HCW Biologics (HCWB) 10-Q 13 May 22 2022 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2022	May 12, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Registrant Name	HCW Biologics Inc.
Entity Central Index Key	0001828673
Current Fiscal Year End Date	--12-31
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-5024477
Entity Address, Address Line One	2929 N
Entity Address, Address Line Two	Commerce Parkway
Entity Address, City or Town	Miramar
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33025
City Area Code	954
Local Phone Number	842–2024
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Title of 12(b) Security	Common Stock
Trading Symbol	HCWB
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		35,796,457
Entity File Number	001-40591

Condensed Balance Sheets

Condensed Balance Sheets - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 18,117,074	$ 11,730,677
Short-term investments	16,969,298	24,983,520
Accounts receivable, net	553,007	133,000
Prepaid expenses	2,020,545	2,196,557
Other current assets	245,617	1,436,616
Total current assets	37,905,541	40,480,370
Investments	11,351,310	11,522,050
Property and equipment, net	1,012,402	1,119,091
Other assets	686,414	393,318
Total assets	50,955,667	53,514,829
Current liabilities:
Accounts payable	743,120	223,664
Accrued liabilities and other current liabilities	674,296	2,097,925
Total current liabilities	1,417,416	2,321,589
Other Liabilities	139,597	0
Total Liabilities	1,557,013	2,321,589
Commitments and contingencies (Note 7)
Stockholders' equity:
Common Stock, Value, Issued	3,578	3,577
Additional paid-in capital	82,089,626	81,827,006
Accumulated deficit	(32,694,550)	(30,637,343)
Total stockholders' equity	49,398,654	51,193,240
Total liabilities and stockholders' equity	$ 50,955,667	$ 53,514,829

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
Condensed Balance Sheets [Line Items]
Common Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	250,000,000	250,000,000
Common Stock, Shares, Issued	35,779,489	35,768,264

Condensed Statements of Operati

Condensed Statements of Operations - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenues:
Revenues	$ 3,117,545	$ 0
Cost of Revenues	(1,328,076)	0
Net Revenues	1,789,469	0
Operating expenses:
Research and development	1,789,678	2,329,812
General and administrative	1,880,601	1,082,360
Total operating expenses	3,670,279	3,412,172
Loss from operations	(1,880,810)	(3,412,172)
Interest and other income, net	(176,397)	568,176
Net loss	(2,057,207)	(2,843,996)
Less: cumulative preferred dividends earned in the period	0	(477,358)
Net loss available for distribution to common stockholders	$ (2,057,207)	$ (3,321,354)
Net loss per share, basic and diluted	$ (0.06)	$ (0.69)
Weighted average shares outstanding, basic and diluted	35,778,032	4,839,871

Condensed Statements of Changes

Condensed Statements of Changes In Redeemable Preferred Stock And Stockholders' Deficit - USD ($)	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit	Series A Redeemable preferred stock [Member]	Series A Redeemable preferred stock [Member]Preferred Stock	Series B Redeemable preferred stock [Member]	Series B Redeemable preferred stock [Member]Preferred Stock	Series C Redeemable preferred stock [Member]	Series C Redeemable preferred stock [Member]Preferred Stock
Beginning balance (in shares) at Dec. 31, 2020		4,793,393			6,316,691		12,012,617		5,439,112
Beginning balance , Value at Dec. 31, 2020	$ (16,718,397)	$ 480		$ (16,718,877)		$ 6,140,792		$ 13,680,306		$ 11,294,301
Issuance of Class A Common Stock upon exercise of stock options , Shares		88,702
Issuance of Class A Common Stock upon exercise of stock options , Value	13,385	$ 8	13,377
Stock-based compensation , Value	641		641
6% cumulative dividends on redeemable preferred stock , Value	(477,358)		(14,018)	(463,340)
Cumulative dividends on redeemable preferred stock , Value					$ 95,992		$ 213,971		$ 167,395
Redeemable Preferred Stock , Accretion of issuance costs , Value							$ 3,929		$ 10,200
Net loss	(2,843,996)			(2,843,996)
Ending balance (in shares) at Mar. 31, 2021		4,882,095			6,316,691		12,012,617		5,439,112
Ending balance , Value at Mar. 31, 2021	(20,025,725)	$ 488		(20,026,213)		$ 6,236,784		$ 13,898,206		$ 11,471,896
Beginning balance (in shares) at Dec. 31, 2021		35,768,264
Beginning balance , Value at Dec. 31, 2021	51,193,240	$ 3,577	81,827,006	(30,637,343)
Issuance of Class A Common Stock upon exercise of stock options , Shares		11,225
Issuance of Class A Common Stock upon exercise of stock options , Value	2,273	$ 1	2,272
Stock-based compensation , Value	260,348		260,348
Net loss	(2,057,207)			(2,057,207)
Ending balance (in shares) at Mar. 31, 2022		35,779,489
Ending balance , Value at Mar. 31, 2022	$ 49,398,654	$ 3,578	$ 82,089,626	$ (32,694,550)

