Company: HCWB
Filing Date: 2025-05-09
Form Type: S-1
Source: 0001193125-25-116745
Chunk: 34

Company: HCW Biologics Inc.
Filing Date: 2025-05-09
Form: S-1
Chunk 34
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 the requisite stockholder approvals to ensure it has the ability to take the certain of the actions that are part of its compliance plan, such approvals
were obtained. There can be no assurance that the Company will be able to comply within the period of time granted by the Panel.

The Company’s balance sheet has liabilities that will require payment, and use of funds for this purpose will make less funding available for operations and clinical development.

Included in the Company’s balance sheet as of December 31, 2024, are $17.8 million of obligations included in accounts payable that
represent amounts past due. These include $13.5 million due for legal fees incurred as a result of mounting a defense for the Company and our Chief Executive Officer in a long-running arbitration proceeding that was settled on July 13, 2024.
After year end, we received a $2.0 million insurance payment which was used to offset obligations for legal fees for our Chief Executive Officer. Also included in outstanding obligations is $4.3 million of obligations included in accounts payable
for amounts owed for construction of a manufacturing facility that the Company is building at a property it owns in Miramar, Florida (the “Property”). As of December 31, 2024, certain subcontractors had filed mechanics liens related
to unpaid invoices issued in connection with the facility. On December 16, 2024, BE&K Building Group, the prime contractor on the project, sent the Company a draft, unfiled lawsuit and requested the parties discuss payment. On
January 22, 2025, the Company entered into a forbearance agreement with BE&K to allow the Company until March 31, 2025, to continue efforts to find the financing required to complete the construction and renovation of the Property.
Pursuant to the forbearance agreement, the Company made an initial payment of $1.0 million in partial satisfaction of amounts owing to BE&K and its subcontractors. As reported in the Company’s Current Report on Form 8-K on April 22,
2025, BE&K and certain of its subcontractors initiated litigation in which they have asserted claims against the Company alleging, among other things, breach of contract with respect to

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amounts past due in connection with construction and renovation of the Property. The Company continues to pursue financing alternatives to provide the funding needed to come current in past due
amounts and complete the construction and renovation of the Property.

Risks Related to Ownership of Our Common Stock