Company: BIAF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001840
Chunk: 381

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1C
Chunk 381
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 credit carryforwards.
Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those
temporary differences are expected to be recovered or settled. A valuation allowance is provided when it is more likely than not that
some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the
generation of future taxable income and the reversal of deferred tax liabilities during the period in which the related temporary difference
becomes deductible.

Assessment
of Goodwill and Intangible Assets

Our
indefinite-lived assets include Goodwill and Intangible Assets resulting from the acquisition of PPLS. Goodwill represents the purchase
price in excess of fair values assigned to the underlying identifiable net assets of the acquired business. Goodwill and Intangible Assets
are reviewed annually for impairment unless circumstances dictate the need for more frequent assessment.

In
performing impairment tests for our Goodwill in 2024, in accordance with ASC 350 - Intangibles – Goodwill and Other, we
opted to complete a quantitative assessment at the PPLS level as opposed to relying on a qualitative assessment as permitted in the
guidance. This quantitative assessment required that the estimated fair value of PPLS’ net assets, including Goodwill, be
calculated and compared to the carrying amount. If that estimated fair value is in excess of the carrying amount, no impairment is
recognized. We performed this assessment as of December 31, 2024. We estimated the fair value of the net assets tested using a
discounted cash flow model. The income-based approach required significant judgment to estimate future cash flows, including revenue
growth inclusive of long-term growth rate assumptions and the discount rate. Significant changes in our estimates and assumptions
could affect our fair value calculations. Our estimate of fair value exceeded the carrying amount and therefore resulted in no
impairment.

Going
Concern

Our
evaluation of our ability to continue as a going concern requires us to evaluate our future sources and uses of cash sufficient to fund
our currently expected operations in conducting research and development activities one year from the date our consolidated financial
statements are issued. We evaluate the probability associated with each source and use of cash resources in making our going concern
determination. The research and development of our diagnostic tests and therapeutic products are inherently subject to uncertainty.

Off-Balance
Sheet Arrangements

We
do not engage in transactions that generate relationships with unconsolidated entities