Company: BIAF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010787
Chunk: 65

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 65
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 is subject to stockholders approval.

On April 1, 2025, the Company increased the list price
of CyPath® Lung to $2,900 from $1,900 after evaluating reimbursement provisions in agreements executed with private insurance
carriers to take best advantage of payment terms.

On March 7, 2025, we announced
targeted strategic actions to improve financial performance and accelerate the commercial growth of CyPath® Lung,
taking steps to deliver up to $3 to $4 million in annual cost savings at its subsidiary Precision Pathology Laboratory Services
(PPLS), while increasing resources to expand CyPath® Lung sales in high-potential national markets. Specifically,
cost savings are a result of labor cost reductions, operational efficiency enhancements, and discontinuing certain unprofitable
pathology services to focus on high-margin services such as CyPath® Lung.

On February 26, 2025, we entered
into a warrant inducement agreement with certain holders of existing warrants, such holders exercised for cash a total of 2,438,473
warrants originally issued in August 2024 and October 2024, at the reduced exercise price of $0.58 per share, for aggregate
gross proceeds of approximately $1.4 million, before deducting advisory fees and other expenses payable by it. In consideration of
the immediate exercise of the October Warrants and August Warrants, the Company issued unregistered common warrants to purchase an
aggregate of up to 2,926,166 shares of Common Stock (120% of the number of shares of Common Stock issuable upon exercise of the
warrants) at an exercise price of $0.85 per share, which warrants are not exercisable until our stockholders approve such
exercise.

Financial

To date, we have devoted a substantial portion of
our efforts and financial resources to the development of our diagnostic test, CyPath® Lung. As a result, since our inception
in 2014, we have funded our operations principally through private and public sales of our equity (“IPO”). As of March 31,
2025, we had cash and cash equivalents of $0.4 million. As of May 13, 2025, after the 2025 equity financing, we had cash and cash equivalents
of $2.3 million, which we expect will not support our operations through August 2025. We have incurred significant losses and negative
cash flows from operations since inception and expect to continue to incur