Company: BIAF
Filing Date: 2025-06-27
Form Type: POS AM
Source: 0001641172-25-016927
Chunk: 179

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-06-27
Form: POS AM
Chunk 179
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 through
the sale of additional equity or debt securities or other debt instruments, strategic relationships or grants, or other arrangements
to support its future operations, if revenue from operations does not significantly increase. If such funding is not available or not
available on terms acceptable to the Company, the Company’s current development plan may be curtailed. Furthermore, an alternative
source of funding to the sale of additional equity or debt securities is the exercise of outstanding warrants for which there can be
no guarantee. No adjustments have been made to the presented condensed consolidated financial statements as a result of this uncertainty.

Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of financial statements
in conformity with GAAP in the U.S. requires management to make significant judgments and estimates that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Management bases these significant judgments and estimates on historical
experience and other assumptions it believes to be reasonable based upon information presently available. Actual results could differ
from those estimates under different assumptions, judgments, or conditions.

Principles of Consolidation

The Company’s consolidated financial
statements reflect its financial statements, those of its wholly owned subsidiaries, and certain variable interest entities where the
Company is the primary beneficiary. The accompanying consolidated financial statements include all the accounts of the Company, its wholly
owned subsidiaries, OncoSelect Therapeutics, LLC and PPLS, and the variable interest entity, Village Oaks. All significant
intercompany balances and transactions have been eliminated.

| F-6 |

In determining whether the Company
is the primary beneficiary of a variable interest entity, it applies a qualitative approach that determines whether it has both (1) the
power to direct the economically significant activities of the entity and (2) the obligation to absorb losses of, or the right to receive
benefits from, the entity that could potentially be significant to that entity. The Company continuously assesses whether it is the primary
beneficiary of a variable interest entity as changes to existing relationships or future transactions may result in the Company consolidating
or deconsolidating one or more of its collaborators or partners.

Cash and Cash Equivalents

For the purpose of the statement of
cash flows, the Company considers all highly liquid investments with original maturities of three months or less at the time of purchase
to be cash equivalents. Cash equivalents are stated