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net loss	$ (2,057,207)	$ (2,843,996)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	142,785	158,806
Stock-based compensation	260,348
Gain on extinguishment of debt	0	567,311
Unrealized loss on investments, net	185,122	0
Reduction in the carrying amount of right of use asset	209	0
Changes in operating assets and liabilities:
Accounts receivable	(420,007)	1,200,000
Prepaid expenses and other assets	1,380,215	150,356
Accounts payable and other liabilities	(1,071,084)	713,055
Operating lease liability	(12,543)
Net cash used in operating activities	(1,592,162)	(1,489,802)
Cash flows from investing activities:
Purchases of property and equipment	(23,554)	(23,279)
Proceeds for sale or maturities of short-term investments	(7,999,840)	0
Net cash (used in) provided by investing activities	7,976,286	(23,279)
Cash flows from financing activities:
Proceeds from issuance of common stock	2,273	13,385
Offering Cost		100,000
Net cash (used in) provided by financing activities	2,273	(86,615)
Net changes in cash and cash equivalents	6,386,397	(1,599,696)
Cash and cash equivalents at the beginning of the period	11,730,677	8,455,834
Cash and cash equivalents at the end of the period	18,117,074	6,856,138
Non-cash operating, investing and financing activities:
Cumulative dividends earned, accrued and forfeited in the reporting period		477,358
PPP loan forgiveness		567,311
Offering costs		200,000
Operating lease liabilities arising from obtaining right-of-use assets	$ 306,509

