HCW Biologics (HCWB) 10-Q 9 May 23 2023 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2023	May 08, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2023
Document Fiscal Year Focus	2023
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		35,888,135
Securities Act File Number	001-40591

Condensed Balance Sheets

Condensed Balance Sheets - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 18,389,659	$ 22,326,356
Short-term investments	9,848,430	9,735,930
Accounts receivable, net	252,728	417,695
Prepaid expenses	1,132,694	1,394,923
Other current assets	316,963	196,015
Total current assets	29,940,474	34,070,919
Investments	1,599,751	1,599,751
Property, plant and equipment, net	11,741,176	10,804,610
Other assets	253,144	333,875
Total assets	43,534,545	46,809,155
Current liabilities:
Accounts payable	1,164,562	1,226,156
Accrued liabilities and other current liabilities	3,357,346	1,730,325
Total current liabilities	4,521,908	2,956,481
Debt, net	6,386,234	6,409,893
Other Liabilities	7,476	14,275
Total Liabilities	10,915,618	9,380,649
Commitments and contingencies (Note 8)
Stockholders' equity:
Common Stock, Value, Issued	3,589	3,588
Additional paid-in capital	83,224,070	82,962,964
Accumulated deficit	(50,608,732)	(45,538,046)
Total stockholders' equity	32,618,927	37,428,506
Total liabilities and stockholders' equity	$ 43,534,545	$ 46,809,155

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
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	35,886,635	35,876,440

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenues:
Revenues	$ 41,883	$ 3,117,545
Cost of revenues	(29,350)	(1,328,076)
Net revenues	12,533	1,789,469
Operating expenses:
Research and development	2,255,813	1,789,678
General and administrative	3,117,290	1,880,601
Total operating expenses	5,373,103	3,670,279
Loss from operations	(5,360,570)	(1,880,810)
Interest expense	(93,438)	0
Other (expense) income, net	383,322	(176,397)
Net loss	$ (5,070,686)	$ (2,057,207)
Net loss per share, basic	$ (0.14)	$ (0.06)
Net loss per share, diluted	$ (0.14)	$ (0.06)
Weighted average shares outstanding, basic	35,883,779	35,778,032
Weighted average shares outstanding, diluted	35,883,779	35,778,032

Condensed Statements of Changes

Condensed Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit
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 Common Stock upon exercise of stock options, Shares		11,225
Issuance of 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)
Beginning balance (in shares) at Dec. 31, 2022		35,876,440
Beginning balance , Value at Dec. 31, 2022	37,428,506	$ 3,588	82,962,964	(45,538,046)
Issuance of Common Stock upon exercise of stock options, Shares		10,195
Issuance of Common Stock upon exercise of stock options , Value	1,901	$ 1	1,900
Stock-based compensation , Value	259,206		259,206
Net loss	(5,070,686)			(5,070,686)
Ending balance (in shares) at Mar. 31, 2023		35,886,635
Ending balance , Value at Mar. 31, 2023	$ 32,618,927	$ 3,589	$ 83,224,070	$ (50,608,732)

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net loss	$ (5,070,686)	$ (2,057,207)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	298,847	142,785
Stock-based compensation	259,206	260,348
Unrealized loss on investments, net	(112,500)	185,122
Reduction in the carrying amount of right-of-use asset	209	209
Changes in operating assets and liabilities:
Accounts receivable	164,967	(420,007)
Prepaid expenses and other assets	182,294	1,380,215
Accounts payable and other liabilities	718,675	(1,071,084)
Operating lease liability	(79,225)	(12,543)
Net cash used in operating activities	(3,638,213)	(1,592,162)
Cash flows from investing activities:
Purchases of property and equipment	(300,385)	(23,554)
Proceeds for sale or maturities of short-term investments	0	7,999,840
Net cash (used in) provided by investing activities	(300,385)	7,976,286
Cash flows from financing activities:
Proceeds from issuance of common stock	1,901	2,273
Net cash provided by financing activities	1,901	2,273
Net changes in cash and cash equivalents	(3,936,697)	6,386,397
Cash and cash equivalents at the beginning of the period	22,326,356	11,730,677
Cash and cash equivalents at the end of the period	18,389,659	18,117,074
Supplemental disclosure of cash flow information:
Cash paid for interest	93,438	0
Noncash operating, investing and financing activities:
Operating lease liabilities arising from obtaining right-of-use assets	0	306,509
Purchases of property and equipment included in accounts payable and other liabilities	$ 849,755	$ 0

