Company: HCWB
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0000950170-25-046724
Chunk: 104

Company: HCW Biologics Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 8
Chunk 104
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 $644,616, of which $390,209 is included in research and development expenses. During the year ended December 31, 2023 and 2024, the Company capitalized interest expense of $95,627 and $189,416, respectively, which is presented within Construction in progress.

3. Fair Value of Financial Instruments The carrying amount of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, U.S. government backed securities with maturity dates up to one year, accounts payable and accrued liabilities, are measured at approximate fair value due to their short-term maturities.  Money market funds included in cash and cash equivalents and U.S. government-backed securities are measured at fair value based on quoted prices in active markets, which are considered Level 1 inputs.  No transfers between levels occurred during the periods presented. The following table presents the Company’s assets which were measured at fair value at December 31, 2023 and 2024:   

        At December 31, 2023:

        Level 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