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Summary of Significant Accounting Policies	1. Organization and Summary of Significant Accounting Policies Organization HCW Biologics Inc. (the “Company”) is a biopharmaceutical company focused on discovering and developing novel immunotherapies to lengthen health span by disrupting the link between chronic, low-grade inflammation and age-related diseases. The Company believes age-related low-grade chronic inflammation, or “inflammaging,” is a significant contributing factor to several chronic diseases and conditions, such as cancer, cardiovascular disease, diabetes, neurodegenerative diseases, and autoimmune diseases. The Company is located in Miramar, Florida and was incorporated in the state of Delaware in April 2018. Reverse Stock Split In June 2021, the Company’s board of directors and stockholders approved an amendment to the Company’s certificate of incorporation to effect a 3-for-7 reverse stock split for all issued and outstanding common stock , redeemable preferred stock, and stock options, that was effective on June 25, 2021 (the “Reverse Stock Split”). The number of authorized shares and the par values of the common stock and redeemable preferred stock were not adjusted as a result of the Reverse Stock Split. The accompanying condensed interim financial statements and notes to the condensed interim financial statements give retroactive effect to the Reverse Stock Split for all periods presented. Liquidity As of March 31, 2022, the Company had not generated any revenue from commercial product sales of its internally-developed immunotherapeutic products for the treatment of cancer and other age-related diseases. In the course of its development activities, the Company has sustained operating losses and expects to continue to incur operating losses for the foreseeable future. Since inception, substantially all the Company’s activities have consisted of research, development, establishing large-scale cGMP production for clinical trials, and raising capital. The Company's total revenues to date have been generated principally from the Wugen License and manufacturing and supply arrangement with Wugen. In the three months ended March 31, 2022, the Company recognized revenues of $ 3.1 million from manufacturing and supply of materials for Wugen. On July 19, 2021, the Company’s registration statement on Form S-1 for its initial public offering (“IPO”) was declared effective by the Securities and Exchange Commission (the “SEC”). On July 22, 2021, the Company closed its IPO with the sale of 7,000,000 shares of common stock, at a public offering price of $ 8.00 per share, resulting in net proceeds of approximately $ 49.2 million, after deducting underwriting discounts and commissions and estimated offering expenses paid by the Company. The IPO met the provisions for mandatory conversion of all shares of redeemable preferred stock according to the designations for these securities. As a result of the conversion, the Company issued 23,768,416 shares of common stock to the former holders of redeemable preferred stock. In addition, as a result of conditions for mandatory conversion, the Company was relieved of its obligation to pay $ 2.8 million in cumulative dividends that were accrued and unpaid on the conversion date. As of March 31, 2022 , the Company had cash and cash equivalents of $ 18.1 million, short-term investments of $ 17.0 million held in U.S. government-backed securities, and long-term investments of $ 9.8 million held in U.S. government-backed securities. Since inception to March 31, 2022, the Company incurred cumulative net losses of $ 30.0 million. Management expects to incur additional losses in the future to conduct product research and development and recognizes the need to raise addition al capital to fully implement its business plan. The Company intends to raise capital through the issuance of additional equity financing and/or third-party collaboration funding. However, if such financing is not available at adequate levels, the Company will need to reevaluate its operating plan and may be required to delay the development of some of its products. Summary of Significant Accounting Policies Basis of Presentation Unaudited Interim Financial Information The accompanying unaudited condensed interim financial statements as of March 31, 2022 and for the three months ended March 31, 2021 and 2022 have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and pursuant to Article 10 of Regulation S-X of the Securities Act of 1933, as amended (the “Securities Act”). Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. These unaudited condensed interim financial statements include only normal and recurring adjustments that the Company believes are necessary to fairly state the Company’s financial position and the results of its operations and cash flows. The results for the three months ended March 31, 2022 are not necessarily indicative of the results expected for the full fiscal year or any subsequent interim period. The condensed balance sheet at December 31, 2021 has been derived from the audited financial statements at that date but does not include all disclosures required by U.S. GAAP for complete financial statements. Because all of the disclosures required by U.S. GAAP for complete financial statements are not included herein, these unaudited condensed interim financial statements and the notes accompanying them should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2021 which appear in the Company’s Annual Report on Form 10-K (No. 333-256510) filed for the year ended December 31, 2021 with the Securities and Exchange Commission (the "SEC") on March 29, 2022 and in other filings with the SEC. Revenue Recognition The Company accounts for revenues in accordance with Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (“Topic 606”). To determine revenue recognition for arrangements that fall within the scope of Topic 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that it will collect the consideration it is entitled to in exchange for the goods or services transferred to the customer. At contract inception, the Company assesses the goods or services promised within each contract, determines those that are performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. To date, the Company's revenues have been generated solely from the Wugen License. The Wugen License includes licenses of intellectual property, cost reimbursements, upfront signing fees, milestone payments and royalties on future licensee’s product sales. In addition, the Company and Wugen have an agreement for supply of materials. License Grants: For out-licensing arrangements that include a grant of a license to the Company’s intellectual property, the Company considers whether the license grant is distinct from the other performance obligations included in the arrangement. For licenses that are distinct, the Company recognizes revenues from nonrefundable, upfront payments and other consideration allocated to the license when the license term has begun and the Company has provided all necessary information regarding the underlying intellectual property to the customer, which generally occurs at or near the inception of the arrangement. Milestone and Contingent Payments: At the inception of the arrangement and at each reporting date thereafter, the Company assesses whether it should include any milestone and contingent payments or other forms of variable consideration in the transaction price using the most likely amount method. If it is probable that a significant reversal of cumulative revenue would not occur upon resolution of the uncertainty, the associated milestone value is included in the transaction price. At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of each such milestone and any related constraint and, if necessary, adjusts its estimate of the overall transaction price. Since milestone and contingent payments may become payable to the Company upon the initiation of a clinical study or filing for or receipt of regulatory approval, the Company reviews the relevant facts and circumstances to determine when the Company should update the transaction price, which may occur before the triggering event. When the Company updates the transaction price for milestone and contingent payments, the Company allocates the changes in the total transaction price to each performance obligation in the agreement on the same basis as the initial allocation. Any such adjustments are recorded on a cumulative catch-up basis in the period of adjustment, which may result in recognizing revenue for previously satisfied performance obligations in such period. The Company’s licensees will generally pay milestones payments subsequent to achievement of the triggering event. Materials Supply: The Company provides clinical and research grade materials so that licensees may develop products based on the licensed molecules. The Company plans to enter into commercialization supply agreements when licensees enter the commercial stage of their company. The amounts billed are recognized as revenue as the performance obligations are satisfied by the Company, once the Company determines that a contract exists. On June 18, 2021, the Company entered into a master services agreement ("MSA") for the supply of materials for clinical development of licensed products. On March 14, 2022, the Company entered into statements-of-work ("SOWs") contemplated under the MSA for all current and historical purchases of clinical and research grade materials. The Company determined that upon entering into the SOWs all requirements were met to qualify as a contract under Topic 606. No contract existed in prior reporting periods and all amounts received for the supply of materials were recorded as deferred revenue. The manufacturing of the clinical and research materials supplied by the Company each represents a single performance obligation that is satisfied over time. The Company recognizes revenue using an input method based on the costs incurred relative to the total expected cost, which determines the extent of the Company's progress toward completion. As part of the accounting for these arrangements, the Company must develop estimates and assumptions that require judgement to determine the progress towards completion. The Company reviews its estimate of the progress toward completion based on the best information available to recognize the cumulative progress toward completion as of the end of each reporting period, and makes revisions to such estimates, if facts and circumstances change during each reporting period. For the three months ended March 31, 2022, the Company recognized $ 3.1 m illion in revenue related to sale of development supply materials. Deferred Revenue Deferred revenue represents amounts billed, or in certain cases, yet to be billed to the Company’s customer for which the related revenues have not been recognized because one or more of the revenue recognition criteria has not been met. The Company had deferred revenue of $ 239,000 and nil as of March 31, 2021 and 2022, respectively. All deferred revenue balances are current liabilities and reported within Accrued liabilities and other current liabilities. Investments The Company holds a minority interest in Wugen which is accounted for using the measurement alternative whereby the investment is recorded at cost less impairment, adjusted for observable price changes in orderly transactions for an identical or similar investment of the same investee. No impairment has been recognized. As of March 31, 2021 and 2022, the Company included $ 1.6 million for the investment in Wugen in Investments in the accompanying condensed balance sheet. The Company invests net proceeds of its IPO in bills and notes issued by the U.S. Treasury which are classified as trading securities. As of March 31, 2022, the Company held $ 17.0 million in U.S. Treasury bills included in Short-term investments and $ 9.8 million in U.S. Treasury notes included in Investments in the accompanying condensed balance sheet. Operating Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in Other assets, Accrued Liabilities and other current liabilities, and Other liabilities on its balance sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. The Company has a lease agreement with lease and non-lease components, which are accounted for separately. Net Loss Per Share Basic loss per share of common stock is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during each period. Diluted loss per share of common stock includes the effect, if any, from the potential exercise of stock options and unvested shares of restricted stock, which would result in the issuance of incremental shares of common stock. For diluted net loss per share, the weighted-average number of shares of common stock is the same for basic net loss per share due to the fact that when a net loss exists, dilutive securities are not included in the calculation as the impact is anti-dilutive. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (“Topic 842”), which requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases. The Company adopted Topic 842 as of January 1, 2022. Effective March 1, 2022, the Company entered into noncancelable operating leases for its current location with a two-year term. These are the only leases in scope of Topic 842 or above the Company's capitalization threshold.

