aibioHCW Biologics reports first-quarter 2026 net income on Trimmune license
Tickers HCWB
The company reported $6.5 million in revenue and net income of $3.5 million for the quarter ended March 31, 2026, and it still states substantial doubt about going concern.
Key facts
- Company
- HCW Biologics Inc. (NASDAQ: HCWB)
- News type
- Company Updates
- Primary source
- HCW Biologics first-quarter 2026 results, Form 8-K filed May 14, 2026
HCW Biologics Inc. (NASDAQ: HCWB) reported financial results and business highlights for the three months ended March 31, 2026 in a press release furnished with a Form 8-K on May 14, 2026. Revenue for the quarter was $6.5 million, compared with $5,065 for the first quarter of 2025. The company reported net income of $3.5 million, compared with a net loss of $2.2 million a year earlier.
The Trimmune license
The main driver of the quarter was the license with Beijing Trimmune Biotech Co., Ltd. for HCW11-006. The closing occurred on March 16, 2026, when the company received the full nonrefundable upfront license fee. The fee consisted of $3.5 million in gross cash proceeds, or $2.9 million net of taxes, and an in-kind payment of a transferable minority equity interest in Trimmune with a fair value of $3.5 million. For the quarter the company recognized $6.5 million in revenue and $470,000 in deferred revenue.
Under the Wugen agreements it has recognized more than $16.0 million in revenue since 2020.
Operating expenses
Research and development expenses were $1.3 million for the quarter, compared with $1.5 million a year earlier, a decrease of $220,763, or 15%.
General and administrative expenses were $1.8 million, compared with $2.2 million a year earlier, a decrease of $394,320, or 18%. The company attributes the change to lower salaries and benefits and lower accretion of a fixed bonus on the Secured Notes. The notes were restructured in May 2025.
Financing and warrant amendment
On February 19, 2026, the company completed a $1.5 million equity financing with an existing investor. It issued pre-funded warrants for 2,477,292 shares at $0.0001 and common warrants for up to 2,477,292 shares at $0.6055. At the same time, the company agreed to amend earlier warrants covering up to 3,020,410 shares, lowering their exercise price from $2.41 to $0.6055 per share. The release says the warrants are subject to stockholder approval.
Going concern and Nasdaq
The release states that, as of March 31, 2026, substantial doubt exists about the company's ability to continue as a going concern for at least 12 months from the issuance date of its audited financial statements, without additional funding or financial support.
On May 5, 2026, the company was granted a hearing to appeal a Nasdaq Listing Qualifications Staff determination to delist its securities from The Nasdaq Capital Market for not meeting the $1.00 minimum bid price requirement. The Staff had not yet said whether the plan was accepted.
Clinical and research milestones
The company said it remains on track to provide a preliminary readout from the first two dose levels of the Phase 1 study of HCW9302 in alopecia areata in the first half of 2026. It reports no dose-limiting toxicities to date and expects the full Phase 1 readout in the fourth quarter of 2026.
The company says it is actively seeking a corporate partner to commercialize HCW9206, a commercial-ready reagent program.
Financial position from the annual report
In the annual report, research and development expense was $5.4 million in 2025 and $6.4 million in 2024. The net loss was $8.0 million in 2025 and $30.0 million in 2024. Cash used in operations was $13.4 million in 2025 and $14.2 million in 2024. Year-end cash and cash equivalents were $4.7 million at December 31, 2024.
Why the profit is not a turnaround
The net income came from a one-time license fee, half of which was an equity stake in Trimmune rather than cash, and the release says all revenue since inception has come from licenses. The company used $13.4 million in operations in 2025, and it still states going-concern doubt. To raise $1.5 million in February it also cut the exercise price on earlier warrants from $2.41 to $0.6055 per share, which dilutes holders, and the warrants need stockholder approval. The Nasdaq delisting appeal is unresolved. For HCW9302, the company reports no dose-limiting toxicities so far but gives no efficacy data, and the full Phase 1 readout is not expected until the fourth quarter of 2026. It is still seeking a partner for HCW9206.