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2023
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 healthspan 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. Liquidity As of March 31, 2023, 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 solely from the Wugen License and manufacturing and supply arrangement with Wugen. In the three months ended March 31, 2023, the Company recognized revenues of $ 41,883 fr om manufacturing and supply of materials for Wugen. As of March 31, 2023, the Company had cash and cash equivalents of $ 18.4 millio n, and short-term investments of $ 9.8 million held in U.S. government-backed securities. Since inception to March 31, 2023 , the Company incurred cumulative net losses of $ 47.5 million. Management expects to incur additional losses in the future to conduct product research and development and recognizes the need to raise additional capital to fully implement its business plan. T he Company intends to raise capital from non-dilutive funding sources such as bank financing, out-licensing rights to technology or markets, third-party collaboration funding, cooperative agreements for clinical trials, or other business development transactions, which may include additional debt or equity financing. 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, 2023 and for the three months ended March 31, 2022 and 2023 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, 2023 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, 2022 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, 2022 which appear in the Company’s Annual Report on Form 10-K (No. 001-40591) filed for the year ended December 31, 2022 with the Securities and Exchange Commission (the “SEC”) on March 28, 2023 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 transactions with Wugen. 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, from which the Company also recognizes revenues. 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. 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, 2023, the Company recogni zed $ 41,883 i n revenue related to sale of development supply materials. 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 December 31, 2022 and March 31, 2023, the Compa ny included $ 1.6 million for the investment in Wugen in Investments in the accompanying condensed balance sheets. 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, 2023 , the Company held $ 9.8 million in U.S. Treasury bills included in Short-term 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 Right of Use (“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.

Accrued Liabilities and Other C

Accrued Liabilities and Other Current Liabilities	3 Months Ended
	Mar. 31, 2023
Payables and Accruals [Abstract]
Accrued Liabilities and Other Current Liabilities	2. Accrued Liabilities and Other Current Liabilities As of December 31, 2022 , the Company had a balance of $ 1.7 million included in Accrued liabilities and other current liabilities in the accompanying condensed balance sheet, consisting of $ 416,000 for legal expenses, $ 277,500 for clinical expenses, $ 524,000 for bonus expenses, $ 134,000 for salary and benefits, and $ 178,000 for a lease liability. As of March 31, 2023 , the Company had a balance of $ 3.4 million in Accrued liabilities and other current liabilities in the accompanying condensed balance sheet, consisting of $ 1.3 million for legal fees, $ 850,000 for construction in progress, $ 459,000 for clinical expenses, $ 365,000 for bonus payable, $ 146,000 for short-term lease liability, and $ 53,000 for salary and benefits.

Debt, Net

Debt, Net	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Debt, Net	3. Debt, Net On August 15, 2022, the Company entered into a loan and security agreement (the “2022 Loan Agreement”) with Cogent Bank (“Cogent”), pursuant to which it received $ 6.5 million in gross proceeds to purchase a building that will become the Company's new headquarters. The loan is secured by a first priority lien on the building. As of March 31, 2023, the Company had $ 6.5 million in gross principal outstanding in a loan under the 2022 Loan Agreement. The interest-only period is one year followed by 48 months of equal payments of principal and interest beginning on September 15, 2023 based on a 25-year amortization rate. The unamortized balance is due on August 15, 2027 (the “Maturity Date”), and bears interest at a fixed per annum rate equal to 5.75 %. Upon the Maturity Date, a final payment of unamortized principal will be due. The Company is in compliance with all covenants as of March 31, 2023. The Company has the option to prepay the outstanding balance of the loan prior to the Maturity Date without penalty. As of March 31, 2023 , the current portion of $ 67,979 is included in Accrued liabilities and other current liabilities, and the noncurrent portion of $ 6.4 million is included in Debt, net in the accompanying condensed balance sheet .

