HCW Biologics Inc. reported a net loss of $7.96 million for the year ended December 31, 2025, compared to a net loss of $30.0 million for the previous year. The company's revenue decreased significantly from $2.57 million in 2024 to $54,232 in 2025, primarily due to a strategic decision by Wugen to focus on its CAR-T program, leading to a suspension of the Wugen License. Cost of revenues also decreased, aligning with the reduction in revenue, from $1.61 million to $43,386. The company's research and development expenses decreased by 15% to $5.44 million, while general and administrative expenses increased by 13% to $7.70 million.
A significant factor impacting the company's financial performance was a $5.5 million gain on the extinguishment of a liability related to legal fees, stemming from a settlement agreement with Cooley LLP. The company also recognized a $1.5 million impairment of a long-lived asset related to its building project in Miramar, Florida. The company's nonoperating loss of $1.3 million in 2024 was eliminated in 2025. Interest expense increased from $654,284 to $845,051, while other income decreased slightly from $86,990 to $68,376. The company also reported a $273,422 loss due to the change in fair value of its investment in Wugen shares, offset by a $1.1 million gain due to the change in fair value of a contingent liability.
Operationally, HCW Biologics initiated its first-in-human Phase 1 clinical trial for HCW9302 in alopecia areata and continued preclinical development of HCW11-018b and HCW11-040. The company also launched two commercial-ready molecules, HCW9206 and HCW9201, for use as reagents in immunotherapeutic treatments. A key strategic development was the Amended and Restated License, Research and Co-Development Agreement with Beijing Trimmune Biotech Co., Ltd., which included an exclusive license to HCW11-006 for in vivo applications and an option to license HCW9302 for in vivo applications in China or Asia. As of December 31, 2025, the company had 35 full-time employees, with 25 engaged in research, clinical development, manufacturing, and quality control activities.
Looking ahead, HCW Biologics faces challenges related to its financial position, with substantial doubt about its ability to continue as a going concern. The company plans to address this through additional financing, including potential business development transactions. The company is also subject to ongoing regulatory requirements and the need to protect its intellectual property. The company is also subject to a Mandatory Panel Monitor for a period of one year from February 26, 2026. On March 26, 2026, the Company received a written notice from the Staff which notified the Company that, for the 30 consecutive business days, the Company’s security did not maintain a minimum bid price of $1 per share, in accordance with Nasdaq Listing Rule 5810(c)(3)(A) (“Bid Price Rule”). Due to the fact that the Company effected a 1-for-40 reverse stock split on April 11, 2025, the Company was not afforded a 180-calendar day period to demonstrate compliance. The Company plans to request an appeal of this determination in a timely manner.
About HCW Biologics Inc.
HCW Biologics Inc. is a clinical-stage biopharmaceutical company developing proprietary immunotherapies targeting age-related and chronic inflammatory diseases, including cancer, autoimmune, and neurodegenerative conditions. Utilizing innovative platforms like TOBI and TRBC, it creates multi-functional fusion proteins and immune cell engagers to modulate immune responses. The company focuses on immunotherapies that reduce senescent cells and inflammation, aiming to extend health span and improve quality of life.
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