Accrued Liabilities and Other C

Accrued Liabilities and Other Current Liabilities	3 Months Ended
	Mar. 31, 2022
Payables and Accruals [Abstract]
Accrued Liabilities and Other Current Liabilities	2. Accrued Liabilities and Other Current Liabilities As of December 31, 2021 , the Company had a balance of $ 2.1 million in Accrued liabilities and other current liabilities, consisting of $ 1.8 million related to deferred revenue, $ 48,750 related to manufacturing materials, $ 51,000 related to legal fees, and $ 50,000 for other expenses. On January 8, 2021, the Company received full loan forgiveness of $ 567,311 for obligations related to the PPP loan. The Company accounted for the PPP loan as debt, and the loan forgiveness was accounted for as a debt extinguishment. As of March 31, 2022, the Company had a balance of $ 674,000 in Accrued liabilities and other current liabilities, consisting of $ 229,000 related to salary and benefits, $ 167,000 related to short term lease liability, and $ 278,000 related to other current liabilities which were primarily accrued legal fees and clinical fees.

Redeemable Preferred Stock

Redeemable Preferred Stock	3 Months Ended
	Mar. 31, 2022
Equity [Abstract]
Redeemable Preferred Stock	3. Redeemable Preferred Stock On July 22, 2021, the Company closed on its IPO, and the requirements for mandatory conversion were met. All outstanding shares of Series A, Series B, and Series C Preferred Stock converted into an equal number of shares of common stock. As a result, the rights, preferences, and terms ascribed to these shares are no longer applicable. Cumulative dividends of $ 2.8 million accrued as of the conversion date were forfeited and such forfeiture was recognized through Additional paid-in capital. At December 31, 2021 and March 31, 2022 , the Company has 10,000,000 shares of preferred stock authorized and no shares issued.

Net Loss Per Share

Net Loss Per Share	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Net Loss Per Share	4. Net Loss Per Share The following table summarizes the computation of the basic and diluted net loss per share: Three Months Ended March 31, 2021 2022 Numerator: Net loss $ ( 2,843,996 ) $ ( 2,057,207 ) Less: cumulative preferred dividends earned in the period ( 477,358 ) — Net loss available for distribution to common stock holders $ ( 3,321,354 ) $ ( 2,057,207 ) Denominator: Weighted-average common shares outstanding 4,839,871 35,778,032 Net loss per share, basic and diluted $ ( 0.69 ) $ ( 0.06 ) The following table summarizes the outstanding potentially dilutive securities that have been excluded in the calculation of diluted net loss per share because their inclusion would be anti-dilutive: At March 31, 2021 2022 Redeemable Preferred Stock 23,768,416 — Common stock options 653,345 1,745,630 Potentially diluted securities 24,421,761 1,745,630

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	5. 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, 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, 2021 and March 31, 2022: At December 31, 2021: Level 1 Level 2 Level 3 Total Assets: Money market funds $ 9,506,499 $ — $ — $ 9,506,499 Treasury bills 24,983,520 — — 24,983,520 Treasury notes 9,922,300 — — 9,922,300 Total $ 44,412,319 $ — $ — $ 44,412,319 At March 31, 2022: Level 1 Level 2 Level 3 Total Assets: Money market funds $ 16,294,805 $ — $ — $ 16,294,805 Treasury bills 16,969,298 — — 16,969,298 Treasury notes 9,751,560 — — 9,751,560 Total $ 43,015,663 $ — $ — $ 43,015,663