Preferred Stock

Preferred Stock	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Preferred Stock	4. Preferred Stock At December 31, 2022 and March 31, 2023 , 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, 2023
Earnings Per Share [Abstract]
Net Loss Per Share	5. Net Loss Per Share The following table summarizes the computation of the basic and diluted net loss per share: Three Months Ended March 31, 2022 2023 Numerator: Net loss $ ( 2,057,207 ) $ ( 5,070,686 ) Denominator: Weighted-average common shares outstanding 35,778,032 35,883,779 Net loss per share, basic and diluted $ ( 0.06 ) $ ( 0.14 ) 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, 2022 2023 Common stock options 1,745,630 1,856,463 Potentially diluted securities 1,745,630 1,856,463

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	6. 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, 2022 and March 31, 2023: At December 31, 2022: Level 1 Level 2 Level 3 Total Assets: Money market funds $ 19,458,020 $ — $ — $ 19,458,020 Treasury notes 9,735,930 — — 9,735,930 Total $ 29,193,950 $ — $ — $ 29,193,950 At March 31, 2023: Level 1 Level 2 Level 3 Total Assets: Money market funds $ 16,949,263 $ — $ — $ 16,949,263 Treasury notes 9,848,430 — — 9,848,430 Total $ 26,797,693 $ — $ — $ 26,797,693

