Company: HCWB
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0000950170-25-046724
Chunk: 114

Company: HCW Biologics Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 8
Chunk 114
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.Dividend yield—The expected dividend yield is 0% because the Company has not historically paid, and does not expect, for the foreseeable future, to pay a dividend on its common stock.For the years ended December 31, 2023 and 2024, the fair value of employee and director stock option awards was estimated at the date of grant using a Black-Scholes option-pricing model with the following assumptions: 

        Years Ended December 31,

        2023
         
        2024

        Expected term (years)
         
        5.71
         
        5.5

        Expected volatility
         
        89.90%
         
        92.93%

        Risk-free interest rate
         
        3.99%
         
        4.22%

        Dividend yield
         
        —
         
        —

        Fair value underlying common stock
         
        $1.42
         
        $0.85
       
      For the year ended December 31, 2023, for options with service-based vesting conditions, the Company recognized $65,941 of employee stock-based compensation expense in research and development expenses and $937,808 of employee stock-based compensation in general and administrative expenses in the statement of operations included in the audited financial statements.  For the year ended December 31, 2024, for options with service-based vesting conditions, the Company recognized $61,250 of employee stock-based compensation expense in research and development expenses and $947,762 of employee stock-based compensation in general and administrative expenses in the statement of operations included in the audited financial statements. As of December 31, 2024, the Company had an aggregate of $799,393 of unrecognized employee stock-based compensation cost for options with service-based vesting, which is expected to be recognized over a weighted average vesting period of 0.72 years. 

12. Employee Benefit PlanThe Company offers a defined contribution savings plan (the “Benefit Plan”) under Section 401 of the Internal Revenue Code for all eligible employees. The Benefit Plan allows for discretionary contributions which are limited to the maximum allowable for federal tax purposes. The total expense related to the discretionary payments made by the Company to the Benefit Plan for the years ended December 31, 2023 and 2024 was $184,214 and $160,851, respectively.

13. Collaborative ArrangementsThe Company has certain contract research agreements