Company: BIAF
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024163
Chunk: 84

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 7
Chunk 84
---
Our business plan includes expansion for our commercialization efforts which will require additional funding. If we are unable to improve
our liquidity position, we may not be able to continue as a going concern. Our ability to continue as a going concern is dependent upon
our ability to generate revenue and raise capital from financing transactions. Without funding from the proceeds of a capital raise or
strategic relationship or grant, management anticipates that our cash resources are sufficient to continue operations through September
2025. Based on our current expected level of operating expenditures, current expected levels of revenue, and the cash and cash equivalents
on hand at June 30, 2025, of $0.8 million, management concludes that there is substantial doubt about our ability to continue as a going
concern for a period of at least twelve (12) months subsequent to the issuance of the accompanying unaudited condensed consolidated financial
statements contained in this Quarterly Report. Our future is dependent upon our ability to obtain financing and upon future profitable
operations from the development of new business opportunities. There can be no assurance that we will be successful in accomplishing
these objectives. Without such additional capital, we may be required to curtail or cease operations and be required to realize our assets
and discharge our liabilities other than in the normal course of business which could cause investors to suffer the loss of all or a
substantial portion of their investment. WithumSmith+Brown, PC, our independent registered public accounting firm for the fiscal year
ended December 31, 2024, has included an explanatory paragraph in its opinion that accompanies our audited consolidated financial statements
as of and for the year ended December 31, 2024, indicating that our current liquidity position raises substantial doubt about our ability
to continue as a going concern.

We
are unable to precisely estimate when we will begin to generate significant profit from revenue, if ever, from PPLS’ services,
the amount of profit or revenue that will be generated, or the expenses that will be incurred.

Since
its acquisition in September 2023, we have generated $16.8 million in revenue from PPLS. Once we begin to generate such profit, there
is no guarantee that it will be sufficient to realize the expected financial benefits of the acquisition. In addition, since we have
limited experience operating a clinical laboratory, we may not accurately estimate the expenses we will incur.

30

Risks
Related to Ownership of Our Common Stock and Warrants

Our
failure to meet the