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	7. 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, 2022 and March 31, 2023. 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 assets 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, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	8. 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, 2023 were as follows: For the Three Months Operating lease cost $ 42,413 Supplemental cash flow information related to lease was as follows: For the Three Months Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows $ 42,254 Right-of-use assets obtained in exchange for lease obligations: Operating lease $ 39,717 As of March 31, 2023, the supplemental balance sheet information related to leases in the accompanying condensed balance sheet included a Right-of-Use Asset of $ 150,880 in Other assets; the current portion of a lease liability of $ 145,702 in Accrued liabilities and other current liabilities; and the noncurrent lease liability of $ 7,476 in Other liabilities, as follows: As of March 31, 2023 Operating lease right-of-use assets $ 150,880 Operating lease liabilities, current $ 145,702 Operating lease liabilities, net of current portion 7,476 Total operating lease liabilities $ 153,178 For the three months ended March 31, 2022 and 2023 , rent expense recognized by the Company was $ 38,883 and $ 43,950 , respectively, of which $ 19,207 and $ 22,212 , respectively, are included in research and development in the accompanying condensed statements of operations . Contractual Commitments The Company entered into an agreement 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, 2022 and March 31, 2023 , future payment obligations under such agreements were $ 406,000 and $ 1.5 million, respectively. In addition, as of December 31, 2022, the Company committed to purchase upstream processing and fluid management equipment for $ 1.6 million, and it advanced $ 495,000 for this purchase as of March 31, 2023. Legal From time to time, the Company is a party to or otherwise involved in legal proceedings, including suits, assessments, regulatory actions and investigations generally arising out of the normal course of business. In addition, the Company enters into agreements that may include indemnification provisions, pursuant to which the Company agrees to indemnify, hold harmless and defend the indemnified parties for losses suffered or incurred by the indemnified party. When the Company believes that the outcome of such a matter will result in a liability that is probable to be incurred and result in a potential loss, or range of loss, that can be reasonably estimated, the Company will accrue a liability and make the appropriate disclosure in the footnotes to the financial statements. On December 23, 2022, Altor BioScience, LLC and NantCell, Inc. (“Altor/NantCell”) initiated an arbitration against Dr. Hing C. Wong, the Company’s Founder and Chief Executive Officer, in California alleging breach of contract and fiduciary duty, among other claims. On that same date, Altor/NantCell filed a lawsuit against the Company in federal court alleging misappropriation of trade secrets, inducement of breach of contract and breach of fiduciary duty, among other claims against the Company. On January 31, 2023, the Company filed a motion to compel arbitration, a motion for the stay of the litigation, and a motion to dismiss the complaint (“motion to compel”). On April 18, 2023, the U.S. District Court for the Southern District of Florida (the “Court”) heard oral argument on the Company’s motion to compel and ordered the parties to provide supplemental briefing by April 28, 2023. Before the Court ruled on the Company’s motion to compel, on April 26, 2023, the parties stipulated that Altor/NantCell’s action against the Company would be consolidated with the Altor/NantCell arbitration demand against Dr. Wong. On April 27, 2023, the Court approved the parties’ stipulation and ordered the parties to arbitration. On May 1, 2023, Altor/NantCell filed a demand against the Company before JAMS. On May 3, 2023, Altor/NantCell dismissed the federal court action without prejudice and the Court ordered the case dismissed without prejudice and closed the case. Altor/NantCell’s proceeding against the Company will now proceed in arbitration before JAMS. Inflationary Cost Environment, Banking Crisis, Supply Chain Disruption and the Macroeconomic Environment Our operations have been affected by many headwinds, including inflationary pressures, rising interest rates, ongoing global supply chain disruptions resulting from increased geopolitical tensions such as the war between Russia and Ukraine, Chinese aggression towards Taiwan, financial market volatility and currency movements. These headwinds, specifically the supply chain disruptions, have adversely impacted our ability to procure certain services and materials, which in some cases impacts the cost and timing of clinical trials and IND-enabling activities. In addition, the Company may be impacted by inflation when procuring materials required for the buildout of our new headquarters, the costs for recruiting and retaining employees and other employee-related costs. Further, rising interest rates would also increase borrowing costs to the extent that the Company takes on any additional debt. The Company uses a number of strategies to effectively navigate these issues, including product redesign, alternate sourcing, and establishing contingencies in budgeting and timelines. However, the extent and duration of such events and conditions, and resulting disruptions to our operations, are highly unpredictable. The Company had no exposure to a failed bank. The Company averts risks associated with such a crisis by holding minimum cash balances required for uninterrupted operations, federal funds money market fund, and U.S. government-backed securities. As of March 31, 2023 , the Company held $ 16.9 million in a federal money market fund (the “Fund”) with an investment objective to seek to provide current income while maintaining liquidity and a stable share price of $ 1 . The Fund invests at least 99.5 % of its total assets in cash, U.S. government securities, and/or repurchase agreements that are collateralized solely by U.S. government securities or cash (collectively, government securities). As such , the Fund is considered one of the most conservative investment options available to safeguard cash and cash equivalents. Lost-Lasting Effects of COVID-19 The length of time and full extent to which the COVID-19 pandemic directly or indirectly impacts the Company’s business, results of operati ons and financial condition, including but not limited to the supply chain, manufacturing, clinical trials, research and development costs and employee-related costs, depends on future developments that are highly uncertain, subject to change and are difficult to predict. Additionally, the ongoing geopolitical tensions related to Chinese aggression toward Taiwan, the conflict in Ukraine, and the related sanctions and other penalties imposed, in addition to other financial pressures from inflation and higher interest rates, are creating substantial uncertainty in the global economy. The Company encountered some delays in the commencement of clinical trials as a result of clinical sites experiencing COVID-related delays due to staffing shortages and supply chain issues. In addition, the Company encountered some delays in the completion of studies required by the U.S. Federal Drug Administration to support Investigational New Drug Applications (“IND”) due to government-mandated measures taken as a result of COVID outbreaks. The Company expects to be impacted by inflation, especially for materials required for the buildout of the Company’s new headquarters and employee-related costs. These headwinds may have an adverse impact on the Company’s ability to conduct clinical trials as well as IND-enabling activities, causing delays in our clinical development timeline. The Company uses a number of strategies to effectively navigate these issues, but the extent and duration of such events and conditions, and resulting disruptions to the Company's operations, are highly unpredictable.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2023
Subsequent Events [Abstract]
Subsequent Events	9. Subsequent Events Subsequent events have been evaluated through the date the financial statements were 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. On April 21, 2023, the Company entered into a secured Development Line of Credit Agreement (the “Agreement”) with Prime Capital Ventures, LLC, as lender (the “Lender”), pursuant to which the Lender shall advance loans to the Company in an aggregate principal amount not to exceed $ 26.3 million and a scheduled maturity date of April 20, 2028 (the “Maturity Date”). The note issued pursuant to the Agreement bears interest at a fixed rate of 7 percent per annum, due monthly in arrears on the first day of each month, and the outstanding principal on the note shall be due and payable in full on the Maturity Date. On April 27, 2023 in legal proceedings brought against the Company by Altor/NantCell, the Court approved the parties’ stipulation and ordered the parties to arbitration. On May 1, 2023, Altor/NantCell filed a demand against the Company before JAMS. On May 3, 2023, Altor/NantCell dismissed the federal court action without prejudice and the Court ordered the case dismissed without prejudice and closed the case. Altor/NantCell’s proceeding against the Company will now proceed in arbitration before JAMS. Although adverse decisions (or settlements) may occur in the lawsuit described above, it is not possible to reasonably estimate the possible loss or range of loss, if any, associated therewith at this time. As such, no accrual for these matters has been recorded within the financial statements. See Note 8 to the accompanying notes to these unaudited condensed interim financial statements for more information about the legal proceedings with Altor/NantCell.

