HCWB · HCW Biologics Inc.

HCW Biologics swung to a Q1 2026 net income of $3.5 million from a $2.2 million loss in Q1 2025, primarily due to $6.5 million in revenue recognition from the March 16 closing of an exclusive worldwide license for HCW11-006 with Beijing Trimmune Biotech. This included $3.5 million gross cash ($2.9 million net) and $3.5 million in transferable minority equity, marking a key business development milestone. Revenues have now exceeded $16 million cumulatively from licensing since 2020, with prior Wugen contributions winding down. Operating expenses declined, with R&D at $1.3 million (down 15% from lower manufacturing/clinical costs) and G&A at $1.8 million (down 18% from reduced stock compensation and note restructuring). Legal expenses flipped to a $6,850 net cost from a $1.7 million recovery, while interest expense halved. Balance sheet shows cash at $1.2 million (down from $2.0 million year-end 2025), total assets up to $27.3 million driven by $4.8 million Trimmune equity investment, and equity rising to $5.8 million amid reduced liabilities. Clinically, HCW9302 Phase 1 for alopecia areata advances with no dose-limiting toxicities, two sites enrolling on schedule, preliminary data due H1 2026 and full readout Q4. HCW9206 publication in Science Advances bolsters CAR-T reagent potential, seeking partners. Financing included February's $1.5 million equity via warrants (subject to approval). Despite progress, going concern doubt remains without further funding, and a Nasdaq delisting appeal hearing occurred May 5 over $1.00 bid compliance.