
        %

        54,325

        (0.18
        %)

        R&D credit carryforward

        (540,777
        )

        2.16
        %

        (324,035
        )

        1.08
        %

        Change in valuation allowance

        6,785,849

        (27.15