Organization and Summary of S_2

Organization and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation Unaudited Interim Financial Information The accompanying unaudited condensed interim financial statements as of March 31, 2023 and for the three months ended March 31, 2022 and 2023 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, 2023 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, 2022 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, 2022 which appear in the Company’s Annual Report on Form 10-K (No. 001-40591) filed for the year ended December 31, 2022 with the Securities and Exchange Commission (the “SEC”) on March 28, 2023 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 transactions with Wugen. 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, from which the Company also recognizes revenues. 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. 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, 2023, the Company recogni zed $ 41,883 i n revenue related to sale of development supply materials.
Investments	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 December 31, 2022 and March 31, 2023, the Compa ny included $ 1.6 million for the investment in Wugen in Investments in the accompanying condensed balance sheets. 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, 2023 , the Company held $ 9.8 million in U.S. Treasury bills included in Short-term 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 Right of Use (“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.

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2023
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, 2022 2023 Numerator: Net loss $ ( 2,057,207 ) $ ( 5,070,686 ) Denominator: Weighted-average common shares outstanding 35,778,032 35,883,779 Net loss per share, basic and diluted $ ( 0.06 ) $ ( 0.14 )
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, 2022 2023 Common stock options 1,745,630 1,856,463 Potentially diluted securities 1,745,630 1,856,463

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2023
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, 2022 and March 31, 2023: At December 31, 2022: Level 1 Level 2 Level 3 Total Assets: Money market funds $ 19,458,020 $ — $ — $ 19,458,020 Treasury notes 9,735,930 — — 9,735,930 Total $ 29,193,950 $ — $ — $ 29,193,950 At March 31, 2023: Level 1 Level 2 Level 3 Total Assets: Money market funds $ 16,949,263 $ — $ — $ 16,949,263 Treasury notes 9,848,430 — — 9,848,430 Total $ 26,797,693 $ — $ — $ 26,797,693

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2023
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, 2023 were as follows: For the Three Months Operating lease cost $ 42,413
Summary of supplemental cash flow information related to lease	Supplemental cash flow information related to lease was as follows: For the Three Months Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows $ 42,254 Right-of-use assets obtained in exchange for lease obligations: Operating lease $ 39,717
Supplemental balance sheet information related to lease	As of March 31, 2023, the supplemental balance sheet information related to leases in the accompanying condensed balance sheet included a Right-of-Use Asset of $ 150,880 in Other assets; the current portion of a lease liability of $ 145,702 in Accrued liabilities and other current liabilities; and the noncurrent lease liability of $ 7,476 in Other liabilities, as follows: As of March 31, 2023 Operating lease right-of-use assets $ 150,880 Operating lease liabilities, current $ 145,702 Operating lease liabilities, net of current portion 7,476 Total operating lease liabilities $ 153,178

Organization and Summary of S_3

Organization and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Revenue recognized	$ 41,883	$ 3,117,545
Investment impairment charges	0
Short-term investments	9,848,430		$ 9,735,930
Cash and cash equivalents	18,389,659		22,326,356
Research and development	47,500,000
U.S. Government Backed Securities [Member]
Short-term investments	9,800,000
IPO [Member] | U.S. Treasury bills [Member]
Proceeds from initial public offering	9,800,000
Wugen License [Member]
Revenue recognized	41,883
Investments	$ 1,600,000		$ 1,600,000

Debt, Net - Additional Informat

Debt, Net - Additional Information (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Aug. 15, 2022
Line of Credit Facility [Line Items]
Current portion of long term debt	$ 67,979
Debt	$ 6,386,234	$ 6,409,893
Cogent Bank Member
Line of Credit Facility [Line Items]
Gross Proceeds			$ 6,500,000
Gross Principal Outstanding		$ 6,500,000
Line Of Credit Facility Frequency Of Payments	interest-only period is one year followed by 48 months of equal payments of principal and interest
Maturity Date	Aug. 15, 2027
Credit Facility Interest Rate During Period	5.75%