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	6. Income Taxes The Company computes its quarterly income tax expense/(benefit) by using a forecasted annual effective tax rate and adjusts for any discrete items arising during the quarter. The Company did no t have a provision for income taxes (current or deferred tax expense) as of December 31, 2021 and March 31, 2022. The Company will continue to maintain a 100 % valuation allowance on total deferred tax assets. The Company believes it is more likely than not that the related deferred tax asset will not be realized. As a result, the Company’s effective tax rate will remain at 0.00 % because no items either estimated or discrete items would impact the tax provision.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	7. Commitments and Contingencies Operating Leases The Company has operating leases for approximately 12,250 square feet of space located in Miramar, Florida. The leases have a two-year term which commenced on March 1, 2022 and will terminate on February 29, 2024 . Upon the commencement of the leases, the Company used its incremental borrowing rate of 6.0 % to determine the amounts to recognize for a ROU asset and a lease liability. There are no obligations under finance leases. The components of the lease expense for the three months ended March 31, 2022 were as follows: Three Months Ended 2022 Operating lease cost $ 13,929 Supplemental cash flow information related to lease was as follows: Three Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows $ 13,929 Right-of-use assets obtained in exchange for lease obligations: Operating lease $ 12,543 As of March 31, 2022, the supplemental balance sheet information related to leases were as follows: March 31, 2022 Operating lease right-of-use assets $ 306,300 Other current liabilities $ 166,912 Operating lease liabilities, net of current portion 139,597 Total operating lease liabilities $ 306,509 As of March 31, 2022, the remaining lease payments were as follows: 2022 (remaining 9 months) $ 125,358 2023 171,322 2024 28,693 Total future minimum lease payments $ 325,373 For the three months ended March 31, 2021 and 2022, rent expense recognized by the Company was $ 31,516 and $ 38,883 , respectively, of which $ 14,431 and $ 19,207 , respectively, is included in research and development in the accompanying condensed statements of operations . Contractual Commitments The Company operates under the provisions of agreements with a third-party global contract development and manufacturer of biologics for the manufacture of the Company’s proprietary molecules for use in clinical trials. At December 31, 2021, future payment obligations under such agreements were $ 2.5 million of which approximately $ 181,600 was paid in January 2022. A t March 31, 2022, future payment obligations under such agreements were $ 2.1 million. Legal Management has no knowledge of any pending or unasserted claims against the Company. Other In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (COVID-19) as a pandemic, which continues to spread throughout the United States and the world. The spread of COVID-19 has caused significant volatility in the U.S. and international markets. There is significant uncertainty around the breadth and duration of business disruptions related to COVID-19, as well as its impact on the U.S. and international economies and, as such, the Company is unable to determine if it will have a material impact to its operations.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2022
Subsequent Events [Abstract]
Subsequent Events	8. Subsequent Events Subsequent events have been evaluated through the date the financial statements were available to be issued. As of such date, there were no material subsequent events identified that required recognition or disclosure other than as disclosed below or in the footnotes herein.

