Company: BIAF
Filing Date: 2025-05-23
Form Type: PRER14A
Source: 0001641172-25-012315
Chunk: 38

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-05-23
Form: PRER14A
Chunk 38
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 ● | a trust (i) the administration of which is subject to the primary supervision of a U.S. court and that                                
 has one or more United States persons that have the authority to control all substantial decisions of the trust or (ii) that has made 
 a valid election under applicable Treasury Regulations to be treated as a domestic trust.                                             |

A “non-U.S. holder” is, for U.S. federal
income tax purposes, a beneficial owner of shares of Common Stock that is not a U.S. holder or a partnership for U.S. federal income
tax purposes.

Tax Consequences of the Reverse Stock Split Generally

The Reverse Stock Split should constitute
a “recapitalization” for U.S. federal income tax purposes. As a result, a U.S. holder of Common Stock generally should not
recognize gain or loss upon the Reverse Stock Split, except with respect to cash received in lieu of a fractional share of Common Stock,
as discussed below. A U.S. holder’s aggregate tax basis in the shares of Common Stock received pursuant to the Reverse Stock Split
should equal the aggregate tax basis of the shares of Common Stock surrendered (excluding any portion of such basis that is allocated
to any fractional share of Common Stock), and such U.S. holder’s holding period in the shares of Common Stock received should include
the holding period in the shares of Common Stock surrendered. Treasury regulations provide detailed rules for allocating the tax
basis and holding period of the shares of Common Stock surrendered to the shares of Common Stock received in a recapitalization pursuant
to the Reverse Stock Split. U.S. holders of shares of Common Stock acquired on different dates and at different prices should consult
their tax advisors regarding the allocation of the tax basis and holding period of such shares.

Cash in Lieu of Fractional Shares

A U.S. holder of Common Stock that receives cash in
lieu of a fractional share of Common Stock pursuant to the Reverse Stock Split and whose proportionate interest in us is reduced (after
taking into account certain constructive ownership rules) should generally recognize capital gain or loss in an amount equal to the difference
between the amount of cash received and the U.S. holder’s tax basis in the shares of Common Stock surrendered that is allocated
to such fractional share of Common Stock. Such capital gain or loss should be long-term capital gain or loss if the U.S. holder’s
holding period for Common Stock surrendered exceeds one year at the effective time of the Reverse Stock Split. The deductibility of