Accrued Liabilities and Other_2

Accrued Liabilities and Other Current Liabilities - Additional Information (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Payables And Accruals [Line Items]
Accrued liabilities and other current liabilities	$ 3,357,346	$ 1,730,325
Accounts Payable and Accrued Liabilities, Current	3,400,000	1,700,000
short term lease liability	145,702
Accrued Expenses Current [Member]
Payables And Accruals [Line Items]
short term lease liability	146,000	178,000
Accounts Payable and Accrued Liabilities [Member]
Payables And Accruals [Line Items]
Salaries and Employee Benefits	53,000	134,000
Construction in progress	850,000
Legal Fees	1,300,000	416,000
Clinical expenses	459,000	277,500
Bonus payable	$ 365,000	$ 524,000

Preferred Stock - Additional In

Preferred Stock - Additional Information (Detail) - shares	Mar. 31, 2023	Dec. 31, 2022
Class of Stock [Line Items]
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, 2023	Mar. 31, 2022
Numerator:
Net loss	$ (5,070,686)	$ (2,057,207)
Denominator:
Weighted average shares outstanding, basic	35,883,779	35,778,032
Weighted average shares outstanding, diluted	35,883,779	35,778,032
Net loss per share, basic	$ (0.14)	$ (0.06)
Net loss per share, diluted	$ (0.14)	$ (0.06)

Net Loss Per Share - Summary _2

Net Loss Per Share - Summary of Outstanding Potentially Dilutive Securities (Detail) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially diluted securities	1,856,463	1,745,630
Common Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially diluted securities	1,856,463	1,745,630

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, 2023	Dec. 31, 2022
Assets:
Assets	$ 26,797,693	$ 29,193,950
Money Market Funds [Member]
Assets:
Assets	16,949,263	19,458,020
Treasury Notes [Member]
Assets:
Assets	9,848,430	9,735,930
Level 1 [Member]
Assets:
Assets	26,797,693	29,193,950
Level 1 [Member] | Money Market Funds [Member]
Assets:
Assets	16,949,263	19,458,020
Level 1 [Member] | Treasury Notes [Member]
Assets:
Assets	9,848,430	9,735,930
Level 2 [Member]
Assets:
Assets	0	0
Level 2 [Member] | Money Market Funds [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 Notes [Member]
Assets:
Assets	$ 0	$ 0

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 0	$ 0
Deferred Tax Assets Valuation Allowance, Percent	100%
Effective Income Tax Rate Reconciliation, Percent	0%

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2023 USD ($) ft² $ / shares	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)	Mar. 01, 2022
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%
Operating Leases, Rent Expense	$ 43,950	$ 38,883
Future payment obligations	1,500,000		$ 406,000
Operating lease right of use asset	150,880
Operating lease liabilities, current	145,702
Noncurrent lease liability	7,476
Purchase commitment made	495,000		$ 1,600,000
Money Market Funds [Member]
Operating Leased Assets [Line Items]
Federal money market fund	$ 16,900,000
Share Price | $ / shares	$ 1
U.S.GovernmentSecurities[member]
Operating Leased Assets [Line Items]
Investment Owned Percent Of Net Assets	99.50%
Research and Development Expense [Member]
Operating Leased Assets [Line Items]
Operating Leases, Rent Expense	$ 22,212	$ 19,207

Commitments and Contingencies_2

Commitments and Contingencies - Summary of components of the lease expense (Detail)	3 Months Ended
	Mar. 31, 2023 USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Operating lease cost	$ 42,413

Commitments and Contingencies_3

Commitments and Contingencies - Summary of supplemental cash flow information related to lease (Detail)	3 Months Ended
	Mar. 31, 2023 USD ($)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows	$ 42,254
Right-of-use assets obtained in exchange for lease obligations:
Operating lease	$ 39,717

Commitments and Contingencies_4

Commitments and Contingencies - Supplemental balance sheet information related to lease (Detail)	Mar. 31, 2023 USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Operating lease right-of-use assets	$ 150,880
Operating lease liabilities, current	145,702
Operating lease liabilities, net of current portion	7,476
Total operating lease liabilities	$ 153,178

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) - Subsequent Event [Member] - Prime Capital Ventures LLC [Member] $ in Millions	Apr. 21, 2023 USD ($)
Subsequent Event [Line Items]
Line of Credit Facility, Maximum Amount Outstanding During Period	$ 26.3
Maturity Date	Apr. 20, 2028
Line of Credit Facility, Interest Rate During Period	7%