Organization and Summary of S_2

Organization and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation Unaudited Interim Financial Information The accompanying unaudited condensed interim financial statements as of March 31, 2022 and for the three months ended March 31, 2021 and 2022 have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and pursuant to Article 10 of Regulation S-X of the Securities Act of 1933, as amended (the “Securities Act”). Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. These unaudited condensed interim financial statements include only normal and recurring adjustments that the Company believes are necessary to fairly state the Company’s financial position and the results of its operations and cash flows. The results for the three months ended March 31, 2022 are not necessarily indicative of the results expected for the full fiscal year or any subsequent interim period. The condensed balance sheet at December 31, 2021 has been derived from the audited financial statements at that date but does not include all disclosures required by U.S. GAAP for complete financial statements. Because all of the disclosures required by U.S. GAAP for complete financial statements are not included herein, these unaudited condensed interim financial statements and the notes accompanying them should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2021 which appear in the Company’s Annual Report on Form 10-K (No. 333-256510) filed for the year ended December 31, 2021 with the Securities and Exchange Commission (the "SEC") on March 29, 2022 and in other filings with the SEC.
Revenue Recognition	Revenue Recognition The Company accounts for revenues in accordance with Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (“Topic 606”). To determine revenue recognition for arrangements that fall within the scope of Topic 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that it will collect the consideration it is entitled to in exchange for the goods or services transferred to the customer. At contract inception, the Company assesses the goods or services promised within each contract, determines those that are performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. To date, the Company's revenues have been generated solely from the Wugen License. The Wugen License includes licenses of intellectual property, cost reimbursements, upfront signing fees, milestone payments and royalties on future licensee’s product sales. In addition, the Company and Wugen have an agreement for supply of materials. License Grants: For out-licensing arrangements that include a grant of a license to the Company’s intellectual property, the Company considers whether the license grant is distinct from the other performance obligations included in the arrangement. For licenses that are distinct, the Company recognizes revenues from nonrefundable, upfront payments and other consideration allocated to the license when the license term has begun and the Company has provided all necessary information regarding the underlying intellectual property to the customer, which generally occurs at or near the inception of the arrangement. Milestone and Contingent Payments: At the inception of the arrangement and at each reporting date thereafter, the Company assesses whether it should include any milestone and contingent payments or other forms of variable consideration in the transaction price using the most likely amount method. If it is probable that a significant reversal of cumulative revenue would not occur upon resolution of the uncertainty, the associated milestone value is included in the transaction price. At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of each such milestone and any related constraint and, if necessary, adjusts its estimate of the overall transaction price. Since milestone and contingent payments may become payable to the Company upon the initiation of a clinical study or filing for or receipt of regulatory approval, the Company reviews the relevant facts and circumstances to determine when the Company should update the transaction price, which may occur before the triggering event. When the Company updates the transaction price for milestone and contingent payments, the Company allocates the changes in the total transaction price to each performance obligation in the agreement on the same basis as the initial allocation. Any such adjustments are recorded on a cumulative catch-up basis in the period of adjustment, which may result in recognizing revenue for previously satisfied performance obligations in such period. The Company’s licensees will generally pay milestones payments subsequent to achievement of the triggering event. Materials Supply: The Company provides clinical and research grade materials so that licensees may develop products based on the licensed molecules. The Company plans to enter into commercialization supply agreements when licensees enter the commercial stage of their company. The amounts billed are recognized as revenue as the performance obligations are satisfied by the Company, once the Company determines that a contract exists. On June 18, 2021, the Company entered into a master services agreement ("MSA") for the supply of materials for clinical development of licensed products. On March 14, 2022, the Company entered into statements-of-work ("SOWs") contemplated under the MSA for all current and historical purchases of clinical and research grade materials. The Company determined that upon entering into the SOWs all requirements were met to qualify as a contract under Topic 606. No contract existed in prior reporting periods and all amounts received for the supply of materials were recorded as deferred revenue. The manufacturing of the clinical and research materials supplied by the Company each represents a single performance obligation that is satisfied over time. The Company recognizes revenue using an input method based on the costs incurred relative to the total expected cost, which determines the extent of the Company's progress toward completion. As part of the accounting for these arrangements, the Company must develop estimates and assumptions that require judgement to determine the progress towards completion. The Company reviews its estimate of the progress toward completion based on the best information available to recognize the cumulative progress toward completion as of the end of each reporting period, and makes revisions to such estimates, if facts and circumstances change during each reporting period. For the three months ended March 31, 2022, the Company recognized $ 3.1 m illion in revenue related to sale of development supply materials.
Deferred Revenue	Deferred Revenue Deferred revenue represents amounts billed, or in certain cases, yet to be billed to the Company’s customer for which the related revenues have not been recognized because one or more of the revenue recognition criteria has not been met. The Company had deferred revenue of $ 239,000 and nil as of March 31, 2021 and 2022, respectively. All deferred revenue balances are current liabilities and reported within Accrued liabilities and other current liabilities.
Investment	Investments The Company holds a minority interest in Wugen which is accounted for using the measurement alternative whereby the investment is recorded at cost less impairment, adjusted for observable price changes in orderly transactions for an identical or similar investment of the same investee. No impairment has been recognized. As of March 31, 2021 and 2022, the Company included $ 1.6 million for the investment in Wugen in Investments in the accompanying condensed balance sheet. The Company invests net proceeds of its IPO in bills and notes issued by the U.S. Treasury which are classified as trading securities. As of March 31, 2022, the Company held $ 17.0 million in U.S. Treasury bills included in Short-term investments and $ 9.8 million in U.S. Treasury notes included in Investments in the accompanying condensed balance sheet.
Operating Leases	Operating Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in Other assets, Accrued Liabilities and other current liabilities, and Other liabilities on its balance sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. The Company has a lease agreement with lease and non-lease components, which are accounted for separately.
Net Loss Per Share	Net Loss Per Share Basic loss per share of common stock is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during each period. Diluted loss per share of common stock includes the effect, if any, from the potential exercise of stock options and unvested shares of restricted stock, which would result in the issuance of incremental shares of common stock. For diluted net loss per share, the weighted-average number of shares of common stock is the same for basic net loss per share due to the fact that when a net loss exists, dilutive securities are not included in the calculation as the impact is anti-dilutive.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (“Topic 842”), which requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases. The Company adopted Topic 842 as of January 1, 2022. Effective March 1, 2022, the Company entered into noncancelable operating leases for its current location with a two-year term. These are the only leases in scope of Topic 842 or above the Company's capitalization threshold.

