Company: HCWB
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0000950170-25-046724
Chunk: 301

Company: HCW Biologics Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1B
Chunk 301
---
1

        Level 2

        Level 3

        Total

        Assets:

        Money market funds
         
        $
        1,626,129

        $
        —

        $
        —

        $
        1,626,129

         Total
         
        $
        1,626,129

        $
        —

        $
        —

        $
        1,626,129

        At December 31, 2024:

        Level 1

        Level 2

        Level 3

        Total

        Assets:

        Money market funds
         
        $
        3,748,325

        $
        —

        $
        —

        $
        3,748,325

         Total
         
        $
        3,748,325

        $
        —

        $
        —

        $
        3,748,325

4. InvestmentsIn December 2020, the Company entered into the Wugen License for limited rights to develop, manufacture and commercialize cellular therapy products based on two of the Company’s fusion protein molecules. As part of the consideration received for the Wugen License, the Company received shares of Wugen common stock, which were recognized at $1.6 million, the fair value of the securities as of December 24, 2020, the effective date for the Wugen License. Initial recognition was at fair value based on level 3 inputs, since there was no public market on which to trade these shares at the time they were received.  The fair value was determined based primarily on the pricing and terms of a third-party financing completed by Wugen in 2020. So long as there continues to be no public market for these securities, the Company will classify this asset as a cost method investment, recorded at cost less impairment adjusted for observable market changes.  As of December 31, 2023 and 2024, Investments had a balance of $1.6 million, reflecting the investment in Wugen, which the Company continues to carry at cost since no public market exists for these securities and no impairment adjustments have been necessary since the acquisition date.  See Note 18.  Subsequent Events.

113

5. Accrued Liabilities and Other Current Liabilities As of December 31, 2023, the Company had a balance of $2.6 million included in Accrued liabilities and other current liabilities in the balance sheet included in the audited financing statements, consisting of