Company: BIAF
Filing Date: 2025-05-02
Form Type: S-1
Source: 0001641172-25-008170
Chunk: 210

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-05-02
Form: S-1
Chunk 210
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 7. UNEARNED REVENUE

The Company engaged in an observational study of CyPath ®Lung with the DOD. A total of 70 CyPath ®Lung units were ordered and shipped. However, in compliance with FASB ASC 606, the performance obligation was complete for only 40 units as of December 31, 2024. The performance obligation is deemed complete after samples have been collected and processed and results analyzed. The unearned revenue balance amounted to $ 24,404and $ 33,058as of December 31, 2024 and 2023, respectively.

| F-12 |

Note 8. FAIR VALUE MEASUREMENTS

The Company analyzes all financial instruments with features of both liabilities and equity under the FASB accounting standard for such instruments. Under this standard, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

The three levels of the hierarchy and the related inputs are as follows:

| Level |     | Inputs                                                                                                     |
| 1     |     | Unadjusted quoted prices in active markets for identical assets and liabilities.                           |
|       |     | Unadjusted                                                                                                 
 quoted prices in active markets for similar assets and liabilities;                                        |
| 2     |     | Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active; or |
|       |     | Inputs other than quoted prices that are observable for the asset or liability.                            |
| 3     |     | Unobservable inputs for the asset or liability.                                                            |

The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts and other receivables, prepaid and other current assets, accounts payable, accrued expenses, and loan payable, are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments.

Note 9. LEASES

The Company has one operating lease for its real estate and office space for the CAP/CLIA laboratory, as well as multiple finance leases for lab equipment in Texas that were acquired through the September 18, 2023 acquisition. Additionally, the Company entered into another operating lease on September 1, 2024 with regard to office space. The Company has operating leases consisting of office space with remaining lease terms ranging from 3.1to 5.9years as of December 31, 2024. The Company has finance leases consisting of