Company: BIAF
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010787
Chunk: 47

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 47
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 been consolidated starting September 19, 2023. PPLS generates three sources of revenue: (1) patient service fees, (2) histology service
fees, and (3) medical director fees. The Company recognizes as revenue the amount that reflects the consideration to which it expects
to be entitled in exchange for goods sold or services rendered primarily upon completion of the testing process (when results are reported)
or when services have been rendered.

The Company follows a standard process, which considers
historical denial and collection experience and other factors (including the period of time that the receivables have been outstanding),
to estimate contractual allowances and implicit price concessions, recording adjustments in the current period as changes in estimates.
The process for estimating revenues and the ultimate collection of accounts receivable involves significant judgment and estimation.

SCHEDULE OF REVENUE RECOGNITION 

    2025  
    2024 

    For the Three Months Ended  March 31, 

    2025  
    2024 
  
    Patient service fees1 
    $1,570,382  
    $2,149,049 
  
    Histology service fees 
     263,754  
     237,972 
  
    Medical director fees 
     16,588  
     16,058 
  
    Department of Defense observational studies 
     —  
     2,885 
  
    Other revenues 
     2,873  
     427 
  
    Total net revenue 
    $1,853,597  
    $2,406,391 

    1
    Patient services fees include direct billing for CyPath® Lung diagnostic test of approximately $169,000 and $45,000 for the three months ended March 31, 2025 and 2024, respectively.

Property and Equipment

In accordance with ASC 360-10, Accounting
for the Impairment of Long-Lived Assets, the Company periodically reviews the carrying value of its long-lived assets, such as
property, equipment, and definite-lived intangible assets, to test whether current events or circumstances indicate that such
carrying value may not be recoverable. When evaluating assets for potential impairment, the Company compares the carrying value of
the asset to its estimated undiscounted future cash flows. If an asset’s carrying value exceeds such estimated cash flows
(undiscounted and with interest charges), the Company records an impairment charge for