Company: HCWB
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0000950170-25-046724
Chunk: 312

Company: HCW Biologics Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1B
Chunk 312
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1,260,942

        1,530,652

        Accrued expenses

        123,408

        37,786

        Capitalized legal fees for patents

        1,235,488

        2,698,931

        Stock-based compensation

        566,396

        792,057

        Charitable contributions

        65

        65

        ROA asset

        106

        —

        Total deferred tax assets

        18,531,500

        26,269,263

        Deferred tax Liabilities:

        Unrealized gain/loss
         
        $
        (5,238
        )
         
        $
        (5,238
        )

        Depreciable assets

        (127,474
        )

        (27,054
        )

        Deferred revenue/costs

        (14,202
        )

        (8,617
        )

        Total deferred tax liability

        (146,914
        )

        (40,909
        )

        Net deferred tax asset

        18,384,586

        26,228,354

        Less: valuation allowance

        (18,384,586
        )

        (26,228,354
        )

        Net deferred tax asset (after valuation allowance)
         
        $
        —

        $
        —

       A valuation allowance is recorded to reduce the deferred tax asset if, based on the weight of the evidence, it is more likely than not that some portion or all of the deferred tax asset will not be realized. As of December 31, 2024, after consideration of all the evidence, both positive and negative, management has determined that a valuation allowance of $26.2 million is necessary to reduce the deferred tax asset to the amount that will more likely than not be realized. During the year ended December 31, 2024, the valuation allowance increased by $7.8 million. As of December 31, 2023 and 2024, the Company had available federal NOL carryforwards of $40.0 million and $62.2 million, respectively. The Company also has available state NOLs carryforwards of approximately $40.0 million and $62.3 million, as of December 31, 2023 and 2024, respectively.  The federal and state NOLs will carryforward indefinitely.  The Federal NOL