HCW Biologics says Q1 2026 financials cannot be relied on due to EPS misstatement
HCWB•EPS was overstated and a material weakness was identified
HCW Biologics said basic and diluted EPS was overstated by $0.8 to $2.19 per share because of a misallocation of undistributed earnings.
The company also said it identified a material weakness in technical accounting review controls tied to complex warrant instruments and financing transactions. Remediation is underway through enhanced accounting review procedures and tighter coordination with legal counsel and external advisers.
Audit committee says Q1 2026 statements should no longer be relied upon
HCW Biologics said its audit committee concluded that its Q1 2026 Form 10-Q financial statements should no longer be relied upon.
The company said it plans to file a Form 10-Q/A that will restate earnings per share after an error in applying the two-class EPS method.
