Company: BIAF
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023405
Chunk: 14

Company: bioAffinity Technologies, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 14
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     6,805  
     13,843 
  
    Anti-dilutive securities 
     1,465,600  
     308,661 

Revenue
Recognition

To
determine revenue recognition for the arrangements that the Company determines are within the scope of ASC 606, Revenue from Contracts
with Customers, the Company performs the following five steps: (1) identify the contract(s) with a customer, (2) identify the performance
obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in
the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation.

Post-acquisition
of PPLS, additional revenue streams have 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 

     Nine Months Ended 
September 30, 
     
    Three Months Ended 
September 30,

    2025  
    2024 
     
    2025

    2024

    Patient service fees1 
    $3,685,397  
    $6,259,806 
     
    $
    1,172,948

    $
    2,049,851

    Histology service fees 
     827,944  
     811,914 

    255,586

    281,861

    Medical director fees 
     51,171  
     50,136 

    17,274

    16,943

    Department of Defense observational studies