Company: BIAF
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001840
Chunk: 500

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 3
Chunk 500
---
 $7,809,740  
     74%

Operating
expenses totaled $18.3 million and $10.5 million for the years ended December 31, 2024 and 2023, respectively. The increase in operating expenses is the result
of the following factors.

Direct
Costs and Expenses

Our direct costs and expenses are primarily direct labor for pathology
services, laboratory supplies and reagents, laboratory equipment and allocated shared facilities. Direct costs and expenses totaled approximately
$6.0 million and $1.7 million during 2024 and 2023, respectively. The increase of approximately $4.3 million, or 244%,
was primarily attributable to the laboratory operations of PPLS being owned for the full fiscal year 2024, compared to approximately 3.5
months in fiscal year 2023.

Research
and Development

Our
research and development expenses consist primarily of expenditures for lab operations, preclinical studies, compensation, and
consulting costs. Research and development expenses remained consistent year-over-year, totaling $1.5 million for the years ended
December 31, 2024 and 2023.

Clinical
Development

Clinical
development expenses totaled $321,655 and $256,661 for the years ended
December 31, 2024 and 2023, respectively. The increase of $64,994, or 25% was primarily attributable to an increase in compensation costs
and benefits as we added clinic development personnel.

Selling,
General and Administrative

Our
selling, general and administrative expenses consist primarily of expenditures related to employee compensation, legal, accounting and
tax, other professional services, and general operating expenses.

Selling, general and administrative expenses totaled approximately $9.9 million
and $6.8 million for the years ended December 31, 2024 and 2023, respectively. The increase of approximately $3.1 million, or 46% was
primarily attributable to the laboratory operations of PPLS being owned for the full fiscal year 2024, compared to approximately 3.5 months
in fiscal year 2023. Additionally, the increase was due to the expansion of sales efforts for CyPath® Lung, partially offset
by a reduction in legal and professional fees.

Other
Income (Expense)

    Year Ended  
    Change in 2024 

    December 31,  
    Versus 2023 

    2024