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Summary of Basic and Diluted Net Income (Loss) Per Common Share	The following table summarizes the computation of the basic and diluted net loss per share: Three Months Ended March 31, 2021 2022 Numerator: Net loss $ ( 2,843,996 ) $ ( 2,057,207 ) Less: cumulative preferred dividends earned in the period ( 477,358 ) — Net loss available for distribution to common stock holders $ ( 3,321,354 ) $ ( 2,057,207 ) Denominator: Weighted-average common shares outstanding 4,839,871 35,778,032 Net loss per share, basic and diluted $ ( 0.69 ) $ ( 0.06 )
Summary of Outstanding Potentially Dilutive Securities	The following table summarizes the outstanding potentially dilutive securities that have been excluded in the calculation of diluted net loss per share because their inclusion would be anti-dilutive: At March 31, 2021 2022 Redeemable Preferred Stock 23,768,416 — Common stock options 653,345 1,745,630 Potentially diluted securities 24,421,761 1,745,630

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2022
Fair Value Disclosures [Abstract]
Summary of assets and liabilities that are measured at fair value on a recurring basis	The following table presents the Company’s assets which were measured at fair value at December 31, 2021 and March 31, 2022: At December 31, 2021: Level 1 Level 2 Level 3 Total Assets: Money market funds $ 9,506,499 $ — $ — $ 9,506,499 Treasury bills 24,983,520 — — 24,983,520 Treasury notes 9,922,300 — — 9,922,300 Total $ 44,412,319 $ — $ — $ 44,412,319 At March 31, 2022: Level 1 Level 2 Level 3 Total Assets: Money market funds $ 16,294,805 $ — $ — $ 16,294,805 Treasury bills 16,969,298 — — 16,969,298 Treasury notes 9,751,560 — — 9,751,560 Total $ 43,015,663 $ — $ — $ 43,015,663

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2022
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Summary of components of the lease expense	The components of the lease expense for the three months ended March 31, 2022 were as follows: Three Months Ended 2022 Operating lease cost $ 13,929
Summary of supplemental cash flow information related to lease	Supplemental cash flow information related to lease was as follows: Three Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows $ 13,929 Right-of-use assets obtained in exchange for lease obligations: Operating lease $ 12,543
Supplemental balance sheet information related to lease	As of March 31, 2022, the supplemental balance sheet information related to leases were as follows: March 31, 2022 Operating lease right-of-use assets $ 306,300 Other current liabilities $ 166,912 Operating lease liabilities, net of current portion 139,597 Total operating lease liabilities $ 306,509
Schedule of remaining lease payments	As of March 31, 2022, the remaining lease payments were as follows: 2022 (remaining 9 months) $ 125,358 2023 171,322 2024 28,693 Total future minimum lease payments $ 325,373

Organization and Summary of S_3

Organization and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	Jul. 22, 2021	Jun. 25, 2021	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Revenue recognized			$ 3,117,545	$ 0
Investments			11,351,310		$ 11,522,050
Short-term investments			16,969,298		24,983,520
Accounts receivable, net			553,007		133,000
Common stock issued to holder of redeemable preferred stock	23,768,416
Cumulative Dividends	$ 2,800,000
Stockholders' Equity, Reverse Stock Split		a 3-for-7 reverse stock split for all issued and outstanding common stock
Cash and cash equivalents			18,117,074		11,730,677
Research and development			30,000,000
U.S. Government Backed Securities [Member]
Investments			9,800,000
Short-term investments			17,000,000
IPO [Member] | U.S. Treasury bills [Member]
Proceeds from initial public offering			17,000,000
IPO [Member] | US Treasury Notes [Member]
Proceeds from initial public offering			9,800,000
Common Stock [Member] | IPO [Member]
Stock Issued During Period Shares	7,000,000
Share Price	$ 8
Proceeds from initial public offering	$ 49.2
Wugen License [Member]
Revenue recognized			3.1
Investments			1,600,000	1,600,000
Accounts Payable and Accrued Liabilities [Member]
Deferred Revenue			$ 0	$ 239,000,000,000
Deferred Revenue, Current					$ 1,800,000

Accrued Liabilities and Other_2

Accrued Liabilities and Other Current Liabilities - Additional Information (Detail) - USD ($)	Jan. 08, 2021	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Payables And Accruals [Line Items]
Accrued liabilities and other current liabilities		$ 674,296		$ 2,097,925
Debt Instrument, Decrease, Forgiveness			$ 567,311
Accounts Payable and Accrued Liabilities, Current		674,000		2,100,000
Other expense				50,000
short term lease liability		166,912
Accrued Expenses Current [Member]
Payables And Accruals [Line Items]
Debt Instrument, Decrease, Forgiveness	$ 567,311
Accounts Payable and Accrued Liabilities [Member]
Payables And Accruals [Line Items]
Deferred Revenue, Current				1,800,000
Manufacturing materials				48,750
Salaries and Employee Benefits		229,000
Legal Fees				$ 51,000
short term lease liability		167,000
OtherLiabilitiesCurrent		$ 278,000

