Company: HCWB
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0000950170-25-046724
Chunk: 103

Company: HCW Biologics Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 8
Chunk 103
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  In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segments Disclosures (“ASU No. 2023-07”), which improves segment disclosure requirements, primarily through enhanced disclosure requirements for significant segment expenses. The improved disclosure requirements apply to all public entities that are required to report segment information, including those with only one reportable segment. We adopted ASU No. 2023-07 on January 1, 2024. The adoption had no impact on the reportable segment we have identified, and additional required disclosures have been included in Note 16.  Segment Reporting.

2. Property, Plant and Equipment, NetProperty, plant and equipment, net consists of the following:  

        At December 31,

        2023

        2024

        Land
         
        $
        2,150,038

        $
        2,150,038

        Building

        6,105,570

        6,105,570

        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