Company: BIAF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024163
Chunk: 41

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 41
---
 operations through August 2025. We have incurred
significant losses and negative cash flows from operations since inception and expect to continue to incur losses and negative cash flows
for the foreseeable future. Based on the Company’s current expected level of operating expenditures and the cash and cash equivalents
on hand at June 30, 2025, management concludes that there is substantial doubt about the Company’s ability to continue as a going
concern for a period of at least twelve (12) months subsequent to the issuance of the accompanying condensed consolidated financial statements.

Prior
to acquisition of the clinical pathology laboratory by PPLS, Village Oaks, under the trade name Precision Pathology Services, had licensed
and developed CyPath® Lung as a laboratory developed test (“LDT”) for sale to physicians. The license agreement
provided that revenues from the sale would be split evenly between the Company and Village Oaks. In the second quarter of 2022, prior
to the acquisition, we started to recognize revenue as part of a limited beta market testing program of the CyPath® Lung
test. We have never been profitable, and as of June 30, 2025, we had a working capital deficit of approximately $0.9 million and an accumulated
deficit of approximately $60.4 million. We expect to continue to incur significant operating losses for the foreseeable future as we
continue the development of our diagnostic tests and advance our diagnostic tests through clinical trials.

We
anticipate raising additional cash needed through the private or public sales of equity or debt securities, collaborative arrangements,
or a combination thereof to continue to fund our operations and develop our products. There is no assurance that any such collaborative
arrangement will be entered into or that financing will be available to us when needed in order to allow us to continue our operations
or, if available, on terms acceptable to us. If we do not raise sufficient funds in a timely manner, we may be forced to curtail operations,
delay our clinical trials, cease operations altogether, or file for bankruptcy.

22

Results
of Operations

Three
Months Ended June 30, 2025, Compared to Three Months Ended June 30, 2024

Net
loss for the three months ended June 30, 2025, was approximately $4.1 million, compared to a net loss of approximately $2.1 million for
the three months ended June 30, 2024.

Revenue

Since
acquisition of the clinical pathology laboratory on September 19,