Redeemable Preferred Stock - Ad

Redeemable Preferred Stock - Additional Information (Detail) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021	Jul. 22, 2021
Class of Stock [Line Items]
Cumulative Dividends			$ 2.8
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	0	0

Net Loss Per Share - Summary of

Net Loss Per Share - Summary of Basic and Diluted Net Income (Loss) Per Common Share (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Numerator:
Net loss	$ (2,057,207)	$ (2,843,996)
Less: cumulative preferred dividends earned in the period	0	(477,358)
Net loss available for distribution to common stockholders	$ (2,057,207)	$ (3,321,354)
Denominator:
Weighted average shares outstanding, basic and diluted	35,778,032	4,839,871
Net loss per share, basic and diluted	$ (0.06)	$ (0.69)

Net Loss Per Share - Summary _2

Net Loss Per Share - Summary of Outstanding Potentially Dilutive Securities (Detail) - shares	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially diluted securities	1,745,630	24,421,761
Redeemable Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially diluted securities		23,768,416
Common Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially diluted securities	1,745,630	653,345

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Assets:
Assets	$ 43,015,663	$ 44,412,319
Money Market Funds [Member]
Assets:
Assets	16,294,805	9,506,499
Treasury bills [Member]
Assets:
Assets	16,969,298	24,983,520
Treasury Notes [Member]
Assets:
Assets	9,751,560	9,922,300
Level 1 [Member]
Assets:
Assets	43,015,663	44,412,319
Level 1 [Member] | Money Market Funds [Member]
Assets:
Assets	16,294,805	9,506,499
Level 1 [Member] | Treasury bills [Member]
Assets:
Assets	16,969,298	24,983,520
Level 1 [Member] | Treasury Notes [Member]
Assets:
Assets	9,751,560	9,922,300
Level 2 [Member]
Assets:
Assets	0	0
Level 2 [Member] | Money Market Funds [Member]
Assets:
Assets	0	0
Level 2 [Member] | Treasury bills [Member]
Assets:
Assets	0	0
Level 2 [Member] | Treasury Notes [Member]
Assets:
Assets	0	0
Level 3 [Member]
Assets:
Assets	0	0
Level 3 [Member] | Money Market Funds [Member]
Assets:
Assets	0	0
Level 3 [Member] | Treasury bills [Member]
Assets:
Assets	0	0
Level 3 [Member] | Treasury Notes [Member]
Assets:
Assets	$ 0	$ 0

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 0	$ 0
Deferred Tax Assets Valuation Allowance, Percent	100.00%
Effective Income Tax Rate Reconciliation, Percent	0.00%

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2022USD ($)ft²	Mar. 31, 2021USD ($)	Mar. 01, 2022	Jan. 31, 2022USD ($)	Dec. 31, 2021USD ($)
Operating Leased Assets [Line Items]
Area of land | ft²	12,250
Lease term			2 years
Lease termination date	Feb. 29, 2024
Operating Lease, Weighted Average Discount Rate, Percent	6.00%
Operating Leases, Rent Expense	$ 38,883	$ 31,516
Future payment obligations	2.1			$ 181,600	$ 2.5
Research and Development Expense [Member]
Operating Leased Assets [Line Items]
Operating Leases, Rent Expense	$ 19,207	$ 14,431

Commitments and Contingencies_2

Commitments and Contingencies - Summary of components of the lease expense (Detail)	3 Months Ended
	Mar. 31, 2022USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Operating lease cost	$ 13,929

Commitments and Contingencies_3

Commitments and Contingencies - Summary of supplemental cash flow information related to lease (Detail)	3 Months Ended
	Mar. 31, 2022USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows	$ 13,929
Right-of-use assets obtained in exchange for lease obligations:
Operating lease	$ 12,543

Commitments and Contingencies_4

Commitments and Contingencies - Supplemental balance sheet information related to lease (Detail) - USD ($)	Mar. 31, 2022	Mar. 31, 2021
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Operating lease right-of-use assets	$ 306,300
Other current liabilities	166,912
Operating lease liabilities, net of current portion	139,597
Total operating lease liabilities	$ 306,509

Commitments and Contingencies_5

Commitments and Contingencies - Summary of the Future Minimum Payments for the Lease and Sublease Agreements (Detail)	Mar. 31, 2022USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2022 (remaining 9 months)	$ 125,358
2023	171,322
2024	28,693
Total future minimum lease payments	$ 325,373