Company: HCWB
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0000950170-25-046724
Chunk: 267

Company: HCW Biologics Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1B
Chunk 267
---
 biologics and upgraded research and development facilities, including risks of cost overruns and delays, and ability to obtain additional financing, if needed; and 

•costs and timing of future commercialization activities, including product manufacturing, marketing, sales, and distribution, for any of our product candidates for which we receive regulatory approval.

A change in the outcome of any of these or other factors with respect to the clinical development and commercialization of our product candidates could significantly change the costs and timing associated with the development of that product candidate. Further, our operating plan may change, and we may need additional funds to meet operational needs and capital requirements for clinical trials and other research and development expenditures.

Summary of Statements of Cash Flows

The following table summarizes our cash flows for the years ended December 31, 2023 and 2024: 

    Years EndedDecember 31,

    2023

    2024

    Cash used in operating activities
     
    $
    (22,514,121
    )
     
    $
    (14,227,428
    )

    Cash provided by (used in) investing activities

    3,797,400

    (261,617
    )

    Cash (used in) provided by financing activities

    (14,534
    )

    15,568,516

    Net (decrease) increase in cash and cash equivalents
     
    $
    (18,731,255
    )
     
    $
    1,079,471

Operating Activities

Net cash used in operating activities was $22.5 million for the year ended December 31, 2023 and $14.2 million for the year ended December 31, 2024.

Cash used in operating activities for the year ended December 31, 2023 consisted primarily of a net loss of $25.0 million, which includes a $5.3 million noncash charge for reserve for credit losses related to the full impairment of the interest reserve deposit.  Other cash used in operating activities includes $5.3 million to establish the interest reserve account which occurred in April 2023; $1.1 million cash decrease arising from an increase in accounts receivable; and $326,742 cash decrease arising from a decrease in a lease liability.  These uses were partially offset primarily by a $432,410 cash increase arising from a decrease in prepaid expenses and other assets; a $1.6 million cash increase arising from an increase