Company: BIAF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001840
Chunk: 969

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9A
Chunk 969
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2023. PPLS generates three sources of revenue: (1)
patient service fees, (2) histology service fees, and (3) medical director fees. The Company recognizes as revenue the amount that reflects
the consideration to which it expects to be entitled in exchange for goods sold or services rendered primarily upon completion of the
testing process (when results are reported) or when services have been rendered.

The
Company follows a standard process, which considers historical denial and collection experience and other factors (including the period
of time that the receivables have been outstanding), to estimate contractual allowances and implicit price concessions, recording adjustments
in the current period as changes in estimates. The process for estimating revenues and the ultimate collection of accounts receivable
involves significant judgment and estimation.

Pre-acquisition, bioAffinity’s revenue was generated in three ways: (1) royalties from
the Company’s diagnostic test, CyPath® Lung, (2) clinical flow cytometry services provided to Village Oaks related
to the Company’s CyPath® Lung test, and (3) CyPath® Lung tests purchased by the U.S. Department of
Defense (“DOD”) for an observational study, “Detection of Abnormal Respiratory Cell Populations in Lung Cancer Screening
Patients Using the CyPath® Lung Assay (NCT05870592),” and research and development on using bronchoalveolar lavage
fluid as a biological sample to assess cardiopulmonary function and exercise performance in military personnel post COVID-19 infection.
The royalty income from CyPath® Lung and clinical flow cytometry services income, beginning September 19, 2023, are related
party income and, therefore, eliminated from consolidated net revenues.

SCHEDULE
OF REVENUE RECOGNITION

    Year Ended
                                                                               December 31, 

    2024  
    2023 
  
    Patient service
    fees1 
    $8,175,670  
    $2,199,558 
  
    Histology service fees 
     1,103,751  
     272,660 
  
    Medical director fees 
     66,576  
     19,324 
  
    Department of Defense observational studies 
     8,654  
     19,442 
  
    Other revenues 
     7,371  
     21,515 
  
    Total
    net revenue 
    $9,362,022